Announcement PDF IMPACT MINERALS LIMITED (and Controlled Entities) ABN 52 119 062 261 HALF-YEAR FINANCIAL REPORT 31 December 2021 CONTENTS DIRECTORS’ REPORT ........................................................................................................................................................... 2 AUDITOR’S INDEPENDENCE DECLARATION ............................................................................................................. 5 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2021 .......................................... 6 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 ............................................................................................................................................................. 7 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2021 ............................................................................................................................................. 8 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021 ............................................................................................................................................................. 9 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021 ........................................................................................................................................... 10 DIRECTORS’ DECLARATION............................................................................................................................................ 17 INDEPENDENT AUDITOR’S REVIEW REPORT ........................................................................................................... 18 HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2021 Page 1 of 19 DIRECTORS’ REPORT Your Directors submit the financial report of the consolidated entity for the half-year ended 31 December 2021. DIRECTORS The names of directors who held office during or since the end of the half-year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated. • • • • • Peter Unsworth – Non-Executive Director 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. REVIEW OF OPERATIONS Arkun Nickel-Copper-PGM Project, WA (IPT 100%) The Arkun project covers about 2,000 sq km in the central Wheatbelt of Western Australia and is prospective for a wide range of commodities. The Arkun project is very poorly explored with no previous drilling. During the period 11 targets for Ni-Cu-PGM, 11 targets for lithium-cesium-tantalum (LCT) pegmatites and numerous targets for Rare Earth Elements (REE) and rubidium were identified with soil anomalies for both styles of mineralisation extending over significant areas of many hundreds of metres on reconnaissance traverses. The REE comprise both heavy and light rare earth elements including the valuable elements neodymium, praseodymium, dysprosium, terbium, ytterbium, cerium and lanthanum. Follow up work including field checking and rock chip sampling is in progress with land access negotiations to commence as soon as practicable. New Projects in Western Australia In December 2021 Impact announced that it had entered in to four joint venture projects with the right to earn up to an 80%. The projects are Jumbo, Narryer, Dalgaranga and Hopetoun, covering almost 1,000 square kilometres and prospective for nickel-copper-PGM, lithium and other metals. At Hopetoun a copper-gold target was drill tested and a thick alteration zone with abundant pyrite sulphide over four metres at end-of-hole was intersected. However extremely difficult drilling conditions precluded the continuation of RC drilling. A diamond drill rig is being sourced for follow up work in 2022. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2021 Page 2 of 19 DIRECTORS’ REPORT Doonia Gold Project, WA (IPT 80%) The Doonia gold project lies about 80 km east of the St Ives gold mining district and was acquired because of large poorly gold+bismuth soil geochemistry anomaly up to 2.5 km by 1.5 km in size centred over a cluster of smaller near-surface magnetic anomalies. The project has strong geophysical and geochemical similarities to the recent Burns discovery (ASX:LEX) located 20km west of Doonia. During the period all statutory approvals were received and a drill programme to test the soil anomaly was commenced in January 2022. Commonwealth Gold-Silver-Zinc-Lead-Copper Project, NSW (IPT 100%) The Commonwealth Project comprises six 100% owned exploration licences that cover about 853 km2 of the highly prospective Lachlan Fold Belt about 100 km north of Orange in NSW. The belt is host to many major gold-silver-copper mines including the Cadia-Ridgeway deposits that contain at least 25 million ounces of gold and 5 million tonnes of copper. During the period drill results were received from the Apsley prospect and a large halo of copper and associated altered rocks covering a 1,000 metre by 1,000 metre by 350 metre deep area was identified. The halo contains up to nearly 250 metre thick drill intercepts averaging from 100 ppm to 200 ppm copper with associated