ABX GROUP LIMITED — Annual Report 2021

Mar 30, 2021

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Page 1

Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Table of Contents	Page
CORPORATE DIRECTORY	3
CHAIRMAN’S REVIEW 2020	4
REVIEW OF OPERATIONS	5
DIRECTORS’ REPORT	13
REMUNERATION REPORT – AUDITED	18
AUDITOR’S INDEPENDENCE DECLARATION	23
CORPORATE GOVERNANCE STATEMENT	24
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME	37
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	38
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	39
CONSOLIDATED STATEMENT OF CASH FLOWS	40
NOTES TO THE FINANCIAL STATEMENTS	41
DIRECTORS’ DECLARATION	68
INDEPENDENT AUDITORS’ REPORT	69
SHAREHOLDER INFORMATION	73

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Gladstone
Yarwun Refinery Boyne Island Smelter
ABx Project Location Qld Alumina Refinery
Bundaberg
Binjour Project Name
Binjour
Major Ports Toondoon ML
Aluminium Smelter
Alumina Refinery
Road Infrastructure Brisbane
Rail Infrastructure
Inverell
Tomago
Smelter
Newcastle
Sydney
Taralga
Port Kembla
Penrose
Canberra
Melbourne
Bell Bay Smelter
Fingal Rail
Bald Hill Mine
Hobart
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Figure 1: ABx projects, transport routes, ports, alumina refineries and aluminium smelters.

ABx’s bauxite projects from South to North:

1. Northern Tasmania, south of Bell Bay Port (operating mine at Bald Hill completely rehabilitated. Mine Lease Application process commenced at Fingal Rail)

2. Southern NSW Taralga & Penrose Quarry in pine plantation forest, west of Port Kembla (high grade speciality bauxite deposit)

3. Binjour Bauxite Project, southwest of Port of Bundaberg (Mining Lease Application)

NEW PROJECTS IN 2020

1. Alcore Limited research success, producing commercial grade aluminium fluoride (AlF3), including using fluorine recovered from waste products from two aluminium smelters

2. Rare Earth Elements (REE) discovered in Binjour, QLD – easily leached mineralisation

NEW PROJECTS IN 2021

1. ABx commences Mining Lease Application for the large cement-grade Fingal Rail mine

2. ABx exploration discovered Rare Earth Elements (REE) in Northern Tasmania. Testing of leachable-type pending.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

CORPORATE DIRECTORY

Australian Bauxite Limited

ACN 139 494 885 ABN 14 139 494 885

Directors

Paul Lennon (Non-Executive Chairman) Ian Levy (Managing Director & CEO) Ken Boundy

Registered and Corporate Office

Level 5, 52 Phillip Street Sydney NSW 2000 Telephone: +61 2 9251 7177 Fax: +61 2 9251 7500 Email: corporate@australianbauxite.com.au Website: www.australianbauxite.com.au

Auditor

K.S. Black & Co Level 5, 350 Kent Street Sydney NSW 2000 Telephone: +61 2 8839 3000

Bankers

Australia & New Zealand Banking Group Limited 20 Martin Place Sydney NSW 2000 Telephone: +61 2 9227 1818

St George Bank Limited Level 14, 182 George St Sydney NSW 2200 Telephone: +61 2 9236 2230

Company Secretary

Henry Kinstlinger

Share Registry

Computershare Investor Services Pty Limited Level 3, 60 Carrington Street Sydney NSW 2000, Australia Telephone: 1300 327 328 or +61 2 8234 5000

ASX Code – ABX

Australian Bauxite Limited shares are listed on the Australian Securities Exchange.

This financial report covers the Consolidated Entity consisting Australian Bauxite Limited and its controlled entities.

Australian Bauxite Limited is a company limited by shares, incorporated and domiciled in Australia.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

CHAIRMAN’S REVIEW 2020

Dear Shareholder,

The 2020 pandemic has been a watershed for both ABx and its technology subsidiary ALCORE Limited (Alcore) .

Bauxite contracts delivered: ABx delivered fertiliser-grade bauxite, starting in April and May during the pandemic lockdown. Supply of fertiliser helped the drought recovery and ABx is proud to have done its best under duress.

Demand for cement recovered in late 2020 and ABx’s Tasmanian bauxite project at Bald Hill delivered a 33,500 tonne shipment of cement-grade bauxite in August that is being used in major Australian infrastructure construction such as bridges that require high late strength concrete.

New Tasmanian mine: As economies recover from the pandemic, infrastructure construction is increasing and ABx is responding by establishing a new mine at Fingal Rail that can produce large tonnages of cement-grade bauxite for many years. ABx hopes to be part of the planned improvements in shipping efficiency from northern Tasmania.

New Queensland mine: ABx’s Binjour project in QLD was delayed by interstate travel restrictions. Binjour is ABx’s flagship project for supply to the aluminium industry in the Indo-Pacific. After a 10 month delay, ABx lodged its Mining Lease Application for the Sunrise Bauxite Project at Binjour in late 2020. The Sunrise Project is fully financed by ABx’s marketing partner, Rawmin Mining of India.

Technology adding value: ABx continues to improve its technology to maximise the value of its unique bauxite. ABx’s TasTech physical beneficiation technology is being applied to its Tasmanian bauxite at Fingal Rail and at the Sunrise Bauxite Project in Binjour in QLD. Testwork is also being undertaken on speciality high quality bauxite from Penrose Quarry located inland from Port Kembla NSW.

Alcore reaches Pilot Plant stage: ABx’s 88% owned subsidiary, Alcore is conducting advanced research at the Alcore Research Centre in Central Coast NSW, which is the only laboratory of its type in the southern hemisphere. Alcore is developing an Australian-owned technology to produce aluminium fluoride (AlF3) that is needed in aluminium smelters and is being investigated for next generation lithium-ion batteries. Alcore can also produce a pure refined hydrocarbon (Corethane) which can be a substitute for gas and sulphur-free diesel. Alcore seeks to establish its first production plant in Bell Bay, Tasmania.

Alcore has developed a process for producing commercial-grade AlF3 using fluorine recovered from a waste product from aluminium smelters. It is also well-advanced in producing commercial grade AlF3 using aluminium extracted from aluminium smelter dross waste. The cost-savings achieved by using these two waste products can deliver strong profits for Alcore’s planned initial production plant with an annual capacity of 10,000 tonnes. Alcore can “Refine & Recycle” by-product wastes from aluminium smelters and convert them into AlF3, which can be sold back to the smelters, thereby increasing recycling by smelters and other environmental benefits sought by several electric vehicle manufacturers. Processing low-cost bauxite can further enhance Alcore’s economics.

Alcore has commenced the design of a pilot plant to confirm engineering and design for its first production module by year-end.

Alcore is led by its CEO, Dr Mark Cooksey, a former Senior Principal Research Leader at CSIRO and Senior Engineer in Rio Tinto’s aluminium division. Alcore has executed a Memorandum of Understanding with the Japanese global trading company Sojitz Corporation for marketing into some sectors of the global aluminium industry.

AlF3 markets changing: Australasian aluminium smelters have sourced most of their AlF3 from China but Chinese exports of AlF3 have recently fallen from over 8,000 tonnes to less than 1,000 tonnes per month. Alcore’s production will increase the security of supply of AlF3, which is a strategically vital mineral product for the Australasian aluminium smelting industry.

Corona Virus Pandemic Response: ABx and its subsidiary companies continue to take all appropriate precautions against COVID-19. The safety of our employees and customers is paramount and the company remains cautious.

Exploration for Rare Earths: ABx has discovered Rare Earth Elements (REE) that are loosely adhered to clays within the bauxite strata. Our exploration is targeting deposits of REE needed for electric vehicles and can be quickly developed by leaching technology rather than requiring complex, expensive hard-rock processing plants. This exciting exploration initiative is enhanced by our expertise at both the ABx and Alcore laboratories.

I thank our employees, shareholders, customers and contractors for their continuing support.

Yours sincerely,

Paul Lennon Chairman

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

REVIEW OF OPERATIONS

This Review of Operations covers the 12 month period to 31 December 2020.

Australian Bauxite Limited ( ABx or the Company ) is a bauxite production and high technology research company listed on the Australian Securities Exchange ( ASX ) for 11 years with ticker code ABX .

ABx currently holds 10 bauxite tenements in Queensland, Tasmania and NSW covering 321km[2] . In December, ABx completed rehabilitation of its Bald Hill bauxite mine project at Campbell Town in northern Tasmania (see Figure 1) and is applying for a mining lease at Fingal Rail near Conara that will be a long-term mine. ABx’s bauxite is gibbsite trihydrate (THA) bauxite that can be processed into alumina at low temperature. It is a bauxite free of quartz, alkalis and base metals, making it ideal for cement-making. Zones of grey-white bauxite may be suitable for manufacture of refractories, abrasives and chemicals. ABx’s JORC compliant Mineral Resources total 137.1 million tonnes (inferred 64.4 Mt, indicated 72.7 Mt – see resource statement in ASX release 27 January 2021. All tenements are 100% owned, unencumbered and free of third party royalties.

During 2020, ABx made sales of 33,504 tonnes of cement-grade bauxite and 2,225 tonnes of fertiliser-grade bauxite at good operating margins.

ABx’s bauxite upgrades into high value products via two new technologies, namely TasTech physical upgrading and chemical upgrading by ABx’s 88% owned subsidiary, ALCORE Limited ( Alcore ).

Alcore has completed 18-months of testwork at its NSW research centre and has regularly produced aluminium fluoride ( AlF3 ) with commercial grade composition. AlF3 is a high-priced essential ingredient in aluminium smelting and potentially in next-generation lithium-ion batteries.

Corporate

During the year, the Company issued 4,337,309 new shares to consultants and directors who opted to take shares in lieu of cash consideration for their services to the Company. Shares on issue total 150,304,314.

Operations and Exploration

Bauxite Refining Technology

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Aluminium fluoride (AlF3) is essential for aluminium smelters, where it is regularly added to maintain optimum chemistry and efficiency. There is no substitute and Australasian smelters import 100% of their requirements, mainly from China. Without a domestic producer, security of supply is paramount.

Alcore’s new process produces AlF3 from low-cost raw materials, including recycled aluminium smelter wastes. It will be lower-cost and increase both security of supply and environmental benefits for Australasian aluminium smelters.

During 2020, Alcore appointed new CEO, Dr Mark Cooksey (former Senior Principal Research Leader at CSIRO and Senior Engineer in Rio Tinto’s aluminium division) to develop and commercialise the Alcore process for AlF3 production. Alcore is an 88% owned subsidiary of ABx that is developing the aluminium-related portion of the patent application CORE Technology.

Alcore works closely with major aluminium producers to secure feedstock materials, assess product quality and plan Alcore’s path to market. In August 2020, Alcore entered into a Memorandum of Understanding ( MoU ) with the Japanese global trading company, Sojitz Corporation which owns alumina assets in Australia and other mineral resources worldwide. The MoU provides a framework for Alcore and Sojitz to explore a potential business relationship with respect to AlF3.

Aluminium Smelter Wastes

Most aluminium smelters generate a waste material (‘ tapped bath’ ) that is sold to other smelters that require bath, particularly new smelters. However, in the last decade, the global bath market has moved into oversupply and smelters are increasingly finding it difficult to sell tapped bath, and increasingly do so at a loss. The likelihood that China will ban bath imports will exacerbate the problem.

Dross smelter waste forms on top of the molten aluminium in casting furnaces and contains significant aluminium metal and aluminium oxide. Aluminium metal can be recovered, but the residue is sold at a loss, e.g. as an additive for steelmaking. Many smelters have significant stockpiles of dross that are an ongoing cost, environmental and community relations issue.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Alcore Process

Alcore recovers fluorine from tapped bath and selectively reacts metal oxides to produce metal fluorides. The selective reaction of metal oxides allows the use of aluminium-rich, low-cost raw materials, such as bauxite and dross, because the impurities don’t report to the AlF3 product.

Initial production will commence using aluminium hydroxide as a risk-minimisation strategy (still economically attractive), but Alcore will then start using low-cost feed materials such as bauxite or dross, which provides a major cost advantage for Alcore.

The Alcore process also generates some potentially valuable, non-hazardous by-products, such as iron oxide powder, silica fume and titanium dioxide. It will also close waste loops in aluminium smelters to further enhance their environmental performance.

Commercialisation Plan

Alcore’s first commercial plant will be located at Bell Bay, northern Tasmania, near an existing port and hydropowered aluminium smelter. This will be the first AlF3 plant in Australia.

Alcore has close relationships with industrial and government stakeholders and will seek direct government assistance from both Federal and Tasmanian governments to expedite this important project that will create 40-60 direct highly skilled jobs.

The initial capacity is intended to be 10,000 t/y AlF3, which would supply about 35% of the demand from the Australasian aluminium smelters. The ultimate capacity is intended to be 30,000-60,000 t/y.

Alcore will develop other business streams, potentially including high purity AlF3 and high purity alumina (HPA), as demand increases for these products for lithium-ion batteries. Alcore R&D can enhance a suite of industrial processes.

Initial production will commence using aluminium hydroxide, as it is economically attractive, lower risk and offers the fastest path to market. Alcore will then start using low-cost feed materials such as bauxite or dross, which provides a major cost advantage.

Security of Supply

Australasian smelters import 100% of their AlF3 requirements, mainly from China. Chinese AlF3 exports to all countries, including Australia, recently decreased to a 2-year low – see Figure 3 The reasons for this are unclear but it illustrates the risk of being dependent on overseas supply. An Alcore AlF3 plant in Australia will increase security of supply for Australasian smelters.

Process Economics

AlF3 prices quoted monthly typically range from US$1,000/t to US$1,800/t ex China, before transport costs – see Fig 2. Producers’ costs range between US$1,000/t and US$1,700/t (Roskill) and raw materials typically represent 75% of the production cost; mainly fluorspar and aluminium hydroxide.

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Aluminium Fluoride AlF3 Chinese Export Prices & Tonnes Source: Chinese Customs The operating cost for
$2,000 20,000 Alcore’s initial production,
$1,800 18,000 using aluminium
$1,600 16,000 hydroxide, is estimated to
Price be US$800-$950 per tonne
$1,400 14,000
of AlF3. This will place
$1,200 12,000 Alcore in the lowest cost
$1,000 10,000 quartile of global
Tonnes production. Future cost
$800 Exported 8,000
reductions from using
(right axis)
$600 6,000 bauxite or dross are
$400 4,000 upsides.Future growth will
enhance returns and other
$200 2,000
technologies will arise from
$0 0
this core business.
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21
Tonnes per month
Export Price US$/tonne FOB ChinaAlF3
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Figure 2 AlF3 prices & tonnes

Sold on an FOB basis to aluminium smelters in North America, India, Australasia, Middle East, Japan, Korea, SE Asia, Russia & Central Asia

Prices are reported daily and monthly

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Intellectual Property

Alcore holds the following licences to CORE technologies that are owned by CORE Intelligence Australia Pty Ltd (CIAPL) :

• Worldwide (Exclusive)

• Refining of bauxite, aluminium-rich materials and waste streams.

• Refining of manganese ores, manganese-rich materials and waste streams.

