11 November 2021

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

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 2021.  

 

Chairman's Statement

 

I am pleased to report on the Company's audited results for the year ended 30 June 2021.

It has been another year of considerable progress for Greatland Gold plc ("Company") and the consolidated group ("Greatland" or the "Group"), which has seen its evolution from a junior explorer to a mining development and exploration company.  We achieved several significant milestones at our flagship asset Havieron including commencing construction and surface infrastructure activities, taking major steps towards bringing a tier-one gold copper mine into production.

 

Such has been the pace of development at Havieron, that during the financial year Greatland entered into a new landmark joint venture agreement with Australia's largest gold producer Newcrest Mining Limited (Newcrest, ASX: NCM).  This partnership with a tier-one, experienced operator in this region has enabled greater investment in Havieron and an extensive programme of growth drilling which furthered our understanding in the deposit and accelerated its development.  In December 2020, we announced a maiden resource of 3.4Moz Au and 160Kt Cu, the first of many graduating studies into the size of Havieron. Subsequent to the year end in October 2021, Greatland was awarded the winner of the 2021 Commodity Discovery Fund award for its Havieron discovery.

 

The Havieron gold-copper discovery is a world class deposit and continues to deliver excellent results with significant intercepts of high-grade gold and copper outside of the existing resource shell.  With over 200,000 metres of drilling now completed, the equivalent distance of London to Sheffield we have significantly enhanced our understanding of the deposit and of the likelihood of continuing to upgrade to the Mineral Resource Estimate in the near-term.

 

Subsequent to the year end, a Pre-Feasibility study was released on an initial segment of the Havieron deposit which has detailed a development pathway to first gold produced and operating cashflow.  The study revealed the tip of the Havieron iceberg with a fraction of the initial resource supporting the total capex of the project, justifying a fast start approach to early cashflow generation and reinvesting back into Havieron development and infrastructure.  This supports our belief that the profile of Havieron makes it a globally unique opportunity for bringing a low risk, low capex tier-one gold-copper mine into production. 

 

Capitalising upon the success at Havieron, Greatland also entered into a second joint venture with Newcrest during the year in the prospective Paterson region.  The Juri Joint Venture for the Paterson Range East and Black Hills licences represents an affirmation of Greatland's belief in the potential of these areas, maximising the long-term strategic value of these licences.  Subsequent to year end Greatland completed the maiden drill programme at Juri and announced intercepting gold mineralisation from the initial four assayed holes, including first gold identified at the Goliath prospect.

 

The rapid progress seen at Havieron has not lessened our appetite for exploration and new discoveries and we are excited by several other prospects that display similar geophysical characteristics to the Havieron gold-copper deposit, particularly in the Paterson region where Greatland has an expanded strategic footprint. 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.

 

Exploration portfolio

 

At Scallywag, adjacent to the Havieron project, exploration work consisted of airborne Electro-Magnetic (EM) surveying, target identification and drilling. The 2021 Scallywag drill programme is currently underway designed to test a series of airborne EM anomalies identified in the 2020 survey and three new targets identified through ongoing geological interpretation.

 

During the year and post period, Greatland expanded its strategic footprint in the Paterson to over 1,000 square kilometres through the acquisition of the Canning and Rudall exploration licence applications, which contains similar magnetic anomalies to the Havieron deposit, and by acquiring additional tenements in the Paterson South region.

 

At the Panorama tenement, a 362 line km heliborne electromagnetic and magnetic survey over part of the tenements was undertaken and at Ernest Giles, our land holdings increased as Greatland applied for two additional exploration licences, Mount Smith and Welstead, contiguous to the current live licences of Peterswald and Calanchini.

 

During the year, a retrospective adjustment has been made to reflect a change in accounting policy of exploration and evaluation expenditure. Note 1.19 within the financial statements provides further details regarding the change in accounting policy.

 

In addition, the Group transferred £17,091,622 of capitalised exploration costs associated with the Havieron project from intangible assets to mine development during the year following the commencement of the construction of the box cut and the decline during the year.

 

Corporate

 

Greatland successfully transitioned the leadership and management of the Group to Shaun Day as Chief Executive Officer and Executive Director in February 2021.  Shaun has extensive industry experience and the required skillset to maximise Havieron and lead Greatland into the future as a development and mining company.  Since his appointment, Shaun has focussed on broadening the capability of the management and technical teams to meet the evolving needs of the Group. 

 

A number of subsequent high quality, new appointments with Otto Richter appointed as Group Mining Engineer, Christopher Toon as Chief Financial Officer and John McIntyre as Exploration Manager has demonstrated Greatland's growing reputation as a business in the industry and desire to work with a world class asset. This evolution continued post period with the establishment of the Technical Advisory Committee and appointment as a Non-Executive Director of Paul Hallam, an industry veteran with more than four decades of Australian and international resource experience. We are grateful to both Gervaise Heddle, our former Chief Executive Officer, and Callum Baxter who has joined our Technical Advisory Committee, who stepped down from the Board on 12 March 2021 and 31 August 2021 respectively, for their significant contribution to the development of the Group.

 

In May 2021, we appointed Canaccord Genuity as Corporate Brokers and Financial Advisers to complement Berenberg, Hannam & Partners and SI Capital as we continue to expand our institutional investor base in line with the growth of the Company.

 

The Company is well positioned to fund its portfolio of projects well into the next financial year.  For the Havieron project, Greatland entered into a US$50m loan facility during the year with Newcrest to keep pace with an accelerated development timetable up to project Feasibility.  For the Juri Joint Venture, Greatland has benefited from Newcrest initially funding the exploration campaign freeing up cash reserves for our own exploration plans in the Paterson region and across our other projects.

 

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 as well as on our Environmental, Social and Governance (ESG) focus for developing a responsible and sustainable resources company.

 

Greatland benefits from operating in a tier one jurisdiction in the state of Western Australia.  The remote location, coupled with health protocols and tight border controls has resulted into minimal impact of COVID-19 on operations, as the total number of community cases recorded across the entire state is less than 15 for the year. 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 different looking company to a year ago, as demonstrated by the rapid change and accelerated development progress at our flagship Havieron asset.  There is lots to do and whilst our success at Havieron provides an exceptional foundation and cornerstone project on which to build, we are not resting on this. In addition, 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.

 

The transformation of Greatland over the past few years has been remarkable and we are now in the strongest position we have ever been to capitalise upon our recent success. We remain committed to increasing value for our shareholders and we look forward to continuing along this exciting journey.

 

On a macro level, a mix of tailwinds and challenges endure for gold prices.  Support exists due to the uncertainty in global markets from ongoing COVID-19 and uneven economic recovery with continuing central bank stimulus and higher rates of inflation. We also believe the gold price will be further supported by supply challenges, as major new gold discoveries in safe jurisdictions are becoming less frequent and as reserves at larger deposits are depleted.

 

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.  The progress we have taken over the past year is a credit to our management team and their strategy.  Finally, I would like to thank all our shareholders for their continued support and feedback. We are working tirelessly to ensure Greatland is maximising shareholder value and we expect that the current year will be at least 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 precious and base metals with a focus on gold and copper. The Board seeks to increase shareholder value by advancing the development of current projects, the systematic exploration of its existing resource assets, and by acquiring exploration and development opportunities in underexplored areas.

 

The Group's strategy and business model is developed by the Chief Executive Office and is approved by the Board. The Executive Directors who report to the Board are responsible for implementing the strategy and managing the business with the management team.

 

The Group's strategy is to develop the Havieron asset, advance projects that have potential for the discovery of large mineralised systems (typically considered in excess of ten million ounces of gold) and pursue opportunities for in-organic growth with a view to safely and sustainably creating wealth for the benefit of all stakeholders.

 

Business development and performance

The financial year ended 30 June 2021 was a transformational period for the Company. During this period Greatland successfully advanced development and exploration across its portfolio of project assets with significant milestones achieved at the Group's flagship asset, the world-class Havieron gold-copper deposit in the Paterson region of Western Australia.

 

After the granting of a mining licence at Havieron (M45/4701) on 9 Oct 2020, Greatland entered into a Joint Venture with Newcrest Mining Limited over this 12 block area for the continued development and expansion of this asset.

 

Infill and step out drilling during the year has continued to return excellent results demonstrating continuity of high-grade mineralisation at Havieron with expansion of the mineralisation in the North West Crescent and Northern Breccia, Eastern Breccia, South East Crest and Breccia areas. This resulted in a maiden resource of 4.2m oz Au eq announced on 10 Dec 2020.

 

In Feb 2021, construction activities commenced at Havieron with the quick completion of the box cut and portal to enable the start of the decline in May 2021.

