We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Greatland Gold Plc | LSE:GGP | London | Ordinary Share | GB00B15XDH89 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.16 | -2.71% | 5.74 | 5.70 | 5.80 | 5.95 | 5.65 | 5.95 | 23,082,118 | 16:35:27 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 0 | -21.12M | -0.0041 | -14.02 | 292.7M |
From Apr 2019 to Apr 2024
TIDMGGP
RNS Number : 3750E
Greatland Gold PLC
05 November 2020
5 November 2020
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).
Greatland Gold plc
("Greatland", "the Group" or "the Company")
Final Results
Greatland Gold plc (AIM:GGP), the precious and base metals exploration and development company, announces its financial results for the year ended 30 June 2020.
Chairman's Statement
I am pleased to report on the Company's audited results for the year ended 30 June 2020.
It has been a transformational year for Greatland Gold plc ("Greatland" or the "Group"). The Havieron gold-copper deposit, purchased as an early stage exploration project in September 2016, has been a game changer for the Company and, as we look to the year ahead, we remain excited by the exploration potential at both Havieron and our other key prospects in the Paterson region.
Greatland completed two successful exploration campaigns at Havieron in 2018, which were instrumental in securing a US$65 million Farm-In Agreement with Newcrest Operations Limited ("Newcrest"), a wholly-owned subsidiary of Newcrest Mining Limited (ASX:NCM). Since Newcrest commenced its exploration programme at Havieron in May 2019, it has completed more than 100,000 meters of drilling at the project.
A series of excellent drill results to date from Havieron have continued to extend the footprint of mineralisation, and an initial resource is on track to be delivered before the end of calendar 2020. Subsequent to the year end, a Mining Lease was granted for the Havieron deposit and work continues at a rapid pace to support the potential commencement of early works activities at Havieron in late 2020 or early 2021.
Our success at Havieron has not dimmed our appetite for discoveries and we are excited by our other exploration prospects, particularly in the Paterson region where Greatland has an entrenched position and is leading a wave of new investment and exploration in the region. Key developments for the year across Greatland's portfolio of exploration projects are detailed in the Strategic Report, but I would like to briefly note some further highlights.
Havieron and the Paterson region
Excellent progress was made at Havieron over the past 12 months, with Newcrest completing the first two stages of the Farm-in Agreement to earn a 40% interest in the project. Stage three is currently progressing with the exploration programme focused on both infill drilling to deliver an initial resource before the end of this calendar year and step out drilling to define the extent of the mineralised system.
During the year, Newcrest reported a series of excellent exploration results from the drilling campaign at Havieron, with multiple exceptional results from infill drilling, including 109m @ 6.3g/t Au, 0.71% Cu (HAD059). By the end of the financial year, drill results from Havieron had demonstrated improved continuity in the high-grade crescent sulphide zone and extended the strike length of mineralisation to 550 metres in the upper 200 metres of that zone.
Subsequent to the year end, Newcrest has reported three further sets of excellent drilling results which have highlighted the potential for a broad bulk tonnage target at Havieron in the new Northern Breccia zone. The latest set of drilling results included the best intercept to date at Havieron (120.7m @ 9.3g/t Au and 0.18% Cu from 1349.3m - HAD065W2) and identified a potential new target area, the Eastern Breccia. Additionally, infill drilling results since year end have continued to demonstrate geological and grade continuity within the high-grade crescent sulphide zone and surrounding breccia in the south east.
An initial resource for Havieron is expected to be delivered in calendar Q4 2020. Results from Havieron continue to support the ongoing investigation of both high-grade selective and bulk mining methods. Environmental and baseline studies are progressing to support the potential commencement of a decline at Havieron by end of calendar year 2020 or early 2021, subject to market and operating conditions and receipt of all necessary permits, consents and approvals. Newcrest continues to investigate the potential to achieve commercial production within two to three years from commencement of decline.
In addition to exploration activities, progress has been made towards securing the necessary permissions for the commencement of early works activities at Havieron. Notably, in September 2020, the Western Australian Department of Mines, Industry Regulation and Safety ("DMIRS") granted Mining Lease application 45/1287 for the Havieron gold-copper deposit. Subsequently, a Mining Proposal for early works activities, including the construction of a boxcut and decline at the Havieron deposit, has been lodged with DMIRS.
The intention remains, subject to a positive Feasibility Study outcome, for the ore from Havieron to be toll processed at Newcrest's Telfer Gold Mine, 45 kilometres to the west of Havieron. There is a clear advantage here for both parties as it lowers upfront capital costs, reduces time to production, and potentially delivers a significantly higher net present value for the project.
In addition to Havieron, Greatland holds an impressive footprint in the highly prospective Paterson region, including several other prospects that display similar geophysical characteristics to the Havieron gold-copper deposit. Our current exploration campaign in the Paterson region, which commenced in late-August 2020, is focused on drill testing high-priority targets within the Scallywag prospect area including Kraken, Blackbeard and London.
Corporate
Greatland continues to invest in its team and infrastructure to ensure we have the right people and processes in place, befitting of the significant leap forward that our company has taken and to match our ambitious plans as we look into the future.
In July 2020, we appointed Berenberg and Hannam & Partners as Joint Corporate Brokers and Financial Advisers as we continue to expand our institutional investor base in line with the development of the Company.
The Company is well capitalised to accelerate its exploration plans in the Paterson region and across its other projects, supported by both a successful fundraise in August 2019 (GBP3,958,672 net of costs) as well as the exercise of warrants and options through the year (an additional GBP3,802,724). The Group's cash deposits stood at GBP6,022,745 at 30 June 2020.
Greatland is committed to safe, responsible and sustainable exploration and we continue to focus on improving health and safety training and processes, and on further strengthening our relationships with the indigenous communities in the areas that we operate.
COVID-19
On 11 March 2020, the World Health Organisation declared the COVID-19 Coronavirus outbreak to be a pandemic in recognition of its rapid spread across the globe, with over 200 countries now affected. Many governments are taking increasingly stringent steps to help contain or delay the spread of the virus and as a result there is a significant increase in economic uncertainty.
For the Group's 30 June 2020 financial statements, the Directors have taken into consideration the Coronavirus outbreak and the related impacts concluded there to be no material impact on the recognition and measurement of assets and liabilities. Due to the uncertainty of the outcome of current events, the Group will continue to assess the impact on the Group's financial position, results of operations or cash flows.
Due to the COVID-19 pandemic, the business experienced some minor delays to exploration activities in some jurisdictions during the year. All projects have followed government requirements and health guidelines while focusing on protecting the well-being of local and indigenous communities. The Company is committed to a safe working environment and has implemented monitoring and preventative measures to mitigate the impact of COVID-19 on its workforce and stakeholders to develop a COVID safe environment that adheres to health and Government advice and restrictions.
Fortunately, Greatland benefits from the remote location of its key operations in Western Australia, where the total number of cases recorded across the entire state is less than 800 in total and daily new cases are in the single figures at present. At Havieron, Newcrest have implemented and maintained measures to reduce and mitigate the risk of the COVID-19 pandemic to its project workforce and key stakeholders, and operations have continued without interruption. Nevertheless, I would like to reiterate that the health and safety of our staff, partners and stakeholders has always been of paramount importance to the board and it is even more so in our focus now.
Looking ahead
Greatland today is a vastly different looking company to what it was a year ago. There is still much work to do, but at Havieron tremendous progress has been made in advancing a potential world class discovery. In addition to our cornerstone project at Havieron, we have several other excellent prospects, including an enviable footprint in the Paterson region, arguably one of the most attractive frontiers in the world for the discovery of tier-one, gold-copper deposits.
On a macro level, strong tailwinds appear to be supporting gold prices, with the increasing uncertainty in global markets due to COVID-19 driving unprecedented fiscal and monetary stimulus. We also believe the gold price will be further supported by supply challenges, as major new gold discoveries in safe jurisdictions become less frequent and reserves at larger deposits are depleted.
The massive strides we have taken over the past year are a credit to our management team and their strategy. With a proven expertise and track record of identifying underdeveloped opportunities in the region, we are in an excellent position to maximise shareholder value.
I would like to end by thanking my fellow Board members, the management team and our staff, for their hard work and commitment to the Company over the past year. Finally, I would like to thank all our shareholders for their support and feedback, and we are delighted that you have been able to share in the Company's success. We promise we are working tirelessly to ensure the following year will be as successful as this last one has been.
Alex Borrelli
Chairman
Strategic Report
Principal activities, strategy and business model
The principal activity of the Group is to explore for and develop natural resources, with a focus on gold. The Board seeks to increase shareholder value by the systematic evaluation of its existing resource assets, and by acquiring exploration and development projects in underexplored areas.
The Group's strategy and business model is developed by the Chief Executive Officer and is approved by the Board. The executive directors who report to the Board are responsible for implementing the strategy and managing the business.
The Group's primary strategy is to advance projects that have potential for the discovery of large mineralised systems (typically considered to be in excess of one million ounces of gold) through the various stages of exploration and development with a view to monetising at least one or more of those projects, whether through an outright sale, joint venture, or spin-out via initial public offering, within a three to five year period.
Business development and performance
The financial year ended 30 June 2020 proved to be a period of exceptional progress for the Company. In particular, the outstanding exploration success at the Havieron Joint Venture in the Paterson region of Western Australia (60% Greatland, 40% Newcrest) continued with infill and step out drilling returning excellent results and expanding the known area of mineralisation.
In addition to the success at the Havieron Joint Venture, significant progress was made at a number of the Company's other exploration projects. Most notably, a number of high-priority targets with similar geophysical characteristics to the Havieron deposit, were identified by the Company's ongoing exploration work in the Paterson region.
Further details on the progress at the Havieron Joint Venture and at the Company's other exploration projects is provided in the "Review of key developments by project" section below.
The Group's financial position was further strengthened during the year by the successful raise of GBP3,958,672 of new equity (net of costs) and a further GBP3,802,724 on the exercise of warrants and options. The Group's cash deposits stood at GBP6,022,745 at 30 June 2020 (compared to GBP2,755,998 at 30 June 2019). These funds will be used to accelerate exploration across key projects, particularly in the Paterson region.
Review of key developments by project
Havieron Joint Venture, Western Australia (60% Greatland, 40% Newcrest)
In March 2019, Greatland entered into a Farm-in Agreement with Newcrest Operations Limited, a wholly-owned subsidiary of Newcrest Mining Limited (ASX:NCM), to explore and develop Greatland's Havieron gold-copper discovery in the Paterson region of Western Australia. Newcrest has the right to earn up to a 70% interest in a 12-block area, previously within E45/4701, that covers the Havieron target by spending up to US$65m. Newcrest may acquire an additional 5% interest at the end of the Farm-in period at fair market value. The Farm-in Agreement includes tolling principles reflecting the intention of the parties that, subject to a successful exploration programme and feasibility study, the resulting joint venture ore will be processed at Telfer, located 45km west of Havieron.
