TIDMGGP
RNS Number : 4418R
Greatland Gold PLC
29 October 2019
29 October 2019
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 2019.
Chairman's Statement
I am pleased to report on the Company's audited results for the
year ended 30 June 2019.
This year proved to be a period of outstanding progress for
Greatland, as highlighted by the excellent results from the
Company's second drill campaign at its Havieron gold-copper target
in the Paterson region of Western Australia. These results were
instrumental in securing a US$65m Farm-In Agreement with Newcrest
Operations Limited ("Newcrest"), a wholly-owned subsidiary of
Newcrest Mining Limited (ASX:NCM). Newcrest commenced its drilling
programme at Havieron in May 2019 and excellent initial drill
results have defined a series of higher-grade zones within a broad
envelope of mineralisation. We are delighted by these results and
by Newcrest's ongoing commitment to the exploration programme at
Havieron.
Beyond our success at Havieron, we continued to systematically
advance all of our six 100% owned projects, particularly in the
highly prospective Paterson province of Western Australia, where we
have a strong strategic position and believe there are
opportunities to identify tier-one gold-copper deposits. 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 highlights.
Havieron and the Paterson region
During the year, Greatland's second exploration campaign at
Havieron continued to deliver excellent drill results that received
wide ranging industry recognition and caught the attention of
several major gold miners. The signing of the Farm-in Agreement
with Newcrest in March 2019 demonstrates the potential scale of the
project. This followed a series of standout results including an
upper zone of 103m at 3.5g/t gold and 0.93% copper from 459m and a
lower zone of 128m at 7.4g/t gold and 0.54% copper from 660m in our
first drill hole of the second drill campaign (HAD005).
Newcrest launched its drilling programme at Havieron in May 2019
and, post year end, announced three sets of excellent results
(July, September and October 2019), which further support our view
that Havieron has the potential to become a truly significant,
underground mining operation. Newcrest has demonstrated its
continued commitment to the project by increasing the number of
drill rigs at site from two to six, and by meeting the US$5 million
minimum expenditure commitment ahead of the expected timetable.
If the trend of positive drill results continues, the Farm-in
Agreement with Newcrest gives us the potential to fast track
Havieron through to Feasibility Study. The current intention of
both parties is that, subject to a positive Feasibility Study
outcome, the ore from Havieron will be toll processed at Newcrest's
Telfer Gold Mine, which sits approximately 45 kilometres to the
west of Havieron, delivering material benefits for both parties
including lower upfront capital costs, reduced time to production
and first cash flows, and the potential for a significantly higher
net present value for the project.
Elsewhere in the Paterson region, we commenced our first
drilling campaign at another high-priority target, Black Hills,
following positive results from a high-powered, deep-sensing
Induced Polarisation survey that displayed potential for
near-surface gold mineralisation. At our Paterson Range East
licence, we have identified numerous high-priority exploration
targets with a similar discrete magnetic signature to Havieron, and
we continue to advance our exploration activity at Scallywag, a
gold-copper prospect that sits in relatively proximity to
Havieron.
Fundraising from new institutional investors to accelerate
exploration at our high-priority targets
Greatland successfully raised GBP2,983,400 of new equity (net of
costs) during the year. Subsequent to financial year end, Greatland
raised a further GBP3,968,672 of new equity (net of costs) with
funds raised by SI Capital Limited and Numis Securities Limited
("Numis") (acting as introduction agent). In a further indication
of our continued progress, Greatland appointed Numis as joint
broker and broadened the shareholder base with new institutional
and high net worth investors participating in the fundraising
completed in August 2019.
While Greatland continues to maintain a disciplined,
results-based approach towards capital allocation, the funds raised
will give us increased flexibility to accelerate exploration across
our key projects, particularly in the Paterson region.
Strengthened Board and operations
The developments at Havieron have taken the Company to a new
level, both from a corporate and an operational standpoint. In
order to scale up, and to match our ambitions going forward, we
successfully strengthened our board and operations team during the
year. We were delighted to welcome someone of the calibre of Clive
Latcham to the Board, bringing over 30 years of industry
experience, including almost 10 years in senior roles with Rio
Tinto. His expertise and contacts have proven invaluable since he
arrived and I am sure he will continue to be a great addition to
Greatland.
As the Company continues to grow and develop, we want to ensure
we maintain the highest standards. To that end, we have invested in
improving several aspects of Greatland's operations including
Greatland's Safety Management System ("SMS") which assists us to
systematically achieve and maintain high standards for managing our
employees' safety and health.
Looking ahead
Greatland is the only AIM listed company with exposure to the
new "gold/copper rush" in the Paterson region of Western Australia.
Our focus now is to build on our success and to leverage the
knowledge and insights gained at Havieron to prioritise and
accelerate exploration at key targets across our Paterson licences.
We are also working to continue to systematically advance our wider
portfolio of projects.
In addition, we are well positioned to build on our track record
of identifying and acquiring underdeveloped opportunities at
attractive valuations and we will continue to seek to build
shareholder value by acquiring projects that we believe have
genuine tier-one potential in safe jurisdictions.
Our progress this year demonstrates our commitment to our five
year strategy which remains to maximise risk-adjusted return on
shareholders' capital by systematically advancing exploration
across our key assets and seeking opportunities to monetise those
key exploration assets whether through sale, joint venture or
spin-out via initial public offering.
I would like to thank the management team for their tireless
efforts and the significant progress made over the last 12 months.
I would also like to thank our shareholders for their ongoing
support as we continue to look forward with increased
confidence.
