Avira Resources : AVW - Annual Report 30 June 2020

October 20, 2020 at 06:00 am

ANNUAL FINANCIAL REPORT

30 JUNE 2020

ACN 131 715 645

CORPORATE DIRECTORY 2020

DIRECTORS

David Deloub

Executive Director

David Wheeler

Non-Executive Chairman

Sonu Cheema

Non-Executive Director

COMPANY SECRETARY

Sonu Cheema

PRINCIPAL REGISTERED OFFICE

Avira Resources Limited Level 9, 330 Churchill Avenue Subiaco, WA 6008 Telephone: +61 8 6489 1600 Facsimile: +61 8 6489 1601

Email: reception@cicerocorporate.com.au

Web: www.aviraresourcesltd.com.au

STOCK EXCHANGE LISTING

Avira Resources Limited is listed on the Australian Securities Exchange Limited (ASX) under the code AVW.

SHARE REGISTRY

Computershare Investor Services Pty Ltd GPO Box 52, Melbourne, Victoria 3001 Telephone: 1300 552 270 (within Australia) +61 3 9415 4000 (outside Australia)

BANKERS

National Australia Bank

SOLICITORS TO THE COMPANY

Steinepries Paganin

Level 4, The Read Buildings,

16 Milligan Street,

Perth WA 6000 Australia

AUDITORS

Mazars Risk & Assurance Pty Limited

Level 12, 90 Arthur Street

North Sydney, NSW 2060

CORPORATE GOVERNANCE STATEMENT

The Corporate Governance Statement for Avira Resources Limited can be found at the 'About Us', Corporate Governance. www.aviraresourcesltd.com.au/corporate- governance

CONTENTS

CONTENTS
ANNUAL REPORT 2020
DIRECTOR'S REPORT	4
AUDITOR'S INDEPENDENCE DECLARATION	16
CONSOLIDATED FINANCIAL STATEMENTS	17
DIRECTORS DECLARATION	46
AUDITOR'S REPORT	47
ADDITIONAL STOCK EXCHANGE INFORMATION	51

DIRECTORS' REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020

OPERATIONS REPORT

Overview

The principal activities of the consolidated entity during the financial year included mineral exploration, identification and evaluation activities associated with mineral exploration. Over the course of the financial year the Company's focus moved from south east Queensland to the Pilbara region in Western Australia with the acquisition of two tenement packages in the Paterson Range province in north Western Australia. Subsequent to the granting of exploration licences and signing access agreements over the Mt Macpherson and Throssel Range projects. The Company subsequently commenced ground based and airborne exploration programs of both West Australian projects with results due in the fourth quarter of 2020.

Operating and financial review

(a) Review of operations

Over the financial year ending 30 June 2020 the Company completed follow up geo-chemical exploration programs over the Pyramid project in Northern Queensland and the acquisition of two tenement packages in the Paterson Range province of Western Australia (see Figure 1).

The addition of the Mt Macpherson and Throssel Range projects provides the Company with a significant opportunity to explore and develop these projects located in one of the most highly prospective and under-explored mineral provinces in Australia.

Throssel Range & Mt Macpherson

Both Projects are located in the Paterson Orogen, in the East Pilbara district of Western Australia. The tenements cover rocks of the Paterson Orogen, a Neoproterozoic metamorphosed and deformed sedimentary basin which hosts significant deposits of gold, copper, tungsten, cobalt and manganese.

Figure 1. Location of the Mt Macpherson and Throssel Range Projects

DIRECTORS' REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020

During the period the Company signed the Land Access and Mineral Exploration Agreements with the Western Deserts Land Corporation (Jamukurnu-Yapalikunu) on the 29th June 2020 for both projects. The exploration licence for Mount Macpherson (E45/5572) was subsequently granted on the 13 July 2020. The exploration licence for Throssel Range (E45/5567) was granted on 25 August 2020.

The Projects are situated in the Yeneena basin sedimentary rock formation that hosts both the Nifty and Maroochydore copper deposits.

Both projects border the Encounter Resources/IGO and the Metals X/IGO Joint Ventures with the south western boundary of Mount Macpherson in close proximity to the magnetic anomaly associated with Encounter's Aria Prospect, with an interpreted NE trending structural corridor projecting onto E45/5572 (see Figure 2).

Figure 2. Location of Avira's Paterson Projects in relation to major mines and emerging coper-gold

prospects showing committed exploration expenditures by major joint ventures in the region.

On completion of receipt of the exploration licences and access agreements the Company immediately mobilised an exploration field team to the area and engaged NRG Australia Limited to complete phases 1&2 of its planned exploration program including geological mapping, geo-chemical soil sampling and to conduct an airborne geophysics survey over the project area.

The soil sampling program is intended to develop a data set of precious, base metal and trace element pathfinder geochemistry in areas of outcrop and sub-outcrop areas. This database will complement the airborne EM data and provide insights as to whether any conductive bodies are associated with hydrothermal mineralisation.

DIRECTORS' REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020

Figure 3. GSWA Regolith landform map of the Paterson highlighting outcrop on AVW's Paterson Projects

Outcropping geology and shallow cover exists across both tenements. Significant areas of the Throssel Range and Mt Macpherson tenements are outcropping, with the remainder shallowly covered by aeolian dune fields, with potentially minor areas of shallow glaciogene sediments (Figure 3).

Shallow cover provides advantages in exploration as conventional soil geochemistry can be used, structures mapped and understood, and better resolution with deeper penetration of VTEM is expected. Preliminary exploration results are expected within the September quarter 2020.

Avira engaged NRG Australia Pty Ltd (NRG) to complete a high-resolution helicopter borne Xcitetm electromagnetic and magnetic survey over the project area. Upon grant of Mount Macpherson, NRG has mobilised to site and commenced operations. The survey being undertaken is a 200m spaced, low-level helicopter borne airborne electromagnetic (AEM) survey.

This survey will map conductive stratigraphy, provide some structural information, identify prospective conductors, map conductive regolith (e.g., Permian channels), and provide areas of interest for ground truthing and drilling.

Subject to regulatory and statutory approvals, the Company intends to drill the Paterson Projects pending receipt and interpretation of the geochemistry and geophysical data and the generation of any anomalies which warrant follow-up work. The timing of drilling will be contingent upon receipt of all statutory approvals including heritage clearances and satisfactory weather. The opportunity to mobilize and commence drilling early in the 4th quarter of 2020 is expected.

DIRECTORS' REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020

Pyramid Gold Project, Queensland

Over the course of year the Company completed its geo-chemical program on its exploration assets located in the East Pyramid Range in North Eastern Queensland. Indicative estimated costings of potential follow-on exploration programs were worked up and presented for due consideration as AVW continued to assess the value of additional exploration expenditure in the East Pyramid Range against other opportunities consistent with the Company's focus on creating value for its shareholders in the resource exploration space.

LEASE

NAME

AREA

AREA UNITS

RENEW

GRANT

EXPIRY

HOLDER

DATE

Paterson Range (WA)

E45/5572

Mount

Sub-Blocks

13-July-20

12-July-25

Mount

E45/5572

Macpherson

E45/5567

Throssel

Sub-Blocks

Under

Avira

E45/5567

Range

application

Resources

Mount Garnet (QLD)

ML 20066

Valetta -

1.5

Hectares

30-Jan--

30-Jun-21

AVIRA

EPSL00266113

Sugarbag

Pyramid (QLD)

Pyramid

Sub-Blocks

5-Aug-04

4-Aug-20

MGTM

EPSX00705113

EPM 12887

EPM 19554

Pyramid 3

Sub-Blocks

16-Dec-

15-Dec-22

MGTM

EPSX00705113

EPM 25154

Pyramid 2

Sub-Blocks

23-Feb-

22-Feb-23

AVIRA

EPSX00899513

Southern Queensland (QLD)

EPM 12834

Mount

Sub-Blocks

17-Dec-99

16-Dec-20

MGTM

EPSX00600613

Steadman

EPM 8402V

Yarrol

Sub-Blocks

13-Nov-91

12-Nov-20

MGTM

EPSX00600713

Table 1. Avira Resources Tenement Register

(b) Corporate & financial review.

On 29 November 2019, Avira Resources Limited completed the issue of 125,000,000 fully paid ordinary shares in the capital of the Company (Shares) and 25,000,000 unlisted options exercisable at $0.01 each on or before 15 November 2021. The issue of Shares and options was made in accordance with the share sale agreement entered into between the Company, Mount Macpherson Pty Ltd (Mount Macpherson) and the shareholders of Mount Macpherson (Shareholders), under which AVW agreed to acquire all of the issued capital of Mount Macpherson from the Shareholders. Mount Macpherson is the owner of the Mt Macpherson Project (comprised of tenement application E45/5572) (the Tenement) (and all mining information and licences associated with the Tenement) located within the Paterson Province of Western Australia.

DIRECTORS' REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020

Annual general meeting

The Company's Annual General Meeting was held on 22 November 2019 will all Resolutions tabled successfully passed including, the Adoption of the Remuneration Report, Re-election of David Deloub as a Director, Refreshment of the 10% Placement Capacity and Replacement of the Company Constitution (refer ASX announcement dated 22/11/19). The Company also adopted a new Share Trading Policy within its Corporate Governance Plan (refer ASX announcement dated 30/12/19) with in the fourth quarter of 2019.

