TIDMEMH
RNS Number : 5300N
European Metals Holdings Limited
30 September 2021
For immediate release
30 September 2021
EUROPEAN METALS HOLDINGS LIMITED
ANNUAL RESULTS
European Metals Holdings Limited (EMH, Company) (ASX & AIM:
EMH, OTC - Nasdaq Intl ADS: EMHXY) are pleased to announce the
Company's annual results for the year ended 30 June 2021.
The annual report has been released on the Australian Stock
Exchange ("ASX") as required under the listing rules of the
ASX.
Whilst the financial information included in this announcement
has been prepared in accordance with the accounting policies and
basis of preparation set out below, this announcement does not
constitute the Company's statutory financial statements.
A copy of the annual report will be posted to shareholders and
is also available on the Company's website www.europeanmet.com.
CONTACT
For further information on this update or the Company generally,
please visit our website at www.europeanmet.com or see full contact
details at the end of this release.
WEBSITE
A copy of this announcement is available from the Company's
website at www.europeanmet.com.
ENQUIRIES:
European Metals Holdings Limited
Keith Coughlan, Executive Chairman Tel: +61 (0) 419 996 333
Email: keith@europeanmet.com
Kiran Morzaria, Non-Executive Director Tel: +44 (0) 20 7440 0647
Dennis Wilkins, Company Secretary Tel: +61 (0) 417 945 049
Email: dennis@europeanmet.com
WH Ireland Ltd (Nomad & Joint Broker)
James Joyce//Darshan Patel Tel: +44 (0) 20 7220 1666
(Corporate Finance)
Harry Ansell/Jasper Berry (Broking)
Shard Capital (Joint Broker) Tel: +44 (0) 20 7186 9950
Damon Heath
Erik Woolgar
Blytheweigh (Financial PR) Tel: +44 (0) 20 7138 3222
Tim Blythe
Megan Ray
Chapter 1 Advisors (Financial PR
- Aus) Tel: +61 (0) 433 112 936
David Tasker
The information contained within this announcement is considered
to be inside information, for the purposes of Article 7 of EU
Regulation 596/2014, prior to its release. The person who
authorised for the release of this announcement on behalf of the
Company was Keith Coughlan, Executive Chairman.
CORPORATE DIRECTORY
Directors
Mr Keith Coughlan Executive Chairman
Mr Richard Pavlik Executive Director
Mr Kiran Morzaria Non-Executive Director
Ambassador Lincoln Palmer Bloomfield, Non-Executive Director
Jr
Company Secretary
Mr Dennis Wilkins
Registered Office in Australia Geomet s.r.o.
Level 3 Ruská 287, Bystřice
35 Outram Street 417 01 Dubí
West Perth WA 6005 Czech Republic
Telephone 08 6245 2050
Facsimile 08 6245 2055
Email www.europeanmet.com
Registered Address and Place Nominated Nomad & Joint Broker
of Incorporation - BVI WH Ireland Ltd
Woodbourne Hall 24 Martin Lane
PO Box 3162 London EC4R 0DR
Road Town United Kingdom
Tortola VG1 110
British Virgin Islands Joint Broker
Shard Capital Partners LLP
Share Register - Australia 23(rd) Floor, 20 Fenchurch Street
Computershare Investor Services London EC3M 3BY
Limited United Kingdom
Level 11
172 St Georges Terrace UK Depository
Perth WA 6000 Computershare Investor Services
Telephone 1300 850 505 (within plc
Australia) The Pavilions
Telephone +61 3 9415 4000 (outside Bridgewater Road
Australia) Bristol BS99 6ZZ
Facsimile 1800 783 447 (within United Kingdom
Australia)
Facsimile +61 3 9473 2555 (outside
Australia)
Auditor Reporting Accountants (UK)
Stantons International Audit Chapman Davis LLP
and Consulting Pty Ltd 2 Chapel Court
Level 2, 1 Walker Avenue London SE1 1HH
West Perth WA 6005 United Kingdom
Telephone +61 8 9481 3188
Facsimile +61 8 9321 1204
Securities Exchange Listing - Securities Exchange Listing
Australia - United Kingdom
ASX Limited London Stock Exchange plc
Level 40, Central Park 10 Paternoster Square
152-158 St Georges Terrace London EC4M 7LS
Perth WA 6000 United Kingdom
ASX Code: EMH AIM Code: EMH
Securities Exchange Listing - NASDAQ
Nasdaq Inc
151 W. 42(nd) Street
New York City
NY 10036 United States
NASDAQ Code: ERPNF
Chairman's Letter Report 3
Review of Operations 5
Directors' Report 9
Remuneration Report 15
2
Auditor's Independence Declaration 2
Consolidated Statement of Profit or Loss and Other
Comprehensive Income 23
Consolidated Statement of Financial Position 24
Consolidated Statement of Changes in Equity 25
Consolidated Statement of Cash Flows 26
Notes to the Consolidated Financial Statements 27
Directors' Declaration 61
Independent Audit Report to the members of European
Metals Holdings Limited 62
6
Additional Information 7
Tenement Schedule 68
CHAIRMAN'S LETTER
Dear Shareholders
Welcome to the 2021 Annual Report for European Metals Holdings
Limited ("European Metals" or "the Company").
On behalf of the Board of Directors, I am pleased to report to
you on what has been another busy and productive year for your
Company, set against a backdrop of significantly higher prices for
both of our key products, lithium and tin. Our strategy is to
become a Czech based lithium and tin producer. The progress we have
made in the past year, along with the greatly improved macro
conditions, bring us significantly closer towards making that aim a
reality.
This has been partially reflected in the price of the Company's
securities with the CDI's listed on ASX increasing from AUD 0.29 on
30 June 2020 to AUD 1.535 on 30 June 2021. The price of lithium
performed well for the year also and has made very significant
gains since year end.
As the lithium market moves into deficit, we anticipate the
continuation of strong prices in the foreseeable future.
The Definitive Feasibility Study continues, albeit with some
minor delays related primarily to Covid-19 and the effect that has
had on logistics globally. Whilst we have had no direct Covid-19
related issues at site, moving samples and our people has been
problematic at times. We don't anticipate any escalation in
this.
Apart from these delays, we have made steady progress of the
Cinovec Project with positive developments in the areas of our
locked cycle testwork, permitting advancement and Measured Resource
drilling programme. We have also advanced the Project's ESG
credentials significantly and Cinovec is emerging as a project with
not only very robust economic parameters, but one with a strong ESG
profile relative to its peers. We will continue developing this
aspect of the project over the coming year and expect to be able to
present a positive Life Cycle Assessment (LCA) to the market
shortly. The LCA will demonstrate the Project's anticipated
life-time carbon emissions, which we expect to be comparatively
very attractive.
The Project has been significantly de-risked and at the time of
this report is moving rapidly towards a final investment
decision.
In the previous year, we reported on the completion of an
agreement with CEZ a.s., the Czech national power utility, by which
CEZ became a 51% shareholder of the Project Company, Geomet and
injected approximately EUR 29 million into the Project.
Early in the 2021 Financial Year the Company entered into a
partnership agreement with EIT InnoEnergy, a European Union body
that is the principal facilitator and organiser of the European
Battery Alliance (EBA). The EBA was initiated by the European
Commission to create a competitive and sustainable battery cell
manufacturing value chain in Europe.
The purpose of the partnership agreement with EIT InnoEnergy is
to facilitate the accelerated construction financing and ultimate
commercialisation of Cinovec. This will be achieved through
assistance in the sourcing of construction finance, grant funding
and offtake introductions and negotiations.
Following this, the Company reported on the appointment of SMS
group as the lead engineer for the minerals processing and lithium
battery-grade chemicals production at the Project.
From a corporate perspective, we welcomed Ambassador Lincoln
Bloomfield to the board in early January. Lincoln brings a wealth
of experience to the Company in the fields of governance,
international diplomacy, sustainability, resilience and renewable
energy. Lincoln is based in the United States, home to the largest
capital markets in the world and markets that are becoming
increasingly invested in green energy companies. This, coupled with
our recent US market listing via a NASDAQ ADS programme, provides
the Company with another potential funding option as we head
towards final investment decision next year.
On funding, the Company raised AUD 7.1 million in January and
remains in a very sound financial position relative to the project
timeline. The cornerstone investor for this raising was
Luxembourg-based Thematica Future Mobility.
The very strong commitment within the European Union to build a
sustainable European battery industry and electric vehicle industry
that we reported on last year has gathered greater momentum.
Consequently, the demand for lithium in the region has grown
dramatically and this is likely to continue. This, coupled with a
growing global desire to develop local supply chains, has focused
attention on European based projects involved in the battery metals
supply chain. Cinovec is set to benefit significantly from these
developments.
All things considered, I am very optimistic on the outlook for
the Cinovec Project and for the future of your Company.
Finally, I would like to take this opportunity to thank all
staff, advisors, contractors and our shareholders who have
supported us over the past year. I look forward to updating you
throughout the new financial year as we continue to advance the
Cinovec Project.
Keith Coughlan
EXECUTIVE CHAIRMAN
REVIEW OF OPERATIONS
PROJECT REVIEW
Geomet s.r.o. controls the mineral exploration licenses awarded
by the Czech State over the Cinovec Lithium/Tin Project.
Geomet s.r.o. is owned 49% by European Metals and 51% by CEZ
a.s. through its wholly owned subsidiary, SDAS. CEZ is a
significant energy group listed on various European Exchanges with
the ticker CEZ.
Cinovec hosts a globally significant hard-rock lithium deposit
with a total Indicated Mineral Resource of 372.4Mt at 0.45% Li2O
and 0.04% Sn and an Inferred Mineral Resource of 323.5Mt at 0.39%
Li2O and 0.04% Sn containing a combined 7.22 million tonnes Lithium
Carbonate Equivalent and 263kt of tin, as reported to ASX on 28
November 2017 (Further Increase in Indicated Resource at Cinovec
South). An initial Probable Ore Reserve of 34.5Mt at 0.65% Li2O and
0.09% Sn reported on 4 July 2017 (Cinovec Maiden Ore Reserve -
Further Information) has been declared to cover the first 20 years'
mining at an output of 22,500tpa of battery-grade lithium carbonate
reported on 11 July 2018 (Cinovec Production Modelled to Increase
to 22,500tpa of Lithium Carbonate).
This makes Cinovec the largest hard-rock lithium deposit in
Europe, the fourth largest non-brine deposit in the world and a
globally significant tin resource. The deposit has previously had
over 400,000 tonnes of ore mined as a trial sub-level open-stope
underground mining operation focussed on the recovery of tin only.
In June 2019 EMH completed an updated Preliminary Feasibility
Study, conducted by specialist independent consultants, which
indicated a return post tax NPV of USD1.108B and a post-tax IRR of
28.8%. The study confirmed that the Cinovec Project is a potential
low operating cost producer of battery grade lithium hydroxide or
battery grade lithium carbonate as markets demand. It confirmed the
deposit is amenable to bulk underground mining. Metallurgical
test-work has produced both battery grade lithium hydroxide and
battery grade lithium carbonate in addition to high-grade tin
concentrate.
Cinovec is centrally located for European end-users and is well
serviced by infrastructure, with a sealed road adjacent to the
deposit, rail lines located 5 km north and 8 km south of the
deposit and an active 22 kV transmission line running to the
historic mine. As the deposit lies in an active mining region, it
has strong community support. The economic viability of Cinovec has
been enhanced by the recent strong increase in demand for lithium
globally, and within Europe specifically.
PARTNERSHIP AGREEMENT WITH EUROPEAN UNION BODY
On 28 July 2020, the Company announced that a "Value Added
Services Agreement" with KIC InnoEnergy SE ("EIT InnoEnergy", part
of the European Institute of Innovation and Technology), the
principal facilitator and organiser of the European Battery
Alliance, had been entered into by Geomet in respect of the Cinovec
Lithium Project. The purpose of the financing agreement with EIT
InnoEnergy is to support the construction financing and ultimate
commercialisation of Cinovec by EIT InnoEnergy providing assistance
to support the:
-- Sourcing of construction finance;
-- Securing of grant funding; and
-- Assisting in offtake introductions and negotiations.
APPOINTMENT OF LEADING GLOBAL ENGINEER
SMS group Process Technologies GmbH was appointed as the lead
engineer for the minerals processing and lithium battery-grade
chemicals production at the Cinovec Project in September 2020. SMS
group will provide a complete Front-End Engineering Design ("FEED")
study as the major component of the ongoing Definitive Feasibility
Study ("DFS") work at Cinovec.
APPOINTMENT OF LEADING GLOBAL ENGINEER (CONTINUED)
Headquartered in Dusseldorf, the German family-owned SMS group
is one of the world's leading companies in plant construction and
mechanical engineering for the technology metals and materials
sector. SMS group is also a world leader in electrical and
automation systems including digital solutions for self-learning
processing plants to continuously optimise plant performance,
product quality and energy consumption. Under the Agreement, SMS
will provide the following to the Cinovec Project:
-- Full process integration from the point of delivery of ore to
the underground crusher through to the delivery of finished
battery-grade lithium chemicals for battery and cathode
manufacturers.
-- The FEED will include all of the process steps - comminution,
beneficiation, roasting, leaching and purification.
-- The FEED will encompass both the lithium process flowsheet
and the tin/tungsten recovery circuit delivering metal concentrates
to refineries.
-- The FEED is intended to deliver a binding fixed price lump
sum turnkey EPC contract with associated process guarantee and
product specification guarantees for battery-grade lithium
chemicals. The combination of these will greatly assist to
underwrite project financing from leading European and global
financial institutions lending into this new energy EV-led
industrial revolution.
ESG - ENVIRONMENTAL, SOCIAL AND GOVERNANCE
ESG and impact investing have become key criteria for both
investors and fund managers, leading a new path to how companies
are being assessed. The acceleration has been driven by heightened
social, governmental and consumer attention on the broader impact
of corporations, as well as by the investors and executives who
acknowledge that a strong ESG proposition is a key indicator of a
company's long-term success. ESG reporting offers a tool and
roadmap for investors and society to hold companies to account, to
make sure that the issues such as climate change, social justice,
equality, diversity and environmental protection are reflected and
appropriately addressed by the company in focus.
European Metals has focused very strongly on the Project's ESG
criteria and during the year adopted a set of ESG metrics and
disclosures following the recommendations released by the World
Economic Forum ("WEF") in Geneva, Switzerland which are
acknowledged as the gold standard for ESG reporting. The key points
of this initiative are -
-- Establishment of an ESG Committee at Board level, to be
chaired by Ambassador Lincoln Bloomfield who has considerable
private sector experience centred on sustainability, resilience and
renewable energy.
-- Engagement of Socialsuite ESG technology platform - a global
leader in ESG impact management systems and sustainability
reporting.
-- Initiation of ESG reporting, monitoring and improvement for
European Metals utilising Socialsuite.
-- EMH's ESG transparency commitment will include an independent
lithium production Life Cycle Assessment ("LCA") which will
includes a full carbon footprint assessment.
LITHIUM LIFE CYCLE ASSESSMENT SPECIALIST ENGAGED
In line with the stated ESG adoption, the Project engaged
UK-based and globally recognised sustainability and life cycle
assessment consultancy, Minviro, to provide an ISO compliant life
cycle assessment ("LCA") of the Cinovec project.
This assessment will cover both battery-grade lithium carbonate
and battery grade lithium hydroxide and will be benchmarked against
global lithium peers. Minviro has been actively engaged to identify
decarbonisation optimisation in the developing feasibility study
for Cinovec.
LITHIUM LIFE CYCLE ASSESSMENT SPECIALIST ENGAGED (CONTINUED)
The Company strongly believes that the Cinovec LCAs will
demonstrate strong carbon footprint credentials with lower energy
use, less intensive reagent application and net carbon credits from
mine and process by-products. Minviro has provided the assessment
to Geomet and it is currently undergoing external independent QA/QC
before publication.
DRILLING
Throughout the year the Company reported a number of times on
the ongoing drilling programme at the Project. The programme began
in the third quarter of 2020 and continued on and off for the
duration of the year. There were some delays in the programme
brought about by unfavourable weather and also impacts of Covid -19
as mentioned earlier.
The aims of the drilling programme are to convert a sufficient
portion of the existing Indicated Mineral Resource to the Measured
Resource category and subsequently to a Mineral Reserve, to cover
the first two years of the scheduled mining plan and obtaining a
sufficient amount of ore samples for the next phase of
metallurgical testing. The majority of the material will be
utilised in the pilot scale testing for the FEED Study. The
drilling programme was planned to define blocks of resource for the
first 5 years of mining within the Cinovec-South area. The holes
have been terminated in ore consistent with the aim of targeting
the first 5 years of resource blocks for the mine.
The Company reported interim drilling results either in line
with, or better than expectations.
Given the relative ease of beneficiation of the Cinovec deposit
through wet magnetic separation, the Company decided that it was
important to report the drill results and the "in lab"
beneficiation results, with historic results of wet magnetic
separation achieving a >80% pure lithium mica concentrate
grading 2.85% Li2O with a lithium recovery of 92%.
CORPORATE
The Company completed a significant capital raising of AUD 7.1
million in February 2021, the proceeds of which will be used to
advance the Company's strategy including progressing the
development of the Project, progressing discussions with CEZ and
discussions with potential off take and strategic partners. The
capital raising was cornerstoned by the Luxembourg based green
energy fund, Thematica Future Mobility.
NOMAD CHANGE
In January of this year, the Company advised it had appointed WH
Ireland plc as its Nominated Adviser on AIM. WH Ireland will
continue to act as joint broker to the Company, along with Shard
Capital.
BOARD CHANGE
Also in January, Ambassador Lincoln Bloomfield joined the board
of the Company as a Non-executive Director. Ambassador Bloomfield
who is based in Washington, DC, brings governance and regulatory
experience, years of international diplomacy and security expertise
to the Board, along with a North American presence while his
private sector experience is centered on sustainability, resilience
and renewable energy.
