TIDMPDZ
RNS Number : 3501N
Prairie Mining Limited
29 September 2021
PRAIRIE MINING LIMITED
2021 ANNUAL REPORT
ABN 23 008 677 852
CORPORATE DIRECTORY
DIRECTORS: SHARE REGISTRIES:
Mr Ian Middlemas Chairman Australia:
Mr Benjamin Stoikovich Director Computershare Investor Services
and CEO Pty Ltd
Ms Carmel Daniele Non-Executive Level 11, 172 St Georges Terrace
Director Perth WA 6000
Mr Mark Pearce Non-Executive Director Tel: +61 8 9323 2000
Mr Dylan Browne Company Secretary United Kingdom:
Computershare Investor Services
PRINCIPAL OFFICES: PLC
London: The Pavilions, Bridgewater Road
Unit 3C, 38 Jermyn Street Bristol BS99 6ZZ
London SW1Y 6DN Tel: +44 370 702 0000
United Kingdom
Poland:
Australia (Registered Office): Komisja Nadzoru Finansowego (KNF)
Level 9, Plac Powstańców Warszawy
28 The Esplanade 1, skr. poczt. 419
Perth WA 6000 00-950 Warszawa
Tel: +61 8 9322 6322 Tel: Tel: +48 22 262 50 00
Fax: +61 8 9322 6558
STOCK EXCHANGE LISTINGS:
Warsaw: Australia:
Wiejska 17/11 Australian Securities Exchange
00-480 Warsaw - ASX Code: PDZ
SOLICITORS: United Kingdom:
Thomson Geer London Stock Exchange (Main Board)
- LSE Code: PDZ
AUDITOR:
Ernst & Young - Perth Poland:
Warsaw Stock Exchange - GPW Code:
BANKERS: PDZ
National Australia Bank Ltd
Australia and New Zealand Banking
Group Ltd
CONTENTS
Message from the CEO
Directors' Report
Consolidated Statement of Profit or Loss and other Comprehensive
Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
The following sections (as well as all illustrations and figures)
are available in the full version of the 2021 Annual Report on the
Company's website at http://www.pdz.com.au/company-reports
Auditor's Independence Declaration
Notes to and Forming Part of the Financial Statements
Directors' Declaration
Independent Auditor's Report
Corporate Governance
Additional Information
Prairie Mining Limited (Prairie or Company) also advises that an
Appendix 4G (Key to Disclosures: Corporate Governance Council
Principles and Recommendations) and 2021 Corporate Governance
Statement have been released today and are also available on the
Company's website.
The Company further advises, in accordance with ASX Listing Rule
3.13.1, that the Company's Annual General Meeting (AGM) will be
held on Wednesday, 24 November 2021 .
An item of business at the AGM will be the re-election of
Directors. In accordance with clause 6.2(f) of the Company's
Constitution, the closing date for receipt of nominations from
persons wishing to be considered for election as a Director is
Wednesday, 6 October 2021.
Any nominations must be received at the Company's registered
office in Perth no later than 5.00 pm (Perth time) on Wednesday, 6
October 2021.
MESSAGE FROM THE CEO
Dear shareholders,
Key events during, and since the end of the financial year for
the Company included the following:
-- International arbitration claims (Claim) against the Republic
of Poland under both the Energy Charter Treaty (ECT) and the
Australia-Poland Bilateral Investment Treaty (BIT) (together the
Treaties) continue.
-- During the year, Prairie filed its Statement of Claim,
claiming compensation in the amount of GBP806 million (equivalent
to A$1.5 billion or PLN 4.2 billion).
The Claim for compensation against the Republic of Poland
includes an assessment of the value of Prairie's lost profits and
damages related to both the Jan Karski (JKM) and Debiensko mines,
and accrued interest related to any damages.
The Claim for damages has been assessed by external quantum
experts appointed by Prairie specifically for the purposes of the
Claim.
-- The Company's Claim against the Republic of Poland is being
prosecuted through an established and enforceable legal framework
with both parties agreeing to apply the United Nations Commission
on International Trade Law Rules (UNCITRAL) to the proceedings.
-- The Company is well funded to pursue the Claim with the
US$12.3 million Litigation Funding Agreement (LFA) in place which
is currently being drawn down to cover legal, tribunal and external
expert costs and defined operating expenses associated with the
Claim.
-- Completed a Share Purchase Plan (SPP) to raise A$4 million
(before costs) for working capital requirements and business
development opportunities.
-- Prairie continues its efforts to identify and assess other
suitable new business opportunities, focused on the resources
sector. The Company will make announcements to the market as
appropriate.
Yours sincerely,
Benjamin Stoikovich
DIRECTORS' REPORT
The Directors of Prairie Mining Limited present their report on
the Consolidated Entity consisting of Prairie Mining Limited
(Company or Prairie) and the entities it controlled at the end of,
or during, the year ended 30 June 2021 (Consolidated Entity or
Group).
OPERATING AND FINANCIAL REVIEW
Selected Financial Data (Converted into PLN and EUR)
Year Ended Year Ended Year Ended Year Ended
30 June 30 June 30 June 30 June
2021 2020 2021 2020
PLN PLN EUR EUR
------------------------------- ------------- ------------- ------------ ------------
Arbitration finance
facility income 11,535,313 2,402,278 2,548,049 548,670
Sale of land rights
at Debiensko 1,814,741 - 400,860 -
Gas and property lease
revenue 778,346 1,050,764 171,930 239,990
Exploration and evaluation
expenses (2,335,689) (4,917,917) (515,933) (1,123,231)
Arbitration related
expenses (11,741,851) (2,402,278) (2,534,030) (548,670)
Net loss for the period (2,491,961) (8,769,809) (550,452) (2,002,986)
Net cash flows from
operating activities (6,360,038) (10,002,808) (1,404,876) (2,284,598)
Net cash flows from
investing activities (956,770) - (211,342) -
Net cash flows from
financial activities 13,371,742 (766,856) 2,970,834 (175,147)
Net increase/(decrease)
in cash and cash equivalents 6,054,934 (10,769,664) 1,354,616 (2,459,745)
Basic and diluted loss
per share (Grosz/EUR
cents per share) (1.08) (4.02) (0.24) (0.92)
------------------------------- ------------- ------------- ------------ ------------
30 June 30 June 30 June 30 June
2021 2020 2021 EUR 2020
PLN PLN EUR
--------------------------- ------------ ------------ ----------- -----------
Cash and cash equivalents 13,619,641 6,996,842 3,012,662 1,566,691
Total Assets 23,143,811 18,091,804 5,119,406 4,051,008
Total Liabilities 6,931,015 7,190,951 1,533,139 1,610,154
Net Assets 16,212,797 10,900,853 3,586,267 2,440,854
Contributed equity 216,970,230 206,248,000 51,912,177 49,526,596
--------------------------- ------------ ------------ ----------- -----------
In compliance with Polish reporting requirements, figures of the
consolidated statement of profit or loss and other comprehensive
income and consolidated statement of cash flows have been converted
into PLN and EUR (from the Group's presentation currency) by
applying the arithmetic average for the final day of each month for
the reporting period, as published by the National Bank of Poland
("NBP"). These exchange rates were 2.8337 AUD:PLN and 4.5271
PLN:EUR for the twelve months ended 30 June 2021, and 2.6514
AUD:PLN and 4.3784 PLN:EUR for the twelve months ended 30 June
2020.
