Annual Report 2021

Extracted Document Text

This is a readable excerpt of the EGM normalized Markdown text. It helps search engines and researchers understand PDF, filing, or company-document content while the original source remains authoritative.

# Annual Report 2021

Source: https://www.emeraldresources.com.au/wp-content/uploads/2023/09/2021-27-Sep-June-2021-Annual-Report.pdf
Published: 2021-09-30T00:00:00+00:00
Fetched: 2026-05-12T14:52:32.175+00:00
Source artifact: 8a883f9d-d876-4946-a118-4a7f293eee0b
Normalizer input: text

## Content

# Annual Report 2021
ABN 72 009 795 046
2021 Annual Report
Contents
CORPORATE DIRECTORY ..............................................................................................................................................................1
CHAIRMAN’S LETTER ...................................................................................................................................................................3
CHAIRMAN’S LETTER ...................................................................................................................................................................4
DIRECTORS’ REPORT ....................................................................................................................................................................5
SUSTAINABILITY REPORT ........................................................................................................................................................... 38
CORPORATE GOVERNANCE STATEMENT ...................................................................................................................................46
AUDITOR’S INDEPENDENCE DECLARATION ................................................................................................................................60
FINANCIAL STATEMENTS ........................................................................................................................................................... 61
DIRECTOR’S DECLARATION ........................................................................................................................................................ 93
INDEPENDENT AUDITOR’S REPORT ............................................................................................................................................ 94
ADDITIONAL SHAREHOLDER INFORMATION .............................................................................................................................. 98
ANNUAL MINERAL RESOURCE & ORE RESERVE STATEMENT.................................................................................................... 100
SCHEDULE OF MINERAL TENEMENTS ....................................................................................................................................... 102
Cover photo by Ben Marshall
Emerald Resources NL | 1
_____________________________________________________________________________________________________________________________
CORPORATE DIRECTORY
Non-Executive Chairman
Simon Lee AO
Managing Director
Morgan Hart
Executive Director
Michael Evans
Non-Executive Directors
Ross Stanley
Mark Clements
Company Secretary
Mark Clements
Principal & Registered Office
1110 Hay Street
West Perth WA 6005
Telephone: +61 8 9286 6300
Facsimile: +61 8 6243 0032
Share Registry
Automic Group
Level 2, 267 St Georges Terrace
PERTH WA 6000
Telephone: 1300 288 664
Auditors
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
PERTH WA 6000
Bankers
National Australia Bank
50 St Georges Terrace
PERTH WA 6000
Macquarie Bank Limited
Level 23, 240 St Georges Terrace
PERTH WA 6000
Solicitors
Steinepreis Paganin
16 Milligan Street
PERTH WA 6000
Norton Rose Fulbright
108 St Georges Terrace
PERTH WA 6000
Securities Exchange Listing
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
Code: EMR
Website Address
www.emeraldresources.com.au
Emerald Resources NL | 2
_____________________________________________________________________________________________________________________________
CHAIRMAN’S LETTER
Dear Fellow Shareholders
In my last letter to you I very much looked forward to reporting back to you on the success of our vision to delivering
upon our strategy to become the first modern large-scale Cambodian gold producer. It gives me great pride to report
that this transformational goal has been achieved.
In a year in which the COVID-19 pandemic has brought with it restrictions in Australia and Cambodia I can share the
absolute pride and sense of achievement with our unwavering staff, trusted contractors and suppliers in Australia and
Cambodia who have battled unprecedented challenges to remain categorically focused on meeting our target of
commissioning and first gold production from the Okvau Gold Mine on time and on budget.
This could not have been achieved without our experienced executive and management team led by Managing
Director Morgan Hart and Executive Director, Michael Evans.
This also could not be achieved without the support and collaborative efforts from the Government of Cambodia and
its people. We thank the Cambodian Prime Minister, Samdech Akkak Moha Sena Pedey Techo Hun Sen, the Ministry
of Mines & Energy and its Minister, His Excellency Suy Sem, Secretary of State, His Excellency Meng Saktheara and the
broader MME teams who have given continuous support and assistance with the development of this Okvau Gold
Mine. We thank them for their transparent and collaborative efforts conducted in a professional manner to fully license
the project for development. The tireless efforts of all stakeholders over many years from exploration through
development have contributed ultimately to the Company becoming a gold producer today.
There are also a number of other Ministries and Departments we wish to thank for their assistance from when we first
invested in Cambodia to where we are now. These include Academy General His Excellency Dr Aun Pornmoniroth,
Deputy Prime Minister, Minister of Ministry of Economy & Finance and His Excellency Dr Say Samal, Minister of the
