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Prairie Mining Ltd (PDZ)

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Wednesday 29 September, 2021

Prairie Mining Ltd

Annual report to shareholders

RNS Number : 3501N
Prairie Mining Limited
29 September 2021
 

PRAIRIE MINING LIMITED

 

2021 ANNUAL REPORT

 

ABN 23 008 677 852

 

CORPORATE DIRECTORY

 

DIRECTORS:

Mr Ian Middlemas   Chairman
Mr Benjamin Stoikovich      Director and CEO
Ms Carmel Daniele   Non-Executive Director
Mr Mark Pearce   Non-Executive Director

 

Mr Dylan Browne  Company Secretary

PRINCIPAL OFFICES:

London:

Unit 3C, 38 Jermyn Street
London SW1Y 6DN
United Kingdom

 

Australia (Registered Office):

Level 9,
28 The Esplanade
Perth  WA  6000
Tel:  +61 8 9322 6322
Fax:  +61 8 9322 6558

 

Warsaw:

Wiejska 17/11
00-480 Warsaw

 

SOLICITORS:

Thomson Geer

 

AUDITOR:

Ernst & Young - Perth

 

BANKERS:

National Australia Bank Ltd
Australia and New Zealand Banking Group Ltd

 

SHARE REGISTRIES:

Australia:

Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
Tel: +61 8 9323 2000

 

United Kingdom:

Computershare Investor Services PLC
The Pavilions, Bridgewater Road
Bristol BS99 6ZZ
Tel: +44 370 702 0000

 

Poland:

Komisja Nadzoru Finansowego (KNF)
Plac Powstańców Warszawy 1, skr. poczt. 419
00-950 Warszawa
Tel: Tel: +48 22 262 50 00

 

STOCK EXCHANGE LISTINGS:

Australia:

Australian Securities Exchange - ASX Code: PDZ

 

United Kingdom:

London Stock Exchange (Main Board) - LSE Code: PDZ

 

Poland:

Warsaw Stock Exchange - GPW Code: PDZ

 

 

CONTENTS

Message from the CEO

Directors' Report

Consolidated Statement of Profit or Loss and other Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

 

The following sections (as well as all illustrations and figures) are available in the full version of the 2021 Annual Report on the Company's website at http://www.pdz.com.au/company-reports

Auditor's Independence Declaration

Notes to and Forming Part of the Financial Statements

Directors' Declaration

Independent Auditor's Report

Corporate Governance

Additional Information

 

Prairie Mining Limited (Prairie or Company) also advises that an Appendix 4G (Key to Disclosures: Corporate Governance Council Principles and Recommendations) and 2021 Corporate Governance Statement have been released today and are also available on the Company's website.

 

The Company further advises, in accordance with ASX Listing Rule 3.13.1, that the Company's Annual General Meeting (AGM) will be held on Wednesday, 24 November 2021 .

 

An item of business at the AGM will be the re-election of Directors. In accordance with clause 6.2(f) of the Company's Constitution, the closing date for receipt of nominations from persons wishing to be considered for election as a Director is Wednesday, 6 October 2021.

 

Any nominations must be received at the Company's registered office in Perth no later than 5.00 pm (Perth time) on Wednesday, 6 October 2021.

 

MESSAGE FROM THE CEO

 

Dear shareholders,

 

Key events during, and since the end of the financial year for the Company included the following:

· International arbitration claims (Claim) against the Republic of Poland under both the Energy Charter Treaty (ECT) and the Australia-Poland Bilateral Investment Treaty (BIT) (together the Treaties) continue.

· During the year, Prairie filed its Statement of Claim, claiming compensation in the amount of £806 million (equivalent to A$1.5 billion or PLN 4.2 billion).

The Claim for compensation against the Republic of Poland includes an assessment of the value of Prairie's lost profits and damages related to both the Jan Karski (JKM) and Debiensko mines, and accrued interest related to any damages.

The Claim for damages has been assessed by external quantum experts appointed by Prairie specifically for the purposes of the Claim.

· The Company's Claim against the Republic of Poland is being prosecuted through an established and enforceable legal framework with both parties agreeing to apply the United Nations Commission on International Trade Law Rules (UNCITRAL) to the proceedings.

· The Company is well funded to pursue the Claim with the US$12.3 million Litigation Funding Agreement (LFA) in place which is currently being drawn down to cover legal, tribunal and external expert costs and defined operating expenses associated with the Claim.

· Completed a Share Purchase Plan (SPP) to raise A$4 million (before costs) for working capital requirements and business development opportunities.

· Prairie continues its efforts to identify and assess other suitable new business opportunities, focused on the resources sector. The Company will make announcements to the market as appropriate.

 

Yours sincerely,

 

 

Benjamin Stoikovich

 

DIRECTORS' REPORT

 

The Directors of Prairie Mining Limited present their report on the Consolidated Entity consisting of Prairie Mining Limited (Company or Prairie) and the entities it controlled at the end of, or during, the year ended 30 June 2021 (Consolidated Entity or Group).

 

OPERATING AND FINANCIAL REVIEW

 

Selected Financial Data (Converted into PLN and EUR)

 

 

 

Year Ended
30 June 2021
PLN

Year Ended
30 June 2020
PLN

Year Ended
30 June 2021
EUR

Year Ended
30 June 2020
EUR

 

 

 

 

 

Arbitration finance facility income

11,535,313

2,402,278

2,548,049

548,670

Sale of land rights at Debiensko

1,814,741

-

400,860

-

Gas and property lease revenue

778,346

1,050,764

171,930

239,990

Exploration and evaluation expenses

(2,335,689)

(4,917,917)

(515,933)

(1,123,231)

Arbitration related expenses

(11,741,851)

(2,402,278)

(2,534,030)

(548,670)

Net loss for the period

(2,491,961)

(8,769,809)

(550,452)

(2,002,986)

Net cash flows from operating activities

(6,360,038)

(10,002,808)

(1,404,876)

(2,284,598)

Net cash flows from investing activities

(956,770)

-

(211,342)

-

Net cash flows from financial activities

13,371,742

(766,856)

2,970,834

(175,147)

Net increase/(decrease) in cash and cash equivalents

6,054,934

(10,769,664)

1,354,616

(2,459,745)

Basic and diluted loss per share (Grosz/EUR cents per share)

(1.08)

(4.02)

(0.24)

(0.92)

 

 

30 June 2021
PLN

30 June 2020
PLN

30 June 2021 EUR

30 June 2020
EUR

 

 

 

 

 

Cash and cash equivalents

13,619,641

6,996,842

3,012,662

1,566,691

Total Assets

23,143,811

18,091,804

5,119,406

4,051,008

Total Liabilities

6,931,015

7,190,951

1,533,139

1,610,154

Net Assets

16,212,797

10,900,853

3,586,267

2,440,854

Contributed equity

216,970,230

206,248,000

51,912,177

49,526,596

In compliance with Polish reporting requirements, figures of the consolidated statement of profit or loss and other comprehensive income and consolidated statement of cash flows have been converted into PLN and EUR (from the Group's presentation currency) by applying the arithmetic average for the final day of each month for the reporting period, as published by the National Bank of Poland ("NBP"). These exchange rates were 2.8337 AUD:PLN and 4.5271 PLN:EUR for the twelve months ended 30 June 2021, and 2.6514 AUD:PLN and 4.3784 PLN:EUR for the twelve months ended 30 June 2020.