General meetings

Avira Resources Limited held a general meeting on 3rd July 2020. All resolutions put to shareholders were passed.

Board changes

On the 17th March 2020 the Company announced the appointment of Mr Sonu Cheema as Non-executive Director of the Company. Mr Cheema has over 10 years' experience working with public and private companies in Australia and abroad. He currently serves as the Company Secretary of eMetals Limited (ASX: EMT), Yojee Limited (ASX: YOJ), Silver City Minerals Limited (ASX: SCI), Comet Resources Limited (ASX: CRL) and Technology Metals Australia Limited (ASX: TMT). He has completed a Bachelor of Commerce majoring in Accounting and is a CPA member. Mr Cheema's core competencies and key areas of focus include financial reporting, management and governance. Mr Cheema replaces Mr Maciej Rosiewicz who tendered his resignation from the Board to pursue other commercial interests.

Funding

On 3 July 2020, the Company announced that it had issued 250,000,000 fully paid ordinary shares at an issue price of $0.002 to raise $500,000 under a placement to sophisticated, and professional investors (Placement) in accordance with Resolution 5 of the Notice of General Meeting dated 3 July 2020.

On the 5 August 2020 the Company announced a capital raising initiative through a combination of an underwritten non-renounceable entitlement Option Offer and an Option Placement (together the Options Issue) as set out below:

A non-renounceable entitlement Option Offer of approximately 275,000,000 options to Eligible Shareholders, on the basis of one (1) option for every five (5) fully paid ordinary shares held at the Record Date at an issue price of $0.001 to raise approximately $275,000 (before costs). The Options are exercisable at $0.01 on or before 10 July 2022.
An Option Placement of 200,000,000 options at an issue price of $0.001 to raise $200,000 (before costs). The options are exercisable at $0.01 on or before 10 July 2022.

DIRECTORS' REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020

DIRECTORS' REPORT

Forward looking statements

This announcement contains forward-looking statements which are identified by words such as 'may', 'could', 'believes', 'estimates', 'targets', 'expects', or 'intends' and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the directors and our management. We cannot and do not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this prospectus will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. We have no intention to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by law. These forward looking statements are subject to various risk factors that could cause our actual results to differ materially from the results expressed or anticipated in these statements.

Competent Persons Statement

The information in this announcement that relates to Exploration Results is based on and fairly represents information and supporting documentation prepared by Mr Roland Gotthard. Mr Roland Gotthard is a consultant geologist for AVW and a member of the Australian Institute of Mining and Metallurgy. Mr Roland Gotthard has sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this announcement and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ("JORC Code"). Mr Roland Gotthard consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

The Directors of Avira Resources Limited submit herewith the annual financial report of the company for the financial year ended 30 June 2020. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

DIRECTORS

The names of the Directors in office at any time during or since the end of the financial year are:

The directors of Avira Resources Limited and its controlled entities (the "Group") in office during the full year, and until the date of this Report are set out below. Directors were in office for this entire period unless otherwise stated.

Name	Particulars
David Wheeler	Non-Executive Chairman, appointed on 13 September
	2018
David Ross De Loub	Executive Director, appointed on 30 November 2017
Maciej Rosiewicz	Non-Executive Director, resigned 17 March 2020
Sonu Cheema	Non-Executive Director2 and Company Secretary1,
	appointed on 28 November 20171 and 17 March 20202
PRINCIPAL ACTIVITIES

The principal activities of the company and its consolidated entities during the financial year included exploration and evaluation activities. There were no significant changes in the nature of the principal activities during the year.

DIVIDENDS

There were no dividends paid or declared by the consolidated entity during the financial year.

DIRECTORS' REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020

REVIEW OF OPERATIONS

Please refer to Operations Report located on pages 4 to 9.

EVENTS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR

On 3 July 2020, the Company advised that it had issued 250,000,000 fully paid ordinary shares at an issue price of $0.002 to raise $500,000 under a placement to sophisticated, and professional investors (Placement) in accordance with Resolution 5 of the Notice of General Meeting dated 3 July 2020.

On 5 August 2020, a capital raising was announced through a combination of an underwritten non-renounceable entitlement option offer and option placement (together the Options Issue) as set out below:

A non-renounceable entitlement Option Offer of approximately 275,000,000 options to Eligible Shareholders, on the basis of one (1) option for every five (5) fully paid ordinary shares held at the Record Date at an issue price of $0.001 to raise approximately $275,000 (before costs). The Options are exercisable at $0.01 on or before 10 July 2022.
An option placement of 200,000,000 options at an issue price of $0.001 to raise $200,000 (before costs). The options are exercisable at $0.01 on or before 10 July 2022.

On 20 August 2020 the Company signed a binding Term Sheet with Minotaur Exploration Limited (ASX: MEP) for the sale of 100% of its Pyramid Project comprising three tenements (EPM 12887, 19554 and 25154).

Key terms of the sale included in the Binding Term Sheet are as follows;

An option fee of $25,000 to secure a 60-day exclusivity period to conduct and complete due diligence activities in relation to the assets. The option fee is due and payable on signing of the Term Sheet.
$150,000 (including the Option fee paid) paid in cash and $150,000 issued in MEP ordinary fully paid shares (price based on 5-day VWAP for 5 days prior to the Completion date).
$150,000 in cash on publication of a JORC resource of at least 25,000 oz Au at a grade not less than 1.8 g/t or, if within 24 months of Completion MEP has not published a JORC Resource of at least 25,000 oz Au, MEP is required to issue the Company with ordinary fully paid share to the value of $150,000 based upon a 5-day VWAP.
A 1.5% NSR (Au only) in relation to the first 50,000oz of AU produced from the assets.

On 25 August 2020, the Company was granted Exploration Licence E45/5567 over its Throssel Range tenement package. In addition, the Company has also recently completed the first phase of its exploration program over the Mount Macpherson project including; conventional soil geochemistry, rock-chip sampling, geological mapping and an airborne geophysics survey over both Mount Macpherson and Throssel project areas.

On 1 September 2020, the Company signed a Term Sheet with EMX Royalty Corp (TSX: EMX) for the sale of 100% of its remaining Queensland exploration projects comprising two tenements; Yarrol (EPM 8402) and Mt Steadman (EPM12834.

Key terms of the sale included in the Term Sheet are as follows;

DIRECTORS' REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020

An option fee of A$5,000 to secure a 60-day exclusivity period to conduct and complete due diligence activities in relation to the assets. The option fee is due and payable on signing of the Term Sheet.
A$60,000 (including the Option fee paid) paid in cash on signing of the Sale and Purchase Agreement.

There has not been any other matter or circumstance occurring subsequent to the end of the financial period that has significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations, or the state of affairs of the Group in future financial years.

LIKELY FUTURE DEVELOPMENTS

Disclosure of information regarding the likely developments in the operations of the consolidated entity in future financial years and the expected results of those operations is likely to result in unreasonable prejudice to the consolidated entity. Accordingly, this information has not been disclosed in this report.

ENVIRONMENTAL REGULATIONS

The operations and proposed activities of the consolidated entity are subject to laws and regulations concerning the environment. As with most exploration projects and mining

operations, the consolidated entity's activities are expected to have an impact on the environment. It is the consolidated entity's intention to conduct its activities to the required

standard of environmental obligation, including compliance with all applicable environmental

laws. Mining operations may have previously been conducted on some of the Company's

project areas and old workings including tailings dumps may remain from these operations. There may be a liability to rehabilitate these areas, details in relation to the abandonment and restoration obligation are included in Note 1(I) of the Notes to the financial statements.

INDEMNIFICATION OF OFFICERS AND AUDITORS

The Company has insured all the Directors of Avira Resources Limited and its controlled entities against liabilities incurred while performing duties as Directors or Officers to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits the disclosure of the nature of the liabilities covered and amount the amount of the premium paid. The consolidated entity has not indemnified its auditor.

INFORMATION ON DIRECTORS AND SENIOR MANAGEMENT:

Mr David Wheeler - Non-Executive Chairman

Mr Wheeler has more than 30 years of Executive Management, Directorship, and Corporate Advisory experience. He is a foundation Director and Partner of Pathways Corporate a boutique Corporate Advisory firm that undertakes assignments on behalf of family offices, private clients, and ASX listed companies. David has successfully engaged in business projects in the USA, UK, Europe, NZ, China, Malaysia, Singapore and the Middle East. David is a Fellow of the Australian Institute of Company Directors and serves on public and private company boards currently holding a number of Directorships and Advisory positions in Australian ASX listed companies.

DIRECTORS' REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020

Mr David Deloub - Executive Director

Mr Deloub has over 25 years of experience in the finance and corporate sectors and holds a degree in economics and post graduate qualifications in banking and finance. Mr Deloub was a director of Patersons Capital Partners, a boutique advisory firm focusing on strategic and financial advice to ASX listed small cap companies. He has considerable corporate finance, business development, management and operational experience in Australia, the United States and Africa.

Mr Sonu Cheema - Non-Executive Director and Company Secretary

Mr Cheema has over 10 years' experience working with public and private companies in Australia and abroad. He currently serves as the Company Secretary of eMetals Limited (ASX: EMT), Yojee Limited (ASX: YOJ), Silver City Minerals Limited (ASX: SCI), Comet Resources Limited (ASX: CRL) and Technology Metals Australia Limited (ASX: TMT). He has completed a Bachelor of Commerce majoring in Accounting and is a CPA member.

