Final Results

RNS Number : 4539U

Greatland Gold PLC

24 October 2017

 

24 October 2017

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).

Greatland Gold plc

("Greatland" or "the Company")

Final Results

Greatland Gold plc (LON:GGP), the London Stock Exchange AIM listed precious and base metals exploration and development business is pleased to announce its financial results for the year ended 30 June 2017. 

Chairman's Statement

I am pleased to report to our shareholders that this has been an exciting year for Greatland Gold and a year that has seen major positive developments on several fronts.

As I discussed in last year's annual report, the Board of Greatland Gold believes that we are at or near the bottom of the commodities cycle and we remain particularly positive on the outlook for gold and precious metals. Consequently, we have taken actions over the past two years to reposition Greatland for what we hope is a sustained upturn in the sector.

One of the highlights of the year was reaching an agreement with Newmont Exploration Pty Ltd, a subsidiary of Newmont Mining Corporation (NYSE:NEM), one of the world's largest gold producers, regarding the Ernest Giles gold project. Under the agreement, announced on 16^th May 2017, Newmont was granted access to Greatland's Ernest Giles project tenements for a period of six months and was granted the right to apply certain proprietary exploration methods across the project area. Additionally, Newmont was granted a right of first refusal over the Ernest Giles project for a period of six months.

During the year, Greatland also expanded its exploration portfolio through the acquisition of the Havieron project (EL45/4701). The Havieron project covers 135 square kilometres in the Paterson region in Western Australia is located approximately 40 kilometres east of Newcrest's Telfer gold mine. Limited historical exploration by Newcrest in the late 1990s demonstrated high grade gold and copper mineralisation at Havieron with peak values of 15g/t gold and 2.5% copper. Later in the year, Greatland applied for another tenement in the region, Paterson Range East. A subsequent review of geophysical and geochemical data has highlighted the potential for multiple iron-oxide-copper-gold ("IOCG") targets across both the Havieron and Paterson Range East licences.

In June 2017, Greatland announced its entry in the cobalt market with the application for two adjoining exploration licences in the Pilbara region of Western Australia (the "Panorama project"). Greatland considers the Panorama project to be highly prospective for cobalt as it occupies a dominant and strategic position across what is potentially the largest coherent cobalt in streams anomaly in Western Australia.

In October 2017, Greatland announced that it had identified multiple gold targets at Ernest Giles East following the successful completion of Mobile Metal Ion ("MMI") surface geochemistry and ground gravity surveys. In particular, several clusters of MMI anomalies were identified, with key clusters exhibiting a strike in excess of nine kilometres long and up to three kilometres wide. Following the announcement of these results, Greatland further announced that it applied for a new exploration licence to expand the Ernest Giles project.

In January 2017, we announced the appointment of Gervaise Heddle as Chief Executive Officer and Callum Baxter as Chief Technical Officer, and the appointment of a new Geology Manager, Gemma Cryan. In February 2017, we announced the appointment of Michael McNeilly as a Non-Executive Director.

Greatland Gold successfully raised £1,371,704 of new equity (net of costs) during the year and a further £1,663,107 since the close of the financial year. These funds will be used to advance further our current projects and to take advantage of the exciting opportunities that we believe exist in the market at this time, whilst maintaining a disciplined approach towards capital allocation.

Over the past 12 months the Group recorded a loss of £1,250,534, equating to a loss of 0.07 pence per share with net cash inflow for the year of £38,730. The loss for the year is reflective of total administrative expenses of £694,186 plus exploration costs of £557,848. This compares to a loss of £662,903 in the previous year that equated to a loss of 0.06 pence per share. The Group's cash deposits stood at £930,500 at the period end.

Our strategy for the year is to further advance our existing pipeline of exploration projects and to identify new early-stage exploration opportunities that we believe are underappreciated by the market.

We remain confident in the long-term fundamentals for our sector, and we are particularly optimistic regarding the outlook for gold, precious metals and selected new energy metals. We intend to capitalise on this view by advancing our existing projects and seeking new projects at sensible valuations. I would like to thank the entire Greatland Gold team for their efforts during this successful and rewarding year.

Alex Borrelli

Chairman

24^th October 2017

Directors' report

The Directors present their eleventh annual report on the affairs of the Group and parent company, together with the Group financial statements for the year ended 30 June 2017.

Fundraising

The Group raised £1,371,704 net of costs during the year (2016: £637,000).

Results and dividends

The Group's results are described in the Group statement of comprehensive income on page 20. The audited financial statements for the year ended 30 June 2017 are set out on pages 20 to 44.

The Group has incurred a loss for the year of £1,250,534 (2016: £662,903).

The Directors do not recommend the payment of a dividend.

Group statement of comprehensive income

for the year ended 30 June 2017

	Notes	Year ended  30 June 2017 £		Year ended  30 June 2016 £
Revenue	2	-		-
Exploration costs		(557,848)		(145,232)
Administrative expenses		(694,186)		(518,894)
Operating loss		(1,252,034)		(664,126)
Finance revenue		1,500		1,223
Loss before taxation	3	(1,250,534)		(662,903)
Income tax expense	4	-		-
Loss for the year		(1,250,534)		(662,903)
Other comprehensive income Exchange differences on translation of foreign operations		29,240		45,444
Other comprehensive income for the year net of taxation		29,240		45,444
Total comprehensive income for the year attributable to equity holders of the parent company		(1,221,294)		(617,459)
Loss per share - basic and diluted	8	(0.07) pence		(0.06) pence

All operations are considered to be continuing.