Assets and liabilities in the consolidated statement of financial position have been converted into PLN and EUR by applying the exchange rate on the final day of each respective reporting period as published by the NBP. These exchange rates were: 2.8523 AUD:PLN and 4.5208 PLN:EUR on 30 June 2021, and  2.7262 AUD:PLN and 4.4660 PLN:EUR on 30 June 2020.

Operations

Significant Litigation Proceedings - Dispute with Polish Government

The Company's Claim against the Republic of Poland is being prosecuted through an established and enforceable legal framework, with Prairie and Poland agreeing to apply the UNCITRAL rules to the proceedings.

Both the BIT and ECT claim Tribunals have been constituted, with both Claim's being registered with the Permanent Court of Arbitration in the Hague. The BIT and ECT claim proceedings proceed at pace, with the Company now having filed a Claim for compensation against Poland with the Tribunal in the amount of £806 million (A$1.5 billion / PLN 4.2 billion), which includes an assessment of the value of Prairie's lost profits and damages related to both the JKM and Debiensko mines, and accrued interest related to any damages. The Claim for damages has been assessed by external quantum experts appointed by Prairie specifically for the purposes of the Claim.

In July 2020, the Company announced it had executed a LFA for US$12.3 million with Litigation Capital Management ( LCM ). The facility is currently being drawn down to cover legal, tribunal and external expert costs and defined operating expenses associated with the Claim.

In September 2020, Prairie announced that it had formally commenced with the Claim by serving the Notices of Arbitration against the Republic of Poland.

Prairie's dispute alleges that the Republic of Poland has breached its obligations under the applicable Treaties through its actions to block the development of the Company's Jan Karski and Debiensko mines in Poland which effectively deprives Prairie of the entire value of its investments in Poland.

In February 2019, Prairie formally notified the Polish Government that there exists an investment dispute between Prairie and the Polish Government. Prairie's notification called for prompt negotiations with the Government to amicably resolve the dispute and indicated Prairie's right to submit the dispute to international arbitration in the event of the dispute not being resolved amicably. The Company remains open to resolving the dispute with the Polish Government amicably. However, as of the date of this report, no amicable resolution of the dispute has occurred, since the Polish Government has declined to participate in discussions related to the dispute and accordingly the Company has formerly submitted its Claim as discussed above.

Prairie's investment dispute with the Republic of Poland is not unique, with international media widely reporting that the political environment and investment climate in Poland has deteriorated since the change in Government in 2015. As a result, there have been a significant number of International Arbitration claims being brought against Poland in the natural resources and energy sectors with damages claims ranging from US$120 million to over US$1.3 billion and includes Bluegas NRG Holding (Gas), Lumina Copper (Copper) and InvEnergy (wind farms).

Corporate

Business Development

A number of opportunities have been reviewed during the year, and the Company will continue in its efforts to identify and acquire suitable new business opportunities. The Company is currently focusing on new opportunities in the resources sector.

However, no agreements have been reached or licences granted, and the Company is not able to assess the likelihood or timing of a successful acquisition or grant of any opportunities .

Share Purchase Plan

During the year, the Company completed a SPP to raise A$4 million before costs   for working capital requirements and business development opportunities.

Results of Operations

 

The net loss of the Consolidated Entity for the year ended 30 June 2021 was $879,388 (2020: $3,307,600). Significant items contributing to the current year loss and the substantial differences from the previous financial year include:

 

(i)  Arbitration related costs of $4,048,329 (2020: $906,036) relating to the Claim against Republic of Poland. This has been offset by the arbitration funding income of $4,070,724 (2020: $906,036);

 

(ii)  Sale of land rights at Debiensko of $640,409 (2020: nil);

 

(iii)  Exploration and Evaluation expenses of $824,247 (2020: $1,854,827), which is attributable to the Group's accounting policy of expensing exploration and evaluation expenditure incurred by the Group subsequent to the acquisition of rights to explore and up to the commencement of a bankable feasibility study for each separate area of interest, which relates to legal and permitting expenditure and payments to consultants in Poland;

 

(iv)  Business development expenses of $256,380 (2020: $299,241) which includes expenses relating to the Group's review of new business and project opportunities plus also investor relations activities during the year including digital marketing and business development consultant costs ;

 

(v)  Non-cash share-based payment reversal of $548,745 (2020: expense of $163,613) due to incentive securities issued to key management personnel and other key employees and consultants of the Group as part of the long-term incentive plan to reward key management personnel and other key employees and consultants for the long-term performance of the Group. The expense results from the Group's accounting policy of expensing the fair value (determined using an appropriate pricing model) of incentive securities granted on a straight-line basis over the vesting period of the options and rights. During the year, 6.23 million performance rights did not vest and lapsed with $661,876 being reversed from the reserve to profit and loss; and

 

(vi)  Revenue of $297,875 (2020: $456,726) consisting of interest income of $23,203 (2020: $60,423) and the receipt of $274,672 (2020: $396,303) of gas and property lease income derived at Debiensko.

 

Financial Position

 

At 30 June 2021, the Company had cash reserves of $4,774,968 (2020: $2,566,518). With the US$12.3 million LFA arbitration facility (US$8.9 million available for drawdown at 30 June 2021), the Company is in a strong financial position to continue with the Claim and business development activities.

 

At 30 June 2021, the Company had net assets of $5,684,113 (2020: $3,998,552), an increase of 42% compared with the previous year. This is largely attributable to the increase in cash reserves, following the completion of the SPP, and small decrease in trade and other payables.

Business Strategies and Prospects for Future Financial Years

 

Prairie's strategy is to create long-term shareholder value. This now includes pursuing the Claim against the Republic of Poland through international arbitration.