Ambassador Bloomfield's prior work in developing the US
Government's first international policy on Cyber Security, and his
related work on Critical Infrastructure Protection will help EMH
and downstream partners operate securely for many years. His deep
experience in managing bilateral relationships with both the State
Department and the Department of Defense will help EMH sustain
effective relationships, both governmental and non-governmental. He
will support EMH in its key relationships with the European
Community, European Battery Alliance, European Raw Metals Alliance,
and others seeking to create a highly secure, uniform and resilient
framework for batteries and critical raw materials supply.
Ambassador Bloomfield is a valuable addition as EMH is focused
on ESG-related aspects of the critical raw materials and battery
supply chain, as part of its commitment to support the European
Commission's new Batteries Regulation, a significant, far-reaching
legislative development. Ambassador Bloomfield's appointment
confirms EMH's commitment to meet the new Batteries Regulation's
three main objectives: strengthening the functioning of the EU
internal market by ensuring a level playing field through a common
set of rules; promoting a circular economy; and reducing
environmental and social impact throughout all stages of the
battery life cycle. Given the complexity of the new Batteries
Regulation, EMH is reassured to know that he will be contributing
to its efforts to achieve compliance throughout the organization.
Ambassador Bloomfield holds several roles in the private sector
promoting sustainability. Having served for eight years until 2017
as Chairman of the non-partisan Stimson Center, he is now Stimson
Chairman Emeritus. He is a Director and National Executive
Committee Member of the U.S. Water Partnership, a public-private
non-profit entity co-chaired by Madeleine Albright and Colin
Powell. He is a Director of the Detroit-based non-profit energy NGO
The Last Kilometer, and Vice Chairman of Mana Pacific, a
Honolulu-based enterprise seeking to provide locally-managed and
affordable renewable energy microgrids throughout the Pacific
islands. He provides expert policy and consulting services to three
Washington DC entities including the law firm Akin Gump. As
President of Palmer Coates LLC, Lincoln maintains commercial
relationships with startup entities developing innovative energy
and transportation technologies, including as Advisor and investor
in Seatrec, Inc. and President of an early-stage technology
startup, called D3E, offering next-generation "optimal" flight
control technology to enable robustness and autonomy in future
drone aircraft.
COVID-19 UPDATE
On 24 April 2020, the Company provided the market with an update
regarding the operations and Covid-19. It was reported that all
management and staff of both EMH and Geomet were unaffected by
COVID-19 and the restrictions on travel at the time and meetings
were not expected to have any impact for the foreseeable future;
all staff were able and continued to work remotely. To-date, the
Cinovec Project has drilled in excess of 13,800m of diamond
drilling under the management of EMH. Extensive sample quantities
are available from the resulting drill core as well as material
recovered from historic adit drives into the ore body. Significant
quantities of ore sample are held at our laboratory partners in
Germany and at the project office in the Czech Republic. European
Metals and Geomet have confirmed with our laboratory and
engineering partners in Germany and Australia that staff and
laboratories involved in the DFS and FEED programmes over the next
3 months are ready and open for work on an immediate basis.
Your Directors present their report, together with the financial
statements of the Group, being European Metals Holdings Limited
("EMH" or the "Company") and its controlled entities ("Group"), for
the year ended 30 June 2021.
DIRECTORS' REPORT
Directors
The following persons were Directors of the Company and were in
office for the entire year, and up to the date of this report,
unless otherwise stated:
Mr Keith Coughlan Executive Chairman Appointed 30 June 2020
Previously Managing Appointed 6 September 2013
Director
Mr Richard Pavlik Executive Director Appointed 27 June 2017
Mr Kiran Morzaria Non-Executive Director Appointed 10 December 2015
Ambassador Lincoln Non-Executive Director Appointed 3 January 2021
Palmer Bloomfield,
Jr
Principal Activities
The Group is primarily involved in the development of the
Cinovec lithium and tin project in the Czech Republic.
Review of Operations
The 2021 Financial Year has been one of significant growth and
development for the Group. For further information refer to the
Project Review section of this report.
Results of Operations
The consolidated loss after tax for year ended 30 June 2021 was
$3,962,450 (2020 profit after tax: $2,813,807).
(The 2020 profit was due to the gain on the deconsolidation of
Geomet.)
Financial Position
The net assets of the Group have increased by $7,208,412 to
$25,277,915 at 30 June 2021 (2020: $18,069,503).
Significant Changes in the State of Affairs
There have not been any significant changes in the state of
affairs of the Group during the financial year other than as
disclosed in the Review of Operations section of this report.
Dividends Paid or Recommended
No dividends were declared or paid during the year and the
Directors do not recommend the payment of a dividend for the
period.
Information on
Directors
Keith Coughlan Executive Chairman - Appointed 30 June 2020
Previously Managing Director (CEO) - Appointed
6 September 2013 to 30 June 2020
Qualifications BA
Experience Mr Coughlan has had almost 30 years' experience
in stockbroking and funds management. He has
been largely involved in the funding and promoting
of resource companies listed on ASX, AIM and
TSX. He has advised various companies on the
identification and acquisition of resource
projects and was previously employed by one
of Australia's then largest funds management
organizations.
Interest in CDIs Mr Coughlan has 850,000 CDIs direct interest
and Options and 8,500,000 CDIs indirect interest held by
Inswinger Holdings Pty Ltd, an entity of which
Mr Coughlan is a director and a shareholder.
Performance Rights On 17 December 2020, the shareholders approved
the grant of 2,400,000 Performance Rights to
Mr Coughlan (or his nominee). These Performance
Rights have yet to be issued at the date of
this Report.
Special Responsibilities Member of Nomination Committee
Member of Environment, Social and Governance
Committee
Directorships held Non-Executive Chairman of Doriemus plc
in other listed Non-Executive Director of Calidus Resources
entities Limited
Non-Executive Director of Southern Hemisphere
Mining Limited (resigned on 8 February 2021)
Richard Pavlik Executive Director - Appointed 27 June 2017
Qualifications Masters Degree in Mining Engineer
Experience Mr Pavlik is the Chief Advisor to the CEO of
Geomet s.r.o, and is a highly experienced Czech
mining executive. Mr Pavlik holds a Masters
Degree in Mining Engineer from the Technical
University of Ostrava in Czech Republic. He
is the former Chief Project Manager and Advisor
to the Chief Executive Officer at OKD. OKD
has been a major coal producer in the Czech
Republic. He has almost 30 years of relevant
industry experience in the Czech Republic.
Mr Pavlik also has experience as a Project
Analyst at Normandy Capital in Sydney as part
of a postgraduate program from Swinburne University.
Mr Pavlik has held previous senior positions
within OKD and New World Resources as Chief
Engineer, and as Head of Surveying and Geology.
He has also served as the Head of the Supervisory
Board of NWR Karbonia, a Polish subsidiary
of New World Resources (UK) Limited. He has
an intimate knowledge of mining in the Czech
Republic.
Interest in CDIs Mr Pavlik has 300,000 CDIs direct interest
and Options
Performance Rights On 17 December 2020, the shareholders approved
the grant of 1,200,000 Performance Rights to
Mr Pavlik (or his nominee). These Performance
Rights have yet to be issued at the date of
this Report.
Special Responsibilities Member of Environment, Social and Governance
Committee
Member of Nomination Committee
Directorships held Nil
in other listed
entities
Information on Directors (continued)
Kiran Morzaria Non-Executive Director - Appointed 10 December
2015
Qualifications Bachelor of Engineering (Industrial Geology)
from the Camborne School of Mines and an MBA
(Finance) from CASS Business School
Experience Mr Morzaria has extensive experience in the
mineral resource industry working in both
operational and management roles. He spent
the first four years of his career in exploration,
mining and civil engineering before obtaining
his MBA. Mr Morzaria has served as a director
of a number of public companies in both an
executive and non-executive capacity.
Interest in CDIs Mr Morzaria has 200,000 CDIs direct interest.
and Options Mr Morzaria is a director and chief executive
of Cadence Minerals Plc which owns 17,663,864
CDIs. Mr Morzaria has no control on the acquisition
or sale of the shares held by Cadence Minerals
plc.
Special Responsibilities Chair of Remuneration Committee
Chair of Nomination Committee
Member of Audit and Risk Committee
Member of Environment, Social and Governance
Committee
Directorships held Chief Executive Officer and Director of Cadence
in other listed Minerals plc and Director of UK Oil & Gas
entities plc. Mr Morzaria was previously a Director
of Bacanora Minerals plc.
Lincoln Palmer Non-Executive Director - Appointed 3 January
Bloomfield Jr. 2021
Qualifications Harvard College (cum laude, Government, 1974),
Fletcher School of Law and Diplomacy (M.A.L.D.,
1980)
Experience Ambassador Bloomfield is based in Washington,
DC, and brings governance and regulatory experience,
years of international diplomacy and security
expertise to the EMH Board, along with a North
American presence while his private sector
experience is centered on sustainability,
resilience and renewable energy.
Interest in CDIs Ambassador Bloomfield has 122,500 direct interest
and Options in CDIs.
Special Responsibilities Chair of Environment, Social and Governance
Committee
Chair of Audit and Risk Committee
Member of Remuneration Committee
Member of Nomination Committee
Directorships held Nil
in other listed
entities
Company Secretary
Mr Dennis Wilkins (appointed 2 November 2020)
Mr Wilkins is the founder and principal of DWCorporate Pty Ltd,
a corporate advisory firm servicing the natural resources industry.
Since 1994 he has been a director of, and involved in the executive
management of, several publicly listed resource companies with
operations in Australia, PNG, Scandinavia and Africa. He was the
Finance Director of Lynas Corporation Ltd during the period when
the Mt Weld Rare Earths project was acquired by the group. He was
also founding director and advisor to Atlas Iron Limited at the
time of Atlas' initial public offering. Since July 2001 Mr Wilkins
has been running DWCorporate Pty Ltd, where he provides advice on
the formation of, and capital raising for, emerging companies in
the Australian resources sector. He is currently a Non-executive
Director of Key Petroleum Limited.
Ms Julia Beckett (resigned on 2 November 2020).
Director Meetings
The number of Directors' meetings and meetings of Committees of
Directors held during the year and the number of meetings attended
by each of the Directors of the Company during the year is:
Directors' Meetings
Name Number attended Number eligible
to attend
Keith Coughlan 3 3
Richard Pavlik 3 3
Kiran Morzaria 3 3
Lincoln Palmer Bloomfield,
Jr 3 3
Indemnifying officers or auditor
During or since the end of the financial year the Company has
given an indemnity or entered into an agreement to indemnify, or
paid or agreed to pay insurance premiums as follows:
i. The Company has entered into agreements to indemnify all
Directors and provide access to documents, against any liability
arising from a claim brought by a third party against the Company.
The agreement provides for the Company to pay all damages and costs
which may be awarded against the Directors.
ii. The Company has paid premiums of $73,500 (2020: $30,000) to
insure each of the Directors against liabilities for costs and
expenses incurred by them in defending any legal proceedings
arising out of their conduct while acting in the capacity of
Director of the Company, other than conduct involving a willful
breach of duty in relation to the Company. Under the terms and
conditions of the insurance contract, the nature of the liabilities
insured against and the premium paid cannot be disclosed.
iii. No indemnity or insurance of auditors has been paid.
CDIs under option
During the year, the following unquoted options and warrants
were issued to consultants:
Grant date/Issue date Expiry date Exercise Number under
Price option
----------------------------- ------------------ --------- -------------
15 June 2020/17 July
2020 15 June 2022 25 cents 250,000(1)
25 September 2020 / 23 23 October
October 2020 2023 42 cents 2,500,000(2)
8 October 2020 / 23 October 23 October
2020 2023 45 cents 1,000,000
5 February 2021/5 March 31 January
2021 2023 $1.10 1,200,000
The above options vest immediately.
(1) On 17 September 2020, 50,000 of these options were exercised
and the remaining 200,000 were exercised on 21 December 2020. The
options conversions raised $62,500.
(2) On 10 May 2021, 238,000 of these options were exercised. The
option conversions raised $99,960.
CDIs under option (continued)
Unissued CDIs of European Metals Holdings Limited under option
and warrant at the date of this report is as follows:
Expiry date Exercise Price Number under option
------------------ --------------- --------------------
22 November
2021 20 pence 27,500
31 December
2022 25 cents 10,000,000
23 October
2023 42 cents 2,024,000
23 October
2023 45 cents 1,000,000
31 January
2023 $1.10 1,200,000
During the year ended 30 June 2021, the following ordinary
shares were issued on the exercise of options granted:
Grant date/Issue Exercise Price Number of Shares
date Issued
------------------ ------------------ ---------------- -----------------
Issued to:
- Key management
personnel 17 August 2015 16.6 cents 3,750,000
15 June 20/17
- Consultant July 20 25 cents 250,000
* Brokers 22 November 2018 20 pence 89,375
- Consultant 12 July 2019 35 cents 200,000
- Consultant 12 July 2019 40.18 cents 100,000
- Consultants 6 December 2019 31.11 cents 100,000
- Consultant 23 October 2020 42 cents 238,000
Since the end of the reporting year, the following options were
exercised:
On 16 July 2021, the Company issued 238,000 CDIs upon the
exercise of unquoted options at 42 cents. The options conversions
raised a total of $99,960.
No person entitled to exercise the option or warrant has or has
any right by virtue of the option or warrant to participate in any
share issue of any other body corporate.
Performance Shares
Performance shares on issue at the date of this report is as
follows:
Issue date Expiry date Number on
issue
--------- ------------- ------------- ----------
A Class 18 Dec 2018 18 Dec 2021 3,000,000
Performance Rights
On 17 December 2020, the shareholders approved the grant of
2,400,000 Performance Rights to Mr Keith Coughlan and 1,200,000
Performance Rights to Mr Richard Pavlick. These Performance Rights
have yet to be issued at the date of this Report.
Environmental, Social and Governance
During the year the Company has adopted a set of Environmental,
Social and Governance ("ESG") metrics and disclosures following the
recommendations released by the World Economic Forum ("WEF") in
Geneva, Switzerland which are acknowledged as the gold standard for
ESG reporting.
The establishment of an ESG Committee at Board level is chaired
by Ambassador Lincoln Bloomfield who has considerable private
sector experience centred on sustainability, resilience and
renewable energy. Ambassador Bloomfield has stated, "European
Metals is making every effort to ensure that any finished product
containing our lithium will satisfy the public's need for assurance
that high ESG standards have been upheld at every stage of our
production process. We are committed to the well-being of our
workforce, minimizing environmental impact throughout our process,
and being a good neighbour within the local community".
The Company engaged Socialsuite ESG technology platform - a
global leader in ESG impact management systems and sustainability
reporting.
The Company has deployed Socialsuite's ESG technology platform
to set its initial ESG baseline in its first quarterly ESG
dashboard. With a tailored action plan, the Company will focus on
delivering and reporting ongoing progress toward disclosing and
improving ESG metrics and indicators. Socialsuite's ESG reporting
technology provides an easy way for investors and other
stakeholders to assess the commitment and progress of the Company
on its journey to create "best in class" ESG credentials and
outcomes.
The Company's ESG transparency commitment is a precursor to an
independent lithium production Life Cycle Assessment2 ("LCA") which
includes a full Carbon Footprint assessment.
Proceedings on Behalf of the Company
No person has applied for leave of Court to bring proceedings on
behalf of the Company or intervene in any proceedings to which the
Company is a party for the purpose of taking responsibility on
behalf of the Company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the
year.
Non-audit Services
Stantons International has not provided any non-audit services
during the year.
Significant events after the reporting date
On 16 July 2021, the Company issued 238,000 CDIs upon the
exercise of unquoted options at 42 cents. The options conversions
raised a total of $99,960.
Except for the matters noted above there have been no other
significant events arising after the reporting date.
Auditor's Independence Declaration
The auditor's independence declaration for the year ended 30
June 2021 has been received and can be found on page 2 2 of the
financial report.
REMUNERATION REPORT (AUDITED)
This report details the nature and amount of remuneration for
each Director of the Company, and key management personnel ("KMP").
The Directors are pleased to present the remuneration report which
sets out the remuneration information for European Metals Holdings
Limited's Non-Executive Directors, Executive Directors and other
key management personnel.
A. Principles used to determine the nature and amount of
remuneration
The remuneration policy of the Group has been designed to align
Director and management objectives with shareholder and business
objectives by providing a fixed remuneration component, and
offering specific long-term incentives based on key performance
areas affecting the Group financial results. The Board of the
Company believes the remuneration policy to be appropriate and
effective in its ability to attract and retain the best management
and Directors to run and manage the Group, as well as create goal
congruence between Directors, Executives and shareholders.
The Board's policy for determining the nature and amount of
remuneration for Board members and Senior Executives of the Group
is as follows:
The remuneration policy, setting the terms and conditions for
the Executive Directors and other Senior Executives, was developed
by the Board. All Executives receive a base salary (which is based
on factors such as length of service and experience),
superannuation, options and performance incentives. The Board
reviews Executive packages annually by reference to the Group's
performance, executive performance, and comparable information from
industry sectors and other listed companies in similar
industries.
Executives are also entitled to participate in the employee
share and option arrangements.
All remuneration paid to Directors and Executives is valued at
the cost to the Group and expensed.
The Board policy is to remunerate Non-executive Directors at
commercial market rates for comparable companies for time,
commitment, and responsibilities. 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 the Annual General Meeting.
Fees for Non-Executive Directors are not linked to the performance
of the Group. However, to align Directors' interests with
shareholder interests, the Directors are encouraged to hold CDIs in
the Company.
The remuneration policy has been tailored to increase the direct
positive relationship between shareholders' investment objectives
and Directors' and Executives' performance. Currently, this is
facilitated through the issue of options to the majority of
Directors and Executives to encourage the alignment of personal and
shareholder interests. The Company believes this policy will be
effective in increasing shareholder wealth. For details of
Directors' and Executives' interests in CDIs, options and
performance shares at year end, refer to the remuneration
report.
B. Details of Remuneration
Details of the nature and amount of each element of the
emoluments of each of the KMP of the Company (the Directors) for
the year ended 30 June 2021 are set out in the following
tables:
The maximum amount of remuneration for Non-Executive Directors
is $300,000 as approved by shareholders.
During the financial period, the Company did not engage any
remuneration consultants.