 

Subsequent to year end, a Pre-Feasibility study was completed and announced on 12 Oct 2021 which outlined the pathway to achieve commercial production within two to three years from commencement of an exploration decline, subject to a positive decision to mine

 

In addition to the Havieron project, the Group also entered into a JV with Newcrest on two other Paterson licences, Black Hills and Paterson Range East, known as the Juri JV, which sees the Group operate exploration on the licences over the next two years. Newcrest earned a 25% interest on both areas on signing with a right to earn up to 75% interest by spending up to A$20m as part of a two-stage farm-in over five years, including a A$3m minimum commitment for Stage 1.

 

The Group's financial position was further strengthened during the year by a loan agreement with Newcrest where the Group have access to a loan facility totalling US$50million for early works and growth drilling at Havieron from the start of the joint venture and up to the Feasibility study. A further £4.4m on the exercise of warrants and options was received by the Group throughout the year. The Group's cash deposits stood at £6,212,057 at 30 June 2021 (compared to £6,022,745 at 30 June 2020). These funds will be used to accelerate exploration across our key exploration projects, particularly in the Paterson region.

 

During the year, a retrospective adjustment has been made to the carrying values to reflect a change in accounting policy of exploration and evaluation expenditure.

Previously costs associated with an exploration activity were capitalised if, in management's opinion, the results from that activity led to a material increase in the market value of the exploration asset.

Under the new policy exploration and evaluation expenditure where the commercial viability of extracting the mineral resource has not yet been established will be expensed when incurred . Once management believe the commercial viability of extracting the mineral resource are demonstrable, which is considered to be following a pre-feasability study or similar, the Group will capitalise any further evaluation costs incurred.

This has resulted in costs associated with the Havieron being capitalised  from 1 July 2020, with all prior year exploration and evaluation expenditure expensed when incurred on the basis the commercial viability of extracting the mineral resource was not yet established. The Group transferred £17,091,622 of capitalised exploration costs associated with the Havieron project from intangible assets to mine development during the year following the commencement of the construction of the box cut and the decline during the year. Note 1.19 within the financial statements provides further details regarding the change in accounting policy.

Review of key developments by project

Paterson project (Western Australia), one granted mining licence (Havieron) jointly owned by Newcrest Mining who have a 60% stake. Three granted exploration licences; two (Black Hills, Paterson Range East) 75% owned in JV with Newcrest who own the remaining 25%, one (Scallywag) 100% owned, exploration licence applications (Rudall, Canning) 100% owned.  Subsequent to year end, ownership in two exploration licences (Black Hills and Paterson Range East) moved to 49% owned in JV with Newcrest.  Acquisition of licence areas from Province Resources in September 2021 added two new licences, Pascalle and Taunton and two licence applications in the Paterson South area. 

The Paterson project is located in the Paterson region of northern Western Australia. The licences collectively cover more than 567 square kilometres of ground which is considered prospective for intrusion related gold-copper systems and Telfer style gold deposits along with the Havieron gold-copper resource.

During the 12 months to 30 June 2021, the Company together with JV partner Newcrest was granted a mining licence M45/4701 Havieron (9 Oct 2020) under a 21 year term, which covers the 12 blocks of the previous E45/4701 licence.

The company now retains 100% ownership of the remaining blocks of E45/4701 Scallywag. During the 12 months to 30 June 2021 the Company applied for a further four exploration licences E45/5826 Canning, E45/5929 Salvation Well North, E45/5930 Salvation Well, E45/5931 Salvation Well South East in the Canning area of the Paterson region.

Newcrest expanded the drill campaign at Havieron M45/4701 and continued with infill and step-out drilling with very successful results. Newcrest released an Inferred Resource for a portion of the Crescent Sulphide Zone and adjacent breccias, reporting a 4.2m oz Au equivalent resource.

Exploration work over the Scallywag licence E45/4701 consisted of airborne EM surveying, target identification and drilling.

Exploration continued on the Black Hills licence E45/4512 and Paterson Range East E45/4928, with the completion of airborne EM surveys and the identification of a series of targets that warrant drilling in the FY 2022 exploration program.

All exploration costs, other than those related to the Havieron project, were expensed through the statement of comprehensive income during the year on the basis the commercial viability of extracting the mineral resource was not yet established.

Ernest Giles project (Western Australia), 100% owned

The Ernest Giles project is located in central Western Australia, covering an area of approximately 1950 square kilometres with around 180km of strike of rocks prospective for gold. 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 solid geology interpretation and litho-geochemical interpretation of the 2017 and 2019 drilling, with lithogeochemistry used to identify significant alteration and pathfinder patterns at the Meadows target area. The Company was also involved in ongoing Native Title land access agreement negotiations.

 

A comprehensive review of all data for the Ernest Giles project was carried out later in the year. The Board decided that Greatland should increase its land holdings in the region and applied for two additional exploration licences, E38/3612 Mount Smith and E38/3613 Welstead contiguous to the current live licences of Peterswald and Calanchini.

 

Panorama project (Western Australia), 100% owned

The Panorama project consists of three adjoining exploration licences, covering 157 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 a 362 line km heliborne electromagnetic and magnetic survey over part of the tenements. Processing and interpretation of data is currently underway.

 

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 licences, covering 87 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 a desktop prospectivity review aimed at collating work done which resulted in resampling historic RC chip, soil sampling, and Minalyze analysis of historic diamond drill core.

 

Firetower project (Tasmania), 100% owned

The Firetower project is located in central north Tasmania, Australia and covers an area of 62 square kilometers. During the year the Company completed a review of the Firetower Project exploration data, identifying structures potentially controlling the gold mineralisation, and potential down plunge positions that warrant follow up drilling.

 

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 a review of the Warrentinna Project exploration data and rehabilitation of old drill pads.

 

Further details regarding developments by project can be found on the Company's website at: www.greatlandgold.com 

 

 

Main trends and factors likely to impact future business performance

The Board considers the following to be the key trends and factors that are likely to impact future business performance:

 

·    General commodity cycle - Commodity prices, base and precious metals and gold specifically, have seen a marked improvement over the last year. The Board maintains a positive outlook for commodity prices, and the gold price in particular.

 

·    Project development - the Company's partnership with a major mining company (Newcrest Mining) on its flagship Havieron project has seen a rapid advancement of the project. The pace of the development will be laid out by Newcrest Mining as lead partners with Greatland closely involved in discussions. Specific business principles designed to maximise the Company's chances of long-term rewards from this project are highlighted in the following section ("Principal risks and uncertainties").

 

·    Exploration results - Management's ability to successfully execute Greatland's exploration strategy is a key factor in the future business performance of the Company. Specific business principles designed to maximize the Company's chances of long term success in this regard are highlighted in the following section ("Principal risks and uncertainties").

 

Principal risks and uncertainties

Management of the business and the execution of the Board's strategy are subject to a number of key risks and uncertainties:

 

·    Mineral exploration - Inherent with mineral exploration is that there is no guarantee that the Company can identify a mineral resource that can be extracted economically. In order to minimise this risk and to maximise the Company's chance of long-term success, we are committed to the following strategic business principles:

 

·    The board regularly reviews our exploration and development programmes and allocates capital in a manner that it believes will maximise risk-adjusted return on capital.

 

·    We apply advanced exploration techniques to areas and regions that we believe are relatively under-explored historically.

 

·    Exploration work in conducted on a systematic basis. More specifically, exploration work is carried out in a phased, results-based fashion and leverages a wide range of exploration methods including modern geochemical and geophysical techniques and various drilling methods.

 

·    We focus our activities on jurisdictions that we believe represent low political and operational risk. Moreover, we strongly prefer to operate in jurisdictions where our team has considerable on the ground experience. At the present time, all of the Company's projects are in Australia, a country with established mining codes, stable government, skilled labour force, excellent infrastructure and a well established mining industry.

 

·    Commodity price risk - The principal commodities that are the focus on our exploration and development efforts (precious metals and base metals specifically gold and copper) are subject to highly cyclical patterns in global demand and supply, and consequently, the price of those commodities can be highly volatile.

 

 

·    Recruiting and retaining highly skilled directors and employees - the Company's ability to execute its strategy is highly dependent on the skills and abilities of its people. We undertake ongoing initiatives to foster good staff engagement and ensure that remuneration packages are competitive in the market.

 

·    Occupational health and safety - every Director and employee of the Company is committed to promoting and maintaining a safe workplace environment, including adopting COVID safe work practices. The Company regularly reviews occupational health and safety policies and compliance with those policies. The Company also engages with external occupational health and safety expert consultants to ensure that policies and procedures are appropriate as the Company expands its activity levels.

 

·    COVID-19 - The COVID-19 Coronavirus pandemic has caused a severe adverse effect on the business environment on a global scale. The Group may be affected by disruptions to its operations, particularly for the foreseeable future in light of government responses to the spread of COVID-19 or other potential pandemics. The Board is aware of the various risks that the pandemic presents that include but are not limited to financial, operational, staff and community health and safety, logistical challenges and government regulation. At present the Group believes that there should be no significant material disruption to its operations in the near term, but the Board continues to monitor these risks and the Group's business continuity plans.

