Announcement PDF FINANCIAL STATEMENTS For the year ended 30 June 2022 ABN 52 119 062 261 CONTENTS CORPORATE DIRECTORY................................................................................................................................................... 2 DIRECTORS’ REPORT ........................................................................................................................................................... 3 AUDITOR’S INDEPENDENCE DECLARATION............................................................................................................ 16 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2022......................................................................................................................... 17 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022 ......................................... 18 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022 ......... 19 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2022......................... 20 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 ....................................................................................................................................................................... 21 DIRECTORS’ DECLARATION............................................................................................................................................ 51 INDEPENDENT AUDITOR’S REPORT ............................................................................................................................ 52 FINANCIAL STATEMENTS 30 JUNE 2022 Page 1 of 57 CORPORATE DIRECTORY DIRECTORS Peter Unsworth Michael Jones Paul Ingram Frank Bierlein 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 Hall Chadwick WA Audit Pty Ltd 283 Rokeby Road Subiaco, WA 6008 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, IPTOB FINANCIAL STATEMENTS 30 JUNE 2022 Page 2 of 57 DIRECTORS’ REPORT 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 2022. 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 Frank Bierlein, Non-Executive Director (appointed 13 October 2021) Markus Elsasser, Non-Executive Director (retired 31 January 2022) 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 2022 was $2,399,307 (2021: $4,760,174). 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 continued a significant strategic change in focus from its long-standing projects in eastern Australia to a new and significant portfolio of battery, precious and strategic metals projects in the emerging mineral province of south west Western Australia. Exploration during the year has focussed on this new portfolio and in particular on the flagship Arkun-Beau project centred about 200 km south-east of Perth and first staked in 2020. Here, first pass reconnaissance soil geochemistry surveys along gazetted roads and tracks returned a significant number of anomalies for a range of deposit styles including nickel-copper-PGM hosted by mafic rocks, lithium pegmatites as well as rare earth elements and rubidium hosted by both weathered and fresh intrusive rocks. The anomalies all lie within freehold farmland and considerable time was spent during the year negotiating land access agreements with landowners. To date about 30 agreements have been signed or are in progress. FINANCIAL STATEMENTS 30 JUNE 2022 Page 3 of 57 DIRECTORS’ REPORT An airborne EM survey was also completed over seven priority areas and this data is currently being interpreted along with the results of 900 follow up soil samples to identify targets for drilling in early 2023. Impact also acquired three further 100% owned projects and entered into four joint ventures on very attractive terms during the year bringing the company’s total land position in Western Australia to about 4,000 km2. Preliminary soil geochemistry traverses on the three 100% owned projects, Dinninup, Mineral Hill and Martup Hills as well as one of the joint venture projects, Jumbo, adjacent to Arkun, all returned significant anomalies for the same range of metals as Arkun and this is very encouraging. A synthesis and interpretation of previous exploration data is underway on two of the other joint venture projects, Dalgaranga and Narryer. First pass drill programmes were also completed at the Hopetoun joint venture located near the mining centre of Ravensthorpe and also the previously acquired Doonia joint venture located 80 km east of Kambalda. Data including assays from these drill programmes are still being interpreted with a view to determining next steps. An integral part of the change in strategic focus has been the rationalisation of Impact’s projects in eastern Australia. As part of this process during the year Impact completed the sale of two tenements which were part of the Commonwealth project to Orange Minerals Limited (“Orange”) for $180,000 cash and 250,000 shares. Orange listed on the Australian Stock Exchange in December 2021 (ASX:OMX). Impact also still holds 1,000,000 shares in Australasian Metals Limited (ASX:A8G) which it received for the sale of the Clermont project in Queensland in early 2021. In addition, the Company also