Alex Borrelli
Chairman
29 October 2019
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
During the year ended 30 June 2019, Greatland successfully
advanced exploration across its portfolio of projects (six
projects, 100% owned by Greatland), as detailed in the "Review of
key developments by project" section below. Most notably,
Greatland's second drilling campaign at its 100%-owned Havieron
gold-copper project in Western Australia returned excellent results
including 103m at 3.5g/t gold and 0.93% copper from 459m and 128m
at 7.4g/t gold and 0.54% copper from 660m (HAD005), 179.1m at
1.4g/t gold and 0.47% copper from 547.9m (HAD006) and 67m at 2.0g/t
gold and 0.91% copper from 426m (HAD008).
In March 2019, Greatland signed a Farm-in Agreement with
Newcrest Operations Limited ("Newcrest"), a wholly-owned subsidiary
of Newcrest Mining Limited (ASX:NCM), to explore and develop
Greatland's Havieron project. Newcrest has the right to acquire up
to a 70% interest in a 12-block area within E45/4701 that covers
the Havieron target by spending up to US$65m.
The Group's financial position was further strengthened during
the year by the successful raise of GBP2,983,400 of new equity (net
of costs). The Group's cash deposits stood at GBP2,755,998 at 30
June 2019 (compared to GBP3,597,101 at 30 June 2018). These funds
will be used to accelerate exploration across our key exploration
projects, particularly in the Paterson region.
Review of key developments by project
Paterson project (Western Australia), 100% owned
The Paterson project, comprising the Havieron, Paterson Range
East and Black Hills licences, is located in the Paterson region of
northern Western Australia. The three licences collectively cover
more than 385 square kilometres of ground which is considered
prospective for intrusion related gold-copper systems and Telfer
style gold deposits.
In September 2018, Greatland commenced its second drill
programme at Havieron, which was designed to further determine the
extent and orientation of the high-grade zone of mineralisation at
Havieron that was detected in Greatland's maiden drilling campaign.
Highlights of the drill results from the second campaign included
103m at 3.5g/t gold and 0.93% copper from 459m and 128m at 7.4g/t
gold and 0.54% copper from 660m (HAD005), 179.1m at 1.4g/t gold and
0.47% copper from 547.9m (HAD006) and 67m at 2.0g/t gold and 0.91%
copper from 426m (HAD008)
The excellent results from the second drill campaign at Havieron
were fundamental in securing a US$65m Farm-In Agreement with
Newcrest in early 2019. Newcrest subsequently began drilling at the
Havieron target in May 2019. Initial results from Newcrest's
ongoing drilling programme at Havieron have defined up to four
higher-grade zones within a broad mineralised envelope and have
extended the limits of known mineralisation. Best results from
Newcrest's drilling to date include 52m at 7.0g/t gold and 0.17%
copper from 1122m (HAD006 extension), 139.4m at 2.9g/t gold and
0.39% copper from 865.7m (HAD012), 244.6m at 2.0g/t gold and 0.4%
copper from 450m (HAD014) and 96.4m at 4.5g/t gold and 0.14% copper
from 916.4m (HAD018).
During the financial year, Greatland continued to conduct
systematic exploration campaigns across its 100%-owned Paterson
licences. At the Scallywag target (10 kilometres west of Havieron
on E45/4701), Greatland conducted a Mobile Metal Ion ("MMI") survey
which highlighted a multi-element anomalous zone over 6km in strike
length. Ground gravity and induced polarisation (IP) geophysics
survey are currently being conducted over the Scallywag target area
and, together with 3D modelling and detailed aeromagnetic data,
will be used to help establish drill targets.
In June 2018, Greatland commenced its first field exploration
campaign at Black Hills (E45/4512) which successfully identified
multiple gold nuggets at surface and established a strike length of
high-grade gold mineralisation at surface of up to 800 metres.
Subsequently, two Induced Polarisation ("IP") surveys were carried
out. The first IP survey, which commenced in August 2018,
delineated a chargeability anomaly at the Saddle Reefs prospect
approximately 1 kilometre long. The second IP survey, carried out
in June/July 2019, extended that chargeability anomaly to 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
56m at 0.56g/t gold from 68m (SRRC012).
During the period Greatland commenced work on a new, detailed,
low level airborne magnetic survey to cover the entire Paterson
Range East licence. The Paterson Range East licence is 25km north
of the Havieron prospect and covers 224 square kilometres of
Proterozoic basement rocks prospective for Havieron style
gold-copper mineralisation. Comprising approximately 5,200-line
kilometres at a line spacing of 50m the new survey significantly
increased the resolution of approximately twenty magnetic targets
previously identified across the licence and allowed for numerous
high-priority targets, with a similar magnetic signature to
Havieron, to be identified and defined.
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).
A comprehensive IP survey carried out in 2018 highlighted a
large chargeability response, approximately 1,000 metres long,
traversing east-west across the Firetower prospect, which is open
to the east and up to depths of 400 metres. In June 2019, the
Company commenced a drilling programme at Firetower which included
plans to carry out over 2,000m of drilling on five north-south
traverses to test the chargeability anomaly at Firetower, with
additional drilling to test the previously undrilled areas at
Firetower East highlighted by the IP survey. Initial results from
this drilling programme confirmed the presence of broad widths of
gold mineralisation at the Firetower prospect, with best results
including 54.5m at 1.36g/t gold from surface (0m), including 5m at
5.41g.t gold from 45m (hole 2019FTD001).
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 and cobalt.
During the period, Greatland continued field exploration at
Panorama with field reconnaissance and surface geochemical work.
Numerous gold nuggets were found in thin soil cover extending the
strike by nearly 3km to 6.1km over Panorama North (E45/4936).
