For the year ended 30 June 2021 ABN: 33 114 400 609

Corporate Directory

Directors

Ms Alice Wong, Non-Executive Chairperson Mr Alistair Stephens, Deputy Chairperson, Managing Director and CEO Mr William Hayden, Non-Executive Director Mr Ricky Lau, Non-Executive Director Mr Bo Tan, Non-Executive Director

Company Secretary Mr Michael Fry

Principal & Registered Office Unit 1, 26 Elliott Street Midvale WA 6056 Telephone: (08) 6118 7240 Facsimile: (08) 6323 0418 ABN: 33 114 400 609

Auditors

Australia: Ernst & Young 11 Mounts Bay Road Perth WA 6000

Malawi: Ernst & Young Apex House Kidney Crescent Blantyre Malawi

Share Registrar Automic Group Level 2, 267 St Georges Terrace Perth WA 6000 Telephone: 1300 288 664

Securities Exchange Listing Australian Securities Exchange (Home Exchange: Perth, Western Australia) Level 40 Central Park 152-158 St Georges’ Terrace Perth WA 6000 Code: GBE

Bankers Westpac 109 St Georges Terrace Perth WA 6000

Chairperson’s Address

Review of Operations 2

Annual Financial Report
Directors’ Report	21
Remuneration Report – Audited	23
Auditor’s Independence Declaration	32
Consolidated Statement of Profit and Loss	33
and Other Comprehensive Income
Consolidated Statement of Financial Position	34
Consolidated Statement of Changes in Equity	35
Consolidated Statement of Cash Flows	36
Notes to the Financial Statements	37
Directors’ Declaration	60
Independent Auditor’s Report	61
ASX Additional Information	66

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Chairperson’s Address
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Dear shareholders and interested persons,

On behalf of the Board of Globe Metals & Mining Limited (“Globe” or “the Group”), it is my pleasure to present to you the 2021 Annual Report.

As you will have read in the Company’s ASX announcement of 19 August 2021, Globe’s wholly owned Malawian subsidiary company, Globe Metals & Mining (Africa) Limited, has now been granted a Mining Licence for the Kanyika Niobium Project.

Grant of the mining licence is a significant step for the Group and reflects tireless work by the Company’s executive team, not least of all, Mr Neville Huxham who has been the primary person responsible for the interface with the Malawian Government, tribal leaders, local government, the Kanyika Community, and a range of other interested groups and persons.

Congratulations to the team. Individually and as a group they should be extremely proud of achieving the grant of the first mining licence under the new Mines and Minerals Act of Malawi.

As at the date of writing, we are yet to receive an executed copy of the Kanyika Mine Development Agreement. It is an important document that outlines the fiscal regime under which the project will operate and sets out the terms upon which the Company is able to develop the minerals contained in the project. Further delay in the Mine Development Agreement will likely delay project funding and off-take arrangements and as such it is critical that this is resolved promptly.

Our efforts in project development are ramping up. Our focus has shifted to off-take and financing as we work towards becoming the first new niobium mine into production in over 50 years. To this end, the Company has recently recruited several senior personnel with specialist skills and high-level experience to assist the Company in these respects. Whilst each has only been with Globe for a short period of time, their expertise, know-how and professionalism are evident for all to see and will assist Globe in making progress on resolving outstanding matters and ultimately move towards our goal of production.

The timing could not be better from Globe’s perspective. Niobium demand is growing each year and its range of uses is expanding rapidly as scientists and manufacturers discover new and exciting applications for niobium. Its unique characteristics make it critical to many past, present and future technologies. These include its military, aerospace and space applications, its use in medical imaging, wind turbines, CERN’s Large Hadron Collider, ITER’s magnetic fusion project, and more recently its importance in quantum electronics, in the manufacture of semiconductors and in batteries for the electrical vehicle industry.

The Kanyika Niobium Project will be an important project, it will employ and train thousands of local staff over its life, and through the many community programs envisaged, it can be expected to improve the lives of the Kanyika community and help contribute to a better Malawi. The Project will usher in a new age in Malawi utilising state-of-the art technology for a state-of-the art metal. Recently, we have applied for a novel patent covering metallurgical technology for the recovery of pyrochlore which allows simpler beneficiation with greater recovery and lower OPEX.

For the Kanyika community, this is a vitally important development. At last, there can be real conversations about the timelines to development, and the initiatives that the Company can implement in its social responsibility programs.

In closing, I thank all shareholders, board of directors, and employees for their support of the Group in the year past and I am looking forward to their continued support in the year to come.

Yours sincerely,

Chairperson

Alice Wong

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Review of Operations
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Niobium transforms materials into smarter materials to build greener structures, help make energy cleaner and mobility more sustainable.

Niobium is a metal. When pure, it is soft, ductile, and highly resistant to corrosion. Niobium (Nb), atomic number 41, belongs to the transition metals group and is the second element of the fifth column – Group 5. Niobium products are obtained from metallurgy processes and because Niobium enhances properties and functionality, it is used in a wide range of materials, such as alloy steel and oxides, and applications in sectors like mobility, energy and construction.

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Uses

Approximately 90% of all niobium used is consumed as ferroniobium in the production of High Strength Low Alloy (HSLA) steels which contain on average about 0.03%Nb.

HSLA steels are used extensively in the construction and automotive industries, and also in the manufacture of high pressure gas and oil pipelines. The remaining 10% of niobium goes into a wide range of smaller-volume but higher-value applications, such as high-performance alloys (which include superalloys), carbides, superconductors, electronic components and functional ceramics, and into various new-age technologies.

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Niobium is a key component in new generation superalloys vital to aerospace, construction, transportation, oil & gas, wind turbine, military equipment industries

Although the unit consumption of niobium in steel is very small—fractions of a percent by weight of a tonne of finished steel—the benefits are large. Niobium additions in steel significantly increases strength, so less steel is required overall, which can reduce cost substantially.

This has been the basis for the development and growth in its use in steels over the last few decades and should remain the driver in the years to come. Niobium intensity of use is relatively low in several large, steel-producing nations, such as China, but also India and Southeast Asia.

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Spotlight: Niobium and the Automotive industry

Niobium has and continues to play a major role in the automotive industry. Weight reduction and greater energy efficiency have never been more important than in the motor vehicles of today.

Lightweight Vehicles

The emerging focus of governments across the world on minimizing carbon emissions and enhancing fuel economy (as per the Corporate Average Fuel Economy standards) has increased the importance of lightweight materials in the production of automobiles.

In recent years, the automotive industry has been consistently focusing on vehicle weight, as it has a direct impact on driving dynamics, fuel consumption, and agility. The usage of niobium as a microalloy enhances the toughness and strength of steel, while also ensuring that the automobile body structure is light. At the same time, it also makes vehicles safe in the event of a collision. For instance, usage of about 300 gram of niobium in steel for a mid-size passenger car reduces the weight of the vehicle by approximately 200 kg, in turn, improving the fuel economy of the vehicle (1 liter per 200 km) and reducing exhaust emissions.

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$9 of Niobium added to a mid-sized automobile reduces its weight by 100kg, increasing fuel efficiency by 5%

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Electrical Vehicle Batteries

A recent area of focus and one which is gaining significant momentum is the use of niobium in electric vehicle batteries for fast-charging, improvement of driving range, and for safety.

Toshiba and CBMM, the world’s largest supplier of niobium, have for some years been working together on niobium -titanium-oxide (NTO) anodes for electric vehicles. Toshiba was first to market with its niobium based battery.

Toshiba’s SCiBTM Battery with TNO Anode for electric vehicles, allowing higher performance, longer-life, quicker charging, and improved safety, has been in manufacture since early 2019 and has since been chosen as the battery of choice for selected models by automotive manufacturers including Mazda, Mitsubishi, Nissan, and Hino. More recently, Toshiba’s niobium based batteries have been selected for trucks and cranes showing their application is widespread.

Others are starting to follow.

Nyobolt is a UK based company that is receiving considerable media and press following its claim that its Stealth Battery can achieve full recharge in just 60 seconds using niobium rather than lithium-ion. It recently secured $10 million to build pilot facilities and grow engineering and application capabilities.

Echion Technologies, born out of the laboratories of the University of Cambridge Engineering Department, is another. Echion completed a £10M Series-A funding round in August 2021 and boasts that its niobium-based anode materials enable cells with a unique combination of fast-charge, safety, and high energy density to achieve:

✓ 0 to 100% charge in 6 min or less, 5 times faster than standard Li-ion cells.
✓ Twice the volumetric capacity of LTO anodes (x2)
✓ Safe operating voltage
✓ 1000’s of cycles demonstrated
✓ Low cost

Nano One is another, having recently entered into a co-development agreement with Niobium producer CBMM, with the objective of optimising Nano-One’s patented One_pot process for nickel rich cathode materials using niobium as a coating.

According to a recent report, metals from Group 5 of the periodic table (vanadium, niobium and tantalum) are likely to find their way into more automotive batteries in an effort to boost performance.

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The report highlights that:

With the goal of further reducing ─ or even eliminating ─ cobalt and moving beyond the energy limits of the present cathode generation, Group 5 metals could enable battery electrode designs with demonstrated capacities in excess of 250 mAh/g in the next ten years.
Group 5 metals excel at safety and power density beyond extending the lifespan of the electrochemical system.
Group 5 metals may advance nickel-rich cathodes for batteries and lead the way to charging EVs as fast as filling up conventional cars.

(Source: https://medium.com/batterybits/how-strategic-metals-could-drive-next-gen-li-ion-batteries ).

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Further adding to the forecast increased use of niobium in electric batteries, is a report from Reuters published on 9 February 2021 that Brazilian mining company CBMM, the world leader in niobium with an estimated 85% market share, is expecting to sell 45,000 tons of niobium oxide by 2030, up from just 100 tons this year, with niobium oxide sales to rise to ~25% of the company’s revenue if forecasts are met. ( Source: Brazil miner CBMM seeks to sell 45,000 tons of niobium oxide by 2030 | Nasdaq )

New Applications

Niobium is at the forefront of numerous new technologies including gas and wind turbines, medical imaging, particle accelerators, space travel, and in the manufacture of high-performance and ultra-safe ultra-rapid rechargeable batteries for electric vehicles.

‘ Niobium’s unique combination of physical and chemical elements makes it a material of choice in a myriad of challenging high technology electronic

applications , H.C. Starck Solutions

Quantities of niobium are being used in nickel, cobalt, and iron-based superalloys for such applications as jet engine components, gas turbines, rocket subassemblies, turbo charger systems, heat resisting, and combustion equipment. These superalloys were used, for example, in advanced air frame systems for the Gemini program and in the main engine of the Apollo Lunar Modules, and more recently in the liquid rocket thruster nozzles of the Melin Vacuum engines developed by SpaceX for the upper stage of its Falcon 9 rocket.

Niobium is a metal that transforms, improves materials to accelerate a disruptive, technological world.

Of recent times, niobium has become critical to quantum electronics and in the manufacture of high capacity semi-conductors.

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Power from nuclear fusion ITER is an international project to build the world's largest tokamak, a magnetic fusion device that could be used to generate electricity. The NbTi and Nb3Sn superconducting electromagnets imprison a doughnut-shaped ring of plasma (far hotter than the Sun’s core) in which nuclear fusion occurs. The total weight of the magnet system, including the steel support structures, is about 10,000t, of which 500t are Nb3Sn strands and 250 t NbTi strands. The reactor is expected to be ready for preliminary testing in late 2025.

CERN physicists and engineers used super-conducting electromagnets made from NbTi to contain and direct beams of highly accelerated particles. Among its many successes, CERN’s Large Hadron Collider (LHC) detected the Higgs boson, an elementary particle in the Standard Model of particle physics. LHC is currently being upgraded to include a new set of Nb3Sn magnets, which will make it even more powerful and when complete in 2026, scientists will be able to explore the fundamental structure of the universe as never before.

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Niobium – a Strategic Metal

Due to its widespread use in defence and aerospace, niobium is considered a ‘strategic metal’ by several governments, including United States of America, United Kingdom and Russia.

A “strategic metal’ is one for which there are few or no substitutes, and for which there exists an essential use.

In the case of the United States of America, the critical nature of niobium is high, because current production is restricted to only a few countries and it is wholly dependent upon imports, and the significant affects that a restriction in supply would have on the defense, energy, high-tech industrial, and medical sectors.

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Demand

Approximately 90% of niobium is currently consumed as ferro-niobium and used in the manufacture of High Strength Low Alloy Steels.

Demand for ferroniobium increased considerably in 2019. A tight vanadium market coupled with the introduction of new rebar standards in China caused ferrovanadium demand (and prices) to spike in 2018. This prompted unexpected levels of substitution. Chinese steel makers started to use ferroniobium in Grade 3 rebar which, coupled with strong demand for ferroniobium in line pipe and automotive applications, meant that imports into China (and exports out of Brazil) reached record highs.

The COVID-19 pandemic halted the rising demand for ferroniobium in the early part of 2020, however analysts report that demand returned to more normal levels from mid-2020 with China largely having recovered from the effects of the pandemic.

On 14 October 2021, the World Steel Association (Worldsteel) released an update of its Short Range Outlook (SRO) for 2021 and 2022, forecasting that steel demand will grow by 4.5% in 2021 and reach 1,855.4 Mt after 0.1% growth in 2020. In 2022, steel demand will see a further increase of 2.2% to 1,896.4 Mt. Worldsteel’s forecast assumes that, with the progress of vaccinations across the world, the spread of variants of the COVID virus will be less damaging and disruptive than seen in previous waves.

The demand for steel and the increasing demand from a range of technological applications bodes well for the demand for niobium

Scientists and manufacturers are only now beginning to imagine the range of technological applications for niobium

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Supply

Almost all niobium supply is sourced from three industrialised producers, two in Brazil and one in Canada. By far the largest is CBMM, which operates a pyrochlore mine and processing plant near Araxá in east-central Minas Gerais state in Brazil. CBMM is estimated to account for approximately 85% of the world’s supply. While historically CBMM has operated comfortably below operational capacity, recent increases in demand translated into rising operating rates and prompted it to increase its niobium production capacity by 50%.

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The other major producers, Magris Resources in Canada and China Molybdenum in Brazil are thought to be operating at close to capacity.

Pricing

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Niobium is typically used in the structural steel industry, the chemical industry, or the super and master alloy industries. Currently, niobium prices range from US$45 per kilogram (US$45,000 per tonne) for standard ferroniobium metal and greater than US$50 per kilogram for niobium pentoxide (Nb2O5). Higher purity and more specialised products realise higher prices. The volatility of niobium prices is extremely low, one key factor in customer supply-chain certainty.

Tantalum

Tantalum is a by-product of the processing of pyrochlore at Kanyika.

Tantalum is typically sold as a tantalum pentoxide (Ta2O5), as a tantalum salt (K2TaF7) or tantalum metal. Most tantalum is used in the aerospace industry (including space flight), the electronics (technology) industry or in the health industry.