agreed to the sale of the Blackridge gold project in Queensland under the following terms: • $30,000 cash for the outright sale of ML2386; • $50,000 cash as a non-refundable option fee to purchase Impact’s subsidiary company Blackridge Exploration Pty Ltd within two years for $350,000 and which holds three exploration licences EPM26806, EPM27410 and EPM27571; and • a 1% NSR royalty for all gold produced after the first 5,000 ounces of production. Subsequent to the year end, Impact also agreed to sell 75% of the Commonwealth Project to unlisted company Burrendong Resources Pty Ltd. The sale is subject to Burrendong listing on the ASX by mid2023. Impact is now considering its options for its last remaining project in eastern Australia, the Broken Hill Project. During the year Impact entered into an agreement whereby IGO Limited, one of Australia’s leading mining and exploration companies agreed to farm into two tenements which form a small part of the Broken Hill project and which are prospective for deposits of nickel, copper and PGM. IGO can spend up to $18 million over 8 years to earn a 75% interest in the tenements. As part of the first-year exploration programme IGO has completed a major ground electromagnetic survey over the two tenements concerned. A significant deep-seated conductor has been identified and IGO have indicated that this will be drill tested by the end of 2022 if possible. FINANCIAL STATEMENTS 30 JUNE 2022 Page 4 of 57 DIRECTORS’ REPORT FINANCIAL As at 30 June 2022, the Group had net assets of $18,557,017 (2021: $15,632,776) including cash and cash equivalents of $3,816,089 (2021: $3,415,778). 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. 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 March 2022, the Company raised $2,000,000 (before costs) via a placement of 166,666,667 new shares at an issue price of 1.2 cents each. In June 2022 the Company completed a Renounceable Rights Issue raising $3,199,999 (before costs) via the issue of 290,908,970 new shares at an issue price of 1.1 cents each together with one free attaching listed option exercisable at $0.02 on or before 2 June 2024 for every two new shares subscribed for (145,454,389 Listed Options). A further 12,800,000 listed options were issued to the underwriter as part consideration for their services. EVENTS SINCE THE END OF THE FINANCIAL YEAR In August 2022 the Company announced that it had agreed to implement a Share Purchase Agreement (“SPA”) with Burrendong Minerals Limited (“Burrendong”) whereby Burrendong would acquire 75% of the shares in Impact’s wholly owned subsidiary Endeavour Minerals Pty Ltd (“Endeavour”). The principal assets of Endeavour are the Commonwealth Project tenements (EL8504, EL8505, EL5874, EL8212 and EL8252). Burrendong intends to list on the ASX. There has not arisen in the interval between the end of the financial year and the date of this report any other 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. FINANCIAL STATEMENTS 30 JUNE 2022 Page 5 of 57 DIRECTORS’ 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, Mines and Energy (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. 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 2022, 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 Listed options – Impact Minerals Limited FINANCIAL STATEMENTS 30 JUNE 2022 19,994,440 35,000,000 2,000,171 Page 6 of 57 DIRECTORS’ REPORT 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 Listed options – Impact Minerals Limited 9,643,814 71,000,000 964,380 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) Besra Gold Inc. (Director since September 2020) 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 Listed options – Impact Minerals Limited FINANCIAL STATEMENTS 30 JUNE 2022 725,850 20,000,000 72,584 Page 7 of 57 DIRECTORS’ REPORT Frank Bierlein PhD (Non-Executive Director), Director since 13 October 2021 Experience and expertise Dr Bierlein is a geologist with 30 years of experience as a consultant, researcher, lecturer and industry professional. Dr Bierlein has held exploration and generative geology management positions with QMSD Mining Co Ltd, Qatar Mining, Afmeco Australia and Areva NC, and consulted for, among others, Newmont Gold, Resolute Mining, Goldfields International, Freeport-McMoRan, and the International Atomic Energy Agency. He was a non- executive director of Gold Australia Pty Ltd from 2015 to 2019 and chaired the Advisory Board of a Luxemburg- based private equity fund between 2014 and 2021. Dr Bierlein has worked on six continents spanning multiple commodities, and over the course of his career has published and co-authored more than 130 articles in peerreviewed scientific journals. Dr Bierlein obtained a PhD (Geology) from the University of Melbourne, is a Fellow of the Australian Institute of Geoscientists (AIG), and a member of both the Society of Economic Geologists (SEG) and the Society of Geology Applied to Mineral Deposits. Other current directorships PNX Metals Limited (Director since June 2021) Blackstone Limited (Director since November 2021) Firetail Resources Limited (Director since November 2021) Former directorships in