3D RESOURCES LIMITED AND
CONTROLLED ENTITIES
ABN: 15 120 973 775
Financial Report For The Year Ended
30 June 2020
3D RESOURCES LIMITED
AND CONTROLLED ENTITIES
ABN: 15 120 973 775
Financial Report For The Year Ended
30 June 2020
CONTENTS
Letter to shareholders
Corporate Governance Statement
Directors' Report
Auditor's Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors' Declaration
Independent Auditor's Report
Additional Information for Listed Public Companies
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45
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50
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
LETTER TO SHAREHOLDERS
Dear Shareholder,
The Board of 3D Resources Ltd. is pleased to present its Annual Report for the Year ended 30 June 2020.
The highlight of the year was the Company’s completion of its acquisition of the Adelong gold project. The Company
sees great potential in the Adelong project and expects it to create significant value for the Company in the years to
come as it transitions from explorer to gold producer.
The Company has already undertaken a strategic review of the project which led to an upgrading of resources to
180,600oz of gold and identified an opportunity to double the capacity of the plant. Further expansions of the project are
anticipated. Work on the Adelong gold project continues on several fronts with the objective of recommencing production
as soon as possible, and the Company considers the Adelong opportunity to be deservedly its flagship. The Company
considers that successful commencement of production should ultimately result in a substantial re-rating of the company
and therefore is focusing on that opportunity.
Given the likely funding and management demands of the Adelong project, a decision was taken to spin out the Cosmo
Newbery gold project (“Cosmo Project”) located in central Western Australia, as announced to the market on 27th
August 2020. The scale of the Cosmo Project, which includes an 830 km2 tenement package requires a dedicated team
and a significant exploration budget to fully explore once access is granted. The Company believes that the decision to
spin out the Cosmo Project should maximise existing shareholders exposure to the project, guarantee funding to develop
it, and allow the Company to substantially recoup 3D Resources investment to date. The proposed IPO is expected to be
underwritten and shareholders are expected to receive a priority entitlement together with an in-specie distribution of
shares in the new listed entity. A shareholders meeting will be convened to approve the proposed spin out as soon as
possible.
The Company has also progressed its efforts to divest its Halls Creek copper project which it recognised some time ago
required expansion to be commercial with discussions underway with potential purchasers at the time of this report.
The Company thanks all shareholders for their continued support and looks forward to another successful year in 2021
which should see continued development at Adelong.
Ian Hastings
Chairman
1
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
CORPORATE GOVERNANCE STATEMENT
The Board of Directors of 3D Resources Limited (the Company) is committed to the principle of good practice in corporate
governance. The Board believes that a genuine commitment to good corporate governance is essential to the performance and
sustainability of the Company's business and as such depends upon the corporate culture, values and behaviours which underlies
its day-to-day activities.
The Board continually reviews its corporate governance practices and regularly monitors developments in good corporate
governance practices both in Australia and overseas. Where International and Australian guidelines are not consistent, the good
practice guidelines of the ASX Corporate Governance Council has been adopted as the minimum base for corporate governance
practices.
Board of Directors
The Board has adopted a former charter which allocates responsibilities between the Board and management of the Company
which is available from the corporate governance section of the Company's website at www.3dresources.com.au. The charter
details the composition, responsibilities and code of conduct under which the Board operates. The Board has resolved unanimously
that the Company will at all times aspire to "good practice" in Corporate Governance.
Unless otherwise indicated in this statement, the practices specified in the charter have been followed throughout the reporting
period and will remain in force until amended by resolution of the Board.
Role of the Board
The Board acknowledges its accountability to shareholders for creating shareholder value within a framework that protects the rights
and interest of shareholders and ensures the Company is properly managed. The Board aims to achieve these objectives through
the adoption and monitoring of strategies, plans, policies and performance as follows:
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Providing input info, and approval of, the Group's strategic direction; approval and monitoring of budgets and business plans;
and ensuring that appropriate resources are available, including capital management and budgeting for major capital
expenditure.