Roskill are forecasting positive growth in tantalum demand of 4.6% per year to 2029; predicting rising supply from lithium miners to keep tantalum prices in check. However, demand for highperformance tantalum capacitors - for use in used in electrical circuits in personal computers, cell phones and audio amplifiers, among other devices – are presently booming with inventory levels were reported to be low, especially in the United States, causing the price of tantalum to spike in recent months.

Tantalum concentrate prices (for 30% Ta2O5 content) have decreased in prices significantly due to excess supply and have historically exhibited significant variability. Tantalum pentoxide prices, having much lower price volatility, currently range from US$250 to $310 per kilogram dependent on the quality.

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Globe Metals and Mining Limited (Globe) is an Australian registered public company and has been listed on the ASX since December 2005 (ASX: GBE).

The Company’s primary focus is its Kanyika Project, which located in central Malawi, ~260kms north of the capital city of Lilongwe.

The Kanyika Project is host to a large niobium and tantalum resource, refer following, and is the 5[th] largest un-developed niobium resource in the world.

The Company was recently issued a mining licence for Kanyika, valid for 25 years; and is progressing plans to enter into production by 2025.

The Company has an administration and operational centre in Lilongwe (Malawi) in support of its on-the-ground exploration activities and a corporate head office in Midvale, WA.

Kanyika Niobium Project

Globe identified niobium and tantalum mineralisation in 2007 at Kanyika has been undertaking exploration and resource development activities since.

Drilling programs totalling 33.8 kilometres of percussion and core drilling have confirmed the extent of mineralisation. Structured and progressive engineering studies have resulted in the current (JORC 2012) resource statement and given rise to significant improvements and simplifications in the process flowsheet.

In addition, Globe has undertaken substantial metallurgical optimisation work and commissioned a pilot plant to demonstrate and further optimise metallurgical processes. Metallurgical optimisations studies have improved recoveries from 62% in 2012 to 75% today, through simple novel patented (patent AP 5248) metallurgical processes.

The Kanyika operations will produce a pyrochlore mineral concentrate that contains both niobium and tantalum in commercially valuable volumes to be shipped to a refinery for advanced processing into high purity materials.

Mining and Processing

The Malawi Kanyika operations involve a small-scale conventional drill and blast mining operation that mines and transports ore to a processing plant. The mining fleet will consist of hydraulic excavators, off-highway dump trucks, and standard open pit drilling and auxiliary equipment. Process mill-feed and waste will be transported from the pit to either the Run of Mine (ROM) pad for immediate processing, or the low-grade stockpile for later re-handling and processing, and to the waste rock storage dump. During the early years of operation, low grade mill feed will be stockpiled adjacent to the ROM pad to maximise the high-grade feed at the start of operations. A dedicated network of haul roads will be built to separate light vehicles from the haul trucks. The roads will be graded and watered to mitigate dust generation.

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Kanyika Block Model Grades

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On average the mine will produce 1.5 million tonne of ore per annum for feed to the process plant, and an additional 2 million tonne of waste rock that will be stockpiled in a dedicated waste dump to the southeast of the pit.

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Image: General Arrangement of the Kanyika Niobium Project

Processing and Concentration

At the processing plant, ore is crushed and then ground to less than 0.1mm for treatment to recover pyrochlore – a mineral containing niobium and tantalum.

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The operations process flowsheet was developed based on results from the extensive test work conducted on Kanyika mineralisation evaluating a range of beneficiation strategies.

The concentrator incorporates conventional integrated crushing and grinding circuit and magnetic separation before using flotation and gravity concentration techniques to produce a pyrochlore concentrate (approximately +30% Nb2O5 and 1.0% Ta2O5). The process technique gives excellent results with mass yields less than 1% for over 75% recovery of niobium and tantalum.

The process flow scheme is illustrated in the figure below.

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Concentrator Flowsheet Schematic

The concentrator process scheme is comprised of established unit operations and equipment, but with a unique configuration. The magnetic separation circuit is akin to an iron ore beneficiation circuit and the flotation concentration circuit is a relatively conventional oxide flotation scheme with moderate complexity comparable to other niobium producers.

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Through a series of simple separation and flotation stages, a pyrochlore mineral concentrate is produced grading about 40% niobium and 1% tantalum. This concentrate is filtered and packed for export.

Refining

Refining involves the treatment of pyrochlore mineral concentrate with strong acids to liberate niobium and tantalum products. Solvent extraction recovers niobium as niobium pentoxide and tantalum as tantalum pentoxide - both grading better than 99% purity. The refinery could alternatively produce a tantalum salt (K2TaF7) used in the electronic industry, dependent on customer demand. This process technique was chosen as the refinery will be able to recover and sell both niobium and tantalum creating a value-added outcome. The alternative process route, smelting, would result in a niobium product with no credit for the content of tantalum and therefore does not result in the best commercial outcome for the project. The recovery and sale of tantalum products results in an additional 15% of revenue to the value of the mineral concentrate and refinery operations. This additional revenue is expected to almost cover the total operating cost of mining and refining operations.

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Image: Refinery Layout

Production

The current optimised operational design results in the life-of-mine average production of 3,250 tonne per annum of niobium products and 120 tonne per annum of tantalum products. Some production is higher in the early stages of the operation due to high ore grades in the mining schedule.

Products

The Company’s operations will produce both high purity niobium and tantalum pentoxide products. Based on customer specifications, these products can then be further refined in to high-purity highvalue products.

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Mineral Resources and Ore Reserves

On 11 July 2018, Globe published an updated Mineral Resource Estimate for the Kanyika Niobium Project (KNP) calculated in accordance with 2012 JORC guidelines.

The resource calculated was unchanged from the previous Mineral Resource Estimate published on 7 January 2011, calculated in accordance with the 2004 JORC guidelines, and is as follows:

Table 1: Mineral Resource Estimate for Kanyika using a 1,500 ppm Nb2O5 cut-off grade


Category	Size (Mt)	Nb2O5 Grade (ppm)	Ta2O5 Grade (ppm)

Measured	5.3	3,790	180
Indicated	47.0	2,860	135
Inferred	16.0	2,430	120
			135
Total	68.3	2,830

Note: no additions or changes have been made to the Mineral Resource Estimate since it was last published.

The Company published its Ore Reserve following the grant of a Large Scale Mining Licence for the Kanyika Project on 19 August 2021, as follows:

Table 2: Ore Reserve for Kanyika using a 1,500 ppm Nb2O5 cut-off grade


Category	Size (Mt)	Nb2O5 Grade (ppm)	Contained Nb2O5 (t)	Ta2O5 Grade (ppm)	Contained Nb2O5 (t)

Proved	5.3	3,680	19,504	171	906
Probable	28.5	2930	83,505	136	3,876
					3,876
Total	28.5	2930	83,505	136

Note: no additions or changes have been made to the Mineral Resource Estimate since it was last published.

The Ore Reserve is based on substantial studies including, environmental and environmental impact, social, legal environment, geological, mineralogical, geotechnical, hydrology, metallurgical, project location, mining, process flowsheets, transportation, project management, marketing, risk assessment, mine closure and rehabilitation, policy and operational management procedures, capital estimates and operating estimates.

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Mining Licence Granted

Globe’s wholly owned subsidiary, Globe Metals & Mining (Africa) Limited (GMMA) was granted Large Scale Mining Licence LM0216/21 on 13 August 2021.

LM0216/21 is valid for twenty-five (25) years and entitles GMMA the exclusive right to prospect for and mine minerals(s) in the licence area on the terms and conditions attaching to the licence. The most material of these terms and conditions are listed below.

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The terms and conditions attaching to the mining licence require that GMMA must, amongst other things:

pay annual charges prescribed under the Mines and Minerals (Mineral Rights) Regulations 1981 and mineral royalties in accordance with the Mines and Minerals Act.
have a right to mine and process pyrochlore
endeavour to give employment preferentially to citizens of Malawi
endeavour to procure goods and services produced and manufactured in Malawi provided that they can be obtained at competitive terms and in comparable quality.
submit reports to the Registrar of Mineral Tenements as required
comply with all conditions imposed under Part VIII of the Mines and Minerals Act (No. 8 of 2019).

Pursuant to the Mines and Minerals Act, the Malawi Government is entitled to a 10% free equity interest, subject to formally notifying GMMA of its desire to take up its entitlement. As at the date of this report, Globe or GMMA are yet to receive any such notice.

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Feasibility Study

Upon Globe being granted a mining licence for Kanyika Globe publicly released the results of its feasibility study which was undertaken to establish the most appropriate configuration for the Kanyika Project and to determine its economic feasibility.

The results of the Feasibility Study highlight a robust project with strong financial returns. Study highlights are:

Kanyika Niobium Project is positioned to be the first niobium mine in Africa and the first new producer in 50 years.
Over 90% of niobium is used in the manufacture of High Strength Alloy Steels. Steel production is growing year on year. Intensity of usage in steel is rising rapidly as markets, and in particular China, moves towards the manufacture of higher quality steels.
Niobium’s unique characteristics make it central to many of the world’s past, present and future technologies with scientists and manufacturers only now beginning to imagine the range of technological applications for niobium.
Niobium is critical to military, aerospace, space and medical industries and becoming increasingly important in quantum electronics, in the manufacture of semiconductors and in the electrical vehicle industry.
Globe will target high-end, high-value applications for niobium.
A mine life of ~ 23 years with capability to extend mine life to 38 years subject to the conversion of inferred resources through further drilling.
The Feasibility Study is based on material assumptions outlined in this announcement. Globe considers the material assumptions to be based on reasonable grounds, there is no certainty that they will prove correct or that the range of outcomes indicated will be achieved.
Average annual production of 3,250 tonnes of niobium and 140 tonnes of tantalum.
High metal recoveries of ~75% for niobium and ~73% for tantalum
Patented metallurgical advancements ( commercial in confidence ) provide competitive advantage allowing substantially simpler beneficiation with greater recovery and lower process OPEX.
Pre-production capital costs of ~USD250m.
KNP will generate revenues of USD5.6B over its 23-year mine life, valued at a base price of US$55/kg for Nb2O5 and US$410/kg for Ta2O5 mostly as Tantalum K-Salts.
Net Present Value of US$1B (pre-tax) at a discount rate of 8% per annum.
Internal Rate of Return of ~50% (pre-tax).
Payback period of ~ 1.5 years (from first production).
All approvals in place to immediately commence construction upon funding and relocation of affected persons.

Globe initially commenced its feasibility study in 2009 and suspended further work in 2012 whilst it undertook further studies and awaited issue of a mining licence. In 2018, Globe commenced updating and finalising the technical components of the engineering program in order to support project funding initiatives, in light of the changing outlook for the mining and resources industry, and feedback from the Government of Malawi on anticipated progress of the mining licence and incorporating recent studies and plans associated with the mineral resource, mining, metallurgical studies, processing, engineering design and infrastructural support.

As part of the update of the feasibility study, Globe obtained updated capital and operating cost estimates and updated its financial model for revised capital costs, revenues and operating costs in order to determine key metrics including but not limited to project revenue, profitability and payback.

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The quality of the engineering studies for a large proportion of the plant design qualifies the project as a Class 3, FEL3 standard under AACE[1] practices with components at Class 4, FEL2. Since the study has been completed a significant time has passed related to the negotiations on the Development Agreement with the Government, resulting in the associated quotations and related cost estimates being outdated. Parts of the plant where intellectual property has enhanced project metrics are at prefeasibility status where a capital estimate has been allocated but the quantum is not significant to total capital costs but is material to operations. The Company will progress the project to engineering programmes and complete associated marketing and financing agreements and can upgrade the study to an AACE Class 2 FEL4 bankable engineering estimation standard in time.

Mine Development Agreement

The Mine Development Agreement remains unsigned at the date of this publication.

The Project’s published economics are dependent upon the execution of the Mine Development Agreement with the Government of the Republic of Malawi for the Project materially on the same terms and conditions as reflected in the draft Mine Development Agreement tabled with the Malawi Government in November 2020. As at the date of this report, the Malawi Government has put forward no changes to the draft Mine Development Agreement. Relevantly, the Malawi Government has verbally advised Globe that the Mine Development Agreement will soon be executed; a sentiment it has expressed publicly and is reflected in journalist articles appearing in local Malawi newspapers.

The Mine Development Agreement sets out the key terms and conditions under which Globe can engage in mining at Kanyika and the fiscal regime applicable to GMMA and the project.

The Mine Development Agreement carries conditions regarding sustainable development and economic, social and environmental investment. Its aim is to ensure that, whilst Globe may generate a profit from its investment and know-how, the Republic of Malawi and its people benefit as well.

A key outcome of the project is the flow of financial, community and social benefits to the Malawian people and communities. Over the life of the operation, the commercial model forecasts a government mineral royalty of 5% that will earn the Malawi Government an estimated US$86.5M, a 0.45% community mineral royalty, and other community social responsibility programs and community development agreement programs that will generate additional local opportunities.

The key aspects of the draft Development Agreement are as follows:

Globe has the right to mine niobium (Nb), tantalum (Ta), and deleterious uranium (U) and to establish and operate a Processing Facility to be located in the Mining Area;
The Government of the Republic of Malawi to receive, at no cost, a non-diluting ten per cent (10%) equity interest in KNP.
The Government of the Republic of Malawi is entitled to purchase, at Fair Market Value, a further a ten per cent (10%) equity interest in KNP, that is capable of being diluted in the event that the Government does not meet any call by the Company for additional equity funding.
The Government of the Republic of Malawi to receive a royalty of 5% on mineral concentrate sales at mine gate as prescribed for Minerals under the Taxation Act.
1 “Association for the of Advancement of Cost Engineering” that is referencing practice for the AUSIMM Cost Estimation handbook Monograph 27.

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Review of Operations
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The Kanyika Community to receive a royalty of 0.45% on mineral concentrate sales at mine gate as prescribed under the Mines and Minerals Act (2018).
Globe to be subject to the provisions of the Taxation Act, the Value Added Tax Act, the Customs & Excise Act and any other applicable Tax Laws except that Globe to be exempt from import duty and import excise and shall be zero rated for VAT on imports and capital goods, consumables and services; excepting that Globe will not be subject to any increases in applicable taxes during the Stability Period of 10 years or such other length of time as extended;
Globe to maintain a ratio of indebtedness to net worth equal to or lower than 3:1 at all times
Globe to expend its Investment Commitment of $200M substantially in the manner and on the terms set out in the Agreement;
Globe to conduct all operations within the laws of Malawi and in accordance with International Standards
Globe to maintain adequate production and mining records and to report this information to the Malawi Mines Minister on a monthly, quarterly and annual basis;
Globe shall comply with the applicable Environmental Laws, and Atomic Energy Act and Regulations, and provide an environmental performance bond of US$5 million in the form of an irrevocable letter of credit or bank guarantee with a commercial bank in Malawi;
Globe to be responsible for resettling of affected Malawi citizens in accordance with an approved Resettlement Policy Framework;
Globe to carry out activities set out in an approved Social Responsibility Plan;
The Government shall ensure after consultation with the relevant District Council and Commissioner for Lands that the area under the Kanyika Mineral Right, shall to the extent required, be and remain zoned for use or otherwise protected during the time that the Company holds the Kanyika Mineral Right so that the Operations may be carried out on such land in conformity with existing legislation and that any interference or interruption by the Government or any other Party be done in conformity with existing legislation;
Globe to preferentially employ and train Malawian citizens for operations, and unskilled labour positions, and in the areas of financial, accounting, technical, administrative, supervisory, managerial and executive positions and other skilled positions (provided applicants have necessary skill and experience and are fit and proper);
Globe to preferentially procure goods and service from local Malawi businesses provided that goods and services are at least comparable in quality, terms, delivery, service, quantity and price;
Globe to indemnify and hold harmless the Government and its officers and agents from all losses and liabilities incurred as a direct consequence of death or injury to Persons or damage to property directly resulting from the conduct of the Company; and
the Government undertakes that it shall not, by direct or indirect means, nationalize or expropriate, except pursuant to a public purpose and under the process of Law; and on a nondiscriminatory basis; and upon prompt payment of just and adequate compensation based on Fair Market Value.

