Announcement PDF FINANCIAL STATEMENTS For the year ended 30 June 2020 ABN 52 119 062 261 CONTENTS CORPORATE DIRECTORY ................................................................................................................................................... 2 DIRECTORS’ REPORT ........................................................................................................................................................... 3 AUDITOR’S INDEPENDENCE DECLARATION ........................................................................................................... 15 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2020......................................................................................................................... 16 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020 ......................................... 17 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2020 ......... 18 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020......................... 19 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 ....................................................................................................................................................................... 20 DIRECTORS’ DECLARATION............................................................................................................................................ 48 INDEPENDENT AUDITOR’S REPORT ............................................................................................................................ 49 FINANCIAL STATEMENTS 2020 Page 1 of 53 CORPORATE DIRECTORY DIRECTORS Peter Unsworth Michael Jones Paul Ingram Markus Elsasser Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director COMPANY SECRETARY Bernard Crawford REGISTERED OFFICE & PRINCIPAL PLACE OF BUSINESS 26 Richardson Street West Perth, WA 6005 Telephone: Facsimile: Email: Web: +61 (8) 6454 6666 +61 (8) 6314 6670 info@impactminerals.com.au www.impactminerals.com.au AUDITORS Bentleys Audit and Corporate (WA) Pty Ltd London House Level 3, 216 St Georges Terrace Perth, WA 6000 SHARE REGISTRY Computershare Investor Services Pty Ltd Level 11, 172 St Georges Terrace Perth, WA 6000 Telephone: Facsimile: +61 (8) 9323 2000 +61 (8) 9323 2033 SECURITIES EXCHANGE LISTING The Company is listed on the Australian Securities Exchange Ltd (“ASX”) Home Exchange: ASX Code: Perth, Western Australia IPT FINANCIAL STATEMENTS 2020 Page 2 of 53 DIRECTORS’ REPORT Your Directors present their report on the consolidated entity consisting of Impact Minerals Limited (“the Company”) and its subsidiaries (“the Group” or “the Consolidated Entity”) and its subsidiaries at the end of the year ended 30 June 2020. DIRECTORS The following persons were Directors of Impact Minerals Limited during the whole of the financial year and up to the date of this report unless noted otherwise: • • • • • Peter Unsworth, Non-Executive Chairman Michael Jones, Managing Director Paul Ingram, Non-Executive Director Markus Elsasser, Non-Executive Director Eamon Hannon, Non-Executive Director (resigned 10 September 2019) PRINCIPAL ACTIVITIES The principal activity of the Group during the financial year was exploration for deposits of nickel, gold, copper and platinum group elements. FINANCIAL RESULTS The consolidated loss of the Group after providing for income tax for the year ended 30 June 2020 was $1,685,165 (2019: $7,293,169). DIVIDENDS No dividends have been paid or declared since the start of the financial year. No recommendation for the payment of a dividend has been made by the Directors. OPERATIONS AND FINANCIAL REVIEW During the year Impact has expanded and progressed exploration across its portfolio of five projects. At the 903 km2 Commonwealth Project in the prolific copper-gold province of the Lachlan Fold Belt in NSW, the significant exploration potential for large intrusive-related copper-gold deposits was confirmed and enhanced following the discovery of the Boda-Kaiser copper-gold deposit by Alkane Resources Limited (ASX:ALK). Boda lies 3 km along trend from Impact’s tenements. Impact has identified five priority prospects for similar mineralisation with rock chip samples from all five returning encouraging results. Work is now focussed on identifying specific drill targets on the priority Apsley target. In addition, an increase in resources at the Commonwealth gold-silver-zinc-lead deposit and a maiden resource for the nearby Silica Hill deposit were also released. These deposits are now being reviewed for further exploration as they are open at depth below high grade drill intercepts. DIRECTORS’ REPORT A