Approving the Group's system of risk management, monitoring their effectiveness and maintaining a dialogue with the Group's
auditors;
Considering, approving and monitoring internal and external financial and other reporting, including reporting to shareholders,
the ASX and other stakeholders;
Selection and evaluation of Directors, the Managing Director, senior executives and planning for their succession;
Setting the Managing Director and Director's remuneration within shareholder approved limits and ensuring that the
remuneration and conditions of service of senior executives are appropriate;
Ensuring, and setting standards for ethical behaviour and compliance within the Group's own governing documents, including
the Group's Code of Conduct and corporate governance standards.
Board Processes
The Board aims to perform its role and objectives through the adoption and monitoring of strategies, plans, policies and
performance; the review of the Managing Director and senior management's performance, conduct and reward; monitoring of the
major risks of the Company's business; and by ensuring the Company has policies and procedures to satisfy its legal and ethical
The Board determines the strategic direction of the Company and sets policies accordingly. In addition to maintaining oversight of
the Company's executive management and operations, the Board monitors substantive issues such as ethical standards and social
environmental responsibilities.
Composition of the Board
The names of the current Directors of the Company at the date of this statement are set out in the Directors' Report accompanying
this financial report. The composition of the Board is determined using the following principles:
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a maximum of nine Directors and a minimum of three Directors;
a Non-Executive Director as Chairman;
a majority of Non-Executive Directors; and
a balance of independent and non-independent Directors.
The Board is currently comprised of three Directors; two Non-Executive Directors and one Executive Director. The Company's
Constitution provides for a maximum of 9 directors. The Board periodically reviews its size as appropriate. The Managing Director,
who is appointed by the Board, attends all Board meetings where possible.
2
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
CORPORATE GOVERNANCE STATEMENT
Directors are considered to be independent if they are not major shareholders, are independent of management, and are free from
any business or other relationship that could materially interfere with their exercise of free and independent judgement. Mr
Chegwidden is considered to fall within this category.
Mr Hastings and Mr Mitchell are considered to be non-independent Directors as they are major shareholders in the Company. Mr
Mitchell also provides management services to the Company.
The Board regards the present composition of Directors and Board Committees as a good balance at this stage of the Company's
development with the appropriate mix of expertise, experience and ability to represent the interest of all shareholders.
Future Director appointees will receive a formal letter of appointment setting out the responsibilities, rights, terms and conditions of
their appointment. Directors participate in a comprehensive induction which covers the operations, financial position, strategic and
risk management issues, as well as the operation of the Board and any sub-committees.
Meetings
The Board meets on a regular basis to retain full and effective control and monitor executive management. During the financial year
to 30 June 2020, the full Board met 5 times. The Directors' attendance at meetings is detailed in the Directors' Report.
Members of the management team may attend meetings at the invitation of the Board.
Role of Chairman and Managing Director or Chief Executive Officer (CEO)
The Chairman is a non-independent Director elected by the full Board and he has not previously been an employee of the Company.
The Chairman is responsible for leading the Board, ensuring Directors are properly briefed in all matters relevant to their role and
responsibilities, facilitating Board discussions and managing the Board's relationship with the Company's senior executives.
The Managing Director is responsible for implementing the Group's strategies and policies. The Board Charter specifies that these
are separate roles to be undertaken by separate people.
Terms of Office
The Board reviews its performance and composition on an annual basis and aims to have members with high levels of intellectual
ability, experience, soundness of judgement and integrity to maximise its effectiveness and contribution. Directors serve a maximum
three-year term before being required to be re-elected by the Company's members. The Company's constitution provides that at
least one third (or the nearest whole number) of directors must retire at each Annual General Meeting, but are eligible for re-election
at that meeting. There is no compulsory retiring age.
Independent professional advice
In performing their duties, Directors have the right to seek independent, professional advice at the Company's expense, in
furtherance of their duties as Directors, with the approval of the Chairman, which approval shall not be unreasonable withheld.
Board committees
The Company currently has no committees, the tasks that would ordinarily be assigned to a committee are undertaken by the full
board of the Company.