Ministry of Environment and His Excellency Keo Rottanak. Minister attached to the Prime Minister, Managing Director
of Electricite du Cambodia. Their support and assistance throughout the life of the project has been a major factor and
crucial to its successful development.
This success is a reflection of our dedicated employees, locals and internationals who have demonstrated great effort
and hard work during the year.
We thank our trusted and respected strategic partner, the Sprott Group who backed the strong development
credentials of the Emerald team which, combined with Sprott’s financial strength, ensured the Okvau Gold Mine was a
possibility.
We thank our advisors, Euroz Hartleys and the globally recognized institutional shareholders who demonstrated their
faith in the Okvau Gold Mine and the potential for Emerald and our local subsidiary, Renaissance Minerals (Cambodia)
Limited becoming the first modern large-scale Cambodian gold producer.
We have great pride in celebrating our success with MACA Mining’s local company, OPMS (Cambodia) and Outotec
who we have worked closely with on previous development projects and who have once again shown that having such
experienced operators work alongside our team gave us great confidence in the Okvau Gold Mine.
Our success creates value for our shareholders but also benefits the people of Cambodia who have become part of our
family.
At Emerald, our focus is on sustainable development and to demonstrate the Company’s commitment to the
environment and local communities which may be affected by our operations we have supported several community
and environmental based initiatives including tree planting programs and funds for water wells to improve access to
water for remote villages.
These contributions to the health and wellness of local communities will evolve as we continue to develop our
friendships and partnerships with the local community and stakeholders.
Emerald recognises the importance of its people in building a strong and successful organisation, particularly in
developing a new operation. To achieve this, we have focused on developing the right culture across the organisation,
which is strongly based on a Board, executive team and key staff who demonstrate the right attributes, qualities and
share a strong belief of the benefits of our engagement and development in Cambodia for our employees and the
Cambodian people in general.
We pride ourselves on placing the highest priority on the health and wellbeing of our people, contractors and
stakeholders. Our team in Cambodia and Australia have implemented suitable protocols to minimise the potential
transmission of COVID-19 and strict adherence to Government directives. I am pleased to report that the Company has
created a workplace that is free from serious injuries while advancing construction activities and we will continue to
prioritise this going forward.
Emerald Resources NL | 3
_____________________________________________________________________________________________________________________________
CHAIRMAN’S LETTER
I also congratulate our experienced management team for their ongoing effort to critically examine opportunities to
expand our regional footprint in Cambodia.
We are excited about the potential for substantial increases in resources and reserves at and around Okvau and we
have similar hopes for discovering further economic resources in the Company’s large exploration licences in the wider
region. Our goal is to become a multi-asset gold producer and we continue to assess viable global gold projects to
accompany the Okvau Gold Mine.
On behalf of the Board, I cannot overstate the pride the Board has in the efforts of everyone that has contributed to
the success of the Company to date and the manner in which our employees, consultants and contractors have
conducted themselves as representatives of Emerald and Renaissance Minerals (Cambodia) to the people of Cambodia.
I look forward to reporting back to you this time next year on the success of our vision to deliver a highly profitable
gold mine for the benefit of our shareholders, staff, contractors and people of Cambodia.
Yours faithfully
Simon Lee AO
Chairman
Emerald Resources NL | 4
_____________________________________________________________________________________________________________________________
DIRECTORS’ REPORT
The Directors of Emerald Resources NL (‘Emerald’ or ‘the Company’) submit herewith the consolidated financial
statements of the Company and its controlled entities (‘consolidated entity’ or ‘Group’) for the year ended 30 June
2021 in order to comply with the provisions of the Corporations Act 2001.
Directors
The following persons were Directors of Emerald during the whole of the financial year and up to the date of this
report, unless otherwise stated:
Simon Lee AO Non-Executive Chairman
Morgan Hart Managing Director
Michael Evans Executive Director
Ross Stanley Non-Executive Director
Mark Clements Non-Executive Director
Principal Activities
The principal activity of the consolidated entity during the financial year was the development of the Company’s 100%
owned Okvau Gold Mine and mineral exploration and evaluation activities at its exploration assets, primarily in
Cambodia. Given the successful licencing and financing of the Okvau Gold Mine during the year, the focus of the
consolidated entity’s principal activities during the financial year changed to development activities at the Okvau Gold
Mine.
Operating Results
The loss attributable to owners of the Company after providing for income tax amounted to $16,700,000 (2020:
$11,471,000).
Dividends Paid or Recommended
The directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a
dividend to the date of this report.
Financial Position
The consolidated entity has $23 million in cash and cash equivalents as at 30 June 2021 (2020: $136 million) which
includes the full draw down of the US$60 million Sprott facility. During the current year the Company completed
construction of the Okvau Gold Mi

[Excerpt trimmed for readability. Open the original source for the complete filing or document.]