NORTH077 Annual Report 2020 V5.2 DIGITAL

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70 NORTHERN MINERALS _ ANNUAL REPORT 2021 NORTHERN MINERALS LIMITED NOTES TO THE FINANCIAL STATEMENTS 8. Financial Assets and Financial Liabilities and other receivables and liabilities (continued) Assets pledged as security The carrying amounts of assets pledged as security for current and non-current borrowings are: 2021 $ 2020 $ Non-Current Fixed charge Property, plant and equipment - - Finance lease Property, plant and equipment 15,000 312,023 Floating charge Receivables Property, plant and equipment - - Total non-current assets pledged as security 15,000 312,023 Total assets pledged as security 15,000 312,023 In 2020 Sinosteel had a Specific Security Deed giving it security over the Company’s mechanical equipment, electrical and instrumentation equipment, structural steel, platework and piping for the beneficiation and hydrometallurgical process plants supplied and installed by the contractor as defined by the Process Engineering package in the EPC Contract. These assets were fully impaired during the 2020 financial year hence had a nil carrying value as at 30 June 2020. This security has now been released after repayment in full of the creditor. (f) Deferred revenue 2021 $ 2020 $ Current Deferred revenue 845,254 7,521,406 Refer to note 5 for the accounting policy in relation to R&D rebates and government grants. 38
71 NORTHERN MINERALS LIMITED NOTES TO THE FINANCIAL STATEMENTS 8. Financial Assets and Financial Liabilities and other receivables and liabilities (continued) (g) Accounting classification and fair value Financial assets A financial asset shall be measured at amortised cost if it is held within a business model whose objective is to hold assets in order to collect contractual cashflows which arise on specified dates and that are solely principal and interest. A debt investment shall be measured at fair value through other comprehensive income if it is held within a business model whose objective is to hold both assets in order to collect contractual cashflows which arise on specified dates that are solely principal and interest as well as selling the asset on the basis of its fair value. Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. Typically, such financial assets with be either: • held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or • designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss. Despite these requirements, a financial asset may be irrevocably designated as measured at fair value through profit or loss to reduce the effect of, or eliminate, an accounting mismatch. Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Group 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, its carrying value is written off. 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 Group’s assessment at the end of each reporting period as to whether the financial instruments 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 assets 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 assets 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. Financial liabilities Financial liabilities other than derivatives are initially recognised at fair value of consideration received net of transaction costs as appropriate and are subsequently carried at amortised cost. The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The amortisation is included in finance costs in the statement of profit or loss. 39 NORTHERN MINERALS _ ANNUAL REPORT 2021
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2021 ANNUAL REPORT
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1 Chairman’s Report NORTHERN MINE
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3 CEO’S Report NORTHERN MINERALS
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5 Ore Sorter: The ore sorting syste
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7 ENVIROMMENT, SOCIAL & GOVERNANCE
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9 field team to conduct pre-clearan
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11 Executive Team Our executive tea
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13 COO Report NORTHERN MINERALS _ A
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15 Commissioned: The ore sorter cir
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17 rare earths into groups of produ
Page 21 and 22: 19 EXPLORATION & GEOLOGY REPORT The
Page 23 and 24: 21 The high-grade mineralisation oc
Page 25 and 26: 23 Figure 5: Banshee Prospect Drill
Page 27 and 28: 25 Browns Range Northern Territory
Page 29 and 30: 27 Ore Reserve and Mineral Resource
Page 31 and 32: 29 Mineral Resource The Mineral Res
Page 33 and 34: 31 Comparison with previous years O
Page 35 and 36: 33 NORTHERN MINERALS LIMITED DIRECT
Page 47 and 48: 45 4. Service agreements NORTHERN M
Page 57 and 58: 55 NORTHERN MINERALS LIMITED CONSOL
Page 59 and 60: 57 NORTHERN MINERALS LIMITED CONSOL
Page 61 and 62: 59 2. Basis of Preparation (continu
Page 63 and 64: 61 NORTHERN MINERALS LIMITED NOTES
Page 65 and 66: 63 7. Income Tax Expense NORTHERN M
Page 71: 69 NORTHERN MINERALS LIMITED NOTES
Page 75 and 76: 73 9. Financial Risk Management (co
Page 79 and 80: 77 9. Financial Risk Management (co
Page 87 and 88: 85 11. Equity (continued) (i) Ordin
Page 95 and 96: 93 17. Share-based Payments (contin
Page 99 and 100: 97 19. Earnings per share NORTHERN
Page 101 and 102: 99 21. Segment Information NORTHERN
Page 105 and 106: 103 Auditor’s independence declar
Page 107 and 108: 105 Key audit matter How our audit
Page 109 and 110: 107 From the matters communicated w
Page 111 and 112: 109 Project Location Tenement ID St
Page 113 and 114: 111 b) Twenty largest shareholders
Page 115 and 116: 113 CORPORATE DIRECTORY Northern Mi
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NORTH077 Annual Report 2020 V5.2 DIGITAL

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