• Refining of coal for the production of corethane as the energy source for Alcore’s refining plants

• • Australia (Non-exclusive)

• All CIAPL technologies, except for the production of graphite

• Tasmania (Exclusive)

• All CIAPL technologies, except for the production of graphite

Furthermore, Alcore has developed significant knowhow for all parts of the process, and some is patentable.

Competitor Analysis

To our knowledge, no other party is attempting to (1) Recover fluorine from tapped bath, or (2) Produce AlF3 from bauxite or dross. Strict safety requirements for the use of concentrated fluorine acids represent a significant barrier to entry for potential competitors.

Technical Progress

Alcore’s laboratory is the only laboratory of its type in Australia, and one of only a few in the world, that is suitable for operation with concentrated fluorine acids.

Experiments typically involve 0.2-1.2 kg of feed materials. Each process step has been evaluated in considerable detail by conducting multiple experiments to systematically investigate the effect of the range of process variables. The critical prerequisites for the recovery of fluorine from tapped bath, and the production of AlF3 from aluminium hydroxide, have been routinely achieved in the laboratory during 2020.

Engineering validation has commenced to reduce the technical risk for the first commercial plant. Evaluation of some process steps in a 10 kg/h pilot plant will finalise the first production plant design. Alcore has begun engagement with selected international engineering companies to accelerate the development of the pilot plant and commercial plant.

Figure 3: the $2.5m Alcore Research Centre

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Figure 4: the inner lab

Alcore’s sophisticated laboratory in Berkeley Vale, Central Coast NSW is uniquely licensed for advanced chemical experiments, under strict safety & environ-mental systems with qualified staff.

It has the capacity to deliver technical, strategic, environmental and economic outcomes not previously achievable using standard industry laboratories and processes.

The lab has preparation equipment, 3 large fume cabinets, high-technology fume scrubbers, driers and furnaces, showers, microscopes & Draegar air monitor (far wall)

Figure 5 (above): AlF3 product produced in Alcore laboratory. Alcore has produced more than 50 samples for assessment by external laboratories and potential customers. The AlF3 product consistently meets typical customer specification

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Bauxite operations

During 2020, ABx sold 33,405 tonnes of cement-grade bauxite and 2,225 tonnes of fertiliser-grade bauxite with sales continuing. At 31 December 2020, ABx completed rehabilitation and hand-over of the Bald Hill bauxite mine site back to the landholder. In February 2021, ABx commenced the application process for a new, larger bauxite mine at Fingal Rail near Conara in northern Tasmania – see Figure 1.

Dispatch Date	Sale Tonnes		Dispatch Date	Sale Tonnes
20/01/2016 8/04/2016 7/08/2016 9/09/2016	446 5,557 35,913 89		2015 2016 2017 2018 2019 2020	195 1,889 3,318 2,390 3,204 2,225
19/09/2017 28/09/2017 30/10/2017 30/04/2019 21/08/2020	30,000 5,000 669 32,477 33,405
			Fertiliser Sub Total	13,221
Cement Sub Total	143,557		Total all sales	156,778

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Table 1: Bauxite Sales

Bald Hill Bauxite Project Northern Tasmania

Figure 6

Arial view of ABx’s blending of highspecification cement-grade bauxite by loading trucks from alternate product stockpiles.

At all stages in production and delivery, ABx maximises the homogeneity of its products so that customers can be assured of the quality of ABx’s product throughout the entire shipload purchased from ABx.

Roads in the load-out area are constructed and maintained as a quarantined weed-free site for road trucks.

Markets for metallurgical-grade bauxite have been oversupplied and becoming vertically integrated with Chinese aluminium companies buying mines in West Africa to supply bauxite to Chinese alumina refineries.

Demand for metallurgical bauxite continues to grow and some customers seek diversity of supply. ABx continues to be involved in the market for metallurgical bauxite dialogues. ABx has ongoing negotiations for bauxite sales from the Binjour project in QLD when approved for production.

ABx supplies cement and fertiliser markets at good prices but modest tonnages. During 2020, demand for seaborne traded cement grade bauxite has increased, especially from very large cement plants in India but prices are currently too low for ABx to supply. This may change as Tasmania improves transport infrastructure and as demand continues to grow.

Rehabilitation

By year-end, ABx and its contractors completed all rehabilitation at the Bald Hill bauxite project to a high standard and has been returned to agricultural use. In accordance with ABx’s paramount corporate policy, ABx has left the land better than we found it. ABx’s expertise in rehabilitation is improving each year at all ABx operations.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

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Figure 7

Rehabilitation in October 2020, completed in December 2020.

The grid pattern arises from rock-picking and reseeding technologies. Weed suppression was conducted on all land within the mining lease.

All disturbed land at Bald Hill mine was fully rehabilitated by year-end and returned to the landholder unconditionally.

A rocky block of grazing land was mined since December 2014 and has been reinstated as partly cropping land and high quality grazing land.

Some screened bauxite fines were used for conditioning sandy soils to improve moisture retention in high-productivity cropping land.

Figure 8

Mining in February-March 2020.

Topsoil is stockpiled and kept fresh by a quick transition from mining to rehabilitation and restoring the soil.

Mining and processing of each bench in the bauxite horizon produces a suite of bauxite products that can be blended to meet customer’s specifications.

As a result of clay-research that commenced at the Binjour deposit in Queensland,, a crucial part of ABx’s proprietary TasTech physical upgrading technology commences at the mine extraction stage.

Figure 9

Loading 33,405 tonnes shipment of bauxite at Bell Bay Port in August 2020.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Sunrise Bauxite Project at Binjour, Queensland

In early 2020, ABx’s board of directors approved the lodgement of a mining lease application at Binjour located 115km west of Bundaberg, Queensland. The project has been named the Sunrise Bauxite Project. Pre-production and working capital costs are fully funded by ABx’s marketing partner, Rawmin Mining and Industries of India (Rawmin) .

A tripartite Memorandum of Understanding (MoU) between ABx, Rawmin and Tianshan Aluminium of China was executed in 2019 for the sale of 0.5 to 1.5 million tonnes of bauxite from Sunrise Bauxite Project to Tianshan’s new low temperature refinery in southern China. Prospective customers in India are now restarting their expansions of alumina refineries that had been stalled by the pandemic.

ABx staff were prevented from entering Queensland for most of the year and the Mining Lease application was delayed until late 2020, approximately 10 months later than planned. The approval processes for the mining lease, transport systems and shipping is now being progressed with the Office of the Coordinator General.

ABx considers Sunrise Bauxite Project to be the best source of THA (THA ) bauxite in Queensland. Bauxite resources total 37 million tonnes (see Resources statement) of 3 to 15 metre thick bauxite, including 10 million tonnes suitable for simple bulk mining and shipping of bauxite averaging 44% to 45% Al2O3 & 5% SiO2 which is ideal “metallurgical bauxite” for producing aluminium metal via the low-temperature Bayer alumina refineries.

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Deep-water anchorage
within Bundaberg port
boundary
Binjour Sunrise Bauxite Project
Toondoon
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Figure 10

Location of Sunrise Bauxite Project at Binjour, QLD

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Figure 11: Bulk sample test site

Bulk sampling & processing tested the main production parameters.

Grades: Results showed that Sunrise Bauxite Project can meet the required marketable grades.

Operations: Dust, noise and rehabilitation options were assessed.

Rehabilitation: ABx has a postmining rehabilitation plan to leave the land better than we found it.

Bulk dry-screening of a 28 tonne bulk sample satisfactorily tested methods that are expected to be used during production.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Exploration for Rare Earth Elements

Unusual clays at Binjour showed interesting Rare Earth Element (REE) patterns prompted ABx to explore more widely. ABx has discovered REE that are loosely adhered to clays within the bauxite strata, especially in northern Tasmania. It is uncertain whether or not these REE are the “ionic clay” type of REE similar to those mined by leaching in southern China. Testwork is continuing at ABx’s bauxite laboratory in Tasmania and could be further researched at the Alcore Research Centre in NSW.

ABx is targeting deposits of REE that are enriched in Neodymium and Praseodymium which are the REE species that form super magnets needed for electric vehicles. ABx seeks deposits that can be quickly developed by leaching technology rather than requiring complex, expensive hard-rock processing plants.

Qualifying statements

General : The information in this report that relate to Exploration Information and Mineral Resources are based on information compiled by Jacob Rebek and Ian Levy who are members of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Rebek and Mr Levy are qualified geologists and Mr Levy is a director of Australian Bauxite Limited.

Mainland : The information relating to Mineral Resources on the Mainland was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. Mr Rebek and Mr Levy have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of exploration Results, Mineral Resources and Ore Reserves. Mr Rebek and Mr Levy have consented in writing to the inclusion in this report of the Exploration Information in the form and context in which it appears.

Tasmania : The information relating to Exploration Information and Mineral Resources in Tasmania has been prepared or updated under the JORC Code 2012. Mr Rebek and Mr Levy have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which they are 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.

Mr Rebek and Mr Levy have consented in writing to the inclusion in this report of the Exploration Information in the form and context in which it appears.

Disclaimer Regarding Forward Looking Statements

ASX announcements (Announcement) contains various forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are inherently subject to uncertainties in that they may be affected by a variety of known and unknown risks, variables and factors which could cause actual values or results, performance or achievements to differ materially from the expectations described in such forward-looking statements.

ABx does not give any assurance that the anticipated results, performance or achievements expressed or implied in those forward-looking statements will be achieved.

Patent

Refined Ore Industries Ltd (ROIL) was the owner of the CORE process technology via ROIL’s intellectual property company, Berkeley Process Technologies Pty. Ltd which issued a global exclusive licence for the aluminium-related portion of the CORE process technology to ABx in November 2017 and ABx has issued a global exclusive sub-licence to Alcore when Alcore was incorporated on 1 July 2018.

After a company restructure and expansion of the patent definition to cover isolation and extraction of mineral compounds, metals, metalloids, alloys and elements from waste streams, mineral ores, recyclable commodities, industrial by-products and mixed substances, the holding company is now named Core Refining Limited (CRL) and the intellectual property company is Core Intelligence Australia Pty Ltd (CIAL) which holds the Patent Application No. 2019904311 and the global exclusive licences to ABx and ALCORE continue in force.

CRL’s CORE process technology involves the refining of a wide range of ore types using a combination of fluorine acids and related thermal energy process steps. The technology that is licensed to ABx and Alcore by CRL is part of CRL’s broader Core technology.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Table 2: Tenement information required under LR 5.3.3

	Tenement No.	Location
	New South Wales
	EL 6997	Inverell
	EL 7357	Taralga
	EL 8600	Penrose Quarry
	Queensland
	ML 80126 25146	Toondoon ML
	Tasmania
	EL 7/2010	Conara
	EL 9/2010	Deloraine
	EL 18/2014	Prosser’s Road
	ML 1961 P/M	Bald Hill Bauxite

Notes: On 1 January 2021, a new QLD exploration tenement and the Sunrise Bauxite Project mining lease were applied for – approvals pending.

All tenements are in good standing, 100% owned and not subject to any Farm-in or Farm-out agreements, third-party royalties nor are they encumbered in any way.

Table 3 : ABx JORC Compliant Resource Estimates

Region	Resource Category Thickness (m) Million Tonnes	Al2O3 SiO2 A/S Fe2O3 TiO2 LOI	Al2O3Avl @ 143°C% Rx SiO2 % Avl/Rx ratio	% Lab Yield	O'Burden (m) Int.Waste (m)
		% % ratio % % %
CAMPBELL TOWN	Inferred 1.3 3.0	42.6 3.5 12 25.4 3.5 24.6	36.7 3.0 12	50	2.1 0.1
AREA TASMANIA7	Indicated 1.4 3.2	42.5 3.2 14 26.4 3.0 24.5	36.2 2.8 14	55	1.8 0.1
	Total 2.7 3.1	42.5 3.3 13 25.9 3.3 24.5	36.5 2.9 13	52	2.0 0.1
Fingal Rail Cement-	Inferred 2.4 3.3	30.9 19.5 -- 35.4 3.9 16.7	-- -- --	--	1.9 0.1
Grade Bauxite8	Indicated 3.9 3.8	31.1 19.0 -- 35.2 4.0 16.9	-- -- --	--	1.7 0.1
	Total 6.3 3.6	31.0 19.2 -- 35.3 4.0 16.8	-- -- --	--	1.8 0.1
DL-130 AREA TAS1	Inferred 5.7 3.8	44.1 4.3 10 22.8 3.1 25.0	37.6 3.2 12	55	1.5 0.1
	Total Tas 14.7 3.6	38.2 10.5 n.a. 28.7 3.5 21.4	n.a. n.a. n.a.	54	1.7 0.1
BINJOUR QLD2	Inferred 14.2 4.3	40.7 7.3 6 24.7 4.3 22.1	32.3 6.7 5	80	8.5 0.3
DSO, Screen & Cement	Indicated 22.8 4.0	33.5 19.2 2 24.9 4.2 16.8	15.8 17.4 1	63	6.6 0.3
	Total 37.0 4.1	36.2 14.6 3 24.9 4.2 18.8	22.1 13.3 2	69	7.3 0.3
TOONDOON QLD3	Inferred 3.5 4.9	40.2 7.2 6 25.3 4.9 21.7	32.8 5.2 6	67	1.5 0.0
TARALGA S. NSW4	Inferred 9.9 3.1	40.4 5.7 7 24.6 4.1 22.2	35.2 1.9 18	54	0.1 0.2
	Indicated 10.2 3.7	41.3 5.3 8 25.9 4.0 22.9	36.1 1.9 19	55	0.7 0.4
	Total 20.1 5.6	40.8 5.5 7 25.3 4.0 22.6	35.7 1.9 19	55	0.5 0.3
PDM-DSO* Inferred 7.6 2.5		37.0 6.0 6 38.4 3.5 13.3	22.1* 1.3 17	72	0.2 0.1
	Indicated 10.3 3.1	37.6 3.9 10 40.4 3.7 13.5	22.4* 1.1 20	71	0.7 0.4
	Total 17.8 5.8	37.3 4.8 8 39.6 3.6 13.5	22.3* 1.2 18	72	0.5 0.3
	Total Taralga 37.9 5.7	39.2 5.2 8 32.0 3.8 18.3	35.4 1.6 23	63	0.5 0.3
INVERELL N. NSW5	Inferred 17.5 4.7	39.8 4.8 8 27.7 4.3 22.2	31.0 4.2 7	61	2.3
	Indicated 20.5 4.8	40.6 4.7 9 26.9 4.1 22.5	32.0 4.0 8	60	2.4
	Total 38.0 4.8	40.2 4.7 9 27.3 4.2 22.4	31.6 4.1 8	61	2.4
GUYRA N. NSW6	Inferred 2.3 4.2	41.4 3.6 12 26.2 3.3 24.6	35.0 2.8 13	56	3.4
	Indicated 3.8 5.9	43.1 2.6 16 27.3 3.9 24.5	37.4 2.0 18	61	4.4
	Total 6.0 5.3	42.5 3.0 14 26.9 3.7 24.5	36.5 2.3 16	59	4.0
GRAND TOTAL A	137.1 LL AREAS	* PDM is Al2O3spinel. Al2O3Avl at 225°C is >35%
Explanations: All resources 100% owned & unencumbered. Res Chemical definitions: Leach conditions to measure available alu 1000°C. "Avl/Rx" ratio is (Al203 Avl)/(Rx SiO2) and "A/S" ratio is A by ALS lab at 0.26mm. Production yields are not directly related tonnages ofpotential extensions,overburden & interburden detrital b		ource tonnage estimates are quoted as in-situ, pre mined tonnages. All assaying done at NATA-registered ALS Laboratories, Brisbane. mina "Al2O3 Avl" & reactive silica "Rx SiO2" is 1g leached in 10ml of 90gpl NaOH at 143°C for 30 minutes. LOI = loss on ignition at l203/SiO2. Values above 6 are good, above 10 are excellent. Tonnage is for bauxite in-situ. Lab Yield is for drill dust samples screened and are typically between 60% and 75%. Tonnages requiring no upgrade will have 100% yield. Resource estimates exclude large auxite and underlyingtransitional bauxite mineralisation. Production will clarifythese materials.

