NORTH077 Annual Report 2020 V5.2 DIGITAL

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92 NORTHERN MINERALS _ ANNUAL REPORT 2021 17. Share-based Payments NORTHERN MINERALS LIMITED NOTES TO THE FINANCIAL STATEMENTS Total expenses arising from share-based payment transactions recognised during the period: 2021 $ 2020 $ Performance rights and options – refer to (i) (60,035) (110,159) Share purchase plan shares – refer to (ii) - - Total Options and Performance Rights (60,035) (110,159) • Included in share-based payments expense (60,035) (586,159) • Included in prepayments (refer note 8(b)) - 476,000 (60,035) (110,159) Share-based payments by issuing shares • Repayment of debt (refer note 12(b)) 2,000,000 1,000,000 • Included in project development costs - 41,800 • Included in consulting fees - 201,500 • Included in prepayments (refer note 8(b)) - 2,162,000 • Total shares issued for payment of goods and services 2,000,000 3,405,300 Total share-based payments for the year 1,939,965 3,295,141 Total share-based payments recognised in profit and loss (60,035) (202,526) Total share-based payments recognised in statement of financial position 2,000,000 3,497,667 Equity settled transactions The Group provides benefits to its employees (including Key Management Personnel) in the form of share-based payments. In valuing equity-settled transactions, vesting conditions, other than conditions linked to the price of the shares of Northern Minerals Limited (market conditions) are considered if applicable. The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and / or service conditions are fulfilled (the vesting period), ending on the date on which the relevant employees become fully entitled to the award (the vesting date). At each subsequent reporting date until vesting, the cumulative charge to the statement of profit or loss is the product of: (i) The grant date fair value of the award. (ii) The expired portion of the vesting period. The charge to the statement of profit or loss for the period is the cumulative amount as calculated above less the amounts already charged in previous periods. There is a corresponding entry to equity. Until an award has vested, any amounts recorded are contingent and will be adjusted if more or fewer awards vest than were originally anticipated to do so. The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share (see note 19). The Group expenses equity-settled share-based payments such as share and option issues after ascribing a fair value to the shares and/or options issued. The fair value of option and share plan issues of option and share plan shares are recognised as an expense together with a corresponding increase in the share-based payments reserve or the share option reserve in equity over the vesting period. The 60
93 17. Share-based Payments (continued) NORTHERN MINERALS LIMITED NOTES TO THE FINANCIAL STATEMENTS proceeds received net of any directly attributable transaction costs are credited to share capital when options are exercised. The value of shares issued to employees, financed by way of a non-recourse loan under the employee Share Plan, is recognised with a corresponding increase in equity when the company receives funds from either the employees repaying the loan or upon the loan termination. All shares issued under the plan with non-recourse loans are considered, for accounting purposes, to be options. The initial undiscounted value of the performance rights is the value of an underlying share in the Company as traded on ASX at the date of deemed date of grant of the performance right. As the performance conditions are not market based performance conditions, no discount is applied. (i) Options and Performance Rights Nil performance rights were granted to employees and directors during the year (2020: 914,000).and 153,061,226 (2020: 34,000,000) options were granted to third parties. Details on the performance rights and options issued are included in note 11(c) and 11(d). Details on the performance rights issues to key management personnel are included in the Remuneration Report section of the Directors’ Report. The number and weighted average exercise price of performance rights granted are as follows: 2021 Number Weighted average exercise price 2020 Number Weighted average exercise price Outstanding at the beginning of the 17,479,900 $nil 24,013,050 $ nil year Performance rights issued during the - $nil 914,000 $ nil year Performance rights forfeited / lapsed (11,678,150) $ nil (3,086,000) $ nil during the year Performance rights exercised during (5,656,000) $ nil (4,361,150) $ nil the year Outstanding at the end of the year 145,750 $ nil 17,479,900 $ nil Exercisable at the end of the year 145,750 4,263,900 The outstanding balance as at 30 June 2021 is represented by: • 145,750 performance rights with an exercise price of nil, with numerous performance conditions – see note 11(c) for details. The weighted average remaining contractual life for the performance rights outstanding as at 30 June 2021 is 0.00 years (2020: 0.98 years). (ii) Share Plan Shares To ensure that the Company has appropriate mechanisms to continue to attract and retain the services of Directors and employees of a high calibre, the Company has an established Share Plan. The Directors and employees of the Company have been, and will continue to be, essential to the growth of the Company. The Directors considered the Plan an appropriate method to: a) Reward Directors and employees for their past performance; b) Provide long-term incentives to participate in the Company’s future growth; c) Motivate Directors and employees and generate loyalty in employees; and d) Assist to retain the services of valuable employees. 61 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
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19 EXPLORATION & GEOLOGY REPORT The
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21 The high-grade mineralisation oc
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23 Figure 5: Banshee Prospect Drill
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25 Browns Range Northern Territory
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27 Ore Reserve and Mineral Resource
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29 Mineral Resource The Mineral Res
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31 Comparison with previous years O
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33 NORTHERN MINERALS LIMITED DIRECT
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Page 43 and 44: 41 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 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 93: 91 NORTHERN MINERALS LIMITED NOTES
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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