 

·    Havieron Joint Venture - The potential future development of a mine at the Havieron Joint Venture depends upon a number of factors, including but not limited to, results from geotechnical, metallurgical and environmental studies, the grant of necessary permits and other regulatory approvals and the ability to secure finance.

 

Directors' statement under section 172 (1) of the Companies Act 2006

Section 172 (1) of the Companies Act obliges the Directors to promote the success of the Company for the benefit of the Company's members as a whole. This section specifies that the Directors must act in good faith when promoting the success of the Company and in doing so have regard (amongst other things) to:

 

1.    the likely consequences of any decision in the long term,

2.    the interests of the Company's employees,

3.    the need to foster the Company's business relationship with suppliers, customers and others,

4.    the impact of the Company's operations on the community and environment,

5.    the desirability of the Company maintaining a reputation for high standards of business conduct, and

6.    the need to act fairly as between members of the Company.

 

The application of the Section 172 (1) requirements can be demonstrated in relation to some of the key decisions made during the financial year, including:

·   entering into new debt funding to ensure the Group has adequate resources to finance Greatland's share of the Havieron joint venture during mine development up until the Feasibility study,

·   executing a series of agreements to provide a formal framework for the joint venture arrangement and to facilitate the acceleration of early works and further future development and exploration activities at Havieron,

 

·   entered into a farm-in and joint venture agreement to accelerate exploration at Greatland's Black Hills and Paterson Range East licences without the need for the Company to self fund this activity,

·   committed to ongoing exploration campaigns and approved associated budgets that enabled the Company to conduct exploration across its projects,

·   worked with joint venture partner to make decisions around the development of Havieron including applying for the necessary regulatory approvals to commence early works activities for a box cut and exploration decline and subsequent to year end the delivery of a pre-feasibility study,

·   appointment of an additional corporate broker to expand the reach of potential investors in as part of equity investment activities, and;

·   expanding the organisational capability through hiring experienced personnel and establishing a technical advisory committee to enhance the skills and experience required for the Company as it progresses from an explorer, through development and into production

The Directors believe they have acted in the way they consider most likely to promote the success of the Company for the benefit of its members as a whole, as required by Section 172 (1) of the Companies Act 2006.

Greatland has chosen to adhere to the Quoted Company Alliance's ("QCA") Corporate Governance Code for Small and Mid-Size Quoted Companies (revised in April 2018 to meet the new requirements of AIM Rule 26). At this time, the Board believes that it is compliant with all ten Principles of the QCA Code.

 

Shaun Day

Chief Executive Officer

 

 

 

Enquiries:

 

Greatland Gold PLC Shaun Day	+44 (0)20 3709 4900 [email protected] www.greatlandgold.com
SPARK Advisory Partners Limited (Nominated Adviser) Andrew Emmott/James Keeshan	+44 (0)20 3368 3550
Berenberg (Joint Corporate Broker and Financial Adviser) Matthew Armitt/ Varun Talwar/Alamgir Ahmed/Detlir Elezi	+44 (0)20 3207 7800
Canaccord Genuity (Joint Corporate Broker and Financial Adviser) James Asensio/Patrick Dolaghan	+44 (0)20 7523 8000
Hannam & Partners (Joint Corporate Broker and Financial Adviser) Andrew Chubb/Matt Hasson/Jay Ashfield	+44 (0)20 7907 8500
SI Capital Limited (Joint Broker) Nick Emerson/Alan Gunn	+44 (0)14 8341 3500
Luther Pendragon (Media and Investor Relations) Harry Chathli/Alexis Gore/Joe Quinlan	+44 (0)20 7618 9100

 

 

 

Notes for Editors:

 

Greatland Gold plc (AIM:GGP) is a leading mining development and exploration company with a focus on precious and base metals. The Company's flagship asset is the world-class Havieron gold-copper deposit in the Paterson region of Western Australia, discovered by Greatland and presently under development in Joint Venture with Newcrest Mining Ltd.

 

Havieron is located approximately 45km east of Newcrest's Telfer gold mine and, subject to positive decision to mine, will leverage the existing infrastructure and processing plant to significantly reduce the project's capital expenditure and carbon impact for a low-cost pathway to development. An extensive growth drilling programme is presently underway at Havieron with a maiden Pre-Feasibility Study released on the South-East crescent on 12 October 2021. Construction of the box cut and decline to develop the Havieron deposit commenced in February 2021.

 

Greatland has a proven track record of discovery and exploration success. It is pursuing the next generation of tier-one mineral deposits by applying advanced exploration techniques in under-explored regions. The Company is focused on safe, low-risk jurisdictions and is strategically positioned in the highly prospective Paterson region. Greatland has a total six projects across Australia with a focus on becoming a multi-commodity mining company of significant scale.

 

Group statement of comprehensive income

for the year ended 30 June 2021

 

	Notes	Year ended  30 June 2021 £		Year ended  30 June 2020 £
Revenue		-		-
Exploration costs		(3,470,443)		(3,460,185)
Administrative expenses		(2,204,441)		(1,697,801)
Impairment cost		-		(38,376)
Operating loss		(5,674,884)		(5,196,362)
Other income		365,645		55,438
Foreign exchange loss		(193,976)		-
Finance income	3	982		17,663
Finance costs	3	(17,415)		(21,734)
Loss before taxation		(5,519,648)		(5,144,995)
Income tax expense	5	-		-
Loss for the year		(5,519,648)		(5,144,995)
Other comprehensive income Items that may be reclassified subsequently to profit and loss: Exchange differences on translation of foreign operations		(48,735)		234,860
Other comprehensive income for the year net of taxation		(48,735)		234,860
Total comprehensive income for the year attributable to equity holders of the parent company		(5,568,383)		(4,910,135)
Earnings per share - basic and diluted	9	(0.14) pence		(0.14) pence

 

All operations are considered to be continuing.

 

The accompanying notes form part of these financial statements.

Group statement of financial position

as at 30 June 2021

 

	Note	30 June 2021		30 June 2020		1 July 2019
		£		(Restated) £*		(Restated) £*
ASSETS
Non-current assets Tangible assets Mine development	10 11	120,356 17,091,622		132,061 -		103,114 -
Right of use asset	13	341,912		414,616		-
		17,553,890		546,677		103,114
Current assets Cash and cash equivalents Trade and other receivables	21 15	6,212,057 78,198		6,022,745 23,865		2,755,998  26,376
Prepayments		154,215		55,211		51,104
Total current assets		6,444,470		6,101,821		2,833,478
TOTAL ASSETS		23,998,360		6,648,498		2,936,592
LIABILITIES
Current liabilities Payables and other liabilities	18	(3,513,512)		(932,759)		(630,369)
Total current liabilities		(3,513,512)		(932,759)		(630,369)
Non-current liabilities
Borrowings	17	(12,189,790)		-		-
Provisions	16	(3,813,372)		-		-
Payables and other liabilities	18	(326,793)		(390,718)		-
Total non-current liabilities		(16,329,955)		(390,718)		-
TOTAL LIABILITIES		(19,843,467)		(1,323,477)		(630,369)
NET ASSETS		4,154,893		5,325,021		2,306,223
EQUITY Share capital Share premium Share based payment reserve	19   20	3,947,270 24,064,307 177,592		3,760,207 19,878,782 372,953		3,323,420 12,554,173 349,606
Retained earnings		(24,388,861)		(19,090,241)		(14,089,436)
Other reserves		354,585		403,320		168,460
TOTAL EQUITY		4,154,893		5,325,021		2,306,223

 

Group statement of changes in equity for the year ended 30 June 2021
	Share capital	Share premium	Share based payment reserve	Retained earnings	Other reserves	Total
	£	£	£	£	£	£
As at 30 June 2019	3,323,420	12,554,173	349,606	(12,072,653)	168,460	4,323,006
Change in accounting policy				(2,016,783)		(2,016,783)
Restated as at 30 June 2019	3,323,420	12,554,173	349,606	(14,089,436)	168,460	2,306,223
Loss for the year	-	-	-	(5,144,995)	-	(5,144,995)
Adjustment from the adoption of IFRS 16	-	-	-	13,045	-	13,045
Currency translation differences	-	-	-	-	234,860	234,860
Total comprehensive income	-	-	-	(5,131,950)	234,860	(4,897,090)
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 (restated)*	3,760,207	19,878,782	372,953	(19,090,241)	403,320	5,325,021
Loss for the year	-	-	-	(5,519,648)	-	(5,519,648)
Currency translation differences	-	-	-	-	(48,735)	(48,735)
Total comprehensive income	-	-	-	(5,519,648)	(48,735)	(5,568,383)
Share option charge	-	-	25,667	-	-	25,667
Transfer on exercise of options and warrants	-	-	(221,028)	221,028	-	-
Share capital issued	187,063	4,185,525	-	-	-	4,372,588
Cost of share issue	-	-	-	-	-	-
Total contributions by and distributions to owners of the Company	187,063	4,185,525	(195,361)	221,028	-	4,398,255
As at 30 June 2021	3,947,270	24,064,307	177,592	(24,388,861)	354,585	4,154,893

The accompanying notes for part of these financial statements.