Global Mineral Resources total 137.1 million tonnes

Page 12

Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

DIRECTOR’S REPORT

Your directors present their report together with the financial statements of the parent entity and the consolidated entity (referred to hereafter as the Group ) consisting of Australian Bauxite Limited (the Company ) and the entities it controlled at the end of or during the year ended 31 December 2020.

Principal The principal continuing activities of the Group for the financial year were conducting the activities bauxite exploration and development programs in Queensland, New South Wales, and Tasmania.

Consolidated The net consolidated loss of the Group for the year ended 31 December 2020 was $0.59 results million (2019: net loss $2.47 million). The consolidated loss arises largely from bauxite minerals development and exploration activities during the year in Eastern Australia and Tasmania.

Total Shareholders’ Funds as at 31 December 2020 are $14.94 million (2019: $14.81 million). Additional information on the operations of the Group is disclosed in both the Chairman’s Review and the Review of Operations section of this report.

Review of Information on the operations and financial position of the Group and its business strategies operations and prospects are set out in the Review of Operations on page 5 to 12 of this Annual Report. Dividends The Directors of the Company do not recommend that any amount be paid by way of dividend. The Company has not paid or declared any amount by way of dividend since the commencement of the financial year. Directors The following persons were directors of the Company during the whole of the financial year and up to the date of this report, unless otherwise stated:

Paul A Lennon Non-Executive Chairman Ian Levy Managing Director & CEO Ken Boundy Non-Executive Director

The number of Directors’ Meetings and Directors’ Committee Meetings held, and the number of meetings attended, by each of the Directors of the Company during the financial year were:

ear were:
Directors Paul A Lennon Ian Levy Ken Boundy	Directors Meetings		Remuneration		Audit Committee2
			Committee1
	Attended	Held whilst in office	Attended	Held whilst in office	Attended	Held whilst in office
	9 9 9	9 9 9	1 1 1	1 1 1	2 2 2	2 2 2

1 The Remuneration Committee is made up of the whole board

2 The Audit Committee is made up the whole board

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

INFORMATION ON DIRECTORS AND MANAGEMENT

Directors

Paul Anthony Lennon

Non-Executive Chairman - Appointed on 28 November 2014

	Experience and expertise Other Current Directorships of Listed Companies Former Directorships in the Last Three Years of Listed Companies Special Responsibilities Interests in Shares	Mr Lennon served as the 42ndPremier of Tasmania for 4 years (2004 - 2008) and Treasurer (2004-2006). His experience in the resources sector is considerable. He was the Minister for Infrastructure, Energy and Resources (1998-2002), and later Minister for Economic Development, Energy and Resources (2002-2004) while Mr Lennon was the Deputy Premier of Tasmania from (1998-2004). Aside from this prominent ministerial experience, Mr Lennon has previously held senior positions working for and representing trade organisations and workers throughout the 1980’s. This experience allowed Mr Lennon to lead negotiations with European, UK, American and Chinese companies in commercial matters of state and national significance. None None Chairman Member of the Remuneration and Audit Committee 3,384,869 shares – indirectly held

Ian Levy, BSc (Hons), MSc (Dist) DIC FAusIMM FAIG Managing Director and CEO - Appointed on 23 September 2009

	Experience and expertise Other Current Directorships of Listed Companies Former Directorships in the Last Three Years of Listed Companies Special Responsibilities Interests in Shares	Ian Levy has thirty years senior management experience with small to large mining companies, including WMC, Pancontinental Mining, Gympie Gold and CEO of Allegiance Mining, involving development of bauxite, gold, coal, base metals, nickel and industrial minerals projects from discovery to marketing. He was a former founding Director of Gloucester Coal. He was a member of the Joint Ore Reserves Committee (JORC) for 11 years including 4 years as Vice Chairman and Federal President, Australian Institute of Geoscientists. None None Managing Director and Chief Executive Officer 5,901,316 shares- indirectly held

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Ken Boundy, MBA, M Agr Sc, Fellow of AIM, AIAST

Non-Executive Director - Appointed on 6 June 2012

Experience and expertise Other Current Directorships of Listed Companies Former Directorships in the Last Three Years of Listed Companies Special Responsibilities Interests in Shares	Mr Boundy is a company director, strategy consultant and businessman – with particular interests in international marketing. Previously Mr Boundy was Managing Director of the Australian Tourist Commission (and then Tourism Australia) from 2001 to 2005, following 15 years in leadership roles in the private sector which covered Divisional Head and CEO roles in the food, wine and building materials industries. Non-Executive Director of Net Comm Wireless Limited. None Member of the Remuneration and Audit Committee 2,253,089 shares – indirectly held
Officers Henry Kinstlinger Company Secretary
Experience and expertise	Henry Kinstlinger has, for the past thirty years, been actively involved in the financial and corporate management of a number of public companies and non-governmental organisations. He is currently the Company Secretary of Hudson Investment Group Limited and Frontier Capital Group Limited. He is a corporate consultant with broad experience in investor and community relations and corporate and statutory compliance.

Francis Choy MCom MBA FCPA (HK) FCPA CA

Chief Financial Officer

Experience and expertise Francis Choy has held a number of senior positions in corporate financial management roles throughout Australia and South East Asia. He has extensive experience in project finance, compliance, acquisition and investment appraisals. He has been involved in project financing, financial management of property development and telecommunication projects in South East Asia. He held senior financial roles for numerous public listed companies both in Hong Kong and Australia.

Likely developments

Information on likely developments in the operations of the Group, known at the date of this report has been covered generally within the report. In the opinion of the Directors providing further information would prejudice the interests of the Group.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Risk Management

The Board is responsible for ensuring that risks, and also opportunities, are identified on a timely basis and that activities are aligned with the risks and opportunities identified by the Board.

The Company believes that it is crucial for all Board members to be a part of this process, and as such the Board has not established a separate risk management committee.

The Board has a number of mechanisms in place to ensure that management’s objectives and activities are aligned with the risks identified by the Board. These include the following:

• Board approval of a strategic plan, which encompasses strategy statements designed to meet stakeholders’ needs and manage business risk.

• Implementation of Board approved operating plans and budgets and Board monitoring of progress against these budgets.

Significant changes in nature of activities

Please refer Review of Operations section for details.

Matters subsequent to balance date

At the date of this report, there are no other matters or circumstances which have arisen since 31 December 2020 that have significantly affected or may significantly affect:

• The operations, in financial years subsequent to 31 December 2020, of the Group;

• The results of those operations; or

• The state of affairs, in financial years subsequent to 31 December 2020, of the Group.

Environmental regulations

The Group is subject to significant environmental regulation in respect of its exploration activities as follows:

• The Company’s operations in the State of Queensland involve drilling operations. These operations are governed by the Queensland Government Environmental Protection Act (1994) as reprinted February 2007.

• The Company’s operations in the State of NSW involve exploration activities including drilling. These operations are governed by the Environment Planning and Assessment Act 1979.

• The Company’s operations in the State of Tasmania involve exploration activities including drilling. These operations are governed by the Environmental Management and Pollution Control Act 1994.

• The Company operates within the resources sector and conducts its business activities with respect for the environment while continuing to meet the expectations of the shareholders, employees and suppliers.

• The Company aims to ensure that the highest standard of environmental care is achieved, and that it complies with all relevant environmental legislation. The Directors are mindful of the regulatory regime in relation to the impact of the Company’s activities on the environment.

• To the best of the directors’ knowledge, the Group has adequate systems in place to ensure compliance with the requirements of all environmental legislation described above and are not aware of any breach of those requirements during the financial year and up to the date of the Directors’ Report.

Environmental Code of Practice for Bauxite mineral exploration

The Company is committed to conducting its exploration programs by following industry best practice in accordance with published government guidelines and codes. The following policy is specific to bauxite exploration on the Company’s Eastern Australian bauxite province.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Access to Land

Prior to the commencement of any work, the Company makes contact with landholders/leaseholders and discusses the general aims and types of work likely to be conducted. Discussion with landowners, leaseholders and Native Title Claimants is ongoing. It commences prior to any work being conducted and continues throughout the program and beyond the cessation of exploration work.

The Company establishes conditions of access with landholders and where practicable, signs a written access agreement that sets out conditions and includes a schedule of agreed compensation payments. The Company endeavours to provide landholders with ample warning prior to commencing any work and landholders are kept informed upon commencement, during and upon completion of an exploration program.

Type of Land

The type of land is determined and its inhabitants are assessed to identify areas of particular environmental concern including identification of sensitive areas or areas prone to erosion, water catchment, heritage sites, and areas home to vulnerable and endangered species. Land use is taken into consideration and land under cultivation is not disturbed without the express consent of the landholder.

Mineral Exploration Programs Access

The Company utilises existing tracks for access where possible. Climatic conditions are considered when assessing areas to avoid access during extreme conditions such as during bush fire risk during hot, windy conditions and damage to tracks after heavy rain. Surface disturbances are kept to a minimum.

Drilling

Drilling programs include rehabilitation and where possible holes are positioned in areas requiring little or no clearing. Small, manoeuvrable drill rigs are used to minimise the need for track clearing and to reduce ground compaction. Where required, topsoil is removed and stored separately so that it can be replaced during rehabilitation of the site. Ground sheets are used where required to avoid oil/fuel spills contaminating the soil.

Rehabilitation

Drill sites are rehabilitated as soon as practicable and drill holes are filled and capped where necessary. Landholders are asked to confirm at the end of each program that exploration has been conducted to their satisfaction and that sites have been rehabilitated.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

REMUNERATION REPORT – AUDITED

This information provided in this Remuneration Report has been audited as required under section 308 (3C) of the Corporations Act 2001.

This report outlines the remuneration arrangements in place for Directors and Executives of the Company.

Remuneration committee

The Remuneration Committee, which presently consists of the whole board, will serve to determine the remuneration levels of any Executive Director’s remuneration (including base salary, incentive payments, equity awards and service contracts) and remuneration issues for Non-Executive Directors.

The Committee meets as often as required but not less than once per year.

The Committee met once during the year as disclosed in the table of Directors Meetings disclosed on page 13. Options granted to directors and key management personnel do not have performance conditions. As such the Group does not have a policy for directors and key management personnel removing the “at risk” aspect of options granted to them as part of their remuneration.

Directors’ and other Key Management Personnel remuneration

The following persons were Directors of the Company during the whole financial year, unless otherwise stated.

• Paul A Lennon Non-Executive Chairman

• • Ian Levy Managing Director and CEO • Ken Boundy Non-Executive Director

The following persons were other key management personnel of the Company during the financial year:

• Leon Hawker Chief Operating Officer

• Paul Glover General Manager

• Nathan Towns Operation Manager

• • Mark Cooksey Alcore Limited - CEO • Henry Kinstlinger Company Secretary

Executive’s remuneration and other terms of employment are reviewed annually having regard to relevant comparative information and independent expert advice. As well as basic salary, remuneration packages include superannuation. Directors are also able to participate in an Employee Share Option Plan.

Remuneration packages are set at levels that are intended to attract and retain executives capable of managing the Group’s operations.

Consideration is also given to reasonableness, acceptability to shareholders and appropriateness for the current level of operations.

Remuneration of Non-Executive Directors is determined by the Board based on recommendations from the Remuneration Committee and the maximum amount approved by shareholders from time to time.

Performance conditions

The elements of remuneration as detailed within the Remuneration Report are dependent on the satisfaction of the individual’s performance and the Group’s financial performance.

The Board undertakes an annual review of its performance and the performance of the Board Committees.

Details of the nature and amount of each element of the remuneration of each Director of the Company and each specified executive of the Company and the Group receiving the highest remuneration are set out in the following tables. The remuneration amounts are the same for the Company and the Group.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Directors and Other Key Management Personnel of Australian Bauxite Limited

Consolidated Group 2020 Directors Paul A Lennon Ian Levy Ken Boundy Total-Directors Other KMP Leon Hawker Paul Glover Mark Cooksey Henry Kinstlinger Nathan Towns Total-KMP 2019 Directors Paul A Lennon Ian Levy Ken Boundy Total-Directors Other KMP Leon Hawker Paul Glover Henry Kinstlinger Benjamin Amzalak Total-KMP	Short Term Employee Benefits	Short Term Employee Benefits	Post Employment Benefits	Long Term Benefits	Share Based Payments Total	Share Based Payments Total
	Salary & other fees	Non- Monetary Benefits	Super- annuation	Long Service Leave
	$ 20,000 10,000 -	$ - - -	$ - - -	$ - - -	$ 159,000 281,250 80,000	$ 179,000 291,250 80,000
	30,000	-	-	-	520,250	550,250
	200,000 200,000 191,665 109,890 135,000	- - - - -	19,000 19,000 18,208 - 12,825	3,330 3,333 3,356 - 7,302	- - - - -	222,330 222,333 213,229 109,890 155,127
	836,555	-	69,033	17,321	-	922,909
	$ 60,000 - -	$ - - -	$ - - -	$ - - -	$ - - -	$ 60,000 - -
	60,000	-	-	-	-	60,000
	194,000 194,000 109,890 60,000	- - - -	25,000 25,000 - -	3,307 3,307 - -	- - - -	222,307 222,307 109,890 60,000
	557,890	-	50,000	6,614	-	614,504

The amounts reported represent the total remuneration paid by entities in the Australian Bauxite Group of companies in relation to managing the affairs of all the entities within the Australian Bauxite Group.

There is no performance conditions related to any of the above payments.

There is no other element of Directors and Executives remuneration.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Executive services agreement

In addition the Company has agreed with Mr Ian Levy as Managing Director in providing the services to the Company at an agreed rate of $250,000 for the year 2020. The shares issued during 2020 had been issued to Mr Ian Levy for his services rendered in 2019.

Corporate Service agreements

The Company has entered into a Corporate Service Agreement with Hudson Asset Management Pty Limited pursuant to which Hudson Asset Management Pty Limited has agreed to provide its office management, registered office, administrative, accounting and secretarial services.

The term of the Corporate Services Agreement has no fixed expiry term and the fee payable is that amount agreed between the parties from time to time. The terms of the Corporate Services Agreement provide that Hudson Asset Management Pty Limited shall act in accordance with the directions of the Board.

Share options granted to Directors and Other Key Management Personnel

For details please refer to Note 24 of the financial statements.

End of audited remuneration report.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Loans to Directors and Key Management Personnel

Details of individuals with loans above $100,000 during the year are set out below.