 

As discussed throughout this report, various measures directed against Prairie by the Polish government in breach of Polish and international law with respect to the Company's permitting process and licenses, have blocked Prairie's pathway to any future production from its Polish projects.

 

To achieve its objective, the Group currently has the following business strategies and prospects:

· Continue to enforce its rights through an established and enforceable legal framework in relation to international arbitration for the investment dispute between Prairie and the Polish Government that has arisen out of certain measures taken by Poland in breach of the Treaties;

· Continue to assess corporate options for Prairie's investments in Poland; and

· Identify and assess other suitable business opportunities in the resources sector.

All of these activities are inherently risky and the Board is unable to provide certainty of the expected results of these activities, or that any or all of these likely activities will be achieved. Furthermore, Prairie will continue to take all necessary actions to pursue the Company's legal rights regarding its investments in Poland, if and as required.  The material business risks faced by the Group that could have an effect on the Group's future prospects, and how the Group manages these risks, include the following:

· Litigation risk - All industries, including the mining industry, are subject to legal and arbitration claims. Specifically, and as noted above, the Company formally commenced its Claim following lodgement of its notices of arbitration with against the Republic of Poland. Prairie will strongly defend its position and continue to take all relevant actions to pursue its legal rights regarding both the Debiensko and JKM projects. There is however no certainty that the Claim will be successful. If the Claim is unsuccessful, then this may have a material impact on the value of the Company's securities.  

· The Company may be adversely affected by fluctuations in foreign exchange - Current and planned activities are predominantly denominated in Stirling and/or Euros and the Company's ability to fund these activates may be adversely affected if the Australian dollar continues to fall against these currencies. The Company currently does not engage in any hedging or derivative transactions to manage foreign exchange risk. As the Company's operations change, this policy will be reviewed periodically going forward.

· The Company may not successfully acquire new projects - the Company may pursue and assess other new business opportunities in the resources sector. These new business opportunities may take the form of direct project acquisitions, joint ventures, farm-ins, acquisition of tenements/permits, or direct equity participation. The Company's success in its acquisition activities depends on its ability to identify suitable projects, acquire them on acceptable terms, and integrate the projects successfully, which the Company's Board is experienced in doing. However, there can be no guarantee that any proposed acquisition will be completed or be successful. If a proposed acquisition is completed the usual risks associated with a new project and/or business activities will remain.

DIRECTORS

The names and details of the Group's Directors in office at any time during the financial year or since the end of the financial year are:

Current Directors:

Mr Ian Middlemas  Chairman

Mr Benjamin Stoikovich      Director and CEO

Ms Carmel Daniele  Non-Executive Director 

Mr Mark Pearce  Non-Executive Director

 

Former Directors

Mr Thomas Todd  Non-Executive Director (resigned 30 July 2021)

Mr Todd Hannigan               Alternate Director (resigned 5 February 2021)

 

Unless otherwise stated, Directors held their office from 1 July 2020 until the date of this report.

CURRENT DIRECTORS AND OFFICERS

Mr Ian Middlemas  B.Com, CA

Chairman

Mr Middlemas is a Chartered Accountant, a member of the member of the Australian Institute of Company Directors and holds a Bachelor of Commerce degree. He worked for a large international Chartered Accounting firm before joining the Normandy Mining Group where he was a senior group executive for approximately 10 years. He has had extensive corporate and management experience, and is currently a Director with a number of publicly listed companies in the resources sector.

 

Mr Middlemas was appointed a Director of the Company on 25 August 2011. During the three year period to the end of the financial year, Mr Middlemas has held directorships in Peregrine Gold Limited (September 2020 - present), Constellation Resources Limited (November 2017 - present), Apollo Minerals Limited (July 2016 - present), Paringa Resources Limited (October 2013 - present), Berkeley Energia Limited (April 2012 - present), Salt Lake Potash Limited (January 2010 - present), Equatorial Resources Limited (November 2009 - present), , Sovereign Metals Limited (July 2006 - present), Odyssey Gold Limited (September 2005 - present), Piedmont Lithium Limited (September 2009 - December 2020) and Cradle Resources Limited (May 2016 - July 2019).

 

Mr Benjamin Stoikovich  B.Eng, M.Eng, M.Sc, CEng, CEnv

Director and CEO

 

Mr Stoikovich is a mining engineer and professional corporate finance executive. He has extensive experience in the resources sector gained initially as an underground Longwall Coal Mining Engineer with BHP Billiton where he was responsible for underground longwall mine operations and permitting, and more recently as a senior executive within the investment banking sector in London where he gained experience in mergers and acquisitions, debt and off take financing.

 

He has a Bachelor of Mining Engineering degree from the University of NSW; a Master of Environmental Engineering from the University of Wollongong; and a M.Sc in Mineral Economics from Curtin University. Mr Stoikovich also holds a 1st Class Coal Mine Managers Ticket from the Coal Mine Qualifications Board (NSW, Australia) and is a registered Chartered Engineer (CEng) and Chartered Environmentalist (CEnv) in the United Kingdom. Mr Stoikovich was appointed a Director of the Company on 17 June 2013. During the three year period to the end of the financial year, Mr Stoikovich has not held any other directorships in listed companies.

 

Ms Carmel Daniele   B.Ec, CA

Non-Executive Director  

 

Ms Carmel Daniele is the founder and Chief Investment Officer of CD Capital in London. Ms Daniele has over 20 years of global natural resources investment experience, ten of which was spent with Newmont Mining/Normandy Mining and acquired companies. As a Senior Executive (Corporate Advisory) at Newmont she structured cross-border M&As including the three-way merger between Franco-Nevada, Newmont and Normandy. Post-merger Ms Daniele structured the divestment of various non-core mining assets around the world for the merchant banking arm, Newmont Capital.  Ms Daniele started off her career at Deloitte Touche Tohmatsu. Prior to setting up CD Capital in London in 2006, Ms Daniele was an investment advisor to RAB Capital's Special Situations Fund on sourcing and negotiating natural resource private equity investments. Ms Daniele holds a Master of Laws (Corporate & Commercial) and Bachelor of Economics from the University of Adelaide and is a Fellow of the Institute of Chartered Accountants.

 

Ms Daniele was appointed a Director on 21 September 2015. During the three year period to the end of the financial year, Ms Daniele has not held any other directorships in listed companies.

 

Mr Mark Pearce  B.Bus, CA, FCIS, FFin

Non-Executive Director

 

Mr Pearce is a Chartered Accountant and is currently a Director of several listed companies that operate in the resources sector. He has had considerable experience in the formation and development of listed resource companies. Mr Pearce is also a Fellow of the Institute of Chartered Secretaries and Administrators and a Fellow of the Financial Services Institute of Australasia.