 

Group balance sheet

as at 30 June 2017

	Note	30 June 2017		30 June 2016
		£	£	£	£
ASSETS
Non-current assets Tangible assets	9	-		8,058
Intangible assets	10	671,515		332,154
			671,515		340,212
Current assets Cash and cash equivalents Trade and other receivables	17 12	930,500 51,793		883,478 88,429
Total current assets			982,293		971,907
TOTAL ASSETS			1,653,808		1,312,119
LIABILITIES
Current liabilities Trade and other payables	13	(118,829)		(68,131)
TOTAL LIABILITIES			(118,829)		(68,131)
NET ASSETS			1,534,979		1,243,988
EQUITY Called-up share capital Share premium reserve Share based payment reserve	14 15	1,091,598 7,042,627 328,060		1,041,614 5,720,907 277,533
Retained earnings		(7,223,363)		(6,062,883)
Other reserves		296,057		266,817
TOTAL EQUITY			1,534,979		1.243.988

These financial statements were approved by the Board of Directors on 24th October 2017 and signed on its behalf by:

Alex Borrelli Chairman

Gervaise Heddle Chief Executive Officer

 

 

Group statement of changes in equity

for the year ended 30 June 2017

 

	Share capital	Share premium account	Share based payment reserve	Retained earnings	Other reserves	Total
	£	£	£	£	£	£
As at 30 June 2015	992,338	5,050,183	60,000	(5,399,980)	221,373	923,914
Loss for the year	-	-	-	(662,903)	-	(662,903)
Currency translation differences	-	-	-	-	45,444	45,444
Total comprehensive income	-	-	-	(662,903)	45,444	(617,459)
Share option charge	-	-	217,533	-	-	217,533
Share capital issued	49,276	693,724	-	-	-	743,000
Cost of share issue	-	(23,000)	-	-	-	(23,000)
Total contributions by and distributions to owners of the Company	49,276	670,724	217,533	-	-	937,533
As at 30 June 2016	1,041,614	5,720,907	277,533	(6,062,883)	266,817	1,243,988

Loss for the year	-	-	-	(1,250,534)	-	(1,250,534)
Currency translation differences	-	-	-	-	29,240	29,240
Total comprehensive income	-	-	-	(1,250,534)	29,240	(1,221,294)
Share option charge	-	-	140,581	-	-	140,581
Transfer on exercise of options and warrants	-	-	(90,054)	90,054	-	-
Share capital issued	49,984	1,359,695	-	-	-	1,409,679
Cost of share issue	-	(37,975)	-	-	-	(37,975)
Total contributions by and distributions to owners of the Company	49,984	1,321,720	50,527	90,054	-	1,512,285
As at 30 June 2017	1,091,598	7,042,627	328,060	(7,223,363)	296,057	1,534,979

 

Group statement of changes in equity

for the year ended 30 June 2017, continued

Other reserves	Merger reserve	Foreign currency translation reserve	Total other reserves
	£	£	£
As at 30 June 2015	225,000	(3,627)	221,373
Currency translation differences	-	45,444	45,444
Total comprehensive income	-	45,444	45,444
As at 30 June 2016	225,000	41,817	266,817

Currency translation differences	-	29,240	29,240
Total comprehensive income	-	29,240	29,240
As at 30 June 2017	225,000	71,057	296,057

Company balance sheet

as at 30 June 2017

	Note	30 June 2017		30 June 2016
		£	£	£	£
ASSETS
Non-current assets Investment in subsidiary	11		50,000		50,000
Current assets Cash and cash equivalents Trade and other receivables	17 12	910,588 1,293,411		852,348 533,114
Total Current Assets			2,203,999		1,385,462
TOTAL ASSETS			2,253,999		1,435,462
LIABILITIES
Current Liabilities Trade and other payables	13	(98,963)		(61,795)
TOTAL LIABILITIES			(98,963)		(61,795)
NET ASSETS			2,155,036		1,373,667
EQUITY Called-up share capital Share premium reserve Share based payment reserve	14 15	1,091,598 7,042,627 328,060		1,041,614 5,720,907 277,533
Merger reserve		225,000		225,000
Retained earnings		(6,532,249)		(5,891,387)
TOTAL EQUITY			2,155,036		1,373,667

These financial statements were approved by the Board of Directors on 24th October 2017 and signed on its behalf by:

Alex Borrelli Chairman

Gervaise Heddle Chief Executive Officer

Company statement of changes in equity

for the year ended 30 June 2017

 

	Called up share capital	Share premium account	Share based payment reserve	Retained earnings	Merger reserve	Total
	£	£	£	£	£	£
As at 30 June 2015	992,338	5,050,183	60,000	(5,349,296)	225,000	978,225
Loss for the year	-	-	-	(542,091)	-	(542,091)
Total comprehensive income	-	-	-	(542,091)	-	(542,091)
Share option charge	-	-	217,533	-	-	217,533
Share capital issued	49,276	693,724	-	-	-	743,000
Cost of share issue	-	(23,000)	-	-	-	(23,000)
Total contributions by and distributions to owners of the Company	49,276	670,724	217,533	-	-	937,533
As at 30 June 2016	1,041,614	5,720,907	277,533	(5,891,387)	225,000	1,373,667
Loss for the year	-	-	-	(730,916)	-	(730,916)
Total comprehensive income	-	-	-	(730,916)	-	(730,916)
Share option charge	-	-	140,581	-	-	140,581
Transfer on exercise of options and warrants	-	-	(90,054)	90,054	-	-
Share capital issued	49,984	1,359,695	-	-	-	1,409,679
Cost of share issue	-	(37,975)	-	-	-	(37,975)
Total contributions by and distributions to owners of the Company	49,984	1,321,720	50,527	90,054	-	1,512,285
As at 30 June 2017	1,091,598	7,042,627	328,060	(6,532,249)	225,000	2,155,036