	Balance at the start of the year Advance/ (Repayments) Interest payable for the year Balance at the end of the year Highest indebtedness during the year Additional interest otherwise payable*
Consolidated - KMP 2020 Henry Kinstlinger - ESOP - unsecured loan Benjamin Amzalak 2019 Henry Kinstlinger - ESOP - unsecured loan Benjamin Amzalak	$ $ $ $ $ $ 872,812 (872,812) - - 872,812 - 50,121 - 2,707 52,828 52,828 903 22,263 - 924 23,187 23,187 - 830,725 - 42,087 872,812 872,812 14,029 47,421 - 2,700 50,121 50,121 900 21,343 - 920 22,263 22,263 -

• Market interest rate 6% (2019: 6%). This represents the difference between interest charged at the latter and interest paid.

Terms and conditions of loans

The full recourse loan partly relates to the individual’s participation in the Company’s Employee Share Option Plan. Loans are secured against the Employee Share Option Plan (ESOP) . Board approved to write off the ESOP. Part of the secured shares were sold in repaying the advance.

A second unsecured interest bearing full recourse loan of $30,000 was advanced in 2012. Loans are repayable should the employee leave the Company. Full provision was made in 2020. None were written down during the year.

An unsecured interest bearing full recourse loan of $35,000 was advanced to a consultant in 2014. The loan is repayable should the consultant leave the Company. Full provision was made in 2020. None were written down during the year.

There were no other loans made to Directors or Specified Executives of the Company and the Group during the period commencing at the beginning of the financial year and up to the date of this report.

Shares under option

Unissued ordinary shares of Australian Bauxite Limited under option at the date of this report are as follows:

Class	Date options granted	Expiry Date	Exercise Price	No. of Options
Performance Options* - unallocated			$0.30	1,380,000
				1,380,000

*Unallocated options under the Employee Share Option Plan, expiry date is three years from date of issue.

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

No options were issued or exercised during the year.

Directors’ and Officers’ indemnities and insurance

During the financial year Australian Bauxite Limited (holding company) paid an insurance premium, insuring the Company’s Directors, (as named in this report), Company Secretary, Executive officers and employees against liabilities not prohibited from insurance by the Corporations Act 2001 .

A confidentiality clause in the insurance contract prohibits disclosure of the amount of the premium and the nature of insured liabilities.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Rounding

The amounts contained in the financial report have been rounded to the nearest thousand dollars (where rounding is applicable) under the option available to the Company under ASIC Class Order 98/100. The Company is an entity to which the Class Order applies.

Proceedings on behalf of the Company

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 purposes of taking responsibility on behalf of the Company for all or part of those proceedings.

No proceedings have been brought or intervened in or on behalf of the Company with leave of the Court under Section 237 of the Corporations Act 2001 .

Auditor’s independence declaration

The auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is set out on page 23.

Non-audit services

The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s expertise and experience with the Group are important.

Details of the amounts paid or payable to the auditor (K.S. Black & Co) for audit and non-audit services provided during the year are set out below.

The Board of Directors has considered the position and, in accordance with advice received from the audit committee, is satisfied that the provision of the non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 . The directors are satisfied that the provision of non-audit services by the auditor, as set out below, did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:

• All non-audit services have been reviewed by the audit committee to ensure they do not impact the impartiality and objectivity of the auditor.

• None of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants.

During the year the following fees were paid or payable for services provided by the auditor of the parent entity:

Audit services: Amounts paid or payable to auditors for audit and review of the financial report for the entity or any entity in the Group Audit services Review services Taxation and other advisory services: Amounts paid or payable to auditors for non-audit taxation and advisory services for the entity or any entity in the Group Taxation Advisory services	Consolidated Group 2020 2019 $ $ 31,670 22,945 12,155 11,575 3,700 1,785 - -
	47,525 36,305

The Directors’ Report, incorporating the Remuneration Report, is signed in accordance with a Resolution of the Board of Directors.

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Ian Levy Paul Lennon Managing Director & Chief Executive Officer Non-Executive Chairman Signed at Sydney 31 March 2021

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

AUDITOR’S INDEPENDENCE DECLARATION

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

CORPORATE GOVERNANCE STATEMENT

The Company has adopted this Corporate Governance Plan, which forms the basis of a comprehensive system of control and accountability for the administration of corporate governance. The Board is committed to administering the policies and procedures with openness and integrity, pursuing the true spirit of corporate governance commensurate with the Company’s needs.

To the extent they are applicable to the Company, the Board has adopted the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations 4th Edition (“ Principles and Recommendations ”). In light of the Company’s size and nature, the Board considers that the current board is a cost effective and practical method of directing and managing the Company. As the Company’s activities develop in size and scope, the size of the board and the implementation of additional corporate governance policies and structures will be reviewed.

a) Board Responsibilities

The Board is responsible for corporate governance of the Company. The Board develops strategies for the Company, reviews strategic objectives and monitors performance against those objectives. The goals of the corporate governance processes are to:

• i. maintain and increase Shareholder value;

• ii. ensure a prudential and ethical basis for the Company’s conduct and activities;

• iii. ensure compliance with the Company’s legal and regulatory objectives consistent with these goals, the Board assumes the following responsibilities:

• a. developing initiatives for profit and asset growth;

• b. reviewing the corporate, commercial and financial performance of the Company on a regular basis;

• c. acting on behalf of, and being accountable to, the Shareholders; and,

• d. identifying business risks and implementing actions to manage those risks and corporate systems to assure quality.

The Company is committed to the circulation of relevant materials to Directors in a timely manner to facilitate Directors’ participation in the Board discussions on a fully informed basis;

b) Composition of the Board

Election of Board members is substantially the province of the Shareholders in general meeting. However, subject thereto, the Company is committed to the following principles:

• i. the Board is to comprise persons with a blend of skills, experience and attributes appropriate for the Company and its business; and,

• ii. the principal criteria for the appointment of new directors is their ability to add value to the Company and its business. All incumbent directors bring an independent judgement to bear in deliberations and the current representation is considered adequate given the stage of the Company’s development. The names, qualifications and relevant experience of each Director are set out at in the directors section of this website at http://www.australianbauxite.com.au/Boardof-Directors.htm

c) Code of Conduct

As part of its commitment to recognising the legitimate expectations of stakeholders and promoting practices necessary to maintain confidence in ABX’s integrity, ABX has an established Code of Conduct (the Code ) to guide compliance with legal, ethical and other obligations to legitimate stakeholders and the responsibility and accountability required of ABX personnel for reporting and investigating unethical practices or circumstances where there are beaches of the Code.

These stakeholders include employees, clients, customers, government authorities, creditors and the community as whole. This Code governs all ABX commercial operations and the conduct of Directors, employees, consultants, contactors and all other people when they represent ABX. This Code also governs the responsibility and accountability required of ABX personnel for reporting and investigating unethical practices.

The Board, management and all employees of ABX are committed to implementing this Code and each individual is accountable for such compliance. A copy of the Code is given to all employees, contractors and relevant personnel, including directors, and is available on the ABX website (under “Corporate Governance”).

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

d) Diversity Policy

The Board has adopted a diversity policy which provides a framework for the Company to achieve, amongst other things, a diverse and skilled workforce, a workplace culture characterised by inclusive practices and behaviours for the benefit of all staff, improved employment and career development opportunities for women and a work environment that values and utilises the contributions of employees with diverse backgrounds, experiences and perspectives.

A copy of ABX Diversity Policy is available on the ABX website (under “Corporate Governance”).

e) Continuous Disclosure

The board has designated ABX’s Company Secretary as the person responsible for overseeing and co-ordinating disclosure of information to the ASX as well as communicating with the ASX.

The board has established a written policy for ensuring compliance with ASX Listing Rule disclosure requirements and accountability at senior executive level for that compliance. A copy of ABX continuous disclosure policy can be found on ABX web site (under “Corporate Governance”).

f) Whistle-blower policy

ABX is committed to the highest standards of conduct and ethical behaviour in all of our business activities, and to promoting and supporting a culture of honest and ethical behaviour, corporate compliance and good corporate governance.

ABX encourages the reporting of any instances of suspected unethical, illegal, fraudulent or undesirable conduct involving ABX's businesses, and will ensure that those persons who make a report shall do so without fear of intimidation, disadvantage or reprisal.

A copy of ABX Whistle-blower Policy is available on the ABX website (under “Corporate Governance”).

g) Anti-bribery and corruption policy

ABX has zero tolerance for bribery and corruption and are committed to identifying and preventing bribery and corruption. Any breach will be treated seriously and may result in disciplinary action, dismissal or termination of contract.

A copy of ABX Anti-bribery and Corruption Policy is available on the ABX website (under “Corporate Governance”).

h) Audit Committee and Management of Risk

The Company’s board sits as the audit and risk committee.

i) Remuneration Arrangements

The Board will decide the remuneration of an executive Director, without the affected executive Director participating in that decision-making process.

The total maximum remuneration of non-executive Directors is initially set by the Constitution and subsequent variation is by ordinary resolution of Shareholders in general meeting in accordance with the Constitution, the Corporations Act and the ASX Listing Rules, as applicable. The determination of non-executive Directors’ remuneration within that maximum will be made by the Board having regard to the inputs and value to the Company of the respective contributions by each non-executive Director. The current amount has been set at an amount not to exceed $200,000 per annum.

In addition, a Director may be paid fees or other amounts (subject to any necessary Shareholder approval) for example non-cash performance incentives such as Options as determined by the Board where a Director performs special duties or otherwise performs services outside the scope of the ordinary duties of a Director.

Directors are also entitled to be paid reasonable travelling, hotel and other expenses incurred by them respectively in or about the performance of their duties as Directors. The Board reviews and approves the remuneration policy to enable the Company to attract and retain executives and Directors who will create value for Shareholders having consideration to the amount considered to be commensurate for a company of its size and level of activity as well as the relevant Directors’ time, commitment and responsibility. The Board is also responsible for reviewing any employee incentive and equity-based plans including the appropriateness of performance hurdles and total payments proposed.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

j) Shareholder Communications

The Board strives to ensure that Shareholders are provided with sufficient information to assess the performance of the Company and its Directors and to make well-informed investment decisions. Information is communicated to Shareholders through:

• i. annual and half-yearly financial reports and quarterly reports;

• ii. annual and other general meetings convened for Shareholder review and approval of Board proposals;

• iii. continuous disclosure of material changes to ASX for open access to the public; and,

• iv. the Company maintains a website where all ASX announcements, notices and financial reports are published as soon as possible after release to ASX.

The auditor is invited to attend the annual general meeting of Shareholders. The Chairman will permit Shareholders to ask questions about the conduct of the audit and the preparation and content of the audit report.

k) Trading in ABX Shares

ABX Share Trading Policy prohibits Directors from taking advantage of their position or information acquired, in the course of their duties, and the misuse of information for personal gain or to cause detriment to ABX.

Directors, senior executives and employees are required to advise ABX’s Company Secretary of their intentions prior to undertaking any transaction in ABX securities.

If an employee, officer or director is considered to possess material non-public information, they will be precluded from making a security transaction until after the time of public release of that information.

A copy of ABX Share Trading Policy is available on the ABX website (under “Corporate Governance”).

l) Corporate Social Responsibility

ABX is committed to conducting our operations and activities in harmony with the environment and society, and wherever practicable to work in collaboration with communities and government institutions in decision-making and activities for effective, efficient and sustainable solutions.

Our aim is to minimize our environmental footprint and safeguard the environment while sharing the benefits of share the benefits of mining with our employees and the community and contribute to economic and social development, minimizing our environmental footprint and safeguarding the environment, now and for future generations.

A copy of ABX Environmental, Health and Social Charter is available on the ABX website (under “Corporate Governance”).

m) Departures from Recommendations

The Company is required to report any departures from the recommendations in its annual financial report.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations

PRINCIPLE	Response
PRINCIPLE 1: LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT
Recommendation 1.1
The entity should have and disclose a charter, which sets out the the respective roles and responsibilities of the board, the Chair and management; and includes a description of those matters expressly reserved to the board and those delegated to management	Complies. The Company’s Corporate Governance Plan includes a Board Charter, which discloses the specific responsibilities of the Board. The responsibilities delegated to the senior management team are set out in the Board Charter. The Board Charter can be viewed at the Company’s website http://www.australianbauxite.com.au/Corporate- Governance.htm
Recommendation 1.2
The entity should undertake appropriate checks before appointing a person, or putting forward to security holders a candidate for election, as a director. The entity should provide security holders with all material information in its possession relevant to a decision on whether or not to elect or re-elect a director.	Complies. The Company has conducted appropriate checks for all current Directors. The Company will undertake appropriate checks described in Guidance Note 1, paragraph 3.15 issued by the ASX before appointing a person, or putting forward to Shareholders a candidate for election, as a Director.
Recommendation 1.3
The entity should have a written agreement with each director and senior executive setting out the terms of their appointment.	Does not yet comply. Not all Directors have written agreement setting out the terms of their appointment. The Company will endeavour to finalise these agreements shortly.
Recommendation 1.4
The company secretary of the entity should be accountable directly to the board, through the chair, on all matters to do with the proper functioning of the board.	Complies. The Company Secretary has been appointed and is accountable directly to the Board, through the Chairperson, on all matters to do with the proper functioning of the Board.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Recommendation 1.5
The entity should establish a policy concerning diversity and disclose the policy or a summary of that policy. The policy should include requirements for the board to establish measurable objectives for achieving gender diversity for the board to assess annually both the objectives and the progress in achieving them.	Complies. The Diversity Policy is disclosed on the Company’s website.
The entity should disclose in its annual report the measurable objectives for achieving gender diversity set by the board in accordance with the diversity policy and its progress towards achieving them.	Details of the Company’s measurable objectives for achieving gender diversity and its progress towards achieving them and the entity’s gender diversity figures are set out in the Company’s annual report.
The entity should disclose in its annual report the proportion of women employees in the whole organisation, women in senior executive positions and women on the board.	The Company has gender-diversity at various levels of management. However, the Company has not reported diversity metrics in the FY20 Annual Report. The Company will consider providing this disclosure in future Annual Reports.
Recommendation 1.6
The entity should have and disclose a process for periodically evaluating the performance of the board, its committees and individual directors and disclose, in relation to each reporting period, whether a performance evaluation was undertaken in the reporting period in accordance with that process.	Will comply. The Company will disclose the process for evaluating the performance of the Board, its committees and individual directors in its future annual reports. Details of the performance evaluations undertaken will be set out in future annual reports.
Recommendation 1.7
The entity should have and disclose a process for periodically evaluating the performance of its senior executives; and disclose, in relation to each reporting period, whether a performance evaluation was undertaken in the reporting period in accordance with that process	Complies. Senior executive key performance indicators are set annually, with performance appraised by the Board, and reviewed in detail by the Board. The internal review is to be conducted on an annual basis and if deemed necessary an independent third party will facilitate this internal review. Details of the performance evaluations undertaken will be set out in future annual reports.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