Further field exploration was conducted and a detailed, low-level
aeromagnetic survey covering the three licences commenced in July
2019.
Ernest Giles project (Western Australia), 100% owned
The Ernest Giles project is located in central Western
Australia, covering an area of approximately 1,370 square
kilometres with over 180km of strike of rocks prospective for gold
and nickel. 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 a reverse circulation
("RC") drilling programme which included twenty five drill holes at
the Meadows area, two drill holes at the Empress area, two drill
holes at the Wishbone area and one drill hole at the Carnegie area
for a total of over 8,200m of drilling. Results from the drilling
campaign at Meadows extended the two previously identified large
zones of gold mineralization: a Western zone with a strike of
approximately 6.2km and open to the north, and an Eastern zone with
a strike of approximately 2.5km. The campaign also detected gold,
silver and copper mineralisation at the Wishbone area.
A comprehensive review of all data for the Ernest Giles project
was carried out later in the year. The Board decided that Greatland
should focus on high priority targets within the project and,
consequently, both the Carnegie (E38/2882) and Empress North
(E38/3228) 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 undertook the acquisition of
LIDAR data with resulting generation of digital elevation models
(DEM) over the licence which will aid in planned exploration on the
ground.
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 covers 52 square kilometres of 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 an aeromagnetic survey of the tenement
allowing high quality digital elevation and geophysics data to be
obtained. During the period, Greatland made an application for an
additional exploration licence (E63/1953) covering 32 square
kilometres which is considered prospective for gold, contiguous to
the north and west of Bromus, which has subsequently been
granted.
Further details regarding exploration activities during the year
can be found on the Company's website at www.greatlandgold.com.
Gervaise Heddle
Chief Executive Officer
29 October 2019
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
SI Capital Limited (Joint Broker)
Nick Emerson/Alan Gunn
Tel: +44 (0)14 8341 3500
Numis Securities Limited (Joint Broker)
Matthew Hasson/John Prior/Alamgir Ahmed
Tel: +44 (0)20 7260 1000
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 AIM-listed (AIM:GGP) natural
resource exploration and development company with a current focus
on gold, copper and nickel exploration projects.
The Company has six main projects; four situated in Western
Australia and two in Tasmania. All projects are 100% owned by
Greatland.
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 project in the Paterson region of Western
Australia. Newcrest has the right to acquire up to a 70% interest
in a 12-block area within E45/4701 that covers the Havieron target
by spending up to US$65m.
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 2019
Notes Year ended Year ended
30 June 30 June
2019 2018
GBP GBP
Revenue 2 - -
Exploration costs (2,309,760) (1,021,493)
Administrative expenses (888,661) (811,359)
Depreciation (37,131) (7,584)
Impairment cost (18,450) -
Operating loss (3,254,002) (1,840,436)
Net finance costs/income 3 (10,305) 3,891
Loss before taxation 4 (3,264,307) (1,836,545)
Income tax expense 5 - -
--------------- ---------------
Loss for the year (3,264,307) (1,836,545)
--------------- ---------------
Other comprehensive income
Exchange differences on translation
of foreign operations (52,730) (74,867)
Other comprehensive income
for the year net of taxation (52,730) (74,867)
--------------- ---------------
Total comprehensive income
for the year attributable
to equity holders of the parent
company (3,317,037) (1,911,412)
--------------- ---------------
Loss per share - basic and 9 (0.10) pence (0.07) pence
diluted
--------------- ---------------
All operations are considered to be continuing.
Group balance sheet
as at 30 June 2019
Note 30 June 2019 30 June 2018
Re-stated
GBP GBP GBP GBP
ASSETS
Non-current assets
Tangible assets 10 103,114 41,877
Intangible assets 11 2,016,783 1,233,648
------------- ------------
2,119,897 1,275,525
Current assets
Cash and cash equivalents 18 2,755,998 3,597,101
Trade and other receivables 13 77,480 79,061
------------- ------------
Total current assets 2,833,478 3,676,162
---------- ----------
TOTAL ASSETS 4,953,375 4,951,687
LIABILITIES
Current liabilities
Trade and other payables 14 (630,369) (685,322)
TOTAL LIABILITIES (630,369) (685,322)
----------
NET ASSETS 4,323,006 4,266,365
---------- ----------
EQUITY
Called-up share capital 15 3,323,420 3,002,256
Share premium reserve 12,554,173 9,749,891
Share based payment
reserve 16 349,606 243,472
Retained earnings (12,072,653) (8,950,444)
Other reserves 168,460 221,190
------------- ------------
TOTAL EQUITY 4,323,006 4,266,365
---------- ----------
Group statement of changes in equity
for the year ended 30 June 2019
Share Share Share Retained Other Total
capital premium based earnings reserves
(restated) account payment
(restated) reserve
GBP GBP GBP GBP GBP GBP
As at 30 June
2017 1,506,955 6,627,270 328,060 (7,223,363) 296,057 1,534,979
------------ ------------ ---------- ------------ ---------- ------------
Loss for the
year - - - (1,836,545) - (1,836,545)
Currency translation
differences - - - - (74,867) (74,867)
Total comprehensive
income - - - (1,836,545) (74,867) (1,911,412)
Share option
charge - - 24,876 - - 24,876
Transfer on
exercise of
options and
warrants - - (109,464) 109,464 - -
Share capital
issued 101,731 4,591,658 - - - 4,693,389
Reclassification
of share capital 1,393,570 (1,393,570) - - - -
Cost of share
issue - (75,467) - - - (75,467)
------------ ------------ ---------- ------------ ---------- ------------
Total contributions
by and distributions
to owners of
the Company 1,495,301 3,122,621 (84,588) 109,464 - 4,642,798
------------ ------------ ---------- ------------ ---------- ------------
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 3,323,420 12,554,173 349,606 (12,072,653) 168,460 4,323,006
---------- ----------- ---------- ------------- --------- ------------
Note:
The brought forward share capital and share premium balances
from 30 June 2017 and 30 June 2018 have been restated by GBP415,358
and GBP1,393,570 to GBP3,002,256 and GBP9,749,891 respectively.