REMUNERATION REPORT (AUDITED)
2021
Group Key Short-term benefits Post- Long-term Equity-settled Total % of
Management employment benefits share-based remuneration
Personnel benefits payments as share
based
payments
Salary, Profit Non-monetary Other Super- Long Equity Options
fees share annuation Service
and and Leave
leave bonuses
Directors $ $ $ $ $ $ $ $ $
Keith
Coughlan(i) 279,000 99,490 - 27,407 27,345 17,825 - - 451,067 -
Kiran
Morzaria 33,567 - - - - - - - 33,567 -
Richard
Pavlik - 50,469 - - - - - - 50,469 -
Lincoln
Palmer
Bloomfield,
Jr (ii) 27,468 19,714 - - - - - - 47,182 -
340,035 169,673 - 27,407 27,345 17,825 - - 582,285 -
-------- -------- ------------ ------ ---------- --------- ------- ------- ------- ------------
Notes:
(i) During the financial year, a total of $137,280 of Mr
Coughlan's remuneration was reimbursed by Geomet s.r.o.
(ii) Includes $4,689 accrual of June 2021 fee.
2020
Group Key Short-term benefits Post- Long-term Equity-settled Total % of
Management employment benefits share-based remuneration
Personnel benefits payments as share
based
payments
Salary, Profit Non-monetary Other Super- Long Equity Options
fees share annuation Service (iv)
and and Leave
leave bonuses
Directors $ $ $ $ $ $ $ $ $
David
Reeves(i) 36,000 - - - - - - - 36,000 -
Keith
Coughlan(ii) 240,000 - - 4,822 22,800 26,663 - - 294,285 -
Kiran
Morzaria 24,000 - - - - - - - 24,000 -
Richard
Pavlik(iii) 140,691 - - - - - - 29,802 170,493 17.4%
440,691 - - 4,822 22,800 26,663 - 29,802 524,778 -
-------- -------- ------------ ----- ---------- --------- ------- ------- ------- ------------
Notes:
(i) Resigned 30 June 2020.
(ii) Effective 28 April 2020, a portion of Mr Coughlan's
remuneration has been reimbursed by Geomet s.r.o. The Company was
appointed to provide services of managing the Cinovec project
development subsequent to finalization of final agreement with CEZ
Group. During the financial year, a total of $22,880 was reimbursed
by Geomet s.r.o.
(iii) Represents remuneration from 1 July 2020 to 27 April 2020.
Effective 28 April 2020, Mr Pavlik's remuneration has been paid by
Geomet s.r.o directly.
(iv) The value of the options granted to key management
personnel as part of their remuneration is calculated as at the
grant date using the Black and Scholes. The amount disclosed as
part of remuneration for the financial year is the amount expensed
over the vesting period.
REMUNERATION REPORT (AUDITED)
C. Service Agreements
It was formally agreed at a meeting of the directors that the
following remuneration be established; there are no formal notice
periods, leave accruals or termination benefits payable on
termination.
Mr Keith Coughlan, Executive Chairman, received a salary of
$240,000 plus statutory superannuation contribution from 1 July
2020 to 31 December 2020. His salary was increased to $318,000 per
annum plus statutory superannuation contribution from 1 January
2021.
D. Share-based compensation
During the financial year, nil CDIs were issued to KMP under the
Employee Securities Incentive Plan (ESIP) (2020: nil).
Loan CDIs on issue to KMP under the ESIP are as follows:
30 June Balance at
2021 Loan CDIs Grant Details Exercised Lapsed/Cancelled End of Year
Grant Date No. Value No. Value No. Value No. Value
$ $ $ Vested $
Group KMP
Keith Coughlan 30 Nov 2017 850,000 592,245 - - - - 850,000 592,245
Richard
Pavlik 30 Nov 2017 300,000 209,028 - - - - 300,000 209,028
Kiran Morzaria 30 Nov 2017 200,000 139,352 - - - - 200,000 139,352
1,350,000 940,625 - - - - 1,350,000 940,625
--------- ------- ---- ----- ------- ----------- ------------ ---------
30 June Balance at
2020 Loan CDIs Grant Details Exercised Lapsed/Cancelled End of Year
Grant Date No. Value No. Value No. Value No. Value
$ $ $ Vested $
Group KMP
David Reeves* 30 Nov 2017 300,000 209,028 - - - - 300,000 209,028
Keith Coughlan 30 Nov 2017 850,000 592,245 - - - - 850,000 592,245
Richard
Pavlik 30 Nov 2017 300,000 209,028 - - - - 300,000 209,028
Kiran Morzaria 30 Nov 2017 200,000 139,352 - - - - 200,000 139,352
1,650,000 1,149,653 - - - - 1,650,000 1,149,653
--------- --------- ---- ----- ------- ----------- --------- ---------
* Resigned on 30 June 2020
The terms of the loan CDIs are disclosed in Note 16.
REMUNERATION REPORT (AUDITED)
E. Options issued for the year ended 30 June 2021
No options were issued as part of the remuneration for the year
ended 30 June 2021 (2020: nil).
F. Performance Rights granted for the year ended 30 June
2021
30 June Performance Rights Balance at
2021 Details Exercised Lapsed End of Year Vested Unvested
Grant
Date No. Value(1) No. Value No. Value No. Value(1) No. No.
$ $ $ $
Group KMP
Keith 17 Dec
Coughlan 20 2,400,000 2,088,000 - - - - 2,400,000 2,088,000 - 2,400,000
Richard 17 Dec
Pavlik 20 1,200,000 1,044,000 - - - - 1,200,000 1,044,000 - 1,200,000
-------- ---------
3,600,000 3,132,000 - - - - 3,600,000 3,132,000 - 3,600,000
--------- --------- ---- ----- --- ----- --------- --------- -------- ---------
Notes:
1. The value of performance rights granted to key management
personnel is calculated as at the grant date based on the share
price at grant date. As at 30 June 2021, management has yet to
indicate the number of these performance rights expected to vest,
hence has not expensed any of the value of these performance
rights. Management shall revise this estimate when subsequent
information indicates that the number of performance rights
expected to vest differs from previous estimate.
G. Equity instruments issued on exercise of remuneration
options
There were no equity instruments issued during the year to
Directors or other KMP as a result of options exercised that had
previously been granted as compensation.
H. Loans to Directors and Key Management Personnel
There were no loans issued to Key Management Personnel during
the financial year.
I. Company performance, shareholder wealth and Directors' and
Executives' remuneration
The remuneration policy has been tailored to increase the direct
positive relationship between shareholders' investment objectives
and Directors' and Executives' performance. This will be
facilitated through the issue of options to the majority of
Directors and Executives to encourage the alignment of personal and
shareholder interests. The Company believes this policy will be
effective in increasing shareholder wealth. At commencement of mine
production, performance-based bonuses based on key performance
indicators are expected to be introduced.
REMUNERATION REPORT (AUDITED)
J. Other information
Options held by Key Management Personnel
The number of options to acquire CDIs in the Company held during
the 2021 and 2020 reporting period by each of the Key Management
Personnel of the Group including their related parties are set out
below.
Balance Balance Unvested
at the Granted Exercised Other changes at the end
start of during during during of Vested
30 June 2021 the year the year the year the year the year and exercisable
Keith Coughlan 2,000,000 - - (2,000,000)* - - -
Richard Pavlik - - - - - - -
Kiran Morzaria - - - - - - -
Lincoln Palmer - - - - - - -
Bloomfield,
Jr
--------- --------- --------- ------------- ----------- ---------------- --------
Total 2,000,000 - - (2,000,000) - - -
--------- --------- --------- ------------- ----------- ---------------- --------
*Off market transfer
Balance Balance Unvested
at the Granted Exercised Other changes at the end
start of during during during of Vested
30 June 2020 the year the year the year the year the year and exercisable
David Reeves* 1,000,000 - - - 1,000,000 1,000,000 -
Keith Coughlan 2,000,000 - - - 2,000,000 2,000,000 -
Kiran Morzaria - - - - - - -
Richard Pavlik 400,000 - - (400,000) - -
Total 3,400,000 - - (400,000) 3,000,000 3,000,000 -
--------- --------- --------- ------------- ----------- ---------------- --------
*Resigned on 30 June 2020.
Chess Depositary Interests ('CDIs') held by Key Management
Personnel
The number of ordinary CDIs held in the Company during the 2021
and 2020 reporting period held by each of the Key Management
Personnel of the Group; including their related parties are set out
below. The CDIs held directly have been obtained through the
Employee Securities Incentive Plan.
Balance Granted Issued Other Changes Balance
at Start as remuneration on exercise during at end
2021 of year during the of options the year of year
Name year
Keith Coughlan 850,000 - - - 850,000
Indirect(1) 8,500,000 - - - 8,500,000
Richard Pavlik 300,000 - - - 300,000
Kiran Morzaria 200,000 - - - 200,000
Indirect(2) 23,259,751 - - (5,595,887) 17,663,864
Lincoln Palmer Bloomfield,
Jr 122,500(3) - - - 122,500
Total 33,232,251 - - (5,595,887) 27,636,364
=========== ================= ============= ============== ===========
Notes:
1. Mr Coughlan has 850,000 CDIs direct interest and 8,500,000
CDIs indirect interest held by Inswinger Holdings Pty Ltd, an
entity of which Mr Coughlan is a director and a shareholder.
2. Mr Morzaria is a director and chief executive of Cadence
Minerals plc, an entity which owns 17,663,864 CDIs in European
Metals Holdings Limited. Mr Morzaria does not have direct control
over the disposal of the shares either by means of his directorship
of Cadence Minerals plc or his shareholding in Cadence Minerals
plc.
3. Represent balance held on appointment.
REMUNERATION REPORT (AUDITED)
Balance Granted Issued Other Changes Balance
at Start as remuneration on exercise during at end
2020 of year during the of options the year of year
Name year
David Reeves(i) 300,000 - - - 300,000
Indirect(1) 3,720,244 - - 325,596(4) 4,045,840
Keith Coughlan 850,000 - - - 850,000
Indirect(2) 8,500,000 - - - 8,500,000
Kiran Morzaria 200,000 - - - 200,000
Indirect(3) 27,896,470 - - (4,636,719) 23,259,751
Richard Pavlik 300,000 - - - 300,000
Total 41,766,714 - - (4,311,123) 37,455,591
=========== ================= ============= ============== ===========
Notes:
1. Mr Reeves has 300,000 CDIs direct interest and 4,045,840 CDIs
indirect interest held by Eleanor Jean Reeves <Elanwi A/C>,
Mr Reeves' spouse.
2. Mr Coughlan has 850,000 CDIs direct interest and 8,500,000
CDIs indirect interest held by Inswinger Holdings Pty Ltd, an
entity of which Mr Coughlan is a director and a shareholder.
3. Mr Morzaria has 23,259,751 indirect interest held by Cadence
Minerals Plc, an entity of which Mr Morzaria is a director and
chief executive.
4. Issued on conversion of A Class Performance Shares and B
Class Performance Shares.
(i) Resigned 30 June 2020. The balance at end of year represents
balance at date of resignation.
Performance Shares held by Key Management Personnel
There were no Performance shares held by Key Management
Personnel of the Group during the 2021 financial year.
Balance at
30 June 2020 Grant Details Exercised Lapsed/cancelled End of Year
Class Grant No. Value
Date No. Value No. Value No. Value
$ $ $ Unvested $
Group KMP
18 Dec
David Reeves(i) A Class 18 542,651 86,824 (217,064) 34,730 - - 325,587 52,094
24 Nov
David Reeves(i) B Class 16 542,651 289,932 (108,532) 57,987 (434,119) 231,945 - -
Keith Coughlan - - - - - - - - -
Richard Pavlik - - - - - - - - -
Kiran Morzaria - - - - - - - - -
1,085,302 376,756 (325,596) 92,717 (434,119) 231,945 325,587 52,094
--------- ------- --------- ------ --------- ------- -------- ------
(i) Resigned 30 June 2020. The balance at end of the year
represents balance at the date of resignation.
REMUNERATION REPORT (AUDITED)
Other transactions with Key Management Personnel
Purchases from related parties are made on terms equivalent to
those that prevail in arm's length transactions. From January 2021,
the Company received accounting and bookkeeping services of $56,256
plus GST from Everest Corporate, a company controlled by the spouse
of Executive Chairman, Keith Coughlan. Amount payable to Everest
Corporate as at 30 June 2021 was $12,528.
From 1 May 2021, the Company received rental income of $24,515
plus GST for the period 1 May 2021 to 31 December 2021 from Everest
Corporate for subletting the office in West Perth.
During the 2021 financial year, the Company paid $4,900 plus GST
for office rental to Wild West Enterprises Pty Ltd, an entity
controlled by former director, David Reeves (2020: $15,600).
There were no other transactions with Key Management Personnel
during the financial year.
End of Remuneration Report
Signed in accordance with a resolution of the Board of
Directors.
Keith Coughlan
EXECUTIVE CHAIRMAN
Dated at 30 September 2021
[to be inserted]
AUDITOR'S INDEPENCE DECLARATION
30 September 2021
Board of Directors
European Metals Holdings Limited Level 3, 35 Outram Street
WEST PERTH WA 6005
Dear Directors
RE: EUROPEAN METALS HOLDINGS LIMITED
In accordance with section 307C of the Corporations Act 2001, I
am pleased to provide the following declaration of independence to
the directors of European Metals Holdings Limited.
As Audit Director for the audit of the financial statements of
European Metals Holdings Limited for the year ended 30 June 2021, I
declare that to the best of my knowledge and belief, there have
been no contraventions of:
(i) the auditor independence requirements of the Corporations
Act 2001 in relation to the audit; and
(ii) any applicable code of professional conduct in relation to the audit.
Yours faithfully
STANTONS INTERNATIONAL AUDIT & CONSULTING PTY LTD
(An Authorised Audit Company)
Samir R Tirodkar Director
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE YEARED 30 JUNE 2021
Note 30 June 30 June
2021 2020
$ $
Revenue 6 1,102,953 183,824
Other income 66,199 47,255
R&D rebate 289,335 -
Professional fees (1,565,631) (2,043,727)
Audit fees 7 (43,526) (54,450)
Directors' fees (80,748) (60,000)
Share based payments 16,17 (987,490) (2,439,192)
Advertising and promotion (405,276) (175,052)
Employees' benefits (559,026) (294,342)
Travel and accommodation (7,248) (98,576)
Insurance expense (64,619) (25,552)
Share registry and listing expense (239,475) (139,514)
Depreciation and amortisation expense (8,876) (1,344)
Equity accounting on investment in Geomet
s.r.o 12 (1,263,167) 490,051
Facility, advance fee and finance costs (61,155) -
Foreign exchange gain/(loss) (7,460) 45,018
Other expenses (127,240) (43,128)
-------------- ------------
Loss before income tax (3,962,450) (4,608,729)
Income tax expense 3 - -
-------------- ------------
Loss from continuing operations (3,962,450) (4,608,729)
Gain from discontinued operations - De-consolidation
of Geomet s.r.o 20 - 7,422,536
-------------- ------------
(Loss)/Income for the year attributable to
the members of the Company (3,962,450) 2,813,807
-------------- ------------
Other comprehensive income/(loss)
Items that may be reclassified subsequently
to profit or loss
- Exchange differences on translating foreign
operations 9,644 (1,522,451)
* Equity accounting on investment in Geomet s.r.o (242,337) -
Other comprehensive loss for the year, net
of tax (232,693) (1,522,451)
Total comprehensive (loss)/income for the
year attributable to members of the Company (4,195,143) 1,291,356
============== ============
Loss per share for loss from continuing operations
Basic loss per CDI (cents) 8 (2.39) (3.05)
Diluted loss per CDI (cents) 8 (2.39) (3.05)
Earnings per share for income from discontinued
operations
Basic earnings per CDI (cents) 8 - 4.92
Diluted earnings per CDI (cents) 8 - 4.92
The above statement should be read in conjunction with the
accompanying notes.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AR 30 JUNE
2021
2021 2020
Note $ $
CURRENT ASSETS
Cash and cash equivalents 9 7,880,673 58,951
GST and other receivables 53,046 17,252
Other assets 10 337,196 5,110
TOTAL CURRENT ASSETS 8,270,915 81,313
------------ ------------
NON-CURRENT ASSETS
Other assets 10 47,392 -
Property, plant and equipment - 869
Right-of-use asset 11 136,122 -
Investments accounted for using equity
method 12 17,461,027 18,966,531
TOTAL NON-CURRENT ASSETS 17,644,541 18,967,400
------------ ------------
TOTAL ASSETS 25,915,456 19,048,713
------------ ------------
CURRENT LIABILITIES
Trade and other payables 13 439,798 924,592
Provisions - employee entitlements 14 99,850 54,618
Lease liability 11 6,038 -
------------ ------------
TOTAL CURRENT LIABILITIES 545,686 979,210
------------ ------------
NON-CURRENT LIABILITIES
Lease liability 11 91,855 -
TOTAL NON-CURRENT LIABILITIES 91,855 979,210
------------ ------------
TOTAL LIABILITIES 637,541 979,210
------------ ------------
NET ASSETS 25,277,915 18,069,503
============ ============
EQUITY
Issued capital 15 34,087,930 23,954,204
Reserves 16 8,752,723 7,715,587
Accumulated losses (17,562,738) (13,600,288)
------------ ------------
TOTAL EQUITY 25,277,915 18,069,503
========== ============
The above statement should be read in conjunction with the
accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 30
JUNE 2021
Issued Capital Share Based Foreign Currency Accumulated
Payment Reserve Translation Losses Total
Reserve
$ $ $ $ $
Balance at 1 July 2019 22,074,314 5,511,581 1,287,265 (16,414,095) 12,459,065
Income attributable to
members of the Company - - - 2,813,807 2,813,807
Other comprehensive loss - - (1,522,451) - (1,522,451)
---------- --------- ----------- ------------ -----------
Total comprehensive income
for the year - - (1,522,451) 2,813,807 1,291,356
---------- --------- ----------- ------------ -----------
Transactions with owners,
recognized directly in
equity
CDIs issued during the
year, net of costs 1,879,890 - - - 1,879,890
Equity based payments - 2,439,192 - - 2,439,192
---------- --------- ----------- ------------ -----------
Balance at 30 June 2020 23,954,204 7,950,773 (235,186) (13,600,288) 18,069,503
========== ========= =========== ============ ===========
Balance at 1 July 2020 23,954,204 7,950,773 (235,186) (13,600,288) 18,069,503
Loss attributable to
members of the Company - - - (3,962,450) (3,962,450)
Other comprehensive loss - - (232,693) - (232,693)
---------- --------- ----------- ------------ -----------
Total comprehensive loss
for the year - - (232,693) (3,962,450) (4,195,143)
---------- --------- ----------- ------------ -----------
Transactions with owners,
recognized directly in
equity
CDIs issued during the
year 9,100,000 - - - 9,100,000
Capital raising costs (526,387) 355,000 - - (171,387)
Exercise of options and
warrants 958,733 - - - 958,733
Repayment of Loan CDIs 271,380 - - - 271,380
Share based payments 330,000 914,829 - - 1,244,829
Balance at 30 June 2021 34,087,930 9,220,602 (467,879) (17,562,738) 25,277,915
========== ========= =========== ============ ===========
The above statement should be read in conjunction with the
accompanying notes.