 

Group cash flow statement

for the year ended 30 June 2017

	Notes	Year ended 30 June 2017 £		Year ended 30 June 2016 £
Cash (out)flows from operating activities Operating loss Decrease/(Increase) in trade & other receivables Increase(Decrease) in trade & other payables Depreciation Share option charge Salary sacrifice charge		(1,252,034) 36,637 50,698 1,405 140,580 -		(664,126) (40,162) (106,920) 3,323 217,533 83,000
Net (decrease) in cash and cash equivalents from operations		(1,022,714)		(507,352)
Cash in/(out)flows from investing activities Interest received Disposal of fixed assets Payments to acquire intangible assets		1,500 7,251 (319,011)		1,223 - -
Net cash in/(out)flows used in investing activities		(310,260)		(1,223)
Cash inflows from financing activities Proceeds from issue of shares Transaction costs of issue of shares		1,409,679 (37,975)		660,000 (23,000)
Net cash flows from financing activities		1,371,704		637,000
Net increase in cash and cash equivalents	17	38,730		130,871
Cash and cash equivalents at the beginning of period		883,478		748,117
Exchange gain/(loss) on cash and cash equivalents		8,292		4,490
Cash and cash equivalents at end of period	17	930,500		883,478

 

Company cash flow statement

for the year ended 30 June 2017

	Notes	Year ended 30 June 2017 £		Year ended 30 June 2016 £
Cash flows from operating activities Operating loss Decrease/(Increase) in trade & other receivables Increase/(Decrease) in trade & other payables Share option charge Salary sacrifice charge		(731,074) 49,703 37,168 140,581 -		(542,191) (53,012) (18,393) 217,533 83,000
Net (decrease) in cash and cash equivalents from operations		(503,622)		(313,063)
Cash in/(out)flows from investing activities Interest received Loans to subsidiary		158 (810,000)		100 (175,000)
Net cash (outflows) used in investing activities		(809,842)		(174,900)
Cash inflows from financing activities Proceeds from issue of shares Transaction costs of issue of shares		1,409,679 (37,975)		660,000 (23,000)
Net cash flows from financing activities		1,371,704		637,000
Net increase in cash and cash equivalents	17	58,240		149,037
Cash and cash equivalents at the beginning of period		852,348		703,311
Cash and cash equivalents at end of period	17	910,588		852,348

Notes to financial statements

for the year ended 30 June 2017

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 2017 were authorised for issue by the board on 24th October 2017 and the balance sheets signed on the board's behalf by Mr Gervaise Heddle and Mr Alex Borrelli. Greatland Gold plc is a public limited company incorporated and domiciled in England and Wales. The Company's ordinary shares are traded on AIM. The Group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The Company's financial statements have been prepared in accordance with IFRS as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006. The principal accounting policies adopted by the Group and Company are set out below. Adoption of new and revised Accounting Standards In the current year, the Company has adopted all of the new and revised standards and interpretations issued by the Accounting Standards and Interpretations Board that are relevant to its operations and effective for the current reporting period and there is no material impact on the financial statements of the group or company.
1.2	Significant accounting judgments, estimates and assumptions
	Significant accounting estimates and assumptions The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are: Impairment of goodwill and intangibles with indefinite useful lives The Group determines whether goodwill and intangibles with indefinite useful lives are impaired at least on an annual basis. This requires an estimation of the recoverable amount of the cash-generating units to which the goodwill and intangibles with indefinite useful lives are allocated. Share-based payment transactions The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined using a Black-Scholes model.
1.3	Basis of preparation The consolidated financial statements of Greatland Gold plc and its subsidiary have been prepared in accordance with International Reporting Standards (IFRS) as adopted for use in the European Union. The consolidated financial statements have been prepared on the historical cost basis, except for the measurement to fair value of assets and financial instruments as described in the accounting policies below, and on a going concern basis. Going Concern The consolidated entity has incurred a loss before tax of £1,250,534 for the year ended 30 June 2017, and had a net cash outflow of £1,332,974 from operating and investing activities. At that date there were net current assets of £863,464. The loss resulted almost entirely from exploration costs and associated administrative related costs. The Directors are confident in the Company's ability to raise new finance from stock markets if this is required during 2018 and the Group has demonstrated a consistent ability to do so. This includes a share issuance of 166,666,667 placing shares for gross proceeds of £750,000 and 271,928,572 shares as a result of warrant conversions for proceeds of £958,107 since the 2017 financial year-end.
	Therefore, as at 17 October 2017 a total of 438,595,539 shares have been issued since 30 June 2017 raising net total proceeds of £1,663,107. The Group's cash flow forecast for the 12 months ending 31 October 2018 highlights adequate funding at current levels of projected expenditure to last well into 2019. The Board of Directors are confident that sufficient funding is in place to meet all its operational and exploration commitments over the next twelve months and to remain cash positive for the whole period. Given the Group's current positive cash position and its ability to raise new capital the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the annual report and accounts.
1.4	Basis of consolidation The consolidated accounts combine the accounts of the Company and its sole subsidiary, Greatland Pty Ltd, using the purchase method of accounting. In the Company's balance sheet the investment in Greatland Pty Ltd includes the nominal value of shares issued together with the cash element of the consideration. As required by the Companies Act 2006, no premium was recognised on the share issue. The difference between nominal and fair value of the shares issued was credited to the merger reserve.
1.5	Goodwill Goodwill on acquisition is capitalised and shown within fixed assets. Positive goodwill is subject to annual impairment review with movements charged in the income statement. Negative goodwill is reassessed by the Directors and attributed to the relevant assets to which it relates.
1.6	Non-current asset investments Investments in subsidiary companies are classified as non-current assets and included in the balance sheet of the Company at cost at the date of acquisition irrespective of the application of merger relief under the Companies Act.
1.7	Cash and cash equivalents Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
1.8	Income tax and deferred taxation Current tax assets and liabilities for the current and prior periods are measured as the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted by the balance sheet date. Full provision is made for deferred taxation resulting from timing differences which have arisen but not reversed at the balance sheet date.
1.9	Tangible fixed assets Fixed assets are depreciated on a straight-line basis at annual rates that will reduce the book amounts to estimated residual values over their anticipated useful lives as follows: ·      Motor vehicles:  25% per annum ·      Equipment:  7% per annum