These restatements are a reclassification between the value of
share capital and share premium due to an incorrect calculation of
nominal share capital. The total equity remains unchanged for both
brought forward periods.
Group statement of changes in equity
for the year ended 30 June 2019
Other reserves Merger Foreign currency Total other
reserve translation reserves
reserve
GBP GBP GBP
As at 30 June 2017 225,000 71,057 296,057
--------- ----------------- ------------
Currency translation differences - (74,867) (74,867)
--------- ----------------- ------------
Total comprehensive income - (74,867) (74,867)
--------- ----------------- ------------
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
-------- --------- ---------
Company balance sheet
as at 30 June 2019
Note 30 June 2019 30 June 2018
Re-stated
GBP GBP GBP GBP
ASSETS
Non-current assets
Investment in subsidiary 12 50,000 50,000
Current assets
Cash and cash equivalents 18 2,247,271 2,753,575
Trade and other receivables 13 6,624,946 3,488,649
------------- ------------
Total Current Assets 8,872,217 6,242,224
---------- ----------
TOTAL ASSETS 8,922,217 6,292,224
LIABILITIES
Current Liabilities
Trade and other payables 14 (255,510) (69,108)
TOTAL LIABILITIES (255,510) (69,108)
----------
NET ASSETS 8,666,707 6,223,116
---------- ----------
EQUITY
Called-up share capital 15 3,323,420 3,002,256
Share premium reserve 12,554,173 9,749,891
Share based payment
reserve 16 349,606 243,472
Merger reserve 225,000 225,000
Retained earnings (7,785,492) (6,997,503)
------------- ------------
TOTAL EQUITY 8,666,707 6,223,116
---------- ----------
Company statement of changes in equity
for the year ended 30 June 2019
Called Share Share Retained Merger Total
up share premium based earnings reserve
capital account payment
(restated) (restated) reserve
GBP GBP GBP GBP GBP GBP
As at 30 June
2017 1,506,955 6,627,270 328,060 (6,532,249) 225,000 2,155,036
------------ ------------ ---------- ------------ --------- -----------
Loss for the year - - - (574,718) - (574,718)
------------ ------------ ---------- ------------ --------- -----------
Total comprehensive
income - - - (574,718) - (574,718)
Share option charge - - 24,876 - - 24,876
Transfer on exercise
of options and
warrants - - (109,464) 109,464 - -
Share capital
issued 101,731 4,591,658 - - - 4,693,389
Reclassification
of share capital 1,393,570 (1,393,570) - - - -
Cost of share
issue - (75,467) - - - (75,467)
------------ ------------ ---------- ------------ --------- -----------
Total contributions
by and distributions
to owners of the
Company 1,495,301 3,122,621 (84,588) 109,464 - 4,642,798
------------ ------------ ---------- ------------ --------- -----------
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 3,323,420 12,554,173 349,606 (7,785,492) 225,000 8,666,707
------------ ------------ ---------- ------------ --------- -----------
Note:
The brought forward share capital and share premium balances
from 30 June 2017 and 30 June 2018 have been restated by GBP415,358
and GBP1,393,570 to GBP3,002,301 and GBP9,749,891 respectively.
These restatements are a reclassification between the value of
share capital and share premium due to an incorrect calculation of
nominal share capital. The total equity remains unchanged for both
brought forward periods.
Group cash flow statement
for the year ended 30 June 2019
Notes Year ended Year ended
30 June 30 June
2019 2018
GBP GBP
Cash flows from operating activities
Operating loss (3,254,001) (1,840,436)
Decrease/(Increase) in trade &
other receivables 1,581 (27,268)
(Decrease)/Increase in trade &
other payables (70,454) 566,494
Depreciation 37,131 7,584
Impairment charge 18,450 -
Share option charge 248,232 24,876
------------- -------------
Net (decrease) in cash and cash
equivalents from operating activities (3,019,061) (1,268,750)
------------- -------------
Cash flows from investing activities
Interest received 5,195 3,891
Payments to acquire intangible
assets (688,517) (361,711)
Payments to acquire tangible assets (98,774) (49,267)
------------- -------------
Net cash (out)flows used in investing
activities (782,098) (407,087)
------------- -------------
Cash flows from financing activities
Proceeds from issue of shares 3,115,900 4,443,988
Transaction costs of issue of
shares (132,500) (75,467)
------------- -------------
Net cash inflows from financing
activities 2,983,400 4,368,521
------------- -------------
Net (decrease)/increase in cash
and cash equivalents 18 (817,759) 2,692,684
Cash and cash equivalents at the
beginning of period 3,597,101 930,500
Exchange (loss) on cash and cash
equivalents (23,344) (26,083)
------------- -------------
Cash and cash equivalents at end
of period 18 2,755,998 3,597,101
------------- -------------
During the year shares in the Company totalling GBP142,045
(2018: GBP249,401) were issued for the acquisition of intangible
assets (see note 15). 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 2019
Notes Year ended Year ended
30 June 30 June
2019 2018
GBP GBP
Cash flows from operating activities
Operating loss (914,836) (574,818)
Decrease in trade & other receivables 5,749 4,163
Increase/(Decrease in trade &
other payables 170,901 (29,855)
Share option charge 248,232 24,876
-------------- --------------
Net (decrease) in cash and cash
equivalents from operations (489,954) (575,634)
-------------- --------------
Cash flows from investing activities
Interest received 250 100
Loans to subsidiary (3,000,000) (1,950,000)
Net cash (outflows) used in investing
activities (2,999,750) (1,949,900)
--------------
Cash flows from financing activities
Proceeds from issue of shares 3,115,900 4,443,988
Transaction costs of issue of
shares (132,500) (75,467)
-------------- --------------
Net cash flows from financing
activities 2,983,400 4,368,521
-------------- --------------
Net (decrease)/increase in cash
and cash equivalents 18 (506,304) 1,842,987
Cash and cash equivalents at the
beginning of period 2,753,575 910,588
-------------- --------------
Cash and cash equivalents at end
of period 18 2,247,271 2,753,575
-------------- --------------
During the year shares in the Company totalling GBP142,045
(2018: GBP249,401) were issued for the acquisition of intangible
assets (see note 15). 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 2019
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 2019 were authorised for
issue by the board on 29 October 2019 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
The Group has applied the following standards and amendments
for the first time for their annual reporting period
commencing 1 July 2018:
- IFRS 9 Financial Instruments
- IFRS 15 Revenue from Contracts with Customers
No retrospective adjustments were required following
the adoption of IFRS 9 and IFRS 15.