PRINCIPLE 2: STRUCTURE THE BOARD TO ADD VALUE
Recommendation 2.1
The entity’s board should have a nomination committee which has at least three members, a majority of whom are independent directors; and is chaired by an independent director.	Does not comply. The Company does not have a nomination committee
The entity should disclose the charter of the committee, the members of the committee; and as at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings.	Currently the role of the nomination committee is undertaken by the full Board. The Company intends to establish a nomination committee once the Company’s operations are of sufficient magnitude.
If the entity does not have a nomination committee, it should disclose that fact and the processes it employs to address board succession issues and to ensure that the board has the appropriate balance of skills, knowledge, experience, independence and diversity to enable it to discharge its duties and responsibilities effectively.	The Company does not have a nomination committee. The Board evaluates the skills, experience of its members and then determines whether additional members should be invited to the Board to complement or replace the existing members.
Recommendation 2.2
The entity should have and disclose a board skills matrix setting out the mix of skills and diversity that the board currently has or is looking to achieve in its membership.	Does not yet comply. The Company intends to develop a board skill matrix setting out the mix of skills and diversity the Board has and requires. The skill matrix will be available at the Company’s website once finalised.
Recommendation 2.3
The entity should disclose the names of the directors considered by the board to be independent directors and the length of service of each director.	Complies. The Company’s independent directors are Mr Ken Boundy and Mr Paul Anthony Lennon
The entity should disclose if a director has an interest, position, association or relationship of the type described in Box 2.3 of the ASX Corporate Governance Principles and Recommendation (3rd edition) but the board is of the opinion that it does not compromise the independence of the director, the nature of the interest, position, association or relationship in question and an explanation of why the board is of that opinion	The independence of the directors and length of service of each director are set out in the Company’s annual report. Details of any relevant interest, position, association or relationship impacting upon a director’s independence are set out in the Company’s annual report.
Recommendation 2.4
A majority of the board of the entity should be independent directors.	Complies The Company has three directors. Two of these directors are non-executive directors.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Recommendation 2.5
The chair of the board of the entity should be an independent director and, in particular, should not be the same person as the CEO / Managing Director of the entity.	Complies The chair is an independent director, and is a different person to the CEO of the entity.
Recommendation 2.6
The entity should have a program for inducting new directors and provide appropriate professional development opportunities for directors to develop and maintain the skills and knowledge needed to perform their role as directors effectively.	Does not yet comply. Currently the induction of new directors and plan for professional development is managed informally by the full Board. The Company intends to develop a formal program for inducting new directors and providing appropriate professional development opportunities consistent with the development of the Company.
PRINCIPLE 3: ACT ETHICALLY AND RESPONSIBLY
Recommendation 3.1
The entity should establish articulate and disclose its values	Complies. The Board has a Code of Conduct to guide compliance with legal, ethical and other obligations to legitimate stakeholders and the responsibility and accountability required of the Group’s personnel for reporting and investigating unethical practices or circumstances where there are beaches of the Code. The Code of Conduct is available on the Company’s website.
Recommendation 3.2
A listed entity should: (a) have and disclose a code of conduct for its directors, senior executives and employees; and (b) ensure that the board or a committee of the board is informed of any material breaches of that code by a director or senior executive; and (2) any other material breaches of that code that call into question the culture of the organisation.	Complies. The Company’s Corporate Governance Plan includes a Code of Conduct, which discloses the specific responsibility and accountability of FCG directors, senior executives and employees The Code of Conduct can be viewed at the Company’s website http://www.australianbauxite.com.au/Corporate- Governance.htm

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Recommendation 3.3
A listed entity should have and disclose a whistleblower policy and ensure that the board or a committee of the board is informed of any material incidents reported under that policy.	Complies. The Company’s Corporate Governance Plan includes a whistleblower policy, which encourages promoting and supporting a culture of honest and ethical behaviour, corporate compliance and good corporate governance. The whistleblower policy can be viewed at the Company’s website http://www.australianbauxite.com.au/Corporate- Governance.htm
Recommendation 3.4
A listed entity should have and disclose an anti- bribery and corruption policy and ensure that the board or committee of the board is informed of any material breaches of that policy.	Complies. The Company’s Corporate Governance Plan includes an anti-bribery and corruption policy, which outlines the Company’s commitment to comply with the laws and regulations and acting in an ethical manner, consistent with the principles of honesty, integrity, fairness and respect. The anti-bribery and corruption policy can be viewed at the Company’s website http://www.australianbauxite.com.au/Corporate- Governance.htm
PRINCIPLE 4: SAFEGUARD INTEGRITY IN FINANCIAL REPORTING
Recommendation 4.1
The board of the entity should have an audit committee, which consists only of non-executive directors, a majority of which are independent directors and is chaired by an independent chair that is not the chair of the board. The entity should disclose the charter of the committee, the members of the committee and as at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings.	Partially complies. The board has established an audit and risk committee Charter. Members of the committee comprise the whole board of directors. A summary of the charter and details of the number of times the audit and risk committee met throughout the period and the individual attendances of the members at those meetings are set out in the Company’s annual report. The full audit and risk committee charter is available on the Company’s website.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Recommendation 4.2
The board should disclose whether it has, before approving the entity’s financial statements for the financial period receive assurance from its Chief Executive Officer (or equivalent) and the Chief Financial Officer (or equivalent) a declaration that the financial records of the entity have been properly maintained and that the financial statements comply with the appropriate accounting standards and give a true and fair view of the financial position and performance of the entity and that the opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively in all material respects in relation to financial reporting risks.	Complies. The Board requires the Chief Executive Officer and the Chief Financial Officer to provide such a statement before approving the entity’s financial statements for a financial period.
Recommendation 4.3
A listed entity should disclose its process to verify the integrity of any periodic corporate report it releases to the market that is not audited or reviewed by an external auditor.	Complies. The Company goes through external auditor approval for its corporate reports. External auditor attends AGMs and is available to answer questions from Security Holders relevant to the audit.
PRINCIPLE 5: MAKE TIMELY AND BALANCED DISCLOSURE
Recommendation 5.1
The entity should establish written policies designed to ensure compliance with ASX Listing Rule disclosure requirements and to ensure accountability at senior executive level for that compliance and disclose those policies or a summary of those policies.	Complies. The Company has a written policy on information disclosure. The focus of these policies and procedures is continuous disclosure and improving access to information for investors. The Company’s continuous disclosure policy can be viewed at the Company’s website.
Recommendation 5.2
A listed entity should ensure that its board receives copies of all material market announcements promptly after they have been made.	Complies.
Recommendation 5.3
A listed entity that gives a new and substantive investor or analyst presentation should release a copy of the presentation materials on the ASX Market Announcements Platform ahead of the presentation.	Complies.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

PRINCIPLE 6: RESPECT THE RIGHTS OF SHAREHOLDERS
Recommendation 6.1
The entity should provide information about itself and its governance to investors via its website.	Complies. The Company has provided specific information about itself and its key personnel and has developed a comprehensive Corporate Governance Plan. Details can be found at the Company’s website.
Recommendation 6.2
The entity should design and implement an investor relations program to facilitate effective two-way communication with investors.	Complies. The Company has established a Shareholder’s Communication Policy. The Company recognises the importance of forthright communications and aims to ensure that the shareholders are informed of all major developments affecting the Company. Details of the Shareholder’s Communication Policy can be found on the Company’s website.
Recommendation 6.3
The entity should disclose the policies and processes it has in place to facilitate and encourage participation at meetings of security holders.	Complies. The Shareholder’s Communication Policy is available on the Company’s website and details are set out in the Company’s annual report.
Recommendation 6.4
A listed entity should ensure that all substantive resolutions at a meeting of security holders are decided by a poll rather than by a show of hands.	Will comply at the next relevant meeting
Recommendation 6.5
A listed entity should give security holders the option to receive communications from, and send communications to, the entity and its security registry electronically.	Complies. The Company has provided the option to receive communications from, and send communications to, the entity and its security registry electronically.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

PRINCIPLE 7: RECOGNISE AND MANAGE RISK
Recommendation 7.1
The board of a listed entity should have a committee or committees to oversee risk, each of which has at least three members, a majority of whom are independent directors and is chaired by an independent director. The entity should disclose the charter of the committee, the members of the committee and at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings.	Complies. The Board has established an audit and risk committee to oversee risk which is comprised of the whole Board. Details of the number of times the committee met and the individual attendances of the members at those meetings is set out in the Company’s annual report.
Recommendation 7.2
The board or board committee should review the entity’s risk management framework at least annually to satisfy itself that it continues to be sound, to determine whether there have been any changes in the material business risk the entity faces and to ensure that they remain with the risk appetite set by the board.	Complies.
The entity should also disclose in relation to each reporting period, whether such a review has taken place	The Company’s Corporate Governance Plan includes a Risk Management Review Procedure and Compliance and Control policy. The Board determines the Company’s “risk profile” and is responsible for overseeing and approving risk management strategy and policies, internal compliance and internal control. The Board has delegated to the audit and risk committee the responsibility for implementing the risk management system. Details of the number of times the committee conducted a risk management review in relation to each reporting period will be disclosed in its annual reports.
Recommendation 7.3
The entity should disclose if it has an internal audit function, how the function is structured and what role it performs. If the entity does not have an internal audit function, the entity should disclose that fact and the processes it employs for evaluating and continually improving the effectiveness of its risk management and internal control processes.	Does not yet comply. The Board has delegated the internal audit function to the audit and risk committee and intends to establish and implement the structure and role of the internal audit function. The Company will disclose the details of the internal audit function in its future annual reports.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Recommendation 7.4
The entity should disclose whether it has any material exposure to economic, environmental and social sustainability risks and, if it does, how it manages or intends to manage those risks.	Complies. The Company has an Audit and Risk committee appointed to manage economic sustainability and risk. In addition to this the Company also has an Environmental and Social Charter on its website, and manages environmental and social sustainability risks accordingly. With respect to the Tenements, the Company complies with environmental regulatory requirements and risk through the relevant authorities issued pursuant to permits from the relevant government departments in NSW, QLD and Tasmania.
PRINCIPLE 8: REMUNERATE FAIRLY AND RESPONSIBLY
Recommendation 8.1
The board should establish a remuneration committee which has at least three members, a majority of whom are independent directors and is chaired by an independent director.	Does not yet comply due to the size of the Company.
If the entity does not have a remuneration committee, the entity should disclose that fact and the processes it employs for setting the level and composition of remuneration for directors and senior executives and ensuring that such remuneration is appropriate and not excessive.	The Board has adopted a Remuneration Committee Charter. However, the Company is not of a size that justifies having a separate Remuneration Committee so matters typically considered by such a committee are dealt with by the full Board. The Board has reviewed, through independent sources, the level and composition of remuneration for Directors and senior executives to ensure that such remuneration is appropriate and not excessive.
Recommendation 8.2
The entity should separately disclose its policies and practices regarding the remuneration of non- executive directors and the remuneration of executive directors and other senior executives.	Complies. The Company distinguishes the structure of Non- executive Directors’ remuneration from Executive Directors and senior executives. Details of the policies and practices regarding remuneration are set out in the Company’s annual report. The Remuneration Committee Charter is disclosed on the Company’s website.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

Recommendation 8.3
If the entity has an equity-based remuneration scheme it should have a policy on whether participants are permitted to enter into transactions (whether through the use of derivatives or otherwise) which limit the economic risk of participating in the scheme; and disclose that policy or a summary of it.	Complies. The Company’s Policy on Dealing with Company Securities prohibits executive staff from undertaking hedging or other strategies that could limit the economic risk associated with Company Securities issued under any equity based remuneration scheme. The Company’s Share Trading Policy can be viewed on the Company’s website.
PRINCIPLE 9: ADDITIONAL RECOMMENDATIONS THAT	APPLY ONLY IN CERTAIN CASES
Recommendation 9.1
A listed entity with a director who does not speak the language in which board or security holder meetings are held or key corporate documents are written should disclose the processes it has in place to ensure the director understands and can contribute to the discussions at those meetings and understands and can discharge their obligations in relation to those documents.	We do not have a director in this position and therefore this recommendation is not applicable.
Recommendation 9.2
A listed entity established outside Australia should ensure that meetings of security holders are held at a reasonable place and time.	We do not have a director in this position and therefore this recommendation is not applicable.
Recommendation 9.3
A listed entity established outside Australia, and an externally managed listed entity that has an AGM, should ensure that its external auditor attends its AGM and is available to answer questions from security holders relevant to the audit.	We do not have a director in this position and therefore this recommendation is not applicable.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2020

Notes Revenue 4 Other income and expenses 4 Administrative development and exploration expenses 5 Finance costs 5 Profit/(Loss) before income tax Income tax 6(a) Profit/(Loss) after tax for the year Other Comprehensive Income Other comprehensive income Income tax Other comprehensive income after tax Total comprehensive income Profit attributable to non-controlling interest Total comprehensive income/(loss) attributable to members of the consolidated entity Earnings/(Loss) per share Basic earnings/(loss) per share (cents) 23 Diluted earnings/(loss) per share (cents) 23	Consolidated Group 2020 2019 $’000 $’000 2,279 2,172 1,654 865 (4,472) (5,436) (55) (77)
	(594) (2,476) - -
	(594) (2,476)
	- - - -
	- -
	(594) - 45 -
	(549) (2,476)
	Cents Cents (0.37) (1.70) (0.37) (1.68)

The above Statement should be read in conjunction with the accompanying notes.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2020

Notes ASSETS Current assets Cash and cash equivalents 7 Trade and other receivables 8 Other current assets 9 Financial assets 12 Total current assets Non-current assets Trade and other receivables 8 Plant and equipment 10 Mining tenements 11 Total non-current assets Total Assets LIABILITIES Current liabilities Trade and other payables 13 Employee benefits provision 14 Other Liabilities 15 Total current liabilities Non-current liabilities Employee benefits provision 14 Other Liabilities 15 Total non-current liabilities Total Liabilities Net Assets EQUITY Issued capital 16 Other Contributed Equity – controlled entity Reserves 17 Accumulated losses Total equity attribute to equity holder of parent entity Non-controlling interest Total Equity	Consolidated Group 2020 2019 $’000 $’000 901 909 100 83 93 72 - -
	1,094 1,064
	37 56 299 496 15,493 15,501
	15,829 16,053
	16,923 17,117
	1,127 1,464 129 102 271 303
	1,527 1,869
	138 117 315 315
	453 432
	1,980 2,301
	14,943 14,816
	25,749 25,312 - - 2,938 2,691 (13,752) (13,203)
	14,935 14,800 8 16
	14,943 14,816

The above Statement should be read in conjunction with the accompanying notes.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2020

Consolidated Group Notes Balance at 1 January 2020 16 Share placement Share issuing cost Business combination Profit/(loss) for the year Balance at 31 December 2020 16 Balance at 1 January 2019 Share placement Share issuing cost Business combination Profit/(loss) for the year Balance at 31 December 2019 16	Issued Capital Reserves Other Contributed Equity Reserve Non- controlling interest Accumulated Losses Total Equity $’000 $’000 $’000 $’000 $’000 $’000 25,312 - 2,691 16 (13,203) 14,816 437 - - - - 437 - - - - - - - - 247 (8) - 239 - - - - (549) (549)
	25,749 - 2,938 8 (13,752) 14,943
	25,312 1,519 593 - (10,727) 16,697 - - - - - - - - - - - - - (1,519) 2,098 16 - 595 - - - - (2,476) (2,476)
	25,312 - 2,691 16 (13,203) 14,816

The above Statement should be read in conjunction with the accompanying notes.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2020

Notes Cash flows from operating activities Receipts from customers Payments to suppliers, service providers and employees Interest paid Interest received Net cash (used in)/provided by from operating activities 19 Cash flows from investing activities Acquisition of plant and equipment Acquisition of investment Repayment from/(Advance to) other entities Advanced from other party Government fund refunded Net cash provided by/(used in) from investing activities Cash flows from financing activities Proceeds from issues of shares Share issuing costs Issue shares/ convertible note - controlled entity Net cash provided by/(used in) from financing activities Net (decrease)/ increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 7	Consolidated Group 2020 2019 $’000 $’000 2,261 2,100 (4,010) (4,743) (49) - 12 23
	(1,786) (2,620)
	(52) (496) - - (91) 440 (300) 300 1,500 846
	1,057 1,090
	437 - - - 284 595
	721 595
	(8) (935) 909 1,844
	901 909

The above Statement should be read in conjunction with the accompanying notes.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2020

1. CORPORATE INFORMATION

The consolidated financial statement and notes of Australian Bauxite Limited for the year ended 31 December 2020 was authorised for issue in accordance with a resolution of the Directors and covers Australian Bauxite Limited as an individual parent entity as well as the consolidated entity consisting of Australian Bauxite Limited and its subsidiaries as required by the Corporations Act 2001.

