Mincor Resources NL : FY2021 Financial Report

FINANCIAL

REPORT

30 JUNE 2021

ABN 42 072 745 692

FINANCIAL REPORT 2021

Directors' Report.....................................................................................................................................................................	1
Auditor's Independence Declaration ............................................................................................................................	20
Consolidated Statement of Profit or Loss and Other Comprehensive Income ...............................................	21
Consolidated Statement of Financial Position ...........................................................................................................	22
Consolidated Statement of Changes in Equity..........................................................................................................	23
Consolidated Statement of Cash Flows .......................................................................................................................	24
Notes to the Consolidated Financial Statements......................................................................................................	25
Directors' Declaration.........................................................................................................................................................	56
Independent Auditor's Report ........................................................................................................................................	57

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 JUNE 2021

The Directors present their report together with the consolidated financial statements of the Group comprising of Mincor Resources NL ("Mincor" or the "Company") and its subsidiaries for the financial year ended 30 June 2021 and the Auditor's report thereon. The Directors' report and consolidated financial statements are presented in Australian dollars, except where otherwise indicated.

DIRECTORS

The names and particulars of the Directors of Mincor during the financial year and up to the date of this report are:

NameParticulars

Brett Thomas Lambert

BAppSc (Mining Engineering),

Appointed

1 January 2017

Appointed

Non-Executive

Chairman

6 February 2018

David Clifford Southam

BComm, CPA,

MAICD

Appointed

1 February 2019

Non-executive Chairman (Independent)

Mr Lambert is a mining engineer and has over 35 years' involvement in the Australian and international resources industry encompassing mining operations, project development, business development and corporate administration.

After graduating from the Western Australian School of Mines, Mr Lambert commenced his professional career with Western Mining Corporation ("WMC") at Kalgoorlie in 1983. He progressed to a senior management position with WMC before leaving to take responsibility for the development of Herald Resources' Three Mile Hill gold mine at Coolgardie. Mr Lambert has since held senior roles with a number of junior and mid-tier resource companies, including more than 10 years at chief executive officer/managing director level.

Mr Lambert has served as a director of companies listed on the Australian Securities Exchange ("ASX"), London's Alternative Investment Market, the Toronto Stock Exchange and the Stock Exchange of Thailand.

Special responsibilities	Other current directorships	Former ASX listed directorships in
Chair of the Board	Australian Potash Limited	last 3 years
Member of the Nomination	(appointed 9 May 2017)	De Grey Mining Limited (2017-2019)
and Remuneration	Metal Hawk Limited	Metals X Limited (2019-2020)
Committee	(appointed Chair 8 July 2019)
	Saturn Metals Limited
	(appointed Chair 9 April 2020)
	Musgrave Minerals Limited
	(appointed 4 February 2021)
Managing Director

Mr Southam holds a Bachelor of Commerce degree from Curtin University and has significant experience as a senior executive and director of ASX200 companies. He is a Certified Practicing Accountant with more than 25 years' experience in accounting, operations, capital markets and finance across the resources and industrial sectors.

Mr Southam held the role of executive director at successful nickel producer, Western Areas Limited, immediately prior to his appointment at Mincor in 2019. He has been intimately involved in several large project financings in multiple jurisdictions and has completed significant capital market and merger and acquisition transactions.

Mr Southam has negotiated several multi-billion-dollar sales offtake agreements in base metals and bulk commodities and holds extensive industry experience in nickel and other battery metal industries.

Special responsibilities	Other current directorships
Nil	Ramelius Resources Limited
	(appointed 2 July 2018)

Former ASX listed directorships in last 3 years

Western Areas Limited (2010-2019)

Kidman Resources Limited (2017-2019)

DIRECTORS' REPORT

	Name			Particulars
	Michael Andrew		Non-executive Director (Independent)
	Bohm		Mr Bohm is a qualified mining professional with extensive corporate, project development and mine
	BAppSc (Mining		operations experience in Australia, South-East Asia, Africa, Chile, North America and Europe. A graduate
	Engineering),		of the Western Australian School of Mines, Mr Bohm has worked as a mining engineer, mine manager,
	MAusIMM, MAICD		study manager, project manager, project director and managing director. He has been directly involved
				in a number of new project developments in the gold, nickel and diamond sectors both in Australia and
	Appointed		offshore.
		Mr Bohm's experience includes previous directorships at Argyle Diamond Mines, Sally Malay Mining
	1 January 2017
		Limited (now Panoramic Resources Limited), Perseus Mining Limited and Ashton Mining of Canada Inc.
				Special responsibilities	Other current directorships	Former ASX listed directorships in
				Chair of the Nomination and	Ramelius Resources Limited	last 3 years
				Remuneration Committee	(appointed 2 November 2012)	Perseus Mining Limited (2009-2018)
				Member of the Audit and	Cygnus Gold Limited
				Risk Committee	(appointed Chair 30 September
					2016)
					Riedel Resources Limited
					(appointed Chair 12 December
					2020)
	Liza Carpene		Non-executive Director (Independent)
	MBA, FGIA, FCIS,		Ms Carpene has worked in the resources industry for more than 20 years, and has significant experience
	GAICD		in corporate administration, HR, legal, environment, IT and stakeholder relations. Up until February 2018,
				Ms Carpene was part of Northern Star Resources Limited's ("Northern Star") executive team responsible
	Appointed		for its transformational growth, through a combination of acquisition, organic growth and divestment,
		to an ASX50 company.
	16 April 2018		Prior to Northern Star, Ms Carpene was Company Secretary and Chief Financial Officer for ASX listed
				exploration companies, Venturex Resources Limited and Newland Resources Limited, and previously held
				various site and Perth based management roles with Great Central Mines Limited, Normandy Mining
				Limited, Newmont Australia Limited, Agincourt Resources Limited and Oxiana Limited.
				Ms Carpene has a Master of Business Administration and a Graduate Diploma in Applied Corporate
				Governance. She is also a Chartered Secretary and a Graduate of the Australian Institute of Company
				Directors.
				Special responsibilities	Other current directorships		Former ASX listed directorships in
				Chair of the Audit and Risk	Alchemy Resources Limited		last 3 years
				Committee	(appointed 18 March 2015)		None
				Member of the Nomination
				and Remuneration
				Committee