last None three years Special responsibilities Interests in shares and options None Unlisted options – Impact Minerals Limited 8,000,000 COMPANY SECRETARY Bernard Crawford B.Com, CA, MBA, AGIA ACG (appointed 4 April 2016) Mr Crawford is a Chartered Accountant with over 30 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. MEETINGS OF DIRECTORS The number of formal meetings of the Company’s Board of Directors held during the year ended 30 June 2022, and the number of meetings attended by each Director were: Number of meetings attended Number of meetings eligible to attend 7 7 7 5 4 7 7 7 5 4 Peter Unsworth Michael Jones Paul Ingram Frank Bierlein Markus Elsasser The directors also have a number of informal meetings with management during the year, both in person and by conference call. FINANCIAL STATEMENTS 30 JUNE 2022 Page 8 of 57 DIRECTORS’ REPORT RETIREMENT, ELECTION AND CONTINUATION IN OFFICE OF DIRECTORS Mr Peter 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 2022 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 last 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. a) Key management personnel covered in this report Non-Executive and Executive Directors (see pages 6 to 8 for details about each director) Name Position Peter Unsworth Michael Jones Paul Ingram Frank Bierlein Markus Elsasser Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Non-Executive Director 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. FINANCIAL STATEMENTS 30 JUNE 2022 Page 9 of 57 DIRECTORS’ REPORT Independent external advice is sought from remuneration consultants when required, however no advice was sought during the year ended 30 June 2022. 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. 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. FINANCIAL STATEMENTS 30 JUNE 2022 Page 10 of 57 DIRECTORS’ REPORT Fees for Non-Executive Directors are not linked to the performance of the Group. Non-Executive 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 last Annual General Meeting Impact Minerals Limited received more than 90% of “yes” votes on its Remuneration Report for the 2021 financial year. The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices. 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 $ 59,361 246,880 32,877 23,836 21,096 384,050 - 56,240 246,879 28,585 31,300 363,004 - Short-term employment benefits Name Share-based payments Total $ % of remuneration to total from shares and options % Shares $ Options $ 5,936 3,288 2,384 11,608 - 91,000 175,000 56,000 56,000 56,000 434,000 156,297 421,880 92,165 82,220 77,096 829,658 58.2 41.5 60.8 68.1 72.6 - 5,343 2,715 8,058 - 25,015 51,795 13,701 13,701 104,212 86,598 298,674 45,001 45,001 475,274 28.9 17.3 30.4 30.4 - 2022 Directors P Unsworth M Jones P Ingram F Bierlein (1) M Elsasser (2) TOTALS 2021 Directors P Unsworth M Jones P Ingram M Elsasser TOTALS (1) Appointed 13 October 2021. (2) Retired 31 January 2022. 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 $246,880 for the year ended 30 June 2022. The notice period (other than for gross misconduct) is three months. FINANCIAL STATEMENTS 30 JUNE 2022 Page 11 of 57 DIRECTORS’ REPORT 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 2022 financial year were approved by shareholders at the 2021 Annual General Meeting. Further information on the fair value of share options and assumptions is set out in Note 24 to the financial statements. 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 not exercisable Vested and exercisable Vested during the year 30,000,000 66,000,000 16,000,000 16,000,000 13,000,000 25,000,000 8,000,000 8,000,000 8,000,000 - (5,999,829) (19,035,620) (3,927,416) n/a 37,000,171 71,964,380 20,072,584 8,000,000 n/a - 37,000,171 71,964,380 20,072,584 8,000,000 n/a - 128,000,000 62,000,000 - (28,962,865) 137,037,135 - 137,037,135 - Directors P Unsworth M Jones P Ingram M Elsasser 32,000,000 71,000,000 17,000,000 17,000,000 - - (2,000,000) (5,000,000) (1,000,000) (1,000,000) 30,000,000 66,000,000 16,000,000 16,000,000 - 30,000,000 66,000,000 16,000,000 16,000,000 13,000,000 28,000,000 7,000,000 7,000,000 TOTALS 137,000,000 - - (9,000,000) 128,000,000 - 128,000,000 55,000,000 2022 Directors P Unsworth M Jones P Ingram F Bierlein M Elsasser (1) TOTALS 2021 (1) Retired 31 January 2022. During the year, no ordinary shares in the Company were issued to Directors as a result of the exercise of remuneration options. FINANCIAL STATEMENTS 30 JUNE 2022 Page 12 of 57 DIRECTORS’ REPORT Shareholdings Opening balance at 1 July Granted as remuneration Options exercised Net change (other) Balance at 30 June 15,994,098 7,715,052 580,680 23,310,402 47,600,232 - - 4,000,342 1,928,762 145,170 n/a 6,074,274 19,994,440 9,643,814 725,850 n/a 30,364,104 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 2022 Directors P Unsworth M Jones P Ingram F Bierlein M Elsasser (1) TOTALS 2021 Directors P Unsworth M Jones P Ingram M Elsasser TOTALS (1) Retired 31 January 2022. 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. 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) FINANCIAL STATEMENTS 30 JUNE 2022 Page 13 of 57 DIRECTORS’ REPORT SHARES