Assets and liabilities in the consolidated statement of
financial position have been converted into PLN and EUR by applying
the exchange rate on the final day of each respective reporting
period as published by the NBP. These exchange rates were: 2.8523
AUD:PLN and 4.5208 PLN:EUR on 30 June 2021, and 2.7262 AUD:PLN and
4.4660 PLN:EUR on 30 June 2020.
Operations
Significant Litigation Proceedings - Dispute with Polish
Government
The Company's Claim against the Republic of Poland is being
prosecuted through an established and enforceable legal framework,
with Prairie and Poland agreeing to apply the UNCITRAL rules to the
proceedings.
Both the BIT and ECT claim Tribunals have been constituted, with
both Claim's being registered with the Permanent Court of
Arbitration in the Hague. The BIT and ECT claim proceedings proceed
at pace, with the Company now having filed a Claim for compensation
against Poland with the Tribunal in the amount of GBP806 million
(A$1.5 billion / PLN 4.2 billion), which includes an assessment of
the value of Prairie's lost profits and damages related to both the
JKM and Debiensko mines, and accrued interest related to any
damages. The Claim for damages has been assessed by external
quantum experts appointed by Prairie specifically for the purposes
of the Claim.
In July 2020, the Company announced it had executed a LFA for
US$12.3 million with Litigation Capital Management ( LCM ). The
facility is currently being drawn down to cover legal, tribunal and
external expert costs and defined operating expenses associated
with the Claim.
In September 2020, Prairie announced that it had formally
commenced with the Claim by serving the Notices of Arbitration
against the Republic of Poland.
Prairie's dispute alleges that the Republic of Poland has
breached its obligations under the applicable Treaties through its
actions to block the development of the Company's Jan Karski and
Debiensko mines in Poland which effectively deprives Prairie of the
entire value of its investments in Poland.
In February 2019, Prairie formally notified the Polish
Government that there exists an investment dispute between Prairie
and the Polish Government. Prairie's notification called for prompt
negotiations with the Government to amicably resolve the dispute
and indicated Prairie's right to submit the dispute to
international arbitration in the event of the dispute not being
resolved amicably. The Company remains open to resolving the
dispute with the Polish Government amicably. However, as of the
date of this report, no amicable resolution of the dispute has
occurred, since the Polish Government has declined to participate
in discussions related to the dispute and accordingly the Company
has formerly submitted its Claim as discussed above.
Prairie's investment dispute with the Republic of Poland is not
unique, with international media widely reporting that the
political environment and investment climate in Poland has
deteriorated since the change in Government in 2015. As a result,
there have been a significant number of International Arbitration
claims being brought against Poland in the natural resources and
energy sectors with damages claims ranging from US$120 million to
over US$1.3 billion and includes Bluegas NRG Holding (Gas), Lumina
Copper (Copper) and InvEnergy (wind farms).
Corporate
Business Development
A number of opportunities have been reviewed during the year,
and the Company will continue in its efforts to identify and
acquire suitable new business opportunities. The Company is
currently focusing on new opportunities in the resources
sector.
However, no agreements have been reached or licences granted,
and the Company is not able to assess the likelihood or timing of a
successful acquisition or grant of any opportunities .
Share Purchase Plan
During the year, the Company completed a SPP to raise A$4
million before costs for working capital requirements and business
development opportunities.
Results of Operations
The net loss of the Consolidated Entity for the year ended 30
June 2021 was $879,388 (2020: $3,307,600). Significant items
contributing to the current year loss and the substantial
differences from the previous financial year include:
(i) Arbitration related costs of $4,048,329 (2020: $906,036)
relating to the Claim against Republic of Poland. This has been
offset by the arbitration funding income of $4,070,724 (2020:
$906,036);
(ii) Sale of land rights at Debiensko of $640,409 (2020: nil);
(iii) Exploration and Evaluation expenses of $824,247 (2020:
$1,854,827), which is attributable to the Group's accounting policy
of expensing exploration and evaluation expenditure incurred by the
Group subsequent to the acquisition of rights to explore and up to
the commencement of a bankable feasibility study for each separate
area of interest, which relates to legal and permitting expenditure
and payments to consultants in Poland;
(iv) Business development expenses of $256,380 (2020: $299,241)
which includes expenses relating to the Group's review of new
business and project opportunities plus also investor relations
activities during the year including digital marketing and business
development consultant costs ;
(v) Non-cash share-based payment reversal of $548,745 (2020:
expense of $163,613) due to incentive securities issued to key
management personnel and other key employees and consultants of the
Group as part of the long-term incentive plan to reward key
management personnel and other key employees and consultants for
the long-term performance of the Group. The expense results from
the Group's accounting policy of expensing the fair value
(determined using an appropriate pricing model) of incentive
securities granted on a straight-line basis over the vesting period
of the options and rights. During the year, 6.23 million
performance rights did not vest and lapsed with $661,876 being
reversed from the reserve to profit and loss; and
(vi) Revenue of $297,875 (2020: $456,726) consisting of interest
income of $23,203 (2020: $60,423) and the receipt of $274,672
(2020: $396,303) of gas and property lease income derived at
Debiensko.
Financial Position
At 30 June 2021, the Company had cash reserves of $4,774,968
(2020: $2,566,518). With the US$12.3 million LFA arbitration
facility (US$8.9 million available for drawdown at 30 June 2021),
the Company is in a strong financial position to continue with the
Claim and business development activities.
At 30 June 2021, the Company had net assets of $5,684,113 (2020:
$3,998,552), an increase of 42% compared with the previous year.
This is largely attributable to the increase in cash reserves,
following the completion of the SPP, and small decrease in trade
and other payables.
Business Strategies and Prospects for Future Financial Years
Prairie's strategy is to create long-term shareholder value.
This now includes pursuing the Claim against the Republic of Poland
through international arbitration.
As discussed throughout this report, various measures directed
against Prairie by the Polish government in breach of Polish and
international law with respect to the Company's permitting process
and licenses, have blocked Prairie's pathway to any future
production from its Polish projects.
To achieve its objective, the Group currently has the following
business strategies and prospects:
-- Continue to enforce its rights through an established and
enforceable legal framework in relation to international
arbitration for the investment dispute between Prairie and the
Polish Government that has arisen out of certain measures taken by
Poland in breach of the Treaties;
-- Continue to assess corporate options for Prairie's investments in Poland; and
-- Identify and assess other suitable business opportunities in the resources sector.