The consolidated financial statement and notes is presented in Australian currency.

Australian Bauxite Limited is a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange ( ASX ).

The Company was incorporated as an unlisted public company on 23 September 2009 and successfully listed on the ASX on 24 December 2009.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of Preparation

This general purpose financial report has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporation Act 2001 .

Statement of Compliance

Compliance with Australian Accounting Standards ensures that the financial report of Australian Bauxite Limited complies with International Financial Reporting Standards (‘IFRS”).

Critical to accounting estimates

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.

Critical judgements

Management have made the following judgements when applying the Group's accounting policies:

Capitalisation of exploration costs

The Group follows the guidance of AASB 6 Exploration for and Evaluation of Mineral Resources when determining if exploration costs incurred can be capitalised. This determination requires significant judgement. In making this judgement, the Group evaluates if any one of the following conditions is met:

• The exploration and evaluation expenditures are expected to be recouped through successful development and exploitation of the area of interest, or alternatively, by its sale; and

• Exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the areas of interest are continuing.

• During the financial year, there were commodity price drops. No impairment losses were recognised as no significant production has occurred resulting in sales at prices requiring write-down of capitalised expenditures.

If one of the above conditions is met then the Group has made the judgement to capitalise the associated exploration expenses.

Going Concern

This financial report has been prepared on a going concern basis, which contemplates the continuity of business activities and the realisation of assets and payments of liabilities in the normal course of business.

The directors believe the Company will be able to pay its debts as and when they fall due and to fund near term anticipated activities.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

Historical cost convention

These financial statements have been prepared on an accruals basis and are based on the historical cost convention except where noted in these accounting policies.

Material Accounting Policies

The policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated.

ASIC Class Order 98/100

The Company is of a kind referred to in ASIC Class Order 98/100, issued by the Australian Securities and Investments Commission, relating to the ‘rounding off’ of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar.

b. Principles of consolidation

Subsidiaries

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Australian Bauxite Limited (the “parent entity”) as at reporting date and the results of all subsidiaries for the year then ended. Australian Bauxite Limited and its subsidiaries together are referred to in this financial report as the Group.

Subsidiaries are all those entities over which the Group has the power to govern the financial and operating policies generally accompanying a shareholding of more than one-half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.

The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group.

Intercompany transactions, balances and unrealised gains on transactions between consolidated entity companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Business Combinations

Business combinations occur where an acquirer obtains control over one or more businesses.

A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. The business combination will be accounted for from the date that control is attained, whereby the fair value of the identifiable assets acquired and liabilities (including contingent liabilities) assumed is recognised (subject to certain limited exemptions).

When measuring the consideration transferred in the business combination, any asset or liability resulting from a contingent arrangement is also included. Subsequent to initial recognition, contingent consideration classified as equity is not remeasured and its subsequent settlement accounted for within equity. Contingent consideration classified as an asset or liability is remeasured in each reporting period to fair value, recognising any change to fair value in profit or loss, unless the change in value can be identified as existing at acquisition date.

All transaction costs incurred in relation to business combinations are recognised as expenses in profit or loss when incurred.

The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

Goodwill

Goodwill is carried at cost less any accumulated impairment losses. Goodwill is calculated as the excess of the sum of:

• The consideration transferred;

• Any non-controlling interest; and

The acquisition date fair value of any previously held equity interests over the acquisition date fair value of net assets acquired.

The acquisition date fair value of the consideration transferred for a business combination plus the acquisition date fair value of any previously held equity holdings shall form the cost of the investment in the separate financial statements.

Fair value remeasurements in any pre-existing equity holdings are recognised in profit or loss in the period in which they arise. Where changes in the value of such equity holdings had previously been recognised in other comprehensive income, such amounts are recycled to profit or loss.

The amount of goodwill recognised on acquisition of each subsidiary in which the Group holds less than a 100% interest will depend on the method adopted in measuring the non-controlling interest. The purchase method of accounting is used to account for the acquisitions of subsidiaries by the Group.

Under the full goodwill method, the fair value of the non-controlling interests is determined using valuation techniques which make the maximum use of market information where available. Under this method, goodwill attributable to the non-controlling interests is recognised in the consolidated financial statements.

Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates.

Goodwill is tested for impairment annually and is allocated to the Group’s cash-generating units or groups of cash-generating units, representing the lowest level at which goodwill is monitored not larger than an operating segment. Gains and losses on the disposal of an entity include the carrying amount of goodwill related to the entity disposed of.

Changes in the ownership interests in a subsidiary are accounted for as equity transactions and do not affect the carrying amounts of goodwill.

c. Segment reporting

A business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns that are different to those of other business segments. A geographical segment is engaged in providing products or services within a particular economic environment and is subject to risks and returns that are different from those of segments operating in other economic environments. Reporting to management by segments is on this basis.

d. Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue is recognised for the major business activities as follows:

Interest Revenue

Interest revenue is recognised as it accrues taking into account the effective yield on the financial asset.

Other Income

Income from other sources is recognised when proceeds or the fee in respect of other products or services provided is receivable.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

e. Income Tax

The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.

The Company and its wholly owned entities are part of a tax-consolidated group under Australian taxation law. Australian Bauxite Limited is the head entity in the tax-consolidated group. Tax expense/income, deferred tax liabilities and deferred tax assets arising from temporary differences of the members of the tax-consolidated group are recognised in the separate financial statements of the members of the tax-consolidated group using the ‘separate taxpayer within group’ approach. Current tax liabilities and assets and deferred tax assets arising from unused tax losses and tax credits of the members of the tax-consolidated group are recognised by the Company (as head entity in the tax-consolidated group).

The amounts receivable/payable under tax funding arrangements are due upon notification by the entity which is issued soon after the end of each financial year. Interim funding notices may also be issued by the head entity to its wholly owned subsidiary. These amounts are recognised as current intercompany receivables or payables.

f. Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST except:

• where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

• receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Statement of Financial Position.

Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority, are classified as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

g. Impairment of assets

Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting period. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

h. Cash and cash equivalents

For the purpose of the statement of cash flows, cash includes cash on hand and in at call deposits with banks or financial institutions, investment in money market instruments maturing within less than two months, net of bank overdrafts.

i. Trade and other receivables

Trade receivables are recognised initially at original invoice amounts and subsequently measured at amortised cost, less provision for doubtful debts. Trade receivables are due for settlement no more than 60 days from the date of recognition.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful receivables is established when there is objective evidence that entities in the Group will not be able to collect all amounts due according to the original terms of receivables.

j. Financial Instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified ‘at fair value through profit or loss’, in which case transaction costs are expensed to profit or loss immediately.

Classification and subsequent measurement

Finance instruments are subsequently measured at either of fair value, amortised cost using the effective interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Amortised cost is calculated as:

• (a) the amount at which the financial asset or financial liability is measured at initial recognition;

• (b) less principal repayments;

• (c) plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest method; and

• (d) less any reduction for impairment.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss.

The Group does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of accounting standards specifically applicable to financial instruments.

• (i) Financial assets at fair value through profit or loss

Financial assets are classified at ‘fair value through profit or loss’ when they are either held for trading for the purpose of short-term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss.

• (ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost.

Loans and receivables are included in current assets, except for those which are not expected to mature within 12 months after reporting date. (All other loans and receivables are classified as non-current assets.)

• (iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the Group’s intention to hold these investments to maturity. They are subsequently measured at amortised cost.

Held-to-maturity investments are included in non-current assets, except for those which are expected to mature within 12 months after reporting date. (All other investments are classified as current assets.)

If during the period the Group sold or reclassified more than an insignificant amount of the heldto-maturity investments before maturity, the entire held-to-maturity investments category would be tainted and reclassified as available-for-sale.

• (iv) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

Available-for-sale financial assets are included in non-current assets, except for those which are expected to be disposed of within 12 months after reporting date. (All other financial assets are classified as current assets.)

• (v) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

Impairment

At the end of each reporting period, the Group assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether impairment has arisen. Impairment losses are recognised in the statement of comprehensive income.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

k. Tenement exploration, evaluation and development costs

Costs incurred in the exploration for, and evaluation of, tenements for suitable resources are carried forward as assets provided that one of the following conditions is met:

• the carrying values are expected to be justified through successful development and exploitation of the area of interest; or

• exploration activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of recoverable mineral resources, and active and significant operations in relation to the area are continuing.

• Expenses failing to meet at least one of the aforementioned conditions are expensed as incurred.

Costs associated with the commercial development of resources are deferred to future periods, provided they are, beyond any reasonable doubt, expected to be recoverable. These costs are amortised from the commencement of commercial production of the product to which they relate on a straight-line basis over the period of the expected benefit. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

l. Property, plant and equipment

Land and building are shown at fair value, based on periodic valuations by external independent valuers, less subsequent depreciation for buildings. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. All other plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Consolidated Entity and the cost of the item can be measure reliably. All other repairs and maintenance are charged to the Consolidated Statement of Profit or Loss and other Comprehensive Income during the financial period in which they are incurred.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

Increases in the carrying amounts arising on revaluation of land and buildings are credited to the asset revaluation reserve in equity. A revaluation surplus is credited to the asset revaluation reserve included within shareholder’s equity unless it reverses a revaluation decrease on the same asset previously recognised in the Consolidated Statement of Profit or Loss and Other Comprehensive Income. A revaluation deficit is recognised in the Consolidated Statement of Profit or Loss and Other Comprehensive unless it directly offsets a previous revaluation surplus on the same asset in the asset revaluation reserve.

On disposal, any revaluation reserve relating to sold assets is transferred to retained earnings. Independent valuations are performed regularly to ensure the carrying amounts of land and buildings do not differ materially from the fair value at the Consolidated Statement of Financial Position date.

Land is not depreciated. Depreciation on other assets is calculated using the straight line, over their estimated useful lives, as follows:

Plant and equipment 5-15 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each Statement of Financial Position date.

Any asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Consolidated Statement of Profit or Loss and Other Comprehensive Income.

m. Leases

Company as lessee

Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classified as finance leases, and capitalised at inception of the lease at the fair value of the leased property, or if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to the Consolidated Statement of Profit or Loss and Other Comprehensive Income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Capitalised leased assets are depreciated over the shorter for the estimated useful life of the asset or the lease term.

Leases where the lessor retains substantially all the risks and rewards of ownership of the net asset are classified as operating leases. Payments made under operating leases (net of incentives received from the lessor) are charged to the Consolidated Statement of Profit or Loss and Other Comprehensive Income on a straight-line basis.

Company as lessor

Lease income from operating leases is recognised in the Consolidated Statement of Profit or Loss and Other Comprehensive Income on a straight –line basis over the lease term. Initial direct costs incurred in negotiating operating leases are added to the carrying value of the leased asset and recognised as an expense over the lease term on the bases as the lease income.

n. Trade and other payables

These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

o. Restoration and rehabilitation provisions

Both for close down and restoration and for environmental clean-up costs from exploration programs, if any, a provision will be made in the accounting period when the related disturbance occurs, based on the net present value of estimated future costs.

p. Employee benefits

• (i) Short term employee benefits

Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

• (ii) Other long term employee benefits

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date.

q. Contributed equity

Ordinary shares are classified as equity

r. Other equity

Convertible notes which are settled for a fixed amount of cash; may only be converted into a fixed number of shares and may not be redeemed for cash or other financial asset, are treated as other equity.

s. Share based payments

Ownership-based remuneration is provided to employees via an employee share option plan. Share-based compensation is recognised as an expense in respect of the services received, measured on a fair value basis.

The fair value of the options at grant date is independently determined using a Black Scholes option pricing model that takes into account the exercise price, the term of the option, the vesting and performance criteria, the impact of dilution, the non-tradeable nature of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option.

The fair value of the options granted excludes the impact of any non-market vesting conditions (for example, profitability and sales growth targets). Non-market vesting conditions are included in assumptions about the number of options that are expected to become exercisable. At each balance sheet date, the Group revises its estimate of the number of options that are expected to become exercisable. The employee benefit expense recognised each period takes into account the most recent estimate.

Upon the exercise of options, the balance of the share-based payments reserve relating to those options is transferred to share capital.

t. Earnings per share (EPS)

Basic EPS is calculated as net profit attributable to members, adjusted to exclude costs of servicing equity (other than dividends), divided by the weighted average number of ordinary shares, adjusted for any bonus element.

Diluted EPS is calculated as net profit attributable to members, adjusted for costs of servicing equity (other than dividends), the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

u. New accounting standards for application

The AASB has issued new and amended accounting standards and interpretations that have mandatory application dates for future reporting periods. The Group has decided against early adoption of these standards. We have viewed these standards and interpretations and there are none having any material effect.

3. FINANCIAL RISK MANAGEMENT

a. General objectives, policies and processes

In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note describes the Group’s objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.

There have been no substantive changes in the Group’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.

The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the Group’s finance function.

The Groups' risk management policies and objectives are therefore designed to minimise the potential impacts of these risks on the results of the Group where such impacts may be material. The Board receives reports from the Chief Financial Officer through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets. The Group’s finance function also reviews the risk management policies and processes and reports their findings to the Audit Committee.

The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the group’s competitiveness and flexibility. Further details regarding these policies are set out below:

b. Credit Risk

Credit risk is the risk that the other party to a financial instrument will fail to discharge their obligation resulting in the Group incurring a financial loss. This usually occurs when debtors or counterparties to derivative contracts fail to settle their obligations owing to the Group.

The maximum exposure to credit risk at balance date is as follows:

Financial Assets Current Cash and cash equivalents Trade and other receivables Non-Current Trade and other receivables Financial liabilities Current Trade and other payables Non-Current Other payable	Consolidated Group 2020 2019 $’000 $’000 901 909 100 83 37 56
	1,038 1,048
	1,127 1,464 - -
	1,127 1,464

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

3. FINANCIAL RISK MANAGEMENT continued

c. Liquidity risk

Liquidity risk is the risk that the Group may encounter difficulties raising funds to meet commitments associated with financial instruments that is, borrowing repayments. There is no bank borrowing at the balance date. It is the policy of the Board of Directors that treasury reviews and maintains adequate committed credit facilities and the ability to close-out market positions.