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEARED 30 JUNE
2021
30 June 30 June 2020
2021
Note $ $
CASH FLOWS FROM OPERATING ACTIVITIES
Revenue received 1,011,041 275,736
Government grant 55,118 39,370
Payments to suppliers and employees (2,640,953) (2,177,875)
Interest received 1,340 11
R&D Rebate 289,335 -
Payments for Cinovec associated costs (1,007,678) -
Net cash (used in) operating activities 18 (2,291,797) (1,862,758)
----------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation
expenditure - (331,372)
Net cash (used in) investing activities - (331,372)
----------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of CDIs 9,100,000 2,024,905
Capital raising costs paid (171,387) (145,015)
Proceeds from exercise of options and
warrants 958,733 -
Proceeds from repayment of loan CDIs 271,380 -
Payment for lease liability (47,391) -
----------- ------------
Net cash from financing activities 10,111,335 1,879,890
----------- ------------
Net increase/(decrease) in cash and cash
equivalents 7,819,538 (314,240)
Cash and cash equivalents at the beginning
of the financial year 58,951 426,178
Exchange differences in foreign currency
held 2,184 (52,987)
----------- ------------
Cash and cash equivalents at the end
of financial year 9 7,880,673 58,951
=========== ============
The above statement should be read in conjunction with the
accompanying notes.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARED 30
JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of preparation
These consolidated financial statements and notes represent those
of European Metals Holdings Limited ("EMHL" or "the Company")
and its Controlled Entities (the "Consolidated Group" or "Group").
The financial statements are general purpose financial statements,
which have been prepared in accordance with Australian Accounting
Standards, Australian Accounting Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Boards
(AASB) and the Corporations Act 2001. The Group is a for-profit
entity for financial reporting purposes under Australian Accounting
Standards.
The accounting policies detailed below have been adopted in the
preparation of the financial report. Except for cash flow information,
the financial statements have been prepared on an accrual basis
and are based on historical cost, modified, where applicable,
by the measurement at fair values of selected non-current assets,
financial assets and financial liabilities.
The Company is a listed public company, incorporated in the British
Virgin Islands and registered in Australia.
(i) Accounting policies
The Group has considered the implications of new and amended
Accounting Standards which have become applicable for the current
financial reporting year.
New and Revised Accounting Standards Adopted by the Group
Initial adoption of AASB 2020-04: COVID-19-Related Rent
Concessions
AASB 2020-4: Amendments to Australian Accounting Standards -
COVID-19 Related Rent Concessions amends AASB 16 by providing a
practical expedient that permits lessees to assess whether rent
concessions that occur as a direct consequence of the COVID-19
pandemic and, if certain conditions are met, account for those rent
concessions as if they were not lease modifications.
Initial adoption of AASB 2018-6: Amendments to Australian
Accounting Standards - Definition of a Business
AASB 2018-6 amends and narrows the definition of a business
specified in AASB 3: Business Combinations, simplifying the
determination of whether a transaction should be accounted for as a
business combination or an asset acquisition. Entities may also
perform a calculation and elect to treat certain acquisitions as
acquisitions of assets.
Initial adoption of AASB 2018-7: Amendments to Australian
Accounting Standards - Definition of Material
This amendment principally amends AASB 101 and AASB 108 by
refining the definition of material by improving the wording and
aligning the definition across the standards issued by the
AASB.
Initial adoption of AASB 2019-3: Amendments to Australian
Accounting Standards - Interest Rate Benchmark
This amendment amends specific hedge accounting requirements to
provide relief from the potential effects of the uncertainty caused
by interest rate benchmark reform.
Initial adoption of AASB 2019-1: Amendments to Australian
Accounting Standards - References to the Conceptual Framework
This amendment amends Australian Accounting Standards,
Interpretations and other pronouncements to reflect the issuance of
Conceptual Framework for Financial Reporting by the AASB.
The standards listed above did not have any impact on the
amounts recognised in prior periods and are not expected to
significantly affect the current or future periods.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
(a) Basis of preparation (continued)
(i) Accounting policies (continued)
New and revised Accounting Standards for Application in
Future
Periods
Any new, revised or amending Accounting Standards or
Interpretations
that are not yet mandatory have not been early adopted. The
adoption
of these Accounting Standards and Interpretations did not
have
any significant impact on the financial performance or
position
of the Group.
There are no other standards that are not yet effective and
that
would be expected to have a material impact on the entity
in
the current or future reporting period and on foreseeable
future
transactions.
(ii) Statement of Compliance
The financial report was authorised for issue on 30
September
2021.
Australian Accounting Standards set out accounting policies
that
the AASB has concluded would result in the financial
statements
containing relevant and reliable information about
transactions,
events and conditions. Compliance with Australian
Accounting
Standards ensures that the financial statements and notes
also
comply with International Financial Reporting Standards as
issued
by the IASB.
(iii) Financial Position
The Directors have prepared the financial statements on
going
concern basis, which contemplates continuity of normal
business
activities and the realisation of assets and extinguishment
of
liabilities in the ordinary course of business.
At 30 June 2021, the Group comprising the Company and its
subsidiaries
has incurred a loss for the year amounting to $3,962,450
(2020:
income of $2,813,807). The Group has a net working capital
surplus
of $7,725,229 (2020: deficit of $897,897) and cash and cash
equivalents
of $7,880,673 (2020: $58,951).
The Directors have prepared a cash flow forecast, which
indicates
that the Company will have sufficient cash flows to meet
all
commitments and working capital requirements for the
12-month
period from the date of signing this financial report.
Based on the cash flow forecasts, the Directors are
satisfied
that the going concern basis of preparation is appropriate.
In
determining the appropriateness of the basis of
preparation,
the Directors have considered the impact of the COVID-19
pandemic
on the position of the Company at 30 June 2021 and its
operations
in future periods.
(iv) Critical accounting estimates and judgements
The application of accounting policies requires the use of
judgements,
estimates and assumptions about carrying values of assets
and
liabilities that are not readily apparent from other
sources.
The estimates and associated assumptions are based on
historical
experience and other factors that are considered to be
relevant.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing
basis. Revisions are recognised in the period in which the
estimate
is revised if it affects only that period or in the period
of
the revision and future periods if the revision affects
both
current and future periods.
Share-based payment transactions
The Group measures the cost of equity-settled transactions
with
employees and consultants by reference to the estimated
fair
value of the equity instruments at the date at which they
are
granted. These are expensed over the estimated vesting
periods.
Judgement has been exercised on the probability and timing
of
achieving milestones related to performance rights granted
to
Directors.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Basis of preparation (continued)
(iv) Critical accounting estimates and judgements (continued)
Estimation of the Group's borrowing rate
The lease payments used to determine the lease liability and
rignt-of-use of asset at 1 July 2020 under AASB 16 Leases are
discounted using the Group's incremental borrowing rate of
5%.
Recognition of deferred tax assets
Deferred tax assets relating to temporary differences and unused
tax losses have not been recognised as the Directors are of
the opinion that it is not probable that future taxable profit
will be available against which the benefits of the deferred
tax assets can be utilised.
(b) Income Tax
Current income tax expense charged to the profit or loss is
the tax payable on taxable income calculated using applicable
income tax rates enacted, or substantially enacted, as at reporting
date. Current tax liabilities (assets) are therefore measured
at the amounts expected to be paid to (recovered from) the
relevant taxation authority.
Deferred income tax expense reflects movements in deferred
tax asset and deferred tax liability balances during the year
as well unused tax losses. Current and deferred income tax
expense (income) is charged or credited directly to equity
instead of the profit or loss when the tax relates to items
that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on
temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial
statements. Deferred tax assets also result where amounts have
been fully expensed but future tax deductions are available.
No deferred income tax will be recognised from the initial
recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable
profit or loss.
Deferred tax assets and liabilities are calculated at the tax
rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on tax rates
enacted or substantively enacted at reporting date. Their measurement
also reflects the manner in which management expects to recover
or settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused
tax losses are recognised only to the extent that it is probable
that future taxable profit will be available against which
the benefits of the deferred tax asset can be utilised. Where
temporary differences exist in relation to investments in subsidiaries,
branches, associates, and joint ventures, deferred tax assets
and liabilities are not recognised where the timing of the
reversal of the temporary difference can be controlled and
it is not probable that the reversal will occur in the foreseeable
future.
Current tax assets and liabilities are offset where a legally
enforceable right of set-off exists and it is intended that
net settlement or simultaneous realisation and settlement of
the respective asset and liability will occur. Deferred tax
assets and liabilities are offset where a legally enforceable
right of set-off exists, the deferred tax assets and liabilities
relate to income taxes levied by the same taxation authority
on either the same taxable entity or different taxable entities
where it is intended that net settlement or simultaneous realisation
and settlement of the respective asset and liability will occur
in future periods in which significant amounts of deferred
tax assets or liabilities are expected to be recovered or settled.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c) Impairment of Assets
At the end of each reporting period the Group assesses whether
there is an indication that an asset may be impaired. If any
such indication exists, or when annual impairment testing for
an asset is required, the Group makes an estimate of the asset's
recoverable amount. An asset's recoverable amount is the higher
of its fair value less costs to sell and its value in use and
is determined for an individual asset, unless the asset does
not generate cash inflows that are largely independent of those
from other assets or groups of assets and the asset's value
in use cannot be estimated to be close to its fair value. In
such cases the asset is tested for impairment as part of the
cash-generating unit to which it belongs. When the carrying
amount of an asset or cash-generating unit exceeds its recoverable
amount, the asset or cash-generating unit is considered impaired
and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value
of money and the risks specific to the asset. Impairment losses
relating to continuing operations are recognised in those expense
categories consistent with the function of the impaired asset
unless the asset is carried at revalued amount in which case
the impairment loss is treated as a revaluation decrease.
An assessment is also made at each reporting period as to whether
there is any indication that previously recognised impairment
losses may no longer exist or may have decreased. If such indication
exists, the recoverable amount is estimated. A previously recognised
impairment loss is reversed only if there has been a change
in the estimates used to determine the asset's recoverable
amount since the last impairment loss was recognised. If that
is the case the carrying amount of the asset is increased to
its recoverable amount. That increased amount cannot exceed
the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the
asset in prior years. Such reversal is recognised in profit
or loss unless the asset is carried at revalued amount, in
which case the reversal is treated as a revaluation increase.
After such a reversal the depreciation charge is adjusted in
future periods to allocate the asset's revised carrying amount,
less any residual value, on a systematic basis over its remaining
useful life.
(d) Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held
at call with banks, other short-term highly liquid investments
with original maturities of three months or less, and bank
overdrafts. Bank overdrafts are shown within short-term borrowings
in current liabilities in the Statement of Financial Position.
(e) Revenue
Interest
Interest income is recognised using the effective interest
method.
Services Revenue
Revenue is recognised at an amount that reflects the
consideration to which the Group is expected to be entitled in
exchange for transferring goods or services to a customer. For each
contract with a customer, the Group: identifies the contract with a
customer; identifies the performance obligations in the contract;
determines the transaction price which takes into account estimates
of variable consideration and the time value of money; allocates
the transaction price to the separate performance obligations on
the basis of the relative stand-alone selling price of each
distinct good or service to be delivered; and recognises revenue
when or as each performance obligation is satisfied in a manner
that depicts the transfer to the customer of the goods or services
promised.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(f) Goods and Services Tax (GST)
Revenues, expenses, and assets are recognised net of
the amount
of GST, except where the amount of GST incurred is not
recoverable
from the Australian Tax Office. In these circumstances
the GST
is recognised as part of the cost of acquisition of
the asset
or as part of an item of the expense. Receivables and
payables
in the Statement of Financial Position are shown
inclusive of
GST.
Cash flows are presented in the Statement of Cash
Flows on a
gross basis, except for the GST component of investing
and financing
activities, which are disclosed as operating cash
flows.
(g) Trade and other receivables
Trade receivables are measured on initial
recognition at fair
value and are subsequently measured at amortised
cost using the
effective interest rate method, less any allowance
for impairment.
Trade receivables are generally due for settlement
within 30
days. Impairment of trade receivables is continually
reviewed
and those that are considered to be uncollectible
are written
off by reducing the carrying amount directly. An
allowance account
is used when there is objective evidence that the
Group will
not be able to collect all amounts due according to
the original
contractual terms. Factors considered by the Group
in making
this determination include known significant
financial difficulties
of the debtor, review of financial information and
significant
delinquency in making contractual payments to the
Group.
The impairment allowance is set equal to the
difference between
the carrying amount of the receivable and the
present value of
estimated future cash flows, discounted at the
original effective
interest rate. Where receivables are short-term
discounting is
not applied in determining the allowance.
The amount of the impairment loss is recognised in
the profit
and loss within other expenses. When a trade
receivable for which
an impairment allowance had been recognised becomes
uncollectible
in a subsequent period, it is written off against
the allowance
account. Subsequent recoveries of amounts previously
written
off are credited against other expenses in the
profit and loss.
(h) Government grants
An unconditional government grant is recognised in
profit or
loss as other income when the grant becomes
receivable. Grants
that compensate the Group for expenses incurred are
recognised
in profit or loss as other income on a systematic
basis in the
same period in which the expenses are recognised.
Research and development tax incentives are
recognised in the
statement of profit or loss when received or when
the amount
to be received can be reliably estimated.
(i) Employee Benefits
Short-term benefits
Short-term employee benefit obligations are measured
on an undiscounted
basis and are expensed as the related service is
provided. A liability
is recognised for the amount expected to be paid under
short-term
cash bonus or profit-sharing plans if the Group has a
present
legal or constructive obligation to pay this amount as
a result
of past service provided by the employee and the
obligation can
be estimated reliably.
Other long-term employee benefits
Provision is made for the liability due to employee
benefits arising
from services rendered by employees to the reporting
date. Employee
benefits expected to be settled within one year
together with
benefits arising out of wages and salaries, sick leave
and annual
leave which will be settled after one year, have been
measured
at their nominal amount. Other employee benefits
payable later
than one year have been measured at the present value
of the estimated
future cash outflows to be made for those benefits.
Contributions
made to defined employee superannuation funds are
charged as expenses
when incurred.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(j) Financial Instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when
the Group becomes a party to the contractual provisions of the
financial instrument. Financial instruments (except for trade
receivables) are measured initially at fair value adjusted by
transaction costs, except for those carried at 'fair value through
profit or loss', in which case transaction costs are expensed
to profit or loss. Where available, quoted prices in an active
market are used to determine the fair value. In other circumstances,
valuation techniques are adopted. Subsequent measurement of financial
assets and financial liabilities are described below.
Trade receivables are initially measured at the transaction price
if the receivables do not contain a significant financing component
in accordance with AASB 15 Revenue from Contracts with Customers.
Financial assets are derecognised when the contractual rights
to the cash flows from the financial asset expire, or when the
financial asset and all substantial risks and rewards are transferred.
A financial liability is derecognised when it is extinguished,
discharged, cancelled or expired.
Classification and measurement
Financial assets
Except for those trade receivables that do not contain a significant
financing component and are measured at the transaction price
in accordance with AASB 15 Revenue from Contracts with Customers
, all financial assets are initially measured at fair value adjusted
for transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other
than those designated and effective as hedging instruments are
classified into the following categories upon initial recognition:
-- amortised cost;
-- fair value through other comprehensive income (FVOCI); and
-- fair value through profit or loss (FVPL).
Classifications are determined by both:
-- the contractual cash flow characteristics of the financial
assets; and
-- the Group's business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets
meet with the following conditions (and are not designated as
FVPL);
-- they are held within a business model whose objective is to
hold the financial assets and collect its contractual cash flows;
and
the contractual terms of the financial assets give rise to cash
flows that are solely payments of principal and interest on the
principal amount outstanding.
After initial recognition, these are measured at amortised cost
using the effective interest method. Discounting is omitted where
the effect of discounting is immaterial. The Group's cash and
cash equivalents, trade and most other receivables fall into
this category of financial instruments.
Financial assets at fair value through other comprehensive income
The Group measures debt instruments at fair value through OCI
if both of the following conditions are met:
* the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding; and
* the financial asset is held within a business model
with the objective of both holding to collect
contractual cash flows and selling the financial
asset.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(j) Financial Instruments (continued)
For debt instruments at fair value through OCI, interest income,
foreign exchange revaluation and impairment losses or reversals
are recognised in the statement of profit or loss and computed
in the same manner as for financial assets measured at amortised
cost. The remaining fair value changes are recognised in OCI.
Upon initial recognition, the Group can elect to classify irrevocably
its equity investments as equity instruments designated at fair
value through OCI when they meet the definition of equity under
AASB 132 Financial Instruments: Presentation and are not held
for trading.
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include
financial assets held for trading, financial assets designated
upon initial recognition at fair value through profit or loss
or financial assets mandatorily required to be measured at fair
value. Financial assets are classified as held for trading if
they are acquired for the purpose of selling or repurchasing
in the near term.