1.10	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 Limited, is Australian Dollars (A$). Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.  Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the income statement. On consolidation of a foreign operation, assets and liabilities are translated at the balance sheet rates, income and expenses are translated at rates ruling at the transaction date. Exchange differences on consolidation are taken to the income statement.
1.11	Other income The Group had no other income during the periods ending 30 June 2017 and 30 June 2016. Previous years consisted of a grant from the state government of Western Australia.  Government grants are accounted for on a receipts basis.
1.12	Finance costs/revenue Borrowing costs are recognised as an expense when incurred. Finance revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.
1.13	Trade and other receivables Trade receivables, which generally have 30 day terms, are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. An allowance for doubtful debts is made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off when identified.
1.14	Financial instruments The Group's financial instruments, other than its investments, comprise cash and items arising directly from its operation such as trade debtors and trade creditors. The Group has an overseas subsidiary in Australia whose expenses are denominated in Australian Dollars. Market price risk is inherent in the Group's activities and is accepted as such. There is no material difference between the book value and fair value of the Group's cash.
1.15	Trade and other payables Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services.

1.16	Earnings per share Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element. Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for: ·      costs of servicing equity (other than dividends) and preference share dividends; ·      the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and ·      other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.
1.17	Exploration and development expenditure Exploration and development costs include expenditure on prospects at an exploratory stage. These costs include the cost of acquisition, exploration, determination of recoverable reserves, economic feasibility studies and all technical and administrative overheads directly associated with those projects. A substantial proportion of these costs are carried forward in the balance sheet as intangible fixed assets. Recoupment of capitalised exploration and development costs is dependent upon successful development and commercial exploitation of each area of interest and are amortised over the expected commercial life of each area once production commences. The Company adopts the 'area of interest' method of accounting whereby a substantial proportion of exploration and development costs relating to an area of interest are capitalised and carried forward until abandoned.  In the event that an area of interest is abandoned, or if the Directors consider the expenditure to be of no value, accumulated exploration costs are written off in the financial year in which the decision is made.  All expenditure incurred prior to approval of an application is expensed with the exception of refundable rent which is raised as a debtor. Impairment reviews are carried out regularly by the Directors of the Company. Where a project is abandoned or is considered not to be of commercial value to the Company, the related costs are written off or provisions are made.

 

1.18

Share based payments The fair value of options granted to directors and others in respect of services provided is recognised as an expense in the profit and loss account with a corresponding increase in equity reserves - the share based payment reserve. On exercise or cancellation of share options, the proportion of the share based payment reserve relevant to those options is transferred to the profit and loss account reserve. On exercise, equity is also increased by the amount of the proceeds received. The fair value is measured at grant date charged in the accounting period during which the option becomes unconditional. The fair value of options is calculated using the Black-Scholes model taking into account the terms and conditions upon which the options were granted. Vesting conditions are non-market and there are no market vesting conditions. The exercise price is fixed at the date of grant and no compensation is due at the date of grant.

2	Revenue and segmental analysis
	The Group's prime business segment is mineral exploration.  The Group operates within two geographical segments, the United Kingdom and Australia. The UK sector consists of the parent company which provides administrative and management services to the subsidiary undertaking based in Australia. The following tables present revenue and loss information and certain asset and liability information by geographical segments:
		UK	Australia	Total
	Year ended 30 June 2017	£	£	£
	Revenue Total segment revenue	-	-	-
	Total consolidated revenue			-
	Result Segment results	(731,074)	(520,960)	(1,252,034)
	Loss before tax and finance costs Interest receivable Loss on disposal of investments			(1,252,034) 1,500 -
	Loss before taxation Taxation expense			(1,250,534) -
	Loss after taxation			(1,250,534)