During the period, Newcrest completed Stage 2 of the Farm-in Agreement. In accordance with the terms of the Farm-in Agreement, Newcrest has earned a 40% interest in the Havieron Project. Newcrest is now progressing Stage 3 work programs including ongoing exploration drilling and studies to support early development options.
In June 2020, a series of agreements were executed in relation to the Havieron project variously between Newcrest Operations Limited, Western Desert Lands Aboriginal Corporation (Jamukurnu-Yapalikunu), the Prescribed Body Corporate for the Martu People of the Central Western Desert region in Western Australia ("WDLAC"), Greatland Gold plc and Greatland Pty Ltd ("GPL"). Newcrest and WDLAC are parties to an Indigenous Land Use Agreement ("ILUA") which relates to the use of native title land across Newcrest's current operations at Telfer and its activities within a 60 kilometre radius around Telfer, which includes its exploration activities at Havieron. Under these agreements, the parties have agreed that the ILUA will apply to any future development activities of the Joint Venture Participants (Newcrest and Greatland ) at Havieron. The ILUA establishes a comprehensive framework between WDLAC, acting on behalf of the Martu People, and the Joint Venture Participants (Newcrest and Greatland), in regard to any future development activities at Havieron, including mine construction and mine operation.
Subsequent to the financial year end, the Western Australian Department of Mines, Industry Regulation and Safety ("DMIRS") granted Mining Lease application 45/1287 for the Havieron gold-copper deposit. The Mining Lease covers the 12 block area that is subject to the Farm-in Agreement between Greatland and Newcrest dated 12 March 2019. Subsequently, a Mining Proposal for early works activities, including the construction of a boxcut and decline at the Havieron deposit, has been lodged with DMIRS.
During the year, Newcrest reported a series of excellent exploration results from the drilling campaign at Havieron, with multiple exceptional results from infill drilling, including 109m @ 6.3g/t Au, 0.71% Cu (HAD059). By the end of the financial year, drill results from Havieron had demonstrated improved continuity in the high-grade crescent sulphide zone and extended the strike length of mineralisation to 550 metres in the upper 200 metres of that zone.
Subsequent to the year end, Newcrest has reported three further sets of excellent drilling results which have highlighted the potential for a broad bulk tonnage target at Havieron in the new Northern Breccia zone. The latest set of drilling results included the best intercept to date at Havieron (120.7m @ 9.3g/t Au and 0.18% Cu from 1349.3m - HAD065W2) and identified a potential new target area, the Eastern Breccia. Additionally, infill drilling results since year end have continued to demonstrate geological and grade continuity within the high-grade crescent sulphide zone and surrounding breccia in the south-east.
An initial resource for Havieron is expected to be delivered in calendar Q4 2020. Results from Havieron continue to support the ongoing investigation of both high-grade selective and bulk mining methods. Environmental and baseline studies are progressing to support the potential commencement of a decline at Havieron by end of calendar year 2020 or early 2021, subject to market and operating conditions and receipt of all necessary permits, consents and approvals. Newcrest continues to investigate the potential to achieve commercial production within two to three years from commencement of decline.
Paterson project, Western Australia (100% owned)
The Paterson project, excluding the Havieron Joint Venture, comprises three granted exploration licences (the Havieron, Paterson Range East and Black Hills licences), and one licence application (the Rudall licence application area). The three granted licences and the licence application are located in the Paterson region of northern Western Australia and are 100% owned by Greatland. The four licences collectively comprise approximately 450 square kilometres of ground which is considered prospective for intrusion related gold-copper systems and Telfer style gold deposits.
In June 2020, Newcrest and Greatland entered into a series of agreements in relation to the Havieron licence (E45/4701), including the Tenement Management and Re-Transfer Agreements, in order to support the lodgement of a Mining Lease application for the 12 blocks, at that time within the Havieron licence, that are subject to the Farm-in Agreement with Newcrest dated 12 March 2019. As a result, in September 2020, Mining Lease 45/1287 was granted in respect of the 12 blocks the subject of the Farm-in Agreement in which, at the date of the report is Greatland has a 60% legal and beneficial interest and Newcrest a 40% interest. Greatland retains a 100% interest over the remaining 31 blocks under the Havieron exploration licence E45/4701.
The Havieron, Paterson Range East and Black Hills licences are subject to a right of first refusal in accordance with the Farm-in Agreement with Newcrest dated 12 March 2019. During the Farm-in and Havieron Joint Venture periods, Newcrest have a right of first refusal over the Havieron licence. During the Farm-in period, Newcrest have a right of first refusal over the Black Hills and Paterson Range East licences.
During the financial year, Greatland continued to conduct systematic exploration campaigns across its three granted Paterson licences.
Geophysical surveys, including ground gravity and induced polarization ("IP"), were conducted across the Scallywag prospect area within the Havieron licence (over the areas of the Havieron licence not subject to the Farm-in with Newcrest). A review of the geophysical data highlighted multiple high-priority targets for drill testing, including Kraken, London, Blackbeard and Barbossa.
At Paterson Range East, the Company conducted aeromagnetic and ground gravity surveys which were used for detailed modelling and target generation. The results of these activities identified multiple high-priority targets identified, including several with similar geophysical characteristics to Havieron. Subsequently, a mobile metal ion ("MMI") geochemical surface soil sampling survey was also completed, with results upgrading the Goliath target and identifying three new additional targets.
During the year, the Company also completed its first drilling campaign at the Saddle Reefs target within the Black Hills licence. Previous field exploration work at Saddle Reefs had successfully identified multiple gold nuggets at surface and established a strike length of high-grade gold mineralisation at surface of up to 800 metres. Two subsequent IP surveys identified a chargeability anomaly over 1.4 kilometres in length, part of which is spatially coincident with the surface gold mineralisation. A drill programme was subsequently designed to test the 1.4km anomaly, which commenced in July 2019. Initial results from the drilling programme confirmed the presence of gold mineralisation at Black Hills with best results including 13m @ 2.01g/t Au from 67m (SRRC012). In addition to the drilling campaign at Black Hills, a subsequent ground gravity survey conducted across the licence area identified three additional targets including the Parlay target.
Subsequent to the financial year end, the Company commenced a drilling campaign in the Paterson, with an initial focus on high-priority targets within the Scallywag prospect area including Kraken, Blackbeard and London. In addition, the Company commenced an Airborne Electromagnetic ("AEM") survey, covering 1,033 line kilometres across the western portion of the Company's Paterson project.
Firetower project, Tasmania (100% owned)
The Firetower project is located in central north Tasmania, Australia, and covers an area of 62 square kilometres. Historic drilling at the Firetower prospect has identified significant gold mineralisation from surface (up to 30g/t).
During the year, the Company completed a drilling programme at the Firetower and Firetower East prospects, which included 16 diamond drill holes for over 2,200m of drilling. At Firetower, drilling was done on north-south traverses to test a chargeability anomaly highlighted by an Induced Polarisation ("IP") survey conducted in 2018. Results from drilling at Firetower confirmed good continuity of mineralisation, with best results including 54.5m @ 1.36g/t Au from surface (2019FTD001) and 13.5m @ 2.44g/t Au from 59.5m (2019FTD011). In addition, the programme defined mineralisation over a strike length of more than 200m, which remains open along strike to the east and west, and also demonstrated a robust southerly dipping mineralised zone up to 50m wide, persisting to depths of 125m, which remains open at depth.
Panorama project, Western Australia (100% owned)
The Panorama project consists of three adjoining exploration licences, covering 155 square kilometres, located in the Pilbara region of Western Australia, in an area that is considered to be highly prospective for gold.
During the period, the Company continued field exploration at Panorama which included field reconnaissance, surface geochemical work and airborne magnetics. The Company completed a systematic, grid based, surface geochemical soil sampling programme at Panorama during July and August 2019 which involved the collection of 468 samples over approximately 4.5km of strike. Results of soil sampling confirmed the presence of gold anomalism along the main mineralised trend previously identified by rock chips and coarse gold (nuggets).
Results from the airborne magnetic survey highlighted a NE-SW oriented anomaly, clearly identifiable from magnetic derivative images, coincident with an anomalous gold trend identified from soil geochemistry.
Ernest Giles project, Western Australia (100% owned)
The Ernest Giles project is located in central Western Australia, covering an area of approximately 850 square kilometres. The Ernest Giles project includes two granted exploration licences (Calanchini and Peterswald Hill), and two licence applications (Westwood North and Westwood West). The eastern Yilgarn Craton is one of the most highly mineralised areas in Western Australia and is considered prospective for large gold deposits.
During the period, Greatland carried out comprehensive geological and geophysical interpretation and targeting and ran historical diamond drill core through Minalyze(c) analysis. Following a comprehensive review of all data for the Ernest Giles project, the Board decided that the Company should focus on high priority targets within the project and, consequently, the Empress North ( E38/3228) , Empress (E38/3183) and Ida Range (E38/8134) licences were relinquished, thereby enabling work to be concentrated on higher priority targets within the retained project licences.
Warrentinna project, Tasmania (100% owned)
The Warrentinna project is located 60 kilometres north east of Launceston in north eastern Tasmania and covers an area of 37 square kilometres with 15 kilometres of strike prospective for gold. During the period, Greatland conducted a diamond drilling programme at the Derby North prospect. Drilling intersected high-grade gold mineralisation and increased the depth extent of known mineralization in the area. Best results included 21.7m @ 3.3g/t Au from 9.3m, including 2.2m @ 12g/t Au (2019WTD001), and 43m @ 1.5g/t Au from 10m (2019WTD003). The Company is evaluating the results to assess the project's potential, referencing Orogenic-type gold occurrences in central Victoria.
Bromus project, Western Australia (100% owned)
The Bromus project is located 25 kilometres south west of Norseman in the southern Yilgarn region of Western Australia. The Bromus project consists of two granted exploration licences, including a new licence, Bromus North (E63/1953), which was granted in September 2019. The two licences cover approximately 84 square kilometres of relatively under-explored greenstone and intrusive granites of the Archean Yilgarn Block at the southern end of the Kalgoorlie-Norseman belt. During the period, Greatland undertook a comprehensive data review, including reprocessing and remodelling of historic data to aide field work. In addition, resampling and analysis of historic drill samples and new soil sampling was also undertaken. Results are being interpreted to assist with future exploration targeting.