Financial liabilities
Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or loss,
loans and borrowings, payables or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.
Financial liabilities are initially measured at fair value, and,
where applicable, adjusted for transaction costs unless the Group
designated a financial liability at fair value through profit
or loss.
Subsequently, financial liabilities are measured at amortised
cost using the effective interest method except for derivatives
and financial liabilities designated at FVPL, which are carried
subsequently at fair value with gains or losses recognised in
profit or loss.
All interest-related charges and, if applicable, gains and losses
arising on changes in fair value are recognised in profit or
loss.
(k) Trade and other payables
Trade payables and other payables are carried at amortised
cost
and represent liabilities for goods and services provided to
the Group prior to the end of the financial period that are
unpaid
and arise when the Group becomes obliged to make future
payments
in respect of the purchase of these goods and services.
Trade
and other payables are presented as current liabilities
unless
payment is not due within 12 months.
(l) Earnings Per CDI
Basic earnings per CDI
Basic earnings per CDI is determined by dividing the
profit or
loss attributable to ordinary shareholders of the
Company, by
the weighted average number of CDIs outstanding during
the period,
adjusted for bonus elements in CDIs issued during the
period.
Diluted earnings per CDI
Diluted earnings per CDI adjusts the figure used in the
determination
of basic earnings per CDI to take into account the after
income
tax effect of interest and other financial costs
associated with
dilutive potential CDIs and the weighted average number
of CDIs
assumed to have been issued for no consideration in
relation
to dilutive potential CDIs, which comprise convertible
notes
and CDI options granted.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(m) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction
or production of assets that necessarily take a substantial period
of time to prepare for their intended use or sale, are added
to the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale.
All other borrowing costs are recognised in as expenses in the
period in which they are incurred.
(n) Provisions
A provision is recognised if, as a result of a past event, the
Group has a present legal or constructive obligation that can
be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market assessments
of the time value of money and, when appropriate, the risks specific
to the liability.
(o) Segment reporting
An operating segment is a component of the Group that engages
in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions
with any of the Group's other components. Operating segments'
results are reviewed by the Group's Executive Chairman to make
decisions about resources to be allocated to the segment and
assess its performance, and for which discrete financial information
is available.
(p) Principles of Consolidation
The consolidated financial statements incorporate all of the
assets, liabilities and results of the parent European Metals
Holdings Limited and all of the subsidiaries. Subsidiaries are
entities the parent controls. The parent controls an entity when
it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those
returns through its power over the entity. A list of the subsidiaries
is provided in Note 22.
The assets, liabilities and results of all subsidiaries are fully
consolidated into the financial statements of the Group from
the date on which control is obtained by the Group. The consolidation
of a subsidiary is discontinued from the date that control ceases.
Intercompany transactions, balances and unrealised gains or losses
on transactions between Group entities are fully eliminated on
consolidation. Accounting policies of subsidiaries have been
changed and adjustments made where necessary to ensure uniformity
of the accounting policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or
indirectly, to the Group are presented as "non-controlling interests".
The Group initially recognises non-controlling interests that
are present ownership interests in subsidiaries and are entitled
to a proportionate share of the subsidiary's net assets on liquidation
at either fair value or at the non-controlling interests' proportionate
share of the subsidiary's net assets. Subsequent to initial recognition,
non-controlling interests are attributed their share of profit
or loss and each component of other comprehensive income. Non-controlling
interests are shown separately within the equity section of the
statement of financial position and statement of comprehensive
income.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(q) CDI based payments
The grant date fair value of CDI-based payment awards granted
to employees is recognised as an employee expense, with a corresponding
increase in equity, over the period that the employees unconditionally
become entitled to the awards. The amount recognised as an expense
is adjusted to reflect the number of awards for which the related
service and non-market vesting conditions are expected to be
met, such that the amount ultimately recognised as an expense
is based on the number of awards that do not meet the related
service and non-market performance conditions at the vesting
date. For CDI-based payment awards with non-vesting conditions,
the grant date fair value of the CDI-based payment is measured
to reflect such conditions and there is no true-up for differences
between expected and actual outcomes.
Loan CDIs are treated similar to options and value is an estimate
calculated using an appropriate mathematical formula based on
Black-Scholes option pricing model. The choice of models and
the resultant Loan CDI value require assumptions to be made in
relation to the likelihood and timing of the vesting of the Loan
CDIs and the value and volatility of the price of the underlying
shares.
(r) Foreign Currency Transactions and Balances
Functional and presentation currency
The functional currency of each of the Group's entities is measured
using the currency of the primary economic environment in which
that entity operates. The consolidated financial statements are
presented in Australian dollars which is the parent entity's
functional and presentation currency.
Transaction and balances
Foreign currency transactions are translated into functional
currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at
the year-end exchange rate. Non-monetary items measured at historical
cost continue to be carried at the exchange rate at the date
of the transaction. Non-monetary items measured at fair value
are reported at the exchange rate at the date when fair values
were determined.
Exchange differences arising on the translation of monetary items
are recognised in Profit or Loss, except where deferred in equity
as a qualifying cash flow or net investment hedge. Exchange differences
arising on the translation of non-monetary items are recognised
directly in equity to the extent that the gain or loss is directly
recognised in other comprehensive income; otherwise the exchange
difference is recognised in Profit or Loss.
Group companies
The financial results and position of foreign operations whose
functional currency is different from the Group's presentation
currency are translated as follows:
* Assets and liabilities are translated at year end
exchange rates prevailing at the end of the reporting
period;
* Income and expenses are translated at average
exchange rates for the period; and
* Retained earnings are translated at the exchange
rates prevailing at the date of the transaction.
* Exchange differences arising on translation of
foreign operations recognised in the other
comprehensive income and included in the foreign
currency translation reserve in the Statement of
Financial Position. These differences are
reclassified into Profit or Loss in the period in
which the operation is disposed.
(s) Issued capital
CDIs are classified as equity. Incremental costs directly attributable
to the issue of new CDIs or options are shown in equity as a
deduction, net of tax, from the proceeds. Incremental costs directly
attributable to the issue of new CDIs or options for the acquisition
of a new business are not included in the cost of acquisition
as part of the purchase consideration.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
(t) Investments in associates
Associates are entities over which the consolidated entity
has
significant influence but not control or joint control.
Investments
in associates are accounted for using the equity method.
Under
the equity method, the share of the profits or losses of
the associate
is recognised in profit or loss and the share of the
movements
in equity is recognised in other comprehensive income.
Investments
in associates are carried in the statement of financial
position
at cost plus post-acquisition changes in the consolidated
entity's
share of net assets of the associate. Goodwill relating to
the
associate is included in the carrying amount of the
investment
and is neither amortised nor individually tested for
impairment.
Dividends received or receivable from associates reduce the
carrying
amount of the investment.
When the consolidated entity's share of losses in an
associate
equals or exceeds its interest in the associate, including
any
unsecured long-term receivables, the consolidated entity
does
not recognise further losses, unless it has incurred
obligations
or made payments on behalf of the associate.
The consolidated entity discontinues the use of the equity
method
upon the loss of significant influence over the associate
and
recognises any retained investment at its fair value. Any
difference
between the associate's carrying amount, fair value of the
retained
investment and proceeds from disposal is recognised in
profit
or loss.
(u) Leases
At inception of a contract, the Group assesses if the contract
contains a lease or is a lease. If there is a lease present, a
right-of-use asset and a corresponding lease liability are
recognised by the Group where the Group is a lessee. However, all
contracts that are classified as short-term leases (i.e. a lease
with a remaining lease term of 12 months or less) and leases of
low-value assets are recognised as an operating expense on a
straight-line basis over the term of the lease.
Initially the lease liability is measured at the present value
of the lease payments still to be paid at the commencement date.
The lease payments are discounted at the interest rate implicit in
the lease. If this rate cannot be readily determined, the Group
uses the incremental borrowing rate.
Lease payments included in the measurement of the lease
liability are as follows:
-- fixed lease payments less any lease incentives;
-- variable lease payments that depend on an index or rate,
initially measured using the index or rate at the commencement
date;
-- the amount expected to be payable by the lessee under residual value guarantees;
-- the exercise price of purchase options, if the lessee is
reasonably certain to exercise the options;
-- lease payments under extension options, if the lessee is
reasonably certain to exercise the options; and
-- payments of penalties for terminating the lease, if the lease
term reflects the exercise of an option to terminate the lease.
The right-of-use assets comprise the initial measurement of the
corresponding lease liability, any lease payments made at or before
the commencement date and any initial direct costs. The subsequent
measurement of the right-of-use assets is at cost less accumulated
depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or
useful life of the underlying asset, whichever is the shortest.
Where a lease transfers ownership of the underlying asset or the
cost of the right-of-use asset reflects that the Group anticipates
to exercise a purchase option, the specific asset is depreciated
over the useful life of the underlying asset.
NOTE 2: DETERMINATION OF FAIR VALUES
A number of the Group's accounting policies and disclosures require
the determination of fair value, for both financial and non-financial
assets and liabilities. Fair values have been determined for measurement
and / or disclosure purposes based on the following methods. When
applicable, further information about the assumptions made in determining
fair values is disclosed in the notes specific to that asset or liability.
CDI-based payment transactions
The fair value of the employee CDI options is measured using the Black-Scholes
formula. Measurement inputs include CDI price on measurement date,
exercise price of the instrument, expected volatility (based on weighted
average historic volatility adjusted for changes expected due to publicly
available information), weighted average expected life of the instruments
(based on historical experience and general option holder behaviour),
expected dividends, and the risk-free interest rate (based on government
bonds). Service and non-market performance conditions attached to
the transactions are not taken into account in determining the fair
value.
The fair value of consultant CDI options and warrants is measured
at the fee of the services received, except for when the fair value
of the services cannot be estimated reliably, the fair value is measured
using the Black-Scholes formula.
The fair value of performance rights granted to Directors is measured
using the share price at grant date. Service and non-market performance
conditions attached to the transactions are not taken into account
in determining the fair value.
Note 3: INCOME TAX 30 June 30 June
2021 2020
(a) Income tax expense $ $
Current tax - -
Deferred tax - -
------------ ------------
- -
============ ============
Deferred income tax expense included in
income tax expense comprises:
(Increase) in deferred tax assets - -
Increase in deferred tax liabilities* - -
------------ ------------
- -
============ ============
* Any capital gain on disposal of shares in Geomet held by EMH UK
is tax-exempt under the current UK legislation (Schedule 7AC of the
Taxation of Chargeable Gains Act 1992). For this reason, no deferred
tax liability has been recognised as at 30 June 2020.
(b) Reconciliation of income tax expense
to prima facie tax payable
Net (loss)/profit before tax (3,962,450) 2,813,807
Prima facie tax on operating loss at 26%
(2020: 27.5%) (1,030,237) 773,797
Add / (Less): Non-deductible items
Non-deductible expenses/(Non-assessable
income) 484,048 (1,035,056)
Current year tax loss not recognised 546,189 261,259
Income tax attributable to operating profit/loss - -
------------ ------------
The applicable weighted average effective
tax rates are as follows: Nil% Nil%
Balance of franking account at year end Nil Nil
a.
b. Deferred tax assets/(liabilities)
Tax losses 1,124,435 1,080,484
Other receivables and other assets (68,059) (1,406)
Unrealised foreign exchange gain - (12,380)
Accruals 9,838 53,784
Business related costs 466,341 155
Right-of-use assets (35,392) -
Lease liabilities 25,452 -
Provisions 25,962 40,296
------------ ------------
Unrecognised deferred tax asset 1,548,577 1,160,933
Set-off deferred tax liabilities - -
Net deferred tax assets 1,548,577 1,160,933
------------ ------------
Tax losses
Unused tax losses for which no deferred
tax asset has been recognised 4,324,751 3,929,089
------------ ------------
Note 3: INCOME TAX (continued)
The Company is registered in the British Virgin Islands (BVI)
and the Company is a tax resident of Australia. The unused tax
losses are representative of losses incurred in Australia.
There are currently no withholding taxes or exchange control
regulations in the BVI applicable to the Company. The Company is
subject to UK taxation regulations in respect of European Metals
(UK) Limited.
NOTE 4: RELATED PARTY TRANSACTIONS
Transactions between related parties are at arms' length and on
normal commercial terms and conditions no more favourable than
those available to other parties unless otherwise stated.
During the year, the Company received $1,102,953 (2020:
$183,824) from its associate, Geomet s.r.o for providing services
of managing the Cinovec project development. The Company's
Directors also received remuneration from Geomet s.r.o in arm's
length transaction during the financial year.
Purchases from related parties are made on terms equivalent to
those that prevail in arm's length transactions. From January 2021,
the Company received accounting and bookkeeping services of $56,256
plus GST from Everest Corporate, a company controlled by the spouse
of Executive Chairman, Keith Coughlan. Amount payable to Everest
Corporate as at 30 June 2021 was $12,528.
From 1 May 2021, the Company received rental income of $24,515
plus GST from Everest Corporate for subletting the office in West
Perth.
During the 2021 financial year, the Company paid $4,900 plus GST
for office rental to Wild West Enterprises Pty Ltd, an entity
controlled by former director, David Reeves (2020: $15,600).
There were no other transactions with related parties during the
financial year.
NOTE 5: KEY MANAGEMENT PERSONNEL COMPENSATION
Refer to the Remuneration Report contained in the Directors'
Report for details of the remuneration paid or payable to each
member of the Group's key management personnel (KMP) for the year
ended 30 June 2021 and 30 June 2020.
The totals of remuneration paid to KMP during the year are as
follows:
2021 2020
$ $
Short-term benefits 537,115 445,513
Post-employment benefits 27,345 22,800
Long service leave 17,825 26,663
Equity settled - 29,802
582,285 524,778
======== ========
Loans to Key Management Personnel
There were no loans to Key Management Personnel during the
financial year (2020: nil). The total value of loan CDIs at 30 June
2021 amounted to $1,442,666. 1,650,000 loan CDIs were issued to
Directors with fair value of $1,149,653 in prior years of which
300,000 CDIs were repaid in the current year. Of the 1,500,000 loan
CDIs that were issued to employees, 400,000 loan CDIs were
forfeited in prior year. The fair value of the remaining 1,100,000
loan CDIs was $293,013 at 30 June 2021 of which 100,000 CDIs were
repaid in the current financial year.
NOTE 6: REVENUE 2021 2020
$ $
Service revenue - Cinovec project development 1,102,953 183,824
================ =========
NOTE 7: AUDITOR'S REMUNERATION 2021 2020
$ $
Auditor's services
Audit and review of financial report 39,000 46,525
- Under provision in prior year 4,526 7,925
---------------- ---------
43,526 54,450
================ =========
NOTE 8: BASIC AND DILUTED LOSS PER CDI
2021 2020
$ $
Loss per share for income from continuing operations
Loss attributable to owners ($) (3,962,450) (4,608,729)
---------------- -------------
Basic loss per CDI (cents) (2.39) (3.05)
Diluted loss per CDI (cents) (2.39) (3.05)
Earnings per share for gain from discontinued
operations
Profit attributable to owners - 7,422,536
---------------- -------------
Basic earnings per CDI (cents) - 4.92
Diluted earnings per CDI (cents) - 4.92
Weighted average number of CDIs
Weighted average number of CDIs used in calculating
earnings per share 166,032,891 150,957,617
Adjustments for calculation of diluted earnings
per share:
CDIs under options with diluted effect - 51,370
---------------- -------------
Weighted average number of CDI used in calculating
diluted loss per share 166,032,891 151,008,987
================ =============
NOTE 9: CASH AND CASH EQUIVALENTS 2021 2020
$ $
Cash at bank 2,880,673 58,951
Term deposit 5,000,000 -
--------- ------
Total cash and cash equivalents in the Statement
of Cash Flows 7,880,673 58,951
========= ======
NOTE 10: OTHER ASSETS 2021 2020
$ $
Current
Deposit 6,345 -
Prepayments 250,279 5,110
Unbilled revenue 80,572 -
------- -----
337,196 5,110
======= =====
Non-Current
Bank guarantee on office lease 47,392 -
47,392 -
======
NOTE 11: OFFICE LEASE 2021 2020
$ $
(a) Right-of-use asset
Right-of-use asset at cost 144,129 -
Less accumulated amortisation (8,007) -
136,122 -
======= ====
Reconciliation of Right-of-use asset:
Opening balance - -
Additions 144,129 -
Amortisation (8,007) -
-------
Closing balance 136,122 -
=======
(b) Lease liability
Opening balance -
Additions 144,129 -
Interest expense 1,155 -
Payments (47,391) -
--------
Closing balance 97,893 -
========
Current 6,038 -
Non-current 91,855 -
------
Closing balance 97,893 -
======
The Group's West Perth office is leased under a lease agreement
assigned to the Group commencing on 1 May 2021 for a period of
three years with a three-year renewal option and rental of $50,000
plus GST per year payable plus outgoings. The lease liability is
measured at the present value of the remaining lease payments,
discounted using the Group's incremental borrowing rate as at 1 May
2021. The Group's incremental borrowing rate is the rate at which a
similar borrowing could be obtained from an independent creditor
under comparable terms and conditions. The weighted-average rate
applied was 5%.
NOTE 12: INVESTMENT IN ASSOCIATE 2021 2020
$ $
On initial recognition at fair value - 18,476,480
Opening balance 18,966,531 -
Share of (loss)/profit - associate (1,263,167) 490,051
Share of post-acquisition movement in reserve (242,337) -
----------- ----------
17,461,027 18,966,531
=========== ==========
Effective 28 April 2020, Geomet was equity accounted (ie 49% of
share of the profit or loss of the investee after the date of
acquisition) for as Investment in Associate (Note 20). The Company
was appointed to provide services of managing the Cinovec project
development.
Summarised statement of financial position 2021 2020
$ $
Current assets 38,660,683 47,280,678
Non-current assets 17,091,493 9,497,797
----------- -----------
Total assets 55,752,176 56,778,475
----------- -----------
Current liabilities 755,929 132,262
Non-current liabilities - -
----------- -----------
Total liabilities 755,929 132,262
----------- -----------
Net assets 54,996,247 56,646,213
----------- -----------
Summarised statement of profit or loss and other
comprehensive income*
Revenue 17,422 2,709
Expenses (2,594,480) (1,002,813)
----------- -----------
Loss for the year (2,577,058) (1,000,104)
----------- -----------
* The results for FY2020 is from 28 April 2020
- 30 June 2020.