All of these activities are inherently risky and the Board is
unable to provide certainty of the expected results of these
activities, or that any or all of these likely activities will be
achieved. Furthermore, Prairie will continue to take all necessary
actions to pursue the Company's legal rights regarding its
investments in Poland, if and as required. The material business
risks faced by the Group that could have an effect on the Group's
future prospects, and how the Group manages these risks, include
the following:
-- Litigation risk - All industries, including the mining
industry, are subject to legal and arbitration claims.
Specifically, and as noted above, the Company formally commenced
its Claim following lodgement of its notices of arbitration with
against the Republic of Poland. Prairie will strongly defend its
position and continue to take all relevant actions to pursue its
legal rights regarding both the Debiensko and JKM projects. There
is however no certainty that the Claim will be successful. If the
Claim is unsuccessful, then this may have a material impact on the
value of the Company's securities.
-- The Company may be adversely affected by fluctuations in
foreign exchange - Current and planned activities are predominantly
denominated in Stirling and/or Euros and the Company's ability to
fund these activates may be adversely affected if the Australian
dollar continues to fall against these currencies. The Company
currently does not engage in any hedging or derivative transactions
to manage foreign exchange risk. As the Company's operations
change, this policy will be reviewed periodically going
forward.
-- The Company may not successfully acquire new projects - the
Company may pursue and assess other new business opportunities in
the resources sector. These new business opportunities may take the
form of direct project acquisitions, joint ventures, farm-ins,
acquisition of tenements/permits, or direct equity participation.
The Company's success in its acquisition activities depends on its
ability to identify suitable projects, acquire them on acceptable
terms, and integrate the projects successfully, which the Company's
Board is experienced in doing. However, there can be no guarantee
that any proposed acquisition will be completed or be successful.
If a proposed acquisition is completed the usual risks associated
with a new project and/or business activities will remain.
DIRECTORS
The names and details of the Group's Directors in office at any
time during the financial year or since the end of the financial
year are:
Current Directors:
Mr Ian Middlemas Chairman
Mr Benjamin Stoikovich Director and CEO
Ms Carmel Daniele Non-Executive Director
Mr Mark Pearce Non-Executive Director
Former Directors
Mr Thomas Todd Non-Executive Director (resigned 30 July 2021)
Mr Todd Hannigan Alternate Director (resigned 5 February 2021)
Unless otherwise stated, Directors held their office from 1 July
2020 until the date of this report.
CURRENT DIRECTORS AND OFFICERS
Mr Ian Middlemas B.Com, CA
Chairman
Mr Middlemas is a Chartered Accountant, a member of the member
of the Australian Institute of Company Directors and holds a
Bachelor of Commerce degree. He worked for a large international
Chartered Accounting firm before joining the Normandy Mining Group
where he was a senior group executive for approximately 10 years.
He has had extensive corporate and management experience, and is
currently a Director with a number of publicly listed companies in
the resources sector.
Mr Middlemas was appointed a Director of the Company on 25
August 2011. During the three year period to the end of the
financial year, Mr Middlemas has held directorships in Peregrine
Gold Limited (September 2020 - present), Constellation Resources
Limited (November 2017 - present), Apollo Minerals Limited (July
2016 - present), Paringa Resources Limited (October 2013 -
present), Berkeley Energia Limited (April 2012 - present), Salt
Lake Potash Limited (January 2010 - present), Equatorial Resources
Limited (November 2009 - present), , Sovereign Metals Limited (July
2006 - present), Odyssey Gold Limited (September 2005 - present),
Piedmont Lithium Limited (September 2009 - December 2020) and
Cradle Resources Limited (May 2016 - July 2019).
Mr Benjamin Stoikovich B.Eng, M.Eng, M.Sc, CEng, CEnv
Director and CEO
Mr Stoikovich is a mining engineer and professional corporate
finance executive. He has extensive experience in the resources
sector gained initially as an underground Longwall Coal Mining
Engineer with BHP Billiton where he was responsible for underground
longwall mine operations and permitting, and more recently as a
senior executive within the investment banking sector in London
where he gained experience in mergers and acquisitions, debt and
off take financing.
He has a Bachelor of Mining Engineering degree from the
University of NSW; a Master of Environmental Engineering from the
University of Wollongong; and a M.Sc in Mineral Economics from
Curtin University. Mr Stoikovich also holds a 1st Class Coal Mine
Managers Ticket from the Coal Mine Qualifications Board (NSW,
Australia) and is a registered Chartered Engineer (CEng) and
Chartered Environmentalist (CEnv) in the United Kingdom. Mr
Stoikovich was appointed a Director of the Company on 17 June 2013.
During the three year period to the end of the financial year, Mr
Stoikovich has not held any other directorships in listed
companies.
Ms Carmel Daniele B.Ec, CA
Non-Executive Director
Ms Carmel Daniele is the founder and Chief Investment Officer of
CD Capital in London. Ms Daniele has over 20 years of global
natural resources investment experience, ten of which was spent
with Newmont Mining/Normandy Mining and acquired companies. As a
Senior Executive (Corporate Advisory) at Newmont she structured
cross-border M&As including the three-way merger between
Franco-Nevada, Newmont and Normandy. Post-merger Ms Daniele
structured the divestment of various non-core mining assets around
the world for the merchant banking arm, Newmont Capital. Ms Daniele
started off her career at Deloitte Touche Tohmatsu. Prior to
setting up CD Capital in London in 2006, Ms Daniele was an
investment advisor to RAB Capital's Special Situations Fund on
sourcing and negotiating natural resource private equity
investments. Ms Daniele holds a Master of Laws (Corporate &
Commercial) and Bachelor of Economics from the University of
Adelaide and is a Fellow of the Institute of Chartered
Accountants.
Ms Daniele was appointed a Director on 21 September 2015. During
the three year period to the end of the financial year, Ms Daniele
has not held any other directorships in listed companies.
Mr Mark Pearce B.Bus, CA, FCIS, FFin
Non-Executive Director
Mr Pearce is a Chartered Accountant and is currently a Director
of several listed companies that operate in the resources sector.
He has had considerable experience in the formation and development
of listed resource companies. Mr Pearce is also a Fellow of the
Institute of Chartered Secretaries and Administrators and a Fellow
of the Financial Services Institute of Australasia.
Mr Pearce was appointed a Director of the Company on 25 August
2011. During the three year period to the end of the financial
year, Mr Pearce has held directorships in Peregrine Gold Limited
(September 2020 - present), Constellation Resources Limited (July
2016 - present), Equatorial Resources Limited (November 2009 -
present), Apollo Minerals Limited (July 2016 - February 2021)
Sovereign Metals Limited (July 2006 - present), Odyssey Gold
Limited (September 2005 - August 2020), Salt Lake Potash Limited
(August 2014 - October 2020) and Piedmont Lithium Limited
(September 2009 - August 2018).