*See note 1.19 for details of the restatement as a result of change in accounting policy.

Note: In the previous 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.

 

 

Other reserves		Merger reserve		Foreign currency translation reserve		Total other reserves
	£		£		£
As at 30 June 2019	225,000		(56,540)		168,460
Currency translation differences	-		234,860		234,860
Total comprehensive income	-		234,860		234,860
As at 30 June 2020	225,000		178,320		403,320
Currency translation differences	-		(48,735)		(48,735)
Total comprehensive income	-		(48,735)		(48,735)
As at 30 June 2021	225,000		129,585		354,585

 

The following describes the nature and purpose of each reserve within equity:

Share capital:                                          Nominal value of shares issued

Share premium:                                    Amount subscribed for share capital in excess of nominal value, less share issue costs

Share based payment reserve:       Cumulative fair value of options granted

Retained losses:                                    Cumulative net gains and losses, recognised in the statement of comprehensive income

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 reserve:                 Gains/losses arising on translation of foreign controlled entities into pounds sterling.

Group statement of cash flows

for the year ended 30 June 2021

 

	Notes	Year ended 30 June 2021     £		Year ended 30 June 2020     £
Cash flows from operating activities Loss before taxation Increase in trade & other receivables Increase in payables & other liabilities Depreciation Amortisation Impairment Share option charge		(5,519,648) (54,333) 2,417,822 175,884 64,946 - 25,668		(5,183,317) (1,596) 293,450 67,396 65,230 38,376 154,492
Foreign exchange loss		193,976		-
Net decrease in cash and cash equivalents from operating activities		(2,695,685)		(4,565,969)
Cash flows from investing activities Interest received Interest payable Payments to acquire intangible assets		982 (17,415) -		2,163 (21,734)  9,640
Payments to acquire tangible assets		(13,554,108)		(95,624)
Net cash outflows used in investing activities		(13,570,541)		(105,555)
Cash flows from financing activities Proceeds from issue of shares Transaction costs of issue of shares		4,372,588 -		7,980,274 (218,878)
Proceeds on borrowings		12,189,790		-
Other income		-		55,438
Repayment of lease liabilities		(63,925)		(67,877)
Net cash inflows from financing activities		16,498,453		7,748,957
Net increase in cash and cash equivalents	21	232,227		3,077,433
Cash and cash equivalents at the beginning of period		6,022,745		2,755,998
Exchange (loss) / gain on cash and cash equivalents		(42,915)		189,314
Cash and cash equivalents at end of period	21	6,212,057		6,022,745

 

The accompanying notes form part of these financial statements.

Notes to financial statements

for the year ended 30 June 2021

 

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 2021 were authorised for issue by the board on 11 November 2021 and the statement of financial position signed on the board's behalf by Mr Shaun Day 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 principal accounting policies adopted by the Group and Company are set out below. New standards, amendments and interpretations adopted by the Group There are no 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. New and amended Standards and Interpretations issued but not effective   At the date of approval 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 (and in some cases had not been adopted by the UK):   -     Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current - effective 1 January 2023* -     Amendments to IFRS 3: Business Combinations - Reference to the Conceptual Framework - effective 1 January 2022* -     Amendments to IAS 16: Property, Plant & Equipment - effective 1 January 2022* -     Amendments to IAS 37: Provisions, Contingent Liabilities and Contingent Assets - effective 1 January 2022* -     Annual Improvements to IFRS Standards 2018-2020 Cycle - effective 1 January 2022* -     Amendments to IAS 1: Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies - effective 1 January 2023* -     Amendments to IAS 8: Accounting policies, Changes in Accounting Estimates and Errors - Definition of Accounting Estimates - effective 1 January 2023* -     Amendments to IFRS 16: Leases - Covid-19-Related Rent Concessions beyond 30 June 2021 - effective 1 April 2021 -     Amendments to IAS 12: Income Taxes - Deferred Tax related to Assets and Liabilities arising from a Single Transaction - effective 1 January 2023* *subject to UK endorsement   The new and amended Standards and Interpretations which are in issue but not yet mandatorily effective is not expected to be material.

 