The Final Results for the year ended 30 June 2020 will be published on the Company's website - www.greatlandgold.com , where further details regarding exploration activities during the year can also be found.
Gervaise Heddle
Chief Executive Officer
Enquiries:
Greatland Gold PLC
Gervaise Heddle/Callum Baxter
Tel: +44 (0)20 3709 4900
Email: info@greatlandgold.com
www.greatlandgold.com
SPARK Advisory Partners Limited (Nominated Adviser)
Andrew Emmott/James Keeshan
Tel: +44 (0)20 3368 3550
Berenberg (Joint Corporate Broker and Financial Adviser)
Matthew Armitt/Jennifer Wyllie/Detlir Elezi
Tel: +44 (0)20 3207 7800
Hannam & Partners (Joint Corporate Broker and Financial Adviser)
Andrew Chubb/Matt Hasson/Jay Ashfield
Tel: +44 (0)20 7907 8500
SI Capital Limited (Joint Broker)
Nick Emerson/Alan Gunn
Tel: +44 (0)14 8341 3500
Luther Pendragon (Media and Investor Relations)
Harry Chathli/Alexis Gore/Joe Quinlan
Tel: +44 (0)20 7618 9100
Notes for Editors:
Greatland Gold plc is a London Stock Exchange AIM-listed (AIM:GGP) natural resource exploration and development company with a current focus on precious and base metals. The Company has six main projects; four situated in Western Australia and two in Tasmania.
In March 2019, Greatland signed a Farm-in Agreement with Newcrest Operations Limited, a wholly-owned subsidiary of Newcrest Mining Limited (ASX:NCM), to explore and develop Greatland's Havieron gold-copper deposit in the Paterson region of Western Australia. Newcrest has the right to earn up to a 70% interest in Mining Lease 45/1287, a 12 block area that covers the Havieron deposit, by spending up to US$65 million.
Greatland is seeking to identify large mineral deposits in areas that have not been subject to extensive exploration previously. It is widely recognised that the next generation of large deposits will come from such under-explored areas and Greatland is applying advanced exploration techniques to investigate a number of carefully selected targets within its focused licence portfolio.
The Company is also actively investigating a range of new opportunities in precious and strategic metals and will update the market on new opportunities as and when appropriate.
Group statement of comprehensive income
for the year ended 30 June 2020
Hot Features
Premium
Notes Year ended Year ended
30 June 30 June
2020 2019
GBP GBP
Revenue 2 - -
Exploration costs (3,392,789) (2,309,760)
Administrative expenses (1,632,571) (888,661)
Depreciation (67,396) (37,131)
Amortisation 12 (65,230)
Impairment cost (38,376) (18,450)
------------ ------------
Operating loss (5,196,362) (3,254,002)
------------ ------------
Other income 55,438 -
Finance income 3 17,663 5,195
Finance costs 3 (21,734) (15,500)
Loss before taxation 5 (5,144,995) (3,264,307)
Income tax expense 5 - -
------------ ------------
Loss for the year (5,144,995) (3,264,307)
------------ ------------
Other comprehensive income
Exchange differences on translation
of foreign operations 207,440 (52,730)
Other comprehensive income
for the year net of taxation 207,440 (52,730)
------------ ------------
Total comprehensive income
for the year attributable
to equity holders of the parent
company (4,937,555) (3,317,037)
------------ ------------
Loss per share - basic (pence) 9 (0.14) (0.10)
------------ ------------
All operations are considered to be continuing.
Group balance sheet
as at 30 June 2020
Note 30 June 2020 30 June 2019
GBP GBP GBP GBP
ASSETS
Non-current assets
Tangible assets 10 132,061 103,114
Intangible assets 11 1,989,363 2,016,783
Right of use asset 12 414,616 -
------------- -------------
Total Non-current
assets 2,536,040 2,119,897
Current assets
Cash and cash equivalents 18 6,022,745 2,755,998
Trade and other receivables 14 79,076 77,480
------------- -------------
Total Current assets 6,101,821 2,833,478
------------ ----------
TOTAL ASSETS 8,637,861 4,953,375
LIABILITIES
Current liabilities
Trade and other payables 15 (932,759) (630,369)
Total Current liabilities (932,759) (630,369)
Non-Current liabilities
Other non-current
payables 15 (390,718) -
------------- -------------
Total Non-current (390,718) -
liabilities
------------ ----------
TOTAL LIABILITIES (1,323,477) (630,369)
------------ ----------
NET ASSETS 7,314,384 4,323,006
------------ ----------
EQUITY
Share capital 16 3,760,207 3,323,420
Share premium 19,878,782 12,554,173
Share based payment
reserve 17 372,953 349,606
Retained earnings (17,073,458) (12,072,653)
Other reserves 375,900 168,460
------------- -------------
TOTAL EQUITY 7,314,384 4,323,006
------------ ----------
Group statement of changes in equity
for the year ended 30 June 2020
Share Share Share Retained Other Total
capital premium based earnings reserves
payment
reserve
GBP GBP GBP GBP GBP GBP
As at 30 June
2018 3,002,256 9,749,891 243,472 (8,950,444) 221,190 4,266,365
---------- ----------- ---------- ------------- ---------- ------------
Loss for the
year - - - (3,264,307) - (3,264,307)
Currency translation
differences - - - - (52,730) (52,730)
---------- ----------- ---------- ------------- ---------- ------------
Total comprehensive
income - - - (3,264,307) (52,730) (3,317,037)
---------- ----------- ---------- ------------- ---------- ------------
Share option
charge - - 248,232 - - 248,232
Transfer on
exercise of
options and
warrants - - (142,098) 142,098 - -
Share capital
issued 321,164 2,936,782 - - - 3,257,946
Cost of share
issue - (132,500) - - - (132,500)
---------- ----------- ---------- ------------- ---------- ------------
Total contributions
by and distributions
to owners of
the Company 321,164 2,804,282 106,134 142,098 - 3,373,678
---------- ----------- ---------- ------------- ---------- ------------
As at 30 June
2019 originally
presented 3,323,420 12,554,173 349,606 (12,072,653) 168,460 4,323,006
---------- ----------- ---------- ------------- ---------- ------------
Adjustment from
the adoption
of IFRS 16 - - - 13,045 - 13,045
---------- ----------- ---------- ------------- -------- ------------
Restated as
at 30 June 2019 3,323,420 12,554,173 349,606 (12,059,608) 168,460 4,336,051
---------- ----------- ---------- ------------- -------- ------------
Loss for the
year - - - (5,144,995) - (5,144,995)
Currency translation
differences - - - - 207,440 207,440
---------- ----------- ---------- ------------- -------- ------------
Total comprehensive
income - - - (5,144,995) 207,440 (4,937,555)
---------- ----------- ---------- ------------- -------- ------------
Share option
charge - - 154,492 - - 154,492
Transfer on
exercise of
options and
warrants - - (131,145) 131,145 - -
Share capital
issued 436,787 7,543,487 - - - 7,980,274
Cost of share
issue - (218,878) - - - (218,878)
---------- ----------- ---------- ------------- -------- ------------
Total contributions
by and distributions
to owners of
the Company 436,787 7,324,609 23,347 131,145 - 7,915,888
---------- ----------- ---------- ------------- -------- ------------
As at 30 June
2020 3,760,207 19,878,782 372,953 (17,073,458) 375,900 7,314,384
---------- ----------- ---------- ------------- -------- ------------
Note:
In the current year the Group adopted IFRS 16 and applied the modified retrospective approach. The cumulative effect of adoption is recognised as an adjustment to retained earnings.
Group statement of changes in equity
for the year ended 30 June 2020
Other reserves Merger Foreign currency Total other
reserve translation reserves
reserve
GBP GBP GBP
As at 30 June 2018 225,000 (3,810) 221,190
--------- ----------------- ------------
Currency translation differences - (52,730) (52,730)
--------- ----------------- ------------
Total comprehensive income - (52,730) (52,730)
--------- ----------------- ------------
As at 30 June 2019 225,000 (56,540) 168,460
--------- ----------------- ------------
Currency translation differences - 207,440 207,440
-------- -------- --------
Total comprehensive income - 207,440 207,440
-------- -------- --------
As at 30 June 2020 225,000 150,900 375,900
-------- -------- --------
Company balance sheet
as at 30 June 2020
Note 30 June 2020 30 June 2019
GBP GBP GBP GBP
ASSETS
Non-current assets
Investment in subsidiary 13 50,000 50,000
Right of use asset 12 75,399 -
------------- -------------
Total Non-current
Assets 125,399 50,000
Current assets
Cash and cash equivalents 18 4,257,920 2,247,271
Trade and other receivables 14 11,387,759 6,624,946
-------------
Total Current Assets 15,645,679 8,872,217
----------- ----------
TOTAL ASSETS 15,771,078 8,922,217
LIABILITIES
Current Liabilities
Trade and other payables 15 (192,476) (255,510)
------------- -------------
Total Current liabilities (192,476) (255,510)
Other non-current
payables 15 (37,506) -
-------------
Total Non-current (37,506) -
liabilities
-----------
TOTAL LIABILITIES (229,982) (255,510)
----------- ----------
NET ASSETS 15,541,096 8,666,707
EQUITY
Share capital 16 3,760,207 3,323,420
Share premium 19,878,782 12,554,173
Share based payment
reserve 17 372,953 349,606
Merger reserve 225,000 225,000
Retained earnings (8,695,846) (7,785,492)
------------- -------------
TOTAL EQUITY 15,541,096 8,666,707
----------- ----------
Company statement of changes in equity
for the year ended 30 June 2020
Share Share Share Retained Merger Total
capital premium based earnings reserve
payment
reserve
GBP GBP GBP GBP GBP GBP
As at 30 June
2018 3,002,256 9,749,891 243,472 (6,997,503) 225,000 6,223,116
---------- ----------- ---------- ------------ --------- ------------
Loss for the year - - - (930,087) - (930,087)
---------- ----------- ---------- ------------ --------- ------------
Total comprehensive
income - - - (930,087) - (930,087)
Share option charge - - 248,232 - - 248,232
Transfer on exercise
of options and
warrants - - (142,098) 142,098 - -
Share capital
issued 321,164 2,936,782 - - - 3,257,946
Cost of share
issue - (132,500) - - - (132,500)
---------- ----------- ---------- ------------ --------- ------------
Total contributions
by and distributions
to owners of the
Company 321,164 2,804,282 106,134 142,098 - 3,373,678
---------- ----------- ---------- ------------ --------- ------------
As at 30 June
2019 originally
presented 3,323,420 12,554,173 349,606 (7,785,492) 225,000 8,666,707
---------- ----------- ---------- ------------ --------- ------------
Adjustment from
the adoption of
IFRS 16 - - - 13,045 - 13,045
---------- ----------- ---------- ------------ --------- ------------
Restated as at
30 June 2019 3,323,420 12,554,173 349,606 (7,772,447) 225,000 8,679,752
---------- ----------- ---------- ------------ --------- ------------
Loss for the year - - - (1,054,544) - (1,054,544)
---------- ----------- ---------- ------------ --------- ------------
Total comprehensive
income - - - (1,054,544) - (1,054,544)
---------- ----------- ---------- ------------ --------- ------------
Share option charge - - 154,492 - - 154,492
Transfer on exercise
of options and
warrants - - (131,145) 131,145 - -
Share capital
issued 436,787 7,543,487 - - - 7,980,274
Cost of share
issue - (218,878) - - - (218,878)
---------- ----------- ---------- ------------ --------- ------------
Total contributions
by and distributions
to owners of the
Company 436,787 7,324,609 23,347 131,145 - 7,915,888
---------- ----------- ---------- ------------ --------- ------------
As at 30 June
2020 3,760,207 19,878,782 372,953 (8,695,846) 225,000 15,541,096
---------- ----------- ---------- ------------ --------- ------------
Group cash flow statement
for the year ended 30 June 2020
Notes Year ended Year ended
30 June 30 June
2020 2019
GBP GBP
Cash flows from operating activities
Operating loss
(Increase)/Decrease in trade &
other receivables (5,183,317) (3,254,001)
Increase/(Decrease) in trade & (1,596) 1,581
other payables 293,450 (70,454)
Depreciation 67,396 37,131
Amortisation 65,230 -
Impairment charge 38,376 18,450
Share option charge 154,492 248,232
-------------- --------------
Net decrease in cash and cash
equivalents from operating activities (4,565,969) (3,019,061)
-------------- --------------
Cash flows from investing activities
Interest received 2,163 5,195
Interest payable (21,734) -
Payments to acquire intangible
assets 9,640 (688,519)
Payments to acquire tangible assets (95,624) (98,774)
-------------- --------------
Net cash outflows used in investing
activities (105,555) (782,098)
-------------- --- --------------
Cash flows from financing activities
Proceeds from issue of shares 7,980,274 3,115,900
Transaction costs of issue of
shares (218,878) (132,500)
Other income (cash boost) 55,438 -
Repayment of lease liabilities (67,877) -
-------------- --------------
Net cash inflows from financing
activities 7,748,957 2,983,400
-------------- --------------
Net increase/(decrease) in cash
and cash equivalents 18 3,077,433 (817,759)
Cash and cash equivalents at the
beginning of period 2,755,998 3,597,101
Exchange gain/(loss) on cash and
cash equivalents 189,314 (23,344)
-------------- --------------
Cash and cash equivalents at end
of period 18 6,022,745 2,755,998
-------------- --------------
During the year shares in the Company for a consideration of GBPnil (2019: GBP142,045) were issued for the acquisition of intangible assets (see Note 16). This amount represents material non-cash flows and is excluded from the cash flow statement.