DIRECTORS' MEETINGS

The following table sets out the number of directors' meetings held during the financial year and the number of meetings attended by each director (while they were a director).

Directors	Directors' meeting	Attended
	eligible to attend
David Ross De Loub	4	4

Sonu Cheema	1	1

Maciej Rosiewicz	2	2

David Wheeler	4	4

REMUNERATION OF DIRECTORS AND KEY MANAGEMENT PERSONNEL

Information about the remuneration of directors and key management personnel are set out in the following tables.

Details of key management personnel

The directors and other members of key management personnel of the Group during the year were:

Name	Particulars
David Wheeler	Non-Executive Chairman, appointed on 13 September 2018
David Ross De Loub	Executive Director, appointed on 30 November 2017
Maciej Rosiewicz	Non-Executive Director, resigned 17 March 2020
Sonu Cheema	Non-Executive Director2 and Company Secretary1, appointed on 28
	November 20171 and 17 March 20202

DIRECTORS' REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020

(a) Key management personnel compensation

	Short-term	Post-		Long-	Share-
2020	employee	employment		term	based
	benefit	benefit		benefits	payments
	Cash salary	Superannuati	Termination	Long	Options	Total
	and fees	on	benefit	Service
				Leave
	$	$	$	$	$	$
Directors
David De Loub	94,125	6,270	-	-	-	100,395
Maciej Rosiewicz	42,750	-	-	-	-	42,750
David Wheeler	54,065	-	-	-	-	54,065
Sonu Cheema1	120,000	-	-	-	-	120,000
	310,940	6270	-	-	-	317,209

1The Group entered into an agreement with Cicero Corporate Services Pty Ltd (an entity in which Sonu Cheema is shareholder and director) (Cicero) defining the terms of engagement for the provision of administration services by Cicero as a contractor to the Group. Cicero will provide book-keeping, company secretarial and administration services to the Company for a monthly fee of $10,000 plus GST.

	Short-term	Post-		Long-	Share-
2019	employee	employment		term	based
	benefit	benefit		benefits	payments
	Cash	Superannuation	Termination	Long	Options	Total
	salary and		benefit	Service
	fees			Leave
	$	$	$	$	$	$
Directors
David De Loub	91,731	6,270	-	-	-	98,001
Maciej Rosiewicz	33,727	-	-	-	-	33,727
David Wheeler	46,119	-	-	-	-	46,119
	171,577	6,270	-	-	-	177,847
Other key
management
personnel
Sonu Cheema1	120,000	-	-	-	-	120,000
Total	291,577	6,270	-	-	-	297,847

(b) Executive contracts

Remuneration arrangements for Key Management Personnel are formalised in employment agreements or service contracts. The key terms of the executive's agreements/contracts are:

Name	Contract duration	Notice period	Notice period from the
		from	employee/contractor
		Company
Executive Directors
David De Loub	3 year Service Agreement	3 months	3 months
	commencing 15th Jan 2018

The Group entered into an agreement with Cicero Corporate Services Pty Ltd (an entity in which Sonu Cheema is shareholder and director) (Cicero) defining the terms of

DIRECTORS' REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020

engagement for the provision of administration services by Cicero as a contractor to the Group. Cicero will provide book-keeping, company secretarial and administration services to the Company for a monthly fee of $10,000 plus GST.

Share-basedcompensation
1. Issue of shares

There were no shares issued as part of compensation during the year ended 30 June 2020. No ordinary shares of Avira Resources Limited were issued during the year end 30 June 2020 on the exercise of options granted under the Avira Resources Limited's Employee Option Plan. No further shares have been issued since that date.

Key management personnel equity holdings Fully paid ordinary shares of Avira Resources Limited

2020	Balance at	Received	Net other	Balance at the
	the start of	during the year	change	end of the year
	the year	on exercise of	No.	No.
	No.	options
		No.
Executive Directors
David Ross De Loub	-	-	-	-
(Direct)
Non-Executive Directors
David Wheeler (Direct)	-	-	-	-
David Wheeler (Indirect)	-	-	-	-
Sonu Cheema (Direct)	5,000,000	-	-	5,000,000
Sonu Cheema (Indirect)	-	-	-	-
Maciej Rosiewicz (Direct)	-	-	-	-
Maciej Rosiewicz	-	-	-	-
(Indirect)

TRADING IN THE COMPANY'S SECURITIES BY DIRECTORS, OFFICERS AND STAFF

Upon listing on the ASX, the Board adopted a share trading policy which applies to all directors, officers and employees of Avira Resources Limited and its subsidiary companies. The policy was set up in order to avoid 'insider trading.' The trading policy restricts employees, directors and officers from trading in AVW securities during certain 'prohibited periods.' A full copy of the policy can be found at www.aviraresourcesltd.com.au

NON-AUDIT SERVICES

During the year ended 30 June 2020, was $9,700 exc GST paid, (2019: $15,000 exc GST) for fees earned by the auditors for non-audit services in relation to taxation compliance.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied for leave of Court to bring proceedings on behalf of the consolidated entity or intervene in any proceedings to which the consolidated entity is a party for the purpose of taking responsibility on behalf of the consolidated entity for all or any part of these proceedings. The consolidated entity was not party to any such proceedings during the year.

DIRECTORS' REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2020

AUDITOR'S INDEPENDENCE DECLARATION

The auditor's independence declaration is included on page 16 of the financial report. This directors' report has been made and signed in accordance with a resolution of the directors made pursuant to s.298(2) of the Corporations Act 2001.

On behalf of the Directors

David Deloub

Executive Director

Dated: 30 September 2020

AUDITOR'S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

I declare that, to the best of my knowledge and belief during the year ended 30 June 2020, there have been:

no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.

MAZARS RISK & ASSURANCE PTY LIMITED

Rose Megale

Director

Sydney, 30 September 2020

LEVEL 12, 90 ARTHUR STREET, NORTH SYDNEY NSW 2060 - PO BOX 1994, NORTH SYDNEY NSW 2059 TEL: +61 2 9922 1166 - FAX: +61 2 9922 2044 - www.mazars.com.au

EMAIL:audit@mazars.com.au

MAZARS RISK & ASSURANCE PTY LIMITED - ABN: 39 151 805 275

Liability limited by a scheme approved under Professional Standards Legislation

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 30 June 2020

Note

Continuing operations Other Revenue Gross gain

Employee benefits expense
Impairment gain/(losses)
Interest expense
Administration expense
Share options expense	21
Other expenses	4
Loss before tax
Income tax expense/(benefit)	5
Loss for the year

Loss for the year is attributable to:

Owners of the parent Non-controlling interest

From continuing operations
Basic (cents per share)	15
Diluted (cents per share)	15

Consolidated Consolidated

20202019

6,0003,159

(193,085)(198,880)

(322,918)(445,373)

-(15,189)

(192,539)(356,554)

(108,623)(172,825)

(811,164)(1,185,660)

(792,321)(1,047,205)

(18,844)(138,455)

(811,164)(1,185,660)

(0.073)	(0.13)
(0.073)	(0.13)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE FINANCIAL YEAR ENDED 30 June 2020

	Note
Current assets

Cash and cash equivalents	18(a)
Other receivables	6
Other financial asset	7
Total current assets

Non-current assets
Other financial assets	7
Exploration and evaluation	8
expenditure
Plant & equipment	9
Total non-current assets
Total assets
Total liabilities
Trade and other payables	10
Unsecured borrowings	11
Total current liabilities
Total liabilities
Net assets/(liabilities)
Equity
Issued capital	12(a)
Reserves	13
Retained earnings/(losses)	14

Equity attributable to owners of the parent

Non-controlling interest

Total equity

Consolidated	Consolidated
2020	2019
$	$
747,008	866,565
82	9,878
-	-

747,090	876,443

2,871	2,869
704,762	442,962
-	-

707,632	445,831

1,454,722	1,322,274

314,817	100,006
3,645	3,645

318,462	103,651

318,462	103,651


318,462	103,651

1,136,260	1,218,623

31,181,11430,464,114

2,201,3842,189,583

(31,205,594)(30,413,273)

2,176,9042,240,424

(1,040,645)(1,021,801)

1,136,2601,218,623

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

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

CONSOLIDATED STATEMENT OF CHANGES OF EQUITY

FOR THE FINANCIAL YEAR ENDED 30 June 2020

		Fully paid	Retained	Reserves	Non-	Total
		ordinary	earnings/		controlling
		shares	(losses)		interest
		$	$	$	$	$
Balance at 1 July 2019	30,464,114	(30,413,273)	2,189,583	(1,021,801)	1,218,623
(Loss) for the period	-	(792,321)	11,801	(18,844)	(799,364)
Issuance for the year	250,000	-	-	-	250,000
Shares not yet issued	467,000	-	-	-	467,000

Balance at 30 June 2020	31,181,114	31,205,594	2,201,384	(1,040,645)	1,136,260

		Fully paid	Retained	Reserves	Non-	Total
		ordinary	earnings/		controlling
		shares	(losses)		interest
		$	$	$	$	$
Balance at 1 July 2018	28,710,553	(29,366,068)	2,189,583	(883,346)	650,722
(Loss) for the period	-	(1,047,205)	-	(138,455)	(1,185,660)
Issuance for the year	1,346,000				1,346,000
Conversion of loan to equity	519,000	-	-	-	519,000
Issue of ordinary shares	(111,439)	-	-	-	(111,439)