	Year ended 30 June 2017	UK £	Australia £	Total £
	Assets and liabilities
	Segment assets	948,698	705,110	1,653,808
	Total assets			1,653,808
	Segment liabilities	(98,964)	(19,865)	(118,829)
	Total liabilities			(118,829)
	Other segment information Capital expenditure	-	319,130	319,130
	Depreciation	-	1,405	1,405

 

		UK	Australia	Total
	Year ended 30 June 2016	£	£	£
	Revenue Total segment revenue	-	-	-
	Total consolidated revenue			-
	Result Segment results	(542,192)	(121,934)	(664,126)
	Loss before tax and finance costs Interest receivable			(664,126) 1,223
	Loss on disposal of investments			-
	Loss before taxation Taxation expense			(662,903) -
	Loss after taxation			(662,903)

	Year ended 30 June 2016	UK £	Australia £	Total £
	Assets and liabilities
	Segment assets	940,161	371,958	1,312,119
	Total assets			1,312,119
	Segment liabilities	(61,795)	(6,335)	(68,130)
	Total liabilities			(68,130)
	Other segment information Capital expenditure	-	-	-
	Depreciation	-	3,323	3,323

3	Loss on ordinary activities before taxation	2017 £	2016 £
	Loss on ordinary activities before taxation is stated after charging: Auditors' remuneration - audit Depreciation Directors' emoluments	15,000 1,405 391,725	15,000 3,323 293,026
	Auditors' remuneration for audit services above excludes AU$5,100 (2016: AU$5,100) charged by Charles Foti (Australia) relating to the audit of the subsidiary company.

 

4	Taxation
		2017	2016
	Analysis of charge in year	£	£
	Tax on profit on ordinary activities	-	-

	Factors affecting tax charge for year
	The differences between the tax assessed for the year and the standard rate of corporation tax are explained as follows:
		2017	2016
		£	£
	Loss on ordinary activities before tax	(1,250,534)	(662,903)
	Standard rate of corporation tax in the UK	20%	20%
		£	£
	Loss on ordinary activities multiplied by the standard rate of corporation tax	(250,107)	(132,581)
	Effects of:
	Expenses not deductible for tax: Share option charge	42,174	43,507
	Future tax benefit not brought to account	207,933	89,074
	Income tax expense	-	-
	No deferred tax asset has been recognised because there is insufficient evidence of the timing of suitable future profits against which they can be recovered.

5	Employee information (excluding directors) Staff costs comprised:	2017 £	2016 £
	Wages and salaries	-	-
		Number	Number
	Administration	-	-

6

Dividends No dividends were paid or proposed by the Directors. (2016: £Nil)

 

7	Directors' emoluments:						2017 £	2016 £
	Directors' remuneration						391,725	293,026
		Directors' fees	Consultancy fees	Share options cancelled	Payment for Fair Value of Options	Share options granted	Pro rata shares issued: salary sacrifice	Total
	2017	£	£	£	£	£	£	£
	Executive directors C N Baxter Gervaise Heddle Non-executive directors Alex Borrelli Michael McNeilly (appointed 10 February 2017) Paul Johnson      (resigned 14 August 2016) A R M Bell             (resigned 14 August 2016)	- - - - - -	93,750 110,750 28,500 13,088 - -	- - - - - -	- - - - - -	28,018 28,018 14,009 13,342 - -	18,000 - 13,125 - 13,125 18,000	139,768 138,768 55,634 26,430 13,125 18,000
		-	246,088	-	-	83,387	62,250	391,725
	2016	£	£	£	£	£	£	£
	Executive directors C N Baxter Gervaise Heddle Non-executive directors Alex Borrelli Paul Johnson A R M Bell J Watkins	6,000 - - - 6,000 6,000	71,250 2,250 - - 10,500 9,000	(40,000) - - - (10,000) (10,000)	- - - - - 2,000	37,864 67,820 37,864 37,864 37,864 -	6,000 - 4,375 4,375 6,000 -	81,114 70,070 42,239 42,239 50,364 7,000
		18,000	93,000	(60,000)	2,000	219,276	20,750	293,026

Fees in respect of C N Baxter were payable to Baxter Geological, a company of which he is a director, and which provided his services.

Fees in respect of Alex Borrelli were payable to Borrelli Capital Limited, a company of which he is a director, and which provided his services.

Fees in respect of Gervaise Heddle were payable to Bletchley Economics, a company of which he is a director, and which provide his services.

Fees in respect of Michael McNeilly were payable to his business as a consultant.

Fees in respect of A R M Bell were payable to his business as a consultant.

Fees in respect of John Watkins were payable to his business as a chartered accountant in practice.

			On 6 April 2016 the Company's directors proposed to swap a proportion of their salary for the next twelve months in exchange for shares in the Company. Under this proposal, a total of 47,428,570 shares at 0.175 pence per share were issued at a cost of £83,000. Of this amount £62,250 has been expensed during the year and £20,750 was expensed in the previous year. No pension benefits are provided for any director. Also, see note 21 for related party transactions
8		Loss per share
		The basic loss per share is derived by dividing the loss for the period attributable to ordinary shareholders by the weighted average number of shares in issue.
				2017 £		2016 £
		Loss for the period		(1,250,534)		(662,903)
		Weighted average number of Ordinary shares of £0.001 in issue Loss per share - basic		1,694,378,384 (0.07) pence		1,049,314,266 (0.06) pence
		Weighted average number of Ordinary shares of £0.001 in issue inclusive of outstanding options		1,694,378,384		1,049,314,266
		As inclusion of the potential Ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive; as such, a diluted earnings per share is not included.