review of the 816 km2 Broken Hill nickel-copper-platinum group metal project in the light of record palladium prices and significant increases in the prices of all precious metals highlighted the potential for high grade massive sulphide deposits at three targets. Drilling is now in progress at all three areas. At the Blackridge gold project in central Queensland Impact has increased its ground holding to establish itself as the largest ground holder in the historic Micelere-Blackridge gold field. Discussions are in progress to attempt trial mining at the project which is characterised by nuggetty gold that is difficult to effectively drill out. At the nearby Clermont gold project, a review of previous high grade drill intercepts has identified a 2 km long target area that requires follow up drilling. A new 100% owned project, Arkun, located 120 km east of Perth was secured during the year. The project covers 1,900 km2 of the along trend extension of deformed equivalents of the host rocks at the Julimar nickel-copper-PGE discovery of Chalice Gold Mines Limited (ASX:CHN). Anglo American plc, one of the world’s top 10 mining companies, staked a vast ground holding of about 10,000 km2 around the Arkun project on the day of Impact’s first announcement on Arkun. It is evident that this part of WA is an emerging exploration hotspot and Impact now controls a significant ground holding there. The tenements are due for grant in late 2020 and on-ground work will commence immediately afterwards. FINANCIAL As at 30 June 2020, the Group had net assets of $13,377,076 (2019: $11,859,834) including cash and cash equivalents of $2,431,426 (2019: $2,002,624). RESPONSE TO COVID-19 Impact is continuing to review the ongoing situation relating to the COVID-19 pandemic and the implications for the health and wellbeing of our employees, contractors and stakeholders. The Company has been pro-active with respect to its response to COVID-19 and has developed operational procedures and plans in line with official health advice and government directives. Impact will continue to operate within these guidelines and will adapt its procedures as required. The impact on the Group’s operations to date has not been material and whilst the situation with regards to COVID-19 remains uncertain, the Company remains an active explorer across its projects and does not foresee, at this time, that it will have a material impact on future operations. Competent Persons Statement The review of operations contained in this report is based on information compiled by Dr Mike Jones, a Member of the Australian Institute of Geoscientists. He is a director of the Company and works for Impact Minerals Limited. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Dr Jones has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears. Impact Minerals confirms that it is not aware of any new information or data that materially affects the information included in previous market announcements and in the case of mineral resource estimates, that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. FINANCIAL STATEMENTS 2020 Page 4 of 53 DIRECTORS’ REPORT SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS Significant changes in the state of affairs of the Group during the financial year were as follows: • • In August 2019 Impact announced a significant increase in resources at the Company’s 100% owned Commonwealth gold-silver-zinc-lead-copper project 95 km north of Orange in New South Wales including a maiden resource for the silver-rich Silica Hill Prospect (see IPT ASX Release dated 22 August 2019). In mid 2020 Impact made applications for eight 100% owned Exploration Licences prospective for nickel-copper-platinum group metals and gold in the emerging province in the south west Yilgarn Craton of Western Australia (the Arkun Project). EVENTS SINCE THE END OF THE FINANCIAL YEAR On 28 July 2020, the Company completed a placement to sophisticated and professional investors of 216,333,333 ordinary shares at an issue price of 1.5 cents per share raising $3,245,000 before costs. The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted the Group up to 30 June 2020, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. Other than the above, there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly the operations, the results of those operations, or the state of affairs of the Group in future financial years. LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS The Directors are not aware of any developments that might have a significant effect on the operations of the Group in subsequent financial years not already disclosed in this