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:   Rehabilitation provision (Note 16) The Group assesses its rehabilitation, restoration and dismantling (rehabilitation) provision at each reporting date. Significant estimates and assumptions are made in determining the provision as there are numerous factors that will affect the ultimate amount payable. These factors include estimates of the extent, timing and costs of rehabilitation activities, technological changes, regulatory changes, cost increases as compared to the inflation rates, and changes in discount rates. These uncertainties may result in future actual expenditure differing from the amounts currently provided. The provision at reporting date represents management's best estimate of the present value of the future rehabilitation costs. The rehabilitation estimate is based on the Pre-Feasibility study. The discount rate used in the calculation of the provision is 4.5%. At this stage the rehabilitation costs are expected to be incurred up to 2033.   Impairment of mine development (Note 11) The recoverable amount of mine development is dependent on the successful development and commercial exploration, or alternatively, sale of the respective area of interest. The Group's estimate of the Ore Reserve that can be economically and legally extracted. The Group estimates its Ore Reserve and Mineral Resource based on information compiled by appropriately qualified persons relating to the geological data on the size, depth and shape of the ore body, and requires complex geological judgments to interpret the data. The estimation of Ore Reserves is based on factors such as estimates of foreign exchange rates, commodity prices, future capital requirements, and production costs along with geological assumptions and judgments made in estimating the size and grade of the ore body and removal of waste material. Management have determined the mine development asset to be recoverable based on the Pre-Feasibility Study released on the company's website on 21 October 2021. Changes in these estimates may impact upon the carrying value of mine properties, property, plant and equipment, and provision for rehabilitation.   Impairment of loan due from subsidiary (Note 15) The Company holds a loan due from a 100% owned subsidiary, Greatland Pty Ltd. Greatland Pty Ltd holds the Group's interest in the Havieron Joint Venture. The recoverable amount of the loan is dependent on the successful development and commercial exploration of the Havieron Joint Venture, or alternatively, sale of the respective area of interest. Management have concluded the loan will be recoverable on this basis.   Share-based payment transactions (Note 20) 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 Group's financial statements have been prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and in accordance with the requirements of the Companies Act 2006. 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 £1. During the year, the group made the decision to voluntarily change its accounting policy in respect of Exploration assets. Refer to Note 1.19 for more details on the change. Going Concern The consolidated entity has incurred a loss before tax of £5,519,648 for the year ended 30 June 2021 and had a net cash outflow of £16,266,226 from operating and investing activities. At that date there were net current assets of £2,930,958. The loss resulted almost entirely from exploration costs and associated administrative related costs.
	The Group's cash flow forecast for the period ending 30 November 2022 highlights adequate funding of projected expenditure to last into 2022 with the Group having access to a loan facility for its share of Havieron Joint Venture expenditure up to US$50 million and is being able to significantly reduce expenditure on its own exploration programs if it wishes to do so.  The Group also has the ability to raise capital for expansion purposes, if required and the Group has demonstrated a consistent ability to do so in the past, as well as potential to debt fund its share of Havieron development. Albeit the Board considers that, in a worst case scenario, the Group can continue without a capital raising. Given the Group's current positive cash position, 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. 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 statement of financial position, 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. Unrealised 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 statement of financial position 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 statement of cash flows, 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 Exploration and evaluation and development assets Exploration and evaluation and development assets includes pre-licence costs, costs associated with exploring, investigating, examining and evaluating an area of mineralisation, and assessing the technical feasibility and commercial viability of extracting the mineral resource from that area. Other than acquisition costs, exploration and evaluation expenditure incurred on licenses where the commercial viability of extracting the mineral resource has not yet been established is generally expensed when incurred. Once the commercial viability of extracting the mineral resource are demonstrable (at which point, the Group considers it probable that economic benefits will be realised), the Group capitalises any further evaluation costs incurred. These costs are classified as property plant and equipment. The recoverability of the exploration and evaluation assets is dependent on the successful development and commercial exploration, or alternatively, sale of the respective area of interest.   Exploration and evaluation and development assets are assessed for impairment if: • insufficient data exists to determine commercial viability; or • other facts and circumstances suggest that the carrying amount exceeds the recoverable amount.   An exploration and evaluation asset will be reclassified to mine properties when the technical feasibility and commercial viability of extracting a mineral resource are demonstrable and a decision has been made to develop and extract the resource. Exploration and evaluation assets shall be assessed for impairment, and any impairment loss shall be recognised, before reclassification to mine properties. No amortisation is charged during the exploration and evaluation phase.   Rehabilitation provision The present value of the expected cost for the decommissioning, restoration and dismantling of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. Refer to Provisions for further information about the recognised decommissioning provision.   Plant and equipment Plant and equipment including mine development are stated at historical cost, less accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items and costs incurred in bringing the asset into use.   Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is de-recognised. All other repairs and maintenance costs are recognised in the income statement as incurred.   An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognised   Depreciation The depreciation methods adopted by the Group are shown in table below: ·    Mine properties: units of ore extracted basis over the life of mine ·    Motor vehicles: straight line basis of 20% per annum ·    Equipment: straight line basis of 7% per annum ·    Leasehold improvements: straight line basis of 11% per annum
1.9	Capitalised borrowing costs
	Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in income in the period in which they are incurred.
1.10	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 on an index rate, initially measured using the index rate of rate at the commencement date; ·    The amount expected to be payable by the lessees 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.
1.11	Foreign currencies Both the functional and presentational currency of Greatland Gold plc is sterling (£). 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 Ltd, 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.
1.12	Other income During the year the Parent Company received a 'Small Business Grant' of £10,000 from Westminster City Council, London. In the previous year Greatland Pty Ltd received two 'Cash Boost' grants totalling A$100,000 (£55,438) 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. During the year the Group received other income of A$611,050 (£336,356) in respect of chargeable costs for its Juri loan (2020: £nil). Previous years consisted of a grant from the state government of Western Australia.  Government grants are accounted for on a receipts basis.
1.13	Finance income 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.
1.14	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.
1.15	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
1.16	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.
1.17	Provisions Employee benefits Provision for employee entitlements include leave entitlements. These are recognised when the Company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Liabilities for wages and salaries, annual leave and any other employee benefits are measured at the amounts expected to be paid when the liabilities are settled. Amounts expected to settle within twelve months are recognised in 'Current Provisions' (for annual leave and salary at risk) and 'Trade and Other Payables' (for all other employee benefits) in respect of employees' services up to the reporting date. Costs incurred in relation to non-accumulating sick leave are recognised when leave is taken and are measured at the rates paid or payable. The liability for long service leave and other long-term benefits is measured at the present value of the estimated future cash outflows resulting from employees' services provided up to the reporting date. Rehabilitation, restoration and dismantling The Group recognises a provision for the estimate of the future costs of restoration activities on a discounted basis at the time of exploration or mining disturbance. The nature of these restoration activities includes dismantling and removing structures, rehabilitating mines, dismantling operating facilities, closure of plant and waste sites, and restoration, reclamation and re-vegetation of affected areas. When the liability is initially recognised, the present value of the estimated costs is capitalised by increasing the carrying amount of the related assets to the extent that it was incurred by the development/construction of the asset. Over time, the discounted liability is increased for the change in the present value based on a discount rate that reflects current market assessments. Additional disturbances or changes in rehabilitation costs will be recognised as additions or changes to the corresponding asset and rehabilitation liability when incurred. The unwinding of the effect of discounting the provision is recorded as a finance cost in the statement of comprehensive income. The carrying amount capitalised as a part of mining assets is depreciated/amortised over the life of the related asset. Rehabilitation and restoration obligations arising from the Group's exploration activities are recognised immediately in the income statement. If a change to the estimated provision results in an increase in the rehabilitation liability and therefore an addition to the carrying value of the related asset, the Group considers whether this is an indication of impairment of the asset. If the revised assets, net of rehabilitation provisions, exceed the recoverable amount, that portion of the increase to the provision is charged directly to the statement of comprehensive income.
1.18		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.
1.19		Change in accounting policy adjustment - Exploration and development expenditure During the year, a retrospective adjustment has been made to the carrying values to reflect a change in accounting policy of exploration and evaluation expenditure. The change in accounting policy was made to align to industry and peer companies. Previously costs associated with an exploration activity were 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 was determined by management to be following the economic feasibility stage. The new policy is as follows: Exploration, evaluation and development assets includes pre-licence costs, costs associated with exploring, investigating, examining and evaluating an area of mineralisation, and assessing the technical feasibility and commercial viability of extracting the mineral resource from that area. Other than acquisition costs, exploration and evaluation expenditure incurred on licenses where the commercial viability of extracting the mineral resource has not yet been established is generally expensed when incurred. Once the commercial viability of extracting the mineral resource are demonstrable (at which point, the Group considers it probable that economic benefits will be realised), the Group capitalises any further evaluation costs incurred. This probability is assessed through a Pre-Feasbility study or similar. The recoverability of the exploration and evaluation assets is dependent on the successful development and commercial exploration, or alternatively, sale of the respective area of interest.   Exploration, evaluation and development assets are assessed for impairment if: • insufficient data exists to determine commercial viability; or • other facts and circumstances suggest that the carrying amount exceeds the recoverable amount.   An exploration and evaluation asset will be reclassified to mine properties when the technical feasibility and commercial viability of extracting a mineral resource are demonstrable and a decision has been made to develop and extract the resource. Exploration and evaluation assets shall be assessed for impairment, and any impairment loss shall be recognised before reclassification to mine properties. No amortisation is charged during the exploration and evaluation phase. 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. The change in accounting policy affected the following items in the balance sheet at 1 July 2020: ·    Intangible assets - decrease by £1,989,363 (1 July 2019: £2,016,783) ·    Retained earnings - decrease by £1,989,363 (1 July 2019: £2,016,783) There was no impact to the statement of comprehensive income as a result of the change in accounting policy, given there were no additions to Intangible Assets in 2020.  As a result, there was no change to the earnings per share calculation.
1.20	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.
1.21	Interest in joint operations A joint operation is a joint arrangement whereby the parties of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. When the Group undertakes its activities under joint operations, the Group as a joint operator recognises in relation to its interest in a joint operation: ·     Its assets, including its share of any assets held jointly ·     Its liabilities, including its share of any liabilities incurred jointly ·     Its revenue from the sale of its share of the output arising from the joint operation ·     Its share of the revenue from the sale of the output by the joint operation ·     Its expenses, including its share of any expenses incurred jointly. The Havieron Project is operated under a Joint Venture Agreement between Greatland Gold and Newcrest Mining Limited (Newcrest) entered into on 30 November 2020. The agreement provides a formal framework for the arrangements between the two parties beyond the existing Farm-in Agreement, and facilitate the expansion of exploration activities at Havieron and the acceleration of early works, including the construction of a box-cut and decline. As at 30 June 2021, Newcrest has now met the Stage 3 expenditure requirement (US$45 million) resulting in an overall joint venture interest of 60% (Greatland Gold 40%). Newcrest can earn up to a 70% joint venture interest through total expenditure of US$65 million and the completion of a series of exploration and development milestones (including the delivery of a Pre-Feasibility Study) in a four-stage farm-in over a six year period that commenced in May 2019. The Joint Venture arrangement governs the joint venture ownership and operations of the Havieron project in the area covered by Mining Lease 45/1287 which includes the Havieron gold-copper deposit. The Joint Venture Agreement includes tolling principles reflecting the intention of the parties that, subject to a successful exploration program, Feasibility Study and a positive decision to mine, the resulting joint venture mineralised material will be processed at Newcrest's Telfer Gold Mine ("Telfer"), which sits approximately 45km to the west of Havieron.

 

2	Segmental reporting
	The Group's prime business segment is mining development and exploration of precious and base metals.  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 2021	£	£	£
	Revenue Total segment revenue	-	-		-
	Total consolidated revenue	-	-		-
	Result Segment results	(1,113,949)	(4,754,911)		(5,868,860)
	Loss before tax and finance income/costs Interest receivable Interest payable Other income	(1,113,949) 20 (6,100) 10,000	(4,754,911) 962 (11,315) 355,645		(5,868,860) 982 (17,415) 365,645
	Loss before taxation Taxation expense	(1,110,029) -	(4,409,619) -		(5,519,648) -
	Loss after taxation	(1,110,029)	(4,409,619)		(5,519,648)

 

 

 

	As at 30 June 2021	UK £	Australia £	Total £
	Assets and liabilities
	Segment assets	5,359,105	18,639,255	23,998,360
	Total assets	5,359,105	18,639,255	23,998,360
	Segment liabilities	(426,530)	(19,416,936)	(19,843,466)
	Total liabilities	(426,530)	(19,416,936)	(19,843,466)
	Other segment information: Capital expenditure	-	17,270,525	17,270,525
	Depreciation	-	175,884	175,884
	Amortisation	25,133	39,813	64,946
	Impairment	-	-	-

 

 