molybdenum and alteration minerals typical of the outer zones of a porphyry copper-gold system. Similar copper values and alteration at the Ridgeway Mine occur within only 200 metres to 300 metres of the high grade core. Metal zonation patterns have identified three areas for follow up work. Broken Hill Project, NSW (IPT 100%) The Broken Hill Project comprises 850 km2 of exploration licences located southeast of Broken Hill, NSW and is prospective for: nickel-copper-cobalt-PGE mineralisation associated with ultramafic rocks; zinc-lead-silver mineralisation hosted by metasedimentary rocks and amphibolite (Broken Hill style); and pyrite-cobalt deposits similar to Thackaringa (72Mt at 852 ppm cobalt, 9.3% sulphur and 10% iron). During the period IGO joint ventured into two of Impact’s tenements that are prospective for nickelcopper-PGE. The principal terms of the Joint venture are: IGO to spend $18 million over 8 years to earn a 75% interest in EL7390 and EL8234 in two stages: $6 million to earn a 51% interest and a further $12 million to earn a further 24% interest. There is a minimum expenditure of $500,000 before withdrawal. IGO commenced a ground electromagnetic survey over the two tenements in January 2022. FINANCIAL PERFORMANCE AND FINANCIAL POSITION During the half-year the Group reported an operating loss after tax of $1,083,540 (half-year to 31 December 2020: loss of $1,321,493). As at 31 December 2021 the Group had net assets of $15,497,736 (30 June 2021: $15,632,776) including $1,479,003 of cash and cash equivalents (30 June 2021: $3,415,778). The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted the entity up to 31 December 2021, 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. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2021 Page 3 of 19 DIRECTORS’ REPORT AUDITOR’S DECLARATION Section 307C of the Corporations Act 2001 requires our auditors, Hall Chadwick WA Audit Pty Ltd, to provide the directors of the company with an Independence Declaration in relation to the review of the half-year financial report. This Independence Declaration is set out on the following page and forms part of this directors’ report for the half-year ended 31 December 2021. This report is signed in accordance with a resolution of the Board of Directors. Peter Unsworth Chairman Perth, 11 March 2022 Competent Person’s Statement The review of exploration activities and results 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. Forward Looking Statements This document may contain certain forward-looking statements. Forward-looking statements include but are not limited to statements concerning Impact Minerals Limited’s (Impact’s) current expectations, estimates and projections about the industry in which Impact operates, and beliefs and assumptions regarding Impact’s future performance. When used in this document, words such as “anticipate”, “could”, “plan”, “estimate”, “expects”, “seeks”, “intends”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although Impact believes that its expectations reflected in these forward-looking statements are reasonable, such statements are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Impact and no assurance can be given that actual results will be consistent with these forwardlooking statements. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2021 Page 4 of 19 To the Board of Directors AUDITOR’S INDEPENDENCE CORPORATIONS ACT 2001 DECLARATION UNDER SECTION 307C OF THE As lead audit Director for the review of the financial statements of Impact Minerals Limited for the halfyear ended 31 December 2021, I declare that to the best of my knowledge and belief, there have been no contraventions of: • the auditor independence requirements of the Corporations Act 2001 in relation to the review; and • any applicable code of professional conduct in relation to the review. Yours faithfully, HALL CHADWICK WA AUDIT PTY LTD Dated this 11th day of March 2022 Perth, Western Australia MARK DELAURENTIS CA Director CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2021 CONSOLIDATED Notes 31 Dec 2021 $ 31 Dec 2020 $ Interest and other income 3 2,840 32,952 Other income 3 114,859 - 117,699 32,952 Employee benefits expense (746,778) (248,680) Corporate and administration expenditure (349,932) (394,289) Depreciation and amortisation expense (8,505) (20,609) Occupancy (40,297) (24,886) (55,727) (665,981) (1,083,540) (1,321,493) - - (1,083,540) (1,321,493) 367,500 - Other comprehensive income (net of tax) 367,500 - Total comprehensive loss for the period (716,040) (1,321,493) Total comprehensive loss attributable to the owners of Impact Minerals Limited (716,040) (1,321,493) Loss attributable to the owners of Impact Minerals Limited Cents per share Cents per share (0.05) (0.08) Impairment of exploration expenditure 7 Loss before income tax expense Income tax expense Net Loss from continuing operations Other comprehensive income / (loss) Items that will not be reclassified to profit or loss Change in the fair value of financial assets Basic Profit/(Loss) per share 6 13 