report. ENVIRONMENTAL REGULATION The Group is subject to significant environmental regulation in respect of its exploration activities. Tenements in Western Australia, New South Wales and Queensland are granted subject to adherence to environmental conditions with strict controls on clearing, including a prohibition on the use of mechanised equipment or development without the approval of the relevant government agencies, and with rehabilitation required on completion of exploration activities. These regulations are controlled by the Department of Mines, Industry Regulation and Safety (Western Australia), the Department of Industry (New South Wales) and the Department of Natural Resources and Mines (Queensland). Impact Minerals Limited conducts its exploration activities in an environmentally sensitive manner and the Group is not aware of any breach of statutory conditions or obligations. FINANCIAL STATEMENTS 2020 Page 5 of 53 DIRECTORS’ REPORT Greenhouse gas and energy data reporting requirements The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which requires entities to report annual greenhouse gas emissions and energy use. The Directors have assessed that there are no current reporting requirements for the year ended 30 June 2020, however reporting requirements may change in the future. INFORMATION ON DIRECTORS Peter Unsworth B.Com (Non-Executive Chairman), Director since 28 April 2006 Experience and expertise Mr Unsworth, formerly a chartered accountant, has more than 40 years’ experience in the corporate finance, investment, and securities industries and has a wealth of management experience with both public and private companies. A former Executive Director with a leading Western Australian stockbroking company, Mr Unsworth has been a Director of a number of public exploration and mining companies. He is a former Director and Chairman of the Western Australian Government owned Gold Corporation (operator of The Perth Mint). Other current directorships None Former directorships in last Stealth Global Holdings Limited (appointed July 2018, retired October 2019) three years Special responsibilities Chair of the Board Interests in shares and options Ordinary shares – Impact Minerals Limited Unlisted options – Impact Minerals Limited 15,994,098 32,000,000 Michael Jones PhD, MAIG (Managing Director), Director since 31 March 2006 Experience and expertise Dr Jones completed undergraduate and post-graduate studies in Mining and Exploration Geology at Imperial College, London. His PhD work on gold mineralisation saw him move to Western Australia in 1988 to work for Western Mining Corporation exploring for gold and nickel deposits in the Yilgarn. From 1994, he consulted to the exploration and mining industry specialising in the integration of geological field mapping and the interpretation of geochemical, geophysical and remotely sensed data for target generation. Dr Jones has worked on over 80 projects both in Greenfields and near mine exploration in a wide variety of mineralised terrains and was the founding Director of Lithofire Consulting Geologists in Perth, Australia. He was also the team leader during the discovery of a significant gold deposit at the Higginsville Mining Centre, near Kalgoorlie and an iron ore deposit near Newman, both in Western Australia. Other current directorships None Former directorships in last None three years Special responsibilities Managing Director Interests in shares and options Ordinary shares – Impact Minerals Limited Unlisted options – Impact Minerals Limited FINANCIAL STATEMENTS 2020 7,715,052 71,000,000 Page 6 of 53 DIRECTORS’ REPORT Paul Ingram B.AppSc, AIMM, MICA (Non-Executive Director), Director since 27 September 2009 Experience and expertise Mr Ingram is a geologist with extensive experience in managing major mineral exploration programs for several publicly listed companies and has been involved in the mining sector for over forty years. He has designed and implemented innovative techniques for exploration in remote areas and has managed projects in countries throughout Australia and east Asia. Other current directorships A-Cap Resources Limited (Director since June 2009) Former directorships in last None three years Special responsibilities None Interests in shares and options Ordinary shares – Impact Minerals Limited Unlisted options – Impact Minerals Limited 580,680 17,000,000 Markus Elsasser PhD (Non-Executive Director), Director since 9 August 2012 Experience and expertise Dr Markus Elsasser is a German financier and investor in the mineral resources industry. He is Head of the Elsasser family office ‘M. Elsasser & Cie AG 1971’ in