Balance at 30 June 2019	30,464,114	(30,413,273)	2,189,583	(1,021,801)	1,218,623

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

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 30 June 2020

	Note
Cash flows from operating

activities
Payments to suppliers and
employees
Interest received
Net cash used in operating
activities
	18(b)
Cash flows from investing
activities
Payments for exploration costs
Net cash used in investing
activities
Cash flows from financing
activities
Proceeds from issues of equity
securities
Proceeds from borrowings -
unsecured
Capital raising cost
Proceeds from equity securities to
be issued
Interest paid
Net cash provided by financing
activities
Net (decrease)/increase in cash
and cash equivalents
Cash at the beginning of the
financial year
Cash at the end of the financial
year	18(a)

Consolidated	Consolidated
2020	2019
$	$
(592,559)	(770,828)
6,000	3,159
(586,559)	(767,669)
-	(5,283)
-	(5,283)
-	1,346,000
-	3,645
-	(111,439)
467,000	-
-	-
467,000	1,238,206
(119,557)	465,254
866,565	401,311
747,008	866,565

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

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

1. Summary of significant accounting policies

The financial report is a general purpose financial report which has been prepared in accordance with the Corporations Act 2001, Accounting Standards and Interpretations, and complies with other requirements of the law.

Accounting Standards include Australian equivalents to International Financial Reporting Standards ('A-IFRS'). Compliance with A-IFRS ensures that the financial statements and notes of the group comply with international financial reporting standards. These financial statements are for the consolidated entity consisting of Avira Resources Limited (the Company) and its subsidiaries (the Group).

Basis of preparation
- The financial report has been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. Historical cost is generally based on the fair values of the consideration given in exchange for goods and services. All amounts are presented in Australian dollars, unless otherwise noted.
  In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
- Level 3 inputs are unobservable inputs for the asset or liability.

Going concern

The full-year financial statements are prepared on a going concern basis, which contemplates the continuation of normal business activity and the realisation of assets and liabilities in the normal course of business. As at 30 June 2020 the consolidated entity incurred a net loss after tax of $802,510 and cash outflows from operating activities of $586,557. The ability of the Group to continue as a going concern and to pay their debts as and when they fall due is dependent in the Group's ability to raise additional funds through either debt financing, capital raising arrangements, refinancing options or asset sale.

The Group has a solid history of obtaining support from investors, including in very difficult financial markets. During the year ended 30 June 2020, the Group has successfully completed the following capital raising initiatives:

Avira Resources Limited announced the completion of a share placement to sophisticated investors of 250,000,000 fully paid ordinary shares at an issue price of $0.002 per share, to raise $500,000 before costs. This was settled on 3 July 2020.

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

Having regard to the above, the Directors have a reasonable expectation that the entity will have adequate resources to continue operating for the foreseeable future. For this reason they continue to adopt the going concern basis in preparation of the accounts.

Critical accounting estimates and judgements

The preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements, are:

Estimated useful lives of assets

The estimation of the useful lives of assets has been based on historical experience as well as manufacturers' warranties. In addition, the condition of assets is assessed at least once per year and considered against the remaining useful life. Adjustments to useful lives are made when considered necessary.

Impairment of capitalised exploration expenditure

The Group continues to monitor the capitalised exploration expenditure for indicators of impairment by comparing the assets' carrying value to their estimated fair values. The fair values are determined by independent professional valuers using recognised valuation techniques, including the yield method and the discounted cash flow method. The determination of the fair values require the use of estimates such as future cash flows from the assets and discount rates applicable to those assets. The estimates are based on local market conditions existing as at the reporting date. Refer to Note 8.

Allowance for amounts due from subsidiary

The provision policy for doubtful debts of the Group is based on the ageing analysis and management's continuous evaluation of the recoverability of the outstanding receivables. In assessing the ultimate realisation of these receivables, management considers, among other factors, the creditworthiness and the past collection history of the subsidiary. If the financial conditions of the subsidiary were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

Coronavirus (COVID-19) pandemic

Judgement has been exercised in considering the impacts that the Coronavirus (COVID-

pandemic has had, or may have, on the company based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the company operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the company unfavorably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Avira Resources Limited (''company'' or ''parent entity'') as at 30 June 2020 and entities controlled by the company for the year then ended. Avira Resources Limited and its subsidiaries together are referred to in this financial report as the Group or the consolidated entity.
Subsidiaries are all entities over which the group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. The Group applies a policy of treating transactions with non-controlling interests as transactions with parties external to the Group. Disposals to non-controlling interests result in gains and losses for the Group that are recorded in the statement of comprehensive income. Purchases from non-controlling interests result in goodwill, being the difference between any consideration paid and the relevant share acquired of the carrying value of identifiable net assets of the subsidiary.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated income statement, statement of comprehensive income, statement of changes in equity and statement of financial position respectively. Investments in subsidiaries are accounted for at cost in the individual financial statements of the Company.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable.
The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Group's activities as described below. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.
Interest income
Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount.

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

Government Grants

Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match them with the costs that they are intended to compensate.

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 period. 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 periods 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 balance sheet liability method. Temporary differences are differences between the tax base of an asset or liability and its carrying amount in the balance sheet. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes.
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. Furthermore, a deferred tax liability is not recognised in relation to taxable temporary differences arising from the initial recognition of goodwill.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(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 tax for the period
Current and deferred tax is recognised as an expense or income in the income statement, 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.
Cash and cash equivalents
Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash, which are

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

subject to an insignificant risk of changes in value and have a maturity of three months or less at the date of acquisition.

Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Consolidated Entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, it's carrying value is written off.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are carried at amortised cost using the effective interest rate method. Gains and losses are recognised in profit or loss when the asset is derecognised or impaired.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Consolidated Entity's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.
Impairment of non-financial assets

Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

changes in circumstances indicate that they might be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.

Recoverable amount is the higher of an asset's fair value less costs of disposal and value- in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.

Exploration and evaluation of assets
Exploration and evaluation expenditure in relation to each separate area of interest are recognised as an exploration asset in the year in which they are incurred where the following conditions are satisfied:
1. The rights to tenure of the area of interest are current; and
2. At least one of the following conditions is also met:
3. 1. the exploration and evaluation expenditures are expected to be recouped through successful development and exploitation of the area of interest, or alternatively, by its sale; and
  2. Exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the areas of interest are continuing.

Exploration and evaluation assets are initially measured at cost and include acquisition rights to explore, topographical, geological, geochemical and geophysical studies, exploratory drilling, trenching, sampling and activities in relation to evaluating the technical feasibility and commercial viability of extracting a mineral resource. General and administrative costs are allocated to, and included in, the cost of an exploration and evaluation asset, but only to the extent that those costs can be related directly to operational activities in the area of interest to which the exploration and evaluation asset relates. (Refer to Note 1(j)). Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation of asset may exceed its recoverable amount. Indicators of impairment on the capitalised exploration and evaluation assets include, but are not limited to:

The period for which the entity has the right to explore in the specific areas has expired during the period or will expire in the near future, and is not expected to be renewed;
Substantive expenditure of further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned;

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

- Exploration for and evaluation of mineral resource in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area; and,
- Sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale.
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.
The fair value of the liability portion of a convertible bond is determined using a market interest rate for an equivalent non-convertible bond. This amount is recorded as a liability on an amortised cost basis until extinguished on conversion or maturity of the bonds. The remainder of the proceeds is allocated to the conversion option. This is recognised and included in shareholders' equity, net of income tax effects.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs.
Where the terms of a financial liability are renegotiated and the entity issues equity instruments to a creditor to extinguish all or part of the liability (debt for equity swap), a gain or loss is recognised in profit or loss, which is measured as the difference between the carrying amount of the financial liability and the fair value of the equity instruments issued.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. Provisions are not recognised for future operating losses.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
Site Restoration
A provision for restoration and rehabilitation is recognised when there is a present obligation as a result of exploration and development activities undertaken, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the provision can be measured reliably. The Group records the estimated cost of legal and constructive obligations to restore operating locations in the period in which the obligation is incurred. The nature of restoration activities includes dismantling and removing structures, dismantling operating facilities, closure of plant and restoration, reclamation and revegetation of affected areas.
Additional disturbances or changes in rehabilitation costs will be recognised as additions or changes to the corresponding asset and rehabilitation liability when incurred.
The provision for future restoration costs is the best estimate of the expenditure required to settle the restoration obligation at the reporting date based on current legal and other requirements and technology. When the liability is initially recorded, the estimated cost is capitalised by increasing the carrying amount of the related mining assets. The carrying amount capitalised is amortised over the life of the related asset.
Employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave, and sick leave when it is probable that settlement will be required and they are capable of being measured reliably. Liabilities recognised in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement.
Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the Group in respect of services provided by employees up to reporting date.

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

Termination benefit

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.

(m) Share-based payments arrangements

Equity-settledshare-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settledshare-based transactions are set out in note 21.

The fair value determined at the grant date of the equity-settledshare-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.

