Final Results

RNS Number : 4418R

Greatland Gold PLC

29 October 2019

 

29 October 2019

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

Greatland Gold plc

("Greatland", "the Group" or "the Company")

Final Results

Greatland Gold plc (AIM:GGP), the precious and base metals exploration and development company, announces its financial results for the year ended 30 June 2019.  

Chairman's Statement

I am pleased to report on the Company's audited results for the year ended 30 June 2019.

This year proved to be a period of outstanding progress for Greatland, as highlighted by the excellent results from the Company's second drill campaign at its Havieron gold-copper target in the Paterson region of Western Australia. These results were instrumental in securing a US$65m Farm-In Agreement with Newcrest Operations Limited ("Newcrest"), a wholly-owned subsidiary of Newcrest Mining Limited (ASX:NCM). Newcrest commenced its drilling programme at Havieron in May 2019 and excellent initial drill results have defined a series of higher-grade zones within a broad envelope of mineralisation. We are delighted by these results and by Newcrest's ongoing commitment to the exploration programme at Havieron.

Beyond our success at Havieron, we continued to systematically advance all of our six 100% owned projects, particularly in the highly prospective Paterson province of Western Australia, where we have a strong strategic position and believe there are opportunities to identify tier-one gold-copper deposits. Key developments for the year across Greatland's portfolio of exploration projects are detailed in the Strategic Report, but I would like to briefly note some highlights.

Havieron and the Paterson region

During the year, Greatland's second exploration campaign at Havieron continued to deliver excellent drill results that received wide ranging industry recognition and caught the attention of several major gold miners. The signing of the Farm-in Agreement with Newcrest in March 2019 demonstrates the potential scale of the project. This followed a series of standout results including an upper zone of 103m at 3.5g/t gold and 0.93% copper from 459m and a lower zone of 128m at 7.4g/t gold and 0.54% copper from 660m in our first drill hole of the second drill campaign (HAD005).

Newcrest launched its drilling programme at Havieron in May 2019 and, post year end, announced three sets of excellent results (July, September and October 2019), which further support our view that Havieron has the potential to become a truly significant, underground mining operation. Newcrest has demonstrated its continued commitment to the project by increasing the number of drill rigs at site from two to six, and by meeting the US$5 million minimum expenditure commitment ahead of the expected timetable.

If the trend of positive drill results continues, the Farm-in Agreement with Newcrest gives us the potential to fast track Havieron through to Feasibility Study. The current intention of both parties is that, subject to a positive Feasibility Study outcome, the ore from Havieron will be toll processed at Newcrest's Telfer Gold Mine, which sits approximately 45 kilometres to the west of Havieron, delivering material benefits for both parties including lower upfront capital costs, reduced time to production and first cash flows, and the potential for a significantly higher net present value for the project.

Elsewhere in the Paterson region, we commenced our first drilling campaign at another high-priority target, Black Hills, following positive results from a high-powered, deep-sensing Induced Polarisation survey that displayed potential for near-surface gold mineralisation. At our Paterson Range East licence, we have identified numerous high-priority exploration targets with a similar discrete magnetic signature to Havieron, and we continue to advance our exploration activity at Scallywag, a gold-copper prospect that sits in relatively proximity to Havieron.

Fundraising from new institutional investors to accelerate exploration at our high-priority targets

Greatland successfully raised £2,983,400 of new equity (net of costs) during the year. Subsequent to financial year end, Greatland raised a further £3,968,672 of new equity (net of costs) with funds raised by SI Capital Limited and Numis Securities Limited ("Numis") (acting as introduction agent). In a further indication of our continued progress, Greatland appointed Numis as joint broker and broadened the shareholder base with new institutional and high net worth investors participating in the fundraising completed in August 2019.

While Greatland continues to maintain a disciplined, results-based approach towards capital allocation, the funds raised will give us increased flexibility to accelerate exploration across our key projects, particularly in the Paterson region.

Strengthened Board and operations

The developments at Havieron have taken the Company to a new level, both from a corporate and an operational standpoint. In order to scale up, and to match our ambitions going forward, we successfully strengthened our board and operations team during the year. We were delighted to welcome someone of the calibre of Clive Latcham to the Board, bringing over 30 years of industry experience, including almost 10 years in senior roles with Rio Tinto. His expertise and contacts have proven invaluable since he arrived and I am sure he will continue to be a great addition to Greatland.

As the Company continues to grow and develop, we want to ensure we maintain the highest standards. To that end, we have invested in improving several aspects of Greatland's operations including Greatland's Safety Management System ("SMS") which assists us to systematically achieve and maintain high standards for managing our employees' safety and health.

Looking ahead

Greatland is the only AIM listed company with exposure to the new "gold/copper rush" in the Paterson region of Western Australia. Our focus now is to build on our success and to leverage the knowledge and insights gained at Havieron to prioritise and accelerate exploration at key targets across our Paterson licences. We are also working to continue to systematically advance our wider portfolio of projects.

In addition, we are well positioned to build on our track record of identifying and acquiring underdeveloped opportunities at attractive valuations and we will continue to seek to build shareholder value by acquiring projects that we believe have genuine tier-one potential in safe jurisdictions.

Our progress this year demonstrates our commitment to our five year strategy which remains to maximise risk-adjusted return on shareholders' capital by systematically advancing exploration across our key assets and seeking opportunities to monetise those key exploration assets whether through sale, joint venture or spin-out via initial public offering.

I would like to thank the management team for their tireless efforts and the significant progress made over the last 12 months. I would also like to thank our shareholders for their ongoing support as we continue to look forward with increased confidence.

Alex Borrelli

Chairman

29 October 2019

Strategic Report

Principal activities, strategy and business model

The principal activity of the Group is to explore for and develop natural resources, with a focus on gold. The Board seeks to increase shareholder value by the systematic evaluation of its existing resource assets, and by acquiring exploration and development projects in underexplored areas.

The Group's strategy and business model is developed by the Chief Executive Officer and is approved by the Board.  The executive directors who report to the Board are responsible for implementing the strategy and managing the business.

The Group's primary strategy is to advance projects that have potential for the discovery of large mineralised systems (typically considered to be in excess of one million ounces of gold) through the various stages of exploration and development with a view to monetising at least one or more of those projects, whether through an outright sale, joint venture, or spin-out via initial public offering, within a three to five year period.

Business development and performance

During the year ended 30 June 2019, Greatland successfully advanced exploration across its portfolio of projects (six projects, 100% owned by Greatland), as detailed in the "Review of key developments by project" section below. Most notably, Greatland's second drilling campaign at its 100%-owned Havieron gold-copper project in Western Australia returned excellent results including 103m at 3.5g/t gold and 0.93% copper from 459m and 128m at 7.4g/t gold and 0.54% copper from 660m (HAD005), 179.1m at 1.4g/t gold and 0.47% copper from 547.9m (HAD006) and  67m at 2.0g/t gold and 0.91% copper from 426m (HAD008).