2	Segmental reporting, continued	UK	Australia	Total
	Year ended 30 June 2020	£	£	£
	Revenue Total segment revenue	-	-	-
	Total consolidated revenue	-	-	-
	Result Segment results	(1,061,048)	(4,135,314)	(5,196,362)
	Loss before tax and finance costs Interest receivable	(1,061,048) 275	(4,135,314) 1,888	(5,196,362) 2,163
	Interest payable Other income	6,229 -	(12,463) 55,438	(6,234) 55,438
	Loss before taxation Taxation expense	(1,054,544) -	(4,090,451) -	(5,144,995) -
	Loss after taxation	(1,054,544)	(4,090,451)	(5,144,995)

 

 

	As at 30 June 2020	UK £	Australia £	Total £
	Assets and liabilities (restated)
	Segment assets	4,374,330	2,274,168	6,648,498
	Total assets	4,374,330	2,274,168	6,648,498
	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

 

 

3	Net finance costs	2021 £		2020 £
	Finance income Finance costs	982 (17,415)		17,663 (21,734)
		(16,433)		(4,071)
4	Expenses by Nature		2021 £		2020 £
	Loss on ordinary activities before taxation is stated after charging: Auditors' remuneration - audit Depreciation Amortisation Impairment charge Directors' emoluments		40,600 175,884 64,946 - 1,368,925		17,000 67,396 65,230 38,376 1,089,226
	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:
			2021 £		2020 £
	Fees payable to the Company's auditor and its associates for the audit of the Company and Group Financial Statements		40,600		17,000
	Auditors' remuneration for audit services above excludes AU$11,750 (2020: AU$9,950) charged by Charles Foti Business Services (Australia) relating to the audit of the subsidiary company.

 

5	Taxation
		2021	2020
	Analysis of charge in year	£	£
	Deferred tax Current tax	- -	- -
	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% (2020: 19%) and Australia of 26%. The differences are explained below:
		2021	2020
		£	£
	Loss on ordinary activities before tax	(5,519,648)	(5,144,995)
	Loss multiplied by weighted average applicable rate of tax	(1,241,921)	(1,196,211)
	Effects of:
	Expenses not deductible for tax: Share option charge	5,775	35,920
	Tax losses on which no deferred tax asset is recognised	1,236,146	1,160,291
	Income tax expense	-	-
	The weighted average applicable tax rate of 22.50% (2020: 23.25%) used is a combination of the standard rate of corporation tax rate for entities in the United Kingdom of 19% (2020: 19%), and 26.0% (2020: 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 2020 Currency exchange movements Prior year adjustment	17,073,458 (221,029) 1,989,363	12,072,653 - -
Current year losses	5,519,648	5,000,805
Losses carried forward 30 June 2021	24,361,440	17,073,458

 

 

6	Employee information Employee costs comprised:	2021 £	2020 £
	Wages and salaries	1,696,082	949,721
	Bonus	338,068	611,854
	Pension/superannuation Share option charge	169,723 25,668	147,345 154,492
		2,229,541	1,863,412
		Number	Number
	Exploration Administration	15 2	6 2

 

Of the total employee costs in the year, £772,804 (2020: £669,759) arises from work on the Exploration Properties and has been expensed to the statement of comprehensive income as exploration costs. Refer to Note 8 for details of the Directors' emoluments.

7		Dividends No dividends were paid or proposed by the Directors. (2020: £Nil)

 

8	Directors' emoluments				2021 £	2020 £
	Directors' remuneration Share option charge				1,348,676 20,249	997,511 91,715
					1,368,925	1,089,226
		Directors' salary	Pension	Bonus	Share Based Payments	Total
	2021	£	£	£	£	£
	Executive directors Callum Baxter Gervaise Heddle (resigned 12 March 2021) Shaun Day (appointed 15 December 2020) Non-executive directors Alex Borrelli Clive Latcham	320,721 348,790     191,760     52,500 40,000	40,020 29,194     28,031     1,315 -	100,540 -     103,305     52,500 40,000	3,901 3,901     11,797     - 650	465,182 381,885     334,893     106,315 80,650
		953,771	98,560	296,345	20,249	1,368,925

 

Of the total Directors' emoluments disclosed above in the statement of comprehensive income, 75% (or £348,887) for Callum Baxter and 25% (or £259,968) for Gervaise Heddle and Shaun Day has been allocated to exploration costs in the statement of comprehensive income 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 20.Also, see Note 25 for related party transactions.

 

	Directors' salary	Pension	Bonus	Share Based Payments	Total
2020	£	£	£	£	£
Executive directors Callum Baxter Gervaise Heddle Non-executive directors Alex Borrelli Clive Latcham	185,024 185,024   43,750 33,750	44,278 44,278   1,165 -	205,121 205,121   25,000 25,000	30,015 30,015   3,159 28,526	464,438 464,438   73,074 87,276
	447,548	89,721	460,242	91,715	1,089,226

 

Of the total Directors' emoluments disclosed above in the statement of comprehensive income, 75% (or £348,329) for Callum Baxter and 25% (or £116,110) for Gervaise Heddle has been allocated to exploration costs in the statement of comprehensive income for the year. Directors' remuneration and bonus relates to short term employee benefits. Pension / superannuation payments relate to long term employee benefits.

8	Directors' emoluments, continued

The aggregate gains made on the exercise of options during the year was £4,827,500 (2020: £5,357,450)

Share based payments reflect the Black Scholes value of share options granted during the year. See Note 20.

Also, see Note 25 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.
							2021 £		2020 £
				Loss for the period			(5,519,648)		(5,144,995)
				Weighted average number of Ordinary shares of £0.001 in issue Loss per share - basic			3,872,578,735   (0.14) pence		3,593,407,809   (0.14) 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 103,250,000 outstanding options at 30 June 2021 (2020: 204,500,000) were included to calculate the diluted loss per share.
				Weighted average number of Ordinary shares of £0.001 in issue inclusive of outstanding options Loss per share - diluted			3,975,828,735   (0.14) pence		3,797,907,809   (0.14) pence
10	Tangible fixed assets - Group
					Motor vehicle	Equipment		Leasehold Improvements		Total
	Cost				£	£		£		£
	At 30 June 2020				117,546	120,451		6,320		244,317
	Disposals Additions				(32,837) 49,050	- 129,853		- -		(32,837) 178,903
	Foreign exchange rate fluctuations				(2,858)	(2,929)		(153)		(5,940)
	At 30 June 2021				130,901	247,375		6,167		384,443
	Depreciation
	At 30 June 2020 Disposals				44,955   (19,160)	67,294   -		7   -		112,256   (19,160)
	Charge				28,660	147,068		156		175,884
	Foreign exchange rate fluctuations				(1,446)	(3,445)		(2)		(4,893)
	At 30 June 2021				53,009	210,917		161		264,087
	Net book value
	At 30 June 2021				77,892	36,458		6,006		120,356
	At 30 June 2020				72,591	53,157		6,313		132,061

 

			Motor vehicle	Equipment	Leasehold Improvements	Total
		Cost	£	£	£	£
		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
		At 30 June 2019 Disposals	5,126   -	38,933   -	-   -	44,059   -
		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

 

	11			Mine development				2021				2020
								£				£
				At 30 June 2020					-			-
				Transferred from exploration properties					17,091,622				-
				At 30 June 2021					17,091,622				-
	Mine development reflects the Havieron asset operated by Newcrest under a Joint Venture Agreement with Greatland Pty Ltd.  Newcrest has met the Stage 4 expenditure requirement to incur expenditure of US$65m and deliver a Pre-Feasibility Study to earn an additional 10% joint venture interest, resulting in the Group holding a 30% interest in the joint venture.  Refer to note 1.2 in regards to significant estimates in relation to mine development.
12			Intangible non-current assets - Group				2021 £						2020 £
				Exploration properties
				At 30 June 2020					-				2,647,577
	Impairment					-				(38,376)
	Foreign exchange rate fluctuations					-				10,956
				Change in accounting policy adjustment					-				(2,620,157)
				Havieron:  capitalised borrowing costs					264,436				-
				Havieron: rehabilitation provision					3,813,372				-
				Havieron: evaluation and exploration costs					13,013,814				-
				Transferred to asset under construction					(17,091,622)				-
				At 30 June 2021					-				-
				Impairment
				At 30 June 2020									(630,794)
				Change in accounting policy adjustment					-				630,794
				Foreign exchange rate fluctuations					-				-
				At 30 June 2021					-				-
				Net book amount
				At 30 June 2021					-				-
				At 30 June 2020					-				-

 

 

13	Right of use asset
			Group		Company
			2021	2020	2021	2020
			£	£	£	£

 

Properties
At 30 June 2020		414,616	479,846	75,399	100,532
Amortisation charge current year		(64,946)	(65,230)	(25,133)	(25,133)
Exchange rate movements		(7,758)	-	-	-
At 30 June 2021		341,912	414,616	50,266	75,399

 

Greatland Pty Ltd's lease of 5 years for office premises expires on 30 November 2023. The subsidiary Company has the option to extend the lease for a further 5 year term, expiring on 30 November 2028.