9	Tangible fixed assets - Group
		Motor vehicle	Equipment	Total
	Cost	£	£	£
	At 30 June 2016	28,008	4,792	32,800
	Disposals during the period Additions during the period	(30,086) -	(5,148) -	(35,234) -
	Foreign exchange rate fluctuations	2,078	356	2,434
	At 30 June 2017	-	-	-
	Depreciation
	At 30 June 2016 Disposals during the period	21,736 (24,753)	3,006 (3,230)	24,742 (27,983)
	Charge for the period	1,405	-	1,405
	Foreign exchange rate fluctuations	1,612	224	1,836
	At 30 June 2017	-	-	-
	Net book value
	At 30 June 2017	-	-	-
	At 30 June 2016	6,272	1,786	8,058

 

					Motor vehicle		Equipment					Total
			Cost		£		£					£
			At 30 June 2015		24,639		4,216					28,855
			Disposals during the period Additions during the period		- -		- -					- -
			Foreign exchange rate fluctuations		3,369		576					3,945
			At 30 June 2016		28,008		4,792					32,800
			Depreciation
			At 30 June 2015 Disposals during the period		15,862 -		2,612 -					18,474 -
			Charge for the period		3,290		33					3,323
			Foreign exchange rate fluctuations		2,584		361					2,945
			At 30 June 2016		21,736		3,006					24,742
			Net book value
			At 30 June 2016		6,272		1,786					8,058
			At 30 June 2015		8,777		1,604					10,381
10		Intangible non-current assets - Group		2017 £						2016 £
			Exploration properties
			At 30 June 2016			962,948					922,994
			Additions during the period			319,130					-
			Foreign exchange rate fluctuations			20,231					39,954
			At 30 June 2017			1,302,309					962,948
			Impairment
			At 30 June 2016			(630,794)					(630,794)
			Charge for the period			-					-
			Foreign exchange rate fluctuations			-					-
			At 30 June 2017			(630,794)					(630,794)
			Net book amount
			At 30 June 2017			671,515					332,154
			At 30 June 2016			332,154					292,200

 

         Impairment review

As at 30 June 2017, the Directors carried out an impairment review of the exploration properties and considered an impairment charge was not required (2016: £nil). However, during the year £557,848 (2016: £145,232) of exploration related costs have been charged directly to the Income Statement as these costs were deemed non-beneficial to the future value of the exploration properties. Costs directly related to exploration programmes that, in the opinion of the Directors, are considered to add value to the respective exploration properties are capitalised. During the year, the largest capitalised addition related to the successful exploration programme conducted at the Ernest Giles project, as announced in January 2017.

11	Non-current asset investments in subsidiary - Company		£
	Cost
	At 30 June 2016		50,000
	Impairment of investment		-
	At 30 June 2017		50,000
	Net book amount
	At 30 June 2017		50,000
	At 30 June 2016		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%	Mineral exploration

12	Trade and other receivables	Group		Company
		2017 £	2016 £	2017 £	2016 £
	Current trade and other receivables: Prepayments Other debtors Loans due from subsidiary	38,109 13,684 -	87,813 616 -	38,109 - 1,255,302	87,813 - 445,301
	Total	51,793	88,429	1,293,411	533,114
	The loan due from subsidiary was interest free throughout the period, and has no fixed repayment date. No provision £nil (2016: £nil) has been made against this loan.

13	Trade and other payables	Group				Company
		2017 £	2016 £			2017 £	2016 £
	Current trade and other payables: Trade creditors Accruals	89,012 29,817	22,047 46,084			69,146 29,817	15,711 46,084
	Total	118,829	68,131			98,963	61,795
14	Share capital
	Called up, allotted, issued and fully paid				Number		£
	As at 30 June 2016, Ordinary shares of £0.001p each				1,485,099,848		1,041,614
	Issued during the year
	On 02 August 2016, at a price of £0.028p, for cash On 31 January 2017, at a price of £0.02p, for cash On 06 February 2017, at a price of £0.028p, for cash On 23 May 2017, at a price of £0.02p, for cash On 14 June 2017, at a price of £0.05p, for cash On 15 June 2017, at a price of £0.0375p, for cash On 16 June 2017, at a price of £0.045p, for cash On 16 June 2017, at a price of £0.0375p, for cash On 16 June 2017, at a price of £0.02p, for cash On 23 June 2017, at a price of £0.02p, for cash On 27 June 2017, at a price of £0.0375p, for cash On 27 June 2017, at a price of £0.02p, for cash				146,249,997 50,000,000 125,000,000 15,000,000 25,000,000 13,333,333 8,928,571 36,333,332 8,000,000 50,000,000 5,000,000 17,000,000		14,625 5,000 12,500 1,500 2,500 1,333 893 3,633 800 5,000 500 1,700
	As at 30 June 2017, Ordinary shares of £0.001p each				1,984,945,081		1,091,598

 

Total share options in issue As at 30 June 2017 there were 214 million unexercised options over Ordinary shares; 75 million exercisable at 0.2 pence per share in issue, 50 million exercisable at 0.5 pence per share in issue, 75 million exercisable at 0.28 pence for share in issue and 14 million exercisable at 0.4 pence per share in issue (2016: 150 million).