Code of business conduct
The Board has adopted a Code of Conduct (the Code) and a policy "Behaviour Standards - Standards of Business Conduct" setting
out parameters for ethical behaviour and business practices which applies to all of the Company's Directors, officers and
employees. The Code is regularly reviewed and updated as necessary to ensure it reflects the highest standards of behaviour and
professionalism necessary to maintain confidence in the Group's integrity. In summary, the Code requires that at all times, all group
personnel act with the utmost integrity, objectivity and in compliance with both the letter and the spirit of the law and the Company's
best interest.
Conflicts of interest
All Directors of the Company must keep the Board advised, on an ongoing basis, of any private interest that could potentially conflict
with the interests of the Company. Where the Board believes that a significant conflict exists, the Director or Directors concerned do
not receive the relevant board papers and is excused at the meeting whilst the item is considered. The Board has developed
procedures to assist Directors in disclosing potential conflicts of interest.
All Directors and executive officers of the Company are required to disclose to the Company any material transaction, commercial
relationship or corporate opportunity that reasonably could be expected to give rise to such a conflict.
Insider trading
Trading in shares by any Director or senior executive of the Company whether during a blackout period which incorporates the
periods between the close of each financial quarter and the release of quarterly, half yearly interim and full year results by the
Company and 30 Days prior to the Company's AGM or not requires the express written approval of the Chairman before any trading
is conducted or the entry into any share trading agreements in accordance with the Company's share trading policy.
3
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
CORPORATE GOVERNANCE STATEMENT
Fair dealing and ethical standards
The Code requires all directors, officers and employees of the Company to behave honestly and ethically at all times with all
stakeholders, people and other organisation.
The Directors are satisfied that the Company has complied with its policies on ethical standards, including trading in securities.
Financial Reporting
Reporting Standards
The Company is committed to providing shareholders with clear, transparent, and high quality financial information in a timely
manner. The Company's continuous disclosure policy underpins this approach.
The financial reports of the Company are produced in accordance with International Financial Reporting Standards, other
authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act. The financial statements and
reports are subject to review every half year and the auditor issues an audit opinion accompanying the full year results for each
year.
External auditors
The Company policy is to appoint external auditors who clearly demonstrate quality and independence. The performance of the
external auditor is reviewed annually, taking into consideration assessment of performance, existing value and tender costs.
An analysis of fees paid to external auditors, including a breakdown of fees for non-audit services, is provided in Note 7 to the
financial statements. It is the policy of the external auditors to provide an annual declaration of their independence to the Board.
The external auditor is requested to attend the annual general meeting either in person or via phone linkup and be available to
answer shareholder questions about the conduct of the audit and the preparation and content of the audit report.
Management Certification
The Company requires that the Managing Director and the Company Secretary make the following certifications to the Board:
1.
2.
that the Company's financial reports are complete and present a true and fair value, in all material respects, of the
financial condition and operational results of the Company and Group and are in accordance with relevant accounting
standards;
that the above statement is founded on a sound system of risk management together with internal compliance and control
which implements the policies adopted by the board and that the Company's risk management and internal compliance
and control is operating efficiently and effectively in all material respects.
Risk assessment
The Board is responsible for ensuring there are adequate policies in relation to risk management, compliance and internal control
systems. In summary, the Company's policies are designed to ensure strategic, operational, legal, reputation and financial risks are
identified, assessed and efficiently managed and monitored to enable achievement of the Company's business objectives.
Considerable importance is placed on maintaining a strong control environment. There is an organisational structure with clearly
drawn lines of accountability and delegation of authority. Adherence to the Code of Conduct is required at all times and the Board
actively promotes a culture of quality and integrity.
Detailed control procedures cover management accounting, purchases and payments, financial reporting, capital expenditure
requests, project appraisal, environment, health and safety, IT security, compliance, and other risk management issues. There is a
systematic review and monitoring of key business operational risks by management which reports on current future risks and
mitigation activities to the Board.
The Company recognises the importance of environmental and occupational health and safety (OH&S) issues and is committed to
the highest levels of performance with the systematic identification of environmental and OH&S issues to ensure they are managed
in a structured manner. This systems allows the Company to:
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monitor its compliance with all relevant legislation;
continually assess and improve the impact of its operations on the environment;
encourage employees to actively participate in the management of environmental and OH&S issues;
work with industry peers to raise standards;
use energy and other resources efficiently; and
encourage the adoption of similar standards by the entity's principle suppliers and contractors with particular emphasis on
exploration contractors.