Mr Pearce was appointed a Director of the Company on 25 August 2011. During the three year period to the end of the financial year, Mr Pearce has held directorships in Peregrine Gold Limited (September 2020 - present), Constellation Resources Limited (July 2016 - present), Equatorial Resources Limited (November 2009 - present), Apollo Minerals Limited (July 2016 - February 2021) Sovereign Metals Limited (July 2006 - present), Odyssey Gold Limited (September 2005 - August 2020), Salt Lake Potash Limited (August 2014 - October 2020) and Piedmont Lithium Limited (September 2009 - August 2018).

 

Mr Dylan Browne   B.Com, CA, AGIA

Company Secretary

Mr Browne is a Chartered Accountant and Associate Member of the Governance Institute of Australia (Chartered Secretary) who is currently Company Secretary for a number of ASX and European listed companies that operate in the resources sector. He commenced his career at a large international accounting firm and has since been involved with a number of exploration and development companies operating in the resources sector, based in London and Perth, including Sovereign Metals Limited, Apollo Minerals Limited, Berkeley Energia Limited and Papillon Resources Limited. Mr Browne successfully listed Prairie on the Main Board of the London Stock Exchange and the Warsaw Stock Exchange in 2015 and also oversaw Berkeley's listings on the Main Board LSE and the Spanish Stock Exchanges. Mr Browne was appointed Company Secretary of the Company on 25 October 2012. 

PRINCIPAL ACTIVITIES

The principal activities of the Group during the financial year consisted of the exploration and development of Debiensko and Jan Karski. No significant change in nature of these activities occurred during the year.

 

EARNINGS PER SHARE

 

 


2021
Cents


2020
Cents

Basic and diluted loss per share

(0.38)

 

ENVIRONMENTAL REGULATION AND PERFORMANCE

 

The Group's operations are subject to various environmental laws and regulations under the relevant government's legislation. Full compliance with these laws and regulations is regarded as a minimum standard for all operations to achieve.

Instances of environmental non-compliance by an operation are identified either by external compliance audits or inspections by relevant government authorities.

There have been no significant known breaches by the Group during the financial year.

DIVIDENDS 

No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has been made (2020: nil).

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

 

There were no significant changes in the state of affairs of the Group during the year other than the following:

(i)  Commenced with the drawdown of the LCM finance facility prior to the submission of the Claim as noted in point (ii) below;

(ii)  On 9 September 2020, the Company announced that it had formally commenced with its international arbitration Claim following serving of its notices of arbitration under the Treaties against the Republic of Poland;

(iii)  On 17 September 2020, the Company completed a SPP to raise A$4 million (before costs) for working capital requirements and business development opportunities; and

(iv)  On 9 June 2021, Prairie announced that as part of the ongoing Claim against Poland under the Treaties, the Company had filed its Statement of Claim, claiming compensation in the amount of £806 million (A$1.5 billion or PLN 4.2 billion).

 

SIGNIFICANT EVENTS AFTER BALANCE DATE

 

On 30 July 2021, Mr Thomas Todd resigned as a Director of the Company.

 

Other than as outlined above, at the date of this report, there are no matters or circumstances, which have arisen since 30 June 2021 that have significantly affected or may significantly affect:

· the operations, in financial years subsequent to 30 June 2021, of the Consolidated Entity;

· the results of those operations, in financial years subsequent to 30 June 2021, of the Consolidated Entity; or

· the state of affairs, in financial years subsequent to 30 June 2021, of the Consolidated Entity.

DIRECTORS' INTERESTS

As at the date of this report, the Directors' interests in the securities of the Company are as follows:

 

Interest in securities at the date of this report

 

Ordinary Shares1

Mr Ian Middlemas

10,600,000

Mr Benjamin Stoikovich

1,492,262

Ms Carmel Daniele2

44,776,120

Mr Mark Pearce

3,000,000

Notes:

1   "Ordinary Shares" means fully paid Ordinary Shares in the capital of the Company.

2   As founder and controller of CD Capital, Ms Daniele has an indirect interest in the Ordinary shares and Options. CD Capital also hold the right to acquire 5,711,804 Ordinary shares through the issue of a $0.46 convertible note (Loan Note 2).

SHARE OPTIONS AND PERFORMANCE RIGHTS

At the date of this report the following unlisted securities have been issued over unissued Ordinary Shares of the Company:

· Convertible loan note with a principal amount of $2,627,430, convertible into 5,711,805 ordinary shares at a conversion price of $0.46 per share with no expiry date ("Loan Note 2").

During the year ended 30 June 2021, no Ordinary Shares have been issued as a result of the exercise/conversion of Incentive Options, Performance Rights or Loan Note 2. Subsequent to year end and up until the date of this report, no Ordinary Shares have been issued as a result of the conversion Loan Note 2.

INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS

The Constitution of the Company requires the Company, to the extent permitted by law, to indemnify any person who is or has been a Director or officer of the Company or Group for any liability caused as such a Director or officer and any legal costs incurred by a Director or officer in defending an action for any liability caused as such a Director or officer.

During or since the end of the financial year, no amounts have been paid by the Company or Group in relation to the above indemnities.

During the financial year, an annualised insurance premium of $17,312 (2020: $14,308) was paid to provide adequate insurance cover for directors and officers against any potential liability and the associated legal costs of a proceeding.

 

To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young during or since the financial year.

 

REMUNERATION REPORT (AUDITED)

This Remuneration Report, which forms part of the Directors' Report, sets out information about the remuneration of Key Management Personnel ("KMP") of the Group.

Details of KMP

Details of the KMP of the Group during or since the end of the financial year are set out below:

Current Directors

Mr Ian Middlemas Chairman

Mr Benjamin Stoikovich   Director and CEO

Ms Carmel Daniele Non-Executive Director

Mr Mark Pearce    Non-Executive Director

 

Former Directors

Mr Thomas Todd  Non-Executive Director (resigned 30 July 2021)

Mr Todd Hannigan   Alternate Director (resigned 5 February 2021)

 

Other KMP

Mr Simon Kersey  Chief Financial Officer

Mr Dylan Browne  Company Secretary

 

Unless otherwise disclosed, the KMP held their position from 1 July 2020 until the date of this report.