On 1 July 2018 (the date of initial application of
IFRS 9), the Group's management assessed which business
models apply to the financial assets held by the Group
and classified its financial instruments into the appropriate
IFRS 9 categories. No reclassifications were required.
New standards, amendments and interpretations not yet
adopted
At the date of authorisation of these financial statements,
the following Standards and Interpretations which have
not been applied in these financial statements, were
in issue but not yet effective for the year presented:
- IFRS 16 in respect of Leases which will be effective
for accounting periods beginning on or after 1 January
2019.
- IFRS 17 Insurance Contracts (effective date 1 January
2021).
There are no other IFRSs or IFRIC interpretations that
are not yet effective that would be 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 goodwill and intangibles with indefinite
useful lives
The Group determines whether goodwill and intangibles
with indefinite useful lives are impaired at least
on an annual basis. This requires an estimation of
the recoverable amount of the cash-generating units
to which the goodwill and intangibles with indefinite
useful lives are allocated.
Share-based payment transactions
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.
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.
Going Concern
The consolidated entity has incurred a loss before
tax of GBP3,264,307 for the year ended 30 June 2019,
and had a net cash outflow of GBP3,801,159 from operating
and investing activities. At that date there were net
current assets of GBP2,203,109. 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 2020 and the Group has demonstrated
a consistent ability to do so. This includes a share
issuance of 225,813,513 placing shares for gross proceeds
of GBP4,177,550 as announced by the Company on 12 August
2019.
The Group's cash flow forecast for the 12 months ending
31 October 2020 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.
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.
1.5 Goodwill
Goodwill on acquisition is capitalised and shown within
fixed assets. Positive goodwill is subject to annual
impairment review with movements charged in the income
statement.
Negative goodwill is reassessed by the Directors and
attributed to the relevant assets to which it relates.
1.6 Non-current asset investments
Investments in subsidiary companies are classified
as non-current assets and included in the balance sheet
of the Company at cost at the date of acquisition irrespective
of the application of merger relief under the Companies
Act.
1.7 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.
1.8 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.
1.9 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
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
The Group had no other income during the periods
ending 30 June 2019 and 30 June 2018. 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/revenue
Borrowing costs are recognised as an expense when
incurred.
Finance revenue 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 receivables, which generally have 30 day terms,
are recognised and carried at original invoice amount
less an allowance for any uncollectible amounts.
An allowance for doubtful debts is made when there
is objective evidence that the Group will not be
able to collect the debts. Bad debts are written
off when identified.
1.14 Financial instruments
The Group's financial instruments, other than its
investments, comprise cash and items arising directly
from its operation such as trade debtors and trade
creditors. The Group has an overseas subsidiary in
Australia whose expenses are denominated in Australian
Dollars. Market price risk is inherent in the Group's
activities and is accepted as such.
There is no material difference between the book
value and fair value of the Group's cash.
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. A substantial proportion
of these costs are carried forward in the balance sheet
as intangible fixed assets.
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 following tables present revenue and loss information
and certain asset and liability information by geographical
segments:
UK Australia Total
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 (3,254,002)
Interest receivable 5,195
Interest payable (15,500)
Loss on disposal of investments -
--------------
Loss before taxation (3,264,307)
Taxation expense -
--------------
Loss after taxation (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 4,953,375
------------
Segment liabilities (255,510) (374,859) (630,369)
------------ ------------ ------------
Total liabilities (630,369)
------------
Other segment information:
Capital expenditure - 929,338 929,338
------------ ------------ ------------
Depreciation - 37,131 37,131
------------ ------------ ------------
Impairment - 18,450 18,450
------------ ------------ ------------
UK Australia Total
Year ended 30 June 2018 GBP GBP GBP
Revenue
Total segment revenue - - -
------------ -------------- --------------
Total consolidated revenue -
--------------
Result
Segment results (574,818) (1,265,618) (1,840,436)
------------ -------------- --------------
Loss before tax and finance
costs (1,840,436)
Interest receivable 3,891
Loss on disposal of investments -
--------------
Loss before taxation (1,836,545)
Taxation expense -
--------------
Loss after taxation (1,836,545)
--------------
UK Australia Total
As at 30 June 2018 GBP GBP GBP
Assets and liabilities
Segment assets 2,787,522 2,164,165 4,951,687
----------- ------------
Total assets 4,951,687
------------
Segment liabilities (69,108) (616,214) (685,322)
----------- ------------ ------------
Total liabilities (685,322)
------------
Other segment information
Capital expenditure - 660,380 660,380
----------- ------------ ------------
Depreciation - 7,584 7,584
----------- ------------ ------------
3 Net finance costs 2019 2018 GBP
GBP
Finance revenue Finance costs 5,195 3,891
(15,500) -
---------- ----------
(10,305) 3,891
---------- ----------
4 Loss on ordinary activities before taxation 2019 2018
GBP GBP
Loss on ordinary activities before taxation
is stated after charging:
Auditors' remuneration - audit Depreciation 16,200 15,000
Impairment charge 37,131 7,584
Directors' emoluments 18,450 -
962,406 611,327
---------- --------------
Auditors' remuneration for audit services above excludes
AU$7,814 (2018: AU$5,100) charged by Charles Foti Business
Services (Australia) relating to the audit of the subsidiary
company.