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. Incremental costs directly attributable to the issue of new shares or options for the acquisition of a business are not included in the cost of the acquisition as part of the purchase consideration.
If the entity reacquires its own equity instruments, for example as the result of a share buy-back, those instruments are deducted from equity and the associated shares are cancelled. No gain or loss is recognised in the profit or loss and the consideration paid including any directly attributable incremental costs (net of income taxes) is recognised directly in equity.
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
1. Where the amount of GST incurred is not recoverable from the taxation authority. It is recognised as part of the cost of acquisition of an asset or as part of an item of expense. Or
2. For receivables and payables which are recognised inclusive of GST.

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

All cash outflows in respect of GST, including payments to suppliers and employees, payments for exploration and evaluation, property, plant and equipment, and payments

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

for exploration inventory are included in payments to suppliers and employees from operation activities.

All cash inflows in respect of GST, including receipts from customers and receipts of GST paid by the company and subsequently refunded by taxation authorities are included in receipts from customers from operating activities.

All cash flows from investing activities and from financing activities are net of GST as all associated GST cash flows are included in operating activities.

(p) New accounting standards and interpretations

The accounting policies adopted are consistent with those of the previous financial years except the following which the Group adopted from 1 July 2019:

- AASB 16 Leases
  AASB 16 will be applied as of 1 July 2019, using what is known as the "modified retrospective" transition method, under which a liability is recognized at the transition date for an amount equal to the present value of the residual lease payments alone, offset against a right- of- use asset adjusted for the amount of prepaid lease payments or within accrued expenses; all the impacts of the transition will be deducted from equity. The standard provides for various simplification measures during the transition phase such as measures allowing the Group to exclude leases with a residual term of less than twelve months, exclude leases of low- value assets, continue applying the same treatment to leases that qualify as finance leases under AASB 17, and not capitalize costs directly related to signing leases. The adoption of this standard did not have any impact on the current period or any prior period and is not likely to affect future periods.
Comparative figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. Where the Group has retrospectively applied an accounting policy, made a retrospective restatement of items in the financial statements or reclassified items in its financial statements, an additional statement of financial position as at the beginning of the earliest comparative period will be disclosed.

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

2. Financial risk management

The Group's activities expose it to a variety of financial risks: market risk, credit risk, currency risk and liquidity risk. The Group's overall risk management program focuses on the

unpredictability of financial markets and seeks to minimise potential adverse effect on the financial performance of the Group.

The Group hold the following financial instruments:

	Consolidated	Consolidated
	2020	2019
	$	$
Financial assets
Cash and cash equivalents	747,008	866,565
Other receivables	82	-
	747,090	866,565
	Consolidated	Consolidated
	2020	2019
	$	$
Financial liabilities
Trade and other payables	317,817	100,006
Unsecured borrowings (Note 13)	3,645	3,645
	318,462	103,651

(a) Market risk

Foreign exchange risk

Group sensitivity - foreign exchange risk

The consolidated entity has no foreign currency exposure risk as at reporting date.

Interest rate risk

The Group's exposure to interest rate risk is summarised in the table below:

		Weighted				Non interest			Floating		Fixed	Total
		average				bearing			interest		interest rate
		effective interest
		rate
	2020		2020		2020		2020		2020
	%		$		$		$		$
Financial assets
Bank	1.6%		747,008		-	-		747,008
Financial liabilities
Borrowings	11.3%		-		-	3,645		3,645

		Weighted				Non interest			Floating		Fixed	Total
		average				bearing			interest		interest rate
		effective interest
		rate
	2019			2019		2019		2019		2019
	%			$		$		$		$
Financial assets
Bank	1.6%			865,565		-	-		865,565
Financial liabilities
Borrowings	11.3%			-		-	3,645		3,645

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

Group sensitivity - interest rate risk

The Group has no material exposure to interest rate sensitivity for financial years ended 2020 and 2019.

(b) Credit risk

Credit risk is managed on a group basis and reviewed regularly. Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, including outstanding receivables and committed transactions. As at 30 June 2020 there were no trade receivable balances.

Credit risk from balances with banks and financial institutions is regularly monitored and reviewed by The Board. No material exposure is considered to exist as the Group's policy is to invest its cash and cash equivalents with financial institutions having a credit rating of at least AA.

	Consolidated	Consolidated
	2020	2019
	$	$
Cash and bank balances:
- Continuing operations	747,008	866,565
	747,008	866,565

During the period and prior period, the Group was not exposed to any foreign currency risk.

(d) Liquidity risk

Liquidity risk arises from the possibility that there will be sufficient funds available to make payment as and when required. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows.

The group has assessed the impact of the Covid-19 pandemic on liquidity and has determined that the pandemic does not present a material risk to the liquidity of the group.

Maturities of financial liabilities

The tables below analyses the Group's and the parent entity's financial liabilities into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

	30 June		Less than 6		6-12		Between	Between	Over 5	Total

	2020		months		months		1 & 2	2 & 5	years
			$		$		years	years	$	$
							$	$
Non interest
bearing
Trade and	314,817	-	-	-		-	314,817
other
payables
Fixed rate
Borrowings -	3,645	-	-	-		-	3,645
unsecured

	30 June		Less than 6		6-12		Between	Between	Over 5	Total
	2019		months		months		1 & 2	2 & 5	years
			$		$		years	years	$	$
							$	$
Non interest
bearing
Trade and	100,006	-	-	-		-	100,006
other
payables
Fixed rate
Borrowings -	3,645	-	-	-		-	3,645
unsecured

(e) Fair value of financial instruments

The directors have determined the fair value of its available-for-sale equity securities held using quoted prices on an active market. The fair value of convertible notes is classified as Level 3 under the accounting standards due to there being one or more unobservable inputs (see Note 7).

		Consolidated		Consolidated
	2020			2019
	$			$
3. Investment income
Interest revenue	-			3,159
Others	6,000			-
	6,000			3,159

		Consolidated		Consolidated
	2020		2019
4. Other expenses	$		$

Travel expense	-		295
Legal and professional expense	-		160,815
Other expenses	108,623		11,715

	431,541		172,825

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

	Consolidated		Consolidated
	2020	2019
	$	$
5. Income taxes
Tax expense/(income) comprises:
Current tax expense/(income) in respect
of the current year	-		-

The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense in the financial statements as follows:

Loss before income tax	(811,081)		(1,185,660)
	Income tax expense calculated at 30%	(243,324)	(355,698)
	Effect of amounts that are not
	deductible (taxable) in determining
	taxable profit:
Non-deductible/(taxable) items	95,744		133,612
		(147,580)	(222,086)
Tax losses and temporary difference not
	recognised	147,580		222,086
		-	-
			Consolidated		Consolidated
		2020	2019
		$	$
(b)	Unused tax losses for which no
	deferred tax assets has been recognised	32,246,816		31,424,418
	Potential tax benefit at 30%	9,674,045	9,427,325
6.	Other receivables		Consolidated		Consolidated
		2020	2019
		$	$
Current
	Prepayments and deposits		82		9,878
		82	9,878
7.	Other financial assets		Consolidated		Consolidated
		2020	2019
				$
Current
	Fair Value through profit or loss financial
	asset:
Quoted Shares	-	-
Non-Current
Available for sale investments carried at
fair value:
Quoted shares		2,871		2,869

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

	Consolidated		Consolidated
	2020	2019
	$	$
8. Exploration and evaluation expenditure
Balance at the beginning of the year	442,962	883,053
Tenement acquisition	250,000	-
Tenement write-back/ (impairment)	(322,918)	(445,373)
Expenditure incurred during the year	334,718	5,282
Reclassified as held for sale (Note 8)	-		-
Balance at the end of the year	704,762		442,962

Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The ultimate recoverability of exploration and evaluation expenditure is dependent upon the maintenance of minimum spend requirements to ensure that the exploration licences remain in good standing, the successful development and exploitation of the area of interest, or alternatively, by its sale.

During the year ended 30 June 2020, the Group has recognised impairment loss of $322,918

(2019: $445,373) based on management's best estimate of the recoverable value of

tenements using market comparison approach.

9. Plant and Equipment
		Office	Mine infrastructure	Motor vehicle	Total
		equipment	$	$	$
		$
At 30 June 2020
Cost	-	-	-	-
Accumulated
depreciation	-	-	-	-
Disposal of assets	-	-	-	-

Reclassified as held for
sale (Note 8)	-	-	-	-
Net book value	-	-	-	-
Year ended 30 June 2019
Balance at the beginning
of the financial year:	528,846	-	-	528,846
Accumulated
depreciation	(466,304)	-	-	(466,304)
Disposal of assets	-	-	-	-
Reclassified as held for
sale (Note 8)	(62,542)	-	-	(62,542)
Balance at the end of the
financial year		-	-	-	-

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

	Consolidated		Consolidated
	2020	2019
	$	$
10.Trade and other payables

Trade and other payables	264,842	84,277
Accrued expenses	49,975	15,729

	314,817	100,006

	Consolidated		Consolidated
	2020	2019
11. Unsecured borrowings	$	$
Current

Unsecured loan	3,645		3,645
	3,645	3,645
	Consolidated		Consolidated
12. Issued capital	2020		2019
(a) Share capital	$		$
1,125,000,000 fully paid ordinary shares
(2019: 1,000,000,000)	31,181,114			30,464,114
	31,181,114		30,464,114
	No. of shares		No. of shares
(b) Movements in ordinary share capital
Opening balance	1,000,000,000		378,333,333
Issuance of shares at $0.002/ share	125,000,000		-
Issuance of shares at $0.003/ share	-		448,666,667
Conversion of loan to equity at	-		173,000,000
$0.003/share
Total	1,125,000,000			1,000,000,000