The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2021 Page 6 of 19 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 CONSOLIDATED Notes 31 Dec 2021 $ 30 Jun 2021 $ Current Assets Cash and cash equivalents 1,479,003 3,415,778 Trade and other receivables 94,889 38,999 Other current assets 27,049 27,047 - 115,141 1,600,941 3,596,965 562,500 145,000 22,281 25,319 13,490,809 11,993,262 277,555 262,555 Total Non-Current Assets 14,353,145 12,426,136 TOTAL ASSETS 15,954,086 16,023,101 Trade and other payables 324,010 299,789 Short-term provisions 132,340 90,536 Total Current Liabilities 456,350 390,325 TOTAL LIABILITIES 456,350 390,325 15,497,736 15,632,776 Assets held for sale 4 5 Total Current Assets Non-Current Assets Financial assets 6 Property, plant and equipment Exploration expenditure 7 Other non-current assets Current Liabilities NET ASSETS EQUITY Issued capital 8 53,787,639 53,787,639 Option reserve 8 1,330,196 901,996 Financial asset reserve 9 412,500 45,000 (1,161,069) (1,161,069) Accumulated losses (38,871,530) (37,940,790) TOTAL EQUITY 15,497,736 15,632,776 Transactions with non-controlling interest The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2021 Page 7 of 19 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2021 Balance at 1 July 2020 Issued capital Option reserve $ $ Transactions with nonFinancial asset controlling reserve interest $ $ Accumulated losses Total equity $ $ 46,931,843 1,005,268 - (1,161,069) (33,398,966) 13,377,076 Loss for the period - - - - (1,321,493) (1,321,493) Other comprehensive income - - - - - - Total comprehensive loss for the half-year - - - - (1,321,493) (1,321,493) Shares issued 3,253,750 - - - - 3,253,750 Share issue costs (214,969) Exercise of options 54,160 (54,160) Fair value of options issued - 138,838 - - - 138,838 Fair value of options expired - (218,350) - - 218,350 - Balance at 31 December 2020 50,024,784 871,596 - (1,161,069) (34,502,109) 15,233,202 Balance at 1 July 2021 53,787,639 901,996 45,000 (1,161,069) (37,940,790) 15,632,776 Loss for the period - - - - (1,083,540) (1,083,540) Other comprehensive income - - 367,500 - - 367,500 Total comprehensive loss for the half-year - - 367,500 - (1,083,540) (716,040) Fair value of options issued - 581,000 - - - 581,000 Fair value of options expired - (152,800) - - 152,800 - 53,787,639 1,330,196 412,500 (1,161,069) (38,871,530) 15,497,736 Transactions with owners in their capacity as owners (214,969) - Transactions with owners in their capacity as owners Balance at 31 December 2021 The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2021 Page 8 of 19 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021 CONSOLIDATED 31 Dec 2021 $ 31 Dec 2020 $ (571,160) (552,614) 3,217 17,700 - 67,470 (567,943) (467,444) (5,467) (15,863) Payments for exploration activities (1,418,365) (2,353,693) Proceeds from the sale of tenements 165,000 - Payments for the acquisition of tenements (110,000) (30,000) (1,368,832) (2,399,556) Proceeds from issue of shares - 3,245,000 Share issue costs - (214,970) NET CASH FLOWS FROM FINANCING ACTIVITIES - 3,030,030 Net increase/(decrease) in cash and cash equivalents (1,936,775) 163,030 Cash and cash equivalents at beginning of the period 3,415,778 2,431,426 1,479,003 2,594,456 Notes CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees Interest received Government rebates NET CASH FLOWS USED IN OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment NET CASH FLOWS USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 4 The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2021 Page 9 of 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES a) Basis of Preparation These general-purpose financial statements for the interim half-year reporting period ended 31 December 2021 have been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standards including AASB 134: Interim Financial Reporting. This interim report is intended to provide users with an update on the latest annual financial statements of Impact Minerals Limited and its controlled entities (the consolidated entity). As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the consolidated entity. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the consolidated entity for the year ended 30 June 2021, together with any public announcements made during the half-year. Except for Note 1(b) the accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. The half-year financial statements have been prepared on the historical cost basis, except where stated. For the purpose of preparing the half-year financial statements, the half-year has been treated as a discrete reporting period. b) New accounting standards and interpretations The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for an annual accounting period that begins on or after 1 July 2021. The adoption of the new and revised Standards and Interpretations have not had a material impact on this half-year financial report. c) Going Concern The interim financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business. The Consolidated Group generated a loss for the period of $1,083,540 (2020: loss of $1,321,493) and net cash outflows from operating activities of $567,943 (2020: $467,444). As at 31 December 2021 the Consolidated Group had a cash balance of $1,479,003 (30 June 2021: $3,415,778). The ability of the Consolidated Group to continue as a going concern is principally dependent upon the ability of the Company to secure funds by raising capital from equity markets and managing cashflow in line with available funds. These conditions indicate a material uncertainty that may cast significant doubt about the ability of the Company to continue as a going concern. In the event the above matters are not achieved, the Company will be required to raise funds for working capital from debt or equity sources. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2021 Page 10 of 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021 The directors have prepared a cash flow forecast which indicates that the Consolidated Group will have sufficient cash flows to meet all commitments and working capital requirements for the 12-month period from the date of signing this financial report. Based on the cash flow forecasts and other factors referred to above, the directors are satisfied that the going concern basis of preparation is appropriate. In particular, given the Company’s history of raising capital to date, the directors are confident of the Company’s ability to raise additional funds as and when they are required. Should the Consolidated Group be unable to continue as a going concern it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or to the amount and classification of liabilities that might result should the Company be unable to continue as a going concern and meet its debts as and when they fall due. NOTE 2: SEGMENT REPORTING Management has determined that the Group has one material reportable segment, being mineral exploration in Australia. The Board has considered the requirements of AASB 8 Operating Segments and the internal reports that are reviewed by the chief operating decision maker (the Managing Director) in allocating resources and have concluded at this time that there are no separately identifiable segments. NOTE 3: INTEREST AND OTHER INCOME Interest income Gain on sale of tenements (refer Note 5) Other income 31 Dec 2021 $ 31 Dec 2020 $ 2,840 114,859 - 14,002 18,950 117,699 32,952 31 Dec 2021 $ 30 Jun 2021 $ 954,003 525,000 890,778 2,525,000 1,479,003 3,415,778 NOTE 4: CASH AND CASH EQUIVALENTS Cash at bank and on hand Short-term deposits HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2021 Page 11 of 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021 NOTE 5: ASSETS HELD FOR SALE Tenements held for sale 31 Dec 2021 $ 30 Jun 2021 $ - 115,141 - 115,141 In February 2021, the Company announced that it had reached an agreement for the sale of tenement EL8632 and the northern part of block EL8505 in the Company’s Lachlan Fold Belt portfolio to Orange Minerals Pty Ltd an unrelated company. The consideration being (a) a non-refundable deposit of $15,000; (b) $50,000 in shares in a company to be listed (ultimately Orange Minerals NL ASX:OMX); (c) $180,000 in cash; and (c) a 1% Net Smelter Royalty. At 30 June 2021 the sale had not been completed and the licences subject to this agreement were held at their carrying value. During the reporting period the sale was completed, and the Company recognised a gain on the sale of the tenements of $114,859. The Company also holds 250,000 shares in Orange Minerals NL. NOTE 6: FINANCIAL ASSETS 31 Dec 2021 $ 30 Jun 2021 $ Opening balance Additions (refer Note 5) Change in fair value 145,000 50,000 367,500 100,000 45,000 Closing balance 562,500 145,000 The fair value of listed financial assets at fair value through profit and loss has been determined directly by reference to published price quotations in an active market, with movement in fair value recognised in other comprehensive income. NOTE 7: EXPLORATION EXPENDITURE Capitalised cost at the beginning of the period Exploration expenditure incurred during the period Sale of Lachlan Fold Belt tenements Sale of Clermont project Impairment expense for the period 31 Dec 2021 $ 30 Jun 2021 $ 11,993,262 1,553,274 (55,727) 10,946,163 4,975,014 (115,141) (100,000) (3,712,774) 13,490,809 11,993,262 Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2021 Page 12 of 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021 NOTE 8: ISSUED CAPITAL Ordinary shares fully paid 31 Dec 2021 $ 30 Jun 2021 $ 53,787,639 53,787,639 a) Movements in ordinary shares on issue HALF-YEAR ENDED 31 DEC 2021 No. $ At the beginning of the period - Placement 2,023,794,919 53,787,639 1,559,494,630 46,931,843 - - 216,333,333 3,245,000 - - 838,065 18,750 2,708,434 54,160 (a) - Share issue (b) - Option conversion YEAR ENDED 30 JUN 2021 No. $ (c) - Share issue (d) - - 1,996,215 40,000 - Placement (e) - - 242,424,242 4,000,000 - Transaction costs - - - (502,114) 2,023,794,919 53,787,639 2,023,794,919 53,787,639 At the end of the period (a) In July 2020, the Company raised $3,245,000 (before costs) via a placement