Terramin Australia : 2021 Annual Report

For personal use only

2021 Annual Report

Contents
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About Terramin ......................................................................................................................................................................	3
Chairman's Review .................................................................................................................................................................	4
Financial Report .....................................................................................................................................................................	5
Directors' Report ....................................................................................................................................................................	6
Directors' Declaration ..........................................................................................................................................................	16
Auditor's Independence Declaration ....................................................................................................................................	17
Auditor's Independent Report..............................................................................................................................................	18
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Consolidated Statement of Profit or Loss and Other Comprehensive Income.......................................................................	21
Consolidated Statement of Financial Position ......................................................................................................................	22
Consolidated Statement of Changes in Equity ......................................................................................................................	23
Consolidated Statement of Cash Flows.................................................................................................................................	24
Notes to the Consolidated Financial Statements ..................................................................................................................	25
Tenement Information .........................................................................................................................................................	42
Reserves and Resources .......................................................................................................................................................	43
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Additional Securities Exchange Information .........................................................................................................................	45

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About Terramin

Terramin Australia Limited (the Company or Terramin) engages in the exploration, evaluation and development of base and precious

onlymetal projects.

Terramin has a clear focus on growing a production pipeline of base and precious metal projects close to infrastructure and with low

capital and operating costs. Consistent with this focus, the Group holds a number of highly prospective mineral deposits and exploration tenements across South Australia and Algeria.

Terramin's major projects are:

Bird in Hand Gold Project (100% Terramin)

A high-grade mineral Resource of 265,000 gold ounces at 12.6 g/t gold with the ore body open at depth and exploration upside in

near proximity. A completed feasibility study indicates a Post-Tax Nominal NPV8 of $141m1	and IRR of 80.5%. The pre-production
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capital is a modest $54 million due to utilisation of Terramin's nearby Angas processing facility to produce a gold concentrate. Gov rnment approval processes are well advanced.

Tala Hamza Zinc Project (65% Terramin, reducing to 49%)

A large mineral Resource of 53.0 million tonnes @ 5.3% zinc and 1.3% lead on which a definitive feasibility study was completed in 2018. Mining lease and associated environmental impact study have been lodged for approval. Extensive established infrastructure in place with attractive low power and fuel costs. Strong government support has been provided for the project.

Regional Prospects - South Australia

Additional interests include a joint venture interest in the Kapunda Copper InSitu Recovery Project and exploration agreements with Newmont and JOGMEC in relation to the Wild Horse and South Gawler Ranges Projects, respectively.

1. NPV8: NPV has been calculated using a discount rate of 8%. NPV and IRR are calculated from ramp up of start-up capital.

Registered and Business Office	Australian Securities Exchange
Terramin Australia Limited	ASX ticker code: TZN
2115 Callington Road,	Corporate Information
Strathalbyn, South Australia, 5255
T	[phone]	Directors
E	[e-mail]	Feng Sheng
W	www.terramin.com.au
ABN 67 062 576 238	Executive Chairman
ACN	062 576 238	Michael Kennedy
Auditors	Non-ExecutiveDeputy-Chairman
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Grant Thornton Audit Pty Ltd	Angelo Siciliano
Level 3, 170 Frome Street	Non-Executive Director
Adelaide, South Australia, 5000
Share Registry	Kevin McGuinness
Non-Executive Director
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Computershare Investor Services Pty Ltd	Lulu Shi
Level 5, 115 Grenfell Street
Non-Executive Director
Adelaide, South Australia, 5000
T 1300 556 161	Executive Officer

Martin Janes

Company Secretary

André van Driel

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Chairman's Review

onlyDear Fellow Shareholders,

It is my pleasure to present Terramin Australia Limited's 2021 Annual Report.

Throughout 2021, Terramin has continued to work diligently in moving its major assets into development and production.

I am pleased to advise that these efforts have been recently rewarded with the approval of the world-class Tala Hamza Zinc Project by ur Algerian Government joint venture partners, which will clear the way for the issue of the mining permit. This significant decision will facilitate the development of one of the largest undeveloped zinc and lead deposits in the world, containing 3.5 million tonnes of zinc, of which Terramin will retain a 49% interest.

useA 2018 Definitive Feasibility Study indicated that Tala Hamza will produce an average of 129,300 tpa of zinc concentrate and 36,000 tpa of lead concentrate over a 21-year mine life. Terramin has completed an optimisation study that increases the throughput of the project which could further increase returns.

I would like to commend and acknowledge the hard work and support of our Algerian partners.

In respect of the Bird in Hand Gold Project, we are awaiting the decision by the South Australian Department for Energy and Mining regarding our applications for a Mining Lease and Miscellaneous Purposes Licence. Terramin remains optimistic about the development of this low-capitalhigh-return mine.

personalRecently, Terramin announced the formation of a $10.5 million exploration agreement with the Japan Oil, Gas and Metals National Corporation (JOGMEC) relating to the South Gawler Ranges Project. A particular focus of this exploration arrangement will be the

se rch for large IOCG deposits.

We are also pleased to report the progress of our joint venture partner, Environmental Copper Recovery Pty Ltd, at the Kapunda Copper InSitu Recovery Project as they continue to produce positive test results.

I wish to thank our shareholders for your ongoing support as we transition to what promises to be an exciting and transformational year ahead.

F ng (Bruce)Sheng

Executive Chairman

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For personal use only

Financial Report

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