In March 2019, Greatland signed a Farm-in Agreement with Newcrest Operations Limited ("Newcrest"), a wholly-owned subsidiary of Newcrest Mining Limited (ASX:NCM), to explore and develop Greatland's Havieron project. Newcrest has the right to acquire up to a 70% interest in a 12-block area within E45/4701 that covers the Havieron target by spending up to US$65m.

The Group's financial position was further strengthened during the year by the successful raise of £2,983,400 of new equity (net of costs). The Group's cash deposits stood at £2,755,998 at 30 June 2019 (compared to £3,597,101 at 30 June 2018). These funds will be used to accelerate exploration across our key exploration projects, particularly in the Paterson region.

Review of key developments by project

Paterson project (Western Australia), 100% owned

The Paterson project, comprising the Havieron, Paterson Range East and Black Hills licences, is located in the Paterson region of northern Western Australia. The three licences collectively cover more than 385 square kilometres of ground which is considered prospective for intrusion related gold-copper systems and Telfer style gold deposits.

In September 2018, Greatland commenced its second drill programme at Havieron, which was designed to further determine the extent and orientation of the high-grade zone of mineralisation at Havieron that was detected in Greatland's maiden drilling campaign. Highlights of the drill results from the second campaign included 103m at 3.5g/t gold and 0.93% copper from 459m and 128m at 7.4g/t gold and 0.54% copper from 660m (HAD005), 179.1m at 1.4g/t gold and 0.47% copper from 547.9m (HAD006) and  67m at 2.0g/t gold and 0.91% copper from 426m (HAD008)

The excellent results from the second drill campaign at Havieron were fundamental in securing a US$65m Farm-In Agreement with Newcrest in early 2019. Newcrest subsequently began drilling at the Havieron target in May 2019. Initial results from Newcrest's ongoing drilling programme at Havieron have defined up to four higher-grade zones within a broad mineralised envelope and have extended the limits of known mineralisation. Best results from Newcrest's drilling to date include 52m at 7.0g/t gold and 0.17% copper from 1122m (HAD006 extension), 139.4m at 2.9g/t gold and 0.39% copper from 865.7m (HAD012), 244.6m at 2.0g/t gold and 0.4% copper from 450m (HAD014) and 96.4m at 4.5g/t gold and 0.14% copper from 916.4m (HAD018).

During the financial year, Greatland continued to conduct systematic exploration campaigns across its 100%-owned Paterson licences. At the Scallywag target (10 kilometres west of Havieron on E45/4701), Greatland conducted a Mobile Metal Ion ("MMI") survey which highlighted a multi-element anomalous zone over 6km in strike length. Ground gravity and induced polarisation (IP) geophysics survey are currently being conducted over the Scallywag target area and, together with 3D modelling and detailed aeromagnetic data, will be used to help establish drill targets.

In June 2018, Greatland commenced its first field exploration campaign at Black Hills (E45/4512)  which successfully identified multiple gold nuggets at surface and established a strike length of high-grade gold mineralisation at surface of up to 800 metres. Subsequently, two Induced Polarisation ("IP") surveys were carried out. The first IP survey, which commenced in August 2018, delineated a chargeability anomaly at the Saddle Reefs prospect approximately 1 kilometre long. The second IP survey, carried out in June/July 2019, extended that chargeability anomaly to over 1.4 kilometres in length, part of which is spatially coincident with the surface gold mineralisation. A drill programme was subsequently designed to test the 1.4km anomaly which commenced in July 2019. Initial results from the drilling programme confirmed the presence of gold mineralisation at Black Hills with best results including 56m at 0.56g/t gold from 68m (SRRC012).

During the period Greatland commenced work on a new, detailed, low level airborne magnetic survey to cover the entire Paterson Range East licence. The Paterson Range East licence is 25km north of the Havieron prospect and covers 224 square kilometres of Proterozoic basement rocks prospective for Havieron style gold-copper mineralisation. Comprising approximately 5,200-line kilometres at a line spacing of 50m the new survey significantly increased the resolution of approximately twenty magnetic targets previously identified across the licence and allowed for numerous high-priority targets, with a similar magnetic signature to Havieron, to be identified and defined.

Firetower project (Tasmania), 100% owned

The Firetower project is located in central north Tasmania, Australia, and covers an area of 62 square kilometres. Historic drilling at the Firetower prospect has identified significant gold mineralisation from surface (up to 30g/t).

A comprehensive IP survey carried out in 2018 highlighted a large chargeability response, approximately 1,000 metres long, traversing east-west across the Firetower prospect, which is open to the east and up to depths of 400 metres. In June 2019, the Company commenced a drilling programme at Firetower which included plans to carry out over 2,000m of drilling on five north-south traverses to test the chargeability anomaly at Firetower, with additional drilling to test the previously undrilled areas at Firetower East highlighted by the IP survey. Initial results from this drilling programme confirmed the presence of broad widths of gold mineralisation at the Firetower prospect, with best results including 54.5m at 1.36g/t gold from surface (0m), including 5m at 5.41g.t gold from 45m (hole 2019FTD001).

Panorama project (Western Australia), 100% owned

The Panorama project consists of three adjoining exploration licences, covering 155 square kilometres, located in the Pilbara region of Western Australia, in an area that is considered to be highly prospective for gold and cobalt.

During the period, Greatland continued field exploration at Panorama with field reconnaissance and surface geochemical work. Numerous gold nuggets were found in thin soil cover extending the strike by nearly 3km to 6.1km over Panorama North (E45/4936). Further field exploration was conducted and a detailed, low-level aeromagnetic survey covering the three licences commenced in July 2019.

Ernest Giles project (Western Australia), 100% owned

The Ernest Giles project is located in central Western Australia, covering an area of approximately 1,370 square kilometres with over 180km of strike of rocks prospective for gold and nickel. The eastern Yilgarn Craton is one of the most highly mineralised areas in Western Australia and is considered prospective for large gold deposits.

During the period, Greatland carried out a reverse circulation ("RC") drilling programme which included twenty five drill holes at the Meadows area, two drill holes at the Empress area, two drill holes at the Wishbone area and one drill hole at the Carnegie area for a total of over 8,200m of drilling. Results from the drilling campaign at Meadows extended the two previously identified large zones of gold mineralization: a Western zone with a strike of approximately 6.2km and open to the north, and an Eastern zone with a strike of approximately 2.5km. The campaign also detected gold, silver and copper mineralisation at the Wishbone area.

A comprehensive review of all data for the Ernest Giles project was carried out later in the year. The Board decided that Greatland should focus on high priority targets within the project and, consequently, both the Carnegie (E38/2882) and Empress North (E38/3228) licences were relinquished, thereby enabling work to be concentrated on higher priority targets within the retained project licences.