15		Share based payments
		The Company has an employee share option plan to enable the issue of options as part of the remuneration of key management personnel and directors to enable them to purchase ordinary shares in the Company. Under the plan, 75 million options were granted for no cash consideration and were granted for a period of three years expiring 18 July 2020. Under the same plan, 14 million options were granted for no cash consideration and were granted for a period of three years expiring on 10 August 2020.   Granted during the period At 30 June 2016 Share options exercised Exercisable at 30 June 2017 Exercise price (pence) Date from which exercisable Expiry date   CN Baxter - 25,000,000 - 25,000,000 0.2p 6 Apr 2016 6 Apr 2019 CN Baxter 28,000,000 - - 28,000,000 0.28p 18 Jan 2017 18 Jul 2020 ARM Bell - 25,000,000 (8,000,000) 17,000,000 0.2p 6 Apr 2016 6 Apr 2019 P Johnson - 25,000,000 (17,000,000) 8,000,000 0.2p 6 Apr 2016 6 Apr 2019 A Borrelli - 25,000,000 - 25,000,000 0.2p 6 Apr 2016 6 Apr 2019 A Borrelli 14,000,000 - - 14,000,000 0.28p 18 Jan 2017 18 Jul 2020 G Heddle - 25,000,000 - 25,000,000 0.5p 27 May 2016 27 May 2019 G Heddle 28,000,000 - - 28,000,000 0.28p 18 Jan 2017 18 Jul 2020 G Cryan 5,000,000 - - 5,000,000 0.28p 18 Jan 2017 18 Jul 2020 M McNeilly 14,000,000 - - 14,000,000 0.4p 10 Feb 2017 10 Aug 2020   89,000,000 125,000,000 (25,000,000) 189,000,000
		The fair value of the options using the Black-Sholes method and assumptions were as follows: Options issued 75 million share options 14 million share options Grant date 18 January 2017 10 February 2017 Fair value at measurement date 0.10 pence 0.10 pence Share price at grant date 0.13 pence 0.12 pence Exercise price 0.28 pence 0.4 pence Expected volatility 172% 180% Option life 36 months 36 months Expected dividends 0.00% 0.00% Risk free interest rate 0.50% 0.50% Fair value of options granted £75,048 £13,343
Furthermore, 25 million share options were granted for no cash consideration to SI Capital Limited, the Company's Broker, for a period of two years expiring on 30 June 2018. Granted during the period Exercisable at 30 June 2017 Exercise price Date from which exercisable Expiry date SI Capital Limited 25,000,000 25,000,000 0.5 pence 01 Jul 2016 30 June 2018 25,000,000 25,000,000 The fair value of the options in respect of the services to be provided using the Black-Sholes method and assumptions were as follows: Options issued 25 million share options Grant date 01 July 2016 Fair value at measurement date 0.21 pence Share price at grant date 0.29 pence Exercise price 0.5 pence Expected volatility 179% Option life 24 months Expected dividends 0.00% Risk free interest rate 0.50% Fair value of options granted £52,191 The fair value of the share options expensed during the year was £140,582; £90,054 in respect of the exercised share options was transferred to reserves (2017: £217,533). The volatility is set by reference to the historic volatility of the share price of the Company. The Black-Sholes model assumes that an option is only capable of exercise at expiry.
16		Nature and purpose of reserves - Other reserves Merger Reserve The merger reserve was created in accordance with the merger relief provisions of the Companies Act 1985 (as amended), and 2006, relating to accounting for business combinations involving the issue of shares at a premium. In preparing group consolidated financial statements, the amount by which the fair value of the shares issued exceeded their nominal value was recorded within a merger reserve on consolidation, rather than in a share premium account. Foreign currency translation reserve The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.  Available for sale financial asset reserve This reserve is used to record the post-tax fair value movements in available for sale assets and investments.
17		Cash and cash equivalents - Group	30 June 2017 £			Currency adjustments £		Net Cash flow £	30 June 2016 £
		Cash at bank and in hand	930,500		8,292			38,730	883,478
		Total cash and cash equivalents	930,500		8,292			38,730	883,478
		Cash and cash equivalents - Company	30 June 2017 £		Currency adjustments £			Net Cash flow £	30 June 2016 £
		Cash at bank and in hand	910,588		-			58,240	852,348
		Total cash and cash equivalents	910,588		-			58,240	852,348
		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.
18		Commitments
		As at 30 June 2017, 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.
19		Significant agreements and transactions There were no significant agreements and transactions to report other than that reported in Note 20 (Acquisition of Havieron Project - Western Australia).
20		Events after the reporting period Completion of Acquisition of Havieron Project - Western Australia Under the purchase agreement executed on 26 September 2016 between Pacific Trends Resources Pty Ltd (the "Vendor"), Greatland Pty Ltd (the "Purchaser") and Greatland Gold PLC, the Purchaser agreed to acquire all of the Vendor's rights, title and interest in the mining tenement EL45/4701 (the "Havieron Project") once granted and subject to the satisfaction of certain conditions. Under the agreement, the consideration to be paid to the Vendor by the Purchaser consists of AUD$25,000 in cash and 65,490,000 fully paid ordinary shares in Greatland Gold PLC to be issued by Greatland Gold PLC. This consideration by the Purchaser is payable to the Vendor upon receipt of: (a)  an unstamped but registrable transfer form for the Mining Tenement in favour of the Purchaser and duly executed by the Vendor and all documents of title evidencing the Vendor's interest in the Mining Tenement; (b)  a copy of the Native Title Heritage Agreement in respect of the Mining Tenement which has been previously approved by the Purchaser and signed by all parties to that agreement; and (c)   confirmation from the Department of the grant of the Mining Tenement to the Vendor. Subsequent to the end of the reporting period, it was announced that these conditions had been fulfilled and, as a result, on 15 August 2017, Greatland Gold plc issued 65,490,000 fully paid ordinary shares in Greatland Gold plc to Pacific Trends Resources Pty Ltd.
	Post-Balance Sheet Capital Raise
	On 17 July 2017 the Company announced that it had received a binding option conversion notice for the conversion of 4,000,000 options at price of 0.2p per share for a total amount of £8,000. On 03 August 2017 the Company announced that it had received a binding warrant conversion notice for the conversion of 1,600,000 warrants at price of 0.375p per share for a total amount of £6,000. On 14 August 2017, the Company announced that an application had been made to AIM for a block admission ("Investor Warrants Block Admission scheme") in respect of 305,138,097 new Ordinary Shares, which will be issued and allotted from time to pursuant to the exercise of options under the following schemes: (a) 189,066,668 investor warrants with an exercise price of 0.375 pence per Ordinary Share, and (b) 116,071,429 investor warrants with an exercise price of 0.45 pence per Ordinary Share. During the period from 14 August 2017 to 20 September 2017, binding option conversion notices were received for 22,500,000 warrants at a price of 0.375p per share for a total amount of £84,375.00. These shares were admitted under the Investor Warrants Block Admission scheme announced 14 August 2017. On 20 September 2017 the Company announced that it had raised £750,000 through a strategic placing of 166,666,667 new ordinary shares of 0.1 pence each at a subscription price of 0.45 pence per Ordinary Share. Under this placing, warrants to subscribe for a further 166,666,667 new Ordinary Shares in the Company were issued at an exercise price of 0.7p per warrant, within a 24 month exercise period, potentially raising a further £1,166,666 for the Company at 0.7p, should these warrants be exercised. Subsequent to the placing in September 2017, and following a sharp rise in the Company's share price in October 2017, the Company has at 17 October 2017 received binding warrant conversion notices for the conversion of 271,928,572 warrants at various prices for a total amount of £958,107.
21	Related party transactions The sub licence agreement to share the rental, service costs and other outgoings of an office with Regency Mines plc and Red Rock Resources plc has been effective throughout the year and a fixed fee of £6,000 per quarter, excl. VAT was agreed. The total cost to the Company during the year was £28,800 (2016: £28,800). The current lease arrangement will be terminated at 1 December 2017 and the Company will make alternative office arrangements. 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.
				2017 £			2016 £
	Short-term employee benefits Share based payments Key management personnel			246,088 150,640 26,050			111,000 182,026 -
				422,778			293,026