Dusseldorf, Germany. Dr Elsasser has previously been Director of Finance at the Dow Chemical Company in Germany. He has extensive General Management experience with former appointments as Managing Director in Australia and Singapore in the chemical and food industries. Other current directorships None Former directorships in last None three years Special responsibilities None Interests in shares and options Ordinary shares – Impact Minerals Limited Unlisted options – Impact Minerals Limited 23,310,402 17,000,000 COMPANY SECRETARY Bernard Crawford B.Com, CA, MBA, AGIA ACG (appointed 4 April 2016) Mr Crawford is a Chartered Accountant with over 25 years’ experience in the resources industry in Australia and overseas. He has held various positions in finance and management with NYSE, TSX and ASX listed companies. Mr Crawford is the CFO and/or Company Secretary of a number of public companies. He holds a Bachelor of Commerce degree from the University of Western Australia, a Master of Business Administration from London Business School and is a Member of Chartered Accountants Australia and New Zealand and the Governance Institute of Australia. FINANCIAL STATEMENTS 2020 Page 7 of 53 DIRECTORS’ REPORT MEETINGS OF DIRECTORS The number of formal meetings of the Company’s Board of Directors held during the year ended 30 June 2020, and the number of meetings attended by each Director were: Peter Unsworth Michael Jones Paul Ingram Markus Elsasser Eamon Hannon (1) Number of meetings attended Number of meetings eligible to attend 6 6 6 5 - 6 6 6 6 - (1) Resigned 10 September 2019. The directors also have a number of informal meetings with management during the year, both in person and by conference call. RETIREMENT, ELECTION AND CONTINUATION IN OFFICE OF DIRECTORS Mr Unsworth, being a Director retiring by rotation who, being eligible, will offer himself for reelection at the Annual General Meeting. REMUNERATION REPORT (AUDITED) The Directors present the Impact Minerals Limited 2020 Remuneration Report, outlining key aspects of the Company’s remuneration policy and framework, and remuneration awarded this year. The report contains the following sections: a) b) c) d) e) f) g) h) i) j) k) l) Key management personnel covered in this report Remuneration governance and the use of remuneration consultants Executive remuneration policy and framework Relationship between remuneration and the Group’s performance Non-executive director remuneration policy Voting and comments made at the Company’s 2019 Annual General Meeting Details of remuneration Service agreements Details of share-based compensation and bonuses Equity instruments held by key management personnel Loans to key management personnel Other transactions with key management personnel. FINANCIAL STATEMENTS 2020 Page 8 of 53 DIRECTORS’ REPORT a) Key management personnel covered in this report Non-Executive and Executive Directors (see pages 6 to 7 for details about each director) Name Position Peter Unsworth Michael Jones Paul Ingram Markus Elsasser Eamon Hannon (1) Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Non-Executive Director (1) Resigned 10 September 2019. b) Remuneration governance and the use of remuneration consultants The Company does not have a Remuneration Committee. Remuneration matters are handled by the full Board of the Company. In this respect the Board is responsible for: • the over-arching executive remuneration framework; • the operation of the incentive plans which apply to executive directors and senior executives (the executive team), including key performance indicators and performance hurdles; • remuneration levels of executives; and • non-executive director fees. The objective of the Board is to ensure that remuneration policies and structures are fair and competitive and aligned with the long-term interests of the Company. In addition, all matters of remuneration are handled in accordance with the Corporations Act requirements, especially with regards to related party transactions. That is, none of the Directors participate in any deliberations regarding their own remuneration or related issues. Independent external advice is sought from remuneration consultants when required, however no advice was sought during the year ended 30 June 2020. c) Executive remuneration policy and framework In determining executive remuneration, the Board aims to ensure that remuneration practices are: • competitive and reasonable, enabling the Company to attract and retain key talent; • aligned to the Company’s strategic and business objectives and the creation of shareholder value; • transparent and easily understood; and • acceptable