5 Taxation
2019 2018
Analysis of charge in year GBP GBP
Tax on profit on ordinary activities - -
---------- ----------
Factors affecting tax charge for year
The differences between the tax assessed for the year
and the standard rate of corporation tax are explained
as follows:
2019 2018
GBP GBP
Loss on ordinary activities before
tax (3,264,307) (1,836,545)
Standard rate of corporation tax in
the UK 19% 19%
GBP GBP
Loss on ordinary activities multiplied
by the standard rate of corporation
tax (620,218) (348,944)
Effects of:
Expenses not deductible for tax:
Share option charge 47,164 4,726
Future tax benefit not brought to account 573,054 344,218
------------ ------------
Income tax expense - -
------------ ------------
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.
6 Employee information (excluding directors) 2019 2018
Staff costs comprised: GBP GBP
Wages and salaries 195,139 103,171
Bonus 23,798 27,285
15,220 5,899
Pension Share option charge 58,471 5,654
-------- --------
292,628 142,009
-------- --------
Number Number
Exploration 3 2
-------- --------
Of the total Staff costs in the year, GBP229,773 (2018:
GBP115,628) 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.
(2018: GBPNil)
8 Directors' emoluments 2019 2018
GBP GBP
Directors' remuneration 787,116 592,104
Share option charge 175,290 19,223
---------- ----------
962,406 611,327
---------- ----------
Directors' Pension /Superannuation Bonus Total
salary
2019 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 30,826 144,736 342,506
30,826 144,736 342,506
40,000
21,319 785 20,000 60,785
- 20,000 41,319
------------- -------------------------- ---------- ----------
395,207 62,437 329,472 787,116
------------- -------------------------- ---------- ----------
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.
See Note 16 for share options granted during the year.
Also, see note 22 for related party transactions.
Directors' Pension /Superannuation Bonus Total
salary
2018 GBP GBP GBP GBP
Executive directors
Callum Baxter Gervaise
Heddle Non-executive
directors Alex Borrelli
Michael McNeilly
(resigned 25 October
2017) 160,434
160,434 14,204 92,187 266,825
14,204 92,187 266,825
38,000
7,548 406 12,500 50,906
- - 7,548
------------ ------------------------ --------- ----------
366,416 28,814 196,874 592,104
------------ ------------------------ --------- ----------
Of the total Directors' remuneration disclosed above in the
income statement, 75% (or GBP200,118) for Callum Baxter and 25% (or
GBP66,706) for Gervaise Heddle has been allocated to exploration
costs in the income statement for the year.
See Note 16 for share options granted during the year.
Also, see note 22 for related party transactions.
9 Loss per share
The basic loss per share is derived by dividing the
loss for the period attributable to ordinary shareholders
by the weighted average number of shares in issue.
2019 2018
GBP GBP
Loss for the period (3,264,307) (1,836,545)
---------------- -----------------
Weighted average number of Ordinary
shares of GBP0.001 in issue
Loss per share - basic 3,252,941,141 2,773,225,653
(0.10) pence (0.07) pence
---------------- -----------------
Weighted average number of Ordinary
shares of GBP0.001 in issue inclusive
of outstanding options 3,252,941,141 2,773,225,653
---------------- -----------------
As 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.