Maturity Analysis of financial assets

	Carrying Amount	Contractual Cash Flows	< 6 mths	6 - 12 mths	6 - 12 mths	1 - 3 years	> 3 years
	$’000	$’000	$’000	$’000		$’000	$’000
Consolidated
2020
Current
Cash and cash equivalent	901	901	901		-	-	-
Trade and other receivables	100	100	57		43	-	-
Non-current
Trade and other receivables	37	37	-		-	37	-
Total financial assets	1,038	1,038	958		43	37	-
2019
Current
Cash and cash equivalent	909	909	909		-	-	-
Trade and other receivables	83	83	83		-	-	-
Non-current
Trade and other receivables	56	56	-		-	56	-
Total financial assets	1,048	1,048	992		-	56	-
Maturity Analysis of financial	liabilities
	Carrying Amount	Contractual Cash Flows	< 6 mths	6 - 12 mths		1 - 3 years	> 3 years
Consolidated Group	$’000	$’000	$’000	$’000		$’000	$’000
2020
Financial Liabilities
Current
Trade and other payables	1,127	1,127	276	851		-	-
Non-Current
Other Liabilities	-	-	-		-	-	-
Total financial liabilities
at amortised cost	1,127	1,127	276	851		-	-
2019
Financial Liabilities
Current
Trade and other payables	1,464	1,464	206	408		850	-
Non-Current
Other Liabilities	-	-	-	-		-	-
Total financial liabilities
at amortised cost	1,464	1,464	206	408		850	-

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

3. FINANCIAL RISK MANAGEMENT continued

d. Interest rate risk

The Group is constantly monitoring its exposure to trends and fluctuations in interest rates in order to manage interest rate risk. There is no bank borrowing at the balance date; therefore there is no material exposure to interest rate risk.

Sensitivity analysis

There is no bank borrowing at the balance date.

The following tables demonstrate the sensitivity to reasonably possible changes in interest rates, with all other variables held constant, of the Group’s profit after tax (through the impact on fluctuation on deposit interest rate). There is no impact on the Group’s equity.

Consolidated Group 2020 Cash and cash equivalents Tax charge of 26% After tax increase/(decrease) 2019 Cash and cash equivalents Tax charge of 27.5% After tax increase/(decrease)	Carrying Amount +1% of Profit/ (Loss) -1% of Profit/ (Loss) $’000 $’000 $’000 901 9 (9) (3) 3
	901 6 (6)
	909 9 (9) (3) 3
	909 6 (6)

e. Currency risk

In 2020, the consolidated entity and parent entity were not exposed to foreign currency risk (2019: Nil)

f. Capital risk management

The Group considers its capital to comprise its ordinary share capital and reserves.

In managing its capital, the group’s primary objectives are to pay dividends and maintain liquidity. These objectives dictate any adjustments to capital structure. Rather than set policies, advice is taken from professional advisors as to how to achieve these objectives. There has been no change in either these objectives or what is considered capital in the year.

4. REVENUE

Revenue Sale of mineral Interest income Other Income and expenses Government research and development concession refunded Gain on disposal of vehicle Others	Consolidated Group 2020 2019 $’000 $’000 2,261 2,100 18 72
	2,279 2,172
	1,500 865 27 - 127 -
	1,654 865

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

5. EXPENSES

Profit/(loss) before income tax arrived after (charging)/crediting the following specific items: Administrative development and exploration expenses Directors and employee salaries and on costs not capitalised Consulting and professional fee Cost of sales and Exploration expenses not capitalised Others Finance costs Depreciation Interest paid Provision for doubtful debt Others	Consolidated Group 2020 2019 $’000 $’000 (500) (159) (101) (129) (3,601) (4,866) (270) (282)
	(4,472) (5,436)
	(1) (1) (32) (17) (12) (48) (10) (11)
	(55) (77)

6. INCOME TAX

a. Income tax

Current tax expense Deferred tax expense Total income tax expense Deferred tax expense Increase/(decrease) in deferred tax expense	Consolidated Group 2020 2019 $’000 $’000 - - - -
	- -
	- -

b. Numerical reconciliation of income tax expense

to prima facie tax payable

to prima facie tax payable
Profit/(Loss) from continuing operations before income tax expense Income tax expense (benefit) calculated at 26% (2019:27.5%) Timing differences not brought to account Tax losses not brought to account accrued during the year Income tax expense at effective tax rate of 26% (2019:27.5%)	Consolidated Group 2020 2019 $’000 $’000 (549) (2,476)
	(142) (681) (162) (17) 304 698
	- -

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

6. INCOME TAX continued

7.	c. Unrecognised deferred tax assets and liabilities Deferred tax assets and liabilities have not been recognised in the balance sheet for the following items: Prior year unrecognised tax losses now ineligible due to change in tax consolidation group Other deductible temporary differences Deferred tax asset in respect of exploration activities not brought to account Deferred tax liability in respect of exploration activities not recognized to the extent of unrecognized deferred tax asset Deferred tax asset/(liability) in respect of exploration activities not recognised to the extent of unrecognised deferred tax asset & failure of the probability criteria CASH AND CASH EQUIVALENTS	c. Unrecognised deferred tax assets and liabilities Deferred tax assets and liabilities have not been recognised in the balance sheet for the following items: Prior year unrecognised tax losses now ineligible due to change in tax consolidation group Other deductible temporary differences Deferred tax asset in respect of exploration activities not brought to account Deferred tax liability in respect of exploration activities not recognized to the extent of unrecognized deferred tax asset Deferred tax asset/(liability) in respect of exploration activities not recognised to the extent of unrecognised deferred tax asset & failure of the probability criteria CASH AND CASH EQUIVALENTS	Consolidated Group 2020 2019 $’000 $’000 (164) (142) 4,030 4,388 (4,028) (4,263) (162) (17)
			Consolidated Group
			2020 2019
			$’000 $’000
		Cash and cash equivalents	556 504
		Cash held in trust – tenement deposit andguarantee	345 405
			901 909
	a.	Reconciliation to cash at the end of the year
			Consolidated Group
			2020 2019
			$’000 $’000
		The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows:
		Cash and cash equivalents	901 909
		Balances per Statement of Cash Flows	901 909
		Weighted Average Interest Rates	1.14% 1.50%

b. Interest rate risk exposure

The Group's and the parent entity's exposure to interest rate risk is discussed in Note 3.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

8. TRADE AND OTHER RECEIVABLES

E AND OTHER RECEIVABLES
Current Tenement security deposit Receivable - advance to other parties Receivables - GST Provision for doubtful debt Non-Current Receivable - Employee share plan Provision for doubtful debt	Consolidated Group 2020 2019 $’000 $’000 43 48 76 763 57 49 (76) (777)
	100 83
	148 146 (111) (90)
	37 56

a. Impaired receivables and receivables past due

None of the current or non-current receivables are impaired or past due but not impaired. Provision for Mr Kinstlinger advances were made and the related securities were partly disposed in repaying the advance.

b. Receivable - advance to other parties

In 2010 the Company advanced a $520,000 interest bearing full recourse loan to Mr Henry Kinstlinger, Company Secretary, under a personal loan and the employee share option plan. Board approved to write off the balance.

The Company further advanced a $30,000 unsecured interest bearing full recourse loan to Mr Kinstlinger in 2012.

The Company advanced a $35,000 interest bearing full recourse unsecured loan to consultant in 2014.

A provision of $0.07M was made at reporting date.

Please refer to Note 24 for details.

c. Receivables - GST

These amounts relate to receivables for GST paid.

d. Receivable Employee share plan

The Company advanced $0.14 million interest bearing full recourse loan to three employees under the Company’s employee share option plan in late 2014. A provision of $0.11 million was made at reporting date.

Please refer Note 24 for details.

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Australian Bauxite Limited ACN 139 494 885

Annual Report 31 December 2020

8. TRADE AND OTHER RECEIVABLES continued

e. Interest rate risk

Information about the Group’s and the parent entity’s exposure to interest rate risk in relation to trade and other receivables is provided in Note 3.

f.

Fair value and credit risk

Current trade and other receivables

Due to the short term nature of these receivables, their carrying amount is assumed to approximate their fair value.

The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivables mentioned above.

Non-current trade and other receivables

The fair values and carrying values of non-current receivables are as follows:

The controlled entities receivables have no terms of repayment and are not interest bearing.

	2020		2019
	Carrying	Fair	Carrying	Fair
	Amount	Value	Amount	Value
	$’000	$’000	$’000	$’000
Consolidated Group
Receivable - Employee Share Plan	148	37	146	56
Receivables - Other Parties	-	-	763	-

9. OTHER CURRENT ASSETS

Prepayments	Consolidated Group 2020 2019 $’000 $’000 93 72
	93 72

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10. PLANT AND EQUIPMENT

Plant and equipment At cost Accumulated depreciation Carrying value Motor vehicles At cost Accumulated depreciation Disposal Carrying value Total carrying value	Consolidated Group 2020 2019 $’000 $’000 516 574 (268) (78)
	248 496
	52 86 (1) (86) -
	51 -
	299 496

Reconciliations

Reconciliations of the carrying amounts of each class of plant & equipment at the beginning and end of the current and previous financial year are set out below:

Consolidated Group 2020 Carrying amount at 1 January 2020 Additions Disposal Depreciation Carrying amount at 31 December 2020 2019 Carrying amount at 1 January 2019 Additions Depreciation Carrying amount at 31 December 2019	Plant & equipment Motor Vehicles Total $’000 $’000 $’000 496 - 496 - 52 52 - - - (248) (1) (249)
	248 51 299
	- - - 496 - 496 - - -
	496 - 496

11. MINING TENEMENTS

Mining tenements	Consolidated Group 2020 2019 $’000 $’000 15,493 15,501

The recoverability of the carrying amount of evaluation and exploration assets is dependent upon successful development and commercial exploitation, or alternatively the sale of the respective areas of interest.

12. FINANCIAL ASSETS

Investment - at cost Impairment provision	Consolidated Group 2020 2019 $’000 $’000 32 32 (32) (32)
	- -

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13. TRADE AND OTHER PAYABLES

Current Trade payables Other payables 14. EMPLOYEE BENEFITS PROVISION Current Staff Leave Entitlement Non-Current Staff Leave Entitlement 15. OTHER LIABILITIES Current Accrued payable Non-Current Provision for mine rehabilitation 16. ISSUED CAPITAL Ordinary shares issued a. Movements during the year: Consolidated Entity and Parent Entity Opening balance Share placement Share placement - in lieu of services Share issuing costs Closing balance		Consolidated Entity and Parent Entity 2020 2019 Number of Shares Number of Shares 150,304,314 145,967,005	Consolidated Group 2020 2019 $’000 $’000 252 206 875 1,258
			1,127 1,464
			Consolidated Group 2020 2019 $’000 $’000 129 102
			138 117
			271 303
			315 315
			Consolidated Entity and Parent Entity 2020 2019 $’000 $’000 25,749 25,312
		145,967,005 145,967,005 - - 4,337,309 - - -	25,312 25,312 - - 437 - - -
		150,304,314 145,967,005	25,749 25,312

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16. ISSUED CAPITAL continued

b. Performance Employee Options

No employee performance options were exercised during the year. (2019: $nil option)

No other performance option is granted or exercised during the reporting period.

c. Terms and Conditions

Each ordinary share participates equally in the voting rights of the Company. Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of and amounts paid on the shares held.

d. Options

There were no options on unissued ordinary shares outstanding at the end of the financial year.

1,380,000 unallocated performance options have been approved for granting relevant to the Company’s Employee Share Option Plan.

17. RESERVES

Other Consolidated Equity Option Reserves Business Combination Option Reserves	Consolidated Group 2020 2019 $’000 $’000 - - 593 593 2,345 2,098
	2,938 2,691
	Consolidated Group 2020 2019 $’000 $’000 593 593

The Company granted 8,200,000 options to directors and other key management personnel under the Company employee share option plan in 2009.

The Company granted a further 500,000 success options.

The Company allocated 420,000 performance options to three eligible employees in 2011. Please refer Note 26 to the financial statements for details.

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18. INVESTMENT IN CONTROLLED ENTITIES

Name of Entity	Class of Shares	Equity	Holding	Country of
		2020	2019	Incorporation
		%	%
ABx 1 Pty Ltd	Ordinary	100	100	Australia
ABx 2 Pty Ltd	Ordinary	100	100	Australia
ABx 3 Pty Ltd	Ordinary	100	100	Australia
ABx 4 Pty Ltd	Ordinary	100	100	Australia
ABx 5 Pty Ltd	Ordinary	100	100	Australia
ABxTASML1 Pty Ltd	Ordinary	100	100	Australia
XBxTASML1 Pty Ltd	Ordinary	100	100	Australia
Tasmanian Bauxite Operation Pty Ltd	Ordinary	100	100	Australia
Alcore Limited	Ordinary	88	91	Australia

Parent Entity Financial Information

a. Summary financial information

The individual financial statements for the parent entity show the following aggregate amounts:

	Parent	Entity
	2020	2019
	$’000	$’000
Balance Sheet
Current assets	621	484
Total assets	23,672	23,483
Current liabilities	1,340	1,573
Total liabilities	1,478	1,690
Shareholder’s equity
Issued Capital	25,749	25,312
Reserves	593	593
Accumulated losses	(4,148)	(4,112)
Profit and Loss
Profit/(Loss) for the year	(36)	362
Total comprehensive profit/( loss)	(36)	362

b. Guarantees entered into by the parent entity

Australian Bauxite Limited has not provided guarantees to its subsidiaries within the Group. No liability was recognised by Australian Bauxite Limited in relation to these guarantees as the likelihood of payment is not probable.

c. Contingent liabilities of the parent entity

Refer to note 21.

d. Contractual commitments by the parent entity for the acquisition of property, plant and equipment.

There are no contractual commitments by the parent entity for the acquisition of property, plant and equipment.

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Annual Report 31 December 2020

19. RECONCILIATION OF (LOSS)/PROFIT TO NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES

Profit/(Loss) for the year Capitalised exploration expenditure Government fund refunded Change in operating assets and liabilities: (Increase)/Decrease in trade and other receivables (Increase)/Decrease in other current assets Increase/(Decrease) in trade and other creditors and provisions (Increase) in deferred tax assets Increase in deferred tax liabilities Net cash (outflow)/inflow from operating activities

Consolidated Group 2020 2019 $’000 $’000 (549) (2,476) 9 459 (1,500) (865) (68) (77) (22) (23) 344 362 - - - -

(1,786) (2,620)

20. SEGMENT INFORMATION

The Group operates one business being the mineral, exploration and development of resources in Australia.