Warrentinna project (Tasmania), 100% owned

The Warrentinna project is located 60 kilometres north east of Launceston in north eastern Tasmania and covers an area of 37 square kilometres with 15 kilometres of strike prospective for gold. During the period, Greatland undertook the acquisition of LIDAR data with resulting generation of digital elevation models (DEM) over the licence which will aid in planned exploration on the ground.

Bromus project (Western Australia), 100% owned

The Bromus project is located 25 kilometres south west of Norseman in the southern Yilgarn region of Western Australia. The Bromus project covers 52 square kilometres of under-explored greenstone and intrusive granites of the Archean Yilgarn Block at the southern end of the Kalgoorlie-Norseman belt. During the period, Greatland undertook an aeromagnetic survey of the tenement allowing high quality digital elevation and geophysics data to be obtained. During the period, Greatland made an application for an additional exploration licence (E63/1953) covering 32 square kilometres which is considered prospective for gold, contiguous to the north and west of Bromus, which has subsequently been granted.

Further details regarding exploration activities during the year can be found on the Company's website at www.greatlandgold.com.

Gervaise Heddle

Chief Executive Officer

29 October 2019

Enquiries:

 

Greatland Gold PLC

Gervaise Heddle/Callum Baxter

Tel: [phone]

Email:  [e-mail]

www.greatlandgold.com

SPARK Advisory Partners Limited (Nominated Adviser)

Andrew Emmott/James Keeshan

Tel: [phone]

SI Capital Limited (Joint Broker)

Nick Emerson/Alan Gunn

Tel:  [phone]

Numis Securities Limited (Joint Broker)

Matthew Hasson/John Prior/Alamgir Ahmed

Tel: [phone]

Luther Pendragon (Media and Investor Relations)

Harry Chathli/Alexis Gore/Joe Quinlan

Tel: [phone]

Notes for Editors:

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

The Company has six main projects; four situated in Western Australia and two in Tasmania. All projects are 100% owned by Greatland.

In March 2019, Greatland signed a Farm-in Agreement with Newcrest Operations Limited, a wholly-owned subsidiary of Newcrest Mining Limited (ASX:NCM), to explore and develop Greatland's Havieron gold-copper project in the Paterson region of Western Australia. Newcrest has the right to acquire up to a 70% interest in a 12-block area within E45/4701 that covers the Havieron target by spending up to US$65m.

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

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

 

Group statement of comprehensive income

for the year ended 30 June 2019

	Notes	Year ended  30 June 2019 £		Year ended  30 June 2018 £
Revenue	2	-		-
Exploration costs		(2,309,760)		(1,021,493)
Administrative expenses		(888,661)		(811,359)
Depreciation		(37,131)		(7,584)
Impairment cost		(18,450)		-
Operating loss		(3,254,002)		(1,840,436)
Net finance costs/income	3	(10,305)		3,891
Loss before taxation	4	(3,264,307)		(1,836,545)
Income tax expense	5	-		-
Loss for the year		(3,264,307)		(1,836,545)
Other comprehensive income Exchange differences on translation of foreign operations		(52,730)		(74,867)
Other comprehensive income for the year net of taxation		(52,730)		(74,867)
Total comprehensive income for the year attributable to equity holders of the parent company		(3,317,037)		(1,911,412)
Loss per share - basic and diluted	9	(0.10) pence		(0.07) pence

All operations are considered to be continuing.

 

Group balance sheet

as at 30 June 2019

	Note	30 June 2019		30 June 2018
				Re-stated
		£	£	£	£
ASSETS
Non-current assets Tangible assets	10	103,114		41,877
Intangible assets	11	2,016,783		1,233,648
			2,119,897		1,275,525
Current assets Cash and cash equivalents Trade and other receivables	18 13	2,755,998 77,480		3,597,101 79,061
Total current assets			2,833,478		3,676,162
TOTAL ASSETS			4,953,375		4,951,687
LIABILITIES
Current liabilities Trade and other payables	14	(630,369)		(685,322)
TOTAL LIABILITIES			(630,369)		(685,322)
NET ASSETS			4,323,006		4,266,365
EQUITY Called-up share capital Share premium reserve Share based payment reserve	15 16	3,323,420 12,554,173 349,606		3,002,256 9,749,891 243,472
Retained earnings		(12,072,653)		(8,950,444)
Other reserves		168,460		221,190
TOTAL EQUITY			4,323,006		4,266,365

 

Group statement of changes in equity

for the year ended 30 June 2019

 

	Share capital (restated)	Share premium account (restated)	Share based payment reserve	Retained earnings	Other reserves	Total
	£	£	£	£	£	£
As at 30 June 2017	1,506,955	6,627,270	328,060	(7,223,363)	296,057	1,534,979
Loss for the year	-	-	-	(1,836,545)	-	(1,836,545)
Currency translation differences	-	-	-	-	(74,867)	(74,867)
Total comprehensive income	-	-	-	(1,836,545)	(74,867)	(1,911,412)
Share option charge	-	-	24,876	-	-	24,876
Transfer on exercise of options and warrants	-	-	(109,464)	109,464	-	-
Share capital issued	101,731	4,591,658	-	-	-	4,693,389
Reclassification of share capital	1,393,570	(1,393,570)	-	-	-	-
Cost of share issue	-	(75,467)	-	-	-	(75,467)
Total contributions by and distributions to owners of the Company	1,495,301	3,122,621	(84,588)	109,464	-	4,642,798
As at 30 June 2018	3,002,256	9,749,891	243,472	(8,950,444)	221,190	4,266,365

Loss for the year	-	-	-	(3,264,307)	-	(3,264,307)
Currency translation differences	-	-	-	-	(52,730)	(52,730)
Total comprehensive income	-	-	-	(3,264,307)	(52,730)	(3,317,037)
Share option charge	-	-	248,232	-	-	248,232
Transfer on exercise of options and warrants	-	-	(142,098)	142,098	-	-
Share capital issued	321,164	2,936,782	-	-	-	3,257,946
Cost of share issue	-	(132,500)	-	-	-	(132,500)
Total contributions by and distributions to owners of the Company	321,164	2,804,282	106,134	142,098	-	3,373,678
As at 30 June 2019	3,323,420	12,554,173	349,606	(12,072,653)	168,460	4,323,006

Note:

The brought forward share capital and share premium balances from 30 June 2017 and 30 June 2018 have been restated by £415,358 and £1,393,570 to £3,002,256 and £9,749,891 respectively. These restatements are a reclassification between the value of share capital and share premium due to an incorrect calculation of nominal share capital. The total equity remains unchanged for both brought forward periods.