Greatland Gold plc's initial lease of 24 months for office premises expired on 30 November 2020. The parent Company has extended the lease for a further 24 month terms, expiring on 30 November 2022.

 

14	Investments in subsidiary - Company		£
	Cost
	At 30 June 2020		50,000
	Impairment of investment		-
	At 30 June 2021		50,000
	Net book amount
	At 30 June 2021		50,000
	At 30 June 2020		50,000

 

The parent company of the Group holds more than 20% of the share capital of the following company:

 

	Company	Country of registration	Class	Proportion held	Nature of business
	Greatland Pty Ltd	Australia	Common	100%	Mining development and exploration of precious and base metals

The registered address of Greatland Pty Ltd is Unit B9, 431 Roberts Road, Subiaco, WA, 6008

 

 

15	Trade and other receivables	Group		Company
		2021 £	2020 £	2021 £	2020 £
	Current trade and other receivables: Other debtors Loans due from subsidiary	78,198 -	23,865 -	- 13,846,748	- 11,346,748
	Total current trade and other receivables	78,198	23,865	13,846,748	11,346,748
	The loan due from subsidiary was interest free throughout the period and has no fixed repayment date. No provision £nil (2020: £nil) has been made against this loan. Details in regards to significant accounting judgments, estimates and assumptions associated with the recoverability of the loan due from subsidiary are described in note 1.2.
16 Provisions Group Company 2021 £ 2020 £ 2021 £ 2020 £ Non-current provisions     Rehabilitation provision 3,813,372 - - - Total non-current provisions 3,813,372 - - -
	Movement in rehabilitation provision	Group		Company
		2021	2020	2021	2020
		£	£	£	£
	Opening balance	-	-	-	-
	Arising during the year	3,813,372	-	-	-
	Closing balance	3,813,372	-	-	-

Details in regards to significant accounting judgments, estimates and assumptions associated with the rehabilitation provision are described in note 1.2.

 

 

17	Borrowings	Group		Company
		2021	2020	2021	2020
		£	£	£	£
	Amount owed to third parties	12,189,790	-	-	-
	Total borrowings	12,189,790	-	-	-
	Opening balance	-	-	-	-
	Drawings during the year	11,925,354	-	-	-
	Accrued interest during the year	264,436	-	-	-
	Total outstanding	12,189,790	-	-	-

 

The amount owing to third parties relates to amounts owing to Newcrest Operations Limited under a loan agreement dated 29 November 2020 in respect of the Havieron Joint Venture ("Havieron") In relation to the Havieron Joint Venture, the loan has 2 parts being Facility A and Facility B with values of US$20 million and US$30 million respectively.  Facility B will come into effect on the date on which the Stage 4 commitment is satisfied by the lender.  Interest is calculated on the LIBOR rate plus a margin of 8% pa. Interest is calculated every 90 days. The loan balance as at 30 June 2021 in relation to Havieron is £12,189,790 (AU$22,420,891).

 

 

18	Payables and other liabilities	Group		Company
		2021 £	2020 £	2021 £	2020 £
	Current payables and other liabilities: Trade creditors Accruals Salaries and social security Other creditors Employee benefits Lease liability	3,136,688 41,175 113,265 64,830 102,607 54,947	668,514 64,481 29,700 - 114,015 56,049	169,293 41,175 113,265 64,830 461 24,107	73,344 64,481 29,700 - 511 24,440
	Total current payables and other liabilities	3,513,512	932,759	413,131	192,476
	Non-current payables and other liabilities:
	Employee benefits	33,341	34,592	-	-
	Lease liability	293,452	356,126	13,399	37,506
	Total non-current trade and other payables:	326,793	390,718	13,399	37,506
	Total payables and other liabilities	3,840,305	1,323,477	426,530	229,982

Current employee benefits relate to annual leave and non-current benefits relates to long service leave.

	Group	Group	Company	Company
	2021	2020	2021	2020
	£	£	£	£
Lease payments payable:
Current (< 1 year)	54,947	56,049	24,107	24,440
2-5 years	219,278	234,429	13,399	37,506
> 5 years	74,174	121,697	-	-
	348,399	412,175	37,506	61,946

 

19

Share capital Called up, allotted, issued and fully paid Number Share issue cost £ As at 30 June 2020, Ordinary shares of £0.001 each 3,760,206,631 (218,878) 3,760,207 Issued during the year On 02 July 2020, at a price of £0.014, for cash 14,000,000 - 14,000 On 24 July 2020, at a price of £0.02, for cash 5,000,000 - 5,000 On 29 July 2020, at a price of £0.025, for cash   1,250,000 - 1,250 On 04 August 2020, at a price of £0.025, for cash   1,591,893 - 1,592 On 01 September 2020, at a price of £0.025, for cash   11,891,892 - 11,892 On 25 September 2020, at a price of £0.02, for cash 6,000,000 - 6,000 On 25 September 2020, at a price of £0.007, for cash   2,500,000 - 2,500 On 28 September 2020, at a price of £0.025, for cash 13,000,000 - 13,000 On 28 September 2020, at a price of £0.03, for cash 5,000,000 - 5,000 On 29 September 2020, at a price of £0.025, for cash 3,000,000 - 3,000 On 29 September 2020, at a price of £0.03, for cash 3,000,000 - 3,000 On 01 October 2020, at a price of £0.025, for cash 32,816,214 - 32,816 On 02 November 2020, at a price of £0.025, for cash 13,763,512 - 13,764 On 31 December 2020, at a price of £0.025, for cash 5,645,404 - 5,645 On 28 January 2021, at a price of £0.025, for cash 5,000,000 - 5,000 On 28 January 2021, at a price of £0.03, for cash 5,000,000 - 5,000 On 28 January 2021, at a price of £0.007, for cash 2,500,000 - 2,500 On 01 February 2021, at a price of £0.025, for cash 6,996,487 - 6,996 On 01 March 2021, at a price of £0.025, for cash 2,351,351 - 2,351 On 01 April 2021, at a price of £0.025, for cash 5,216,218 - 5,216 On 06 April 2021, at a price of £0.025, for cash 9,000,000 - 9,000 On 06 April 2021, at a price of £0.03, for cash 9,000,000 - 9,000 On 06 May 2021, at a price of £0.02, for cash 9,000,000 - 9,000 On 03 June 2021, at a price of £0.02, for cash 14,000,000 - 14,000 On 30 June 2021, at a price of £0.025, for cash 540,541 - 541 As at 30 June 2021, Ordinary shares of £0.001p each 3,947,270,143 (218,878) 3,947,270   Total share options in issue As at 30 June 2021 there were 103,250,000 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, 7.5 million exercisable at 0.7 pence per share in issue, 5.5 million exercisable at 1.4 pence per share in issue,  5.5 million exercisable at 2 pence per share in issue, 25.75 million exercisable at 2.5 pence per share in issue, 15 million exercisable at 3.0 pence per share in issue and 5 million exercisable at 25 pence per share in issue. (2020: 204.5 million).

 

Total warrants in issue

As at 30 June 2021 there were 17,027,028 million unexercised investor warrants over Ordinary shares at 2.5 pence outstanding. Since the year end all remaining warrants over Ordinary shares at 2.5 pence were exercised.  No expense was recorded in the year in respect of these warrants.