GLOBE METALS & MINING – ANNUAL REPORT 2021

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Community

The community are critical to the advancement of the Kanyika Project. Whilst Globe now has a mining licence, obtaining a ‘social licence’ from the community, is as important. Globe desires to work closely with the community to achieve production at Kanyika. The project will employ and train thousands of local staff over its life, and through the many community programs envisaged, it can be expected to improve the lives of the Kanyika community and help contribute to a better Malawi.

Relocation

The relevant members of the Kanyika community affected by development, construction and operations activities will require relocation from the Kanyika project area. The Company will work closely with Government and Traditional Authorities to facilitate the relocation and resettlement of people within the mine area when it is appropriate to do so.

The Company has prepared a relocation policy which was submitted as part of an Environmental and Social Impact Assessment (ESIA). Since the publication of the ESIA changes in Malawian legislation will result in a different process for relocation. The framework drafted considers the policy and commitments to be made by the Company in implementing the resettlement and the relocation plan sets out the detailed action plan and responsibilities for implementation of the resettlement process.

The relocation plan details the background of the resettlement area including a description of the affected area, land tenure and an initial description of the assets requiring relocation. It provides the legal framework for land acquisition, compensation and resettlement, and provides guiding principles and commitments by the Company for resettlement preparation and implementation. The relocation plan will culminate in an agreement with the affected persons to be resettled including the compensation required. The Company will ensure that in this process the rights of the affected persons are not compromised, and that compensation is fair to all persons.

In addition, relevant sites of historical significance and graveyards will also be preserved or relocated where necessary. These works will be carefully undertaken with supervision and management by local residents and independent consultants.

Environmental Studies

Globe has completed environmental and social impact assessment studies for the upgrade of 30 kilometres of road from Chataloma on the M1 highway to the Kanyika Project site and been issued EIA certificate number 41.7.4. In addition, the Company has completed the Kanyika Project environmental and social impact assessment and been issued EIA certificate number 43A.4.5 for site works and operations. In May 2020, the Company updated and resubmitted this report such that it complies and accounts for changes with the amended Environmental Management Act (2016) and the new Mines and Minerals Act (2018). A copy of this report is available on the Company website.

Project Development and Financing

The Kanyika Project remains ready for development subject to execution of the Mine Development Agreement and initiatives with marketing and finance. The executive team are presently in dialogue with various parties regarding marketing and financing; with strong potential evident. Globe will provide market updates for material developments when and as they occur.

GLOBE METALS & MINING – ANNUAL REPORT 2021

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Project Funding Requirements

In Malawi, for mining and processing operations, a capital estimate of US$200 (to an accuracy of - 5% to +15%) includes all Plant Property and Equipment (“PPE”) for the mine and processing plant, offices and accommodation facilities and upgrading road infrastructure from the main highway.

The current estimate for the offshore refinery is in the order of US$50M. This cost will be dependent on the location of the refinery, an exercise currently in establishment and will be dependent on the infrastructural services and commercial environment where the refinery will be located. It will also depend on the types and qualities of product that customers will need. For instance, producing a 99.99% niobium pentoxide will require a larger washing plant, and if a customer wants a portion of production as a tantalum salt (K2TaF7) then relevant equipment will be required. The refinery may even produce a portion of production as a high purity ferroniobium metal for sale into the master or superalloy metal industries.

In addition to direct costs for capital, the development phase will also need capital for administration and development support services estimated at US$15M for head office and administration management during development phase, working capital estimated at US$30M and US$5M for an environmental bond, during the commissioning and early production stage. Working capital is used to maintain operations costs until the first sales revenue is received.

Therefore, the total estimated capital cost is in the range of US$300M.

Debt finance can typically range from 30% to 70% of this capital cost, but will be dependent on the structure, length and value of the sales agreements. Banks are an important part, and a partner, in the structure of sale and marketing agreements with customers.

Sales Agreements

The Company preference is to have long term strategic partners for the offtake of production. Some smaller volume contracts with shorter contract terms (say, of up to 3 years) may also be accommodated. Some of these sales relationships may also create opportunities to be involved in partnerships for downstream processing. The Company anticipates that Asia, the greater Europe region, Russia, and the Americas will be a significant focus in sales agreements.

Exploration Results, Mineral Resource and Ore Reserve Estimation Governance Statement

Globe ensures that exploration results and Mineral Resource estimates are subject to appropriate levels of governance, internal controls and external independent review. The exploration results and Mineral Resource estimation of the Company’s projects are subject to appropriate procedural controls and systematic internal and external technical review by competent and qualified professionals on an as needed basis. These reviews have not identified any material issues undertaken as part of a formal risk assessment. The Company periodically reviews the governance framework in line with the business expectations.

Exploration results and Mineral Resource estimates referred to in this report were undertaken in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC) 2012 Edition. Competent persons named by the Company are members of the Australian Institute of Mining and Metallurgy and are qualified as competent persons as defined in the JORC Code.

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Qualifying Statements

Mineral Resource Estimates

The information in this report that relates to Mineral Resources is extracted from the report titled “Kanyika Niobium Project – Updated JORC Resource Estimate” released to the Australian Securities Exchange (ASX) on 11 July 2018 and available to view at www.globemm.com and for which Competent Persons’ consents were obtained. Each Competent Person’s consent remains in place for subsequent releases by the Company of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent.

The Company confirms that is not aware of any new information or data that materially affects the information included in the original ASX announcement released on 11 July 2018 and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the original ASX announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original ASX announcement.

Full details are contained in the ASX announcement released on 11 July 2018 titled “Kanyika Niobium Project – Updated JORC Resource Estimate” available to view at www.globemm.com

The information in this report that relates to Ore Reserves is extracted from the report titled “Kanyika Niobium Project – Project Feasibility and Economics” released to ASX on 19 August 2021 and available to view at www.globemm.com and for which Competent Persons’ consents were obtained. Each Competent Person’s consent remains in place for subsequent releases by the Company of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent.

The Company confirms that is not aware of any new information or data that materially affects the information included in the original ASX announcement released on 19 August 2021 and, in the case of estimates of Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the original ASX announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original ASX announcement.

Full details are contained in the ASX announcement released on 19 August 2021 titled “Kanyika Niobium Project – Project Feasibility and Economics” available to view at www.globemm.com

Forward Looking Statements

This report may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Globe Metals & Mining Limited’s business plans and other statements that are not historical facts. When used in this report, words such as could-plan-targetestimate-expect-intend-may-potential - should and similar expressions are forward-looking statements. Any forward-looking statements have been prepared on the basis of a number of assumptions which may prove incorrect and the current intentions, plans, expectations and beliefs about future events are subject to risks, uncertainties and other factors, many of which are outside Globe Metals & Mining Limited’s control. Important factors that could cause actual results to differ materially from the assumptions or expectations expressed or implied in this report include known and unknown risks. Because actual results could differ materially to the assumptions made and the Company’s current intentions, plans, expectations and beliefs about the future, you are urged to view all forward-looking statements with caution. This content should not be relied upon as a recommendation or forecast by Globe Metals & Mining Limited. Content within this report should not be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

GLOBE METALS & MINING – ANNUAL REPORT 2021

GLOBE METALS & MINING – ANNUAL REPORT 2021 20

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Review of Operations
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Directors’ Report For the Year Ended 30 June 2021

INFORMATION ON DIRECTORS

Alice Wong	Non-Executive Chairperson
Special Responsibilities	Member of Nomination and Remuneration Committee
Qualifications	B. Bus in Accounting and Finance (Hons)
	Ms Alice Wong is an accountant by training and commenced her career with
	Price Waterhouse. After more than a decade of service in the investment
	banking industry in Asia working for large multinational companies Morgan
	Stanley, ABN AMRO and BNP Paribas Peregrine, Ms Wong extended her
	entrepreneurial endeavour into luxurious products and health care
	companies. Ms Wong invested into Globe via Apollo Metals Investment Co.
	Ltd during 2014 and has since served as the Non-Executive Chairperson of its
	Board of Directors where she has played an integral role in advancement of
	the Kanyika Project including the recent granting of a mining licence.
	Ms Wong holds a Bachelor of Business Administration in Accounting and
	Finance (Hons) from the University of Hong Kong and is a member of the
	American Institute of Certified Public Accountants (AICPA).
Interest in Shares and Options	245,983,611(1)
Directorships of other	Nil
ASX Listed Companies
in the past 3 years

(1) Ms Wong is the sole shareholder and Director of Apollo Metals Investment Co. Ltd which holds 245,983,611 shares in the Company

Alistair Stephens	Deputy Chairperson, Managing Director and Chief Executive	Officer
Qualifications	Masters of Business Administration
	Bachelor of Science (Honours)
	Graduate of the Australian Institute of Company Directors (GAICD)
	Fellow of the Australasian Institute of Mining and Metallurgy
Experience	Mr Stephens is a qualified geologist with more than 30 years’	experience in
	the resources industry, in a broad range of technical and corporate
	management, including corporate governance, strategic development and
	delivery, technical program development, marketing,	shareholder
	communications and capital funding.
	Mr Stephens held the position of Managing Director and Chief Executive
	Officer of Arafura Resources Limited (ASX: ARU) between 2004	and 2009.
	Mr. Stephens commenced his career in gold and copper exploration and
	development with Newmont but orientated most of his career in mining,
	planning and processing operations in gold with Normandy	Poseidon and
	KCGM Pty Ltd and nickel with WMC Resources. He also has marketing and
	commercial experience with Orica Ltd in explosives.
Interest in Shares and Options	1,325,000 Fully Paid Ordinary Shares
Directorships of other	Nil
ASX Listed Companies
in the past 3 years

GLOBE METALS & MINING – ANNUAL REPORT 2021

Directors’ Report For the Year Ended 30 June 2021

William Hayden

Non-Executive Director

Special Responsibilities Member of the Nomination and Remuneration Committee Member of the Audit and Risk Committee Qualifications B Sc (Hons) Experience Mr Hayden is a geologist with approximately 40 years’ experience in the mineral exploration industry, much of which has been in Africa, South America and the Asia-Pacific region. Mr Hayden joined Globe as a director in 2009. He currently serves as a director of Ivanhoe Mines Ltd (TSX: IVN), Trilogy Metals Inc (TSX: TMQ), Palisades Goldcorp Ltd, and Asia Pacific Mining Limited.

Interest in Shares and Options Directorships of other ASX Listed Companies In the past 3 years

1,276,923 Fully Paid Ordinary Shares Noble Metals Limited (ASX listed) (resigned January 2019)

Non-Executive Director

Bo Tan

Special Responsibilities Chairperson of Audit and Risk Committee Qualification BEcon - Renmin China, MBA - Thunderbird USA, M.A University of Connecticut Experience Mr Tan has over 15 years’ experience as a senior manager and director in financial planning, reporting, investment, capital structure and industrial research; and has worked for companies such as Bohai Industrial Investment Fund, Lehman Brothers Asia and Macquarie Securities Asia, and across international markets in China, Hong Kong, Canada and USA. Nil

Interest in Shares and Options Directorships of other ASX Listed Companies in the past 3 years

Nil

Ricky Lau

Non-Executive Director

Special Responsibilities Chairperson of Nomination and Remuneration Committee (since 14 December 2020)

Qualifications MBA Kellogg-HKUST, MB UBC Sauder (Hons) Experience Mr Lau has over 20 years’ experience in private equity investment in Asia and is presently the Managing Partner of real estate private equity firm Crane Capital Limited. Nil

Interest in Shares and Options Directorships of other ASX Listed Companies in the past 3 years

Nil

Alex Ko

Special Responsibilities

Qualifications Experience

Interest in Shares and Options

Directorships of other ASX Listed Companies in the past 3 years

Non-Executive Director

Chairperson of the Nomination and Remuneration Committee Member of the Audit and Risk Committee ( resigned 14 December 2020 ) Bachelor Business Administration

Mr Ko has over 30 years’ experience in finance and investment banking. He has been a pioneer in the listing of Chinese equity offers through the Hong Kong exchange including many high-profile government and private Chinese companies. He has held many independent non-executive director roles with Hong Kong listed companies in the transportation, electronics and environmental protection industries. Nil

Nil

GLOBE METALS & MINING – ANNUAL REPORT 2021

Remuneration Report For the Year Ended 30 June 2021

Remuneration Report - Audited

This remuneration report for the year ended 30 June 2021 outlines the remuneration arrangements of the Group in accordance with the requirements of Corporations Act 2001 (the Act) and its regulations. This information has been audited as required by Section 308(3C) of the Act.

The remuneration report details the remuneration arrangements for Key Management Personnel (KMP) who are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly, including any director (whether executive or otherwise) of the parent.

For the purposes of this report, the term “executive” includes the Managing Director (MD), executive directors (where applicable) and senior executives of the Group.

A. Remuneration Governance

The Board of Directors has established a Committee for the purpose of reviewing and making recommendations with respect to the remuneration practices of the Company.

The Committee comprises Mr Lau (Chairperson of the Nomination and Remuneration Committee since 14 December 2021), Mr Bill Hayden and Ms Alice Wong; all of whom are non-executive directors.

The Board of Directors has prepared and approved a charter as the basis on which the Committee will be constituted and operated. The role of the Committee is to provide a mechanism for the determination, implementation and assessment of the remuneration practices of the Company, including remuneration packages and incentive schemes for executive Directors and senior management, and fees payable to Non-Executive Directors.

The Committee is primarily responsible for making recommendations to the Board on:

➢ the overarching executive remuneration framework;
➢ the operation of incentive plans (if any) which apply to the executive team, including key performance indicators and performance hurdles;
➢ the remuneration levels of executive directors and other KMP; and
➢ the fees payable to non-executive directors.

The Committee’s objective is to ensure that remuneration policies and structures are fair and competitive, and aligned with the long-term interests of the Group.

The Corporate Governance Statement provides further information on the role of the Remuneration Committee.

B. Remuneration Policy

The remuneration policy of Globe Metals & Mining Limited and its Controlled Entities has been designed to align Director and executive objectives with shareholder and business objectives by providing a fixed remuneration component which is assessed on an annual basis in line with market rates and offering specific incentives, from time to time, that are based on share price and key performance areas affecting the Group’s financial results.