4
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
CORPORATE GOVERNANCE STATEMENT
Continuous disclosure and shareholder communication
The Company is a disclosing entity under the Corporations Act and is subject to the continuous disclosure requirements under ASX
Listing Rules. Communications with shareholders and other stakeholders are given a high priority. In addition to statutory disclosure
documents such as Annual Reports and Quarterly activity reports, the Board is committed to keeping all stakeholders informed of all
material developments that affect the Company in a timely manner.
The Company has a formal policy and comprehensive procedures on continuous disclosure. Once the Board or management
becomes aware of information concerning the Company that would be likely to have a material effect on the price or value of the
Company's securities (and which does not fall within the exceptions to the disclosure requirements contained in the Listing Rules),
that information is released to the ASX.
The Board has appointed the Company Secretary (or in his absence, the Chairman) as the person responsible for communications
to ASX. This role includes responsibility or ensuring compliance with the continuous disclosure requires of ASX Listing Rules and
overseeing and co-ordinating information disclosure to the ASX. All Company announcements, presentations or other briefings are
posted on the Company's website after release to the ASX.
The Board also endorses full and regular communication with and between Directors, the Managing Director, senior management
and the external auditors.
All shareholders have the opportunity to elect to receive a copy of the Company's annual report at the same time they receive by
post a copy of the Notice of the Annual General Meeting.
Full use is made of annual general meetings to inform shareholders of current developments through appropriate presentations and
to provide opportunities for questions.
Diversity Policy
Diversity includes, but is not limited to, gender, age, ethnicity and cultural background. The company is committed to diversity and
recognises the benefits arising from employee and board diversity and the importance of benefitting from all available talents.
Accordingly, the company has established a diversity policy.
This diversity policy outlines requirements for the Board to develop measurable objectives for achieving diversity, and annually
assess both the objectives and the progress in achieving those objectives. Accordingly, the Board has developed the following
objectives regarding gender diversity and aims to achieve these objectives as Director and senior executive positions become
vacant and appropriately qualified candidates become available:
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achieve a diverse and skilled workforce, leading to continuous improvement in the achievement of its corporate goals;
the development of clear criteria on behavioural expectations in relation to promoting diversity;
create a work environment that values and utilises the contributions of employees with diverse backgrounds, experiences
and perspectives;
ensure that personnel responsible for recruitment take into account diversity issues when considering vacancies; and
create awareness in all employees of their rights and responsibilities with regards to fairness, equity and respect for all
aspects of diversity.
The number of women employed by the Group and their employment classification are as follows:
Women on the Board
Women in senior management roles
Women employees in the company
2020
2019
%
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No.
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%
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No.
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5
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
CORPORATE GOVERNANCE STATEMENT
Compliance with ASX Corporate Governance Council Good Practice Recommendations
The table below outlines each of the ASX Best Practice Recommendations and the Company's compliance with those
Principles and Recommendations
Complied
Note
Principle 1: Lay solid foundations for management and oversight
Recommendation 1.1
A listed entity should have and disclose a board charter setting out:
(a)
(b)
the respective roles and responsibilities of its board and management; and
those matters expressly reserved to the board and those delegated to management.
Recommendation 1.2
A listed entity should:
(a)
undertake appropriate checks before appointing a director or senior executive or putting
someone forward for election as a director; and
provide security holders with all material information in its possession relevant to a decision on
whether or not to elect or re-elect a director.
(b)
Recommendation 1.3
A listed entity should have a written agreement with each director and senior executive setting out the
terms of their appointment.
Recommendation 1.4
The company secretary of a listed entity should be accountable directly to the board, through the
chair, on all matters to do with the proper functioning of the board.