Remuneration Policy

The Group's remuneration policy for its KMP has been developed by the Board taking into account the size of the Group, the size of the management team for the Group, the nature and stage of development of the Group's current operations, and market conditions and comparable salary levels for companies of a similar size and operating in similar sectors. In addition to considering the above general factors, the Board has also placed emphasis on the following specific issues in determining the remuneration policy for KMP:

(a)  the Group is currently focused on undertaking exploration, appraisal and development activities;

(b)  risks associated with small cap resource companies whilst exploring and developing projects; and

(c)  other than profit which may be generated from asset sales, the Company does not expect to be undertaking profitable operations until sometime after the commencement of commercial production on any of its projects.

Executive Remuneration

The Group's remuneration policy is to provide a fixed remuneration component and a performance-based component (short term incentive and long term incentive). The Board believes that this remuneration policy is appropriate given the considerations discussed in the section above and is appropriate in aligning executives' objectives with shareholder and business objectives.

Fixed Remuneration

Fixed remuneration consists of base salaries, as well as employer contributions to superannuation funds and other non-cash benefits. Non-cash benefits may include provision of car parking and health care benefits.

Fixed remuneration is reviewed annually by the Board. The process consists of a review of company and individual performance, relevant comparative remuneration externally and internally and, where appropriate, external advice on policies and practices.

Performance Based Remuneration - Short Term Incentive ("STI")

Some executives are entitled to an annual cash incentive payment upon achieving various key performance indicators ("KPI's"), as set by the Board. Having regard to the current size, nature and opportunities of the Company, the Board has determined that these KPI's will include measures such as successful commencement and/or completion of exploration activities (e.g. commencement/completion of exploration programs within budgeted timeframes and costs), establishment of government relationship (e.g. establish and maintain sound working relationships with government and officialdom), development activities (e.g. completion of infrastructure studies and commercial agreements), corporate activities (e.g. recruitment of key personnel and representation of the company at international conferences) and business development activities (e.g. corporate transactions and capital raisings).

 

Performance Based Remuneration - Short Term Incentive ("STI") (Continued)

These measures were chosen as the Board believes they represent the key drivers in the short and medium-term success of the Company's development. On an annual basis, and subsequent to year end, the Board assesses performance against each individual executive's KPI criteria. During the 2021 financial year, no cash incentive (2020: nil) was paid, or is payable, to KMP.  

 

Performance Based Remuneration - Long Term Incentive

 

The Group has adopted a long-term incentive plan ("LTIP") comprising the grant of Performance Rights and/or Incentive Options to reward KMP and key employees and contractors for long-term performance of the Company. Shareholders approved the renewal of a Performance Rights Plan" (the "Plan") on 17 August 2017.

To achieve its corporate objectives, the Group needs to attract, incentivise, and retain its key employees and contractors. The Board believes that grants of Performance Rights and/or Incentive Options to KMP will provide a useful tool to underpin the Group's employment and engagement strategy.

(i)  Performance Rights

The Group has a Plan that provides for the issuance of unlisted Performance Rights which, upon satisfaction of the relevant performance conditions attached to the Performance Rights, will result in the issue of an Ordinary Share for each Performance Right. Performance Rights are issued for no consideration and no amount is payable upon conversion thereof.

 

The Plan enables the Group to: (a) recruit, incentivise and retain KMP and other key employees and contractors needed to achieve the Group's business objectives; (b) link the reward of key staff with the achievement of strategic goals and the long-term performance of the Group; (c) align the financial interests of participants of the Plan with those of Shareholders; and (d) provide incentives to participants of the Plan to focus on superior performance that creates Shareholder value.

 

Performance Rights granted under the Plan to eligible participants will be linked to the achievement by the Company of certain performance conditions as determined by the Board from time to time. These performance conditions must be satisfied in order for the Performance Rights to vest. The Performance Rights also vest where there is a change of control of the Company. Upon Performance Rights vesting, Ordinary Shares are automatically issued for no consideration. If a performance condition of a Performance Right is not achieved by the expiry date then the Performance Right will lapse.

During the financial year, nil Performance Rights were granted to certain KMP. 6,225,000 Performance Rights previously granted to KMP and key employees were forfeited during the financial year.

(ii)  Incentive Options

The Group has in the past also chosen to issue Incentive Options to some KMP and key employees and contractors as part of their remuneration and incentive arrangements in order to attract and retain them and to provide an incentive linked to the performance of the Company.

The Board's policy is to grant Incentive Options to KMP with exercise prices at or above market share price (at the time of agreement). As such, any Incentive Options granted to KMP are generally only of benefit if the KMP performed to the level whereby the value of the Group increased sufficiently to warrant exercising the Incentive Options granted.

Other than service-based vesting conditions (if any), there are generally no additional performance criteria attached to any Incentive Options granted to KMP, as given the speculative nature of the Group's activities and the small management team responsible for its running, it is considered that the performance of the KMP and the performance and value of the Group are closely related.

 

The Company prohibits executives entering into arrangements to limit their exposure to Incentive Options and Performance Rights granted as part of their remuneration package.

 

During the financial year, no Incentive Options were granted to KMP and key employees.  No Incentive Options were exercised by KMP during the financial year. No Incentive Options previously granted to KMP lapsed during the financial year.

 

During the year and following the LFA with LCM being signed, the Company established a Management Incentive Program ("MIP") which is a LTIP to retain key company personnel who have important historical information and knowledge to contribute towards the Claim. The MIP provides that if the Claim is successful and the Company receives damages proceeds, 6% of these proceeds will be directed to the MIP for distribution to its participants. The MIP requires that each participant must satisfy specific Claim related duties and if they do so, each participant may be entitled to a pre-defined percentage of the proceeds received by the MIP. In this regard, of the 6% of any future Claim proceeds, Mr Stoikovich (or his nominee personal services entity) will be entitled to 30% of the MIP distribution (i.e. 30% of the 6% Claim proceeds), Mr Kersey (or his nominee personal services entity) will be entitled to 20% of the MIP distribution (i.e. 20% of the 6% Claim proceeds), Mr Pearce and Mr Browne will each be entitled to 7.5% of the MIP distribution (i.e. 7.5% of the 6% Claim proceeds). The remaining 35% of the MIP distribution has been allocated to other key staff who will contribute to the Claim.

Non-Executive Director Remuneration

The Board's policy is for fees to Non-Executive Directors to be no greater than market rates for comparable companies for time, commitment and responsibilities. Given the current size, nature and risks of the Company, Incentive Options may also be used to attract and retain Non-Executive Directors. The Board determines payments to the Non-Executive Directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required.

The maximum aggregate amount of fees that can be paid to Non-Executive Directors is subject to approval by shareholders at a General Meeting. Director's fees paid to Non-Executive Directors accrue on a daily basis. Fees for Non-Executive Directors are not linked to the performance of the economic entity. However, to align Directors' interests with shareholder interests, the Directors are encouraged to hold shares in the Company and given the current size, nature and opportunities of the Company, Non-Executive Directors may receive Incentive Options in order to secure and retain their services.