10 Tangible fixed assets - Group
Motor vehicle Equipment Total
Cost GBP GBP GBP
At 30 June 2018 - 49,267 49,267
Disposals during the period Additions - - -
during the period 33,310 65,464 98,774
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 during the period - - -
Charge for the period 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
-------------- ---------- --------
Motor vehicle Equipment Total
Cost GBP GBP GBP
At 30 June 2017 - - -
Disposals during the period Additions - - -
during the period - 49,267 49,267
Foreign exchange rate fluctuations - - -
--------------- -------------- --------
At 30 June 2018 - 49,267 49,267
-------------------- -------------- --------
Depreciation
At 30 June 2017 - - -
Disposals during the period
- - -
Charge for the period - 7,584 7,584
Foreign exchange rate fluctuations - (194) (194)
-------------------- -------------- --------
At 30 June 2018 - 7,390 7,390
-------------------- -------------- --------
Net book value
At 30 June 2018 - 41,877 41,877
-------------------- -------------- --------
At 30 June 2017 - - -
--------------- -------------- --------
11 Intangible non-current 2019 2018
assets - Group GBP GBP
Exploration properties
At 30 June 2018 1,864,442 1,302,309
Additions during the period 830,563 611,112
Impairment during the period (18,450) -
Foreign exchange rate fluctuations (28,978) (48,979)
-------------- ----------
At 30 June 2019 2,647,577 1,864,442
-------------- ----------
Impairment
At 30 June 2018 (630,794) (630,794)
Charge for the period - -
Foreign exchange rate fluctuations - -
-------------- ----------
At 30 June 2019 (630,794) (630,794)
-------------- ----------
Net book amount
At 30 June 2019 2,016,783 1,233,648
-------------- ----------
At 30 June 2018 1,233,648 671,515
-------------- ----------
Impairment review
As at 30 June 2019, the Directors carried out an impairment
review of the exploration properties and considered an impairment
charge was not required (2018: GBPnil). However, during the year
GBP2,295,560 (2018: GBP1,021,493) 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 Non-current asset investments in subsidiary GBP
- Company
Cost
At 30 June 2018 50,000
Impairment of investment -
-------
At 30 June 2019 50,000
Net book amount
At 30 June 2019 50,000
-------
At 30 June 2018 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 Australia Common 100% Mineral exploration
Pty Ltd
13 Trade and other receivables Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
Current trade and other
receivables:
Prepayments 51,104 34,058 28,198 33,946
Other debtors 26,376 45,003 - -
Loans due from subsidiary - - 6,596,748 3,454,703
--------- ------------
Total 77,480 79,061 6,624,946 3,488,649
--------- --------- ------------ ------------
The loan due from subsidiary was interest free throughout
the period and has no fixed repayment date. No provision
GBPnil (2018: GBPnil) has been made against this loan.
14 Trade and other payables Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
Current trade and other
payables:
Trade creditors 356,282 615,818 35,010 24,786
Accruals 209,016 44,050 209,016 44,050
Salaries and Social Security 10,577 - 10,577 -
Employee Benefits 54,494 25,454 907 272
---------- --------- ---------- ---------
Total 630,369 685,322 255,510 69,108
---------- --------- ---------- ---------
15 Share capital Called up, allotted, issued and fully paid Number GBP
As previously stated at 30 June 2018, Ordinary
shares of GBP0.001 each 3,002,256,509 1,193,328
Adjustments to share capital
Correction at 30/06/17 - 415,358
Correction at 30/06/18 - 1,393,570
-------------- ----------
Restated at 30 June 2018, Ordinary shares
of GBP0.001 each 3,002,256,509 3,002,256
Issued during the year
On 27 July 2018, at a price of GBP0.0125,
for cash 212,000,000 212,000
On 03 September 2018, at a price of GBP0.0125,
for drilling services (DDH1) 11,363,636 11,364
On 14 January 2019, at a price of GBP0.02,
for cash 7,300,000 7,300
On 09 April 2019, at a price of GBP0.005,
for cash 25,000,000 25,000
On 09 April 2019, at a price of GBP0.002,
for cash 25,000,000 25,000
On 09 April 2019, at a price of GBP0.0028,
for cash 33,000,000 33,000
On 09 April 2019, at a price of GBP0.007,
for cash 7,500,000 7,500
As at 30 June 2019, Ordinary shares of
GBP0.001p each 3,323,420,145 3,323,419
-------------- ----------
Note:
The brought forward share capital and share premium balances
from 30 June 2017 and 30 June 2018 have been restated by
GBP415,358 and GBP1,393,570 respectively to GBP3,002,301
and GBP9,749,891 respectively. These restatements are a reclassification
between the value of share capital and share premium due
to an incorrect calculation of nominal share capital. The
total equity remains unchanged for both brought forward periods.
Total share options in issue
As at 30 June 2019 there were 213.5 million unexercised options
over Ordinary shares; 25 million exercisable at 0.2 pence
per share in issue, 42 million exercisable at 0.28 pence
per share in issue, 47.5 million exercisable at 0.7 pence
per share in issue, 39.5 million exercisable at 1.4 pence
per share in issue, 39.5 million exercisable at 2 pence per
share in issue and 20 million exercisable at 2.5 pence per
share in issue (2018: 205 million).
Total warrants in issue
On 3 September 2018 the Company announced that it had issued to
DDH1 11,363,636 ordinary shares of 0.1 pence for the consideration
of GBP142,045. 11,363,636 warrants with a 2.0 pence exercise price
and an exercise period of 12 months were granted on the same date.
In respect of these warrants a share based payment charge of
GBP14,200 (approximately 10% of the consideration paid in ordinary
shares) has been charged to the Income Statement.
As at 30 June 2019 there were 204.7 million unexercised investor
warrants over Ordinary shares at 2.0 pence outstanding. These
warrants expired unexercised on 9 August 2019.