Capital risk management

The group's objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal 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 paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. Consistent with others in the industry, the group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including 'borrowings' and 'trade and other payables' as shown in the statement of financial position) less cash and cash equivalents. Total capital is calculated as 'equity' as shown in the statement of financial position (including non -controlling interests) plus net debt. The gearing ratios at 30 June 2020 and

30 June 2019 were as follows:

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

			Consolidated			Consolidated
	2020			2019
	$			$
Total borrowings, excluding provisions	3,645			3,645
Total secured and non-secured liabilities directly
associated with assets classified as held for sale	-			-
Total borrowings	3,645			3,645
Cash and cash equivalents	(747,008)			(866,565)
Net debt	743,362			862,919
Total equity	1,136,260			1,218,623
Total capital	1,879,622			2,081,542
Net debt to equity ratio	28%			41%
13. Reserves
			Consolidated			Consolidated
	2020		2019
	$		$
Revaluation reserves on available for sale securities
(a)	(9,902)		(8,862)
Share options reserve (b)		2,211,286			2,198,445
	2,201,384		2,189,583
(a) Revaluation Reserve
Balance at beginning of financial year	(8,862)		(8,862)
Revaluation decrements	(1,040)		-
Recycling to profit or loss (Note 4)		-			-
	(9,902)		(8,862)
(b) Share options reserve
Balance at beginning of financial year	2,198,445		2,198,445
Options expired during the year	-		-
Share options issued and vested		12,841			-
	2,211,286		2,198,445
(c) Equity derivative
Balance at beginning of financial year	-		-
Equity derivative derecognized on expiry of
convertible note or converted		-			-
		-			-

The following reconciles the share options outstanding at the beginning and end of the year:

		2020		2019
	No. of options	Weighted	No. of	Weighted
		average	options	average
		exercise price		exercise
		$		price
				$
Balance at beginning of	57,727,728	0.010	57,727,728	0.010
year
Granted during the year1	25,000,000	0.010	-	-
Exercised during the year	-	-	-	-

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

Balance at end of the	82,727,728	0.01	57,727,728
year
Exercisable at end of year	82,727,728		57,727,728

1 On 19 November 2019, 25,000,000 consideration options issued for the acquisition of Mount Macpherson. Unlisted options exercisable at $0.01 each on or before 15 November 2021.

One fifth of options will vest cumulatively each year in the following manner:

1/5 of the options vested on 16 September 2016 and are exercisable from that date up until and including 16 September 2021.
A further 1/5 of the options vest on 16 September 2017 and are exercisable from that date up until and including 16 September 2021.
A further 1/5 of the options vest on 16 September 2018 and are exercisable from that date up until and including 16 September 2021.
A further 1/5 of the options vest on 16 September 2019 and are exercisable from that date up until and including 16 September 2021.
A further 1/5 of the options vest on 16 September 2020 and are exercisable from that date up until and including 16 September 2021.

	Grant date	Expiry date	Exercise	Fair	Vesting date
			price	value at
				grant
				date
	16 Sep 2016	16 Sep 2021	$0.001	$0.0294	-1/5 vest on 16 Sept 2016
						-1/5 vest on 16 Sept 2017
						-1/5 vest on 16 Sept 2018
						-1/5 vest on 16 Sept 2019
						-1/5 vest on 16 Sept 2020
The options were valued at $2,138,182 using the Black-Scholes pricing model. The key
assumptions applied are set out below:
	Volatility			116%
	Risk free rate		2.01%
	Exercise price		$0.001
14. Retained Earnings
Balance at beginning of financial year			(30,413,273)			(29,366,068)
Transfer to retained earnings				-			-
Net loss attributed to members of the parent
entity					(792,321)			(1,047,205)
						(31,205,594)			(30,413,273)

	Consolidated		Consolidated
	2020	2019
	$	$
15. Earnings per share	Cents per share		Cents per share
Basic earnings per share
From continuing operations	(0.073)	(0.12)

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

From discontinued operations	-	-

Total basis earnings per share	(0.073)	(0.12)
		Cents per share			Cents per share
Diluted earnings per share
From continuing operations	(0.073)	(0.13)
From discontinued operations	-	-
Total diluted earnings per share
(0.073)	(0.13)
	Consolidated			Consolidated
	2020		2019
	$		$
Basic earnings per share
The earning and weighted average number
of ordinary shares used in the calculation of
basis earning per share are as follows:
Net loss for the year	792,321		1,047,205

Earning used in the calculation of basic	792,321		1,047,205
earnings per share
Loss for the year from discontinued	-		-
operations used in the calculation of basis
earnings per share from discontinued
operations
Earnings used in the calculation of basic	792,321		1,047,205
earnings per share from continuing
operations

	No.	No.
Weighted average number of ordinary
shares for the purpose of basic earnings per
share	1,073,087,432	872,260,274

Diluted earnings per share	$	$
The earning and weighted average number
of ordinary shares used in the calculation of
diluted earnings per share are as follows:
Net loss for the year	792,321	1,185,660
Interest on convertible notes	-		-
Earning used in the calculation of diluted	792,321	1,185,660
earnings per share
Loss for the year from discontinued	-	-
operations used in the calculation of diluted
earnings per share from discontinued
operations
Earnings used in the calculation of diluted
earnings per share from continuing
operations	792,321		1,185,660

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

	No.	No.
Weighted average number of ordinary
shares for the purpose of diluted earnings
per share	1,073,087,432	872,260,274

Options attached to converting financial instruments were excluded from the diluted weighted average number of ordinary shares calculation as their effect would have been anti-dilutive.

16. Commitments

Future exploration

MGT Mining Limited has certain uncontracted obligations to expend minimum amounts on exploration in tenement areas. These obligations may be varied from time to time and are expected to be fulfilled in the normal course of operations.

The uncontracted commitments to be undertaken are as follows:
	Consolidated		Consolidated
	2020	2019
	$	$

No later than 1 year	45,000	490,000
Later than 1 year and not later than 5 years	455,000	295,000
Later than five years	-		-
	500,000	785,000

To keep tenements in good standing, work programs should meet certain minimum expenditure requirements. If the minimum expenditure requirements are not met, MGT Mining Limited has the option to negotiate new terms or relinquish the tenements. MGT Mining Limited also has the ability to meet expenditure requirements by joint venture or farm-in agreements.

17. Subsidiaries

Details of the Group's subsidiaries at the end of the reporting period are as follows:

		Proportion of ownership
		interest and voting power held by the
			Group
	Country of	2020	2019
Name of subsidiary	incorporation	%	%
MGT Mining Limited	Australia	89.48%	89.48%
Garimperos Pty Limited (i)	Australia	100.00%	100.00%
Avira Australia Pty Ltd (ii)	Australia	100%	100%

Garimperos Pty Limited is 100% owned by MGT Mining Limited.

MGT Resources Pty Ltd was registered as a wholly owned subsidiary of Avira Resources Limited on 2 September 2016. On 31 January 2017, MGT Resources Pty Ltd changed its name to Avira Australia Pty Ltd.

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

a. Non-controlling interests (NCI)

Set out below is summarised financial information controlling interests that are material to the group. Limited are before inter-company eliminations.

for MGT Mining Limited that has non- The amounts disclosed for MGT Mining

MGT Mining Limited
Summarised balance sheet	2020	2019
	$	$
Assets

Current assets	1,464	5,680

Non-current assets classified as held for sale	-	-

Total current assets	1,464	5,680
Non-current assets	384,086	384,086
Total assets
385,549	389,765
Liabilities

Current liabilities	(11,027,764)	(10,108,515)

Non-current liabilities	-	-
Total liabilities
(11,027,764)	(10,108,515)
Net (liabilities)
(10,642,214)	(9,718,750)

Accumulated NCI	(1,040,645)	(1,021,801)

Summarised statement of comprehensive income
Loss for the year	(923,464)	(1,318,617)
Loss for the year from discontinued operations	-	-

Total loss for the year	(923,464)	(1,318,617)

Other comprehensive income	-	-

Total comprehensive income	(923,464)		(1,318,617)
Loss allocated to NCI	(18,844)	(138,455)
Summarised cash flows
Cash flow from operating activities	5,110	(6,894)
Cash flow from investing activities	-	-
Cash flow from financing activities	-	-
Net increase/(decrease) in cash and cash
equivalents	5,110		(6,894)

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

18. Notes to the cash flow statement

Reconciliation of cash and cash equivalents

For the purpose of the cash flow statement, cash and cash equivalents included cash on hand and in bank. Cash and cash equivalents at the end of the financial year follows:

		Consolidated	Consolidated
	2020			2019
	$			$
Cash and cash equivalents	280,008			866,565
Restricted funds from shares not issued	467,000
	747,008			866,565
For the purpose of presenting the consolidated statement of cash flows, cash and cash
equivalents comprise the following at the end for the financial year:
(b) Reconciliation of loss for the period to net cash flows from operating activities
		Consolidated	Consolidated
	2020			2019
	$			$

Loss for the year	(586,559)			(1,185,660)
Interest expense	-			-
Non-cash flow items:
Impairment (gain)/loss	-			445,373
(Increase)/decrease in other current assets	(9,796)			24,722
Increase/(decrease) in trade and other
payables		137,438			(52,104)
Net cash from operating activities	(586,558)			(767,669)

Non- cash transactions as at 30 June 2019 pertain to conversion of loan to equity amounting to $519,000.

