ANNUAL Report June 2022 Notes to the Consolidated Financial Statements 38 14. EARNINGS PER SHARE 2022 $ 2021 $ Profit (Loss) after income tax attributable to the owners of the Company used in calculating basic and diluted earnings per share (6,063,051) (4,574,191) Number Number Weighted average number of ordinary shares on issue used in the calculation of basic loss per share 1,336,589,754 1,165,452,234 Weighted average number of ordinary shares used in calculating diluted earnings per share. Note options outstanding at reporting date have not been brought to account as they are anti-dilutive. 1,444,252,768 1,177,616,617 Basic profit (loss) per share (cents) (0.45) (0.39) Diluted profit (loss) per share (cents) (0.42) (0.39) 15. KEY MANAGEMENT PERSONNEL COMPENSATION 2022 $ 2021(1) $ Short-term employee benefits 618,347 689,996 Post-employment benefits 1,806 97,198 Share based payments 292,383 178,974 Balance at the end of period 912,536 966,168 (1) Restated to include non-monetary benefits, leave provisions and long-term employee benefits. 16. CONTINGENT LIABILITIES The Group has provided guarantees totalling $1,075,130 in respect of mining exploration tenements and environmental bonds. These guarantees in respect of mining and exploration tenements are secured against deposits with the relative State Department of Mines. The Company does not expect to incur any material liability in respect of the guarantees. 17. COMMITMENTS Exploration Licence Expenditure Requirements Queensland The Queensland Government has approved a number of changes to Exploration Permits under the Natural Resources and Other Legislation Amendment Act 2019 (known as NROLA Act). This Act commenced in May 2020 which results in a change from an expenditure-based approach upon which a company’s compliance with its licence conditions will be assessed on an outcomes-based approach. New South Wales In November 2021 EQ Resources Limited entered into a binding Farm-In and Joint Venture Agreement with Sozo Resources Pty Ltd (“Sozo”) whereby Sozo can earn up to an 80% interest in EQR’s 100% owned NSW projects, Crow Mountain (EL6648) and Panama Hat (EL8024), by completing expenditure of $1.6 million over 4 years as follows: ▪ Stage 1 – Sozo to complete $100K of expenditure within 9 months from the Agreement Commencement Date; ▪ Stage 2 – Sozo to spend a further $750K of expenditure within a further 24 months to earn a 49% interest. If Sozo elects to continue sole funding exploration expenditure at the end of Stage 2, it will have earnt a further 2% (51% in total) and a Joint Venture will be formed; and ▪ Stage 3 – Sozo to spend a further $750K of expenditure and complete a Scoping Study (as defined by the 2012 JORC Code) within a further 24 months to earn a further 29% (in total $1.6M for 80%). EQ Resources Limited Annual Report 2022 69
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