Mr Dylan Browne B.Com, CA, AGIA
Company Secretary
Mr Browne is a Chartered Accountant and Associate Member of the
Governance Institute of Australia (Chartered Secretary) who is
currently Company Secretary for a number of ASX and European listed
companies that operate in the resources sector. He commenced his
career at a large international accounting firm and has since been
involved with a number of exploration and development companies
operating in the resources sector, based in London and Perth,
including Sovereign Metals Limited, Apollo Minerals Limited,
Berkeley Energia Limited and Papillon Resources Limited. Mr Browne
successfully listed Prairie on the Main Board of the London Stock
Exchange and the Warsaw Stock Exchange in 2015 and also oversaw
Berkeley's listings on the Main Board LSE and the Spanish Stock
Exchanges. Mr Browne was appointed Company Secretary of the Company
on 25 October 2012.
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year
consisted of the exploration and development of Debiensko and Jan
Karski. No significant change in nature of these activities
occurred during the year.
EARNINGS PER SHARE
2021 2020
Cents Cents
---------------------------------- ------- -------
Basic and diluted loss per share (0.38) (1.52)
---------------------------------- ------- -------
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group's operations are subject to various environmental laws
and regulations under the relevant government's legislation. Full
compliance with these laws and regulations is regarded as a minimum
standard for all operations to achieve.
Instances of environmental non-compliance by an operation are
identified either by external compliance audits or inspections by
relevant government authorities.
There have been no significant known breaches by the Group
during the financial year.
DIVIDS
No dividends were paid or declared since the start of the
financial year. No recommendation for payment of dividends has been
made (2020: nil).
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the
Group during the year other than the following:
(i) Commenced with the drawdown of the LCM finance facility
prior to the submission of the Claim as noted in point (ii)
below;
(ii) On 9 September 2020, the Company announced that it had
formally commenced with its international arbitration Claim
following serving of its notices of arbitration under the Treaties
against the Republic of Poland;
(iii) On 17 September 2020, the Company completed a SPP to raise
A$4 million (before costs) for working capital requirements and
business development opportunities; and
(iv) On 9 June 2021, Prairie announced that as part of the
ongoing Claim against Poland under the Treaties, the Company had
filed its Statement of Claim, claiming compensation in the amount
of GBP806 million (A$1.5 billion or PLN 4.2 billion).
SIGNIFICANT EVENTS AFTER BALANCE DATE
On 30 July 2021, Mr Thomas Todd resigned as a Director of the
Company.
Other than as outlined above, at the date of this report, there
are no matters or circumstances, which have arisen since 30 June
2021 that have significantly affected or may significantly
affect:
-- the operations, in financial years subsequent to 30 June
2021, of the Consolidated Entity;
-- the results of those operations, in financial years
subsequent to 30 June 2021, of the Consolidated Entity; or
-- the state of affairs, in financial years subsequent to 30
June 2021, of the Consolidated Entity.
DIRECTORS' INTERESTS
As at the date of this report, the Directors' interests in the
securities of the Company are as follows:
Interest in securities at the date of this report
Ordinary Shares(1)
----------------------------- ----------------------
Mr Ian Middlemas 10,600,000
Mr Benjamin Stoikovich 1,492,262
Ms Carmel Daniele(2) 44,776,120
Mr Mark Pearce 3,000,000
Notes:
(1) "Ordinary Shares" means fully paid Ordinary Shares in the capital of the Company.
(2) As founder and controller of CD Capital, Ms Daniele has an
indirect interest in the Ordinary shares and Options. CD Capital
also hold the right to acquire 5,711,804 Ordinary shares through
the issue of a $0.46 convertible note (Loan Note 2).
SHARE OPTIONS AND PERFORMANCE RIGHTS
At the date of this report the following unlisted securities
have been issued over unissued Ordinary Shares of the Company:
-- Convertible loan note with a principal amount of $2,627,430,
convertible into 5,711,805 ordinary shares at a conversion price of
$0.46 per share with no expiry date ("Loan Note 2").
During the year ended 30 June 2021, no Ordinary Shares have been
issued as a result of the exercise/conversion of Incentive Options,
Performance Rights or Loan Note 2. Subsequent to year end and up
until the date of this report, no Ordinary Shares have been issued
as a result of the conversion Loan Note 2.
INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
The Constitution of the Company requires the Company, to the
extent permitted by law, to indemnify any person who is or has been
a Director or officer of the Company or Group for any liability
caused as such a Director or officer and any legal costs incurred
by a Director or officer in defending an action for any liability
caused as such a Director or officer.
During or since the end of the financial year, no amounts have
been paid by the Company or Group in relation to the above
indemnities.
During the financial year, an annualised insurance premium of
$17,312 (2020: $14,308) was paid to provide adequate insurance
cover for directors and officers against any potential liability
and the associated legal costs of a proceeding.
To the extent permitted by law, the Company has agreed to
indemnify its auditors, Ernst & Young, as part of the terms of
its audit engagement agreement against claims by third parties
arising from the audit (for an unspecified amount). No payment has
been made to indemnify Ernst & Young during or since the
financial year.
REMUNERATION REPORT (AUDITED)
This Remuneration Report, which forms part of the Directors'
Report, sets out information about the remuneration of Key
Management Personnel ("KMP") of the Group.
Details of KMP
Details of the KMP of the Group during or since the end of the
financial year are set out below:
Current Directors
Mr Ian Middlemas Chairman
Mr Benjamin Stoikovich Director and CEO
Ms Carmel Daniele Non-Executive Director
Mr Mark Pearce Non-Executive Director
Former Directors
Mr Thomas Todd Non-Executive Director (resigned 30 July 2021)
Mr Todd Hannigan Alternate Director (resigned 5 February 2021)
Other KMP
Mr Simon Kersey Chief Financial Officer
Mr Dylan Browne Company Secretary
Unless otherwise disclosed, the KMP held their position from 1
July 2020 until the date of this report.
Remuneration Policy
The Group's remuneration policy for its KMP has been developed
by the Board taking into account the size of the Group, the size of
the management team for the Group, the nature and stage of
development of the Group's current operations, and market
conditions and comparable salary levels for companies of a similar
size and operating in similar sectors. In addition to considering
the above general factors, the Board has also placed emphasis on
the following specific issues in determining the remuneration
policy for KMP:
(a) the Group is currently focused on undertaking exploration,
appraisal and development activities;
(b) risks associated with small cap resource companies whilst
exploring and developing projects; and
(c) other than profit which may be generated from asset sales,
the Company does not expect to be undertaking profitable operations
until sometime after the commencement of commercial production on
any of its projects.
Executive Remuneration
The Group's remuneration policy is to provide a fixed
remuneration component and a performance-based component (short
term incentive and long term incentive). The Board believes that
this remuneration policy is appropriate given the considerations
discussed in the section above and is appropriate in aligning
executives' objectives with shareholder and business
objectives.