The Board of Directors of Globe believes the remuneration policy is appropriate and effective in its ability to attract, retain and motivate suitably qualified and experienced Directors and executives to run and manage the Group, as well as create goal congruence between the Directors, executives and the Company’s shareholders.

C. Remuneration Arrangements

All executives receive a base salary (which is based on factors such as length of service and experience) and superannuation (in accordance with relevant legislation). Executive remuneration may also incorporate a component of performance-based remuneration.

The Board reviews executive packages annually by reference to the Group’s performance, executive performance and comparable information from industry sectors and other listed companies in similar industries. Non-executive directors are remunerated at market rates for comparable companies for time, commitment and responsibilities. The Board determines payments to non-executive directors and reviews their remuneration

GLOBE METALS & MINING – ANNUAL REPORT 2021

Remuneration Report For the Year Ended 30 June 2021

annually, based on market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting (currently $600,000).

The Board of Directors may exercise discretion in relation to approving incentives, bonuses and options.

All remuneration paid to Directors and executives is valued at the cost to the Company and expensed. Options are independently valued by corporate advisers using the Black-Scholes option pricing model and Monte Carlo option pricing model. Shares are valued at market value.

D. Performance Based Remuneration

The Company believes that linking the remuneration of Directors and executives with performance will be effective in increasing shareholder wealth.

From time to time, the Board of Directors may establish performance targets and a bonus system for the purposes of providing directors and executives with short-term and long-term performance incentives. Such incentives are offered to increase goal congruence between shareholders and directors and executives.

There are currently no incentive programs in place for financial years ended 30 June 2021 and beyond.

E. Performance Summary

The tables below set out summary information about Globe’s earnings and movements in shareholder wealth for the five years to 30 June 2021:

	30 June 2021	30 June 2020	30 June 2019	30 June 2018	30 June 2017
	$’000	$’000	$’000	$’000	$’000
Interest income	23	104	206	239	203
Comprehensive loss after tax	(1,378)	(1,449)	(1,441)	(1,354)	(1,651)
	30 June 2021	30 June 2020	30 June 2019	30 June 2018	30 June 2017
Share price at start of year	$0.010	$0.015	$0.014	$0.016	$0.022
Share price at end of year	$0.016	$0.010	$0.015	$0.014	$0.016
Dividend	-	-	-	-	-
Basic loss per share	($0.003)	($0.003)	($0.003)	($0.003)	($0.004)
Diluted loss per share	($0.003)	($0.003)	($0.003)	($0.003)	($0.004)

F. No Hedging Contracts

The Company does not permit executives to enter into contracts to hedge their exposure to options or performance rights to shares granted as part of their remuneration package.

G. Securities Trading Policy

The Board has in place a Securities Trading Policy to ensure that:

➢ any dealings in securities by the Directors, employees and contractors comply with legal and regulatory obligations (including the prohibition against insider trading); and
➢ the Company maintains market confidence in the integrity of dealings in its securities.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Remuneration Report For the Year Ended 30 June 2021

H. Details of Remuneration

Compensation of key management personnel for the year ended 30 June 2021

2021	SHORT-TERM	SHORT-TERM		POST	LONG-TERM	LONG-TERM	SHARE-		TOTAL	SHARE-
	BENEFITS			EMPLOY-	BENEFITS		BASED			BASED
				MENT			PAYMENT
										PAYMENT
	Salary &	Annual		Super-	Employee		Options			as a %
	Fees	Leave		annuation	Entitlements
										of TOTAL
	$	$		$	$		$		$
Directors
Alice Wong –Chairperson	80,000		-	-		-		-	80,000	0%
Alistair Stephens -Managing Director & CEO	385,000	20,731		21,694	48,564			-	475,989	0%
William Hayden -Non-Executive Director	52,968		-	5,032		-		-	58,000	0%
Ricky Lau– Non-Executive Director(1)	30,921		-	-		-		-	30,921	0%
Bo Tan -Non-Executive Director	58,000		-	-		-		-	58,000	0%
Alex Ko– Non-Executive Director(2)	28,500		-	-		-		-	28,500	0%
Total remuneration directors 2021	635,389	20,731		26,726	48,564			-	731,410	0%
Specified Executives
Michael Fry –Finance Manager	264,000	-	-	-	-	-	-	-	264,000	0%
Total remuneration specified executives 2021	264,000		-	-		-		-	264,000	0%
Total key management personnel 2021	899,389	20,731		26,726	48,564			-	995,410	-

(1) appointed 14 December 2020. Whilst Mr Lau is entitled to the receipt of director’s fees, he has indicated his likely intention that the fees be directed to a charity.

(2) resigned 14 December 2020.

Compensation of key management personnel for the year ended 30 June 2020

2020	SHORT-TERM	SHORT-TERM		POST	LONG-TERM	LONG-TERM	SHARE-		TOTAL	SHARE-
	BENEFITS			EMPLOY-	BENEFITS		BASED			BASED
				MENT			PAYMENT			PAYMENT
	Salary &	Annual		Super-	Employee		Options			as a %
	Fees	Leave		annuation	Entitlements
										of TOTAL
	$	$		$	$		$		$
Directors
Alice Wong –Chairperson	80,000		-	-		-		-	80,000	0%
Alistair Stephens -Managing Director & CEO	385,000	59,232		21,003	36,099			-	501,334	0%
William Hayden -Non-Executive Director	52,968		-	5,032		-		-	58,000	0%
Bo Tan -Non-Executive Director	58,000		-	-		-		-	58,000	0%
Alex Ko -Non-Executive Director	57,000		-	-		-		-	57,000	0%
Total remuneration directors 2020	632,968	59,232		26,035	36,099			-	754,334	0%
Specified Executives
Michael Fry –Finance Manager	264,000	-	-	-	-	-	-	-	264,000	0%
Total remuneration specified executives 2020	264,000		-	-		-		-	264,000	0%
Total key management personnel 2020	896,968	59,232		26,035	36,099			-	1,018,334	-

No remuneration consultants have been engaged during the year ended 30 June 2021.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Remuneration Report For the Year Ended 30 June 2021

Compensation options granted to key management personnel during the year ended 30 June 2021

There were no options granted to key management personnel during the year ended 30 June 2021.

Compensation options granted to key management personnel during the year ended 30 June 2020

There were no options granted to key management personnel during the year ended 30 June 2020.

Option Holdings of Directors and Key Management Personnel

The numbers of options over ordinary shares in the Company granted under the executive short-term incentive scheme that were held during the financial year by each Director and the KMP of the Group, including their personally related parties, are set out below:

2021	Balance at	Granted as	Exercised		Balance at	Exercisable	Not
	beginning	Remuneration			30 June		Exercisable
					2021
Alice Wong	-	-	-	-	-	-	-
Alistair Stephens	-	-	-	-	-	-	-
William Hayden	-	-	-	-	-	-	-
Bo Tan	-	-	-	-	-	-	-
Ricky Lau(1)	-	-	-	-	-	-	-
Alex Ko(2)	-	-	-	-	-	-	-
Michael Fry	-	-	-	-	-	-	-
	-	-	-	-	-	-	-

(1) appointed 14 December 2020.

(2) resigned 14 December 2020.

2020	Balance at	Balance at	Granted as	Granted as	Exercised	Exercised	(Lapsed)	(Lapsed)	Balance at	Balance at	Balance at	Exercisable	Not
		beginning	Remuneration							30	June	Exercisable
										2020
Alice Wong		-			-	-			-		-	-	-
Alistair Stephens		1,000,000			-	-	(1,000,000)				-	-	-
William Hayden		-			-	-			-		-	-	-
Bo Tan		-			-	-			-		-	-	-
Alex Ko		-			-	-			-		-	-	-
Michael Fry		-			-	-			-		-	-	-
	1,000,000				-	-	(1,000,000)				-	-	-
2020	Financial	Number of	Award	Fair value		Vesting		Exercise			Expiry	Number	Balance
	year	options	date	per option			date	price			date	lapsed	at
	awarded				at award							during the	year
					date							year	end
A. Stephens	2014	1,000,000	1 July 2013		-	1 July 2017		$0.25		30 June 2020 1,000,000			-

GLOBE METALS & MINING – ANNUAL REPORT 2021

Remuneration Report For the Year Ended 30 June 2021

Shareholdings of Director and Key Management Personnel in Listed Fully Paid Ordinary Shares

The number of shares in the Company that were held during the financial year by each Director and the key management personnel of the Group, including their personally related parties, are set out below. There were no shares granted during the reporting year as compensation.

2021	Balance at	Granted as	On Exercise of	Bought &	Balance at
	beginning	Remuneration	Options	(Sold)	30 June 2021
Alice Wong	245,983,611	-	-	-	245,983,611
Alistair Stephens	-	-	-	1,325,000	1,325,000
William Hayden	1,276,923	-	-	-	1,276,923
Bo Tan	-	-	-	-	-
Ricky Lau	-	-	-	-	-
Alex Ko	-	-	-	-	-
Michael Fry	-	-	-	-	-
	247,260,534	-	-	-	248,585,534
2020	Balance at	Granted as	On Exercise of	Bought &	Balance at
	beginning	Remuneration	Options	(Sold)	30 June 2020
Alice Wong	245,983,611	-	-	-	245,983,611
Alistair Stephens	-	-	-	-	-
William Hayden	76,923	-	-	1,200,000	1,276,923
Bo Tan	-	-	-	-	-
Alex Ko	-	-	-	-	-
Michael Fry	-	-	-	-	-
	246,060,534	-	-	-	247,260,534

I. Voting and comments made at the Company’s 2021 Annual General Meeting (AGM)

At the Company’s 2021 AGM, a resolution to adopt the prior year remuneration report was put to a shareholder vote pursuant to the requirements of Section 250R92) of the Corporations Act 2001. Key Management Personnel, and their Closely Related Party(s), were excluded from voting on the resolution. 97.79% of votes were cast against adoption of the resolution reflecting a first strike. Despite seeking feedback, no comments were received from shareholders with respect to the Company's overall remuneration, and its appropriateness to the Company’s circumstances.

If 25% or more votes are cast against adoption of the remuneration report at the 2021 AGM, that will represent a second successive strike, and the Company will be required to put to Shareholders at the 2021 AGM a resolution proposing the calling of an extraordinary general meeting to consider the appointment of directors of the Company (Spill Resolution).

If more than 50% of Shareholders vote in favour of the Spill Resolution, the Company must convene an extraordinary general meeting (Spill Meeting) within 90 days of the Company’s 2021 AGM. All Directors, other than the Company’s managing director will cease to hold office immediately before the end of the Spill Meeting but may stand for re-election at the Spill Meeting. Following the Spill Meeting, those persons whose election or re-election as Directors is approved will be the directors of the Company.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Remuneration Report For the Year Ended 30 June 2021

J. Contractual Arrangements

Non-Executive Directors

Non-executive directors’ fees at the date of this report are as follows:

Alice Wong Chairperson of the Board $80,000 per annum William Hayden Non-Executive Director $50,000 per annum Member of the Nomination and Remuneration Committee $4,000 per annum Member of the Audit and Risk Committee $4,000 per annum Bo Tan Non-Executive Director $50,000 per annum Chairperson of the Audit and Risk Committee $8,000 per annum Ricky Lau Appointed 14 December 2020 Non-Executive Director $50,000 per annum Chairperson of the Nomination and Remuneration Committee $7,000 per annum Alex Ko Resigned 14 December 2020 Non-Executive Director $50,000 per annum

Chairperson of the Nomination and Remuneration Committee $7,000 per annum

Executive Management

Remuneration and other terms of employment for executive management are formalised in services agreements as set out below:

as set out below:
Name	Alistair Stephens
Title	DeputyChairperson,ManagingDirector and CEO
Start date	1 May2013
Current Agreement Commenced	1 August 2013
Term of Agreement	Agreement continues until terminated in accordance with employment contract
Details:	Base salary of $385,000 p.a. exclusive of superannuation Termination requires 5 weeks’ notice or the payment of 5 weeks ’salary in lieu of such notice. Eligible toparticipate inperformance-based remuneration.

Name	Michael Fry
Title	Finance Manager and CompanySecretary
Start date	2 February2015
Current Agreement Commenced	1 November 2016
Term of Agreement	Agreement continues until terminated in accordance with employment contract
Details:	Fees of $264,000 p.a. Termination requires three months’ notice

This is the end of the audited remuneration report.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Directors’ Report For the Year Ended 30 June 2021

Meeting of Directors

	Directors	Meetings	Audit and Risk	Committee	Nomination and	Nomination and
					Remuneration	Committee
			Meetings		Meetings
Directors	Number	Number	Number	Number	Number	Number
	Eligible to Attend	Attended	Eligible to Attend	Attended	Eligible to Attend	Attended
Alice Wong	-	-	-	-	-	-
Alistair Stephens	-	-	-	-	-	-
William Hayden	-	-	-	-	-	-
Bo Tan	-	-	-	-	-	-
Ricky Lau	-	-	-	-	-	-
Alex Ko	-	-	-	-	-	-

The Company’s executive has a weekly conference with the Chairperson. With members of the Board being updated by verbal and written communications as deemed necessary. Due to distance and differing time zones, and more recently the COVID-19 pandemic, Board matters are resolved by way of circular resolution.

Significant Changes in the State of Affairs

No significant changes in the state of affairs of the Group have occurred since the start of the financial year to the date of this report.

Dividends

No amounts have been paid or declared by way of dividend during or since the end of the financial year.

Likely Developments and Expected Results of Operations

The Group proposes to continue its exploration program and investment activities across its mineral industry interests.

Whilst it is expected that delays will continue to occur, it is not expected that the Group will experience direct material financial impacts on its results should the COVID-19 pandemic continue without resolution in the short to medium term.

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 on behalf of the Company with leave of the Court under section 237 of the Corporations Act 2001 .

GLOBE METALS & MINING – ANNUAL REPORT 2021

Directors’ Report For the Year Ended 30 June 2021

After Balance Events

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years, except for the following:

- Grant of Large Scale Mining Licence LM0216/21

Globe’s wholly owned subsidiary, Globe Metals & Mining (Africa) Limited ( GMMA ) was granted Large Scale Mining Licence LM0216/21 on 13 August 2021. LM0216/21 is valid for twenty-five (25) years and entitles GMMA the exclusive right to prospect for and mine minerals(s) in the licence area on the terms and conditions attaching to the licence. The most material of these terms and conditions are listed below.

The licencee shall:

Pay annual charges prescribed under the Mines and Minerals (Mineral Rights) Regulations 1981 and mineral royalties in accordance with the Mines and Minerals Act.
Have a right to mine and process pyrochlore
Endeavour to give employment preferentially to citizens of Malawi
Endeavour to procure goods and services produced and manufactured in Malawi provided that they can be obtained at competitive terms and in comparable quality.
Submit reports to the Registrar of Mineral Tenements as required
Comply with all conditions imposed under Part VIII of the Mines and Minerals Act (No. 8 of 2019).

Feasibility Study Results and Project Economics

Also on 19 August 2021, Globe publicly released the results of its Feasibility Study and Project economics, with Globe advising that the Project had an expected capital cost of US$250 million and is expected to generate US$5.6 billion over its 23-year mine life with a net present value of US$1 billion (pre-tax) at a discount rate of 8% per annum.

Auditor

Non-Audit Services

No non-audit services were provided by Ernst & Young during the year or the prior year.

Details of the amounts paid or payable to the Ernst & Young for the provision of audit services are set out in note 20 to the financial Statements.

Indemnifying Officers or Auditors

The Group has agreed to indemnify all the directors and executive officers for any costs or expenses that may be incurred in defending civil and criminal proceedings that may be brought against them in their capacity as directors and officers for which they may be held personally liable.

The Group agreed to pay the annual insurance premium in respect of directors’ and officers’ liability and legal expenses, for directors, officers and employees of the Company. However, in accordance with normal commercial practice, the disclosure of the total amount of premiums and the nature of the liabilities covered by the insurance contract is prohibited by a confidentiality clause in the contract.

To the extent permitted by law, the Group has agreed to indemnify its auditors, Ernst & Young as part of the terms of its engagement letter against any claims by third parties arising from the audit (for an unspecified amount). No payments were made during the year ended 30 June 2021 or subsequently.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Directors’ Report For the Year Ended 30 June 2021

Rounding of Amounts

The Company is of a kind referred to in ASIC Corporations (Rounding in financial/Directors’ report) Instrument 2016/191. Therefore, amounts in the directors’ report have been rounded off to the nearest thousand dollars, or in certain cases, to the nearest dollar.

Auditors Independence Declaration

The auditor’s independence declaration is included on page 32.

Signed in accordance with a resolution of the Board of Directors.

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ALISTAIR STEPHENS

MANAGING DIRECTOR

Dated this 28th day of September 2021

GLOBE METALS & MINING – ANNUAL REPORT 2021

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Ernst & Young Tel: +61 8 9429 2222 11 Mounts Bay Road Fax: +61 8 9429 2436 Perth WA 6000 Australia ey.com/au GPO Box M939 Perth WA 6843

Auditor’s independence declaration to the directors of Globe Metals & Mining Limited

As lead auditor for the audit of the financial report of Globe Metals & Mining Limited for the financial year ended 30 June 2021, I declare to the best of my knowledge and belief, there have been:

a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit ; and
b. No contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Globe Metals & Mining Limited and the entities it controlled during the financial year.

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Ernst & Young

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Gavin Buckingham Partner

28 September 2021

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

GB:AJ:GMM:007

GLOBE METALS & MINING – ANNUAL REPORT 2021

Consolidated Statement of Profit and Loss & Other Comprehensive Income For the Year Ended 30 June 2021

Notes Interest income 5 Other Income Foreign exchange loss Employee benefits expenses Compliance and regulatory expenses Occupancy expenses Directors fees Depreciation expense 11 Business Development Travel expenses Administrative expenses Reversal of Provision for Foreign Tax Impairment loss on receivables Other expenses Loss before income tax Income tax expense Loss for the year Other comprehensive loss after tax Items that will not be reclassified to profit or loss Changes in the fair value of investments at fair value through other comprehensive income Other comprehensive (loss)/income for the year, net of tax Total comprehensive loss for the year Loss per share attributable to ordinary equity holders of the company Basic and diluted loss per share 26	30 June 2021 $’000 30 June 2020 $’000
	23 104 199 - (30) (50) (642) (633) (160) (100) (35) (50) (236) (269) (17) (13) (1) (12) (55) (56) (302) (341) - 110 - (72) (122) (67)
	(1,378) (1,449) - -
	(1,378) (1,449)
	(16) 36
	(16) 36
	(1,394) (1,413)
	Cents Cents (0.30) (0.31)

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with accompanying notes.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Consolidated Statement of Financial Position For the Year Ended 30 June 2021

Note CURRENT ASSETS Cash and cash equivalents 8 Other receivables 9 Other assets 10 TOTAL CURRENT ASSETS NON-CURRENT ASSETS Exploration and evaluation expenditure 12 Investments at fair value through other comprehensive income Plant and equipment 11 Right of use asset TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables 13 Provisions 14 Lease liability TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Lease liability TOTAL NON-CURRENT LIABLITIES TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity Financial assets reserve 15 Accumulated losses 16 TOTAL EQUITY	30 June 2021 $’000 30 June 2020 $’000 2,816 5,182 57 81 104 119
	2,977 5,382
	29,357 28,349 52 68 248 183 46 -
	29,703 28,600
	32,680 33,982
	231 224 127 88 24 -
	382 312
	22 -
	22 -
	404 312
	32,276 33,670
	80,753 18 80,753 34 (48,495) (47,117)
	32,276 33,670

The above consolidated statement of financial position should be read in conjunction with accompanying notes.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Consolidated Statement of Changes in Equity For the Year Ended 30 June 2021

Consolidated Balance at 30 June 2019 Loss for year Other comprehensive income for the year Total comprehensive loss for the year Balance at 30 June 2020 Balance at 30 June 2020 Loss for year Other comprehensive loss for the year Total comprehensive loss for the year Balance at 30 June 2021	Contributed equity Accumulated losses Financial Assets Reserve Total $’000 $’000 $’000 $’000
	80,753 (45,668) (2) 35,083 - (1,449) - (1,449) - - 36 36
	- (1,449) 36 (1,413)
	80,753 (47,117) 34 33,670
	80,753 (47,117) 34 33,670 - (1,378) - (1,378) - - (16) (16)
	- (1,378) (16) (1,394)
	80,753 (48,495) 18 32,276

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Consolidated Statement of Cash Flows For the Year Ended 30 June 2021

Note Cash Flows from Operating Activities Payments to suppliers and employees (inclusive of value added taxes) Payments for business development activities Interest received Proceeds from other income Net cash used in operating activities 25(a) Cash Flows from Investing Activities Purchase of plant & equipment Payments for exploration and evaluation Net cash used in investing activities Net decrease in cash held Cash and cash equivalents at beginning of financial year Effects of exchange rate changes on cash Cash and cash equivalents at end of financial year 8	30 June 2021 $’000 30 June 2020 $’000 (1,452) (1,503) (1) (12) 23 104 199 50
	(1,231) (1,361)
	(82) (18) (976) (776)
	(1,058) (794)
	(2,289) (2,155) 5,182 7,387 (77) (50)
	2,816 5,182

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial report of Globe Metals & Mining Limited for the year ended 30 June 2021 was authorised for issue in accordance with a resolution of directors on 29 September 2021.

The following is a summary of the material accounting policies adopted by the Group in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated. This financial report includes the consolidated financial statements and notes of Globe Metals & Mining Limited (‘Globe’ or ‘the Company’) and its controlled entities (‘Consolidated Entity’ or ‘Group’). Globe is a for-profit entity.

a. Basis of Preparation

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001 , as appropriate for profit-oriented entities.

(i) Compliance with IFRS

The financial report of Globe Metals & Mining Limited and controlled entities also complies with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board (IASB).

(ii) New and amended standards adopted by the group

None of the new standards and amendments to standards that are mandatory for the first time for the financial year beginning 1 July 2020 affected any of the amounts recognised in the current year or any prior year. See Note 1(t)

(iii) Historical Cost Convention

The financial report has been prepared under the historical cost convention, with the exception of investments at fair value through other comprehensive income which are measured at fair value.

(iv) Critical accounting estimates

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3.

b. Principles of Consolidation

The consolidated financial statements comprise the financial statements of the Group and its subsidiaries as at 30 June 2021. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

Specifically, the Group controls an investee if, and only if, the Group has:

➢ Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)
➢ Exposure, or rights, to variable returns from its involvement with the investee
➢ The ability to use its power over the investee to affect its returns

Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

➢ The contractual arrangement(s) with the other vote holders of the investee
➢ Rights arising from other contractual arrangements
➢ The Group’s voting rights and potential voting rights

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

c. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the board of directors.

d. Foreign Currency Translation

Functional and presentation currency

The functional currency of each of the Group’s entities is measured using the currency of the primary economic environment in which that entity operates, currently being the Australian Dollar for each of the entities. The consolidated financial statements are presented in Australian dollars which is the Company’s functional and presentation currency.

Transactions and balances

Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when the fair values were determined. Exchange differences arising on the translation of monetary items are recognised in profit and loss for the year, except where deferred in equity as a qualifying cash flow or net investment hedge.

e. Revenue Recognition

Revenue is recognised in accordance with AASB 15, which establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

Interest income is recognised as the interest accrues at an effective interest rate.

f. Reserves

The reserve represents the gains and losses of investments at fair value through other comprehensive income.

g. Income Tax

Current Tax

Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable profit or tax loss for the year. It is calculated using tax rates and tax laws that have been enacted or substantively enacted by reporting date. Current tax for current and prior years is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).

Deferred Tax

Deferred tax is accounted for using the liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax base of those items.

In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that sufficient taxable amounts will be available against which deductible temporary differences or unused tax losses and tax offsets can be utilised. However, deferred tax assets and liabilities are not recognised if the temporary differences giving rise to them arise from the initial recognition of assets and liabilities (other than as a result of a business combination) which affects neither taxable income nor accounting profit. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year(s) when the asset and liability giving rise to them are realised or settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by reporting date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Current and Deferred Taxation

Current and deferred tax is recognised as an expense or income in the Statement of profit or loss and other comprehensive income, except when it relates to items credited or debited directly to equity, in which case the deferred tax is also recognised directly in equity, or where it arises from the initial accounting for a business combination, in which case it is taken into account in the determination of goodwill or excess. The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the Company will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

h. Cash and Cash Equivalents

Cash and short-term deposits in the statement of financial position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. For the purposes of the Statement Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

i. Exploration and Evaluation Assets

Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as exploration and evaluation assets on an area of interest basis. Exploration and evaluation assets are only recognised if the rights of interest are current and either:

the expenditures are expected to be recouped through successful development and exploitation of the area of interest; or
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 area of interest are continuing.

Costs incurred before the Group has obtained the legal rights to explore an area are recognised in the statement of profit or loss and other comprehensive income. 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.

Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then reclassified from exploration and evaluation expenditure to mining property and development assets within property, plant and equipment and depreciated over the life of the mine.

Impairment

Exploration and evaluation assets are tested for impairment when any of the following facts and circumstances exists:

the term of the exploration licence in the specific area of interest has expired during the reporting year or will expire in the near future, and is not expected to be renewed;
substantive expenditure on further exploration for and evaluation of mineral resources in the specific area are not budgeted nor planned;
exploration for and evaluation of mineral resources in the specific area of interest have not led to the discovery of commercially viable quantities of mineral resources and the decision was made to discontinue such activities in the specific area of interest; or
- sufficient data exists to indicate that, although a development in the specific area of interest is likely to proceed, the carrying amount of the exploration and evaluation assets is unlikely to be recovered in full from successful development or by sale.

Where a potential impairment is indicated, an assessment is performed for each cash generating unit (“CGU”) which is no larger than the area of interest. An impairment loss is recognised if the carrying amount of the CGU exceeds its estimated recoverable amount.

j. Financial instruments – initial recognition and subsequent measurement

Financial Assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. In order for a financial asset to be classified and measured as amortised cost, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price determined under AASB 15.

The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cashflows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

Financial assets at amortised cost (debt instruments)
Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)
Financial assets at fair value through profit or loss

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

Financial assets at amortised cost (debt instruments)

This is the category of financial asset that is applicable to the Group. The Group measures financial assets at amortised cost if both of the following conditions are met:

The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows and;
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

The Group’s financial assets at amortised cost includes cash, short-term deposits and other receivables.

Financial assets designed at fair value through OCI (equity instruments).

This is the category of financial asset that is applicable to the Group. Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under AASB 132 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrumentby-instrument basis.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit or loss when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment. The Group’s financial assets designed at fair value through OCI includes its equity investments under this category.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised

(i.e., removed from the Group’s consolidated statement of financial position) when:

the rights to receive cash flows from the asset have expired; or
the Group has transferred has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognise the transferred asset to the extent of its continuing involvement. In that case, the Group also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.

Impairment of financial assets

The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

Financial Liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, payables as appropriate. All financial liabilities are recognised initially at fair value and, in the case of payables, net of directly attributable transaction costs. The Group’s financial liabilities only include trade and other payables.

Subsequent measurement

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss. This category applies to trade and other payables.

k. Plant and Equipment

Plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses.

The depreciable amount of all Motor vehicle and Leasehold assets are depreciated on a straight-line basis over their useful lives. Plant and equipment, Furniture and fittings and Software assets are depreciated using the diminishing value method. The depreciation rates used for each class of depreciable assets vary from 3% to 40% with the average rate being 30%.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the statement of profit or loss and other comprehensive income.

The carrying amounts of plant and equipment are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs of disposal.

l. Leases

(i) Right-of-use assets

The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term (where the entity does not have a purchase option at the end of the lease term). Right-of-use assets are subject to impairment.

(ii) Lease Liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognised as expense in the year on which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable.

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

(iii) Short-term leases and Low Value Assets

The Group applies the short-term lease recognition exemption to its short-term leases of their Office Spaces (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption (i.e. below $5,000). Lease payments on short-term leases and leases of low-value assets are expensed on a straight-line basis over the lease term.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

m. Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) where, as a result of a past event, it is probable that an outlay of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pretax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

n. Employee Benefits

Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months after the end of the year in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting year and are measured at the amounts expected to be paid when the liabilities are settled. The liability for annual leave is recognised in the provision for employee benefits. All other short-term employee benefit obligations are presented as payables.

Other long-term employee benefit obligations

The liability for long service leave and annual leave which is not expected to be settled within 12 months after the end of the year in which the employees render the related service 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 end of the reporting year using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and years of service. Expected future payments are discounted using market yields at the end of the reporting year on high quality corporate bonds with terms and currencies that match, as closely as possible, the estimated future cash outflows. The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the actual settlement is expected to occur.

Equity Settled Compensation

The Group provides benefits to employees (including directors) of the Group in the form of share-based payment transactions, whereby employees render services in exchange for shares or rights over shares (“equity-settled transaction”).

The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at which they are granted. The fair value is determined by a valuation by using a Black-Scholes option pricing model and Monte Carlo option pricing model.

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the year in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (“vesting date”).

The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting year has expired and (ii) the number of awards that, in the opinion of the directors of the Company, will ultimately vest. This opinion is formed based on the best available information at reporting date. No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date.

Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of modification.

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as described in the previous paragraph.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

o. Contributed Equity

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Where any group company purchases the company’s equity instruments, for example as the result of a share buy-back or a sharebased payment plan, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the owners as treasury shares until the shares are cancelled or reissued.

Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the owners.

p. Earnings Per Share

Basic earnings per share

Basic earnings per share is calculated by dividing:

the profit attributable to owners of the company, excluding any costs of servicing equity other than ordinary shares
by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year and excluding treasury shares

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and
weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.

q. Goods and Services Tax and other Value Added Taxes

Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST) and other Value Added Taxes (VAT), except where the amount of GST or VAT incurred is not recoverable from the applicable taxation authority. In these circumstances, the GST and VAT are recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST and VAT.

The net amount of GST or VAT recoverable from, or payable to, the taxation authority is included as a current asset or liability in the statement of financial position.

Cash flows are included in the Statement of Cash Flow on a gross basis. The GST and VAT components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the taxation authorities are classified as operating cash flows.

r. Rounding of amounts

s. Parent entity financial information

The financial information for the parent entity, Globe Metals and Mining Limited, disclosed in note 28 has been prepared on the same basis as the consolidated financial statements, except as set out below.

(i) Investments in subsidiaries, associates and joint venture entities Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the financial statements of Globe Metals and Mining Limited.

t. Changes in accounting policies and disclosure

New and amended standards and interpretations

Amendments and interpretations apply for the first time as of 1 July 2020 do not have an impact on the consolidated financial statements of the Group. The Group has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective.

The accounting policies adopted are consistent with those applied by the Group in the preparation of the annual consolidated financial statements for the year ended 30 June 2021.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements

For the Year Ended 30 June 2021

Standards issued but not yet effective

Amendments to AASB101: Classification of Liabilities as Current or Non-current

In January 2020, the AASB issued amendments to paragraphs 69 to 76 of AASB 101 to specify the requirements for classifying liabilities as current or non-current. The amendments clarify:

What is meant by a right to defer settlement
That a right to defer must exist at the end of the reporting period
That classification is unaffected by the likelihood that an entity will exercise its deferral right

• That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification

The amendments are effective for annual reporting periods beginning on or after 1 January 2023 and must be applied retrospectively. The Group is currently assessing the impact the amendments will have on current practice.

Reference to the Conceptual Framework – Amendment to AASB 3 Business Combination

In March 2020, the AASB issued Amendments to AASB 3 Business Combinations - Reference to the Conceptual Framework. The amendments are intended to replace a reference to the Framework for the Preparation and Presentation of Financial Statements, issued in 1989, with a reference to the Conceptual Framework for Financial Reporting issued in March 2018 without significantly changing its requirements.

The Board also added an exception to the recognition principle of AASB 3 to avoid the issue of potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of AASB 137 or AASB Interpretation 21 Levies, if incurred separately. At the same time, the Board decided to clarify existing guidance in AASB 3 for contingent assets that would not be affected by replacing the reference to the Framework for the Preparation and Presentation of Financial Statements.

The amendments are effective for annual reporting periods beginning on or after 1 January 2022 and apply prospectively.

Property, Plant and Equipment: Proceeds before Intended Use – Amendments to AASB 116

In June 2020, the AASB issued amendments to AASB 116 Property, Plant and Equipment — Proceeds before Intended Use, which prohibits entities deducting from the cost of an item of property, plant and equipment, any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and the costs of producing those items, in profit or loss.

The amendment is effective for annual reporting periods beginning on or after 1 January 2022 and must be applied retrospectively to items of property, plant and equipment made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment.

The amendments are not expected to have a material impact on the Group.

Onerous Contracts – Costs of Fulfilling a Contract – Amendments to AASB 137

In June 2020, the AASB issued amendments to AASB 137 to specify which costs an entity needs to include when assessing whether a contract is onerous or loss-making.

The amendments apply a “directly related cost approach”. The costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation of costs directly related to contract activities. General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract.

The amendments are effective for annual reporting periods beginning on or after 1 January 2022. The Group will apply these amendments to contracts for which it has not yet fulfilled all its obligations at the beginning of the annual reporting period in which it first applies the amendments.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

t. Changes in accounting policies and disclosure

Standards issued but not yet effective

Interest Rate Benchmark Reform – Phase 2 – Amendments to AASB 9, AASB 139, AASB 7, AASB 4 and AASB 16

In September 2020, the AASB published Interest Rate Benchmark Reform – Phase 2, Amendments to AASB 9, AASB 139, AASB 7, AASB 4 and AASB 16. The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR).

The amendments include a practical expedient to require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest. Inherent in allowing the use of this practical expedient is the requirement that the transition from an IBOR benchmark rate to an RFR takes place on an economically equivalent basis with no value transfer having occurred.

Any other changes made at the same time, such as a change in the credit spread or maturity date, are assessed. If they are substantial, the instrument is derecognised. If they are not substantial, the updated effective interest rate (EIR) is used to recalculate the carrying amount of the financial instrument, with any modification gain or loss recognised in profit or loss.

The Group has limited exposure to benchmark interest rates and is finalising its assessment of the impact of these amendments.

u. Going concern

The financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and settlement of liabilities in the normal course of business.

As at 30 June 2021, the Group had cash and cash equivalents of $2.816 million and had net working capital of $2.595 million. The Group incurred a loss for the year ended 30 June 2021 of $1.378 million (30 June 2020: $1.449 million loss) and net cash outflows used in operating activities and investing activities totalling $2.289 million (30 June 2020: $2.155 million). The Group’s cashflow forecasts reflect that the Group will be required to raise additional working capital within the next 12 month period to enable it to continue to progress the financing and development of the Kanyika Project.

The ability of the Group to continue as a going concern is dependent on the Group securing additional debt and/or equity funding to meet its working capital requirements in the next 12 months. These conditions indicate the existence of a material uncertainty that may cast a significant doubt about the Group’s ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.

At the date of this report, the directors are satisfied there are reasonable grounds to believe that the Group will be able to continue its planned operations and the Group will be able to meet its obligations as and when they fall due, for the following reasons:

the Company has post year end been issued with a Large -Scale Mining Licence for the Kanyika Project which gives it guaranteed tenure. This is a significant milestone for Globe and increases the project’s value; and
the Directors are of the opinion that the use of the going concern basis of accounting is appropriate as they are confident in the ability of the Group to be successful in securing additional funds through debt or equity issues as and when the need to raise working capital arises.

Should the Group not be able to continue as a going concern, it may be required to realise its assets and discharge its liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements. The financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or

liabilities that might be necessary should the Group not continue as a going concern and meet its debts as and when they become due and payable.

2. FINANCIAL RISK MANAGEMENT

The Group’s principal financial instruments comprise of cash. The Group also has other financial instruments such as other receivables and creditors, which arise directly from its operations, and investments at fair value through other comprehensive income.

Capital Risk Management

The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends, return capital to shareholders, issue/buy-back shares or sell assets to reduce debt.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

The Group would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative to the current parent entity’s share price at the time of investment. The Group is not currently pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies.

The main risks arising from the Group’s financial instruments and the Group’s policies for managing these risks are summarised below:

Interest Rate Risk

The Group does not have long-term cash deposits or debt, and therefore this risk is minimal. An analysis by maturities is provided in (i) below.

Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group entity has adopted the policy of only dealing with credit worthy counterparties and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults.

The credit risk on financial assets of the Group is reflected in those assets' carrying amount net of any provisions for impairment.

The Group currently holds majority of its cash and cash equivalents with National Australia Bank with a credit rating of Aa3. The Group believes the credit risk exposure is negligible given the strong credit rating of the counterparty.

Foreign currency risk

The Group is exposed to fluctuations in foreign currencies arising from the sale and purchase of goods and services in currencies other than the Group’s functional currency. The majority of expenses incurred are in AUD and therefore risk is not significant. Monetary assets and liabilities of the Group denominated in foreign currencies are not material to the Group.

Concentration risk

The parent entity is exposed to concentration risk due to 87% of its cash and cash equivalents being held within the one financial institution – National Australia Bank. The Group manages this risk through monitoring of the credit rating of the institution.

Liquidity risk

The Group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate short-term cash facilities are maintained. At the end of the year the group held deposits at call of $2.816 million (2020: $5.182 million) which are expected to readily generate cash inflows for managing liquidity risk.

(i) Interest rate and liquidity risk exposures

The Group’s exposure to interest rate risk and the effective weighted average interest rate for each class of financial assets and financial liabilities is set out in the following table:

2021 Financial Assets Cash at bank Trade & other receivables Investments at fair value through other comprehensive income Other assets Weighted Average Interest Rate Trade & other creditors Lease liability Net financial assets*	Fixed interest maturing in Floating interest rate 1 year or less Over 1 year less than 5 More than 5 years Non-Interest bearing Total $’000 $’000 $’000 $’000 $’000 $’000 816 2,000 - - - 2,816 - - - - 57 57 - - - - 52 52 - - - - 43 43
	816 2,000 - - 152 2,968
	0.01% 0.27% - - - - - - (231) (46) (231) (46)
	- - - - (277) (277)
	816 2,000 - - (125) 2,691

*To be settled within 30 - 60 days

**50% to be settled within 12 months, balance within 2 years

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

2020 Financial Assets Cash at bank Trade & other receivables investments at fair value through other comprehensive income Other assets Weighted Average Interest Rate Trade & other creditors Weighted Average Interest Rate Net financial assets / (liabilities) To be settled within 30 – 60 days	Fixed interest maturing in Floating interest rate 1 year or less Over 1 year less than 5 More than 5 years $’000 $’000 $’000 $’000 682 4,500 - - - - - - - - - - - - - -	Non-Interest bearing Total $’000 $’000 - 5,182 81 81 68 68 56 56
	682 4,500 - -	205 5,387
	0.01% 0.85% - - - - - -	(224) (224)
	- - - -	(224) (224)
	- - - -
	682 4,500 - -	(19) 5,163

Sensitivity analysis

The Group has performed a sensitivity analysis in relation to interest income and movements in interest rates on financial assets and liabilities. The analysis highlights the effect on the current year’s pre-tax loss which would have resulted from movement in interest rates with all other variables remaining constant.

	Consolidated
	2021	2020
	$’000	$’000
Change in loss
- increase in interest rate by 0.5%	(15)	(27)
- decrease in interest rate by 0.5%	15	27

Fair value hierarchy

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole, as follows:

➢ Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
➢ Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
➢ Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurements is unobservable

For all asset and liabilities that are recognised at fair value on recurring basis, the group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting year. The valuation of investments at fair value through other comprehensive income are based on the equity share price in the listed stock exchange (Level one fair value hierarchy).

3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of financial statements requires management to make judgements and estimates relating to the carrying amounts of certain assets and liabilities. Actual results may differ from the estimates made. Estimates and assumptions are reviewed on an ongoing basis. The key estimates and assumptions as have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next accounting year are:

(i) Exploration and evaluation expenditure

The Group’s accounting policy for exploration and evaluation expenditure results in expenditure being capitalised for an area of interest where it is considered likely to be recoverable by future exploitation or sale or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. This policy requires management to make certain assumptions as to future events and circumstances, in particular whether an economically viable extraction operation can be established. Any such estimates and assumptions may change as new information becomes available. If, after having capitalised the expenditure under the policy, a judgement is made that recovery of the expenditure is unlikely, the relevant capitalised amount will be written off to profit and loss. Refer to note 12 for details of the judgement applied in the current year in relation to exploration and evaluation expenditure.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

4. SEGMENT INFORMATION

The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors to make decisions about resources to be allocated to the segments and assess their performance.

The Group has two reportable segments which are based on the stage of development of its projects, which are broadly in either of two groups: those in the exploration phase or those in the evaluation stage. Unallocated results, assets and liabilities represent corporate amounts that are not core to the reportable segments.

Prior year information may be restated to reflect the current composition of reportable segments.

Activity by segment

- Africa Kanyika

The Africa-Kanyika segment includes the Kanyika Niobium Project in Malawi which comprises LML0216/21 and which is host to a 2012 JORC compliant Mineral Resource Estimate of 68.3Mt @ 2,830ppm Nb2O5 (niobium pentoxide) and 135ppm Ta5O5 (tantalum pentoxide) at a 1,500 ppm Nb2O5 cut-off.

The Kanyika Niobium Project is currently at the evaluation stage.

- Africa Exploration

The Africa-Exploration segment includes the exploration prospecting licence EPL0421/15 which lies adjacent to AML0026. Limited early-stage exploration activity has been conducted on EPL0421/15 with no mineral resources having been defined; as such it is at the exploration stage:

2021 (i) Segment performance year ended 30 June 2021 Revenue Segment revenue Segment loss Reconciliation of segment result to group net loss before tax Other income Other corporate expenses Net loss before tax from continuing operations (ii) Segment assets as at 30 June 2021 Exploration expenditure Plant and equipment Other assets Total Segment Assets Reconciliation of segment assets to group assets Other corporate assets Total group assets (iii) Segment liabilities as at 30 June 2021 Trade Creditors and Accruals Total Segment liabilities Reconciliation of segment liabilities to group liabilities Trade Creditors and Accruals Lease liability Provisions Total group liabilities	Africa-Kanyika Africa- Exploration $’000 $’000 - -	Total $’000 -
	- -	-
	(197) (54)	(251)
	29,357 - 23 135 59 76	222 (1,349)
		(1,378)
		29,357 158 135
	29,439 211	29,650
	45 54	3,030
		32,680
		99 99 132 46 127 404
	45 54

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

2020 (i) Segment performance year ended 30 June 2020 Revenue Segment revenue Segment loss Reconciliation of segment result to group net loss before tax Other income Other corporate expenses Net loss before tax from continuing operations (ii) Segment assets as at 30 June 2020 Exploration expenditure Plant and equipment Other assets Total Segment Assets Reconciliation of segment assets to group assets Other corporate assets Total group assets (iii) Segment liabilities as at 30 June 2020 Trade Creditors and Accruals Total Segment liabilities Reconciliation of segment liabilities to group liabilities Trade Creditors and Accruals Provisions Total group liabilities	Africa-Kanyika Africa- Exploration $’000 $’000 - -	Total $’000 -
	- -	-
	(264) 32	(232)
	28,349 - 22 135 53 81	104 (1,321)
		(1,449)
		28,349 157 134
	28,424 216	28,640
	31 67	5,342
		33,982
		98
	31 67	98
		126 88
		312

The Group operated in two geographical segments, being Australia and Africa, and in one industry, minerals mining and exploration.

Geographical Information

Total non-current assets of: Australia Africa Total 5. INCOME Interest income - Interest received and receivable	Consolidated 2021 $’000 2020 $’000 121 95 29,582 28,505
	29,703 28,600
	Consolidated 2021 $’000 2020 $’000 23 104 23 104

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

	Consolidated
	2021	2020
	$’000	$’000
6. EXPENSES
Loss from operations before income tax has been determined after the following items:
Consultant fee	264	264
Lease expenses (a)	30	38
Superannuation expenses	48	43
Business development	1	12
Depreciation	17	13
Foreign exchange loss	30	50
Finance Costs
- Bank Charges	5	4
	395	424

(a) The	expense is relating to short-term leases with a lease term of less than 12 months.
7. INCOME TAX EXPENSE
a.	The components of tax expense comprise:
	Current tax	-	-
	Deferred tax	-	-
		-	-
b.	Deferred income tax/(revenue)
	Deferred income tax/(revenue) included in tax expense comprises:
	Increase in deferred tax assets	-	-
	Increase in deferred tax liabilities	-	-
		-	-
c.	The prima facie tax benefit on loss from ordinary activities before income
	tax is reconciled to the income tax as follows:
	Loss before income tax	1,378	1,449
	Prima facie tax benefit on loss from
	ordinary activities before income tax at 30%
	(2020: 30%)	413	435
	- Deferred tax assets not recognised	(413)	(435)
		-	-
	The tax benefits of the deferred tax assets will only be obtained if:
	(a) the Group derives future assessable income of a nature and of an amount sufficient to enable the benefits to
	be utilised;
	(b) the Group continues to comply with the conditions for deductibility imposed by law; and
	(c) no changes in income tax legislation adversely affect the Group in utilising the benefits.
d.	Deferred tax assets /(liabilities) comprise:
	Trade & other payables	39	28
	Provision	38	29
	Tax losses available for offset against future taxable income	9,970	9,621
	Net deferred tax assets	10,047	9,678
	Deferred tax assets not recognised	(10,047)	(9,678)
		-	-

The tax losses that arose in Malawi are available for a period of up to six years for offsetting against future taxable profits of the Group in which the losses arose.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

8. CASH AND CASH EQUIVALENTS AND TERM DEPOSITS Cash at bank	Consolidated 2021 $’000 2020 $’000 2,816 5,182 2,816 5,182

The Group’s exposure to interest rate risk and credit risk is discussed in note 2. The maximum exposure to credit risk at the end of the reporting year is the carrying amount of each class of cash and cash equivalents mentioned above.

9. OTHER RECEIVABLES - CURRENT GST Receivable VAT Receivable Other Tax Receivable	Consolidated 2021 $’000 2020 $’000 29 31 11 30 17 20
	57 81

Due to the short-term nature of the current receivables, their carrying amount is assumed to approximate their fair value. The group’s impairment and other accounting policies for other receivables are outlined in note 1(j).

Information about the group’s exposure to credit risk, foreign exchange and interest rate risk is provided in note 2. The maximum exposure to credit risk at the end of the reporting year is the carrying amount of each class of financial asset mentioned above.

10. OTHER ASSETS - CURRENT Prepayments Accrued Interest Security Deposits Other	Consolidated 2021 $’000 2020 $’000 61 63 - 3 34 44 9 9
	104 119

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements

For the Year Ended 30 June 2021

Consolidated

11. PLANT AND EQUIPMENT Year ended 30 June 2021 Opening net book amount Additions Depreciation charge Closingnet book amount *At 30 June 2021* Cost Accumulated depreciation Net book value	Plant & Equipment	Other Total
	$’000	$’000 $’000



	124	59 183
	79	3 82
	(15)	(2) (17)
	188	60 248


	741	152 893
	(553)	(92) (645)
	188	60 248

Year ended 30 June 2020
Opening net book amount	116	62 178
Disposals	18	- 18
Depreciation charge	(10)	(3) (13)
Closingnet book amount	124	59 183

*At 30 June 2020*
Cost	661	149 810
Accumulated depreciation	(537)	(90) (627)
Net book value	124	59 183

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

12. EXPLORATION AND EVALUATION EXPENDITURE
Non-Current
Costs carried forward in respect of areas of interest in:
Exploration and evaluation phases – at cost
Exploration and evaluation expenditure total
comprising:
Kanyika Niobium Project
Total exploration and evaluation phases – at cost
Opening balance
Exploration expenditure capitalised during the year
Reversal of amounts previously provided for relating to Foreign Tax
At reporting date

Consolidated
2021
$’000
2020
$’000
29,357
28,349
29,357
28,349
29,357
28,349
29,357
28,349
28,349
27,956
1,008
544
-
(151)
29,357
28,349

Kanyika Niobium Project

The Directors have considered the requirements of AASB 6: Exploration for and Evaluation of Mineral Resources, and have reviewed the carrying value of exploration and evaluation expenditures that relate to the Kanyika Niobium Project. Based on the review, the directors consider the carrying value of the Kanyika Niobium Project is supported by the anticipated future value. Furthermore, there are no indications that the carrying value of the Kanyika Niobium Project was impaired at 30 June 2021.

Other

The value of the Group’s interest in exploration expenditure is dependent upon:

the continuance of the consolidated entity’s rights to tenure of the areas of interest;
the results of future exploration; and
the recoupment of costs through successful development and exploitation of the areas of interest, or alternatively, by their sale.
no significant changes in laws and regulations that greatly impact the company’s ability to maintain tenure.

The Group’s exploration properties may be subjected to claim(s) under native title, or contain sacred sites, or sites of significance to indigenous people. As a result, exploration properties or areas within the tenements may be subject to exploration restrictions, mining restrictions and/or claims for compensation. At this time, there has not been any material claims made to the Group.

COVID-19 Pandemic

Whilst the COVID-19 pandemic has caused delay in relation to the progress of the Kanyika Project it has not caused any direct material financial effect on the carrying value of exploration and evaluation expenditure.

And whilst potential exists for future progress at the Kanyika Project to be impacted due to the COVID-19 situation facing Malawi with the delta strain prevalent and the number of ill and deceased having increased significantly in recent times, it is unlikely to have direct material financial effect on the carrying value of exploration and evaluation expenditure.

13. TRADE AND OTHER PAYABLES Current Trade creditors Other creditors and accruals	Consolidated 2021 $’000 2020 $’000 21 62 210 162
	231 224

Non-interest bearing liabilities are predominantly settled within 30 days.

Due to the fact that trade and other payables are current, their carrying amount approximates fair value.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

14. PROVISIONS Current Employee benefit provisions	Consolidated 2021 $’000 2020 $’000 127 88
	127 88

15. CONTRIBUTED EQUITY Fully paid ordinary shares	Consolidated 2021 2020 $’000 Number $’000 Number 80,753 465,922,373 80,753 465,922,373
	80,753 465,922,373 80,753 465,922,373

Movements in fully paid ordinary shares on issue are as follows:

Fully paid ordinary shares at beginning of reporting year Balance at the end of reporting year	Consolidated 2021 2020 $’000 Number $’000 Number 80,753 465,922,373 80,753 465,922,373
	80,753 465,922,373 80,753 465,922,373

(a) Management of Share Capital

The Directors primary objectivity is to maintain a capital structure that ensures the lowest cost of capital available to the Group. At reporting date, the Group has no external borrowings.

The Group is not subject to any externally imposed capital requirements.

Capital Risk Management

The consolidated entity’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends, return capital to shareholders, issue/buy-back shares or sell assets to reduce debt.

The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative to the current parent entity’s share price at the time of investment. The consolidated entity is not currently pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies.

The capital risk management policy remains unchanged from the 30 June 2020 annual report.

(b) Terms of Ordinary Shares

Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the number of shares held and in proportion to the amount paid up on the shares held. The fully paid ordinary shares have no par value.

At shareholders meetings each ordinary share is entitled to one vote in proportion to the paid up amount of the share when a poll is called, otherwise each shareholder has one vote on a show of hands.

At the end of reporting year, there are 465,922,373 shares on issue.

(c) Terms of Options

At the end of reporting year, there were no options over unissued shares.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements

For the Year Ended 30 June 2021

16. ACCUMULATED LOSSES (a) Accumulated losses Accumulated losses at the beginning of the financial year Net loss attributable to shareholders Accumulated losses at the end of the financial year	Consolidated 2021 $’000 2020 $’000 (47,117) (45,668) (1,378) (1,449)
	(48,495) (47,117)

17. INTERESTS IN CONTROLLED ENTITIES

The consolidated financial statements incorporate the assets, liabilities and the results of the following subsidiaries in accordance with the accounting policy described in note 1(a):

Name	Country of	Principal Activities	Class of	Equity	Holding *
	Incorporation		Shares
				2021	2020
Globe Metals & Mining UK Corporation	UK	Dormant	Ordinary	100%	100%
Globe Uranium (Argentina) S.A.	Argentina	Dormant	Ordinary	100%	100%
Globe Metals & Mining (Africa) Limited	Malawi	Holds Kanyika Project	Ordinary	100%	100%
Globe Metals & Mining Mozambique Limitada	Mozambique	Dormant	Ordinary	100%	100%
Globe Metals & Mining (Exploration) Limited	Malawi	Holder of exploration tenements Ordinary		100%	100%
Globe Metals & Mining Investment	Hong Kong	Dormant	Ordinary	100%	100%
Appium Limited	Hong Kong	Holder of IP patents	Ordinary	100%	100%

Percentage of voting power is in proportion to ownership.

18. DIVIDENDS PAID OR PROVIDED FOR ON ORDINARY SHARES

No dividends were paid during the year. No recommendation for payment of dividends has been made.

19. KEY MANAGEMENT PERSONNEL DISCLOSURES

(a) Details of key management personnel

The following persons were key management personnel of Globe Metals & Mining Limited during the financial year:

Alice Wong	Non-Executive Chairperson
Alistair Stephens	Managing Director and CEO
William Hayden	Non-Executive Director
Bo Tan	Non-Executive Director
Ricky Lau	Non-Executive Director (Appointed on 14 December 2020)
Alex Ko	Non-Executive Director (Resigned on 14 December 2020)
Michael Fry	Finance Manager and Company Secretary

(b) Remuneration of key management personnel

Short term employee benefits Post-employment Long term employee benefits	Consolidated 2021 $ 2020 $ 899,389 956,200 47,457 48,564 26,035 36,099
	995,410 1,018,334

Detailed remuneration disclosures are provided in the remuneration report on pages 23 to 28.

(c) Loans to key management personnel

There were no outstanding unsecured loans to Key management personnel at 30 June 2021 (2020: Nil).

(d) Other transactions with key management personnel

There were no other transactions with Key Management Personnel during the year ended 30 June 2021 or in existence at 30 June 2021 (2020: Nil).

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements

For the Year Ended 30 June 2021

Consolidated

	2021	2020
	$	$
20. AUDITORS’ REMUNERATION
Fees to Ernst & Young (Australia)
- Fees for auditing the statutory financial report of the parent covering the group and
auditing the statutory financial reports of any controlled entities	63,075	63,075
Total fees to Ernst & Young (Australia) (A)	63,075	63,075
Fees to other overseas member firms of Ernst & Young (Australia)
- Fees for auditing the financial report of any controlled entities	30,533	30,533
Total fees to overseas member firms of Ernst & Young (Australia) (B)
Total auditor’s remuneration (A) + (B)	93,608	93,608

21. CONTINGENT LIABILITIES

In the opinion of the directors there were no contingent liabilities at 30 June 2021 (30 June 2020: nil), and the interval between 30 June 2021 and the date of this report.

22. COMMITMENTS

(a) Exploration commitments

In order to maintain current rights of tenure to mining tenements, the Group has the following exploration expenditure requirements up until expiry of tenements. These obligations, which are subject to renegotiation upon expiry of the tenements, are not provided for in the financial statements and are payable:

Not longer than one year Longer than one year, but not longer than five years	Consolidated 2021 $’000 2020 $’000 161 116 - 249
	161 365

If the Group decides to relinquish certain leases and/or does not meet these obligations, assets recognised in the statement of financial position may require review to determine the appropriateness of carrying values. The sale, transfer or farm-out of exploration rights to third parties will reduce or extinguish these obligations.

b) Lease expenditure commitments

Not longer than one year Longer than one year, but not longer than five years Longer than five years	Consolidated 2021 $’000 2020 $’000 43 49 - - - -
	43 49

Lease expenses relate to the leases for office and staff accommodation in Malawi where the lease arrangement is less than a year.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements For the Year Ended 30 June 2021

23. RELATED PARTY DISCLOSURES

(a) Parent entity

The ultimate parent entity of the Group is Globe Metals & Mining Limited.

(b) Key management personnel Disclosures relating to key management personnel are set out in note 19.
(c) Other related party transactions: Nil.

24. EVENTS SUBSEQUENT TO REPORTING DATE

No other matters or circumstances have arisen since the end of the financial year which have significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years, except for the following:

- Grant of Large Scale Mining Licence LM0216/21

The licencee shall:

Pay annual charges prescribed under the Mines and Minerals (Mineral Rights) Regulations 1981 and mineral royalties in accordance with the Mines and Minerals Act.
Have a right to mine and process pyrochlore
Endeavour to give employment preferentially to citizens of Malawi
Endeavour to procure goods and services produced and manufactured in Malawi provided that they can be obtained at competitive terms and in comparable quality.
Submit reports to the Registrar of Mineral Tenements as required
Comply with all conditions imposed under Part VIII of the Mines and Minerals Act (No. 8 of 2019).

Feasibility Study Results and Project Economics

Also on 19 August 2021, Globe publicly released the results of its Feasibility Study and Project economics, with Globe advising that the Project had an expected capital cost of US$250 million and was expected to generate US$5.6 billion over its 23-year mine life with a net present value of US$1 billion (pre-tax) at a discount rate of 8% per annum.

Consolidated

25. RECONCILIATION OF LOSS AFTER INCOME TAX TO
NET CASH OUTFLOW FROM OPERATING ACTIVITIES
(a) Reconciliation of cash flow used in operations with loss after tax
-
Loss after income tax
Non-cash flows in loss from operations
-
Depreciation
Changes in assets and liabilities
-
Increase / (Decrease) in receivables and other current assets
-
Increase / (Decrease) in trade and other payables and provisions
Net cash outflows from operating activities

2021
$’000
2020
$’000
(1,378)
(1,449)
17
13
30
(233)
100
308
(1,231)
(1,361)

(b) Non-cash investing and financing activities

There were no non-cash investing and financing activities during the year and 2020.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements

For the Year Ended 30 June 2021

Consolidated

26. LOSS PER SHARE (a) Loss used in the calculation of basic and diluted loss per share (b) Weighted average number of ordinary shares outstanding during the year used in the calculation of basic and diluted loss per share:	2021 $’000 2020 $’000 (1,378) (1,449)
	Number of Shares Number of Shares 465,922,373 465,922,373

Options on issue have not been included in the Earning per Share calculation as they are anti-dilutive.

Note the total number of options as at 30 June 2021 is nil (2020: nil).

27. SHARE BASED PAYMENTS Options(a)	Consolidated 2021 $’000 2020 $’000 - -
	- -

There are options issued to employees as part of their compensation under the company’s employee share option policies. Options are independently valued by corporate advisers using the Black-Scholes option pricing method and Monte Carlo option pricing model. Options were granted subject to the attainment of performance and/or employment continuity criteria. All options vested two years before expiry.

No movement in options on issue for the reporting year ended 30 June 2021.

(a) Movements in options on issue 2020:

Grant Date	Expiry Date	Exercise Price	Balance at start of the year Number	Granted during the year Number	Exercised during the year Number	Lapsed during the year Number	Balance at 30 June 2020	Vested and exercisable at end of the year Number
2/07/2013	30/06/2020	$0.250	1,000,000	-	-	(1,000,000)	-	-
			1,000,000	-	-	(1,000,000)	-	-
Weighted average exerciseprice			$0.25	-	-	$0.25	-	-

Compensation options granted during the year ended 30 June 2021

There were no compensation options granted during the year ended 30 June 2021.