 

Group statement of changes in equity

for the year ended 30 June 2019

Other reserves	Merger reserve	Foreign currency translation reserve	Total other reserves
	£	£	£
As at 30 June 2017	225,000	71,057	296,057
Currency translation differences	-	(74,867)	(74,867)
Total comprehensive income	-	(74,867)	(74,867)
As at 30 June 2018	225,000	(3,810)	221,190

Currency translation differences	-	(52,730)	(52,730)
Total comprehensive income	-	(52,730)	(52,730)
As at 30 June 2019	225,000	(56,540)	168,460

 

Company balance sheet

as at 30 June 2019

	Note	30 June 2019		30 June 2018
				Re-stated
		£	£	£	£
ASSETS
Non-current assets Investment in subsidiary	12		50,000		50,000
Current assets Cash and cash equivalents Trade and other receivables	18 13	2,247,271 6,624,946		2,753,575 3,488,649
Total Current Assets			8,872,217		6,242,224
TOTAL ASSETS			8,922,217		6,292,224
LIABILITIES
Current Liabilities Trade and other payables	14	(255,510)		(69,108)
TOTAL LIABILITIES			(255,510)		(69,108)
NET ASSETS			8,666,707		6,223,116
EQUITY Called-up share capital Share premium reserve Share based payment reserve	15 16	3,323,420 12,554,173 349,606		3,002,256 9,749,891 243,472
Merger reserve		225,000		225,000
Retained earnings		(7,785,492)		(6,997,503)
TOTAL EQUITY			8,666,707		6,223,116

 

Company statement of changes in equity

for the year ended 30 June 2019

 

	Called up share capital (restated)	Share premium account (restated)	Share based payment reserve	Retained earnings	Merger reserve	Total
	£	£	£	£	£	£
As at 30 June 2017	1,506,955	6,627,270	328,060	(6,532,249)	225,000	2,155,036
Loss for the year	-	-	-	(574,718)	-	(574,718)
Total comprehensive income	-	-	-	(574,718)	-	(574,718)
Share option charge	-	-	24,876	-	-	24,876
Transfer on exercise of options and warrants	-	-	(109,464)	109,464	-	-
Share capital issued	101,731	4,591,658	-	-	-	4,693,389
Reclassification of share capital	1,393,570	(1,393,570)	-	-	-	-
Cost of share issue	-	(75,467)	-	-	-	(75,467)
Total contributions by and distributions to owners of the Company	1,495,301	3,122,621	(84,588)	109,464	-	4,642,798
As at 30 June 2018	3,002,256	9,749,891	243,472	(6,997,503)	225,000	6,223,116
Loss for the year	-	-	-	(930,087)	-	(930,087)
Total comprehensive income	-	-	-	(930,087)	-	(930,087)
Share option charge	-	-	248,232	-	-	248,232
Transfer on exercise of options and warrants	-	-	(142,098)	142,098	-	-
Share capital issued	321,164	2,936,782	-	-	-	3,257,946
Cost of share issue	-	(132,500)	-	-	-	(132,500)
Total contributions by and distributions to owners of the Company	321,164	2,804,282	106,134	142,098	-	3,373,678
As at 30 June 2019	3,323,420	12,554,173	349,606	(7,785,492)	225,000	8,666,707

 

Note:

The brought forward share capital and share premium balances from 30 June 2017 and 30 June 2018 have been restated by £415,358 and £1,393,570 to £3,002,301 and £9,749,891 respectively. These restatements are a reclassification between the value of share capital and share premium due to an incorrect calculation of nominal share capital. The total equity remains unchanged for both brought forward periods.

 

Group cash flow statement

for the year ended 30 June 2019

	Notes	Year ended 30 June 2019 £		Year ended 30 June 2018 £
Cash flows from operating activities Operating loss Decrease/(Increase) in trade & other receivables (Decrease)/Increase in trade & other payables Depreciation Impairment charge Share option charge		(3,254,001) 1,581 (70,454) 37,131 18,450 248,232		(1,840,436) (27,268) 566,494 7,584 - 24,876
Net (decrease) in cash and cash equivalents from operating activities		(3,019,061)		(1,268,750)
Cash flows from investing activities Interest received Payments to acquire intangible assets		5,195  (688,517)		3,891  (361,711)
Payments to acquire tangible assets		(98,774)		(49,267)
Net cash (out)flows used in investing activities		(782,098)		(407,087)
Cash flows from financing activities Proceeds from issue of shares Transaction costs of issue of shares		3,115,900 (132,500)		4,443,988 (75,467)
Net cash inflows from financing activities		2,983,400		4,368,521
Net (decrease)/increase in cash and cash equivalents	18	(817,759)		2,692,684
Cash and cash equivalents at the beginning of period		3,597,101		930,500
Exchange (loss) on cash and cash equivalents		(23,344)		(26,083)
Cash and cash equivalents at end of period	18	2,755,998		3,597,101

 

During the year shares in the Company totalling £142,045 (2018: £249,401) were issued for the acquisition of intangible assets (see note 15). This amount represents material non-cash flows and is excluded from the cash flow statement.

 

Company cash flow statement

for the year ended 30 June 2019

	Notes	Year ended 30 June 2019 £		Year ended 30 June 2018 £
Cash flows from operating activities Operating loss Decrease in trade & other receivables Increase/(Decrease in trade & other payables Share option charge		(914,836) 5,749 170,901 248,232		(574,818) 4,163 (29,855) 24,876
Net (decrease) in cash and cash equivalents from operations		(489,954)		(575,634)
Cash flows from investing activities Interest received Loans to subsidiary		250 (3,000,000)		100 (1,950,000)
Net cash (outflows) used in investing activities		(2,999,750)		(1,949,900)
Cash flows from financing activities Proceeds from issue of shares Transaction costs of issue of shares		3,115,900 (132,500)		4,443,988 (75,467)
Net cash flows from financing activities		2,983,400		4,368,521
Net (decrease)/increase in cash and cash equivalents	18	(506,304)		1,842,987
Cash and cash equivalents at the beginning of period		2,753,575		910,588
Cash and cash equivalents at end of period	18	2,247,271		2,753,575

During the year shares in the Company totalling £142,045 (2018: £249,401) were issued for the acquisition of intangible assets (see note 15). This amount represents material non-cash flows and is excluded from the cash flow statement.