Fixed Remuneration
Fixed remuneration consists of base salaries, as well as
employer contributions to superannuation funds and other non-cash
benefits. Non-cash benefits may include provision of car parking
and health care benefits.
Fixed remuneration is reviewed annually by the Board. The
process consists of a review of company and individual performance,
relevant comparative remuneration externally and internally and,
where appropriate, external advice on policies and practices.
Performance Based Remuneration - Short Term Incentive
("STI")
Some executives are entitled to an annual cash incentive payment
upon achieving various key performance indicators ("KPI's"), as set
by the Board. Having regard to the current size, nature and
opportunities of the Company, the Board has determined that these
KPI's will include measures such as successful commencement and/or
completion of exploration activities (e.g. commencement/completion
of exploration programs within budgeted timeframes and costs),
establishment of government relationship (e.g. establish and
maintain sound working relationships with government and
officialdom), development activities (e.g. completion of
infrastructure studies and commercial agreements), corporate
activities (e.g. recruitment of key personnel and representation of
the company at international conferences) and business development
activities (e.g. corporate transactions and capital raisings).
Performance Based Remuneration - Short Term Incentive ("STI")
(Continued)
These measures were chosen as the Board believes they represent
the key drivers in the short and medium-term success of the
Company's development. On an annual basis, and subsequent to year
end, the Board assesses performance against each individual
executive's KPI criteria. During the 2021 financial year, no cash
incentive (2020: nil) was paid, or is payable, to KMP.
Performance Based Remuneration - Long Term Incentive
The Group has adopted a long-term incentive plan ("LTIP")
comprising the grant of Performance Rights and/or Incentive Options
to reward KMP and key employees and contractors for long-term
performance of the Company. Shareholders approved the renewal of a
Performance Rights Plan" (the "Plan") on 17 August 2017.
To achieve its corporate objectives, the Group needs to attract,
incentivise, and retain its key employees and contractors. The
Board believes that grants of Performance Rights and/or Incentive
Options to KMP will provide a useful tool to underpin the Group's
employment and engagement strategy.
(i) Performance Rights
The Group has a Plan that provides for the issuance of unlisted
Performance Rights which, upon satisfaction of the relevant
performance conditions attached to the Performance Rights, will
result in the issue of an Ordinary Share for each Performance
Right. Performance Rights are issued for no consideration and no
amount is payable upon conversion thereof.
The Plan enables the Group to: (a) recruit, incentivise and
retain KMP and other key employees and contractors needed to
achieve the Group's business objectives; (b) link the reward of key
staff with the achievement of strategic goals and the long-term
performance of the Group; (c) align the financial interests of
participants of the Plan with those of Shareholders; and (d)
provide incentives to participants of the Plan to focus on superior
performance that creates Shareholder value.
Performance Rights granted under the Plan to eligible
participants will be linked to the achievement by the Company of
certain performance conditions as determined by the Board from time
to time. These performance conditions must be satisfied in order
for the Performance Rights to vest. The Performance Rights also
vest where there is a change of control of the Company. Upon
Performance Rights vesting, Ordinary Shares are automatically
issued for no consideration. If a performance condition of a
Performance Right is not achieved by the expiry date then the
Performance Right will lapse.
During the financial year, nil Performance Rights were granted
to certain KMP. 6,225,000 Performance Rights previously granted to
KMP and key employees were forfeited during the financial year.
(ii) Incentive Options
The Group has in the past also chosen to issue Incentive Options
to some KMP and key employees and contractors as part of their
remuneration and incentive arrangements in order to attract and
retain them and to provide an incentive linked to the performance
of the Company.
The Board's policy is to grant Incentive Options to KMP with
exercise prices at or above market share price (at the time of
agreement). As such, any Incentive Options granted to KMP are
generally only of benefit if the KMP performed to the level whereby
the value of the Group increased sufficiently to warrant exercising
the Incentive Options granted.
Other than service-based vesting conditions (if any), there are
generally no additional performance criteria attached to any
Incentive Options granted to KMP, as given the speculative nature
of the Group's activities and the small management team responsible
for its running, it is considered that the performance of the KMP
and the performance and value of the Group are closely related.
The Company prohibits executives entering into arrangements to
limit their exposure to Incentive Options and Performance Rights
granted as part of their remuneration package.
During the financial year, no Incentive Options were granted to
KMP and key employees. No Incentive Options were exercised by KMP
during the financial year. No Incentive Options previously granted
to KMP lapsed during the financial year.
During the year and following the LFA with LCM being signed, the
Company established a Management Incentive Program ("MIP") which is
a LTIP to retain key company personnel who have important
historical information and knowledge to contribute towards the
Claim. The MIP provides that if the Claim is successful and the
Company receives damages proceeds, 6% of these proceeds will be
directed to the MIP for distribution to its participants. The MIP
requires that each participant must satisfy specific Claim related
duties and if they do so, each participant may be entitled to a
pre-defined percentage of the proceeds received by the MIP. In this
regard, of the 6% of any future Claim proceeds, Mr Stoikovich (or
his nominee personal services entity) will be entitled to 30% of
the MIP distribution (i.e. 30% of the 6% Claim proceeds), Mr Kersey
(or his nominee personal services entity) will be entitled to 20%
of the MIP distribution (i.e. 20% of the 6% Claim proceeds), Mr
Pearce and Mr Browne will each be entitled to 7.5% of the MIP
distribution (i.e. 7.5% of the 6% Claim proceeds). The remaining
35% of the MIP distribution has been allocated to other key staff
who will contribute to the Claim.
Non-Executive Director Remuneration
The Board's policy is for fees to Non-Executive Directors to be
no greater than market rates for comparable companies for time,
commitment and responsibilities. Given the current size, nature and
risks of the Company, Incentive Options may also be used to attract
and retain Non-Executive Directors. The Board determines payments
to the Non-Executive Directors and reviews their remuneration
annually, based on market practice, duties and accountability.
Independent external advice is sought when required.
The maximum aggregate amount of fees that can be paid to
Non-Executive Directors is subject to approval by shareholders at a
General Meeting. Director's fees paid to Non-Executive Directors
accrue on a daily basis. Fees for Non-Executive Directors are not
linked to the performance of the economic entity. However, to align
Directors' interests with shareholder interests, the Directors are
encouraged to hold shares in the Company and given the current
size, nature and opportunities of the Company, Non-Executive
Directors may receive Incentive Options in order to secure and
retain their services.
Fees for the Chairman were set at $36,000 per annum (2020:
$36,000) (excluding post-employment benefits).
Fees for Non-Executive Directors' were set at $20,000 per annum
(2020: $20,000) (excluding post-employment benefits). These fees
cover main board activities only. Non-Executive Directors may
receive additional remuneration for other services provided to the
Company, including but not limited to, membership of
committees.
During the 2021 financial year, no Incentive Options or
Performance Rights were granted to Non-Executive Directors.