Fees for the Chairman were set at $36,000 per annum (2020: $36,000) (excluding post-employment benefits).

Fees for Non-Executive Directors' were set at $20,000 per annum (2020: $20,000) (excluding post-employment benefits). These fees cover main board activities only. Non-Executive Directors may receive additional remuneration for other services provided to the Company, including but not limited to, membership of committees.

During the 2021 financial year, no Incentive Options or Performance Rights were granted to Non-Executive Directors.

The Company prohibits Non-Executive Directors entering into arrangements to limit their exposure to Incentive Options granted as part of their remuneration package.

Relationship between Remuneration of KMP and Shareholder Wealth

During the Company's exploration and development phases of its business, the Board anticipates that the Company will retain earnings (if any) and other cash resources for the exploration and development of its resource projects. Accordingly, the Company does not currently have a policy with respect to the payment of dividends and returns of capital. Therefore, there was no relationship between the Board's policy for determining, or in relation to, the nature and amount of remuneration of KMP and dividends paid and returns of capital by the Company during the current and previous four financial years.

The Board did not determine, and in relation to, the nature and amount of remuneration of the KMP by reference to changes in the price at which shares in the Company traded between the beginning and end of the current and the previous four financial years. Discretionary annual cash incentive payments are based upon achieving various non-financial key performance indicators as detailed under "Performance Based Remuneration - Short Term Incentive" and are not based on share price or earnings. However, as noted above, certain KMP may receive Incentive Options in the future which generally will be of greater value to KMP if the value of the Company's shares increases sufficiently to warrant exercising the Incentive Options.

Relationship between Remuneration of KMP and Earnings

As discussed above, the Company is currently undertaking exploration and development activities, and does not expect to be undertaking profitable operations (other than by way of material asset sales, none of which is currently planned) until sometime after the successful commercialisation, production and sales of commodities from one or more of its projects. Accordingly, the Board does not consider earnings during the current and previous four financial years when determining, and in relation to, the nature and amount of remuneration of KMP.

Remuneration of Directors and other KMP

Details of the nature and amount of each element of the remuneration of each Director and other KMP of Prairie Mining Limited are as follows:

 

 

 

Short-term benefits


Post-employment benefits
$

Non-Cash
Share-based payments
$




Total
$


Perfor-mance related
%

 


Salary & fees
$

Cash Incentive Payments
$

Directors

 

 

 

 

 

 

 

Ian Middlemas

2021

36,000

-

-

-

36,000

-

 

2020

36,000

-

-

-

36,000

-

Benjamin Stoikovich

2021

406,934

-

-

(136,837)

270,097

-

 

2020

470,991

-

-

112,041

583,032

19.2

Carmel Daniele1

2021

-

-

-

-

-

-

 

2020

-

-

-

-

-

-

Thomas Todd2

2021

20,000

-

-

-

20,000

-

 

2020

20,000

-

-

-

20,000

-

Mark Pearce

2021

20,000

-

1,900

-

21,900

-

 

2020

20,000

-

1,900

-

21,900

 

Todd Hannigan

2021

-

-

-

-

-

-

 

2020

-

-

-

-

-

-

Other KMP

 

 

 

 

 

 

 

Simon Kersey

2021

289,133

-

-

-

289,133

-

 

2020

301,465

-

-

-

301,465

-

Dylan Browne3

2021

-

-

-

(46,631)

(46,631)

-

 

2020

-

-

-

38,267

38,267

100.0

Total

2021

772,067

-

1,900

(183,468)

590,499

 

 

2020

848,456

-

1,900

150,308

1,000,664

 

Notes:

1     During the year Ms Daniele waived her Non-Executive Director remuneration. 

2   Resigned subsequent to the end of the year, on 30 July 2021.

3     Company Secretary services are provided through a services agreement with Apollo Group Pty Ltd ("Apollo Group") a company of which Mr Mark Pearce is a Director and beneficial shareholder of. During the year, Apollo Group was paid or is payable A$225,000 (2020: A$232,000) for the provision of serviced office facilities and administrative, accounting, company secretarial and transaction services to the Group.

Options and Performance Rights Granted to KMP

Details of the value of Performance Rights lapsed for KMP of the Group during the year ended 30 June 2021 are as follows:

 

2021

No. of rights granted

No. of rights vested

No. of rights lapsed

Value of rights lapsed
$

Value of rights included in remuneration
$

Other KMP

 

 

 

 

 

Benjamin Stoikovich

-

-

(500,000)

(165,000)

(136,837)

Simon Kersey

-

-

(396,000)

(201,960)

-

Dylan Browne

-

-

(150,000)

(56,250)

(46,631)

 

No Incentive Options or Performance Rights were granted as part of remuneration by the Company to KMP of the Group during the financial year.

There were no Incentive Options or Performance Rights exercised or converted by any KMP of the Group during the financial year.

Employment Contracts with Directors and KMP

Mr Stoikovich has an appointment letter dated 21 June 2018, under the terms of which he agrees to serve as a Director of the Company. Mr Stoikovich's appointment letter is terminable, pursuant to the Company's Constitution, by giving the Company notice in writing. Under the updated appointment letter, Mr Stoikovich receives a fixed fee of £25,000 per annum.

 

During the financial year, Selwyn Capital Limited ( Selwyn ), a company of which Mr Stoikovich is a director and shareholder, had a consulting agreement with the Company to provide project management and capital raising services (CEO services). Under this agreement, Selwyn is paid a fixed annual consultancy fee of £112,500 per annum and an annual incentive payment of up to £100,000 payable upon the successful completion of key milestones as determined by the Board. In addition, Selwyn, is entitled to receive a payment incentive worth the aggregate fixed yearly directors fees and consultancy fee in the event of a change of control clause being triggered with the Company. The consulting contract can be terminated by either Selwyn or the Company by giving twelve months' notice. No amount is payable to Selwyn in the event of termination of the contract arising from negligence or incompetence in regard to the performance of services specified in the contract. Further, Arbitration Advisory Ltd (A-Advisory), a company of which Mr Stoikovich is a director and shareholder, had a consulting agreement with the Company's wholly owned subsidiary, PDZ Holdings Pty Ltd ( PDZ-H ), to provide services in relation to the Claim against the Republic of Poland. Under this agreement, A-Advisory is paid a fixed annual consultancy fee of £112,500 per annum. The term of the consulting agreement is two and half years from 1 July 2020. The consulting contract can be terminated by either A-Advisory or PDZ-H by giving six months' notice. No amount is payable to A-Advisory in the event of termination of the contract arising from negligence or incompetence in regard to the performance of services specified in the contract.