19. Parent entity disclosure
(a) Financial position	2020	2019
		$	$
Assets
Current assets	10,960,717	10,962,080
Less provision for bad debt (Intercompany)	(10,215,091)	(8,958,695)
Non-current assets	11,901,352	11,639,552
Less provision for impairment of MGT Mining Ltd	(11,239,216)	(10,940,564)
Total assets
1,407,762	2,702,373
Liabilities

Current liabilities	(249,790)	(86,454)
Non-current liabilities	-	-
Total liabilities
(249,790)	(86,454)

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

Equity
Issued equity	31,181,215	30,464,215
Retained earnings	(32,234,152)	(30,047,404)
Reserves	2,210,908		2,199,108
Total equity	690,971		(2,615,919)

	Consolidated		Consolidated
(b) Financial performance	2020	2019
	$	$

Interest income	6,512	688,230
Other losses	(298,652)	-
Bad debt provision (Intercompany)	(1,256,396)	(387,053)
Administrative expenses	(638,212)	(552,061)
Share options issued	-	-

Total comprehensive income	(2,186,748)	(250,884)

The parent entity did not have any contingent liabilities during the current or prior periods.

Guarantees entered into by the parent entity in relation to the debts of its subsidiaries.

The parent entity has not entered into any guarantees in relation to the debts of its subsidiaries.

		Consolidated	Consolidated
20. Auditors remuneration	2020		2019
		$		$
Audit services

Audit and review of financial reports	36,000		38,000
Non-audit services	16,000		15,000
Total auditor's remuneration		52,000		52,000

21. Share-based payments

Employee share option plan

The Group has an ownership-based compensation scheme for executives and senior employees. In accordance with the terms of the plan, as approved by shareholders at a previous annual general meeting, executives and senior employees may be granted options to purchase ordinary shares at various exercise prices.

Each employee share option converts into one ordinary share of Avira Resources Limited (formerly MGT Resources Ltd) on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry.

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

22. Key management personnel compensation

The aggregate compensation made to directors and key management personnel of the

company and the Group is set out below:
	Consolidated		Consolidated
	2020	2019
	$	$

Short-term employee benefits	310,940	291,577
Other long-term benefits	6,270	6,270

	317,209	297,847

Related party transactions

Avira Resources Limited provided key management personnel services to MGT Mining Limited, the 89.48% subsidiary of Avira Resources Limited for a total value of $53,815 during the period to 30 June 2020.
The Group entered into an agreement with Cicero Corporate Services Pty Ltd (an entity in which Sonu Cheema is shareholder and director) (Cicero) defining the terms of engagement for the provision of administration services by Cicero as a contractor to the Group. Cicero will provide book-keeping, company secretarial and administration services to the Company for a monthly fee of $10,000 plus GST.

Events occurring after the reporting period

A non-renounceable entitlement Option Offer of approximately 275,000,000 options to Eligible Shareholders, on the basis of one (1) option for every five (5) fully paid ordinary shares held at the Record Date at an issue price of $0.001 to raise approximately $275,000 (before costs). The Options are exercisable at $0.01 on or before 10 July 2022.
An option placement of 200,000,000 options at an issue price of $0.001 to raise $200,000 (before costs). The options are exercisable at $0.01 on or before 10 July 2022.

Key terms of the sale included in the Binding Term Sheet are as follows;

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 June 2020

An option fee of $25,000 to secure a 60-day exclusivity period to conduct and complete due diligence activities in relation to the assets. The option fee is due and payable on signing of the Term Sheet.
$150,000 (including the Option fee paid) paid in cash and $150,000 issued in MEP ordinary fully paid shares (price based on 5-day VWAP for 5 days prior to the Completion date).
$150,000 in cash on publication of a JORC resource of at least 25,000 oz Au at a grade not less than 1.8 g/t or, if within 24 months of Completion MEP has not published a JORC Resource of at least 25,000 oz Au, MEP is required to issue the Company with ordinary fully paid share to the value of $150,000 based upon a 5-day VWAP.
A 1.5% NSR (Au only) in relation to the first 50,000oz of AU produced from the assets.

Key terms of the sale included in the Term Sheet are as follows;

An option fee of A$5,000 to secure a 60-day exclusivity period to conduct and complete due diligence activities in relation to the assets. The option fee is due and payable on signing of the Term Sheet.
A$60,000 (including the Option fee paid) paid in cash on signing of the Sale and Purchase Agreement.

AVIRA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

DIRECTOR'S DECLARATION

FOR THE YEAR ENDED 30 June 2020

The directors declare that:

In the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable;
In the directors' opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the company and the consolidated entity;
In the directors' opinion, the financial statements and notes thereto are in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board; and
The directors' have been given the declarations required by s.295A of the Corporations
Act 2001.

Signed in accordance with a resolution of the directors made pursuant to s.295(5) of the Corporations Act 2001.

On behalf of the Directors

David De Loub

Executive Director

Dated: 30 September 2020

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AVIRA RESOURCES

LIMITED AND ITS CONTROLLED ENTITIES

Report on the Financial Report

Opinion

We have audited the accompanying financial report of Avira Resources Limited and its controlled entities (the "Group"), which comprises the statement of financial position as at 30 June 2020 and consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year ended on that date, other selected explanatory notes and the directors' declaration.

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

giving a true and fair view of the Group's financial position as at 30 June 2020 and of its financial performance for the year ended; and
complying with Australian Accounting Standards to the extent described in Note 1 and the Corporations Regulations 2001.

Basis of 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 (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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Group, would be in the same terms if given to the directors as at the time of this auditor's report.

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(a) to the financial statements which describe the uncertainty related to going concern. As at 30 June 2020 the consolidated entity incurred a net loss after tax of $811,164 and cash outflows from operating and investing activities of $586,557.

The ability of the Group to continue as a going concern is dependent upon the Group's ability to generate sufficient working capital and successfully realise planned capital raising initiatives. Should the group fail to raise sufficient funds a material uncertainty exists which may cast significant doubt as to the Group's ability to continue as a going concern and therefore, the Group may be unable to realise its assets and discharge its liabilities in the normal course of business, and at the amounts stated in the financial report.

LEVEL 12, 90 ARTHUR STREET, NORTH SYDNEY NSW 2060 - PO BOX 1994, NORTH SYDNEY NSW 2059 TEL: +61 2 9922 1166 - FAX: +61 2 9922 2044 - www.mazars.com.au

EMAIL:audit@mazars.com.au

MAZARS RISK & ASSURANCE PTY LIMITED - ABN: 39 151 805 275

Liability limited by a scheme approved under Professional Standards Legislation

Emphasis of Matter Relating to Exploration and Evaluation Expenditure Assets

We draw attention to Note 10 to the financial statements which states that the recoverability of the Exploration and Evaluation expenditure asset is dependent upon the maintenance of minimum spend requirements, ensuring that the exploration licences remain in good standing, the successful development and exploitation of the area of interest, or alternatively, by sale. Our opinion is not modified in respect of this matter.

Key Audit Matters

The key audit matters are those matters that, in our professional judgement Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

	Key Audit Matter		How our audit addressed the matter
	Impairment assessment of capitalised exploration costs
	A substantial amount of the Group's total assets		Our audit procedures included:
	(51%) relate to identifiable intangible assets		∙ Testing the reasonableness of the carrying
	which are subject to impairment assessment in
	accordance with AASB 136, Impairment of		value through the use of alternative valuation
	Assets.		methods to support the directors assess-
	These assets pertain to mining tenements and		ments.

	capitalised exploration and evaluation costs		∙ Testing the reasonableness of sales market
	totalling approximately $0.70 million.		transactions used in assessment of impair-
	Management's impairment assessment of these		ment;

	assets are considered as key audit matter as
	they involve a high degree of management
	judgment as well as reliance on third party
	valuation experts.

Other Information

The directors are responsible for the other information. The other information comprises the information included in the annual report for the year ended 30 June 2020, 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 we will not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information identified above when it becomes available 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 the 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 Group are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Corporations Act 2001 and is appropriate to meet the needs of the members. The directors' responsibility also includes such internal control as the directors determine is necessary to enable the preparation of a 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 ability of the Group to continue as a going concern, disclosing, as applicable, matters related 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 the financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement 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, designs and performs audit procedures responsive to those risks, and obtains audit evidence that is sufficient and appropriate to provide a basis for the auditor's 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, inten- tional 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 express- ing an opinion on the effectiveness of the Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of ac- counting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the director's use of the going concern basis of ac- counting and, based on the audit evidence obtained, whether a material uncertainty ex- ists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If the auditor concludes that a material uncertainty ex- ists, we are required to draw attention in the 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 the auditor's re- port. 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 en- tities or business activities within the Group to express an opinion on the consolidated financial statements. 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 the auditor identifies during the 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 related safeguards.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our audit report unless law or regulation precludes public disclosure about the matter or when, in extreme 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 of such communication.

Report on the Remuneration Report

We have audited the Remuneration Report for the year ended 30 June 2020 as outlined on pages 13 to 15 of the financial report. 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.