The Company prohibits Non-Executive Directors entering into
arrangements to limit their exposure to Incentive Options granted
as part of their remuneration package.
Relationship between Remuneration of KMP and Shareholder
Wealth
During the Company's exploration and development phases of its
business, the Board anticipates that the Company will retain
earnings (if any) and other cash resources for the exploration and
development of its resource projects. Accordingly, the Company does
not currently have a policy with respect to the payment of
dividends and returns of capital. Therefore, there was no
relationship between the Board's policy for determining, or in
relation to, the nature and amount of remuneration of KMP and
dividends paid and returns of capital by the Company during the
current and previous four financial years.
The Board did not determine, and in relation to, the nature and
amount of remuneration of the KMP by reference to changes in the
price at which shares in the Company traded between the beginning
and end of the current and the previous four financial years.
Discretionary annual cash incentive payments are based upon
achieving various non-financial key performance indicators as
detailed under "Performance Based Remuneration - Short Term
Incentive" and are not based on share price or earnings. However,
as noted above, certain KMP may receive Incentive Options in the
future which generally will be of greater value to KMP if the value
of the Company's shares increases sufficiently to warrant
exercising the Incentive Options.
Relationship between Remuneration of KMP and Earnings
As discussed above, the Company is currently undertaking
exploration and development activities, and does not expect to be
undertaking profitable operations (other than by way of material
asset sales, none of which is currently planned) until sometime
after the successful commercialisation, production and sales of
commodities from one or more of its projects. Accordingly, the
Board does not consider earnings during the current and previous
four financial years when determining, and in relation to, the
nature and amount of remuneration of KMP.
Remuneration of Directors and other KMP
Details of the nature and amount of each element of the
remuneration of each Director and other KMP of Prairie Mining
Limited are as follows:
Short-term benefits Non-Cash
Share-based
payments
$
--------------------- ---------------- ------------- ---------- -------------
Cash
Salary Incentive Post-employment Perfor-mance
& fees Payments benefits Total related
$ $ $ $ %
--------------------- ------ --------- ----------- ---------------- ------------- ---------- -------------
Directors
Ian Middlemas 2021 36,000 - - - 36,000 -
2020 36,000 - - - 36,000 -
---------------------------- --------- ----------- ---------------- ------------- ---------- -------------
Benjamin Stoikovich 2021 406,934 - - (136,837) 270,097 -
2020 470,991 - - 112,041 583,032 19.2
---------------------------- --------- ----------- ---------------- ------------- ---------- -------------
Carmel Daniele(1) 2021 - - - - - -
2020 - - - - - -
--------------------- ------ --------- ----------- ---------------- ------------- ---------- -------------
Thomas Todd(2) 2021 20,000 - - - 20,000 -
2020 20,000 - - - 20,000 -
Mark Pearce 2021 20,000 - 1,900 - 21,900 -
2020 20,000 - 1,900 - 21,900
---------------------------- --------- ----------- ---------------- ------------- ---------- -------------
Todd Hannigan 2021 - - - - - -
2020 - - - - - -
--------------------- ------ --------- ----------- ---------------- ------------- ---------- -------------
Other KMP
Simon Kersey 2021 289,133 - - - 289,133 -
2020 301,465 - - - 301,465 -
---------------------------- --------- ----------- ---------------- ------------- ---------- -------------
Dylan Browne(3) 2021 - - - (46,631) (46,631) -
2020 - - - 38,267 38,267 100.0
---------------------------- --------- ----------- ---------------- ------------- ---------- -------------
Total 2021 772,067 - 1,900 (183,468) 590,499
2020 848,456 - 1,900 150,308 1,000,664
============================ ========= =========== ================ ============= ========== =============
Notes:
(1) During the year Ms Daniele waived her Non-Executive Director remuneration.
(2) Resigned subsequent to the end of the year, on 30 July 2021.
(3) Company Secretary services are provided through a services
agreement with Apollo Group Pty Ltd ("Apollo Group") a company of
which Mr Mark Pearce is a Director and beneficial shareholder of.
During the year, Apollo Group was paid or is payable A$225,000
(2020: A$232,000) for the provision of serviced office facilities
and administrative, accounting, company secretarial and transaction
services to the Group.
Options and Performance Rights Granted to KMP
Details of the value of Performance Rights lapsed for KMP of the
Group during the year ended 30 June 2021 are as follows:
Value of
Value of rights included
No. of rights No. of rights No. of rights rights lapsed in remuneration
2021 granted vested lapsed $ $
--------------------- --------------- --------------- -------------- --------------- -----------------
Other KMP
Benjamin Stoikovich - - (500,000) (165,000) (136,837)
Simon Kersey - - (396,000) (201,960) -
Dylan Browne - - (150,000) (56,250) (46,631)
--------------------- --------------- --------------- -------------- --------------- -----------------
No Incentive Options or Performance Rights were granted as part
of remuneration by the Company to KMP of the Group during the
financial year.
There were no Incentive Options or Performance Rights exercised
or converted by any KMP of the Group during the financial year.
Employment Contracts with Directors and KMP
Mr Stoikovich has an appointment letter dated 21 June 2018,
under the terms of which he agrees to serve as a Director of the
Company. Mr Stoikovich's appointment letter is terminable, pursuant
to the Company's Constitution, by giving the Company notice in
writing. Under the updated appointment letter, Mr Stoikovich
receives a fixed fee of GBP25,000 per annum.
During the financial year, Selwyn Capital Limited ( Selwyn ), a
company of which Mr Stoikovich is a director and shareholder, had a
consulting agreement with the Company to provide project management
and capital raising services (CEO services). Under this agreement,
Selwyn is paid a fixed annual consultancy fee of GBP112,500 per
annum and an annual incentive payment of up to GBP100,000 payable
upon the successful completion of key milestones as determined by
the Board. In addition, Selwyn, is entitled to receive a payment
incentive worth the aggregate fixed yearly directors fees and
consultancy fee in the event of a change of control clause being
triggered with the Company. The consulting contract can be
terminated by either Selwyn or the Company by giving twelve months'
notice. No amount is payable to Selwyn in the event of termination
of the contract arising from negligence or incompetence in regard
to the performance of services specified in the contract. Further,
Arbitration Advisory Ltd (A-Advisory), a company of which Mr
Stoikovich is a director and shareholder, had a consulting
agreement with the Company's wholly owned subsidiary, PDZ Holdings
Pty Ltd ( PDZ-H ), to provide services in relation to the Claim
against the Republic of Poland. Under this agreement, A-Advisory is
paid a fixed annual consultancy fee of GBP112,500 per annum. The
term of the consulting agreement is two and half years from 1 July
2020. The consulting contract can be terminated by either
A-Advisory or PDZ-H by giving six months' notice. No amount is
payable to A-Advisory in the event of termination of the contract
arising from negligence or incompetence in regard to the
performance of services specified in the contract.