 

Mr Simon Kersey, Chief Financial Officer, is engaged under a consultancy deed with Cheyney Resources Limited (Cheyney). The agreement specifies the duties and obligations to be fulfilled by Mr Kersey as the Chief Financial Officer. The Company may terminate the agreement with six months written notice. No amount is payable in the event of termination for material breach of contract, gross misconduct or neglect. Cheyney receives an annual consultancy fee of £55,000 and will be eligible for a cash incentive of up to £50,000 per annum to be paid upon successful completion of KPIs. In addition, Cheyney, will be entitled to receive a payment incentive worth six months of the annual consultancy fee in the event of a change of control clause being triggered with the Company. Further, Cheyney Arbitration Ltd (Cheyney Advisory), a company of which Mr Kersey is a director and shareholder, had a consulting agreement with the Company's wholly owned subsidiary, PDZ Holdings Pty Ltd ( PDZ-H ), to provide services in relation to the Claim against the Republic of Poland. Under this agreement, A-Advisory is paid a fixed annual consultancy fee of £105,000 per annum. The term of the consulting agreement is two and half years from 1 July 2020. The consulting contract can be terminated by either Cheyney Advisory or PDZ-H by giving six months' notice. No amount is payable to Cheyney Advisory in the event of termination of the contract arising from negligence or incompetence in regard to the performance of services specified in the contract.

 

Mr Browne, Company Secretary, has a services agreement with the Company to provide corporate and financial services with the Company.  Either party may terminate the agreement by giving one month written notice. Under the services agreement, Mr Browne receive cash and/or incentive securities in the Company. Mr Browne is also entitled to receive a fee worth $100,000 in the event of a change of control clause being triggered with the Company.

 

Loans from KMP

 

No loans were provided to or received from KMP during the year ended 30 June 2021 (2020: Nil).

 

Other Transactions

 

Apollo Group Pty Ltd, a company of which Mr Mark Pearce is a Director and beneficial shareholder, was paid or is payable $225,000 (2020: $232,000) for the provision of serviced office facilities and administration services. The amount is based on a current monthly retainer of $20,000 (2020: $20,000) due and payable in advance, with no fixed term, and is able to be terminated by either party with one month's notice. This item has been recognised as an expense in the Statement of Profit or Loss and other Comprehensive Income. At 30 June 2021, $20,000 (2020: $20,000) was included as a current liability in the Statement of Financial Position.

 

As founder and controller of CD Capital, Ms Daniele has an interest in in CD Capital to convert Loan Note 2 into 5,711,804 Ordinary shares through the issue of the $0.46 convertible note.

 

Equity instruments held by KMP

Incentive Option and Performance Right holdings of KMP

2021

Held at
1 July 2020

Granted as Remuner-ation

Vested Securities Exercised/
Converted

Expired/
Lapsed

Held at
30 June 2021

Vested and exercise-  able at 30 June 2021

Directors

 

 

 

 

 

 

Ian Middlemas

-

-

-

-

-

-

Benjamin Stoikovich

1,460,000

-

-

(1,460,000)1

-

-

Carmel Daniele2

22,388,060

 

 

(22,388,060)

-

-

Thomas Todd

-

-

-

-

-

-

Mark Pearce

-

-

-

-

-

-

Todd Hannigan

-

-

-

-

-

 

Other KMP

 

 

 

 

 

 

Simon Kersey

396,000

-

-

(396,000)1

-

-

Dylan Browne

345,000

-

-

(345,000)1

-

-

Notes:

Forfeiture of Performance Rights following the performance condition not being achieved prior to the expiry date.

As founder and controller of CD Capital, Ms Daniele was deemed to have an interest in the CD Options.

 

Shareholdings of KMP

2021

Held at
1 July 2020

Granted as Remuneration

Options Exercised/
Rights Converted

Participation in SPP

Directors

 

 

 

 

 

Ian Middlemas

10,600,000

-

-

-

10,600,000

Benjamin Stoikovich

1,492,262

-

-

-

1,492,262

Carmel Daniele1

44,776,120

-

-

-

44,776,120

Thomas Todd2

2,800,000

-

-

-

2,800,000

Mark Pearce

3,000,000

-

-

-

3,000,000

Todd Hannigan

3,504,223

-

-

120,000

3,624,2233

Other KMP

 

 

 

 

 

Simon Kersey

-

-

-

-

-

Dylan Browne

-

-

-

-

-

Notes:

1   As founder and controller of CD Capital, Ms Daniele is deemed to have an interest in the 44,776,120 Ordinary Shares issued to CD Capital on conversion of Loan Note 1 in 2018.

2   Resigned subsequent to the end of the year, on 30 July 2021.

3   As at resignation date being 5 February 2021.

 

End of Remuneration Report

 

DIRECTORS' MEETINGS

 

The number of meetings of Directors held during the year and the number of meetings attended by each Director was as follows:

 

 

Board Meetings

 

Number eligible to attend

Number attended

Ian Middlemas

2

2

Benjamin Stoikovich

2

2

Carmel Daniele

2

2

Thomas Todd (resigned 30 July 2021)

2

2

Mark Pearce

2

2

Todd Hannigan (Alternate director to Mr Todd - resigned 5 February 2021)

-

-

 

There were no Board committees during the financial year. The Board as a whole currently performs the functions of an Audit Committee, Risk Committee, Nomination Committee, and Remuneration Committee, however this will be reviewed should the size and nature of the Company's activities change.

NON-AUDIT SERVICES

Non-audit services provided by our auditors, Ernst & Young and related entities, are set out below. The Directors are satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act. The nature and scope of each type of non-audit service provided means that auditor independence was not compromised.

 

 

2021

$

2020

$

Preparation of income tax return and other tax related advice

9,000

25,875

DIVIDENDS

No dividends have been declared, provided for or paid in respect of the financial year ended 30 June 2021 (2020: nil).

AUDITOR'S INDEPENDENCE DECLARATION

The lead auditor's independence declaration for the year ended 30 June 2021 has been received and can be found on page 16 of the Annual Report published on the Company's website.

 

 

Signed in accordance with a resolution of the Directors.