NOTE 13: TRADE AND OTHER PAYABLES 2021 2020
$ $
Trade payables 295,612 471,604
Accrued expenses and other liabilities 125,800 361,076
Advance fee received 18,386 91,912
------- -------
439,798 924,592
======= =======
Payables are normally due for payment within 30
days.
NOTE 14: PROVISIONS 2021 2020
$ $
Provision for annual leave 55,362 27,955
Provision for long service leave 44,488 26,663
99,850 54,618
======= =======
NOTE 15: ISSUED CAPITAL 2021 2020
$ $
(a) Issued and paid up capital
175,119,485 (30 June 2020: 154,703,973
CDIs) 34,087,930 23,954,204
-----------
Total issued capital 34,087,930 23,954,204
=========== ==========
(b) Movements in CDIs
Date Number $
Balance at the beginning of the
year 1 July 2019 146,642,227 22,074,314
CDI issue under Placement @ A$0.324
(GBP0.18) per CDI 29 August 2019 4,166,666 1,349,831
CDI issue under Placement @ A$0.294 23 January
(GBP0.1525) per CDI 2020 2,295,080 675,074
30 January
Forfeiture of CDIs 2020 (1,400,000) -
Conversion of A Class Performance
Shares 30 April 2020 1,000,000 -
Conversion of B Class Performance
Shares 30 April 2020 1,000,000 -
Conversion of A Class Performance
Shares 4 June 2020 1,000,000 -
Capital raising cost - (145,015)
----------- ----------
Balance at the end of the year 30 June 2020 154,703,973 23,954,204
=========== ==========
Date Number $
Balance at the beginning of the
year 1 July 2020 154,703,973 23,954,204
CDI issue under the Funding Facility
Agreement @ A$0.238 per CDI 17 July 2020 1,049,825 250,000
Exercise of unlisted options @
16.6c 5 August 2020 750,000 124,500
Exercise of unlisted options @
16.6c 18 August 2020 3,000,000 498,000
CDI issue under the Funding Facility
Agreement @ A$0.27 per CDI 27 August 2020 927,300 250,000
Exercise of unlisted options @ 17 September
25c 2020 50,000 12,500
CDI issue under the Funding Facility
Agreement @ A$0.34 per CDI 23 October 2020 723,323 250,000
CDI issue under the Funding Facility 13 November
Agreement @ A$0.34 per CDI 2020 719,821 250,000
Exercise of unquoted warrants @ 25 November
GBP0.20 (36.3c) 2020 89,375 32,483
Exercise of unlisted options @ 25 November
35c 2020 200,000 70,000
Exercise of unlisted options @ 21 December
40.18c 2020 100,000 40,180
Exercise of unlisted options @ 21 December
31.11c 2020 100,000 31,110
Exercise of unlisted options @ 21 December
25c 2020 200,000 50,000
CDI issue under the Funding Facility
Agreement @ A$0.683 per CDI 6 January 2021 1,463,734 1,000,000
Issue of CDIs in lieu of consultant
options 18 January 2021 1,613,708 -
Share Placement @ A$1.10 per CDI 8 February 2021 6,454,546 7,100,000
Issue of CDIs in lieu of consultant
options cancelled 4 March 2021 2,435,880 -
Issue of CDIs for services provided
@A$1.10 per CDI 4 March 2021 300,000 330,000
Repayment of Loan CDIs @ A$0.485 15,19,22 March
per CDI 2021 - 48,480
Repayment of Loan CDIs @ A$0.743
per CDI 18 March 2021 - 222,900
Exercise of unlisted options @
42c 10 May 2021 238,000 99,960
Capital raising cost - (526,387)
----------- ----------
Balance at the end of the year 30 June 2021 175,119,485 34,087,930
=========== ==========
NOTE 15: ISSUED CAPITAL (CONTINUED)
(c) Capital risk management
The Group's objectives when managing capital is to safeguard its
ability to continue as a going concern, so that it may continue to
provide returns for shareholders and benefits for other
stakeholders.
The capital structure of the Group consists of equity comprising
issued capital, reserves and accumulated losses.
The Group does not have ready access to credit facilities, with
the primary source of funding being equity raisings. Therefore, the
focus of the Group's capital risk management is to maintain
sufficient current working capital position to meet the
requirements of the Group to meet exploration programs and
corporate overheads. The Group's strategy is to ensure appropriate
liquidity is maintained to meet anticipated operating requirements,
with a view to initiating appropriate capital raisings as
required.
The working capital position of the Group at 30 June is as
follows:
2021 2020
$ $
Cash and cash equivalents 7,880,673 58,951
GST and other receivables 53,046 17,252
Other assets 337,196 5,110
Trade and other payables (439,798) (924,592)
Provisions (99,850) (54,618)
Lease liability (6,038) -
----------- -----------
Working capital surplus/(deficit) 7,725,229 (897,897)
=========== ===========
The Group is not subject to any externally imposed capital
requirements.
NOTE 16: RESERVES 2021 2020
$ $
Option and Warrant Reserve 4,306,491 3,036,662
Performance Shares Reserve 3,471,444 3,471,444
Loan CDIs Reserve 1,442,667 1,442,667
Foreign Currency Translation Reserve (467,879) (235,186)
--------- -----------
Total Reserves 8,752,723 7,715,587
========= ===========
Option and Warrant Reserve 2021 2020
$ $
Balance at the beginning of the financial year 3,036,662 597,470
Equity based payment expense (Note 17) 914,829 2,439,192
Equity based payment as capital raising cost 355,000 -
----------- -----------
Balance at the end of the financial year 4,306,491 3,036,662
=========== ===========
NOTE 16: RESERVES (CONTINUED)
The following options and warrants existed as at 30 June 2020
and 30 June 2021:
Balance Exercised Balance
Expiry at 30 June Issued during during the at 30 June
date 2020 the year year Cancelled 2021
Options @ 16.6cents 17 Aug 20 3,750,000 - (3,750,000) - -
Options @ 35cents 1 Jan 21 200,000 - (200,000) - -
Options @ 40.18cents 1 June 21 100,000 - (100,000) - -
Options @ 31.11cents 1 Dec 21 100,000 - (100,000) - -
Options @ 25cents 31 Dec 22 15,000,000 - - (5,000,000) 10,000,000
Options @ 25cents 15 June 22 - 250,000 (250,000) - -
Options @ 42cents 23 Oct 23 - 2,500,000 (238,000) - 2,262,000
Options @ 45cents 23 Oct 23 - 1,000,000 - - 1,000,000
Warrants @ 20pence 22 Nov 21 116,875 - (89,375) - 27,500
Warrants @ $1.10 31 Jan 23 - 1,200,000 - - 1,200,000
----------- ------------- ----------- ----------- -------------
Total 19,266,875 4,950,000 (4,727,375) (5,000,000) 14,489,500
=========== ============= =========== =========== =============
-- On 17 July 2020, the Company issued 250,000 unlisted options
exercisable at $0.25 on or before 15 June 2022 to a consultant in
accordance with the consultancy agreement dated 15 June 2020. The
unlisted options were valued using a Black & Scholes option
pricing model. The share-based expense of $36,331 was recognised in
the statement of profit or loss and other comprehensive income for
the year. These options were exercised during the year.
-- On 23 October 2020, 1,000,000 unlisted options exercisable at
45 cents on or before 23 October 2023 were issued to consultants.
On 23 October 2020, 2,500,000 unlisted options exercisable at 42
cents on or before 23 October 2023 were issued to consultants. The
unlisted options were valued using a Black & Scholes option
pricing model. The share-based expense of $878,498 was recognised
in the statement of profit or loss and other comprehensive income
for the year.
-- On 4 March 2021, the Company issued 1,200,000 unlisted
warrants exercisable at $1.10 on or before 31 January 2023 to an
investor relations consultant pursuant to raising $7,100,000 in the
Share Placement on 5 February 2021. The warrants represent fee
based on 5% of the capital raised. The share-based expense of
$355,000 was recognised in equity as capital raising costs.
-- 4,727,375 unlisted options were exercised during the year as detailed in the table above.
-- 5,000,000 unlisted options were cancelled during the year and
the Company issued 4,049,588 CDIs in lieu of these options in
accordance with the terms and conditions of the consultant options
held by European Energy and Infrastructure Group Limited. The CDIs
have been issued for nil consideration per the terms and conditions
of the options. As the fair value of the replacement CDIs was lower
than the fair value of the cancelled options, no additional expense
was recognized in accordance with AASB 2 Share-based Payment.
Performance Share Reserve
The Performance Share reserve records the fair value of the
Performance Shares issued. Performance shares on issue at 30 June
2020 and 30 June 2021 is as follows:
Issue date Expiry date Number on
issue
--------- ------------- ------------- ----------
A Class 18 Dec 2018 18 Dec 2021 3,000,000
NOTE 16: RESERVES (CONTINUED)
Performance Shares Reserve (continued)
Date Number $
Balance at the beginning of the
year 1 July 2019 10,000,000 3,471,444
B Class Performance Shares Lapsed(1) 29 Nov 2019 (4,000,000) -
Conversion of A Class Performance 30 April 2020 (1,000,000) -
Shares
Conversion of B Class Performance 30 April 2020 (1,000,000) -
Shares
Conversion of A Class Performance 4 June 2020 (1,000,000) -
Shares
------------- -----------
Balance at the end of the year 30 June 2020 3,000,000 3,471,444
============= ===========
A Class Performance Shares
Balance at the beginning of the
year 1 July 2020 3,000,000 3,471,444
------------- -----------
Balance at the end of the year 30 June 2021 3,000,000 3,471,444
============= ===========
(1) The milestone was achieved prior to B Class Performance
Share expiring.
No performance shares were issued during the year (30 June 2020:
nil). B Class performance shares lapsed during the financial year
ended 30 June 2020. During the financial year ended 30 June 2020,
under the applicable terms and conditions, the performance shares
convert into new CDIs in accordance with the following
milestones:
2,000,000 A Class Performance Shares
1. 1,000,000 of the performance shares convert into Shares and
an equivalent number of CDIs upon the Company's Mineral Resource at
Cinovec South and Cinovec Main being entered in the State register;
and
2. 1,000,000 of the performance shares convert into Shares and
an equivalent number of CDIs upon the issuance of the preliminary
mining licenses relating to the Cinovec Project.
1,000,000 B Class Performance Shares
1. 1,000,000 of the performance shares convert into Shares and
an equivalent number of CDIs upon the issuance of the preliminary
mining licenses relating to the Cinovec Project. The remaining
4,000,000 B Class Performance Shares lapsed during the year.
The terms of the Performance Shares are as follows:
The remaining 3,000,000 A Class Performance Shares will convert
in accordance with the below:
(i) 3,000,000 A Class Performance Shares will convert into
Shares and an equivalent number of CDIs upon the completing of a
definitive feasibility study (DFS). For clarity, the DFS must be:
(i) of a standard suitable to be submitted to a financial
institution as the basis for lending of funds for the development
and operation of mining activities contemplated in the study; (ii)
capable of supporting a decision to mine on the Permits; and (iii)
completed to an accuracy of +/- 15% with respect to operating and
capital costs and display a pre-tax net present value of not less
than US$250,000,000. The Performance Shares shall convert into the
number of Shares and equivalent number of CDIs equal to 3,000,000
and divided by the greater of: (A) $0.50 per CDI; and (B) the
volume weighted average price of CDIs (expressed as a decimal of
$1.00) as calculated over the 5 ASX trading days prior to date of
receipt of the completed DFS, (together the Milestones and each a
Milestone). For the avoidance of doubt, the number of Shares and
equivalent number of CDIs which will be issued on conversion of the
B Class Performance Shares and A Class Performance Shares will not
exceed a ratio of 1 for 1.
(ii) If the Milestone is not achieved or the Change of Control
Event does not occur by the required date, then each Performance
Share held by a Holder will be automatically redeemed by the
Company for the sum of $0.000001 within 10 ASX trading days of
non-satisfaction of the Milestone. $2,671,444 has been attributed
to the Performance Shares.
NOTE 16: RESERVES (CONTINUED)
Loan CDIs Reserve
Employee securities incentive plan
In prior years, remuneration in the form of Employee Securities
Incentive Plan were issued to the Directors and employees to
attract, motivate and retain such persons and to provide them with
an incentive to deliver growth and value to shareholders.
The Loan CDIs reserve records the fair value of the Loan CDIs
issued.
The Loan CDIs represent an option arrangement. Loan CDIs vested
immediately. The key terms of the Employee Share Plan and of each
limited recourse loan provided under the Plan are as follows:
i. The total loan equal to issue price multiplied by the number
of Plan CDIs applied for ("Advance"), which shall be deemed to have
been draw down at Settlement upon issued of the Loan Shares.
ii. The Loan shall be interest free. However, if the advance is
not repaid on or before the Repayment date, the Advance will accrue
interest at the rate disclosed in the Plan from the Business Day
after the Repayment Date until the date the Advance is repaid in
full.
iii. All or part of the loan may be repaid prior to the Advance repayment Date.
Repayment date
iv. Notwithstanding paragraph iii. above, ("the borrower") may
repay all or part of the Advance at any time before the repayment
date i.e. The repayment date for 1,650,000 Director CDIs - 15 years
after the date of loan advance and the repayment date for 1,500,000
Employee CDIs - 7 years after the date of loan advice.
v. The Loan is repayable on the earlier of:
(a) The repayment date;
(b) The plan CDIs being sold;
(c) The borrower becoming insolvent;
(d) The borrower ceasing to be employed by the Company; and
(e) The plan CDIs being acquired by a third party by way of an
amalgamation, arrangement or formal takeover bid for not less than
all the outstanding CDIs.
Loan Forgiveness
vi. The Board may, in its sole discretion, waive the right to
repayment of all or any part of the outstanding balance of an
Advance where:
(i) The borrower dies or becomes permanently disabled; or
(ii) The Board otherwise determines that such waiver is appropriate
vii. Where the Board waives repayment of the Advance in
accordance with clause 6(a), the Advance is deemed to have been
repaid in full for the purposes of the Plan in this agreement.
Sale of loan CDIs
i. In accordance with the terms of the Plan and the Invitation,
the Loan CDIs cannot be sold, transferred, assigned, charged or
otherwise encumbered with the Plan CDIs except in accordance with
the Plan.
Date Number Amount Expensed
Balance at beginning of
the year 1 July 2019 3,150,000 1,442,667
Loan CDIs cancelled during (1,400,000) -
the year 30 January 2020
------------- -----------------
Balance at end of the year 30 June 2020 1,750,000 1,442,667
============= =================
Balance at beginning of
the year 1 July 2020 1,750,000 1,442,667
Loan CDIs repaid during (400,000) -
the year March 2021
------------- -----------------
Balance at end of the year 30 June 2021 1,350,000 1,442,667
============= =================
NOTE 16: RESERVES (CONTINUED)
Loan CDIs Reserve (continued)
CDIs entitle the holder to participate in dividends and the
proceeds on winding up of the Company in proportion to the number
of shares held. On a show of hands every holder of a CDI present at
a meeting in person or by proxy, is entitled to one vote, and in a
poll each share is entitled to one vote.
The Loan CDIs were issued to the executive members under the
Employee Securities Incentive Plan on 6 June 2018.
Holders of CDIs have the same entitlement benefits of holding
the underlying shares. Each Share in the Company confers upon the
Shareholder:
1. the right to one vote at a meeting of the Shareholders of the
Company or on any Resolution of Shareholders;
2. the right to an equal share in any dividend paid by the Company; and
3. the right to an equal share in the distribution of the
surplus assets of the Company on its liquidation.
Foreign Currency Translation Reserve
The foreign currency translation reserve records exchange
differences arising on translation of foreign controlled
subsidiaries, the Group's share of foreign exchange movement in
Geomet s.r.o. and the effect of the deconsolidation of Geomet
s.r.o.
2021 2020
$ $
Balance at the beginning of the financial year (235,186) 1,287,265
Movement during the year (232,693) (1,582,667)
Derecognition of foreign currency reserve - 60,216
--------- -----------
Balance at the end of the financial year (467,879) (235,186)
========= ===========
NOTE 17: SHARE BASED PAYMENT EXPENSE
Number Weighted
Average
Exercise
Price
Options and warrants outstanding as at 1 July 2019 4,566,875 $0.219
Options granted during the year 15,100,000 $0.250
Options lapsed (400,000) $0.580
-------------- ---------
Options and warrants outstanding as at 30 June 2020 19,266,875 $0.236
============== =========
Options and warrants outstanding as at 1 July 2020 19,266,875 $0.236
Options and warrants granted during the year (i) 4,950,000 $0.582
Options exercised (4,638,000) $0.20
Warrants exercised (89,375) $0.363
Options cancelled (5,000,000) $0.250
-------------- ---------
Options and warrants outstanding as at 30 June 2021 14,489,500 $0.360
============== =========
NOTE 17: SHARE BASED PAYMENT EXPENSE (CONTINUED)
During the year, the Group incurred a share-based payments expense
for a total of $987,490 resulting from the transactions detailed
below.
(i) Share based payments granted during the year:
On 17 July 2020, the Company issued 250,000 unlisted options exercisable
at 25 cents on or before 15 June 2022 to a consultant in accordance
with the consultancy agreement dated 15 June 2020. The unlisted options
vest immediately. The options were valued at $36,331 using a Black
& Scholes option pricing model with the share-based payment recognised
as share-based payment expense in the statement of profit or loss
and other comprehensive income. The key inputs to the models used
were as follows. Expected life of options
Grant date 15 June 2020 (years) 2 Years
Underlying share price
Dividend yield (%) Nil ($) $0.26
Expected volatility Option exercise price
(%) 100% ($) $0.25
Risk-free interest
rate (%) 0.26% Value of option ($) $0.145
On 23 October 2020, 2,500,000 unlisted options exercisable at 42
cents on or before 23 October 2023 were issued to a consultant. The
options vest immediately. The options were valued under the Black
and Scholes at $686,205 as share based payment expense in the
statement of profit or loss and other comprehensive income. The key
inputs to the models used were as follows.