Mr Simon Kersey, Chief Financial Officer, is engaged under a
consultancy deed with Cheyney Resources Limited (Cheyney). The
agreement specifies the duties and obligations to be fulfilled by
Mr Kersey as the Chief Financial Officer. The Company may terminate
the agreement with six months written notice. No amount is payable
in the event of termination for material breach of contract, gross
misconduct or neglect. Cheyney receives an annual consultancy fee
of GBP55,000 and will be eligible for a cash incentive of up to
GBP50,000 per annum to be paid upon successful completion of KPIs.
In addition, Cheyney, will be entitled to receive a payment
incentive worth six months of the annual consultancy fee in the
event of a change of control clause being triggered with the
Company. Further, Cheyney Arbitration Ltd (Cheyney Advisory), a
company of which Mr Kersey is a director and shareholder, had a
consulting agreement with the Company's wholly owned subsidiary,
PDZ Holdings Pty Ltd ( PDZ-H ), to provide services in relation to
the Claim against the Republic of Poland. Under this agreement,
A-Advisory is paid a fixed annual consultancy fee of GBP105,000 per
annum. The term of the consulting agreement is two and half years
from 1 July 2020. The consulting contract can be terminated by
either Cheyney Advisory or PDZ-H by giving six months' notice. No
amount is payable to Cheyney Advisory in the event of termination
of the contract arising from negligence or incompetence in regard
to the performance of services specified in the contract.
Mr Browne, Company Secretary, has a services agreement with the
Company to provide corporate and financial services with the
Company. Either party may terminate the agreement by giving one
month written notice. Under the services agreement, Mr Browne
receive cash and/or incentive securities in the Company. Mr Browne
is also entitled to receive a fee worth $100,000 in the event of a
change of control clause being triggered with the Company.
Loans from KMP
No loans were provided to or received from KMP during the year
ended 30 June 2021 (2020: Nil).
Other Transactions
Apollo Group Pty Ltd, a company of which Mr Mark Pearce is a
Director and beneficial shareholder, was paid or is payable
$225,000 (2020: $232,000) for the provision of serviced office
facilities and administration services. The amount is based on a
current monthly retainer of $20,000 (2020: $20,000) due and payable
in advance, with no fixed term, and is able to be terminated by
either party with one month's notice. This item has been recognised
as an expense in the Statement of Profit or Loss and other
Comprehensive Income. At 30 June 2021, $20,000 (2020: $20,000) was
included as a current liability in the Statement of Financial
Position.
As founder and controller of CD Capital, Ms Daniele has an
interest in in CD Capital to convert Loan Note 2 into 5,711,804
Ordinary shares through the issue of the $0.46 convertible
note.
Equity instruments held by KMP
Incentive Option and Performance Right holdings of KMP
Vested
Vested and exercise-
Held at Securities Held at able at
1 July Granted Exercised/ Expired/ 30 June 30 June
2021 2020 as Remuner-ation Converted Lapsed 2021 2021
--------------------- ----------- ------------------ ------------ --------------- --------- ---------------
Directors
Ian Middlemas - - - - - -
Benjamin Stoikovich 1,460,000 - - (1,460,000)(1) - -
Carmel Daniele(2) 22,388,060 (22,388,060) - -
Thomas Todd - - - - - -
Mark Pearce - - - - - -
Todd Hannigan - - - - -
Other KMP
Simon Kersey 396,000 - - (396,000)(1) - -
Dylan Browne 345,000 - - (345,000)(1) - -
--------------------- ----------- ------------------ ------------ --------------- --------- ---------------
Notes:
(1) Forfeiture of Performance Rights following the performance
condition not being achieved prior to the expiry date.
(2) As founder and controller of CD Capital, Ms Daniele was
deemed to have an interest in the CD Options.
Shareholdings of KMP
Held at Granted as Options Exercised/ Held at
2021 1 July 2020 Remuneration Rights Converted Participation in SPP 30 June 2021
--------------------- ------------- -------------------- ------------------- --------------------- --------------
Directors
Ian Middlemas 10,600,000 - - - 10,600,000
Benjamin Stoikovich 1,492,262 - - - 1,492,262
Carmel Daniele(1) 44,776,120 - - - 44,776,120
Thomas Todd(2) 2,800,000 - - - 2,800,000
Mark Pearce 3,000,000 - - - 3,000,000
Todd Hannigan 3,504,223 - - 120,000 3,624,223(3)
Other KMP
Simon Kersey - - - - -
Dylan Browne - - - - -
--------------------- ------------- -------------------- ------------------- --------------------- --------------
Notes:
(1) As founder and controller of CD Capital, Ms Daniele is
deemed to have an interest in the 44,776,120 Ordinary Shares issued
to CD Capital on conversion of Loan Note 1 in 2018.
(2) Resigned subsequent to the end of the year, on 30 July 2021.
(3) As at resignation date being 5 February 2021.
End of Remuneration Report
DIRECTORS' MEETINGS
The number of meetings of Directors held during the year and the
number of meetings attended by each Director was as follows:
Board Meetings
Number eligible to attend Number attended
------------------------------------------------------------------------- ------------------------- ---------------
Ian Middlemas 2 2
Benjamin Stoikovich 2 2
Carmel Daniele 2 2
Thomas Todd (resigned 30 July 2021) 2 2
Mark Pearce 2 2
Todd Hannigan (Alternate director to Mr Todd - resigned 5 February 2021) - -
------------------------------------------------------------------------- ------------------------- ---------------
There were no Board committees during the financial year. The
Board as a whole currently performs the functions of an Audit
Committee, Risk Committee, Nomination Committee, and Remuneration
Committee, however this will be reviewed should the size and nature
of the Company's activities change.
NON-AUDIT SERVICES
Non-audit services provided by our auditors, Ernst & Young
and related entities, are set out below. The Directors are
satisfied that the provision of non-audit services is compatible
with the general standard of independence for auditors imposed by
the Corporations Act. The nature and scope of each type of
non-audit service provided means that auditor independence was not
compromised.
2021 2020
$ $
-------------------------------------------------------------- ----- ------
Preparation of income tax return and other tax related advice 9,000 25,875
-------------------------------------------------------------- ----- ------
DIVIDS
No dividends have been declared, provided for or paid in respect
of the financial year ended 30 June 2021 (2020: nil).
AUDITOR'S INDEPENCE DECLARATION
The lead auditor's independence declaration for the year ended
30 June 2021 has been received and can be found on page 16 of the
Annual Report published on the Company's website.
Signed in accordance with a resolution of the Directors.