Peter William Bewick

B.Eng (Hons), MAusIMM

Appointed

2 December 2019

Non-executive Director (Independent)

Mr Bewick is an experienced mining executive and geologist with technical and geological expertise in the nickel sulphide sector.

Mr Bewick graduated from the Western Australian School of Mines in 1990 and is a geologist with over 25 years of industry experience. Mr Bewick held a number of senior mine and exploration geological roles during a 14-year career with WMC, including Exploration Manager and Geology Manager of the Kambalda Nickel Operations and Exploration Manager for the St Ives Gold Operations.

Mr Bewick has also held corporate roles with WMC as Exploration Manager for the Nickel Business Unit and Exploration Manager for North America, based in Denver, Colorado. Mr Bewick has been an Executive Director of Encounter Resources Limited, a successful resource generation company, since its inception.

Mr Bewick has extensive experience in project generation for a range of commodities including nickel, gold, copper, and bauxite. He has been a member of the MERIWA Exploration Advisory Committee since 2013.

Special responsibilities	Other current directorships	Former ASX listed directorships in
Member of the Audit and	Encounter Resources Limited	last 3 years
Risk Committee	(appointed Executive Director	None
	7 October 2005)

DIRECTORS' REPORT

COMPANY SECRETARY

The name of the Company Secretary of Mincor during the financial year ended 30 June 2021 and to the date of this report is:

	Name			Particulars
	Shannon Louise		Company Secretary
	Coates		Ms Coates has over 25 years' experience in corporate law and compliance. She is currently a director of
	LLB, B(Juris), AGIA,		a boutique corporate advisory firm, Evolution Corporate Services Pty Ltd, and company secretary to a
	ACIS, GAICD		number of ASX listed companies. She has provided company secretarial and corporate advisory services
				to boards across a variety of industries, including mining and oil and gas exploration and development,
	Appointed		financial services, manufacturing and technology both in Australia and internationally.
	17 November 2017		Ms Coates is a qualified lawyer, Chartered Secretary, and a Graduate of the Australian Institute of
				Company Directors.

REVIEW OF OPERATIONS AND SIGNIFICANT EVENTS

KAMBALDA LANDHOLDINGS

The Company's key assets consist of strategic landholdings in the Kambalda District of Western Australia, a major nickel and gold producing area with significantly developed mining infrastructure.

KAMBALDA NICKEL OPERATIONS (100%)

In September 2020, the Board made a Final Investment Decision ("FID") for the development of the Company's Kambalda Nickel Operations ("KNO") integrated nickel restart plan based on the Definitive Feasibility Study ("DFS") completed in March 2020. KNO comprises the Cassini and Northern Operations. The FID was made following the receipt of a credit approved term sheet for A$55 million from two Tier-1 international banks, BNP Paribas and Société Générale. In November 2020, the Company commenced development at both operations.

COVID-19

Mincor took proactive steps during the financial year to address the risks arising from the COVID-19 pandemic and activated Government measures to prevent the virus' spread. Company policies and procedures were outlined to all staff and contractors, and hygiene and social distancing protocols implemented.

The Company's workforce is largely based in Western Australia, reducing the impact of interstate border closures and enabling Mincor to effectively maintain business operations throughout the reporting period. No staff members or contractors have been diagnosed with COVID-19. There were minor disruptions to operations throughout the year, and more recently in June 2021 when the Western Australian Government imposed restrictions on the Perth and Peel regions which impacted flights to and from Kalgoorlie. Mincor, Pit N Portal and Webdrill employees worked longer rosters during the lockdown period to cover operational requirements.

The Company will continue to monitor any future developments associated with COVID-19 to identify and manage risks that may arise.

Heritage

During the year, Mincor and its mining contractor Pit N Portal continued discussions with the Ngadju Native Title Aboriginal Corporation to formally lay the foundations for how the parties can cooperate and work together on Indigenous employment and training programs. The Ngadju Body Corporate has nominated the committee members for the Mining Operations Implementation Committee with the first meeting held in July 2021.

Safety and Environment

There were no lost-time incidents ("LTI") during the year. At 30 June 2021, the LTI frequency rate was zero and the 12-month moving average Total Reportable Injury Frequency Rate was 9.2.

During the year, the Company implemented safety management systems at all operations. Several safety processes and controls were the focus for the start-up of mining operations, including a Whole-of-Mine Risk Assessment, the implementation of Safe Systems of Work, Emergency Management Preparedness Workforce Training and the establishment of Mines Rescue Teams. The Department of Mine Industry Regulation and Safety