Company cash flow statement
for the year ended 30 June 2020
Notes Year ended Year ended
30 June 30 June
2020 2019
GBP GBP
Cash flows from operating activities
Operating loss (1,048,003) (914,836)
(Increase)/Decrease in trade &
other receivables (12,813) 5,749
(Decrease)/Increase in trade &
other payables (71,974) 170,901
Amortisation 25,133 -
Share option charge 154,492 248,232
--------------- ---------------
Net decrease in cash and cash
equivalents from operations (953,165) (489,954)
--------------- ---------------
Cash flows from investing activities
Interest received 275 250
Interest payable (9,271) -
Loans to subsidiary (4,750,000) (3,000,000)
Net cash outflows used in investing
activities (4,758,996) (2,999,750)
---------------
Cash flows from financing activities
Proceeds from issue of shares 7,980,274 3,115,900
Transaction costs of issue of
shares (218,878) (132,500)
Repayment of lease liability (38,586) -
--------------- ---------------
Net cash flows from financing
activities 7,722,810 2,983,400
--------------- ---------------
Net increase/(decrease) in cash
and cash equivalents 18 2,010,649 (506,304)
Cash and cash equivalents at the
beginning of period 2,247,271 2,753,575
--------------- ---------------
Cash and cash equivalents at end
of period 18 4,257,920 2,247,271
--------------- ---------------
During the year shares in the Company for a consideration of GBPnil (2019: GBP142,045) were issued for the acquisition of intangible assets (see Note 16). This amount represents material non-cash flows and is excluded from the cash flow statement.
Notes to financial statements
for the year ended 30 June 2020
1 Principal accounting policies
1.1 Authorisation of financial statements and statement
of compliance with IFRS
The group financial statements of Greatland Gold plc
for the year ended 30 June 2020 were authorised for
issue by the board on 5 November 2020 and the balance
sheets signed on the board's behalf by Mr Gervaise
Heddle and Mr Alex Borrelli. Greatland Gold plc is
a public limited company incorporated and domiciled
in England and Wales. The Company's ordinary shares
are traded on AIM.
The Group's financial statements have been prepared
in accordance with International Financial Reporting
Standards (IFRS). The Company's financial statements
have been prepared in accordance with IFRS as adopted
by the European Union and as applied in accordance
with the provisions of the Companies Act 2006. The
principal accounting policies adopted by the Group
and Company are set out below.
New standards, amendments and interpretations adopted
by the Group
Effective 1 July 2019, the Group and Company adopted
the provisions of IFRS 16 - Leases on a modified retrospective
basis, recognising the cumulative effect of initial
application to opening retained earnings for the period.
At transition, for leases classified as operating leases
under IAS 17, lease liabilities were measured at the
present value of the remaining lease payments, discounted
at the Group's incremental borrowing rate. The Group
used the following practical expedients when applying
IFRS 16:
* Applied the exemption not to recognize right of use
assets and liabilities for leases with less than 12
months of lease term;
* Excluded initial direct costs from measuring the
right of use asset at the date of initial
application; and
* Apply a single discount rate to a portfolio of leases
with similar characteristics.
The change in accounting policy affected the following
items in the statement of financial position on 1 July
2019: Right of Use assets - Properties 479,846
Lease Liability - current (123,926)
----------
Lease Liability - non current (355,920)
----------
Adjustment to opening retained earnings
as at 1 July 2019 13,045
----------
There are no other IASB and IFRIC standards that have
been issued with an effective date after the date of
the financial statements which are expected to have
a material impact on the Group.
1.2 Significant accounting judgments, estimates and assumptions
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities
are often determined based on estimates and assumptions
of future events. The key estimates and assumptions
that have a significant risk of causing a material
adjustment to the carrying amounts of certain assets
and liabilities within the next annual reporting period
are:
Impairment of intangibles with indefinite useful lives
(Note 11)
Exploration and evaluation costs have a carrying value
at 30 June 2020 of GBP1,989,363 (2019: GBP2,016,783).
Such assets have an indefinite useful life as the Group
has a right to renew exploration licences and the asset
is only amortised once extraction of the resource commences.
The value of the Group's exploration, evaluation and
development expenditure will be dependent upon the
success of the Group in discovering economic and recoverable
mineral resources. The future revenue flows relating
to these assets is uncertain and will also be affected
by competition, relative exchange rates and potential
new legislation and related environmental requirements.
The Group's ability to continue its exploration programs
and develop its projects is dependent on future fundraisings
the outcome of which is uncertain. There have been
no changes made to any past assumptions.
The Directors have undertaken a review to assess whether
circumstances exist which could indicate the existence
of impairment as follows:
* The Group no longer has title to mineral leases.
* A decision has been taken by the Board to discontinue
exploration due to the absence of a commercial level
of reserves.
* Sufficient data exists to indicate that the costs
incurred will not be fully recovered from future
development and participation.
Following their assessment, the Directors concluded
that an impairment charge of GBP38,376 is required.
Share-based payment transactions (Note 17)
The Group measures the cost of equity-settled transactions
with employees by reference to the fair value of the
equity instruments at the date at which they are granted.
The fair value is determined using a Black-Scholes
model and a 40% discount is applied to that value due
to the recent volatility of the share price over the
valuation period.
1.3 Basis of preparation
The consolidated financial statements of Greatland
Gold plc and its subsidiary have been prepared in accordance
with International Reporting Standards (IFRS) as adopted
for use in the European Union.
The consolidated financial statements have been prepared
on the historical cost basis, except for the measurement
to fair value of assets and financial instruments as
described in the accounting policies below, and on
a going concern basis.
The amounts presented in the consolidated financial
statements are rounded to the nearest GBP1.
Going Concern
The consolidated entity has incurred a loss before
tax of GBP5,144,995 for the year ended 30 June 2020
and had a net cash outflow of GBP4,671,524 from operating
and investing activities. At that date there were net
current assets of GBP5,169,062. The loss resulted almost
entirely from exploration costs and associated administrative
related costs.
The Directors are confident in the Company's ability
to raise new finance from stock markets if this is
required during 2021 and the Group has demonstrated
a consistent ability to do so.
The Group's cash flow forecast for the period ending
31 December 2021 highlights adequate funding at current
levels of projected expenditure to last throughout
this period. The Board of Directors are confident that
sufficient funding is in place to meet all its operational
and exploration commitments over the next twelve months
and to remain cash positive for the whole period.
Given the Group's current positive cash position and
its ability to raise new capital the Directors have
a reasonable expectation that the Group has adequate
resources to continue in operational existence for
the foreseeable future. For these reasons, they continue
to adopt the going concern basis in preparing the annual
report and accounts.
At present the Group believes that there should be
no significant material disruption to its operations
from COVID-19 in the near term, but the Board continues
to monitor these risks and the Group's business continuity
plans.
Having prepared forecasts based on current resources,
assessing methods of obtaining additional finance and
assessing the possible impact of COVID-19, the Directors
believe the Group has sufficient resources to meet
its obligations for a period of 12 months from the
date of approval of these financial statements. Taking
these matters into consideration, the Directors continue
to adopt the going concern basis of accounting in the
preparation of the financial statements. The financial
statements do not include the adjustments that would
be required should the going concern basis of preparation
no longer be appropriate.
1.4 Basis of consolidation
The consolidated accounts combine the accounts of the
Company and its sole subsidiary, Greatland Pty Ltd,
using the purchase method of accounting.
In the Company's balance sheet, the investment in Greatland
Pty Ltd includes the nominal value of shares issued
together with the cash element of the consideration.
As required by the Companies Act 2006, no premium was
recognised on the share issue. The difference between
nominal and fair value of the shares issued was credited
to the merger reserve.
Subsidiary undertakings are those entities controlled
directly or indirectly by the Company. The Company
controls an investee 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. The results of the
subsidiaries acquired are included in the Consolidated
Statement of Comprehensive Income from the date of
acquisition using the same accounting policies of those
of the Group. The consideration transferred in a business
combination is the fair value at the acquisition date
of the assets transferred and the liabilities incurred
by the Group and includes the fair value of any contingent
consideration arrangement. Acquisition-related costs
are recognised in the income statement as incurred.
Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured
initially at their fair value at the acquisition date.
Where necessary, adjustments are made to the financial
statements of subsidiaries to bring their accounting
policies in line with those used by other members of
the Group.
All intra-group balances and transactions, including
any unrealized income and expenses arising from intragroup
transactions, are eliminated in full in preparing the
consolidated financial statements. Unrealised gains
arising from transactions with equity accounted investees
are eliminated against the investment to the extent
of the Group's interest in the investee. Unrealized
losses are eliminated in the same way as unrealized
gains, but only to the extent that there is no evidence
of impairment.
1.5 Investment in subsidiaries
Investments in subsidiary companies are classified
as non-current assets and included in the balance sheet
of the Company at cost, less provision for impairment
at the date of acquisition irrespective of the application
of merger relief under the Companies Act.
1.6 Cash and cash equivalents
Cash and short-term deposits in the balance sheet comprise
cash at bank and in hand and short-term deposits with
an original maturity of three months or less.
For the purposes of the Cash Flow Statement, cash and
cash equivalents consist of cash and cash equivalents
as defined above, net of outstanding bank overdrafts.
1.7 Income tax and deferred taxation
Current tax assets and liabilities for the current
and prior periods are measured as the amount expected
to be recovered from or paid to the taxation authorities.
The tax rates and tax laws used to compute the amount
are those that are enacted or substantially enacted
by the balance sheet date.
Full provision is made for deferred taxation resulting
from timing differences which have arisen but not reversed
at the balance sheet date.
Deferred tax assets on carried forward losses are only
recorded where it is expected that future trading profits
will be generated in which this asset can be offset.
The carrying amount of deferred tax assets is reviewed
at each balance sheet date and reduced to the extent
that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the
asset to be recovered.
Deferred tax is calculated at the tax rates that are
expected to apply in the period when the liability
is settled or the asset realised. Deferred tax is charged
or credited to profit or loss, except when it relates
to items charged or credited directly to equity, in
which case the deferred tax is also dealt with in equity.
1.8 Tangible fixed assets
Fixed assets are depreciated on a straight-line basis
at annual rates that will reduce the book amounts to
estimated residual values over their anticipated useful
lives as follows:
* Motor vehicles: 20% per annum
* Equipment: 7% per annum
* Leasehold improvements: 11% per annum
1.9 Right of use assets
At inception of a contract, the Company assesses if
the contract contains or is a lease. If there is a
lease present, a right-of-use asset and a corresponding
lease liability is recognised by the company where
the company 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 commencement
date. The lease payments are discounted at the interest
rate implicit in the lease. If the rate cannot be readily
determined, the company 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 of an index rate,
initially measured using the index rate of rate at
the commencement date;
* The amount expected to be payable by the lesses under
the 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 options.
The right-of-use assets comprise the initial measurement
of the corresponding lease liability as mentioned above,
any to terminate the lease payments made at or before
the commencement date, as well as 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 of useful life of the underlying
asset, whichever is the shortest. Where a lease transfers
ownership of the underlying asset of the cost of the
right-of-use asset reflects that the company anticipates
to exercise a purchase option, the specific asset is
depreciated over the useful life of the underlying
asset.
1.10 Foreign currencies
Both the functional and presentational currency of
Greatland Gold plc is sterling (GBP). Each group entity
determines its own functional currency and items included
in the financial statements of each entity are measured
using that functional currency.
The functional currency of the foreign subsidiary,
Greatland Pty Limited, is Australian Dollars (A$).
Transactions in foreign currencies are recorded at
the rate ruling at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies
are translated at the rate of exchange ruling at the
balance sheet date. All differences are taken to the
income statement.
On consolidation of a foreign operation, assets and
liabilities are translated at the balance sheet rates,
income and expenses are translated at rates ruling
at the transaction date. Exchange differences on consolidation
are taken to the income statement.
1.11 Other income
During the year Greatland Pty Ltd received two 'Cash
Boost' grants totalling A$100,000 (GBP55,438) from
the state government of Western Australia. These grants
were provided to support businesses during the COVID-19
pandemic. Government grants are recognised only when
there is reasonable assurance that the Group will comply
with the conditions attaching to the grant and that
the grants will be received. Capital grants are recognised
to match the related development expenditure and are
deducted in arriving at the carrying value of the related
assets. Any grants that are received in advance of
recognition are deferred.
The Group had no other income during the periods ended
30 June 2020 and 30 June 2019. Previous years consisted
of a grant from the state government of Western Australia.
Government grants are accounted for on a receipts basis.
1.12 Finance costs
Borrowing costs are recognised as an expense when incurred.
Finance income is recognised as interest accrues using
the effective interest method. This is a method of
calculating the amortised cost of a financial asset
and allocating the interest income over the relevant
period using the effective interest rate, which is
the rate that exactly discounts estimated future cash
receipts through the expected life of the financial
asset to the net carrying amount of the financial asset.
1.13 Trade and other receivables
Trade and other receivables are recognised initially
at fair value and subsequently measured at amortised
cost using the effective interest method, less any
allowance for the expected future issue of credit notes
and for non-recoverability due to credit risk. The
Group applies the IFRS 9 simplified approach to measuring
expected credit losses which uses a lifetime expected
loss allowance for all trade receivables and contract
assets. To measure expected credit losses, trade receivables
and contract assets have been grouped based on shared
risk characteristics. No such credit loss has been
recorded in these financial statements as any effect
would be immaterial.
1.14 Financial instruments
Financial assets and liabilities are recognized in
the Group's Statement of Financial Position when the
Group becomes a party to the contracted provision of
the instrument. The following policies for financial
instruments have been applied in the preparation of
the consolidated financial statements:
The Group and Company's financial assets which comprise
loans and receivables and other debtors are measured
at amortised cost.
The classification depends on the business model for
managing the financial assets and the contractual terms
of the cash flows. Financial assets are classified
as at amortised cost only if both of the following
criteria are met:
* the asset is held within a business model whose
objective is to collect contractual cash flows; and
* the contractual terms give rise to cash flows that
are solely payments of principal and interest
1.15 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
year that are unpaid and arise when the Group becomes
obliged to make future payments in respect of the purchase
of these goods and services.
1.16 Earnings per share
Basic earnings per share is calculated as net profit
attributable to members of the parent, adjusted to exclude
any costs of servicing equity (other than dividends)
and preference share dividends, divided by the weighted
average number of ordinary shares, adjusted for any
bonus element.
Diluted earnings per share is calculated as net profit
attributable to members of the parent, adjusted for:
* costs of servicing equity (other than dividends) and
preference share dividends;
* the after tax effect of dividends and interest
associated with dilutive potential ordinary shares
that have been recognised as expenses; and
* other non-discretionary changes in revenues or
expenses during the period that would result from the
dilution of potential ordinary shares; divided by the
weighted average number of ordinary shares and
dilutive potential ordinary shares, adjusted for any
bonus element.
1.17 Exploration and development expenditure
Exploration and development costs include expenditure
on prospects at an exploratory stage. These costs include
the cost of acquisition, exploration, determination
of recoverable reserves, economic feasibility studies
and all technical and administrative overheads directly
associated with those projects. Costs associated with
an exploration activity will only be capitalised if,
in management's opinion, the results from that activity
led to a material increase in the market value of the
exploration asset which is determined by management
to be following the economic feasibility stage. Generally,
costs associated with non-drilling activities, such
as geophysical and geochemical surveys, are not capitalised.
Costs associated with drilling activities at an exploration
asset may be capitalised, on a case by case basis,
depending upon management's assessment of the impact
of those activities on the market value of that particular
asset at that time which is determined by management
to be following the economic feasibility stage.
Recoupment of capitalised exploration and development
costs is dependent upon successful development and
commercial exploitation of each area of interest and
are amortised over the expected commercial life of
each area once production commences. The Company adopts
the 'area of interest' method of accounting whereby
a substantial proportion of exploration and development
costs relating to an area of interest are capitalised
and carried forward until abandoned. In the event that
an area of interest is abandoned, or if the Directors
consider the expenditure to be of no value, accumulated
exploration costs are written off in the financial
year in which the decision is made. All expenditure
incurred prior to approval of an application is expensed
with the exception of refundable rent which is raised
as a debtor.
Impairment reviews are carried out regularly by the
Directors of the Company. Where a project is abandoned
or is considered not to be of commercial value to the
Company, the related costs are written off or provisions
are made.
1.18 Share based payments
The fair value of options granted to directors and
others in respect of services provided is recognised
as an expense in the profit and loss account with
a corresponding increase in equity reserves - the
share based payment reserve.
On exercise or cancellation of share options, the
proportion of the share based payment reserve relevant
to those options is transferred to the profit and
loss account reserve. On exercise, equity is also
increased by the amount of the proceeds received.
The fair value is measured at grant date and the charge
is spread over the relevant vesting period.
The fair value of options is calculated using the
Black-Scholes model taking into account the terms
and conditions upon which the options were granted.
Vesting conditions are non-market and there are no
market vesting conditions. The exercise price is fixed
at the date of grant and no compensation is due at
the date of grant.
2 Revenue and segmental analysis
The Group's prime business segment is mineral exploration.
The Group operates within two geographical segments,
the United Kingdom and Australia. The UK sector consists
of the parent company which provides administrative
and management services to the subsidiary undertaking
based in Australia.
The aggregation of these two segments into a single
United Kingdom business unit reflects the way information
is presented to the Chief Operating Decision Maker,
who is the Group's Chief Executive Officer.
The following tables present revenue and loss information
and certain asset and liability information by geographical
segments:
UK Australia Total
Year ended 30 June 2020 GBP GBP GBP
Revenue
Total segment revenue - - -
-------------- -------------- --------------
Total consolidated revenue - - -
-------------- -------------- --------------
Result
Segment results (1,061,048) (4,135,314) (5,196,362)
-------------- -------------- --------------
Loss before tax and finance
income/costs (1,061,048) (4,135,314) (5,196,362)
Interest receivable 275 1,888 2,163
Interest payable 6,229 (12,463) (6,234)
Other income - 55,438 55,438
-------------- -------------- --------------
Loss before taxation (1,054,544) (4,090,451) (5,144,995)
Taxation expense - - -
-------------- -------------- --------------
Loss after taxation (1,054,544) (4,090,451) (5,144,995)
-------------- -------------- --------------
UK Australia Total
As at 30 June 2020 GBP GBP GBP
Assets and liabilities
Segment assets 4,374,330 4,263,531 8,637,861
------------ --------------
Total assets 4,374,330 4,263,531 8,637,861
------------ -------------- --------------
Segment liabilities (229,983) (1,093,494) (1,323,477)
------------ -------------- --------------
Total liabilities (229,983) (1,093,494) (1,323,477)
------------ -------------- --------------
Other segment information:
Capital expenditure - 85,984 85,984
------------ -------------- --------------
Depreciation - 67,396 67,396
------------ -------------- --------------
Amortisation 25,133 40,097 65,230
------------ -------------- --------------
Impairment - 38,376 38,376
------------ -------------- --------------
2 Revenue and segmental analysis, UK Australia Total
continued
Year ended 30 June 2019 GBP GBP GBP
Revenue
Total segment revenue - - -
------------ -------------- --------------
Total consolidated revenue - - -
------------ -------------- --------------
Result
Segment results (914,837) (2,339,165) (3,254,002)
------------ -------------- --------------
Loss before tax and finance
costs (914,837) (2,339,165) (3,254,002)
Interest receivable 250 4,945 5,195
Interest payable (15,500) - (15,500)
------------ -------------- --------------
Loss before taxation (930,087) (2,334,220) (3,264,307)
Taxation expense - - -
------------ -------------- --------------
Loss after taxation (930,087) (2,334,220) (3,264,307)
------------ -------------- --------------
UK Australia Total
As at 30 June 2019 GBP GBP GBP
Assets and liabilities
Segment assets 2,275,468 2,677,907 4,953,375
------------ ------------
Total assets 2,275,468 2,677,907 4,953,375
------------ ------------ ------------
Segment liabilities (255,510) (374,859) (630,369)
------------ ------------ ------------
Total liabilities (255,510) (374,859) (630,369)
------------ ------------ ------------
Other segment information
Capital expenditure - 929,338 929,338
------------ ------------ ------------
Depreciation - 37,131 37,131
------------ ------------ ------------
Amortisation - - -
------------ ------------ ------------
Impairment - 18,450 18,450
------------ ------------ ------------
3 Net finance costs 2020 2019 GBP
GBP
Finance income Finance costs 17,663 5,195
(21,734) (15,500)
---------- ----------
(4,071) (10,305)
---------- ----------
Expenses by Nature 2019
4 2020 GBP
GBP
Loss on ordinary activities before
taxation is stated after charging:
Auditors' remuneration - audit Depreciation
Amortisation 17,000 16,200
Impairment charge 67,396 37,131
Directors' emoluments 65,230 -
38,376 18,450
1,089,226 962,406
Services provided by the Company's
auditor and its associates
During the period, the Group (including overseas subsidiaries)
obtained the following services from the Company's
auditors and its associates:
2019
2020 GBP
GBP
Fees payable to the Company's auditor
and its associates for the audit of
the Company and Group Financial Statements 17,000 16,200
Auditors' remuneration for audit services above excludes
AU$9,950 (2019: AU$7,814) charged by Charles Foti Business
Services (Australia) relating to the audit of the subsidiary
company.
5 Taxation
2020 2019
Analysis of charge in year GBP GBP
Tax on profit on ordinary activities - -
------------ ----------
Factors affecting tax charge for year
The tax assessed on the loss on ordinary activities
for the period differs from the standard rate of corporation
tax in the UK of 19% (2018: 19%) and Australia of
27.5%. The differences are explained below:
2020 2019
GBP GBP
Loss on ordinary activities before
tax (5,144,995) (3,264,307)
============ ============
Loss multiplied by weighted average
applicable rate of tax (1,196,211) (758,951)
Effects of:
Expenses not deductible for tax:
Share option charge 35,920 57,714
Tax losses on which no deferred tax
asset is recognised 1,160,291 701,237
------------ ------------
Income tax expense - -
------------ ------------
The weighted average applicable tax rate of 23.25%
(2019: 23.25%) used is a combination of the standard
rate of corporation tax rate for entities in the United
Kingdom of 19% (2019: 19%), and 27.5% (2019: 27.5%)
in Australia.
No deferred tax asset has been recognised because
there is insufficient evidence of the timing of suitable
future profits against which they can be recovered.
Losses carried forward:
Brought forward losses 30 June 2019 12,072,653 8,950,444
Current year losses 5,000,805 3,122,209
----------- -----------
Losses carried forward 30 June 2020 17,073,458 12,072,653
----------- -----------
6 Employee information (excluding directors) 2020 2019
Staff costs comprised: GBP GBP
Wages and salaries 502,172 195,139
Bonus 151,613 23,798
57,624 15,220
Pension Share option charge 62,777 58,471
-------- --------
774,186 292,628
-------- --------
Number Number
Exploration 6 2
Administration 2 1
-------- --------
Of the total Staff costs in the year, GBP669,759 (2019: GBP229,773) arises from work on the Exploration Properties and has been expensed to the Income Statement as exploration costs.
7 Dividends
No dividends were paid or proposed by the Directors.
(2019: GBPNil)
8 Directors' emoluments 2020 2019
GBP GBP
Directors' remuneration 997,511 787,116
Share option charge 91,715 175,290
-------------- ----------
1,089,226 962,406
-------------- ----------
Directors' Pension Bonus Share Based Total
salary Payments
2020 GBP GBP GBP GBP GBP
Executive directors
Callum Baxter
Gervaise Heddle
Non-executive
directors Alex
Borrelli Clive
Latcham 185,024
185,024 44,278 205,121 30,015 464,438
44,278 205,121 30,015 464,438
43,750
33,750 1,165 25,000 3,159 73,074
- 25,000 28,526 87,276
------------- ---------- ---------- -------------- ----------
447,548 89,721 460,242 91,715 1,089,226
------------- ---------- ---------- -------------- ----------
Of the total Directors' emoluments disclosed above in the income statement, 75% (or GBP348,329) for Callum Baxter and 25% (or GBP116,110) for Gervaise Heddle has been allocated to exploration costs in the income statement for the year. Directors remuneration and bonus relates to short term employee benefits. Pension / superannuation payments relate to long term employee benefits.
Share based payments reflect the Black Scholes value of share options granted during the year. See Note 17.
Also, see Note 22 for related party transactions.
Directors' Pension Bonus Share Based Total
salary Payments
2019 GBP GBP GBP GBP GBP
Executive directors
Callum Baxter Gervaise
Heddle Non-executive
directors Alex Borrelli
Clive Latcham (appointed
15 October 2018) 166,944
166,944 30,826 144,736 75,893 418,399
30,826 144,736 75,893 418,399
40,000
21,319 785 20,000 13,552 74,337
- 20,000 9,952 51,271
----------- --------- ---------- ------------ ----------
395,207 62,437 329,472 175,290 962,406
----------- --------- ---------- ------------ ----------
Of the total Directors' remuneration disclosed above in the income statement, 75% (or GBP256,879) for Callum Baxter and 25% (or GBP85,626) for Gervaise Heddle has been allocated to exploration costs in the income statement for the year. Directors remuneration and bonus relates to short term employee benefits. Pension / superannuation payments relate to long term employee benefits.
The aggregate gains made on the exercise of options during the year was GBP5,357,450 (2019: GBP1,150,600)
Share based payments reflect the Black Scholes value of share options granted during the year. See Note 17.
Also, see Note 22 for related party transactions.
9 Earnings per share
The basic earnings per share is derived by dividing
the loss / profit for the period attributable to ordinary
shareholders by the weighted average number of shares
in issue.
2020 2019
GBP GBP
Loss for the period (5,144,995) (3,264,307)
---------------- ------------------
Weighted average number of Ordinary
shares of GBP0.001 in issue 3,593,407,809 3,252,941,141
Loss per share - basic
(0.14) pence (0.10) pence
---------------- ------------------
An inclusion of the potential Ordinary shares would
result in a decrease in the loss per share, they are
considered to be anti-dilutive; as such, a diluted earnings
per share is not included.
If the 204,500,000 outstanding options at 30 June 2020
(2019: 213,500,000) were included to calculate the diluted
loss per share.
Weighted average number of Ordinary
shares of GBP0.001 in issue inclusive 3,797,907,809 3,466,441,141
of outstanding options
(0.09) pence
Loss per share - diluted (0.14) pence
---------------- ------------------
10 Tangible fixed assets -
Group
Motor Equipment Leasehold Total
vehicle Improvements
Cost GBP GBP GBP GBP
At 30 June 2019 33,310 113,863 - 147,173
- - - -
Disposals Additions 83,892 5,411 6,320 95,623
Foreign exchange rate fluctuations 344 1,177 - 1,521
--------- ---------- -------------- --------
At 30 June 2020 117,546 120,451 6,320 244,317
--------- ---------- -------------- --------
Depreciation
5,126 38,933 - 44,059
At 30 June 2019
Disposals - - - -
Charge 39,573 27,816 7 67,396
Foreign exchange rate fluctuations 256 545 - 801
--------- ---------- -------------- --------
At 30 June 2020 44,955 67,294 7 112,256
--------- ---------- -------------- --------
Net book value
At 30 June 2020 72,591 53,157 6,313 132,061
--------- ---------- -------------- --------
At 30 June 2019 28,184 74,930 - 103,114
--------- ---------- -------------- --------
Motor Equipment Leasehold Total
vehicle Improvements
Cost GBP GBP GBP GBP
At 30 June 2018 - 49,267 - 49,267
- - - -98,774
Disposals Additions 33,310 65,464 -
Foreign exchange rate
fluctuations - (868) - (868)
--------- ---------- ---------------------- ------------
At 30 June 2019 33,310 113,863 - 147,173
--------- ---------- ---------------------- ------------
Depreciation
- 7,390 - 7,390
At 30 June 2018
Disposals - - - -
Charge 5,174 31,957 - 37,131
Foreign exchange rate
fluctuations (48) (414) - (462)
--------- ---------- ---------------------- ------------
At 30 June 2019 5,126 38,933 - 44,059
--------- ---------- ---------------------- ------------
Net book value
At 30 June 2019 28,184 74,930 - 103,114
--------- ---------- ---------------------- ------------
At 30 June 2018 - 41,877 - 41,877
--------- ---------- ---------------------- ------------
11 Intangible non-current assets 2020 2019
- Group GBP GBP
Exploration properties
At 30 June 2019 2,647,577 1,864,442
Additions - 830,563
Impairment (38,376) (18,450)
Foreign exchange rate
fluctuations 10,956 (28,978)
---------- ------------------
At 30 June 2020 2,620,157 2,647,577
---------- ------------------
Impairment
At 30 June 2019 (630,794) (630,794)
Charge - -
Foreign exchange rate - -
fluctuations
---------- ------------------
At 30 June 2020 (630,794) (630,794)
---------- ------------------
Net book amount
At 30 June 2020 1,989,363 2,016,783
---------- ------------------
At 30 June 2019 2,016,783 1,233,648
---------- ------------------
Impairment review
As at 30 June 2020, the Directors carried out an impairment review of the exploration properties and considered an impairment charge was not required (2019: GBPnil). However, during the year GBP3,365,893 (2019: GBP2,295,560) of exploration related costs have been charged directly to the Income Statement as these costs were deemed non-beneficial to the future value of the exploration properties. Costs directly related to exploration programmes that, in the opinion of the Directors, are considered to add value to the respective exploration properties are capitalised.
12 Right of use asset
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Properties
Opening balance on adoption
of IFRS 16 479,846 - 100,532 -
Accumulated amortisation (65,230) - (25,133) -
---------
At 30 June 2020 414,616 - 75,399 -
--------- ---------
In December 2018 Greatland Pty Ltd entered into a lease agreement with Bondall Pty Ltd for office premises. The initial term of the lease is 5 years, expiring on 30 November 2023. The Company has the option to extend the lease for a further 5 year term, expiring on 30 November 2028.
In December 2018 Greatland Gold plc entered into a lease agreement with The Argyll Club (formerly London Executive Offices) for offices premises. The initial term of the lease was 24 months, expiring on 30 November 2020. The Company has extended the lease for a further 24 month terms, expiring on 30 November 2022.
The current lease liability relates to the rental and interest payments due for current period to 30 November 2019 and the non-current lease liability relates to the rental and interest payments up to and including the periods to 30 November 2028.
13 Investments in subsidiary - Company GBP
Cost
At 30 June 2019 50,000
Impairment of investment -
-------
At 30 June 2020 50,000
Net book amount
At 30 June 2020 50,000
-------
At 30 June 2019 50,000
-------
The parent company of the Group holds more than 20% of the share
capital of the following company:
Company Country of Class Proportion Nature of business
registration held
Greatland Pty Australia Common 100% Mineral exploration
Ltd
The registered address of Greatland Pty Ltd is Unit B9, 431 Roberts Road, Subiaco, WA, 6008
14 Trade and other receivables Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Current trade and other receivables:
Prepayments 55,211 51,104 41,011 28,198
Other debtors 23,865 26,376 - -
Loans due from subsidiary - - 11,346,748 6,596,748
--------- ------------
Total current trade and other
receivables 79,076 77,480 11,387,759 6,624,946
--------- --------- ------------- ------------
The loan due from subsidiary was interest free throughout
the period and has no fixed repayment date. No provision
GBPnil (2019: GBPnil) has been made against this loan.
15 Trade and other payables Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Current trade and other payables:
Trade creditors 668,514 356,282 73,344 35,010
Accruals 64,481 209,016 64,481 209,016
Salaries and social security 29,700 10,577 29,700 10,577
Employee benefits 114,015 54,494 511 907
Lease liability 56,049 - 24,440 -
---------- ---------- --------- ----------
Total current trade and other
payables 932,759 630,369 192,476 255,510
---------- ---------- --------- ----------
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Non-current trade and other
payables:
Employee benefits 34,592 - - -
Lease liability 356,126 - 37,506 -
---------- ---------- --------- ----------
Total non-current trade and
other payables: 390,718 - 37,506 -
---------- ---------- --------- ----------
Total trade and other payables 1,323,477 630,369 229,982 255,510
---------- ---------- --------- ----------
Current employee benefits relate to annual leave and non-current benefits relates to long service leave.
16 Share capital Called up, allotted, issued and Number Cost of
fully paid share issue
GBP GBP
--------------
As at 30 June 2019, Ordinary shares
of GBP0.001 each 3,323,420,145 - 3,323,420
Issued during the year
On 12 August 2019, at a price
of GBP0.0185, for cash 225,813,513 - 225,814
On 26 September 2019, at a price
of GBP0.0028, for cash 28,000,000 - 28,000
On 02 March 2020, at a price of
GBP0.0250, for cash 75,037,838 (128,340) 75,038
On 01 April 2020, at a price of
GBP0.0250, for cash 2,243,243 (3,837) 2,243
On 01 May 2020, at a price of
GBP0.0250, for cash 16,377,027 (28,010) 16,377
On 19 May 2020, at a price of
GBP0.007, for cash 17,500,000 - 17,500
On 22 May 2020, at a price of
GBP0.014, for cash 6,000,000 - 6,000
On 01 June 2020, at a price of
GBP0.0250, for cash 10,412,163 (17,809) 10,412
On 16 June 2020, at a price of
GBP0.014, for cash 14,000,000 - 14,000
On 16 June 2020, at a price of
GBP0.007, for cash 17,500,000 - 17,500
On 30 June 2020, at a price of
GBP0.0250, for cash 23,902,702 (40,882) 23,903
--------------
As at 30 June 2020, Ordinary shares
of GBP0.001p each 3,760,206,631 (218,878) 3,760,207
-------------- ------------- ----------
Total share options in issue
As at 30 June 2020 there were 204.5 million unexercised options
over Ordinary shares; 25 million exercisable at 0.2 pence
per share in issue, 14 million exercisable at 0.28 pence
per share in issue, 12.5 million exercisable at 0.7 pence
per share in issue, 19.5 million exercisable at 1.4 pence
per share in issue, 39.5 million exercisable at 2 pence per
share in issue, 20 million exercisable at 2.5 pence per share
in issue, 37 million exercisable at 2.5 pence per share in
issue and 37 million exercisable at 3.0 pence per share in
issue (2019: 213.5 million).
Total warrants in issue
On 3 September 2019 the 11,363,636 warrants issued to DDH1 expired. In respect of these expired warrants the share based payment charge of GBP14,200 was transferred to reserves.
As at 30 June 2020 there were 97,840,540 million unexercised investor warrants over Ordinary shares at 2.5 pence outstanding. Since the year end a further 60,063,511 warrants over Ordinary shares at 2.5 pence were exercised. The remaining unexercised warrants expire on 27 August 2021.
No expense was recorded in the year in respect of these warrants.
17 Share based payments
The Company grants share options to employees as part of the
remuneration of key management personnel and directors to enable
them to purchase ordinary shares in the Company. Under the plan,
74 million options were granted for no cash consideration; 64
million options were granted for a period of three years expiring
on 25 September 2023 and 10 million options were granted for
a period of three years expiring on 07 January 2024. The share
options outstanding at 30 June 2020 had a weighted average remaining
contractual life of 2.4 years (2019: 2.9 years). Maximum term
of new options granted was 4 years from the grant date. The
weighted average exercise price of share options as at the date
of exercise is GBP0.0073 (2019: GBP0.0035). The share options
outstanding at 30 June 2020 had a range of exercise prices between
GBP0.0020 and GBP0.0300. Granted Unexercised Share Unexercised Exercise Date from Expiry
during at 30 options at 30 price which date
the period June 2019 exercised June (pence) exercisable
2020
18 Aug 16 Feb
C Baxter - 17,500,000 (17,500,000) - 0.7p 2017 2021
07 Sep 06 Sep
C Baxter - 14,000,000 - 14,000,000 1.4p 2019 2022
07 Sep 06 Sep
C Baxter - 14,000,000 - 14,000,000 2.0p 2019 2022
26 Sep 25 Sep
C Baxter 9,000,000 - - 9,000,000 2.5p 2020 2023
26 Sep 25 Sep
C Baxter 9,000,000 - - 9,000,000 3.0p 2020 2023
20 Apr 20 Apr
A Borrelli - 25,000,000 - 25,000,000 0.2p 2016 2021
18 Jan 18 Jul
A Borrelli - 14,000,000 - 14,000,000 0.28p 2017 2022
18 Aug 16 Feb
A Borrelli - 7,500,000 - 7,500,000 0.7p 2017 2021
07 Sep 06 Sep
A Borrelli - 2,500,000 - 2,500,000 1.4p 2019 2022
07 Sep 06 Sep
A Borrelli - 2,500,000 - 2,500,000 2.0p 2019 2022
18 Jan 18 Jul
G Heddle - 28,000,000 (28,000,000) - 0.28p 2017 2020
18 Aug 16 Feb
G Heddle - 17,500,000 (17,500,000) - 0.7p 2017 2021
07 Sep 06 Sep
G Heddle - 14,000,000 - 14,000,000 1.4p 2019 2022
07 Sep 06 Sep
G Heddle - 14,000,000 (14,000,000) - 2.0p 2019 2022
26 Sep 25 Sep
G Heddle 9,000,000 - - 9,000,000 2.5p 2020 2023
26 Sep 25 Sep
G Heddle 9,000,000 - - 9,000,000 3.0p 2020 2023
18 Aug 16 Feb
G Cryan - 5,000,000 - 5,000,000 0.7p 2017 2021
07 Sep 06 Sep
G Cryan - 3,000,000 - 3,000,000 1.4p 2019 2022
07 Sep 06 Sep
G Cryan - 3,000,000 - 3,000,000 2.0p 2019 2022
26 Sep 25 Sep
G Cryan 1,500,000 - - 1,500,000 2.5p 2020 2023
26 Sep 25 Sep
G Cryan 1,500,000 - - 1,500,000 3.0p 2020 2023
07 Sep 06 Sep
B Wasse - 6,000,000 (6,000,000) - 1.4p 2019 2022
07 Sep 06 Sep
B Wasse - 6,000,000 - 6,000,000 2.0p 2019 2022
26 Sep 25 Sep
B Wasse 3,000,000 - - 3,000,000 2.5p 2020 2023
26 Sep 25 Sep
B Wasse 3,000,000 - 3,000,000 3.0p 2020 2023
21 Mar 20 Mar
C Latcham - 10,000,000 - 10,000,000 2.5p 2020 2023
26 Sep 25 Sep
C Latcham 1,500,000 - - 1,500,000 2.5p 2020 2023
26 Sep 25 Sep
C Latcham 1,500,000 - - 1,500,000 3.0p 2020 2023
21 Mar 20 Mar
M Sawyer - 10,000,000 - 10,000,000 2.5p 2020 2023
26 Sep 25 Sep
M Sawyer 3,000,000 - - 3,000,000 2.5p 2020 2023
26 Sep 25 Sep
M Sawyer 3,000,000 - - 3,000,000 3.0p 2020 2023
26 Sep 25 Sep
T Harris 5,000,000 - - 5,000,000 2.5p 2020 2023
26 Sep 25 Sep
T Harris 5,000,000 - - 5,000,000 3.0p 2020 2023
08 Jan 07 Jan
J Janik 5,000,000 - - 5,000,000 2.5p 2021 2024
08 Jan 07 Jan
J Janik 5,000,000 - - 5,000,000 3.0p 2021 2024
74,000,000 213,500,000 (83,000,000) 204,500,000
----------- ------------ ------------- ------------
The fair value of the 64 million options granted on 26 September
2019 using an adjusted Black-Scholes method and assumptions
were as follows: Options issued 32 million share 32million share
options options
Grant date 26 September 2019 26 September 2019
Fair value at measurement 0.187 pence 0.114 pence
date
Share price at grant date 1.77 pence 1.77 pence
Exercise price 2.5 pence 3.0 pence
Expected volatility 32% 32%
Vesting period: 1 year after 26 September 2020 26 September 2020
grant
Option life 36 months 36 months
Expected dividends 0.00% 0.00%
Risk free interest rate 0.50% 0.50%
Discount 40% 40%
Fair value of options granted GBP35,836 GBP21,851
------------------- -------------------
The fair value of the 10 million options granted on 08 January
2020 using an adjusted Black-Scholes method and assumptions
were as follows: Options issued 5 million share 5million share
options options
Grant date 08 January 2020 08 January 2020
Fair value at measurement 0.328 pence 0.220 pence
date
Share price at grant date 2.04 pence 2.04 pence
Exercise price 2.5 pence 3.0 pence
Expected volatility 33% 33%
Vesting period: 1 year after 08 January 2021 08 January 2021
grant
Option life 36 months 36 months
Expected dividends 0.00% 0.00%
Risk free interest rate 0.50% 0.50%
Discount 40% 40%
Fair value of options granted GBP9,842 GBP6,598
----------------- -----------------
The fair value of the share options expensed during the year
was GBP154,492, being the value of the options attributable
to the vesting period to 30 June 2020 (2019: GBP234,032). GBP8,265
and GBP14,229 will be expensed in the following years, being
the value of these options attributable to the end of their
vesting dates. GBP116,945 in respect of the exercised share
options was transferred to reserves (2019: GBP142,098).