 

 

Benjamin Stoikovich

Director

 

24 September 2021

 

Forward Looking Statements

This release may include forward-looking statements. These forward-looking statements are based on Prairie's expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Prairie, which could cause actual results to differ materially from such statements. Prairie makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2021

 

 

 

 

2021

 

2020

 

 

$

$

 

 

 

 

Revenue

 

297,875

456,726

Other income

 

4,711,133

906,036

Exploration and evaluation expenses

 

(824,247)

(1,854,827)

Employment expenses

 

(326,174)

(453,025)

Administration and corporate expenses

 

(371,366)

(245,773)

Occupancy expenses

 

(580,024)

(526,231)

Business development expenses

 

(256,380)

(299,241)

Share-based payment reversal/(expenses)

 

548,745

(163,613)

Arbitration related expenses

 

(4,048,329)

(906,036)

Impairment expenses

 

-

(154,850)

Other expenses

 

(30,621)

(66,766)

Loss before income tax

 

(879,388)

(3,307,600)

Income tax expense

 

-

-

Net loss for the year

 

(879,388)

(3,307,600)

 

 

 

 

Net loss attributable to members of Prairie Mining Limited

 

(879,388)

(3,307,600)

 

 

 

 

Other comprehensive income

 

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

Exchange differences on translation of foreign operations

 

(741,871)

(56,043)

Total other comprehensive income/(loss) for the year, net of tax

 

(741,871)

(56,043)

Total comprehensive loss for the year, net of tax

 

(1,621,259)

(3,363,643)

 

 

 

 

Total comprehensive loss attributable to members of Prairie Mining Limited

 

(1,621,259)

(3,363,643)

 

 

 

 

Basic and diluted loss per share from (cents per share)

 

(0.38)

(1.52)

 

The above Consolidated Statement of Profit or Loss and other Comprehensive Income should be read in conjunction with the accompanying notes.

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2021

 

 

 

 

2021

 

2020

 

 

$

$

ASSETS

 

 

 

Current Assets

 

 

 

Cash and cash equivalents 

 

4,774,968

2,566,518

Trade and other receivables 

 

1,329,336

1,631,500

Total Current Assets

 

6,104,304

4,198,018

 

 

 

 

Non-current Assets

 

 

 

Property, plant and equipment

 

2,009,783

2,438,254

Total Non-current Assets

 

2,009,783

2,438,254

 

 

 

 

TOTAL ASSETS

 

8,114,087

6,636,272

 

 

 

 

LIABILITIES

 

 

 

Current Liabilities

 

 

 

Trade and other payables

 

1,136,567

1,601,109

Other financial liabilities

 

808,601

271,195

Provisions

 

100,838

257,562

Total Current Liabilities

 

2,046,006

2,129,866

 

 

 

 

Non-Current Liabilities

 

 

 

Other financial liabilities

 

-

166,981

Provisions

 

383,968

340,873

Total Non-Current Liabilities

 

383,968

507,854

 

 

 

 

TOTAL LIABILITIES

 

2,429,974

2,637,720

 

 

 

 

NET ASSETS

 

5,684,113

3,998,552 

 

 

 

 

EQUITY

 

 

 

Contributed equity

 

79,332,108

75,476,543

Reserves

 

345,909

1,636,525

Accumulated losses

 

(73,993,904)

(73,114,516)

TOTAL EQUITY

 

5,684,113

3,998,552 

 

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2021

 

 

Contributed Equity

Share- Based Payments Reserve

Foreign Currency Translation Reserve

Accumulated Losses

Total
Equity

 

$

$

$

$

$

 

 

 

 

 

 

Balance at 1 July 2020

75,476,543

548,745

1,087,780

(73,114,516)

3,998,552 

Net loss for the year

-

-

-

(879,388)

(879,388)

Other comprehensive income:

 

 

 

 

 

Exchange differences on translation of foreign operations

-

-

(741,871)

-

(741,871)

Total comprehensive loss for the year

-

-

(741,871)

(879,388)

(1,621,259)

 

 

 

 

 

 

Issue of shares

4,020,000

-

-

-

4,020,000

Share issue costs

(164,435)

-

-

-

(164,435)

Lapse of unvested Performance Rights

-

(661,876)

-

-

(661,876)

Recognition of share-based payments

-

113,131

-

-

113,131

Balance at 30 June 2021

79,332,108

-

345,909

(73,993,904)

5,684,113

 

 

 

 

 

 

Balance at 1 July 2019

75,491,413

887,600

1,143,823

(70,214,248)

7,308,588

Effect of adoption of AASB 16

-

-

-

(95,137)

(95,137)

Balance at 1 July 2019 - restated

75,491,413

887,600

1,143,823

(70,309,385)

7,213,451

Net loss for the year

-

-

-

(3,307,600)

(3,307,600)

Other comprehensive income:

 

 

 

 

 

Exchange differences on translation of foreign operations

-

-

(56,043)

-

(56,043)

Total comprehensive loss for the year

-

-

(56,043)

(3,307,600)

(3,363,643)

 

 

 

 

 

 

Prepaid SPP share issue costs

(14,870)

 

-

 

(14,870)

Expiry of Incentive Options

-

(502,469)

-

502,469

-

Lapse of unvested Performance Rights

-

(286,450)

-

-

(286,450)

Recognition of share-based payments

-

450,064

-

-

450,064

Balance at 30 June 2020

75,476,543

548,745

1,087,780

(73,114,516)

3,998,552 

 

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

 

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2021

 

 

 

 

2021

 

2020

 

 

$

$

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

Payments to suppliers and employees 

 

(2,542,673)

(4,249,738)

Proceeds from property and gas sales

 

274,672

396,303

Interest received from third parties 

 

23,592

80,807

NET CASH FLOWS USED IN OPERATING ACTIVITIES

 

(2,244,409)

(3,772,628)

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

Payment for plant and equipment

 

(2,310)

-

Payments for arbitration related expenses

 

(1,640,646)

-

Proceeds from advanced deposits and sale of land rights

 

1,288,105

-

Proceeds from sale of subsidiary

 

17,215

-

NET CASH FLOWS USED IN INVESTING ACTIVITIES

 

(337,636)

-

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

Proceeds from issue of ordinary shares

 

4,020,000

-

Payments for share issue costs

 

(164,435)

-

Receipts from arbitration funding

 

1,102,962

(14,870)

Payments for lease liability

 

(168,032)

(274,355)

NET CASH FLOWS FROM/(USED) IN FINANCING ACTIVITIES

 

4,790,495

(289,225)

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 

2,208,450

(4,061,853)

Cash and cash equivalents at beginning of year

 

2,566,518

6,628,371

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

 

4,774,968

2,566,518

 

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

 

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END
 
 
FR PPUUUBUPGUQB

a d v e r t i s e m e n t