to shareholders. All executives receive consulting fees or a salary, part of which may be taken as superannuation, and from time to time, options. The Board reviews executive packages annually by reference to the executive’s performance and comparable information from industry sectors and other listed companies in similar industries. All remuneration paid to specified executives is valued at the cost to the Group and expensed. Options are valued using a Black-Scholes option pricing model. FINANCIAL STATEMENTS 2020 Page 9 of 53 DIRECTORS’ REPORT d) Relationship between remuneration and the Group’s performance Emoluments of Directors are set by reference to payments made by other companies of similar size and industry, and by reference to the skills and experience of Directors. Fees paid to NonExecutive Directors are not linked to the performance of the Group. This policy may change once the exploration phase is complete and the Group is generating revenue. At present the existing remuneration policy is not impacted by the Group’s performance including earnings and changes in shareholder wealth (e.g. changes in share price) with the exception of incentive options issued to Directors, subject to shareholder approval. The Board has not set short term performance indicators, such as movements in the Company’s share price, for the determination of Non-Executive Director emoluments as the Board believes this may encourage performance which is not in the long-term interests of the Company and its shareholders. The Board has structured its remuneration arrangements in such a way it believes is in the best interests of building shareholder wealth in the longer term. The Board believes participation in the Company’s Incentive Option Scheme motivates key management and executives with the long-term interests of shareholders. e) Non-Executive Director remuneration policy The Board policy is to remunerate Non-Executive Directors at commercial market rates for comparable companies for their time, commitment and responsibilities. Non-Executive Directors receive a Board fee but do not receive fees for chairing or participating on Board committees. Board members are allocated superannuation guarantee contributions as required by law, and do not receive any other retirement benefits. From time to time, some individuals may choose to sacrifice their salary or consulting fees to increase payments towards superannuation. The maximum annual aggregate Non-Executive Directors’ fee pool limit is $250,000 as approved by shareholders at the Company’s 2016 Annual General Meeting (“AGM”) held on 9 November 2016. Fees for Non-Executive Directors are not linked to the performance of the Group. NonExecutive Directors’ remuneration may also include an incentive portion consisting of options, subject to approval by shareholders. f) Voting and comments made at the Company’s 2019 Annual General Meeting Impact Minerals Limited received more than 98% of “yes” votes on its Remuneration Report for the 2019 financial year. The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices. FINANCIAL STATEMENTS 2020 Page 10 of 53 DIRECTORS’ REPORT g) Details of remuneration The following table show details of the remuneration received by the Group’s key management personnel for the current and previous financial year. Salary & fees $ Non-monetary benefit $ Postemployment benefits Superannuation $ 50,000 246,879 20,000 21,900 3,742 342,521 - 53,750 262,209 24,583 26,919 25,410 392,871 - Short-term employment benefits Name Share-based payments Total $ % of remuneration to total from shares and options % Shares $ Options $ 4,750 1,900 6,650 - 121,027 252,379 66,090 66,090 505,586 175,777 499,258 87,990 87,990 3,742 854,747 68.9 50.6 75.1 75.1 - 5,106 2,336 7,442 - 26,033 65,083 13,016 13,016 117,148 84,889 327,292 39,935 39,935 25,410 517,461 30.7 19.9 32.6 32.6 - 2020 Directors P Unsworth M Jones P Ingram M Elsasser E Hannon (1) TOTALS 2019 Directors P Unsworth M Jones P Ingram M Elsasser E Hannon (1) TOTALS (1) Resigned 10 September 2019. No components of remuneration are linked to the performance of the Group. h) Service agreements M Jones, Managing Director Dr Jones is remunerated pursuant to an ongoing Consultancy Services Agreement. Dr Jones was paid fees of $246,879 for the year ended 30 June 2020. The notice period (other than for gross misconduct) is three months. i) Details of share-based compensation and bonuses Options Options over ordinary shares in Impact Minerals Limited are granted under the Employee Option Acquisition Plan (“Option Plan”). Participation in the Option Plan and any vesting criteria are at the Board’s