Benjamin Stoikovich
Director
24 September 2021
Forward Looking Statements
This release may include forward-looking statements. These
forward-looking statements are based on Prairie's expectations and
beliefs concerning future events. Forward looking statements are
necessarily subject to risks, uncertainties and other factors, many
of which are outside the control of Prairie, which could cause
actual results to differ materially from such statements. Prairie
makes no undertaking to subsequently update or revise the
forward-looking statements made in this release, to reflect the
circumstances or events after the date of that release.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE YEARED 30 JUNE 2021
2021 2020
$ $
--------------------------------------------- ------------ ------------
Revenue 297,875 456,726
Other income 4,711,133 906,036
Exploration and evaluation expenses (824,247) (1,854,827)
Employment expenses (326,174) (453,025)
Administration and corporate expenses (371,366) (245,773)
Occupancy expenses (580,024) (526,231)
Business development expenses (256,380) (299,241)
Share-based payment reversal/(expenses) 548,745 (163,613)
Arbitration related expenses (4,048,329) (906,036)
Impairment expenses - (154,850)
Other expenses (30,621) (66,766)
Loss before income tax (879,388) (3,307,600)
Income tax expense - -
---------------------------------------------- ------------ ------------
Net loss for the year (879,388) (3,307,600)
============================================== ============ ============
Net loss attributable to members of
Prairie Mining Limited (879,388) (3,307,600)
============================================== ============ ============
Other comprehensive income
Items that may be reclassified subsequently
to profit or loss:
Exchange differences on translation
of foreign operations (741,871) (56,043)
Total other comprehensive income/(loss)
for the year, net of tax (741,871) (56,043)
---------------------------------------------- ------------ ------------
Total comprehensive loss for the year,
net of tax (1,621,259) (3,363,643)
============================================== ============ ============
Total comprehensive loss attributable
to members of Prairie Mining Limited (1,621,259) (3,363,643)
============================================== ============ ============
Basic and diluted loss per share from
(cents per share) (0.38) (1.52)
The above Consolidated Statement of Profit or Loss and other
Comprehensive Income should be read in conjunction with the
accompanying notes.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
2021 2020
$ $
------------------------------- ------------- -------------
ASSETS
Current Assets
Cash and cash equivalents 4,774,968 2,566,518
Trade and other receivables 1,329,336 1,631,500
Total Current Assets 6,104,304 4,198,018
-------------------------------- ------------- -------------
Non-current Assets
Property, plant and equipment 2,009,783 2,438,254
Total Non-current Assets 2,009,783 2,438,254
-------------------------------- ------------- -------------
TOTAL ASSETS 8,114,087 6,636,272
-------------------------------- ------------- -------------
LIABILITIES
Current Liabilities
Trade and other payables 1,136,567 1,601,109
Other financial liabilities 808,601 271,195
Provisions 100,838 257,562
Total Current Liabilities 2,046,006 2,129,866
-------------------------------- ------------- -------------
Non-Current Liabilities
Other financial liabilities - 166,981
Provisions 383,968 340,873
Total Non-Current Liabilities 383,968 507,854
-------------------------------- ------------- -------------
TOTAL LIABILITIES 2,429,974 2,637,720
-------------------------------- ------------- -------------
NET ASSETS 5,684,113 3,998,552
================================ ============= =============
EQUITY
Contributed equity 79,332,108 75,476,543
Reserves 345,909 1,636,525
Accumulated losses (73,993,904) (73,114,516)
-------------------------------- ------------- -------------
TOTAL EQUITY 5,684,113 3,998,552
================================ ============= =============
The above Consolidated Statement of Financial Position should be
read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 30 JUNE 2021
Share- Foreign
Based Currency
Contributed Payments Translation Accumulated Total
Equity Reserve Reserve Losses Equity
$ $ $ $ $
------------------------------- ------------ ---------- ------------- ------------- ------------
Balance at 1 July 2020 75,476,543 548,745 1,087,780 (73,114,516) 3,998,552
Net loss for the year - - - (879,388) (879,388)
Other comprehensive income:
Exchange differences on
translation of foreign
operations - - (741,871) - (741,871)
Total comprehensive loss
for the year - - (741,871) (879,388) (1,621,259)
Issue of shares 4,020,000 - - - 4,020,000
Share issue costs (164,435) - - - (164,435)
Lapse of unvested Performance
Rights - (661,876) - - (661,876)
Recognition of share-based
payments - 113,131 - - 113,131
------------------------------- ------------ ---------- ------------- ------------- ------------
Balance at 30 June 2021 79,332,108 - 345,909 (73,993,904) 5,684,113
=============================== ============ ========== ============= ============= ============
Balance at 1 July 2019 75,491,413 887,600 1,143,823 (70,214,248) 7,308,588
Effect of adoption of AASB
16 - - - (95,137) (95,137)
Balance at 1 July 2019
- restated 75,491,413 887,600 1,143,823 (70,309,385) 7,213,451
------------------------------- ------------ ---------- ------------- ------------- ------------
Net loss for the year - - - (3,307,600) (3,307,600)
Other comprehensive income:
Exchange differences on
translation of foreign
operations - - (56,043) - (56,043)
------------------------------- ------------ ---------- ------------- ------------- ------------
Total comprehensive loss
for the year - - (56,043) (3,307,600) (3,363,643)
Prepaid SPP share issue
costs (14,870) - (14,870)
Expiry of Incentive Options - (502,469) - 502,469 -
Lapse of unvested Performance
Rights - (286,450) - - (286,450)
Recognition of share-based
payments - 450,064 - - 450,064
------------------------------- ------------ ---------- ------------- ------------- ------------
Balance at 30 June 2020 75,476,543 548,745 1,087,780 (73,114,516) 3,998,552
=============================== ============ ========== ============= ============= ============
The above Consolidated Statement of Changes in Equity should be
read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
2021 2020
$ $
-------------------------------------------- ----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees (2,542,673) (4,249,738)
Proceeds from property and gas sales 274,672 396,303
Interest received from third parties 23,592 80,807
NET CASH FLOWS USED IN OPERATING ACTIVITIES (2,244,409) (3,772,628)
--------------------------------------------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for plant and equipment (2,310) -
Payments for arbitration related expenses (1,640,646) -
Proceeds from advanced deposits and
sale of land rights 1,288,105 -
Proceeds from sale of subsidiary 17,215 -
NET CASH FLOWS USED IN INVESTING ACTIVITIES (337,636) -
--------------------------------------------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of ordinary shares 4,020,000 -
Payments for share issue costs (164,435) -
Receipts from arbitration funding 1,102,962 (14,870)
Payments for lease liability (168,032) (274,355)
NET CASH FLOWS FROM/(USED) IN FINANCING
ACTIVITIES 4,790,495 (289,225)
--------------------------------------------- ----------- -----------
Net increase/(decrease) in cash and
cash equivalents 2,208,450 (4,061,853)
Cash and cash equivalents at beginning
of year 2,566,518 6,628,371
--------------------------------------------- ----------- -----------
CASH AND CASH EQUIVALENTS AT THE END
OF THE YEAR 4,774,968 2,566,518
============================================= =========== ===========
The above Consolidated Statement of Cash Flows should be read in
conjunction with the accompanying notes.
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