 

Notes to financial statements

for the year ended 30 June 2019

1	Principal accounting policies
1.1	Authorisation of financial statements and statement of compliance with IFRS The group financial statements of Greatland Gold plc for the year ended 30 June 2019 were authorised for issue by the board on 29 October 2019 and the balance sheets signed on the board's behalf by Mr Gervaise Heddle and Mr Alex Borrelli. Greatland Gold plc is a public limited company incorporated and domiciled in England and Wales. The Company's ordinary shares are traded on AIM. The Group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The Company's financial statements have been prepared in accordance with IFRS as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006. The principal accounting policies adopted by the Group and Company are set out below. New standards, amendments and interpretations adopted by the Group The Group has applied the following standards and amendments for the first time for their annual reporting period commencing 1 July 2018: - IFRS 9 Financial Instruments - IFRS 15 Revenue from Contracts with Customers No retrospective adjustments were required following the adoption of IFRS 9 and IFRS 15. On 1 July 2018 (the date of initial application of IFRS 9), the Group's management assessed which business models apply to the financial assets held by the Group and classified its financial instruments into the appropriate IFRS 9 categories. No reclassifications were required. New standards, amendments and interpretations not yet adopted At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been applied in these financial statements, were in issue but not yet effective for the year presented: - IFRS 16 in respect of Leases which will be effective for accounting periods beginning on or after 1 January 2019. - IFRS 17 Insurance Contracts (effective date 1 January 2021). There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Group.
1.2	Significant accounting judgments, estimates and assumptions
	Significant accounting estimates and assumptions The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are: Impairment of goodwill and intangibles with indefinite useful lives The Group determines whether goodwill and intangibles with indefinite useful lives are impaired at least on an annual basis. This requires an estimation of the recoverable amount of the cash-generating units to which the goodwill and intangibles with indefinite useful lives are allocated. Share-based payment transactions The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined using a Black-Scholes model.
1.3	Basis of preparation The consolidated financial statements of Greatland Gold plc and its subsidiary have been prepared in accordance with International Reporting Standards (IFRS) as adopted for use in the European Union. The consolidated financial statements have been prepared on the historical cost basis, except for the measurement to fair value of assets and financial instruments as described in the accounting policies below, and on a going concern basis. Going Concern The consolidated entity has incurred a loss before tax of £3,264,307 for the year ended 30 June 2019, and had a net cash outflow of £3,801,159 from operating and investing activities. At that date there were net current assets of £2,203,109. The loss resulted almost entirely from exploration costs and associated administrative related costs. The Directors are confident in the Company's ability to raise new finance from stock markets if this is required during 2020 and the Group has demonstrated a consistent ability to do so. This includes a share issuance of 225,813,513 placing shares for gross proceeds of £4,177,550 as announced by the Company on 12 August 2019.
	The Group's cash flow forecast for the 12 months ending 31 October 2020 highlights adequate funding at current levels of projected expenditure to last throughout this period. The Board of Directors are confident that sufficient funding is in place to meet all its operational and exploration commitments over the next twelve months and to remain cash positive for the whole period. Given the Group's current positive cash position and its ability to raise new capital the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the annual report and accounts.
1.4	Basis of consolidation The consolidated accounts combine the accounts of the Company and its sole subsidiary, Greatland Pty Ltd, using the purchase method of accounting. In the Company's balance sheet the investment in Greatland Pty Ltd includes the nominal value of shares issued together with the cash element of the consideration. As required by the Companies Act 2006, no premium was recognised on the share issue. The difference between nominal and fair value of the shares issued was credited to the merger reserve.
1.5	Goodwill Goodwill on acquisition is capitalised and shown within fixed assets. Positive goodwill is subject to annual impairment review with movements charged in the income statement. Negative goodwill is reassessed by the Directors and attributed to the relevant assets to which it relates.
1.6	Non-current asset investments Investments in subsidiary companies are classified as non-current assets and included in the balance sheet of the Company at cost at the date of acquisition irrespective of the application of merger relief under the Companies Act.
1.7	Cash and cash equivalents Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
1.8	Income tax and deferred taxation Current tax assets and liabilities for the current and prior periods are measured as the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted by the balance sheet date. Full provision is made for deferred taxation resulting from timing differences which have arisen but not reversed at the balance sheet date.
1.9	Tangible fixed assets Fixed assets are depreciated on a straight-line basis at annual rates that will reduce the book amounts to estimated residual values over their anticipated useful lives as follows: ·      Motor vehicles:  20% per annum ·      Equipment:  7% per annum
1.10	Foreign currencies Both the functional and presentational currency of Greatland Gold plc is sterling (£). Each group entity determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. The functional currency of the foreign subsidiary, Greatland Pty Limited, is Australian Dollars (A$). Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.  Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the income statement. On consolidation of a foreign operation, assets and liabilities are translated at the balance sheet rates, income and expenses are translated at rates ruling at the transaction date. Exchange differences on consolidation are taken to the income statement.
1.11	Other income The Group had no other income during the periods ending 30 June 2019 and 30 June 2018. Previous years consisted of a grant from the state government of Western Australia.  Government grants are accounted for on a receipts basis.
1.12	Finance costs/revenue Borrowing costs are recognised as an expense when incurred. Finance revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.
1.13	Trade and other receivables Trade receivables, which generally have 30 day terms, are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. An allowance for doubtful debts is made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off when identified.
1.14	Financial instruments The Group's financial instruments, other than its investments, comprise cash and items arising directly from its operation such as trade debtors and trade creditors. The Group has an overseas subsidiary in Australia whose expenses are denominated in Australian Dollars. Market price risk is inherent in the Group's activities and is accepted as such. There is no material difference between the book value and fair value of the Group's cash.
1.15	Trade and other payables Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services.
1.16	Earnings per share Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element. Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for: ·      costs of servicing equity (other than dividends) and preference share dividends; ·      the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and ·      other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.
1.17	Exploration and development expenditure Exploration and development costs include expenditure on prospects at an exploratory stage. These costs include the cost of acquisition, exploration, determination of recoverable reserves, economic feasibility studies and all technical and administrative overheads directly associated with those projects. A substantial proportion of these costs are carried forward in the balance sheet as intangible fixed assets. Recoupment of capitalised exploration and development costs is dependent upon successful development and commercial exploitation of each area of interest and are amortised over the expected commercial life of each area once production commences. The Company adopts the 'area of interest' method of accounting whereby a substantial proportion of exploration and development costs relating to an area of interest are capitalised and carried forward until abandoned.  In the event that an area of interest is abandoned, or if the Directors consider the expenditure to be of no value, accumulated exploration costs are written off in the financial year in which the decision is made.  All expenditure incurred prior to approval of an application is expensed with the exception of refundable rent which is raised as a debtor. Impairment reviews are carried out regularly by the Directors of the Company. Where a project is abandoned or is considered not to be of commercial value to the Company, the related costs are written off or provisions are made.
1.18	Share based payments The fair value of options granted to directors and others in respect of services provided is recognised as an expense in the profit and loss account with a corresponding increase in equity reserves - the share based payment reserve. On exercise or cancellation of share options, the proportion of the share based payment reserve relevant to those options is transferred to the profit and loss account reserve. On exercise, equity is also increased by the amount of the proceeds received. The fair value is measured at grant date and the charge is spread over the relevant vesting period. The fair value of options is calculated using the Black-Scholes model taking into account the terms and conditions upon which the options were granted. Vesting conditions are non-market and there are no market vesting conditions. The exercise price is fixed at the date of grant and no compensation is due at the date of grant.
2		Revenue and segmental analysis
		The Group's prime business segment is mineral exploration.  The Group operates within two geographical segments, the United Kingdom and Australia. The UK sector consists of the parent company which provides administrative and management services to the subsidiary undertaking based in Australia. The following tables present revenue and loss information and certain asset and liability information by geographical segments:
			UK	Australia	Total
		Year ended 30 June 2019	£	£	£
		Revenue Total segment revenue	-	-	-
		Total consolidated revenue			-
		Result Segment results	(914,837)	(2,339,165)	(3,254,002)
		Loss before tax and finance costs Interest receivable Interest payable Loss on disposal of investments			(3,254,002) 5,195 (15,500) -
		Loss before taxation Taxation expense			(3,264,307) -
		Loss after taxation			(3,264,307)