discretion and no individual has a contractual right to participate in the Option Plan or to receive any guaranteed benefits. Any options issued to Directors of the Company are subject to shareholder approval. Options issued to Directors in the 2020 financial year were approved by shareholders at the 2019 Annual General Meeting. Further information on the fair value of share options and assumptions is set out in Note 23 to the financial statements. FINANCIAL STATEMENTS 2020 Page 11 of 53 DIRECTORS’ REPORT j) Equity instruments held by key management personnel The following tables detail the number of fully paid ordinary shares and options over ordinary shares in the Company that were held during the financial year and the previous financial year by key management personnel of the Group, including their close family members and entities related to them. Options Opening balance at 1 July Granted as Options remuneration exercised Net change (other) Balance at 30 June Vested but Vested and not exercisable exercisable Vested during the year 19,333,335 41,250,001 8,000,000 8,000,000 76,583,336 18,000,000 36,000,000 10,000,000 10,000,000 74,000,000 - (5,333,335) (6,250,001) (1,000,000) (1,000,000) (13,583,336) 32,000,000 71,000,000 17,000,000 17,000,000 137,000,000 - 19,000,000 43,000,000 10,000,000 10,000,000 82,000,000 8,000,000 20,000,000 4,000,000 4,000,000 36,000,000 11,333,335 21,250,001 4,000,000 4,000,000 40,583,336 12,000,000 30,000,000 6,000,000 6,000,000 54,000,000 - (4,000,000) (10,000,000) (2,000,000) (2,000,000) (18,000,000) 19,333,335 41,250,001 8,000,000 8,000,000 76,583,336 - 7,333,335 11,250,001 2,000,000 2,000,000 22,583,336 2,000,000 5,000,000 1,000,000 1,000,000 9,000,000 2020 Directors P Unsworth M Jones P Ingram M Elsasser TOTALS 2019 Directors P Unsworth M Jones P Ingram M Elsasser TOTALS During the year, no ordinary shares in the Company were issued as a result of the exercise of remuneration options. Shareholdings Opening balance at 1 July Granted as remuneration Options exercised 15,994,098 7,715,052 580,680 23,310,402 47,600,232 - 15,994,098 7,715,052 580,680 23,310,402 47,600,232 - Net change (other) Balance at 30 June - - 15,994,098 7,715,052 580,680 23,310,402 47,600,232 - - 15,994,098 7,715,052 580,680 23,310,402 47,600,232 2020 Directors P Unsworth M Jones P Ingram M Elsasser TOTALS 2019 Directors P Unsworth M Jones P Ingram M Elsasser TOTALS The assessed fair value at grant date of options granted to individuals is allocated equally over the period from grant date to vesting date, (and the amount included in the remuneration tables above). Fair values at grant date are determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option. FINANCIAL STATEMENTS 2020 Page 12 of 53 DIRECTORS’ REPORT k) Loans to key management personnel There were no loans to individuals or members of key management personnel during the financial year or the previous financial year. l) Other transactions with key management personnel There were no other transactions with key management personnel during the financial year or the previous financial year. END OF REMUNERATION REPORT (AUDITED) SHARES UNDER OPTION Unissued ordinary shares of the Company under option at the date of this report are as follows: Date options granted 29 Sep 2015 and 13 May 2016 8 Nov 2018 8 Nov 2018 8 Nov 2019 and 15 Nov 2019 Expiry date 29 Sep 2020 30 Nov 2021 30 Nov 2022 5 Nov 2023 Issue price of shares $0.07 $0.03 $0.0375 $0.0149 Number under option 15,500,000 40,000,000 20,000,000 97,000,000 TOTAL 172,500,000 No option holder has any right under the options to participate in any other share issue of the Company or any other entity. SHARES ISSUED ON THE EXERCISE OF OPTIONS In August 2020, the Company issued 1,357,324 ordinary shares upon the cashless exercise of 4,000,000 options with an exercise price of $0.0149 and expiring on 5 November 2023. The terms of the Company’s Directors' and Employees' Option Acquisition Plan provides for a Cashless Exercise Facility (“Facility”). CORPORATE GOVERNANCE STATEMENT The Company’s 2020 Corporate Governance Statement has been released as a separate document and is located on the Company’s website at http://www.impactminerals.com.au/corporategovernance/. PROCEEDINGS ON BEHALF OF THE GROUP No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS During the financial year, the Company paid a premium to insure the Directors and Officers of the consolidated entity against any liability incurred as a Director or Officer to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits the disclosure of the nature of the liabilities covered or the amount of the premium paid. FINANCI