The volatility is set by reference to the historic volatility
of the share price of the Company.
18 Cash and cash equivalents 30 June Currency Net Cash 30 June
- Group 2020 adjustments flow 2019
GBP GBP GBP GBP
Cash at bank and in hand 6,022,745 189,314 3,077,433 2,755,998
Total cash and cash equivalents 6,022,745 189,314 3,077,433 2,755,998
----------------- ------------------- --------------- ----------
Cash and cash equivalents 30 June Currency Net Cash 30 June
- Company 2020 adjustments flow 2019
GBP GBP GBP GBP
Cash at bank and in hand 4,257,920 - 2,010,649 2,247,271
----------------- ------------------- --------------- ----------
Total cash and cash equivalents 4,257,920 - 2,010,649 2,247,271
----------------- ------------------- --------------- ----------
Cash at bank earns interest at floating rates based on daily
bank deposit rates.
Short-term deposits are made for varying periods of between
one day and three months, depending on the immediate cash
requirements of the Group, and earn interest at the respective
short-term deposit rates.
19 Commitments As at 30 June 2020, the Company had entered into the following commitment:
Exploration commitments
Ongoing exploration expenditure is required to maintain title to the Group mineral exploration
permits. No provision
has been made in the financial statements for these amounts as the expenditure is expected
to be fulfilled in the
normal course of the operations of the Group.
Lease liability
In December 2018 Greatland Pty Ltd entered into a lease agreement with Bondall Pty Ltd
for office premises. The initial
term of the lease is 5 years, expiring on 30 November 2023. The Company has the option
to extend the lease for a
further 5 year term, expiring on 30 November 2028.
In December 2018 Greatland Gold plc entered into a lease agreement with The Argyll Club
(formerly London Executive
Offices for offices premises. The initial term of the lease was 24 months, expiring
on 30 November 2020. The
Company has extended the lease for a further 24 month terms, expiring on 30 November
2022
The current lease liability relates to the rental and interest payments due for current
period to 30 November 2019 and the
non-current lease liability relates to the rental and interest payments up to and including
the periods to 30 November 2028. Group Group Company Company
2020 2019 2020 2019
GBP GBP GBP GBP
Lease payments payable:
Current (< 1 year) 56,049 13,045 24,440 13,045
2-5 years 234,429 - 37,506 -
> 5 years 121,697 - - -
-------- ------- -------- --------
412,175 13,045 61,946 13,045
-------- ------- -------- --------
20 Significant agreements and transactions
On 8 June 2020, Greatland signed a series of agreements in
relation to the Havieron project variously between Newcrest
Operations Limited ("Newcrest"), Western Desert Lands Aboriginal
Corporation (Jamukurnu-Yapalikunu), the Prescribed Body Corporate
for the Martu People of the Central Western Desert region
in Western Australia ("WDLAC"), Greatland Gold plc ("Greatland")
and Greatland Pty Ltd ("GPL") to assist in the process for
a Mining Lease application.
There were no other significant agreements and transactions
to report other than those reported in Note 21.
21 Events after the reporting period Post-Balance Sheet Capital
Raises and issue of options
On 2 July 2020 the Company received a binding option exercise
notice from Callum Baxter for 14,000,000 options at 1.4 pence
per share for a total consideration of GBP196,000.
On 24 July 2020 the Company received a binding option exercise
notice from Gervaise Heddle for 5,000,000 options at 2.0 pence
per share for a total consideration of GBP100,000.
On 29 July 2020 the Company received a binding option exercise
notice from Clive Latcham for 1,250,000 options at 2.5 pence
per share for a total consideration of GBP31,250.
On 4 August 2020 the Company announced that during July 2020,
it had issued 1,591,893 new ordinary shares of 0.1p each from
its block listing authority of 10 February 2020 for a total
consideration of GBP37,797.
On 1 September 2020 the Company announced that during August
2020, it had issued 11,891,892 new ordinary shares of 0.1p
each from its block listing authority of 10 February 2020
for a total consideration of GBP297,297.
On 25 September 2020 the Company received binding option exercise
notices from employees for 2,500,000 options at 0.7 pence
per share for a total consideration of GBP17,500 and 6,000,000
options at 2.0 pence per share for a total consideration of
GBP120,000.
On 28 September 2020 the Company received binding option exercise
notices from employees for 13,000,000 options at 2.5 pence
per share for a total consideration of GBP325,000 and 5,000,000
options at 3.0 pence per share for a total consideration of
GBP150,000.
On 29 September 2020 the Company received binding option exercise
notices from an employee for 3,000,000 options at 2.5 pence
per share for a total consideration of GBP75,000 and 3,000,000
options at 3.0 pence per share for a total consideration of
GBP90,000.
On 1 October 2020 the Company announced that during September
2020, it had issued 32,816,214 new ordinary shares of 0.1p
each from its block listing authority of 10 February 2020
for a total consideration of GBP820,405.
On 2 November 2020 the Company announced that during October
2020, it had issued 13,763,512 new ordinary shares of 0.1p
each from its block listing authority of 10 February 2020
for a total consideration of GBP344,088.
Corporate
On 30 July 2020 the Company announced that it had appointed
Berenberg and H&P Partners as joint corporate brokers and
financial advisers to the company with immediate effect.
On 27 August 2020 the Company announced that it had appointed
PKF Littlejohn LLP as auditors to the Company with immediate
effect.
On 10 September 2020, the Western Australian Department of
Mines, Industry Regulation and Safety ("DMIRS") has granted
Mining Lease application 45/1287 for the Havieron gold-copper
deposit. The Mining Lease covers the 12 block area that is
subject to the Farm-in Agreement between Greatland and Newcrest
dated 12 March 2019.
22 Related party transactions
Remuneration of key management personnel
The remuneration of the directors, and other key management
personnel of the Group, is set out below in aggregate for
each of the categories specified in IAS24 Related Party Disclosures.
2020 2019 GBP
GBP
Short-term employee benefits 997,511 787,116
Share based payments 154,492 233,761
Key management personnel 711,409 234,157
---------- -------------
1,863,412 1,255,034
---------- -------------
23 Financial instruments - Group
The Group uses financial instruments comprising cash, liquid
resources and debtors/creditors that arise from its operations.
Group Group Company Company
2020 2019 2020 2019
GBP GBP GBP GBP
Financial assets at amortised
cost
Trade and other receivables
excluding prepayments 38,065 49,282 - -
Cash and cash equivalents 6,022,745 2,755,998 4,257,920 2,247,271
---------- ---------- ---------- ----------
6,060,810 2,805,280 4,257,920 2,247,271
---------- ---------- ---------- ----------
Financial liabilities
Trade and other payables (at
amortised cost) 911,301 630,368 168,036 255,510
Lease liabilities (current and
non-current) 412,175 - 61,946 -
---------- ---------- ---------- ----------
1,323,476 630,368 229,982 255,510
---------- ---------- ---------- ----------
The Group's exposure to currency and liquidity risk is not
considered significant. The Group's cash balances are held
in Pound Sterling and in Australian dollars, the latter being
the currency in which the significant operating expenses are
incurred. To date the Group has relied upon equity funding
to finance operations. The Directors are confident that adequate
cash resources exist to finance operations to commercial exploitation,
but controls over expenditure are carefully managed.
The net fair value of financial assets and liabilities approximates
the carrying values disclosed in the financial statements.
The currency of the financial assets is as follows:
Cash and short term deposits 30 June 30 June 2019
2020 GBP
GBP
Sterling 4,257,920 2,247,271
Australian Dollars 1,764,825 508,727
---------- -------------
At 30 June 2020 6,022,745 2,755,998
---------- -------------
The financial assets comprise interest
earning bank deposits.
Contingent liabilities
24
Acquisition of Havieron Project
Under the terms of the agreement for the acquisition of the Havieron Gold Project an initial payment of A$25,000 in cash and 65,490,000 ordinary shares of 0.1 pence each in the Company were made. However, a second payment of 145,530,000 ordinary shares of 0.1 pence each will be made upon a "Decision to Mine".
25 Ultimate Controlling Party
There is considered to be no ultimate controlling entity.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
FR FSDSAIESSELF
(END) Dow Jones Newswires
November 05, 2020 03:51 ET (08:51 GMT)
1 Year Greatland Gold Chart |
1 Month Greatland Gold Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