	As at 30 June 2019	UK £	Australia £	Total £
	Assets and liabilities
	Segment assets	2,275,468	2,677,907	4,953,375
	Total assets			4,953,375
	Segment liabilities	(255,510)	(374,859)	(630,369)
	Total liabilities			(630,369)
	Other segment information: Capital expenditure	-	929,338	929,338
	Depreciation	-	37,131	37,131
	Impairment	-	18,450	18,450

 

		UK	Australia	Total
	Year ended 30 June 2018	£	£	£
	Revenue Total segment revenue	-	-	-
	Total consolidated revenue			-
	Result Segment results	(574,818)	(1,265,618)	(1,840,436)
	Loss before tax and finance costs Interest receivable			(1,840,436) 3,891
	Loss on disposal of investments			-
	Loss before taxation Taxation expense			(1,836,545) -
	Loss after taxation			(1,836,545)

	As at 30 June 2018	UK £	Australia £	Total £
	Assets and liabilities
	Segment assets	2,787,522	2,164,165	4,951,687
	Total assets			4,951,687
	Segment liabilities	(69,108)	(616,214)	(685,322)
	Total liabilities			(685,322)
	Other segment information Capital expenditure	-	660,380	660,380
	Depreciation	-	7,584	7,584

3	Net finance costs	2019 £			2018 £
	Finance revenue Finance costs	5,195 (15,500)			3,891 -
		(10,305)			3,891
4	Loss on ordinary activities before taxation		2019 £					2018 £
	Loss on ordinary activities before taxation is stated after charging: Auditors' remuneration - audit Depreciation Impairment charge Directors' emoluments		16,200 37,131 18,450 962,406					15,000 7,584 - 611,327
	Auditors' remuneration for audit services above excludes AU$7,814 (2018: AU$5,100) charged by Charles Foti Business Services (Australia) relating to the audit of the subsidiary company.
5	Taxation
				2019			2018
	Analysis of charge in year			£			£
	Tax on profit on ordinary activities			-			-

	Factors affecting tax charge for year
	The differences between the tax assessed for the year and the standard rate of corporation tax are explained as follows:
		2019	2018
		£	£
	Loss on ordinary activities before tax	(3,264,307)	(1,836,545)
	Standard rate of corporation tax in the UK	19%	19%
		£	£
	Loss on ordinary activities multiplied by the standard rate of corporation tax	(620,218)	(348,944)
	Effects of:
	Expenses not deductible for tax: Share option charge	47,164	4,726
	Future tax benefit not brought to account	573,054	344,218
	Income tax expense	-	-
	No deferred tax asset has been recognised because there is insufficient evidence of the timing of suitable future profits against which they can be recovered.

6	Employee information (excluding directors) Staff costs comprised:	2019 £	2018 £
	Wages and salaries	195,139	103,171
	Bonus	23,798	27,285
	Pension Share option charge	15,220 58,471	5,899 5,654
		292,628	142,009
		Number	Number
	Exploration	3	2

Of the total Staff costs in the year, £229,773 (2018: £115,628) arises from work on the Exploration Properties and has been expensed to the Income Statement as exploration costs.

7	Dividends     No dividends were paid or proposed by the Directors. (2018: £Nil)

8	Directors' emoluments			2019 £	2018 £
	Directors' remuneration Share option charge			787,116 175,290	592,104 19,223
				962,406	611,327
		Directors' salary	Pension /Superannuation	Bonus	Total
	2019	£	£	£	£
	Executive directors Callum Baxter Gervaise Heddle Non-executive directors Alex Borrelli Clive Latcham (appointed 15 October 2018)	166,944 166,944 40,000 21,319	30,826 30,826 785 -	144,736 144,736 20,000 20,000	342,506 342,506 60,785 41,319
		395,207	62,437	329,472	787,116

Of the total Directors' remuneration disclosed above in the income statement, 75% (or £256,879) for Callum Baxter and 25% (or £85,626) for Gervaise Heddle has been allocated to exploration costs in the income statement for the year.

See Note 16 for share options granted during the year.

Also, see note 22 for related party transactions.

	Directors' salary	Pension /Superannuation	Bonus	Total
2018	£	£	£	£
Executive directors Callum Baxter Gervaise Heddle Non-executive directors Alex Borrelli Michael McNeilly (resigned 25 October 2017)	160,434 160,434 38,000 7,548	14,204 14,204 406 -	92,187 92,187 12,500 -	266,825 266,825 50,906 7,548
	366,416	28,814	196,874	592,104

Of the total Directors' remuneration disclosed above in the income statement, 75% (or £200,118) for Callum Baxter and 25% (or £66,706) for Gervaise Heddle has been allocated to exploration costs in the income statement for the year.

See Note 16 for share options granted during the year.

Also, see note 22 for related party transactions.

9	Loss per share
	The basic loss per share is derived by dividing the loss for the period attributable to ordinary shareholders by the weighted average number of shares in issue.
		2019 £		2018 £
	Loss for the period	(3,264,307)		(1,836,545)
	Weighted average number of Ordinary shares of £0.001 in issue Loss per share - basic	3,252,941,141 (0.10) pence		2,773,225,653 (0.07) pence
	Weighted average number of Ordinary shares of £0.001 in issue inclusive of outstanding options	3,252,941,141		2,773,225,653
	As inclusion of the potential Ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive; as such, a diluted earnings per share is not included.

10	Tangible fixed assets - Group
		Motor vehicle	Equipment	Total
	Cost	£	£	£
	At 30 June 2018	-	49,267	49,267
	Disposals during the period Additions during the period	- 33,310	- 65,464	- 98,774
	Foreign exchange rate fluctuations	-	(868)	(868)
	At 30 June 2019	33,310	113,863	147,173
	Depreciation
	At 30 June 2018 Disposals during the period	- -	7,390 -	7,390 -
	Charge for the period	5,174	31,957	37,131
	Foreign exchange rate fluctuations	(48)	(414)	(462)
	At 30 June 2019	5,126	38,933	44,059
	Net book value
	At 30 June 2019	28,184	74,930	103,114
	At 30 June 2018	-	41,877	41,877

 

			Motor vehicle				Equipment			Total
	Cost		£				£			£
	At 30 June 2017		-				-			-
	Disposals during the period Additions during the period		- -				- 49,267			- 49,267
	Foreign exchange rate fluctuations		-				-			-
	At 30 June 2018		-				49,267			49,267
	Depreciation
	At 30 June 2017 Disposals during the period		- -				- -			- -
	Charge for the period		-				7,584			7,584
	Foreign exchange rate fluctuations		-				(194)			(194)
	At 30 June 2018		-				7,390			7,390
	Net book value
	At 30 June 2018		-				41,877			41,877
	At 30 June 2017		-				-			-
11	Intangible non-current assets - Group	2019 £						2018 £
	Exploration properties
	At 30 June 2018			1,864,442					1,302,309
	Additions during the period			830,563					611,112
	Impairment during the period			(18,450)					-
	Foreign exchange rate fluctuations			(28,978)					(48,979)
	At 30 June 2019			2,647,577					1,864,442
	Impairment
	At 30 June 2018			(630,794)					(630,794)
	Charge for the period			-					-
	Foreign exchange rate fluctuations			-					-
	At 30 June 2019			(630,794)					(630,794)
	Net book amount
	At 30 June 2019			2,016,783					1,233,648
	At 30 June 2018			1,233,648					671,515

 

                         Impairment review

As at 30 June 2019, the Directors carried out an impairment review of the exploration properties and considered an impairment charge was not required (2018: £nil). However, during the year £2,295,560 (2018: £1,021,493) of exploration related costs have been charged directly to the Income Statement as these costs were deemed non-beneficial to the future value of the exploration properties. Costs directly related to exploration programmes that, in the opinion of the Directors, are considered to add value to the respective exploration properties are capitalised.

12	Non-current asset investments in subsidiary - Company		£
	Cost
	At 30 June 2018		50,000
	Impairment of investment		-
	At 30 June 2019		50,000
	Net book amount
	At 30 June 2019		50,000
	At 30 June 2018		50,000

	The parent company of the Group holds more than 20% of the share capital of the following company:
	Company	Country of registration	Class	Proportion held	Nature of business
	Greatland Pty Ltd	Australia	Common	100%	Mineral exploration

13	Trade and other receivables	Group		Company
		2019 £	2018 £	2019 £	2018 £
	Current trade and other receivables: Prepayments Other debtors Loans due from subsidiary	51,104 26,376 -	34,058 45,003 -	28,198 - 6,596,748	33,946 - 3,454,703
	Total	77,480	79,061	6,624,946	3,488,649
	The loan due from subsidiary was interest free throughout the period and has no fixed repayment date. No provision £nil (2018: £nil) has been made against this loan.

14	Trade and other payables	Group		Company
		2019 £	2018 £	2019 £	2018 £
	Current trade and other payables: Trade creditors Accruals Salaries and Social Security Employee Benefits	356,282 209,016 10,577 54,494	615,818 44,050 - 25,454	35,010 209,016 10,577 907	24,786 44,050 - 272
	Total	630,369	685,322	255,510	69,108

15

Share capital Called up, allotted, issued and fully paid Number £ As previously stated at 30 June 2018, Ordinary shares of £0.001 each 3,002,256,509 1,193,328 Adjustments to share capital Correction at 30/06/17 - 415,358 Correction at 30/06/18 - 1,393,570 Restated at 30 June 2018, Ordinary shares of £0.001 each 3,002,256,509 3,002,256 Issued during the year On 27 July 2018, at a price of £0.0125, for cash 212,000,000 212,000 On 03 September 2018, at a price of £0.0125, for drilling services (DDH1) 11,363,636 11,364 On 14 January 2019, at a price of £0.02, for cash   7,300,000 7,300 On 09 April 2019, at a price of £0.005, for cash   25,000,000 25,000 On 09 April 2019, at a price of £0.002, for cash   25,000,000 25,000 On 09 April 2019, at a price of £0.0028, for cash 33,000,000 33,000 On 09 April 2019, at a price of £0.007, for cash   7,500,000 7,500 As at 30 June 2019, Ordinary shares of £0.001p each 3,323,420,145 3,323,419 Note: The brought forward share capital and share premium balances from 30 June 2017 and 30 June 2018 have been restated by £415,358 and £1,393,570 respectively to £3,002,301 and £9,749,891 respectively. These restatements are a reclassification between the value of share capital and share premium due to an incorrect calculation of nominal share capital. The total equity remains unchanged for both brought forward periods. Total share options in issue As at 30 June 2019 there were 213.5 million unexercised options over Ordinary shares; 25 million exercisable at 0.2 pence per share in issue, 42 million exercisable at 0.28 pence per share in issue, 47.5 million exercisable at 0.7 pence per share in issue, 39.5 million exercisable at 1.4 pence per share in issue,  39.5 million exercisable at 2 pence per share in issue and 20 million exercisable at 2.5 pence per share in issue (2018: 205 million).

Total warrants in issue

On 3 September 2018 the Company announced that it had issued to DDH1 11,363,636 ordinary shares of 0.1 pence for the consideration of £142,045. 11,363,636 warrants with a 2.0 pence exercise price and an exercise period of 12 months were granted on the same date. In respect of these warrants a share based payment charge of £14,200 (approximately 10% of the consideration paid in ordinary shares) has been charged to the Income Statement. 

As at 30 June 2019 there were 204.7 million unexercised investor warrants over Ordinary shares at 2.0 pence outstanding. These warrants expired unexercised on 9 August 2019.