of 216,333,333 new shares at an issue price of 1.5 cents each. (b) During the financial year ended 30 June 2021, the Company issued a total of 838,065 new shares as part consideration for geological consulting services in relation to the identification of, and application for, the Doonia project. (c) During the financial year ended 30 June 2021, the Company issued 2,708,434 new shares for nil consideration on the cashless exercise of 8,000,000 employee options. (d) In January 2021, the Company issued 1,996,215 new shares as part consideration for geological consulting services in relation to the grant of the five tenements in the Yilgarn Craton of Western Australia (Arkun project). (e) In April 2021, the Company raised $4,000,000 (before costs) via a placement of 242,424,242 new shares at an issue price of 1.65 cents each. b) Movements in options on issue HALF-YEAR ENDED 31 DEC 2021 No. $ YEAR ENDED 30 JUN 2021 No. $ At the beginning of the reporting period 157,000,000 901,996 176,500,000 1,005,268 Fair value of options issued 83,000,000 581,000 4,000,000 169,238 - - (8,000,000) (54,160) (40,000,000) (152,800) (15,500,000) (218,350) 200,000,000 1,330,196 157,000,000 901,996 Options exercised Options expired At the end of the reporting period HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2021 Page 13 of 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021 NOTE 9: FINANCIAL ASSET RESERVE 31 Dec 2021 $ 30 Jun 2021 $ Opening balance Equity instruments at fair value through other comprehensive income 45,000 367,500 45,000 Closing balance 412,500 45,000 Financial asset reserve NOTE 10: SHARE BASED PAYMENTS On 30 November 2021, 62,000,000 unlisted options were granted to Directors (or their nominees) following shareholder approval at the 2021 Annual General Meeting. On 3 December 2021, 21,000,000 unlisted options were issued to employees under the Company’s Director and Employee Acquisition Plan. The fair value of options granted was determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the share price at grant date, the expected price volatility of the underlying share and the risk-free rate for the term of the option. The following table lists the model inputs for the options granted during the half-year ended 31 December 2021: Inputs Issue 45 Issue 46 Number of options 62,000,000 21,000,000 Exercise price $0.0217 $0.0217 Grant date 30 Nov 2021 3 Dec 2021 Expiry date 31 Oct 2025 31 Oct 2025 Vesting date Immediate Immediate Share price at grant date $0.013 $0.013 Historical volatility 91% 91% Risk-free interest rate 1.3% 1.3% Expected dividend yield 0% 0% The share-based payment expense for the half-year was $581,000 (2020: $Nil). NOTE 11: CONTINGENCIES There has been no change in contingent liabilities or assets since the annual reporting date. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2021 Page 14 of 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021 NOTE 12: COMMITMENTS In order to maintain an interest in the exploration tenements in which the Group is involved, the Group is committed to meet the conditions under which the tenements were granted. The timing and amount of exploration expenditure commitments and obligations of the Group are subject to the minimum expenditure commitments required as per the Mining Act 1978 (Western Australia), the Mining Act 1992 (New South Wales) and the Mineral Resources Act 1989 (Queensland) and may vary significantly from the forecast based upon the results of the work performed which will determine the prospectivity of the relevant area of interest. Since 30 June 2021, a number of new tenements have been acquired and this has had a material change in the exploration expenditure commitments on granted tenements held by the Group. As at 31 December 2021, total exploration expenditure commitments on granted tenements held by the Group that have not been provided for in the financial statements and which cover the following 12 month period amount to $1,520,201 (30 June 2021: $2,112,089). For the period greater than 12 months to five years, commitments amount to $9,856,959 (30 June 2021: $5,143,297). For the period greater than five years, commitments amount to $384,333 (30 June 2021: $Nil). These obligations are also subject to variations by farm-out arrangements, or sale of the relevant tenements. HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2021 Page 15 of 19 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021 NOTE 13: EARNINGS PER SHARE Half-year ended 31 Dec 2022 Cents Half-year ended 31 Dec 2020 Cents (0.05) (0.08) Basic profit/(loss) per share The following reflects the income and share data used in the calculations of basic profit/(loss) per share: Half-year ended 31 Dec 2021 $ Half-year ended 31 Dec 2020 $ (1,083,540) (1,321,493) Half-year ended 31 Dec 2021 Number Half-year ended 31 Dec 2020 Number 2,023,794,919 1,744,310,795 Profit / (Loss) used in calculating basic earnings per share Weighted average number of ordinary shares used in calculating basic loss per share Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares b