GREENWING RESOURCES LTD — Annual Report 2020

Sep 29, 2020

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UNAUDITED FINANCIAL REPORT 30 June 2020

(IN THE FORMAT OF ASX APPENDIX 4E – REFER NOTE 9)

1. Company details

Name of entity: Bass Metals Ltd ABN: 31 109 933 995 Reporting period: For the year ended 30 June 2020 Previous period: For the year ended 30 June 2019

2. Results for Announcement to Market

$AUD		2020	2019
Revenues from ordinary activities	Up 7%	1,422,333	1,328,326
Loss from ordinary activities	Down 69%	11,645,461	6,897,099
Loss before interest and tax (EBIT) from ordinary activities	Down 77%	12,214,489	6,912,685
Loss from ordinary activities attributable to the owners of Bass	Down 56%	12,927,912	8,295,652
Metals Limited
Loss for the year attributable to the owners of Bass Metals	Down 56%	12,927,912	8,295,652
Limited

3. Net tangible assets

Cents	2020	2019
Net tangible assets per ordinary security	0.001	0.005

4. Control gained over entities

Not applicable.

5. Dividends

There were no dividends paid, recommended or declared during the reporting period or the previous period.

6. Dividend reinvestment plans

Not applicable.

7. Status of audit

This unaudited financial report is based on a financial report that is in the process of being audited.

8. Audit dispute or qualification

The audit of the financial reports is currently underway. The auditor has advised that it is likely that the audit opinion will contain an emphasis of matter in relation to the Company’s ability to continue as a going concern, as it did in the prior year, and a qualification in relation to inventory quantities recorded due to COVID -19 restrictions preventing attendance at the stock take of the Company’s inventory.

9. ASIC relief – Extended Reporting and Lodgment Deadlines

On 13 May 2020, ASIC announced that it would extend the deadline for both listed and unlisted entities to lodge financial reports under Chapters 2M and 7 of the Corporations Act by one month for certain balance dates. ASIC-CI 2020./451 applies to annual reports for a financial year that ends between 21 February 2020 and 7 July 2020 (both inclusive) and to half yearly reports for a half year that ends between 15 March 2020

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and 7 July 2020 (both inclusive). Under that relief, the deadline for lodgment of full year financial reports, directors’ reports and auditor’s reports with ASIC is extended from three months to four months after year end.

On 16 June 2020, ASX issued a Class Waiver Decision – Extended Reporting and Lodgment Deadlines under listing rule 18.1 to give effect to the relief granted by ASIC noted above.

The Company is relying on the ASIC Relief to extend the lodgment date for its audited annual accounts and the other documents required to be lodged with ASIC under section 319 of the Corporations Act and the ASX Class Waiver Decision to lodge the same documents with ASX.

Under both categories of relief detailed above, the Company is required to release its audited financial statements at the earlier of: (i) when they are ready to be given to ASX; or (ii) when they must be given to ASIC under the ASIC Relief.

The Company will immediately make a further announcement to the market if there is a material difference between its unaudited annual accounts and its audited annual accounts.

10. Commentary on results

Production

During the year, the Company produced 1,836 wet tonnes of concentrate, at an average large flake distribution (>180 microns) of 42%. Bass produced a broad range of concentrates during the year ranging from 88% Fixed Carbon (FC) to 96% FC. During the year, the Company sold 2,359 tonnes of concentrate into China, Europe, the United States and India, with a 30% increase on 2019 sales.

Bass made the decision in December 2019, to pause mining and front-end processing at Graphmada at the end of December, given a forecast of above average anticipated rainfall over the monsoon season, of a similar quantum to Q1 2019. Drying, screening and packaging operations continued through to March 2020, at which time operations were then subsequently suspended given Madagascar closing its borders and the resultant logistical impacts due to the impacts of COVID-19 pandemic. The mine remains under care and maintenance.

Exploration and Development

Bass continued its exploration and development initiatives during the year, delivering a material upgrade in JORC Code (2012) classification for the Mahefedok Mineral Resource and completing a maiden Mineral Resource at the Mahela Deposit of 4.4Mt at 3.8% TGC, an outstanding 44% increase in total Mineral Resources for Graphmada, which now stands at 14.3mt at 4% TGC.

The Company continues to explore and develop Graphmada for large-scale mining and processing operations. Bass is currently conducting an extensive appraisal of the Lohorano - Mahela trend with a view to establishing this strike as one continuous deposit. Results to date and released to ASX have been encouraging with the recent Mangabe discovery (red to ASX announcement dated 16 July 2020)

Along with production and exploration, the team at Bass commenced feasibility studies for the expansion of operations, with a key focus on reducing operating costs and growing production to meet market demand at the lowest possible capital intensity. Post year end, feasibility works continue in parallel with exploration efforts.

The concentrates produced by the Company have the two main constituent properties for application to most advanced materials, being a large flake and clean concentrates. Bass is currently continuing test work and discussions with potential Joint Venture (JV) partners with a view to producing a range of advanced materials using Bass Concentrates. In addition, Bass signed a Term Sheet with Urbix Resources, broadening the scope of the proposed alliance to encompass the supply of additional critical minerals for the US energy market and signed a Memorandum of Understanding with Swinburne University of Technology to advance carbon materials research and product development.

Other Assets

The Company also completed the sale of its Hellyer base metal rights and Mt. Block permit in Tasmania for a total consideration of $360,000 plus return of its $114,000 security bond.

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Capital Raisings

In June 2019, the Company announced a capital raising by a tranched issue of Convertible Notes with a face value of $0.008 each, with an interest rate of 15% per annum and a maturity date of 15 June 2021. Interest is payable half yearly in arrears and the interest may be paid at the Company’ election by the issue of further convertible note. Each Convertible Note converts into one ordinary share in the Company and is secured over the Company’s assets. In the 2019 year, $1.41 million was received for subscriptions to Convertible Notes, with a further $4.65 million received during the 2020 year.

In June 2020, the Company announcement an equity raising by way of a $2.35 million share placement plus a share purchase plan to conduct further exploration at the emerging Mahela and Mangabe deposits, continue progress on mine development, a definitive feasibility study, mine maintenance and for working capital. A total of $1.68 million was received by the issue of 671.8 million shares, with $1.0 million received from the placement and $0.68 million from the SPP. Since year end, and following the approval of shareholders on 18 September 2020, a further 446 million shares have been issued at a price of $0.0025 per shares raising a further $1.115 million, with the balance of approximately $0.26 million expected to be received in October 2020.

COVID-19

As noted above, a planned suspension of mining activities was undertaken in December 2019 due to forecast difficult monsoonal weather, with operations anticipated to resume in April 2020. Production activities, including drying and screening, continued into March 2020. On 25 March 2020, Bass announced the suspension of mining and production activities at the Graphmada Mining Complex for the foreseeable future with the onset of the COVID-19 pandemic, which resulted in a myriad of restrictions being put in place by the Madagascan and other governments, including the movement of people and cargo.

Some activities are continuing both in Madagascar and Australia in compliance with regulatory guidance including exploration drilling and related activities, progress on mine development and the definitive feasibility study and mine maintenance. Cost management actions have been taken including:

• 75% reduction in workforce

• 20-35% reduction in senior management and board remuneration

• Reduction in fuel costs (largest cost) by greater than 90% with mining suspended

• Sustaining capital has been suspended.

Impairments

As noted above, the capacity to recommence production in the short term at Graphmada appears unlikely with the Company facing a multitude of logistical obstacles as a direct result of the COVICD -19 pandemic and the ambiguity it is presenting all businesses. As a result of these factors and the uncertainty around timing of lifting of COVID-19 restrictions, and around the timing of re-commencement of production at Graphmada, the Company has taken the prudent step to take a non-cash impairment of $5.3 million on the exploration and evaluation assets, mine properties and plant and equipment.

The Company remains firmly of the view that there is significant upside in the valuation of this project. The Company has produced clean concentrates bereft of penalty elements and to specification and, over the course of its initial 20 month production program achieved an unblemished sales record with zero rejections or penalties incurred, with sales into all major graphite end markets.

Work is continuing on the appraisal of the Mahela–Lohorano trend. To date, Bass has achieved outstanding results, including the recently announced Mangabe discovery which is located in the mid-point of the MahelaLohorano trend. Bass will continue with its drilling program with a view to increasing the resources along with progressing feasibility studies for a larger scale mining operation.

In addition, an impairment of $0.7 million has been taken on the Millie’s Reward lithium project with no expenditure having been incurred on the project in 2020 nor is any expenditure projected for 2021 given the current uncertainty. The Company still considers the project to have significant value and will reassess its carrying value in due course. An impairment has also been recorded against a trade and other receivable for $0.3 million due to the period the receivable is outstanding, but the Company remains confident of recovery of this balance.

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UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2020

$ AUD	Note	2020	2019
Revenue		1,422,333	1,328,326
Cost of sales	4(a)	(3,083,616)	(3,340,010)
Other revenue	3	567,686	207,459
Administration expenses	4(b)	(4,558,269)	(5,562,452)
Finance costs		(569,028)	(15,586)
Foreign currency gain	4(c)	293,474	469,577
Impairment losses	4(d)	(6,287,069)	-
Operating loss		(12,214,489)	(6,912,686)
Income tax expense		-	-
Loss after tax from discontinued operations		(413,662)	(638,123)
Total comprehensive loss		(12,628,151)	(7,550,809)
Exchange differences on translatingforeign operations		(299,761)	(744,844)
Total comprehensive loss for theperiod, net of tax		(12,927,912)	(8,295,653)
Earnings per share
Basic and diluted lossper share from operations(cents)	5	(0.45)	(0.29)

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

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UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020

$ AUD Note	2020 2019
CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other assets Total Current Assets NON-CURRENT ASSETS Restricted cash Trade and other receivables Plant and equipment 6 Right of use assets 7 Exploration and evaluation assets 8 Mine properties 9 Total Non-Current Assets TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Borrowings 10 Lease liabilities Total Current Liabilities NON-CURRENT LIABILITIES Borrowings 10 Lease liabilities Provisions Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 11 Reserves Accumulated losses TOTAL EQUITY	1,706,407 1,561,212 335,670 789,163 926,852 1,617,927 76,171 109,841
	3,045,100 4,078,143
	10,801 10,801 566,500 680,500 4,601,544 5,472,453 102,572 - - 1,786,942 2,234,157 5,700,438
	7,515,574 13,651,134
	10,560,674 17,729,277
	1,480,998 1,816,108 5,479,320 412,420 80,855 -
	7,041,173 2,228,528
	- 1,122,160 26,793 - 985,581 1,113,324
	1,012,374 2,235,484
	8,053,547 4,464,012
	2,507,127 13,265,265
	93,931,109 92,709,574 877,913 229,435 (92,301,895) (79,673,744)
	2,507,127 13,265,265

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

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UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020

$AUD Note	2020 2019
Cash flows from operating activities Receipts from customers Research and development grant Australian Taxation Office cashflow boost Payments to suppliers and employees Net cash used in operating activities Cash flows from investing activities Purchase of property, plant and equipment Payment for exploration and evaluation assets Interest received Proceeds from the sale of property, plant and equipment Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Transaction costs on issue of shares and convertible notes Proceeds from issue of convertible notes Payment / (refund) of oversubscriptions Repayment of leases Refund of security deposits Interest paid Net cash from financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period Restricted cash Cash and cash equivalents at the end of the period	1,665,799 1,199,603 269,999 147,954 50,000 - (6,874,389) (8,659,682)
	(4,888,591) (7,312,125) (535,205) (801,560) (483,770) (713,529) 15,324 45,537 13,575 -
	(990,076) (1,469,552) 1,679,500 4,695,007 (457,965) (310,959) 4,685,000 1,370,000 116,500 - (77,243) - 114,000 - (35,930) (15,586)
	6,023,862 5,738,462 145,195 (3,043,215) 1,572,013 4,615,228
	1,717,208 1,572,013 (10,801) (10,801)
	1,706,407 1,561,212

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

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UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2020

	Share Capital Option Reserve Other Reserve Foreign Currency Translation Reserve Accumulated Losses Total Equity $ $ $ $ $ $ 92,709,574 918,983 287,840 (977,388) (79,673,744) 13,265,265 - - - - (12,628,151) (12,628,151) - - - (299,761) - (299,761) - - - (299,761) (12,628,151) (12,927,912) 1,679,500 - - - - 1,679,500 - - 948,239 - - 948,239 (457,965) - - - (457,965) 93,931,109 918,983 1,236,079 (1,277,149) (92,301,895) 2,507,127 Share Capital Option Reserve Other Reserve Foreign Currency Translation Reserve Accumulated Losses Total Equity $ $ $ $ $ $	Share Capital Option Reserve Other Reserve Foreign Currency Translation Reserve Accumulated Losses Total Equity $ $ $ $ $ $ 92,709,574 918,983 287,840 (977,388) (79,673,744) 13,265,265 - - - - (12,628,151) (12,628,151) - - - (299,761) - (299,761) - - - (299,761) (12,628,151) (12,927,912) 1,679,500 - - - - 1,679,500 - - 948,239 - - 948,239 (457,965) - - - (457,965) 93,931,109 918,983 1,236,079 (1,277,149) (92,301,895) 2,507,127 Share Capital Option Reserve Other Reserve Foreign Currency Translation Reserve Accumulated Losses Total Equity $ $ $ $ $ $
Balance at 1 July 2019 Loss for the period Other comprehensive loss Total comprehensive loss for the year Transactions with owners, recorded directly in equity Shares issued during the period Convertible notes Cost of shares issued for placement Balance at 30 June 2020
Balance at 1 July 2018 Loss for the period Other comprehensive loss Total comprehensive loss for the year Transactions with owners, recorded directly in equity Shares issued during the period Options – value of options exercised Options – value of options expired Convertible notes Cost of shares issued for placement Balance at 30 June 2019		88,005,521 1,150,350 - (232,544) (72,170,304) 16,753,023 - - - - (7,550,809) (7,550,809) - - - (744,844) - (744,844)
		- - - (744,844) (7,550,809) (8,295,653) 4,835,875 - - - - 4,835,875 183,998 (183,998) - - - - - (47,369) - - 47,369 - - - 287,840 - - 287,840 (315,820) - - - (315,820)
		92,709,574 918,983 287,840 (977,388) (79,673,744) 13,265,265

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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BASS METALS LTD Notes to the Consolidated Financial Statements

1. Summary of Significant Accounting Policies

Overall Considerations

The significant accounting policies that have been used in the preparation of these financial statements are summarised below.

The financial statements have been prepared using the measurement bases specified by Australian Accounting Standards for each type of asset, liability, income and expense. The measurement bases are more fully described in the accounting policies below.

(a) Basis of preparation

The preliminary financial report has been prepared in accordance with ASX Listing Rule 4.3A, the disclosure requirements of ASX Appendix 4E, Australian Accounting Standards and the Corporations Act 2001 .

The preliminary financial report complies with Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board and is in compliance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

The preliminary financial report does not include all the notes of the type normally included in an annual financial report and should be read in conjunction with the annual financial report for Bass Metals Ltd for the financial year ended 30 June 2019, the 31 December 2019 half-year report and any public announcements made by Bass Metals Ltd and its controlled entities during the year ended 30 June 2020 in accordance with the continuous disclosure requirements of the ASX Listing Rules.

(b) Basis of consolidation

At reporting date, the Company has four subsidiaries, Graphmada Mauritius (registered in Mauritius), Graphmada SARL (registered in Madagascar), Limada SARL (registered in Madagascar) and Bass Metal Holdings Pty Ltd (registered in Australia).

The Group financial statements consolidate those of the Parent Company and all of its subsidiaries as of 30 June 2020. The Parent controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. Two subsidiaries have a different reporting date other than 30 June, however they have provided financial information to allow the consolidated Group financial statements to be prepared based on a 30 June reporting date.

All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.

Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are recognised from the effective date of acquisition, or up to the effective date of disposal, as applicable.

Non-controlling interests, presented as part of equity, represent the portion of a subsidiary’s profit or loss and net assets that is not held by the Group. The Group attributes total comprehensive income or loss of subsidiaries between the owners of the parent and the non-controlling interests based on their respective ownership interests. There are no non-controlling interests in the Group during the year.

(c) AASB 16: Leases (applicable to annual reporting periods beginning on or after 1 January 2019).

The Company has applied the new accounting standard AASB16 Leases from 1 July 2019. Under AASB16, the Company recognizes the right of use assets and liabilities.

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The Company recognizes a right of use asset and a lease liability at the commencement of the lease. The right of use asset is initially measured at cost less any lease incentives. The right of use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term. The right of use asset is reviewed for any impairment.

The lease liability is initially measured at the present value of the remaining lease payments, discounted at the Company’s incremental borrowing rates as at 1 July 2019. The company excludes short term leases with less than 12 months tenure and leases relating to low value assets from the above recognition, these lease payments are recognized as an expense on a straight-line basis over the lease term. The new Standard has been applied using the modified retrospective approach. Prior periods have not been restated.

The adjustments to the Consolidated Statement of Financial Position are as follows:

$ AUD	2019
Increase in Right of Use Assets - property	102,572
Increase in Lease Liabilities (Current)	(80,855)
Increase in Lease Liabilities(Non-current)	(26,793)

2. Segment Information

Segment information for the reporting period is as follows:

2020 Revenue External customers Interest income Other income1 Inter- segment Segment revenues EBITDAIX Less depreciation & amortisation Less interest Less impairment Less foreign currency gains/(losses) Segment loss before tax Segment assets 2019 Revenue External customers Interest income Other income1 Inter- segment Segment revenues EBITDAIX2 Less depreciation & amortisation Less interest Less foreign currency gains/(losses) Segment loss before tax Segment assets*	Graphite Mining Exploration - Lithium Other Total $ $ $ $
	- - 1,422,333 1,422,333 - - 15,324 15,324 11,160 - 541,202 552,362 1,422,333 - (1,422,333) -
	1,433,493 - 556,526 1,990,019
	(3,548,061) (8,008) (1,548,701) (5,104,770) (459,180) (17,262) (85,666) (562,108) - - (554,016) (554,016) (5,570,647) (716,422) - (6,287,069) (39,705) (173) 333,352 293,474
	(9,617,593) (741,865) (1,855,031) (12,214,489)
	8,022,611 - 2,538,063 10,560,674
	Graphite Mining Exploration - Lithium Other Total $ $ $ $
	- - 1,328,326 1,328,326 - - 45,537 45,537 3,968 - 157,954 161,922 1,330,246 - (1,330,246) -
	1,334,214 - 201,571 1,535,785
	(4,868,301) (12,961) (1,715,233) (6,596,496) (756,288) (12,653) (1,239) (770,180) - - (15,586) (15,586) (261,249) (6,149) 736,975 469,577
	(5,885,839) (31,764) (995,083) (6,912,686)
	14,616,331 780,442 2,332,504 17,729,277

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Note 1: Includes R&D refund of $269,999, Australian Tax Office cashflow boost of $50,000, sale of scrap metal of $11,160 and services income of $92,501.

Note 2: *EBITAIX represents segment earnings before interest, taxes, depreciation, amortisation, impairment, and foreign currency gains/(losses).

No segment liabilities are disclosed because there is no measure of segment liabilities regularly reported to the chief operating decision maker.

3. Other income

ATO cashflow boost Interest received Services income Research and development grant Write back of rehabilitation provision Other Total other income 4. Expenses Loss includes the following specific expenses: 4 (a) Cost of sales Direct mine operating expense Depreciation expense Inventory write down to net realisable value	2020 2019 $ $ 50,000 - 15,324 45,537 92,501 - 269,999 147,954 127,743 - 12,119 13,968
	567,686 207,459
	2,177,349 2,689,661 459,180 405,200 447,087 245,149
Total cost of sales	3,083,616 3,340,010
4 (b) Administration expenses Mine administration expense: Depreciation Amortisation Employee benefits expense Mine consultancy Repairs and maintenance Other administration expenses	103,971 69,380 142,813 294,361 911,975 877,549 25,256 235,345 70,932 229,399 943,129 1,268,857
Total mine administration expenses	2,198,067 2,974,891
Corporate administration: Employee benefits expense Contracting & consulting expenses Rental expenses Legal expenses Depreciation Director fees Travel expenses Share registry, ASX Other administration expenses	1,075,711 1,253,499 193,334 119,301 36,417 86,274 36,063 21,450 135,909 1,239 237,500 270,054 123,933 312,094 124,264 187,648 397,071 336,002
Total corporate administration expenses	2,360,202 2,587,561
Total administration expenses	4,558,269 5,562,452
4 (c) Foreign currency (gain)/loss Foreign currency loss/(gain) – realised Foreign currencygain – unrealised	(17,859) 9,961 (275,615) (479,538)
Total foreign currency (gain)/loss	(293,474) (469,577)

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	2020	2019
	$	$
4 (d) Impairment losses
Trade and other receivables	274,647	-
Property, plant and equipment	404,998	-
Exploration and evaluation assets	1,311,424	-
Mine properties	4,296,000	-
Total impairment losses	6,287,069	-
5. Loss per share
	2020	2019
	$	$
(a) Basic earnings per share:
Loss from continuing operations attributable to	12,628,151	7,550,809
owners of Bass Metals Ltd used to calculate
basic earnings per share
(b) Diluted earnings per share:
Loss from continuing operations attributable to	12,628,151	7,550,809
owners of Bass Metals Ltd used to calculate
diluted earnings per share
Number of shares	2020	2019
Weighted average number of ordinary shares used as	2,809,874,584	2,638,056,957
a denominator in calculating basic and diluted
earnings per share
Loss and diluted loss per share (cents per share)	(0.45)	(0.29)
Options being potential shares are not considered dilutive and have not been used to		calculate diluted loss
per share.
6. Property, Plant and Equipment

6. Property, Plant and Equipment
	2020	2019
	$	$
Cost	7,067,393	6,979,221
Accumulated depreciation	(2,060,851)	(1,506,768)
Impairment loss	(404,998)	-
Balance at the end of the year	4,601,544	5,472,453
Movements
Balance at the beginning of the year	5,472,453	5,265,782
Additions	165,392	1,201,355
Reclassifications	(14,033)	(505,699)
Depreciation	(616,740)	(475,819)
Disposal	(530)	(13,166)
Impairment loss	(404,998)	-
Balance at the end of the year	4,601,544	5,472,453

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	2020	2019
	$	$
7. Right-Of-Use Asset
Cost	184,891	-
Accumulated depreciation	(82,319)	-
Balance at the end of the year	102,572	-
Movements
Balance at the beginning of the year	-	-
Additions	184,891	-
Depreciation	(82,319)	-
Balance at the end of the year	102,572	-
8. Exploration and Evaluation Assets
Cost	1,311,424	1,786,942
Impairment loss	(1,311,424)	-
Balance at the end of the year	-	1,786,942
Movements
Balance at the beginning of the year	1,786,942	894,146
Additions	426,900	892,796
Transfer to mine properties	(902,418)	-
Impairment loss	(1,311,424)	-
Balance at the end of the year	-	1,786,942
9. Mine Properties
Cost	6,895,990	5,994,799
Accumulated amortisation	(365,833)	(294,631)
Impairment loss	(4,296,000)	-
Balance at the end of the year	2,234,157	5,700,438
Movements
Balance at the beginning of the year	5,700,438	5,489,100
Transfer from mine properties	902,418
Reclassification of deferred mining expenditure	-	505,699
Amortisation	(72,699)	(294,361)
Impairment loss	(4,296,000)	-
Balance at the end of the year	2,234,157	5,700,438
10. Borrowings
Advances received	2020	2019
Current	$	$
Balance at the beginning of the period1	10,801	18,300
Funds received in advance2	116,500	-
Repayment of oversubscribed shares	-	(7,499)
Balance at the end of the year	**127,301 **	10,801

Note 1: Over subscription of capital raising funds received from investors during the reporting period, to be refunded. Note 2: Funds received in advance represent funds received in advance of the conditional placement prior to 30 June 2020.

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Short term borrowings	2020	2019
Current	$	$
Balance at the beginning of the period	401,619	-
Borrowings for mobile mining equipment	-	492,669
Repayments	(399,796)	(92,874)
Exchange rate movement	(1,823)	1,824
Convertible notes	5,352,019	-
Total short term borrowings	5,352,019	401,619
Total current borrowings	5,479,320	412,420
Convertible notes
Non-Current
Balance at the beginning of the period	1,122,160	-
Convertible notes	4,229,859	1,122,160
Transfer to current borrowings	(5,352,019)	-
Total non-current borrowings	-	1,122,160

On 28 June 2019, the Group announced a capital raising of up to $4 million (before issue costs) which was increased to $6.5m via a tranched issue of Convertible Notes to sophisticated and professional investors at an issue price of $0.008 each, with an interest rate of 15% per annum and a maturity date of 15 June 2021. Interest is payable half yearly in arrears and the interest may be paid in at the Company’s election by the issue of further Convertible Notes. Each Convertible Note coverts into one ordinary share in the Company and is secured over the assets of the Company. During the year, the Company received subscriptions for $4.6 million of the Convertible Notes which have been issued accordingly (being 580.6 million Convertible Notes at $0.008).

11. Issued Capital

The movement in ordinary shares during the financial period are as follows:

Balance at the beginning of the period Issued during the period Fair value of unlisted ESOP options exercised prior year Listed Options exercised in Aug 2018 at $0.025 Unlisted Options exercised in Sep 2018 at $0.025 Listed Options exercised in Sep 2018 at $0.025 Placement in Sep 2018 to two suppliers in lieu of payment at $0.025 Listed Options exercised in Sep 2018 at $0.025 Listed Options exercised in Nov 2018 at $0.025 Unlisted Options exercised in Nov 2018 at $0.01 Performance rights vested in Nov 2018 at nil (Fair value of $173,312) Placement to sophisticated investors in Dec 2018 at $0.0125 Listed Options exercised in Dec 2018 at $0.025 Placement to employees pursuant to the Bass Metals Incentive Scheme at nil (Fair value of $95,550) Listed Options exercised in Dec 2018 at $0.025 Placement in Mar 2019 at $0.0125 Placement to Directors at $0.0125 Share placement plan at $0.0025 Capital raising costs	2020 2019 2020 2019 No. shares No. shares $ $ 2,809,875,584 2,455,972,569 92,709,574 88,005,521
	- 10,686 2,400,000 60,000 1,000,000 25,000 10,875 272 2,218,310 55,458 20,400,000 510,000 31,493,492 787,337 900,000 9,000 24,800,000 173,312 214,771,284 2,684,641 66,334 1,658 7,350,000 95,550 64,000 1,600 44,428,720 555,359 4,000,000 50,000 671,800,151 1,679,500 (457,965) (315,820)
Balance at the end of the period	3,481,675,735 2,809,875,584 93,931,109 92,709,574

This announcement has been approved by the Company’s Disclosure Committee for release.

Angus Craig Company Secretary 30 September 2020

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