16 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, 99 million options were granted for no cash consideration;
79 million options were
granted for a period of three years expiring on 07 September
2022 and 20 million options
were granted for a period of three years expiring on 22 March
2023. Granted At 30 Share Exercisable Exercise Date from Expiry
during June options at 30 price which date
the period 2018 exercised June (pence) exercisable
2019
20 Apr 20 Apr
C Baxter - 25,000,000 (25,000,000) - 0.2p 2016 2019
18 Jan 18 Jul
C Baxter - 28,000,000 (28,000,000) - 0.28p 2017 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
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
27 May 27 May
G Heddle - 25,000,000 (25,000,000) - 0.5p 2016 2019
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
18 Jan 18 Jul
G Cryan - 5,000,000 (5,000,000) - 0.28p 2017 2020
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
18 Aug 16 Feb
B Wasse - 7,500,000 (7,500,000) - 0.7p 2017 2021
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
21 Mar 20 Mar
C Latcham 10,000,000 - - 10,000,000 2.5p 2020 2023
21 Mar 20 Mar
M Sawyer 10,000,000 - - 10,000,000 2.5p 2020 2023
99,000,000 205,000,000 (90,500,000) 213,500,000
----------- ------------ ------------- ------------
The fair value of the 79 million options granted on 07
September 2018 using an adjusted Black-Scholes method
and assumptions were as follows: Options issued 39.5 million share 39.5 million share
options options
Grant date 07 September 2018 07 September 2018
Fair value at measurement 0.609 pence 0.505 pence
date
Share price at grant date 1.225 pence 1.225 pence
Exercise price 1.4 pence 2.0 pence
Expected volatility 83% 83%
Vesting period: 1 year after 07 September 2019 07 September 2019
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 GBP144,367 GBP119,676
------------------- -------------------
The fair value of the 20 million options granted on 22
March 2019 using an adjusted Black-Scholes method and
assumptions were as follows: Options issued 20 million share
options
Grant date 22 March 2019
Fair value at measurement 0.607 pence
date
Share price at grant date 1.935 pence
Exercise price 2.5 pence
Expected volatility 58%
Vesting period: 1 year after 22 March 2020
grant
Option life 36 months
Expected dividends 0.00%
Risk free interest rate 0.50%
Discount 40%
Fair value of options granted GBP72,848
-----------------
The fair value of the share options expensed during the
year was GBP234,032, being the value of the options attributable
to the vesting period to 30 June 2019 (2018: GBP24,876).
GBP102,859 will be expensed in the following year, being
the value of these options attributable to the end of
their vesting dates. GBP142,098 in respect of the exercised
share options was transferred to reserves (2018: GBP109,464).
The volatility is set by reference to the historic volatility
of the share price of the Company.
17 Nature and purpose of reserves - Other reserves
Merger Reserve
The merger reserve was created in accordance with the merger relief provisions of the Companies Act 1985 (as amended),
and 2006, relating to accounting for business combinations involving the issue of shares at a premium. In preparing
group consolidated financial statements, the amount by which the fair value of the shares issued exceeded their
nominal value was recorded within a merger reserve on consolidation, rather than in a share premium account.
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of
the financial statements of foreign subsidiaries.
Available for sale financial asset reserve
This reserve is used to record the post-tax fair value movements in available for sale assets and investments.
18 Cash and cash equivalents 30 June Currency Net Cash 30 June
- Group 2019 adjustments flow 2018
GBP GBP GBP GBP
Cash at bank and in
hand 2,755,998 (23,344) (817,759) 3,597,101
Total cash and cash
equivalents 2,755,998 (23,344) (817,759) 3,597,101
------------- ---------------- -------------------------- ----------------------------
Cash and cash equivalents 30 June Currency Net Cash 30 June
- Company 2019 adjustments flow 2018
GBP GBP GBP GBP
Cash at bank and in
hand 2,247,271 - (506,304) 2,753,575
------------- ---------------- -------------------------- ----------------------------
Total cash and cash
equivalents 2,247,271 - (506,304) 2,753,575
------------- ---------------- -------------------------- ----------------------------
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 2019, 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.
20 Significant agreements and transactions
In March 2019, Greatland signed a Farm-in Agreement with Newcrest
Operations Limited ("Newcrest"), a wholly-owned subsidiary
of Newcrest Mining Limited (ASX:NCM), to explore and develop
Greatland's Havieron gold-copper project in the Paterson region
of Western Australia. Newcrest has the right to acquire up
to a 70% interest in a 12-block area within E45/4701 that
covers the Havieron target by spending up to US$65m. The Farm-in
Agreement with Newcrest and results from Newcrest's drilling
campaign at Havieron are discussed in further detail in the
Chairman's Statement and the Strategic Report.
There were no other significant agreements and transactions
to report other than that reported in Note 21.
21 Events after the reporting period Post-Balance Sheet
Capital Raise and issue of options
On 12 August 2019 the Company announced that it had
raised GBP4,177,550 through a placing and subscription
of 225,813,513 new ordinary shares of 0.1 pence each
at a subscription price of 1.85 pence per Ordinary Share.
Under this placing, warrants to subscribe for a further
225,813,513 new Ordinary Shares in the Company were
issued at an exercise price of 2.5p per warrant, within
a 2 year exercise period.
On 26 September 2019 the Company announced that it had
issued a total of 64,000,000 options to directors and
key employees; 32,000,000 options at 2.5p per share
option and 32,000,000 options at 3.0p per share option.
Each option has a 12 month vesting period and entitles
the holder upon exercise to one ordinary share of 0.1
pence in the capital of the Company. All options have
a life of three years from the vesting date and all
options will vest immediately upon a change of control
event.
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.
2019 2018
GBP GBP
Short-term employee benefits 787,116 592,104
Share based payments 248,232 24,876
Key management personnel 234,157 136,355
------------- --------------------------------------------------------------------------
1,269,505 753,335
------------- --------------------------------------------------------------------------
23 Financial instruments - Group
The Group uses financial instruments comprising cash,
liquid resources and debtors/creditors that arise from
its operations.
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 2019 30 June 2018
GBP GBP
Sterling 2,247,271 2,753,575
Australian Dollars 508,727 843,526
------------- --------------
At 30 June 2019 2,755,998 3,597,101
------------- --------------
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 (see note 15)
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 Control
There is considered to be no ultimate controlling entity.
26 Retained earnings of the parent Company
As permitted by section 408 of the Companies Act 2006,
the profit and loss account of the parent Company has
not been separately presented in these accounts. The
parent Company loss for the period was GBP930,087 (2018
GBP574,718).
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.
END
FR UKVBRKSARURA
(END) Dow Jones Newswires
October 29, 2019 04:34 ET (08:34 GMT)
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