Auditor's Opinion

In our opinion, the Remuneration Report of Avira Resources Limited for the year ended 30 June 2020, complies with section 300A of the Corporations Act 2001.

MAZARS RISK & ASSURANCE PTY LTD

Rose Megale

Director

Sydney, 30 September 2020

ADDITIONAL STOCK EXCHANGE INFORMATION

The shareholder information set out below was applicable as at 29 September 2020.

Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:

AVW

Range	Total holders	Units	% Units
1 - 1,000	63	48,398	0.00

1,001 - 5,000	159	395,743	0.03
5,001 - 10,000	43	335,703	0.02

10,001 - 100,000	220	13,741,090	1.00
100,001 Over	583	1,360,479,066	98.94

Rounding				0.01
Total	1,068	1,375,000,000	100.00

Unmarketable Parcels

		Minimum Parcel Size	Holders	Units
Minimum $ 500.00 parcel at $ 0.0080 per unit	62,500	357	3,348,350

AVWO

Range	Total holders	Units	% Units
1 - 1,000	8	3,302	0.00

1,001 - 5,000	6	12,373	0.00
5,001 - 10,000	8	60,579	0.01

10,001 - 100,000	91	3,862,290	0.74
100,001 Over	182	521,061,456	99.25

Rounding				0.00
Total	295	525,000,000	100.00

Unmarketable Parcels

		Minimum Parcel Size	Holders	Units
Minimum $ 500.00 parcel at $ 0.0050 per unit	100,000	107	3,338,544

Equity security holders

Twenty largest quoted equity security holders

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

AVW		Name	Units	% Units
1		GREAT SOUTHERN FLOUR MILLS PTY LTD	150,000,000	10.91

2		SUNSET CAPITAL MANAGEMENT PTY LTD	100,000,000	7.27

3		SABRELINE PTY LTD	50,000,000	3.64

3		MR DAVID VIGOLO	50,000,000	3.64
5		STATION NOMINEES PTY LTD	40,000,000	2.91

6		MR IAN PRENTICE + MRS TRACEY GAY PRENTICE <_i26_t prentice="" family="" _a2f_c="">	30,000,000	2.18

7		MR KEVIN FRANCIS BARNETT + MRS HELEN LOUISE BARNETT <_k26_h>	28,000,000	2.04
	SUPER FUND A/C>

8		CELTIC CAPITAL PTY LTD	25,000,000	1.82
8		GEMELLI NOMINEES PTY LTD	25,000,000	1.82

8		MR JONATHAN MARK WILD	25,000,000	1.82
11		HONG KONG JINGAOFENGDA BUSINESS CO LIMITED	23,520,000	1.71

12		RANCHLAND HOLDINGS PTY LTD	20,666,667	1.50

ADDITIONAL STOCK EXCHANGE INFORMATION

13	JOSEPH ENERGY (HONG KONG) LTD	19,190,909	1.40

	14	SURF COAST CAPITAL PTY LTD		16,500,000		1.20
15	JONATHAN PAUL BACK	13,005,946	0.95

	16	J P MORGAN NOMINEES AUSTRALIA PTY LIMITED		12,429,511		0.90
17	MS LORAINE VON DER WEID-DE WECK	12,000,000	0.87

	18	10 BOLIVIANOS PTY LTD		11,625,000		0.85
19	ARMSTRONG INDUSTRIES HK LTD	10,452,335	0.76

	20	MR FRANK TRINGAS		10,416,666		0.76
Totals: Top 20 holders of All Fully Paid Ordinary Shares (Total)	672,807,034	48.93
Total Remaining Holders Balance	702,192,966	51.07

	AVWO		Name		Units		% Units
1		SUNSET CAPITAL MANAGEMENT PTY LTD	68,000,000	12.95

	2		CELTIC CAPITAL PTY LTD		35,000,000		6.67
3		GREAT SOUTHERN FLOUR MILLS PTY LTD	25,000,000	4.76

	4		MERCHANT FUNDS MANAGEMENT PTY LTD		20,000,000		3.81
4		STATION NOMINEES PTY LTD	20,000,000	3.81

	6		SABRELINE PTY LTD		18,000,000		3.43
7		CPS CAPITAL NO 4 PTY LTD	15,000,000	2.86

	8		ALITIME NOMINEES PTY LTD		10,000,000		1.90
8		DC & PC HOLDINGS PTY LTD	10,000,000	1.90

	8		DDPEVCIC (WA) PTY LTD		10,000,000		1.90
8		J & J BANDY NOMINEES PTY LTD	10,000,000	1.90

	8		MIAL ENTERPRISES PTY LTD		10,000,000		1.90
8		THE TWENTIETH CENTURY MOTOR COMPANY PTY LTD	10,000,000	1.90
	A/C>

	14		CHAMPAGNE CAPITAL PTY LTD		7,600,000		1.45

	15		BRU BOY PTY LTD		7,500,000		1.43

	16		FINCLEAR NOMINEES PTY LTD		7,000,000		1.33

17		MS LAREESA JAYNE HERRON	6,789,849	1.29

	18		MR IAN PRENTICE + MRS TRACEY GAY PRENTICE <_i26_t prentice="" family="" _a2f_c="">		6,000,000		1.14

19		MR KENNETH DAVID ROGERS	5,300,000	1.01

	20		CELTIC CAPITAL PTY LTD		5,000,000		0.95
20		GEMELLI NOMINEES PTY LTD	5,000,000	0.95

	20		JINDABYNE CAPITAL PTY LTD		5,000,000		0.95
20		RIMOYNE PTY LTD	5,000,000	0.95

	20		MR ANTONY WILLIAM PAUL SAGE + MS LUCY FERNANDES SAGE		5,000,000		0.95
		FUND A/C>

20		MRS JUDITH ANN VALENTINO	5,000,000	0.95

	20		MR JONATHAN MARK WILD		5,000,000		0.95
Totals: Top 26 holders of LISTED OPTIONS EXPIRING 10/07/2022 @ $0.01 (Total)	336,189,849	64.04
Total Remaining Holders Balance	188,810,151	35.96

Substantial Shareholders
The names of shareholders with relevant interests of 5% or more (of the voting power of those shares) are listed below:

ADDITIONAL STOCK EXCHANGE INFORMATION

AVW	Name	Units	% Units
1	GREAT SOUTHERN FLOUR MILLS PTY LTD	150,000,000	10.91

2	SUNSET CAPITAL MANAGEMENT PTY LTD	100,000,000	7.27

C. Unquoted Securities (Options)

Unlisted Options

Number of

Number on Issue

Holders

(26 September 2019)

Options over ordinary shares issued

7,727,728

Options over ordinary shares issued

50,000,000

D. Schedule of Mineral Tenements

E. LEASE

NAME

AREA

AREA UNITS

RENEW

GRANT

EXPIRY

HOLDER

DATE

Paterson Range (WA)

E45/5572

Mount

Sub-Blocks

13-July-20

12-July-25

Mount

E45/5572

Macpherson

E45/5567

Throssel

Sub-Blocks

Under

Avira

E45/5567

Range

application

Resources

Mount Garnet (QLD)

ML 20066

Valetta -

1.5

Hectares

30-Jan--

30-Jun-21

AVIRA

EPSL00266113

Sugarbag

Pyramid (QLD)

Pyramid

Sub-Blocks

5-Aug-04

4-Aug-20

MGTM

EPSX00705113

EPM 12887

EPM 19554

Pyramid 3

Sub-Blocks

16-Dec-

15-Dec-22

MGTM

EPSX00705113

EPM 25154

Pyramid 2

Sub-Blocks

23-Feb-

22-Feb-23

AVIRA

EPSX00899513

Southern Queensland (QLD)

EPM 12834

Mount

Sub-Blocks

17-Dec-99

16-Dec-20

MGTM

EPSX00600613

Steadman

EPM 8402V

Yarrol

Sub-Blocks

13-Nov-91

12-Nov-20

MGTM

EPSX00600713

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

Original document
Permalink

Disclaimer

Avira Resources Limited published this content on 30 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 October 2020 09:59:08 UTC

Market Closed - Australian S.E. Other stock markets 01:39:30 2024-05-28 EDT			5-day change	1st Jan Change
0.001 ^AUD	0.00%		0.00%	-33.33%

04-29	Avira Resources Raises AU$815,000 for Project Exploration, Working Capital	MT
03-13	Avira Resources Limited Reports Earnings Results for the Half Year Ended December 31, 2023	CI

Avira Resources Limited

Equities

AVW

AU000000AVW3

Diversified Mining

Avira Resources : AVW - Annual Report 30 June 2020

Latest news about Avira Resources Limited

Chart Avira Resources Limited

Company Profile

Income Statement Evolution

Sector Integrated Mining

	1st Jan change	Capi.
AVIRA RESOURCES LIMITED	-33.33%	1.77M
BHP GROUP LIMITED	-10.57%	152B
RIO TINTO PLC	-4.33%	123B
GLENCORE PLC	+3.58%	75.13B
GRUPO MÉXICO, S.A.B. DE C.V.	+11.85%	49.24B
SAUDI ARABIAN MINING COMPANY (MA'ADEN)	-3.40%	46.88B
ANGLO AMERICAN PLC	+29.81%	40.52B
HINDUSTAN ZINC LIMITED	+125.03%	35.96B
TECK RESOURCES LIMITED	+28.67%	26.85B
VEDANTA LIMITED	+75.96%	20.54B