 

 

22	Financial instruments - Group
	The Group uses financial instruments comprising cash, liquid resources and debtors/creditors that arise from its operations.
	The Group's exposure to currency and liquidity risk is not considered significant. The Group's cash balances are held in Pound Sterling and in Australian dollars, the latter being the currency in which the significant operating expenses are incurred.
	To date the Group has relied upon equity funding to finance operations. The Directors are confident that adequate cash resources exist to finance operations to commercial exploitation, but controls over expenditure are carefully managed.
	The net fair value of financial assets and liabilities approximates the carrying values disclosed in the financial statements.  The currency of the financial assets is as follows:
	Cash and short term deposits	30 June 2017 £		30 June 2016 £
	Sterling	910,588		852,348
	Australian Dollars	19,912		31,130
	At 30 June 2017	930,500		883,478
	The financial assets comprise interest earning bank deposits.

23	Control There is considered to be no ultimate controlling entity.
24	Retained earnings of the parent Company As permitted by section 408 of the Companies Act 2006, the profit and loss account of the parent Company has not been separately presented in these accounts. The parent Company loss for the period was £730,916 (2016 £542,091). The annual report will be made available today on Greatland Gold's website at: http://greatlandgold.com/media/results/. The annual report will also be posted to shareholders in due course.

Enquiries:

Greatland Gold PLC

Callum Baxter/Gervaise Heddle

Tel [phone]

Email:  [e-mail]

www.greatlandgold.com

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady/James Keeshan

Tel [phone]

SI Capital Limited (Broker)

Nick Emerson

Tel  [phone]

Luther Pendragon (Media and Investor Relations)

Harry Chathli/Ana Ribeiro/Alexis Gore

Tel [phone]

Notes for Editors:

Greatland Gold plc is London listed (LON:GGP) natural resource exploration and development company with a current focus on gold and nickel exploration projects. 

The Company has six main projects; four situated in Western Australia and two in Tasmania.  All projects are 100% owned by Greatland or Greatland has the right to take 100% ownership. 

Greatland is seeking to identify large mineral deposits in areas that have not been subject to extensive exploration previously.  It is widely recognised that the next generation of large deposits will come from such under-explored areas and Greatland is applying advanced exploration techniques to investigate a number of carefully selected targets within its focused licence portfolio.

The Company is also actively investigating a range of new opportunities in precious and strategic metals and will update the market on new opportunities as and when appropriate.

 

END

 

 

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