Compensation options granted during the year ended 30 June 2020

There were no compensation options granted during the year ended 30 June 2020.

Options Cancelled/Lapsed

Nil options lapsed during the reporting year ended 30 June 2021 (2020: 1,000,000).

Options Exercised

No options were exercised during the reporting year ended 30 June 2021 (2020: Nil).

GLOBE METALS & MINING – ANNUAL REPORT 2021

Notes to the Financial Statements

For the Year Ended 30 June 2021

Parent

28. PARENT ENTITY INFORMATION *Statement of comprehensive income* Profit after income tax Other comprehensive income Total comprehensive income *Statement of financial position* Total current assets Total assets Total current liabilities Total liabilities Net assets Equity Contributed equity Financial assets reserve Accumulated losses Total equity	2021 2020 $'000 $'000 1,099 4,111
	16 36
	1,115 4,147
	2,715 5,092
	12,636 11,440
	249 192
	271 192
	12,365 11,248
	80,753 80,753 (18) (34) (68,370) (69,471)
	12,365 11,248

Guarantees entered into by the parent entity

The parent entity had no guarantees as of 30 June 2021 or 30 June 2020.

Contingent liabilities

The parent entity had no contingent liabilities as at 30 June 2021 or 30 June 2020.

Capital commitments - Property, plant and equipment

The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 or 30 June 2020.

Significant accounting policies

The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except for the following:

Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.

GLOBE METALS & MINING – ANNUAL REPORT 2021

Directors’ Declaration For the Year Ended 30 June 2021

In the directors’ opinion:

a) the financial statements and notes set out on pages 33 to 59 are in accordance with the Corporations Act 2001 , including:
(i) complying with Accounting Standards and the Corporations Regulations 2001 , and
(ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its performance for the financial year ended on that date, and
b) subject to the matters set out in Note 1(u) to the financial report, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Note 1(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board.

The directors have been given the declarations by the chief executive officer and chief financial officer required by section 295A of the Corporations Act 2001 .

This declaration is made in accordance with a resolution of the directors.

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ALISTAIR STEPHENS

MANAGING DIRECTOR

Dated 28[th] day of September 2021

GLOBE METALS & MINING – ANNUAL REPORT 2021

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Independent auditor's report to the members of Globe Metals & Mining Limited

Report on the audit of the financial report

Opinion

We have audited the financial report of Globe Metals & Mining Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001 , including:

a. giving a true and fair view of the consolidated financial position of the Group as at 30 June 2021 and of its consolidated financial performance for the year ended on that date; and
b. complying with Australian Accounting Standards and the Corporations Regulations 2001

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw attention to Note 1(u) in the financial report, which describes the principal conditions that raise doubt about the Group’s ability to continue as a going concern. These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

GLOBE METALS & MINING – ANNUAL REPORT 2021

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matter described below to be the key audit matter to be communicated in our report. For the matter below, our description of how our audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial Repor t section of our report, including in relation to this matter. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial report. The results of our audit procedures, including the procedures performed to address the matter below, provide the basis for our audit opinion on the accompanying financial report.

Carrying value of capitalised exploration and evaluation

Why significant How our audit addressed the key audit matter As disclosed in Note 12 to the financial report, as We evaluated the Group’s assessment as to at 30 June 2021, the Group held capitalised whether there were any indicators of impairment to exploration and evaluation expenditure assets of require the carrying value of exploration and $29,357,000. evaluation assets to be tested for impairment. In performing our audit procedures, we:

The carrying value of exploration and evaluation expenditure is assessed for impairment by the Group when facts and circumstances indicate that the exploration and evaluation expenditure may exceed its recoverable amount.

Considered the Group’s right to explore in the relevant exploration area which included obtaining and assessing supporting documentation such as licence agreements.
► Considered the Group’s intention to carry out exploration and evaluation activity in the relevant exploration area which included an assessment of the Group’s cash-flow forecast provided for expenditure for planned exploration and evaluation activities, and enquiring with senior management and Directors as to the intentions and strategy of the Group.

The determination as to whether there are any indicators to require an exploration and evaluation asset to be assessed for impairment, involves a number of judgments including whether the Group has tenure, will be able to perform ongoing expenditure and whether there is sufficient information for a decision to be made that the area of interest is not commercially viable. During the year the Group determined that there had been no indicators of impairment.

Considered the Group’s assessment of whether the commercial viability of extracting mineral resources had been demonstrated and whether it was appropriate to continue to classify the capitalised expenditure for the area of interest as an exploration and evaluation asset.

Given the size of the balance and the judgmental nature of impairment indicator assessments associated with exploration and evaluation assets, we consider this a key audit matter.

Considered whether there was any other data or information that indicated the carrying value of the capitalised exploration and evaluation expenditure would not be recovered in full from successful development or by sale.
Assessed the adequacy of the disclosure in Note 12 to the financial report.

GLOBE METALS & MINING – ANNUAL REPORT 2021

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Information other than the financial report and auditor’s report thereon

The directors are responsible for the other information. The other information comprises the information included in the Company’s 2021 Annual Report, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the financial report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

GLOBE METALS & MINING – ANNUAL REPORT 2021

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As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

GLOBE METALS & MINING – ANNUAL REPORT 2021

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From the matters communicated to the directors, we determine those matters that were of most significance in the audit of the financial report of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on the audit of the remuneration report

Opinion on the remuneration report

We have audited the Remuneration Report included in the directors' report for the year ended 30 June 2021.

In our opinion, the Remuneration Report of Globe Metals & Mining Limited for the year ended 30 June 2021, complies with section 300A of the Corporations Act 2001.

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

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Ernst & Young

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Gavin Buckingham

Partner

Perth

28 September 2021

GLOBE METALS & MINING – ANNUAL REPORT 2021

ASX Additional Information

Additional information required by the ASX and not shown elsewhere in this report is as follows.

Shareholding at 22 October 2021

Total fully paid ordinary shares on issue

465,922,373

The distribution of members and their holdings of fully paid ordinary shares in the Company were as follows:

No. Securities Held 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 > 100,001 Total no. holders No. holders of less than a marketable parcel Percentage of the 20 largest holders Substantial shareholders at 22 October 2021 APOLLO METALS INVESTMENT CO. LTD AO-ZHONG INTERNATIONAL MINERALS PTY LTD 20 Largest holders of securities at 22 October 2021	Fully Paid Shares Cumulative No. Holders Number of Shares 61 3,054 59 216,338 77 620,944 328 14,789,416 150 450,292,621 675 465,922,373 101 127,603 89.27% No. Shares % 245,983,611 52.79 118,143,062 25.36

The names of the twenty largest ordinary fully paid shareholders as 6 October 2021 are as follows:

Names 1) APOLLO METALS INVESTMENT CO. LTD 2) AO-ZHONG INTERNATIONAL MINERALS PTY LTD 3) BNP PARIBAS NOMINEES PTY LTD 4) CITICORP NOMINEES PTY LIMITED 5) SEARL, COLIN ROBERT & CYNDA 6) ULRICH, RICHARD & ULRICH, WENDY 7) HSBC CUSTODY NOMINEES 8) GOENG INVESTMENTS PTY LTD 9) BNP PARIBAS NOMINEES PTY LTD 10) SMITH, JOHN ALEXANDER 11) BODMAN, KELLY 12) BALLARD, ANDREW CHARLES 13) THOMSON, MARK ANDREW 14) COSEC NOMINEES PTY LTD 15) BNP PARIBAS NOMS PTY LTD 16) STEPHENS, ALISTAIR & MECHELLE 17) TEBIL PTY LTD 18) SHULTZ, MICHAEL M&K KORKIDAS PTY LTD < M&K KORKIDAS PTY LTD A/C> HAYDEN, WILLIAM BECKWITH & JULIE MARGARET 19) BURTON, PAUL 20) BNP PARIBAS NOMINEES PTY LTD ELLERY, GRAEME ROSS	No. Shares % 245,983,611 52.80 118,143,062 25.36 14,055,718 3.02 8,117,769 1.74 2,717,879 0.58 2,654,000 0.57 2,533,891 0.54 2,358,697 0.51 2,329,734 0.50 2,200,000 0.47 1,645,618 0.35 1,534,899 0.33 1,526,500 0.33 1,509,065 0.32 1,435,650 0.31 1,325,000 0.28 1,310,414 0.28 1,200,000 0.26 1,200,000 0.26 1,200,000 0.26 1,176,470 0.25 1,000,000 0.21 1,000,000 0.21
	418,157,977 89.75

Names
1)
APOLLO METALS INVESTMENT CO. LTD
2)
AO-ZHONG INTERNATIONAL MINERALS PTY LTD
3)
BNP PARIBAS NOMINEES PTY LTD
4)
CITICORP NOMINEES PTY LIMITED
5)
SEARL, COLIN ROBERT & CYNDA
6)
ULRICH, RICHARD & ULRICH, WENDY
7)
HSBC CUSTODY NOMINEES
8)
GOENG INVESTMENTS PTY LTD
9)
BNP PARIBAS NOMINEES PTY LTD
10) SMITH, JOHN ALEXANDER
11) BODMAN, KELLY
12) BALLARD, ANDREW CHARLES
13) THOMSON, MARK ANDREW
14) COSEC NOMINEES PTY LTD
15) BNP PARIBAS NOMS PTY LTD
16) STEPHENS, ALISTAIR & MECHELLE
17) TEBIL PTY LTD
18) SHULTZ, MICHAEL
M&K KORKIDAS PTY LTD < M&K KORKIDAS PTY LTD A/C>
HAYDEN, WILLIAM BECKWITH & JULIE MARGARET
19) BURTON, PAUL
20) BNP PARIBAS NOMINEES PTY LTD
ELLERY, GRAEME ROSS

No. Shares
%
245,983,611
52.80
118,143,062
25.36
14,055,718
3.02
8,117,769
1.74
2,717,879
0.58
2,654,000
0.57
2,533,891
0.54
2,358,697
0.51
2,329,734
0.50
2,200,000
0.47
1,645,618
0.35
1,534,899
0.33
1,526,500
0.33
1,509,065
0.32
1,435,650
0.31
1,325,000
0.28
1,310,414
0.28
1,200,000
0.26
1,200,000
0.26
1,200,000
0.26
1,176,470
0.25
1,000,000
0.21
1,000,000
0.21

418,157,977
89.75

GLOBE METALS & MINING – ANNUAL REPORT 2021

ASX Additional Information

Unlisted options at 22 October 2021

Nil

Voting rights

The Constitution of the company makes the following provision for voting at general meetings:

On a show of hands, every ordinary shareholder present in person, or by proxy, attorney or representative has one vote. On a poll, every shareholder present in person, or by proxy, attorney or representative has one vote for any share held by the shareholder, but in respect of partly paid shares, shall only have a fraction of a vote for each partly paid share. The fraction must be equivalent to the proportion which the amount paid (not credited) is of the total amounts paid and payable (excluding amounts credited).

Restricted securities

There are no restricted securities or securities subject to voluntary escrow.

Mineral Tenement Schedule as at 22 October 2021

Project	Location	Status	Tenement	Globe’s interest
Kanyika Niobium (i)	Malawi	Granted	LML0216/21	100%
Kanyika Exploration	Malawi	Granted	EPL0421/15	100%

Key:

LML- Large Scale Mining Licence issued 13 August 2021

EPL – Exclusive Prospecting Licence (Malawi)

Note:

Globe’s wholly owned subsidiary, Globe Metals & Mining (Africa) Limited (GMMA) was granted Large Scale Mining Licence LM0216/21 on 13 August 2021. LM0216/21 is valid for twenty-five (25) years and entitles GMMA the exclusive right to prospect for and mine minerals(s) in the licence area on the terms and conditions attaching to the licence. The most material of these terms and conditions are listed below.

The licencee shall:

Pay annual charges prescribed under the Mines and Minerals (Mineral Rights) Regulations 1981 and mineral royalties in accordance with the Mines and Minerals Act.
Have a right to mine and process pyrochlore
Endeavour to give employment preferentially to citizens of Malawi
Endeavour to procure goods and services produced and manufactured in Malawi provided that they can be obtained at competitive terms and in comparable quality.
Submit reports to the Registrar of Mineral Tenements as required
Comply with all conditions imposed under Part VIII of the Mines and Minerals Act (No. 8 of 2019).

GLOBE METALS & MINING – ANNUAL REPORT 2021

AI assistant

GLOBE METALS & MINING LIMITED — Annual Report 2021

64965_rns_2021-10-28_a8ad3600-01e1-4eb2-893d-281ee5562586.pdf

Corporate Directory

Directors

Table of Contents

Chairperson’s Address

Niobium transforms materials into smarter materials to build greener structures, help make energy cleaner and mobility more sustainable.

Uses

Spotlight: Niobium and the Automotive industry

Electrical Vehicle Batteries

New Applications

‘ Niobium’s unique combination of physical and chemical elements makes it a material of choice in a myriad of challenging high technology electronic

applications , H.C. Starck Solutions

Niobium – a Strategic Metal

Demand

Supply

Pricing

Tantalum

Globe Metals and Mining Limited (Globe) is an Australian registered public company and has been listed on the ASX since December 2005 (ASX: GBE).

Mining and Processing

Processing and Concentration

Concentrator Flowsheet Schematic

Refining

Production

Products

Mineral Resources and Ore Reserves

Mining Licence Granted

Feasibility Study

Mine Development Agreement

Community

Relocation

Environmental Studies

Project Development and Financing

Project Funding Requirements

Sales Agreements

Exploration Results, Mineral Resource and Ore Reserve Estimation Governance Statement

Qualifying Statements

Mineral Resource Estimates

Forward Looking Statements

INFORMATION ON DIRECTORS

William Hayden

Non-Executive Director

Non-Executive Director

Non-Executive Director

Non-Executive Director

Remuneration Report - Audited

A. Remuneration Governance

B. Remuneration Policy

C. Remuneration Arrangements

D. Performance Based Remuneration

E. Performance Summary

F. No Hedging Contracts

G. Securities Trading Policy

H. Details of Remuneration

Compensation of key management personnel for the year ended 30 June 2021

Compensation of key management personnel for the year ended 30 June 2020

Compensation options granted to key management personnel during the year ended 30 June 2021

Option Holdings of Directors and Key Management Personnel

Shareholdings of Director and Key Management Personnel in Listed Fully Paid Ordinary Shares

I. Voting and comments made at the Company’s 2021 Annual General Meeting (AGM)

J. Contractual Arrangements

Non-Executive Directors

Executive Management

Meeting of Directors

Significant Changes in the State of Affairs

Dividends

Likely Developments and Expected Results of Operations

Proceedings on behalf of the company

After Balance Events

- Grant of Large Scale Mining Licence LM0216/21

Feasibility Study Results and Project Economics

Auditor

Non-Audit Services

Indemnifying Officers or Auditors

Rounding of Amounts

Auditors Independence Declaration

ALISTAIR STEPHENS

Auditor’s independence declaration to the directors of Globe Metals & Mining Limited

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

GLOBE METALS & MINING LIMITED Annual Report 2021