16	Share based payments
	The Company grants share options to employees as part of the remuneration of key management personnel and directors to enable them to purchase ordinary shares in the Company. Under the plan, 99 million options were granted for no cash consideration; 79 million options were granted for a period of three years expiring on 07 September 2022 and 20 million options were granted for a period of three years expiring on  22 March 2023.   Granted during the period At 30 June 2018 Share options exercised Exercisable at 30 June 2019 Exercise price (pence) Date from which exercisable Expiry date   C Baxter - 25,000,000 (25,000,000) - 0.2p 20 Apr 2016 20 Apr 2019 C Baxter - 28,000,000 (28,000,000) - 0.28p 18 Jan 2017 18 Jul 2020 C Baxter - 17,500,000 - 17,500,000 0.7p 18 Aug 2017 16 Feb 2021 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 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 - 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 Heddle - 17,500,000 - 17,500,000 0.7p 18 Aug 2017 16 Feb 2021 G Heddle 14,000,000 - - 14,000,000 1.4p 07 Sep 2019 06 Sep 2022 G Heddle 14,000,000 - - 14,000,000 2.0p 07 Sep 2019 06 Sep 2022 G Cryan - 5,000,000 (5,000,000) - 0.28p 18 Jan 2017 18 Jul 2020 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 B Wasse - 7,500,000 (7,500,000) - 0.7p 18 Aug 2017 16 Feb 2021 B Wasse 6,000,000 - - 6,000,000 1.4p 07 Sep 2019 06 Sep 2022 B Wasse 6,000,000 - - 6,000,000 2.0p 07 Sep 2019 06 Sep 2022 C Latcham 10,000,000 - - 10,000,000 2.5p 21 Mar 2020 20 Mar 2023 M Sawyer 10,000,000 - - 10,000,000 2.5p 21 Mar 2020 20 Mar 2023   99,000,000 205,000,000 (90,500,000) 213,500,000
The fair value of the 79 million options granted on 07 September 2018 using an adjusted Black-Scholes method and assumptions were as follows: Options issued 39.5 million share options 39.5 million share options Grant date 07 September 2018 07 September 2018 Fair value at measurement date 0.609 pence 0.505 pence Share price at grant date 1.225 pence 1.225 pence Exercise price 1.4 pence 2.0 pence Expected volatility Vesting period: 1 year after grant 83% 07 September 2019 83% 07 September 2019 Option life 36 months 36 months Expected dividends 0.00% 0.00% Risk free interest rate 0.50% 0.50% Discount 40% 40% Fair value of options granted £144,367 £119,676 The fair value of the 20 million options granted on 22 March 2019 using an adjusted Black-Scholes method and assumptions were as follows: Options issued 20 million share options Grant date 22 March 2019 Fair value at measurement date 0.607 pence Share price at grant date 1.935 pence Exercise price 2.5 pence Expected volatility Vesting period: 1 year after grant 58% 22 March 2020 Option life 36 months Expected dividends 0.00% Risk free interest rate 0.50% Discount 40% Fair value of options granted £72,848 The fair value of the share options expensed during the year was £234,032, being the value of the options attributable to the vesting period to 30 June 2019 (2018: £24,876). £102,859 will be expensed in the following year, being the value of these options attributable to the end of their vesting dates. £142,098 in respect of the exercised share options was transferred to reserves (2018: £109,464). The volatility is set by reference to the historic volatility of the share price of the Company.
17	Nature and purpose of reserves - Other reserves Merger Reserve The merger reserve was created in accordance with the merger relief provisions of the Companies Act 1985 (as amended), and 2006, relating to accounting for business combinations involving the issue of shares at a premium. In preparing group consolidated financial statements, the amount by which the fair value of the shares issued exceeded their nominal value was recorded within a merger reserve on consolidation, rather than in a share premium account. Foreign currency translation reserve The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.  Available for sale financial asset reserve This reserve is used to record the post-tax fair value movements in available for sale assets and investments.
18	Cash and cash equivalents - Group	30 June 2019 £			Currency adjustments £		Net Cash flow £	30 June 2018 £
	Cash at bank and in hand	2,755,998		(23,344)			(817,759)	3,597,101
	Total cash and cash equivalents	2,755,998		(23,344)			(817,759)	3,597,101
	Cash and cash equivalents - Company	30 June 2019 £		Currency adjustments £			Net Cash flow £	30 June 2018 £
	Cash at bank and in hand	2,247,271		-			(506,304)	2,753,575
	Total cash and cash equivalents	2,247,271		-			(506,304)	2,753,575
	Cash at bank earns interest at floating rates based on daily bank deposit rates.  Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates
19	Commitments
	As at 30 June 2019, the Company had entered into the following commitment: Exploration commitments Ongoing exploration expenditure is required to maintain title to the Group mineral exploration permits. No provision has been made in the financial statements for these amounts as the expenditure is expected to be fulfilled in the normal course of the operations of the Group.
20	Significant agreements and transactions In March 2019, Greatland signed a Farm-in Agreement with Newcrest Operations Limited ("Newcrest"), a wholly-owned subsidiary of Newcrest Mining Limited (ASX:NCM), to explore and develop Greatland's Havieron gold-copper project in the Paterson region of Western Australia. Newcrest has the right to acquire up to a 70% interest in a 12-block area within E45/4701 that covers the Havieron target by spending up to US$65m. The Farm-in Agreement with Newcrest and results from Newcrest's drilling campaign at Havieron are discussed in further detail in the Chairman's Statement and the Strategic Report. There were no other significant agreements and transactions to report other than that reported in Note 21.
21	Events after the reporting period Post-Balance Sheet Capital Raise and issue of options On 12 August 2019 the Company announced that it had raised £4,177,550 through a placing and subscription of 225,813,513 new ordinary shares of 0.1 pence each at a subscription price of 1.85 pence per Ordinary Share. Under this placing, warrants to subscribe for a further 225,813,513 new Ordinary Shares in the Company were issued at an exercise price of 2.5p per warrant, within a 2 year exercise period. On 26 September 2019 the Company announced that it had issued a total of 64,000,000 options to directors and key employees; 32,000,000 options at 2.5p per share option and 32,000,000 options at 3.0p per share option. Each option has a 12 month vesting period and entitles the holder upon exercise to one ordinary share of 0.1 pence in the capital of the Company. All options have a life of three years from the vesting date and all options will vest immediately upon a change of control event.
22	Related party transactions Remuneration of key management personnel The remuneration of the directors, and other key management personnel of the Group, is set out below in aggregate for each of the categories specified in IAS24 Related Party Disclosures.
			2019 £			2018 £
	Short-term employee benefits Share based payments Key management personnel		787,116 248,232 234,157			592,104 24,876 136,355
			1,269,505			753,335

 

23	Financial instruments - Group
	The Group uses financial instruments comprising cash, liquid resources and debtors/creditors that arise from its operations.
	The Group's exposure to currency and liquidity risk is not considered significant. The Group's cash balances are held in Pound Sterling and in Australian dollars, the latter being the currency in which the significant operating expenses are incurred.
	To date the Group has relied upon equity funding to finance operations. The Directors are confident that adequate cash resources exist to finance operations to commercial exploitation, but controls over expenditure are carefully managed.
	The net fair value of financial assets and liabilities approximates the carrying values disclosed in the financial statements.  The currency of the financial assets is as follows:
	Cash and short term deposits	30 June 2019 £			30 June 2018 £
	Sterling	2,247,271			2,753,575
	Australian Dollars	508,727			843,526
	At 30 June 2019	2,755,998			3,597,101
	The financial assets comprise interest earning bank deposits.

 

24	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 (see note 15) of 0.1 pence each in the Company were made. However, a second payment of 145,530,000 ordinary shares of 0.1 pence each will be made upon a "Decision to Mine".

25	Control There is considered to be no ultimate controlling entity.
26	Retained earnings of the parent Company As permitted by section 408 of the Companies Act 2006, the profit and loss account of the parent Company has not been separately presented in these accounts. The parent Company loss for the period was £930,087 (2018 £574,718).

 

END

 

 

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