	Mineral Exploration and Development of	Mineral Exploration and Development of
	Resources in Australia
	2020	2019
	$’000	$’000
Revenue
- Sale	2,261	2,100
- Interest income	18	72
- R&D Tax offset income	1,500	865
- Others	154	-
Total Revenue	3,933	3,037
Exploration and Other Expenses	(4,233)	(5,513)
Depreciation & amortisation expenses	(249)	-
Segment results	(549)	(2,476)
Assets
Current assets	1,094	1,064
Plant & equipment	299	496
Exploration and evaluation assets	15,493	15,501
Other non current assets	37	56
Total assets	16,923	17,117
Current liabilities	(1,527)	(1,869)
Non-current liabilities	(453)	(432)
Net assets	14,943	14,816

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21 COMMITMENTS AND CONTINGENT LIABILITIES

Tenement Expenditure Commitments Minimum tenement exploration expenditures Tenement lease and levy payment	Consolidated Group 2020 2019 $’000 $’000 308 472 21 21
	329 493

The minimum exploration expenditure commitments $0.30 million and lease payments $0.02 million on the Company’s exploration tenements totalling approximately $0.32 million over the remaining term of the tenements.

Executive services agreement

The Company has agreed with Mr Ian Levy as Managing Director in providing the services to the Company at an agreed rate for the calendar year 2020.

Corporate Service agreement

The Company has entered into a Corporate Service Agreement with Hudson Asset Management Pty Limited pursuant to which Hudson Asset Management Pty Limited has agreed to provide its management, registered office, administrative accounting and secretarial services.

The term of the Corporate Services Agreement has no fixed expiry term and the fee payable is that amount agreed between the parties from time to time. The terms of the Corporate Services Agreement provide that Hudson Asset Management Pty Limited shall act in accordance with the directions of the Board.

There are no other material contingent liabilities as at the date of this report.

22 EVENTS SUBSEQUENT TO BALANCE DATE

At the date of this report there are no other matters or circumstances, which have arisen since 31 December 2020 that have significantly affected or may significantly affect:

• the operations, in financial years subsequent to 31 December 2020, of the Group;

• the results of those operations; or

• the state of affairs, in financial years subsequent to 31 December 2020, of the Group.

23 EARNINGS/(LOSS) PER SHARE

Basic earnings/(loss) per share Fully diluted earnings/(loss) per share Profit/(loss) from continuing operations used in calculating basic and fully diluted earnings per share Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share Adjustments for calculation of diluted earnings per share: Options issued Weighted average number of ordinary shares used as the denominator in calculating diluted earnings per share	Consolidated Group 2020 2019 Cents Cents (0.37) (1.70) (0.37) (1.68) 2020 2019 $’000 $’000 (549) (2,476)
	2020 2019 Number Number 148,465,122 145,967,005 1,380,000 1,380,000
	149,845,122 147,347,005

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Annual Report 31 December 2020

24. KEY MANAGEMENT PERSONNEL DISCLOSURES

a. Directors

The following persons were Directors of Australian Bauxite Limited during the whole of the financial year unless otherwise stated:

• Paul A Lennon Non-Executive Chairman

• Ian Levy Managing Director and CEO

• Ken Boundy Non-Executive Director

b. Other Key Management Personnel

The following persons were other key management personnel of Australian Bauxite Limited during the financial year:

• Leon Hawker Chief Operating Officer

• Paul Glover General Manager

• Nathan Towns Operation Manager

• Mark Cooksey Alcore Limited – CEO

• Henry Kinstlinger Company Secretary

c. Compensation of Key Management Personnel

Compensation of Key Management Personnel
Directors Short term employee benefits Post employment benefits Long term benefits Termination benefits Share based payments Other Key Management Personnel Short term employee benefits Post employment benefits Long term benefits Termination benefits Share based payments		Consolidated Group 2020 2019 $ $ 30,000 60,000 - - - - - - 520,250 -
		550,250 60,000
		836,555 557,890 69,033 50,000 17,321 6,614 - - - -
		922,909 614,504

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24. KEY MANAGEMENT PERSONNEL DISCLOSURES continued

Directors and other key management personnel of Australian Bauxite Limited

Consolidated Group 2020 Directors Paul A Lennon Ian Levy Ken Boundy Total-Directors Other KMP Leon Hawker Paul Glover Mark Cooksey Henry Kinstlinger Nathan Towns Total-KMP 2019 Directors Paul A Lennon Ian Levy Ken Boundy Total-Directors Other KMP Leon Hawker Paul Glover Henry Kinstlinger Benjamin Amzalak Total-KMP	Short Term Employee Benefits	Short Term Employee Benefits	Post Employment Benefits	Long Term Benefits
	Salary & other fees	Non- Monetary Benefits	Super- annuation	Long Service Leave	Share Based Payments	Total
	$ 20,000 10,000 -	$ - - -	$ - - -	$ - - -	$ 159,000 281,250 80,000	$ 179,000 291,250 80,000
	30,000	-	-	-	520,250	550,250
	200,000 200,000 191,665 109,890 135,000	- - - - -	19,000 19,000 18,208 - 12,825	3,330 3,333 3,356 - 7,302	- - - - -	222,330 222,333 213,229 109,890 155,127
	836,555	-	69,033	17,321	-	922,909
	60,000 - -	- - -	- - -	- - -	- - -	60,000 - -
	60,000	-	-	-	-	60,000
	194,000 194,000 109,890 60,000	- - - -	25,000 25,000 - -	3,307 3,307 - -	- - - -	222,307 222,307 109,890 60,000
	557,890	-	50,000	6,614	-	614,504

The amounts reported represent the total remuneration paid by entities in the Australian Bauxite Group of companies in relation to managing the affairs of all the entities within the Australian Bauxite Group.

There are no performance conditions related to any of the above payments.

There are no other elements of Directors and Executives remuneration.

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Annual Report 31 December 2020

24. KEY MANAGEMENT PERSONNEL DISCLOSURES continued

d. Employee Share Option Plan

The Company has adopted an Employee Share Option Plan, ( ESOP ) for its employees. A person is an employee of the Company if that person is an Executive Director, Non-executive Director or considered by the Board to be employed by the Company or a related party of the Company.

The purpose of the ESOP is to provide an opportunity for all eligible employees of the Company to participate in the growth and development of the Company through participation in the equity of the Company.

The Company believes it is important to provide incentives to employees in the form of options which provide the opportunity to participate in the share capital of the Company. The Company expects to apply the proceeds of exercise of the Options to working capital needs, asset or business acquisitions and general corporate purposes. All options to be issued must be consistent with any applicable Listing Rules and having regard to regulatory constraints under the Corporations Act 2001 , ASIC policy or any other law applicable to the Company.

e. Shareholdings and Option Holdings of Directors and Key Management Personnel

Particulars of Interest in the Issued Capital of the Company's Ordinary Shares and Options:

Directors	Shares Direct	Shares Indirect	Options
	Interest	interest
Paul A Lennon	-	3,384,869	-
Ian Levy	-	5,901,316	-
Ken Boundy	773,122	1,479,967	-
Shareholdings and Option	Holdings of Directors and Key Management Personnel
Shares held in Australian Bauxite Limited
2020
Directors	Balance at	Changes during	Balance at
	beginning of year	the year	end of year
Paul A Lennon	2,729,399	655,470	3,384,869
Ian Levy	3,170,189	2,731,127	5,901,316
Ken Boundy	1,379,129	873,960	2,253,089
Other Key Management Personnel
Henry Kinstlinger	-	-	-
Paul Glover	170,895	-	170,895
Leon Hawker	241,728	-	241,728
2019
Directors	Balance at	Changes during	Balance at
	beginning of year	the year	end of year
Paul A Lennon	2,729,399	-	2,729,399
Ian Levy	3,170,189	-	3,170,189
Ken Boundy	1,379,129	-	1,379,129
Other Key Management Personnel
Henry Kinstlinger	-	-	-
Paul Glover	170,895	-	170,895
Leon Hawker	241,728	-	241,728

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Annual Report 31 December 2020

24. KEY MANAGEMENT PERSONNEL DISCLOSURES continued

f. Loans to Directors and Key Management Personnel

Details of individuals with loans above $100,000 during the year are set out below:

Consolidated - KMP 2020 Henry Kinstlinger - ESOP - unsecured loan Benjamin Amzalak 2019 Henry Kinstlinger - ESOP - unsecured loan Benjamin Amzalak	Balance at the start of the year Advance/ (Repayments) Interest payable for the year Balance at the end of the year Highest indebtednes s during the year Additional interest otherwise payable*
	$ $ $ $ $ $ 872,812 (872,812) - - 872,812 - 50,121 - 2,707 52,828 52,828 903 22,263 - 924 23,187 23,187 - 830,725 - 42,087 872,812 872,812 14,029 47,421 - 2,700 50,121 50,121 900 21,343 - 920 27,263 22,263 -

Terms and conditions of loans

The $520,000 interest bearing, full recourse loan partly relates to the individual’s participation in the Company’s Employee Share Option Plan. Part of the secured shares were sold in repaying the advance. Board approved to write off the remaining balance. A second unsecured interest bearing, full recourse loan of $30,000 was advanced to an individual in 2012. Loans are repayable should employees leave the Company. None were written down during the year.

An unsecured interest bearing full recourse loan of $35,000 was advanced to a consultant in 2014. The loan is repayable should the consultant leave the Company. None were written down during the year.

There were no other loans made to Directors or Specified Executives of the Company and the Group during the period commencing at the beginning of the financial year and up to the date of this report.

25. REMUNERATION OF AUDITORS

Audit services: Amounts paid or payable to auditors for audit and review of the financial report for the entity or any entity in the Group Audit services Review services Taxation and other advisory services: Amounts paid or payable to auditors for non-audit taxation and advisory services for the entity or any entity in the Group Taxation Advisory services	Consolidated Group 2020 2019 $ $ 31,670 22,945 12,155 11,575 3,700 1,785 - -
	47,525 36,305

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Annual Report 31 December 2020

26. SHARE BASED PAYMENTS

In 2020 the Company issued 4,337,309 new shares in lieu of services rendered by directors and consultants.

27. RELATED PARTY TRANSACTIONS

a. Parent Entities

The parent entity within the Group is Australian Bauxite Limited.

b. Subsidiaries

Interests in subsidiaries are disclosed in Note 18.

c. Key Management Personnel Compensation

Key management personnel compensation information is disclosed in Note 24.

d. Transactions with Related Parties

There is no transaction with related parties during the year ended 31 December 2019.

e. Outstanding Balance

Outstanding Balance
	Consolidated	Group
	2020	2019
Receivable	$’000	$’000
Non-current
Advance to related entities	-	-
Payable
Non-current
Advance from related entities	-	-

f. Guarantees

No guarantees were given or received from related parties during the year.

g. Terms and Conditions

All transaction were made on normal commercial terms and conditions and at market rates, except that there are no fixed terms for repayment of loans between the parties and that no interest is charged on outstanding balances.

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Annual Report 31 December 2020

DIRECTORS’ DECLARATION

The directors of the Company declare that:

1. The financial statements, comprising the consolidated statement of profit or loss and other comprehensive income, consolidated statement of financial position, consolidated statement of cash flows, consolidated statement of changes in equity and accompanying notes, are in accordance with the Corporations Act 2001 and:

2. (a) comply with Accounting Standards which as stated in accounting policy Note 1 to the financial statements, constitutes explicit and unreserved compliance with International Financial Reporting Standards (IFRS); and

3. (b) give a true and fair view of the financial position as at 31 December 2020 and of the performance for the year ended on that date of the Company and the consolidated entity.

4. In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

3. The remuneration disclosures included on page 18 to 20 of the Directors’ Report (as part of audited Remuneration Report), for the year ended 31 December 2020, comply with section 300A of the Corporations Act 2001.

1. The Directors have been given the declarations by the chief executive officer and chief financial officer required by section 295A.

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the Directors by:

==> picture [126 x 30] intentionally omitted <==

Ian Levy Managing Director & Chief Executive Officer

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Paul Lennon Non-Executive Chairman

Signed at Sydney 31 March 2021

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Australian Bauxite Limited ACN 139 494

INDEPENDENT AUDITORS’ REPORT

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Annual Report 31 December 2020

Australian Bauxite Limited ACN 139 494

SHAREHOLDER INFORMATION

As at 1 March 2021

A. Substantial Holders

Those shareholders who have lodged notice advising substantial shareholding under the Corporations Act 2001 are as follows:

Shareholder No. of Shares % held

nil

B. Distribution of Equity Securities

B. Distribution of Equity Securities
			% of Issued
Range	Total Holders	Units	Capital
1 - 1,000	82	19,162	0.01
1,001 - 10,000	823	4,789,707	3.19
10,001 - 100,000	803	30,645,617	20.39
100,001 - 500,000	153	32,894,679	21.72
500,001 - 1,000,000	20	13,464,320	8.95
1,000,001 - and above	31	68,490,829	45.74
Rounding			0.00
Total	1912	150,304,314	100.00

C. Unmarketable Parcels

			Minimum Parcel size	Holders	Units
Minimum $500.00	parcel at $0.115	per unit	4,348	392	893,450

D. Twenty Largest Shareholders

The names of the twenty largest holders of quoted equity securities aggregated are listed below:

Rank	Name	Units %	of Issued
			Capital
1	JUSTEVIAN PTY LIMITED	5,901,316	4.09
2	YARRAANDOO PTY LTD	5,630,000	3.75
3	WSF PTY LTD	5,181,732	3.45
4	AFTRON PTY LTD	4,700,000	3.13
5	J P MORGAN NOMINEES AUSTRALIA PTY LIMITED	4,609,715	3.07
6	LONDON WALL INVESTMENTS PTY LTD	3,823,000	2.54
7	TSING CAPITAL PTY LTD	3,800,000	2.53
8	PARAMUL PTY LTD	3,384,869	2.26
9	HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED	3,239,594	2.16
10	STATE ONE STOCKBROKING LTD	3,210,814	2.14
11	MR LOUIS GHIRARDELLO	2,223,421	1.48
12	GREATNECK PTY LTD	1,800,000	1.20
13	MR CHRIS TACKENBERG	1,720,200	1.14
14	BAYBOL PTY LTD	1,601,215	1.07
15	N K C PTY LTD	1,578,000	1.05
16	ROMSUP PTY LTD	1,559,000	1.04
17	MR BERT VAN NETTEN	1,406,700	0.94
18	REFINED ORE INDUSTRIES PTY LTD	1,400,000	0.93
19	MISS KIM VAN NETTEN	1,375,451	0.92
20	MR CHRISTOPHER TACKENBERG	1,374,669	0.91
	Total	59,519,696	39.77
	Total Remaining Holders Balance	90,784,618	60.23
		150,304,314	100

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Australian Bauxite Limited ACN 139 494

E. Unquoted Securities (other than options issued under an Employee Share Option Plan)

Class	Exercise Price	Expiry Date	No. of Securities	No. of Holders	Name where holder holds 20%	Percentage held
N/A	N/A	N/A	N/A	N/A	N/A	N/A

F. Voting Rights

There are no restrictions on voting rights. On a show of hands every member present in person or by proxy shall have one vote and upon a poll each share shall have one vote. Where a member holds shares which are not fully paid, the number of votes to which that member is entitled on a poll in respect of those part paid shares shall be that fraction of one vote which the amount paid up bears to the total issued price thereof. Option holders have no voting rights until the options are exercised.

G. List of Escrowed Securities

There are no escrowed securities as at 1 March 2021.

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