25 September Expected life of options
Grant date 2020 (years) 3 Years
Underlying share price
Dividend yield (%) Nil ($) $0.44
Expected volatility Option exercise price
(%) 100% ($) $0.42
Risk-free interest
rate (%) 0.24% Value of option ($) $0.274
On 23 October 2020, 1,000,000 unlisted options exercisable at 45
cents on or before 23 October 2023 were issued to a consultant. The
options were valued under the Black and Scholes at $256,390 with
the share- based payment expense of $192,293 recognised in the
current year in the statement of profit or loss and other
comprehensive income. The key inputs to the models used were as
follows.
Expected life of options
Grant date 8 October 2020 (years) 3 Years
Underlying share price
Dividend yield (%) Nil ($) $0.43
Expected volatility Option exercise price
(%) 100% ($) $0.45
Risk-free interest
rate (%) 0.15% Value of option ($) $0.256
On 5 March 2021, the Company issued 300,000 CDIs to an advisor
in satisfaction of a $330,000 invoice fee for the provision of
digital marketing services. The $330,000 fee has been expensed over
the length of the service per the Service Agreement. Share- based
payment expense of $72,661 has been recognised in the current year
in the statement of profit or loss and other comprehensive
income.
On 17 December 2020, the shareholders approved the grant of
2,400,000 Performance Rights to Mr Keith Coughlan and 1,200,000
Performance Rights to Mr Richard Pavlik, with the vesting terms as
below:
1. Class A shall vest upon an announcement by the Company to the
ASX stating that the Company has executed an offtake agreement for
at least 25% of the product planned to be produced from the Cinovec
Project.
2. Class B shall vest upon the attainment of Project Finance for
the Cinovec Project.
3. Class C shall vest upon an announcement by the Company to the
ASX stating that the Company has made a Decision to Mine in respect
of the Cinovec Project.
NOTE 17: SHARE BASED PAYMENT EXPENSE (CONTINUED)
(ii) Share based payments granted during the year
(continued):
The Performance Rights will expire three years from the date of
issue, after which the Performance Rights lapse and may no longer
be exercised or converted. These Performance Rights have yet to be
issued as at 30 June 2021.
Number Grant Exercise Term of Share Total fair % vested
granted date price maturity price value
on grant
date
Class 17 Dec
A 1,200,000 20 Nil 3 years $0.87 $1,044,000 Nil
Class 17 Dec
B 1,200,000 20 Nil 3 years $0.87 $1,044,000 Nil
Class 17 Dec
C 1,200,000 20 Nil 3 years $0.87 $1,044,000 Nil
The total fair value of the Performance Rights is expensed when
they vest. The share-based expense of nil was recognized in the
statement of profit or loss and other comprehensive income for the
year. As a t 30 June 2021, management has yet to indicate the
number of these performance rights expected to vest, hence has not
expensed any of the value of these performance rights. Management
shall revise this estimate when subsequent information indicates
that the number of performance rights expected to vest differs from
previous estimate.
During the year, the Company incurred a share-based payments
recognised as capital raising costs of $355,000 resulting from the
transaction below.
On 4 March 2021, the Company issued 1,200,000 unlisted warrants
exercisable at $1.10 on or before 31 January 2023 to an investor
relations consultant pursuant to raising $7,100,000 in the Share
Placement on 5 February 2021. The warrants represent the fee based
on 5% of the capital raised. The share-based expense of $355,000
was recognised in equity as capital raising costs.
Share-based payment arrangements granted in prior years and
existed during the financial year ended 30 June 2021:
1. On 17 August 2015, 3,750,000 unlisted options exercisable at
16.6 cents on or before 17 August 2020 were issued to key
management personnel. These options were exercised during the
year.
2. On 12 July 2019, 200,000 unlisted options exercisable at 35
cents on or before 1 January 2021 were issued to a consultant.
These options were exercised during the year.
3. On 12 July 2019, 100,000 unlisted options exercisable at
40.18 cents on or before 1 June 2021 were issued to a consultant.
These options were exercised during the year.
4. On 6 December 2019, 100,000 unlisted options exercisable at
31.11 cents on or before 1 December 2021 were issued to
consultants. These options were exercised during the year.
5. On 26 March 2020, 15,000,000 unlisted options exercisable at
25 cents on or before 31 December 2022 were granted to consultants.
5,000,000 of these options were cancelled during the year and the
Company issued 4,049,588 CDIs in lieu of these options in
accordance with the terms and conditions of the consultant options
held by European Energy and Infrastructure Group Limited. The CDIs
have been issued for nil consideration per the terms and conditions
of the options.
6. On the 22 November 2018, 116,875 warrants were granted to
brokers as a cost of capital raising. The warrants have an exercise
of 20 pence in line with the capital raise on the 20 November 2018.
Warrants are exercisable on or before 22 November 2021. 89,375
warrants were exercised during the year.
NOTE 17: SHARE BASED PAYMENT EXPENSE (CONTINUED)
Performance share-based payment arrangements granted in prior
years and existed during the financial year ended 30 June 2021:
3,000,000 A Class Performance Shares will convert into Shares
and an equivalent number of CDIs upon the completing of a
definitive feasibility study (DFS). For clarity, the DFS must be:
(i) of a standard suitable to be submitted to a financial
institution as the basis for lending of funds for the development
and operation of mining activities contemplated in the study; (ii)
capable of supporting a decision to mine on the Permits; and (iii)
completed to an accuracy of +/- 15% with respect to operating and
capital costs and display a pre-tax net present value of not less
than US$250,000,000. The A Class Performance Shares shall convert
into the number of Shares and equivalent number of CDIs equal to
3,000,000 multiplied by 0.5 and divided by the greater of: (A)$0.50
per CDI; and (B) the volume weighted average price of CDIs
(expressed as a decimal of $1.00) as calculated over the 5 ASX
trading days prior to date of receipt of the completed DFS. For
avoidance of doubt, the number of Shares and equivalent number of
CDIs which will be issued on conversion of the A Class Performance
Shares will not exceed a ratio of 1 for 1.
If the Milestone is not achieved or the Change of Control Event
does not occur by the required date, then each Performance Share
held by a Holder will be automatically redeemed by the Company for
the sum of $0.000001 within 10 ASX trading days of non-satisfaction
of the Milestone. $2,671,444 has been attributed to the Performance
Shares.
No additional performance shares were granted during the
year.
Loan CDIs granted in prior years and existed during the
financial year ended 30 June 2021:
Number
30 June Repaid during Number
2020 the year 30 June 2021
Director Loan CDIs 1,650,000 (300,000) 1,350,000
Employee Securities Incentive
Plan Loan CDIs 100,000 (100,000) -
--------- ------------- --------------
1,750,000 (400,000) 1,350,000
========= ============= ==============
During the year, 400,000 Loan CDIs were repaid by former
director, David Reeves and the previous executive members when they
resigned. Only 1,350,000 CDIs remained at 30 June 2021.
No loan CDIs were granted during the financial year.
The total fair value of the Loan CDIs was fully expensed in the
statement of profit or loss and other comprehensive income in the
2019 financial year.
A summary of the outstanding Director Loan CDIs at 30 June 2021
and the inputs used in the valuation of the loan CDIs issued to
Directors are as follows:
Loan CDIs Keith Coughlan Richard Pavlik Kiran Morzaria
Issue price $0.725 $0.725 $0.725
Share price at date
of issue $0.70 $0.70 $0.70
Grant date 30 November 30 November 30 November
2017 2017 2017
Expected volatility 143.41% 143.41% 143.41%
Expiry date 30 November 30 November 30 November
2032 2032 2032
Expected dividends Nil Nil Nil
Risk free interest
rate 2.47% 2.47% 2.47%
Value per loan CDI $0.69676 $0.69676 $0.69676
Number of loan CDIs 850,000 300,000 200,000
Total value $592,245 $209,028 $139,352
NOTE 18: CASH FLOW INFORMATION 2021 2020
$ $
Reconciliation of cash flow from operating activities
with (loss)/income after tax:
(Loss)/Income after income tax (3,962,450) 2,813,807
Adjustments for :
Share based payments 987,490 2,439,192
Finance costs 1,155 -
Foreign exchange loss/ (gain) 7,460 (45,018)
Depreciation and amortisation expenses 8,876 1,344
Loss from discontinued operations
to date of disposal - 209,510
Equity accounted of investment
in Geomet s.r.o 1,263,167 (490,051)
Gain on de-consolidation of Geomet
s.r.o - (7,632,046)
Interest in assets and liabilities net of deemed disposal of subsidiary
(Increase)/decrease in other receivables (5,794) 74,928
(Increase)/decrease in other assets (152,139) 18,478
(Decrease)/increase in trade and
other payables (484,794) 715,613
Increase in provisions 45,232 31,485
--------------- ------------
Cash flow used in operating activities (2,291,797) (1,862,758)
=============== ============
(b) Credit standby facilities
The Company had no credit standby facilities as at 30 June 2021
and 2020.
(c) Investing and Financing Activities - Non-Cash
There were no non-cash investing activities during the year.
During the year, the Company issued 1,200,000 warrants, exercise
price of $1.10 per warrant expiring on 31 January 2023, to an
investor relations consultant. The warrants, valued at $355,000 was
included as non-cash capital raising costs in financing
activities.
NOTE 19: OPERATING SEGMENTS
The accounting policies used by the Group in reporting segments
are in accordance with the measurement principles of Australian
Accounting Standards.
The Group has identified its operating segments based on the
internal reports that are provided to the Board of Directors.
According to AASB 8 Operating Segments, two or more operating
segments may be aggregated into a single operating segment if the
segments have similar economic characteristics, and the segments
are similar in each of the following respects:
-- The nature of the products and services;
-- The nature of the production processes;
-- The type or class of customer for their products and services;
-- The methods used to distribute their products or provide their services; and
-- If applicable, the nature of the regulatory environment, for
example; banking, insurance and public utilities.
Effective 28 April 2020, the Group has a 49% interest in Geomet
s.r.o. which is accounted for in accordance with AASB 128
Investment in Associates and Joint Venture. Therefore, the Group
has only one operating segment based on geographical location. The
Australian segment incorporates the services provided to Geomet
s.r.o. in relation to the Cinovec project development along with
head office and treasury function. Consequently, the financial
information for the sole operating segment is identical to the
information presented in these financial reports."
NOTE 20: DECONSOLIDATION OF GEOMET S.R.O
On 28 April 2020, the Company announced that the investment of
EUR29.1 million by CEZ a.s. ("CEZ") for a 51% equity interest in
Geomet, the Company's Czech subsidiary and holder of the Cinovec
licenses, had been completed. The payment of EUR29.1 million, which
has been received into the Geomet account, will see the Cinovec
project fully funded to the decision to construct, paving the way
for Cinovec to become the first European Union producer of battery
grade lithium compounds from a local lithium resource. The payment
of EUR 29.1 million was split into two payments - EUR 12.3m
(A$20.6m) was contributed to Geomet's registered share capital and
EUR 16.8m (A$28.1m) is a monetary contribution to the equity Geomet
outside of the Geomet's registered share capital. The Company
ceased to fully consolidate Geomet's results within EMH's
consolidated accounts effective 28 April 2020. From 28 April 2020
onward, Geomet had been equity accounted (ie 49% of share of the
profit or loss of the investee after the date of acquisition) for
as Investment in Associate by EMH (Note 12). The Company was
appointed to provide services of managing the Cinovec project
development.
No cash consideration was received by EMH (Holdings) Limited as
a result of the EUR29.1million investment by CEZ. The 100%
shareholding in Geomet s.r.o by EMH (Holdings) Limited was diluted
through the issuance of shares to CEZ. This is commonly referred as
"deemed disposal". A "deemed disposal" that results in the loss of
control of a subsidiary (ie Geomet s.r.o) is accounted for as a
regular disposal.
a. Financial performance information
Period ended
27 April
2020
$
Other income 11,530
Employees' benefits (131,423)
Interest expense (942)
Other expenses (17,471)
Professional fees (45,512)
Depreciation expense (1,663)
Travel and accommodation (4,958)
Office and rent expense (19,071)
-------------
Loss from discontinued operations - Until date of
disposal (209,510)
-------------
Gain on disposal 7,632,046
Gain from discontinued operation - De-consolidation
of Geomet s.r.o 7,422,536
b. Cash flows from discontinued operations - De-consolidation of
Geomet s.r.o
Period ended
27 April
2020
$
Cash flows from discontinued operations
Net cash (outflow) from operating activities (191,325)
-------------
NOTE 20: DECONSOLIDATION OF GEOMET s.r.o (CONTINUED)
c. Details of the de-consolidation of Geomet s.r.o
30 June 2020
$
Fair value of interest retained in Geomet
s.r.o (A) 19,796,466
-------------
Analysis of extracted assets and liabilities of Geomet s .r.o
on date of de-consolidation:
$
Current assets
Cash and cash equivalents 21,982
Accounts receivable 84,520
-----------
Total current assets 106,502
-----------
Non Current assets
Property, plant and equipment 366,887
Exploration assets 11,553,630
-----------
Total non current assets 11,920,517
-----------
Current liabilities
Accounts payables 9,928
Others 27,937
-----------
Total Current liabilities 37,865
-----------
Less: Net assets deconsolidated 11,989,154
Derecognition of foreign currency reserve 60,216
Foreign currency movement for the current
period (235,482)
-------------
Gain on de-consolidation of Geomet s.r.o 7,632,046
-------------
(A) Represents the fair value of 49% interest in Geomet s.r.o
NOTE 21: FINANCIAL RISK MANAGEMENT
The Group's financial instruments consist mainly of deposits
with banks, equity instruments and accounts receivable and payable.
The main purpose of non-derivative financial instruments is to
raise finance for Group's operations. The Group does not speculate
in the trading of derivative instruments.
The Group holds the following financial instruments:
2021 2020
$ $
Financial assets
Cash and cash equivalents 7,880,673 58,951
Other receivables 29,452 17,252
Other assets 127,964 -
Total financial assets 8,038,089 76,203
========= =======
Trade and other payables 397,535 924,592
Lease liability 97,893 -
--------- -------
Total financial liabilities 495,428 924,592
========= =======
The fair value of the Group's financial assets and liabilities
approximate their carrying value.
Specific Financial Risk Exposures and Management
The Group's activities expose it to a variety of financial
risks: market risk (including currency risk, interest rate risk and
price risk) credit risk and liquidity risk.
(i) Market risk
The Board meets on a regular basis to analyse currency and
interest rate exposure and to evaluate treasury management
strategies in the context of the most recent economic conditions
and forecasts.
Interest rate risk
Exposure to interest rate risk arises on financial assets and
financial liabilities recognised at the end of the reporting period
whereby a future change in interest rates will affect future cash
flows or the fair value of fixed rate financial instruments. The
Group is also exposed to earnings volatility on floating rate
instruments. Interest rate risk is not material to the Group as no
interest bearing debt arrangements have been entered into.
Price risk
Price risk relates to the risk that the fair value or future
cash flows of a financial instrument will fluctuate because of
changes in market prices.
Foreign exchange risk
Exposure to foreign exchange risk may result in the fair value
or future cash flows of a financial instrument fluctuating due to
movement in foreign exchange rates of currencies in which the Group
holds financial instruments which are other than the AUD functional
currency of the Group.
With instruments being held by overseas operations, fluctuations
in foreign currencies may impact on the Group's financial results.
The Group's exposure to foreign exchange risk is monitored by the
Board. The majority of the Group's funds are held in Australian
dollars, British Stirling and EUR.
NOTE 21: FINANCIAL RISK MANAGEMENT (CONTINUED)
At 30 June 2021, the Group has financial assets and liabilities
denominated in the foreign currencies detailed below:
2021 2020
Amount Amount Amount in Amount Amount Amount
in EUR in GBP AUD in EUR in GBP in AUD
Cash and cash equivalents
in EMHL 522,338 23,999 - 7,846 15,436 -
Trade and other
payables in EMHL - 24,106 - - - -
Intercompany payables
to EMHL by subsidiaries - - 10,927,193 - - 10,919,537
-------- -------- ----------- -------- -------- -----------
522,338 48,105 10,927,193 7,846 15,436 10,919,537
======== ======== =========== ======== ======== ===========
5% effect in foreign
exchange rates 26,117 2,405 546,360 392 772 545,977
Other than intercompany balances there were no financial assets
and liabilities denominated in foreign currencies for EMH UK.
(ii) Credit risk
Credit exposure represents the extent of credit related losses
that the Group may be subject to on amounts to be received from
financial assets. Credit risk arises principally from trade and
other receivables. The objective of the Group is to minimise the
risk of loss from credit risk. The Group trades only with
creditworthy third parties. In addition, receivable balances are
monitored on an ongoing basis with the result that the Group's
exposure to bad debts is insignificant. The Group's maximum credit
risk exposure is limited to the carrying value of its financial
assets as indicated on the Consolidated Statement of Financial
Position and notes to the financial statements.
The credit quality of the financial assets was high during the
year. The table below details the credit quality of the financial
assets at the end of the year:
2021 2020
Financial assets Credit Quality $ $
Cash and cash equivalents held at Westpac
Bank High 1,031,382 29,954
Cash and cash equivalents held at ANZ
bank High 6,849,291 28,997
Bank guarantee held at ANZ bank High 47,392 -
Other receivables High 29,452 17,252
Other assets High 80,572 -
--------- ------
8,038,089 76,203
========= ======
NOTE 21: FINANCIAL RISK MANAGEMENT (CONTINUED)
(iii) Liquidity risk
Liquidity risk is the risk that the entity will not be able to
meet its financial obligations as they fall due. The objective of
the Group is to maintain sufficient liquidity to meet commitments
under normal and stressed conditions.
Prudent liquidity risk management implies maintaining sufficient
cash and marketable securities, and the availability of funding
through an adequate amount of committed credit facilities. The
Group aims at maintaining flexibility in funding by maintaining
adequate reserves of liquidity.
The following are the contractual maturities of financial assets
and financial liabilities, including estimated interest receipts
and payments and excluding the impact of netting arrangements.
Carrying Contractual <3 months 6-24
Amount Cash flows 3-6 months months
As at 30 June 2021 $ $ $ $ $
Financial assets - -
Cash and cash
equivalents 7,880,673 7,880,673 7,880,673 - -
Other receivables 29,452 29,452 29,452 - -
Other assets 127,964 127,964 80,572 - 47,392
---------------- ------------------ ---------------- ----------------- --------------
Cash inflows 8,038,089 8,038,089 7,990,697 - 47,392
================ ================== ================ ================= ==============
Financial
liabilities
Trade and other
payables 397,535 397,535 397,535 - -
Lease liabilities 97,893 97,893 - - 97,893
---------------- ------------------ ---------------- ----------------- --------------
Cash outflows 495,428 495,428 397,535 - 97,893
================ ================== ================ ================= ==============
Carrying Contractual <3 months 6-24
Amount Cash flows 3-6 months months
As at 30 June 2020 $ $ $ $ $
Financial assets - -
Cash and cash
equivalents 58,951 58,951 58,951 - -
GST and other
receivables 17,252 17,252 17,252 - -
Cash inflows 76,203 76,203 76,203 - -
=============== ================== ================ ================= ==============
Financial
liabilities
Trade and other
payables 924,592 924,592 924,592 - -
--------------- ------------------ ---------------- ----------------- ----------------
Cash outflows 924,592 924,592 924,592 - -
=============== ================== ================ ================= ================
NOTE 21: FINANCIAL RISK MANAGEMENT (CONTINUED)
(iv) Interest rate risk
From time to time the Group has significant interest bearing
assets, but they are as a result of the timing of equity raising
and capital expenditure rather than a reliance on interest income.
The interest rate risk arises on the rise and fall of interest
rates. The Group's exposure to interest rate risk, which is the
risk that a financial instrument's value will fluctuate as a result
of changes in market interest rates and the effective weighted
average interest rate for each class of financial assets and
financial liabilities comprises:
Weighted Average Floating Fixed Non-interest Total
As at 30 June 2021 Interest Rate Interest Interest bearing
Rate
Financial assets % $ $ $ $
Cash and cash equivalents 0.21% 2,880,673 5,000,000 - 7,880,673
Other receivables - - 29,452 29,452
Bank guarantee 0.32% - 47,392 - 47,392
Other assets - - 80,572 80,572
--------- --------- ------------ ---------
2,880,673 5,047,392 110,024 8,038,089
========= ========= ============ =========
Financial liabilities
Trade and other payables - - 397,535 397,535
Lease liabilities - - 97,893 97,893
--------- --------- ------------ ---------
- - 495,428 495,428
========= ========= ============ =========
Weighted Average Floating Fixed Non-interest Total
As at 30 June 2020 Interest Rate Interest Interest bearing
Rate
Financial assets % $ $ $ $
Cash and cash equivalents 0.00% 58,951 - - 58,951
GST and other receivables - - 17,252 17,252
58,951 - 17,252 76,203
========= ========= ============ =======
Financial liabilities
Trade and other payables - - 924,592 924,592
--------- --------- ------------ -------
- - 924,592 924,592
========= ========= ============ =======
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in the interest rates at the
reporting date would have increased or decreased the Group's equity
and profit or loss by $79,280 (2020: $590).
(v) Net fair value of financial assets and liabilities
The net fair value of cash and cash equivalents and non-interest
bearing monetary assets and financial liabilities approximates
their carrying values.
NOTE 22: CONTROLLED ENTITIES
Subsidiaries of European Metals Holdings Limited
Controlled entity Country of Incorporation Class of Shares Percentage Owned
2021 2020
Equamineral Group Limited British Virgin
(EGL)* Islands Ordinary 100% 100%
Equamineral SA (ESA Congo) Republic of Congo Ordinary 100% 100%
European Metals UK Limited
(EMH UK) ** United Kingdom Ordinary 100% 100%
EMH (Australia) Pty Ltd Australia Ordinary 100% 100%
*EGL was incorporated on 8 December 2010 and domiciled in the
British Virgin Islands. EGL is the parent company for Equamineral
SA (ESA Congo) located in the Republic of Congo. EGL is the
beneficial holder of 100% of the issued share capital in
Equamineral SA. This company is currently in the process of being
deregistered.
**EMH UK Limited was the parent company for Geomet s.r.o up to
27 April 2020.
NOTE 23: PARENT ENTITY DISCLOSURE
The following information has been extracted from the books and
records of the parent and has been prepared in accordance with
Australian Accounting Standards.
Statement of Financial Position 2021 2020
$ $
ASSETS
Current assets 8,270,838 79,689
Non-current assets 182,711 1,513
--------- ---------
TOTAL ASSETS 8,453,549 81,202
--------- ---------
LIABILITIES
Current liabilities 545,686 979,210
Non-current liabilities 91,855 -
TOTAL LIABILITIES 637,541 979,210
--------- ---------
NET ASSETS/(LIABILITIES) 7,816,008 (898,008)
========= =========
EQUITY 2021 2020
$ $
Issued capital 34,087,930 23,954,204
Reserves 9,220,602 7,950,773
Accumulated losses (35,492,524) (32,802,985)
------------ ------------
TOTAL EQUITY/(DEFICIT) 7,816,008 (898,008)
============ ============
Profit or Loss and Other Comprehensive Income
Loss for the year (2,689,539) (5,530,691)
Total comprehensive loss (2,689,539) (5,530,691)
=========== ===========
NOTE 23: PARENT ENTITY DISCLOSURE (CONTINUED)
Guarantees
There are no guarantees entered into by European Metals Holdings
Limited for the debts of its subsidiaries as at 30 June 2021.
Contingent liabilities
There are no contingent liabilities of the parent as at 30 June
2021 and 30 June 2020.
Commitments
There were no commitments for the parent as at 30 June 2021 and
30 June 2020.
NOTE 24: CAPITAL COMMITMENTS
There are no capital commitments for the Group as at 30 June
2021 and 30 June 2020.
NOTE 25: CONTINGENT LIABILITIES
There are no contingent liabilities for the Group as at 30 June
2021 and 30 June 2020.
NOTE 26: SIGNIFICANT EVENTS AFTER THE REPORTING DATE
On 16 July 2021, the Company issued 238,000 CDIs upon the
exercise of unquoted options at 42 cents. The options conversions
raised a total of $99,960.
Except for the matters noted above there have been no other
significant events arising after the reporting date.
DIRECTORS' DECLARATION
The Directors of the Company declare that:
1. the financial statements, notes and the additional disclosures
are in accordance with the Corporations Act 2001 including:
(a) complying with Accounting Standards;
(b) are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards
Board, as stated in Note 1 to the financial statements;
and
(c) give a true and fair view of the financial position as
at 30 June 2021 and of the performance for the year ended
on that date of the Group.
2. the Chief Executive Officer and Chief Finance Officer have
each declared that:
(a) the financial records of the Group for the financial year
have been properly maintained in accordance with s286 of
the Corporations Act 2001;
(b) the financial statements and notes for the financial year
comply with the Accounting Standards; and
(c) the financial statements and notes for the financial year
give a true and fair view.
3. in the Directors' opinion there are reasonable grounds to
believe that the Company will be able to pay its debts as
and when they become due and payable.
This declaration is made in accordance with a resolution of the
Board of Directors and is signed for and on behalf of the Directors
by:
Keith Coughlan
EXECUTIVE CHAIRMAN
Dated at Perth on 30 September 2021
INDEPENT AUDIT REPORT TO THE MEMBERS OF EUROPEAN METALS HOLDINGS
LIMITED
INDEPENT AUDITOR'S REPORT TO THE MEMBERS OF
EUROPEAN METALS HOLDINGS LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of European Metals Holdings
Limited (the Company), and its controlled entities (the Group),
which comprises the consolidated statement of the financial
position as at 30 June 2021, and the consolidated statement of
profit or loss and other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of
cash flows for the year then ended, and the notes to the
consolidated financial statements, including a summary of
significant accounting policies, and the directors' declaration
In our opinion, the accompanying financial report of the Group
is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group's financial
position as at 30 June 2021 and of its financial performance for
the year then ended; and
(ii) complying with Australian Accounting Standards and the
Corporations Regulations 2001 .
Basis for Opinion
We conducted our audit in accordance with Australian Auditing
Standards. Our responsibilities under those standards are further
described in the Auditor's Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the
Company in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board's APES 110:
Code of Ethics for Professional Accountants (the Code) that are
relevant to our audit of the financial report in Australia. We have
also fulfilled our other ethical responsibilities in accordance
with the Code.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
We have determined the matters described below to be key audit
matters to be communicated in the report.
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the
context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate
opinion on these matters. We have determined the matters described
below to be the key audit matters to be communicated in our
report.
Key Audit Matters How the matter was addressed
in the audit How the matter was
addressed in the audit
Valuation of Share-based payments
As disclosed in notes 16 and In assessing the valuation of
17 of the financial report, share options, warrants and performance
during the period the Company rights, our audit procedures
granted a number of options included, among others:
and warrants to consultants
and performance rights to the i. Obtaining an understanding
Directors of the Company. of the underlying transactions,
reviewing agreements, minutes
During the period the Company of the Board meetings and ASX
also issued replacement CDIs announcements;
in lieu of options that were
cancelled by a consultant. ii. Reviewing the inputs used
in the valuation models, the
The Company prepared a valuation underlying assumptions used and
of options, warrants and performance discussing with management the
rights as well as assessed the justification for these inputs;
accounting implication of the
options' cancellation in accordance iii. Assessing the accounting
with its accounting policy and treatment and its application
the accounting standard AASB in accordance with AASB 2; and
2 - Share-based Payment.
iv. Assessing whether the Company's
disclosures met the requirements
of the accounting standards.
The valuation of options, warrants
and performance rights and the
accounting treatment of the
cancellation of options are
considered to be a key audit
matter as they involved judgment
in assessing the fair value
of the equity instruments granted,
the grant date, vesting conditions
and vesting periods.
========================================= =============================================
Investment in associate accounted
for using the equity method
As disclosed in note 12 of the In assessing the investment in
financial report, effective associate accounted for using
28 April 2020, the Group ceased the equity method, our audit
to fully consolidate Geomet procedures included, among others:
s.r.o's ('Geomet') results within
the Group's consolidated accounts i. Performing the audit of Geomet's
due to the investment made by accounts for the year ended 30
CEZ a.s. ("CEZ") for a 51% equity June 2021;
interest in Geomet. Therefore,
the investment injection reduced ii. Reviewing the management's
the Group's interest to 49% workings to ensure that the investment
and Geomet has been equity accounted in Geomet was correctly accounted
as an investment in associate for applying the equity method;
in accordance with AASB 128
- Investments in
Associates and Joint Ventures
since that date.
iii. Assessing the existence
The Group accounted for 49% of any impairment indicators
of the loss incurred by Geomet regarding the investment in the
in the period totalling associate.
$1,263,167 and recognised an
investment in associate at 30 iv. Ensuring that the disclosures
June 2021 amounting to made in the financial report
$17,461,027. were complete and in accordance
with the requirements of the
The investment in associate accounting standards; and
accounted for using the equity
method is considered to be a
key audit matter as the investment
represents 67% of the total
assets of the Group and also
due to the significant audit
effort required to perform the
audit of Geomet.
========================================= =============================================
Other Information
The directors are responsible for the other information. The
other information comprises the information included in the Group's
annual report for the year ended 30 June 2021, but does not include
the financial report and our auditor's report thereon.
Our opinion on the financial report does not cover the other
information and accordingly we do not express any form of assurance
opinion thereon.
In connection with our audit of the financial report, our
responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated. If, based on the work
we have performed, we conclude that there is a material
misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation
of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal control as the
directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from
material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible
for assessing the ability of the Group to continue as a going
concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial
Report
Our objectives are to obtain reasonable assurance about whether
the financial report as a whole is free from material misstatement,
whether due to fraud or error, and to issue an auditor's report
that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always
detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of
this financial report.
As part of an audit in accordance with Australian Auditing
Standards, we exercise professional judgement and maintain
professional skepticism throughout the audit. An audit involves
performing procedures to obtain audit evidence about the amounts
and disclosures in the financial report.
The procedures selected depend on the auditor's judgement,
including the assessment of the risks of material misstatement of
the financial report, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control
relevant to the Group's preparation of the financial report that
gives a true and fair view in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group's internal
control.
The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting
estimates made by the Directors, as well as evaluating the overall
presentation of the financial report.
We conclude on the appropriateness of the Directors' use of the
going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group's
ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in
our auditor's report to the related disclosures in the financial
report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor's report. However, future events or
conditions may cause the Group to cease to continue as a going
concern.
We evaluate the overall presentation, structure and content of
the financial report, including the disclosures, and whether the
financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
We obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities within
the Group to express an opinion on the financial report.
We communicate with the Directors regarding, among other
matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in Internal
control that we identify during our audit.
The Auditing Standards require that we comply with relevant
ethical requirements relating to audit engagements. We also provide
the Directors with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate
with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the Directors, we determine
those matters that were of most significance in the audit of the
financial report of the current period and are therefore key audit
matters. We describe these matters in our auditor's report unless
law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh
the public interest benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 15 to
21 of the directors' report for the year ended
30 June 2021. The directors of the Company are responsible for
the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing
Standards.
Opinion on the Remuneration Report
In our opinion, the Remuneration Report of European Metals
Holdings Limited for the year ended 30 June 2021 complies with
section 300A of the Corporations Act 2001.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Samir Tirodkar
Director
West Perth, Western Australia 30 September 2021
additional information
The following additional information is required by the Australian
Securities Exchange Ltd in respect of listed public companies
only.
1 Shareholding as at 15 September 2021
(a) Distribution of Shareholders
Number
Category (size of holding) of Shareholders
1 - 1,000 733
1,001 - 5,000 977
5,001 - 10,000 422
10,001 - 100,000 470
100,001 - and over 153
2,755
----------------------------------------
(b) The number of shareholdings held in less than marketable parcels
is 111.
(c) Voting Rights
The voting rights attached to each class of equity security
are as follows:
175,357,485 CDIs
- Each CDI is entitled to one vote when a poll is called,
otherwise each member present at a meeting or by proxy
has one vote on a show of hands.
(d) 20 Largest Shareholders - CDIs as at 15 September 2021
Rank Shareholder Number of CDIs % Held
------------------------------------------------ ------------------------ ---------------- ------------------------
Citicorp Nominees Pty
1. Limited 20,321,520 11.59
2. Armco Barriers Pty Ltd 13,635,000 7.78
Inswinger Holdings Pty
3. Ltd 8,500,000 4.85
BNP Paribas Nominees Pty
Ltd ACF
4. Clearstream 7,806,006 4.45
Vidacos Nominees Limited
5. <ClLRLUX> 6,458,826 3.68
BNP Paribas Noms Pty Ltd
6. <DRP> 5,895,226 3.36
Hargreaves Lansdown
(Nominees) Limited
7. <15942> 4,113,425 2.35
Interactive Investor
Services Nominees
8. Limited <SMKTISAS> 4,046,795 2.31
Barclays Direct
Investing Nominees
9. Limited <Client1> 3,603,418 2.05
Hargreaves Lansdown
(Nominees) Limited
10. <VRA> 3,045,711 1.74
Securities Services
Nominees Limited
11. <2197007> 2,734,313 1.56
12. HSDL Nominees Limited 2,548,967 1.45
Lawshare Nominees
13. Limited <SIPP> 2,505,702 1.43
HSDL Nominees Limited
14. <Maxi> 2,384,208 1.36
Jim Nominees Limited
15. <Jarvis> 2,299,244 1.31
Vidacos Nominees Limited
16. <FGN> 2,199,653 1.25
Lawshare Nominees
17. Limited <ISA> 2,052,387 1.17
Interactive Investor
Services Nominees
18. Limited <SMKTNOMS> 2,025,081 1.15
Mr Richard Keller <Est
Anna E Keller
19. A/C> 1,980,500 1.13
BankAmerica Nominees
20. Limited <GMIP> 1,953,057 1.11
Total Top 20 Shareholders 100,109,039 57.09
2 The name of the Company Secretary is Mr Dennis Wilkins
.
3 The address of the principal registered office in Australia
is Level 3, 35 Outram Street, West Perth WA 6005. Telephone
+61 8 6245 2050.
4 Registers of securities are held at the following addresses
Computershare Investor Services Limited
Level 11
172 St Georges Terrace
Perth, Western Australia 6000
5 Securities Exchange Listing
Quotation has been granted for all the CDIs of the Company
on all Member Exchanges of the Australian Securities Exchange
Limited.
6 Unquoted Securities
A total of 13,024,000 options over unissued CDIs are on
issue.
A total of 3,000,000 A Class Performance Shares
A total of 1,227,500 Warrants over unissued CDIs are on
issue.
7 Use of Funds
The Company has used its funds in accordance with its initial
business objectives.
TENEMENT SCHEDULE
Permit Code Deposit Interest Acquired Interest
at beginning / Disposed at end of
of Quarter Quarter
Cinovec 100% N/A 100%
------------------------------ ------------ -------------- ------------ -----------
Cinovec
II 100% N/A 100%
------------------------------ -------------- ------------ -----------
Cinovec
III 100% N/A 100%
------------------------------ -------------- ------------ -----------
Exploration Cinovec
Area IV N/A 100% N/A 100%
--------- ------------------- -------------- ------------ -----------
Preliminary
Mining Cinovec
Permit II Cinovec South 100% N/A 100%
--------- ------------------- -------------- ------------ -----------
Cinovec
III Cinovec East 100% N/A 100%
--------- --------------------------------- -------------- ------------ -----------
Cinovec
IV Cinovec NorthWest 100% N/A 100%
--------- --------------------------------- -------------- ------------ -----------
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END
FR FIFEDATIIVIL
(END) Dow Jones Newswires
September 30, 2021 04:17 ET (08:17 GMT)
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