20 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, 5 million options were granted for no cash consideration for a period of five years expiring on 04 May 2026. The share options outstanding at 30 June 2021 had a weighted average remaining contractual life of 1.6 years (2020: 2.4 years). Maximum term of new options granted was 5 years from the grant date. The weighted average exercise price of share options as at the date of exercise is £0.0177 (2020: £0.0073). The share options outstanding at 30 June 2021 had a range of exercise prices between £0.0020 and £0.2500.     Granted during the period Unexercised at 30 June 2020   Share options exercised Unexercised at 30 June 2021 Exercise price (pence) Date from which exercisable Expiry date   C Baxter - 14,000,000 (14,000,000) - 1.4p 07 Sep 2019 06 Sep 2022 C Baxter - 14,000,000 (14,000,000) - 2.0p 07 Sep 2019 06 Sep 2022 C Baxter - 9,000,000 - 9,000,000 2.5p 26 Sep 2020 25 Sep 2023 C Baxter - 9,000,000 - 9,000,000 3.0p 26 Sep 2020 25 Sep 2023 A Borrelli - 25,000,000 - 25,000,000 0.2p 20 Apr 2016 20 Apr 2021 A Borrelli - 14,000,000 - 14,000,000 0.28p 18 Jan 2017 18 Jul 2022 A Borrelli - 7,500,000 - 7,500,000 0.7p 18 Aug 2017 16 Feb 2021 A Borrelli - 2,500,000 - 2,500,000 1.4p 07 Sep 2019 06 Sep 2022 A Borrelli - 2,500,000 - 2,500,000 2.0p 07 Sep 2019 06 Sep 2022 G Heddle - 14,000,000 (14,000,000) - 2.0p 07 Sep 2019 06 Sep 2022 G Heddle - 9,000,000 (9,000,000) - 2.5p 26 Sep 2020 25 Sep 2023 G Heddle - 9,000,000 (9,000,000) - 3.0p 26 Sep 2020 25 Sep 2023 G Cryan - 5,000,000 (5,000,000) - 0.7p 18 Aug 2017 16 Feb 2021 G Cryan - 3,000,000 - 3,000,000 1.4p 07 Sep 2019 06 Sep 2022 G Cryan - 3,000,000 - 3,000,000 2.0p 07 Sep 2019 06 Sep 2022 G Cryan - 1,500,000 - 1,500,000 2.5p 26 Sep 2020 25 Sep 2023 G Cryan - 1,500,000 - 1,500,000 3.0p 26 Sep 2020 25 Sep 2023 B Wasse - 6,000,000 (6,000,000) - 2.0p 07 Sep 2019 06 Sep 2022 B Wasse - 3,000,000 (3,000,000) - 2.5p 26 Sep 2020 25 Sep 2023 B Wasse - 3,000,000 (3,000,000) - 3.0p 26 Sep 2020 25 Sep 2023 C Latcham - 10,000,000 (1,250,000) 8,750,000 2.5p 21 Mar 2020 20 Mar 2023 C Latcham - 1,500,000 - 1,500,000 2.5p 26 Sep 2020 25 Sep 2023 C Latcham - 1,500,000 - 1,500,000 3.0p 26 Sep 2020 25 Sep 2023 M Sawyer - 10,000,000 (2,000,000) 8,000,000 2.5p 21 Mar 2020 20 Mar 2023 M Sawyer - 3,000,000 (3,000,000) - 2.5p 26 Sep 2020 25 Sep 2023 M Sawyer - 3,000,000 (3,000,000) - 3.0p 26 Sep 2020 25 Sep 2023 T Harris - 5,000,000 (5,000,000) - 2.5p 26 Sep 2020 25 Sep 2023 T Harris - 5,000,000 (5,000,000) - 3.0p 26 Sep 2020 25 Sep 2023 J Janik - 5,000,000 (5,000,000) - 2.5p 08 Jan 2021 07 Jan 2024 J Janik - 5,000,000 (5,000,000) - 3.0p 08 Jan 2021 07 Jan 2024 S Day 5,000,000 - - 5,000,000 25.0p 05 May 2024 04 May 2026   5,000,000 204,500,000 (106,250,000) 103,250,000

 

The fair value of the 5 million options granted on 05 May 2021 using an adjusted Black-Scholes method and assumptions were as follows: Options issued 5 million share options Grant date 05 May 2021 Fair value at measurement date 0.764 pence Share price at grant date 20.1 pence Exercise price 25 pence Expected volatility Vesting period: 3 years after grant 51% 05 May 2024 Option life 60 months Expected dividends 0.00% Risk free interest rate 0.50% Discount 40% Fair value of options granted £229,420   The fair value of these share options expensed during the year was £11,794, being the value of the options attributable to the vesting period to 30 June 2021 (2020: £154,492). £76,473, £76,473 and £64,680 will be expensed in the following years, being the value of these options attributable to the end of their vesting dates. £221,028 in respect of the exercised share options was transferred to reserves (2020: £116,945). The volatility is set by reference to the historic volatility of the share price of the Company.
21	Cash and cash equivalents - Group	30 June 2021 £				Currency adjustments £			Net Cash flow £		30 June 2020 £
	Cash at bank and in hand	6,212,057			(42,915)				232,227		6,022,745
	Total cash and cash equivalents	6,212,057			(42,915)				232,227		6,022,745
	Cash and cash equivalents - Company	30 June 2021 £			Currency adjustments £				Net Cash flow £		30 June 2020 £
	Cash at bank and in hand	5,168,498			-				910,578		4,257,920
	Total cash and cash equivalents	5,168,498			-				910,578		4,257,920
	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.
22	Commitments As at 30 June 2021, 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.
	Tenement rental and expenditure commitments The Company is required to maintain current rights of tenure to tenements, which require outlays of expenditure. A tenement will be liable to forfeiture if the expenditure conditions, specified within the terms of the grant, are not complied with. The Company has a 100% share of the tenement rental and expenditure commitments of: Group Group Company Company 2021 2020 2021 2020 £ £ £ £ Lease payments payable: Current (< 1 year) 314,519 406,673 - - 2-5 years 527,370 505,079 - - > 5 years 805,734 - - - 1,647,623 911,752 - -
23	Significant agreements and transactions On 29 November 2020, Greatland signed a series of agreements in relation to the Havieron project variously between Newcrest Operations Limited ("Newcrest"), Greatland Gold plc ("Greatland") and Greatland Pty Ltd ("GPL") including a Joint Venture and Loan Agreement for the Havieron project and Joint Venture Agreement for the Black Hills and Paterson Range East licences.   There were no other significant agreements and transactions to report other than those reported in Note 21.
24	Events after the reporting period Post-Balance Sheet Capital Raises and issue of options On 1 July 2021 the Company announced that during June 2021, it had issued 540,541 new ordinary shares of 0.1p each from its block listing authority of 10 February 2020 for a total consideration of £13,514. On 29 July 2021 the Company received a binding option exercise notice from Clive Latcham for 250,000 options at 3.0 pence per share for a total consideration of £7,500. On 2 August 2021 the Company announced that during July 2021, it had issued 6,216,216 new ordinary shares of 0.1p each from its block listing authority of 10 February 2020 for a total consideration of £155,405. On 1 September 2021 the Company announced that during August 2021, it had issued 10,810,812 new ordinary shares of 0.1p each from its block listing authority of 10 February 2020 for a total consideration of £270,270. Corporate On 8 July 2021, the Company announced the appointment of Christopher Toon as Chief Financial Officer of the Company, in a non-Board role, with effect from 12 July 2021 On 20 July 2021, the Company announced the release of a new corporate presentation. On 11th August 2021, the Company announced the appointment of Otto Richter as Group Mining Engineer with effect from 16 August 2021 On 25 August 2021 the Company announced the appointment of Paul Hallam as a Non-Executive Director and the stepping down of Callum Baxter in his full time role as Chief Technical Officer and Executive Director on 31 August 2021.  The Company also announced the establishment of a Technical Advisory Committee. On 16 September 2021, the Company announced it had entered into an agreement with Province resources Limited to acquire the 100% owned Pascalle tenement, the 100% owned Taunton tenement and two tenement applications for exploration licences in the Paterson Province of Western Australia for a consideration of cash and shares. On 7 October 2021, the Company announced the planned release of the pre-feasibility study results at the Havieron gold-copper deposit in the Paterson region of Western Australia on 12 October 2021 On 12 October 2021, the Company announced the release of a Pre-Feasibility Study on the South-East Crescent of Havieron On 12 October 2021, the Company announced the release of a new corporate presentation On 18 October 2021, the Company announced it has been awarded winner of the 2021 Commodity Discovery Fund award for its Havieron discovery On 19 October 2021, the Company announced it and its joint venture partner Newcrest Mining Limited had advanced to Stage 2 of the Juri Joint Venture
25	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.  See note 8 for further information.
							2021 £				2020 £
	Short-term employee benefits Share based payments						1,348,676 20,249				1,708,920 154,492
							1,368,925				1,863,412
26	Financial instruments - Group
	The Group uses financial instruments comprising cash, liquid resources and debtors/creditors that arise from its operations.
	Group Group Company Company 2021 2020 2021 2020 £ £ £ £ Financial assets at amortised cost Trade and other receivables 78,198 23,865 - - Cash and cash equivalents 6,212,057 6,022,745 5,168,498 4,257,920 6,290,255 6,060,810 5,168,498 4,257,920 Financial liabilities Trade and other payables (at amortised cost) 3,491,906 911,301 389,024 168,036 Lease liabilities (current and non-current) 348,399 412,175 37,506 61,946 Provisions 3,813,372 - - - Borrowings 12,189,790 - - - 19,843,467 1,323,476 426,530 229,982   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 2021 £			30 June 2020 £
	Sterling						5,168,498			4,257,920
	Australian Dollars						1,043,559			1,764,825
	At 30 June 2021						6,212,057			6,022,745
	The financial assets comprise interest earning bank deposits.
27	Contingent liabilities

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".

 

28	Ultimate Controlling Party There is considered to be no ultimate controlling entity.