Recommendation 1.5
A listed entity should:
(a)
(b)
have and disclose a diversity policy;
through its board or a committee of the board set measurable objectives for achieving gender
diversity in the composition of its board, senior executives and workforce generally; and
(c)
disclose in relation to each reporting period:
the measurable objectives set for that period to achieve gender diversity;
the entity's progress towards achieving those objectives; and
(1)
(2)
(3) either:
(A)
(B)
the respective proportions of men and women on the board, in senior executive positions
and across the whole workforce (including how the entity has defined "senior executive" for
these purposes); or
if the entity is a "relevant employer" under the Workplace Gender Equality Act, the entity's
most recent "Gender Equality Indicators", as defined in and published under that Act.
Recommendation 1.6
A listed entity should:
(a)
have and disclose a process for periodically evaluating the performance of the board, its
committees and individual directors; and
(b)
disclose for each reporting period whether a performance evaluation has been undertaken in
accordance with that process during or in respect of that period.
Recommendation 1.7
A listed entity should:
(a)
have and disclose a process for evaluating the performance of its senior executives at least
once every reporting period; and
disclose for each reporting period whether a performance evaluation has been undertaken in
accordance with that process during or in respect of that period.
(b)
6
No
No
Yes
Yes
Yes
No
No
1
1
1
1
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
CORPORATE GOVERNANCE STATEMENT
Principle 2: Structure the Board to be effective and add value
Recommendation 2.1
The board of a listed entity should:
(a) have a nomination committee which:
(1) has at least three members, a majority of whom are independent directors; and
(2)
is chaired by an independent director,
and disclose:
(3)
(4)
(5)
the charter of that committee;
the members of the committee; and
as at the end of each reporting period, the number of times the committee met throughout
the period and the individual attendances of the members at those meetings; or
(b)
if it does not have a nomination committee, disclose that fact and the processes it employs to
address board succession issues and to ensure that the board has the appropriate balance of
skills, knowledge, experience, independence and diversity to enable it to discharge its duties
and responsibilities effectively.
Recommendations 2.2
A listed entity should have and disclose a board skills matrix setting out the mix of skills that the
board currently has or is looking to achieve in its membership.
Recommendation 2.3
A listed entity should disclose:
(a)
(b)
the names of the directors considered by the board to be independent directors;
if a director has an interest, position, affiliation or relationship of the type described in Box 2.3
but the board is of the opinion that it does not comprise the independence of the director, the
nature of the interest, position or relationship in question and an explanation of why the board is
of that opinion; and
(c)
the length of service of each director.
Recommendations 2.4
A majority of the board of a listed entity should be independent directors.
Recommendations 2.5
The chair of the board of a listed entity should be an independent director and, in particular, should
not be the same person as the CEO of the entity.
Recommendations 2.6
A listed entity should have a program for inducting new directors and for periodically reviewing
whether there is a need for existing directors to undertake professional development to maintain the
skills and knowledge needed to perform their role as directors effectively.
Principle 3 - Instil a culture of acting lawfully, ethically and responsibly
Recommendation 3.1
A listed entity should articulate and disclose its values.
Recommendation 3.2
A listed entity should:
(a)
(b)
have and disclose a code of conduct for its directors, senior executives and employees; and
ensure that the board or a committee of the board is informed of any material breaches of that
code by a director or senior executive; and
any other material breaches of that code that call into question the culture of the organisation.
(c)
Recommendation 3.3
A listed entity should:
(a)
(b) ensure that the board or a committee of the board is informed of any material incidents reported
have and disclose a whistleblower policy; and
under that policy.
7
No
2
3
4
Yes
Yes
No
No
Yes
Yes
Yes
Yes
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
CORPORATE GOVERNANCE STATEMENT
Recommendation 3.4
No
8
A listed entity should:
(a)
(b)
have and disclose an anti-bribery and corruption policy; and
ensure that the board or committee of the board is informed of any material breaches of that
Principle 4 - Safeguard the integrity of corporate reports
Recommendation 4.1
The board of a listed entity should:
(a) have an audit committee which:
(1)
has at least three members, a majority of whom are non-executive directors and a majority
of whom are independent directors; and
(2)
is chaired by an independent director, who is not the chair of the board,
and disclose:
(3)
(4)
(5)
the charter of that committee;
the relevant qualifications and experience of the members of the committee; and
in relation to each reporting period, the number of times the committee met throughout the
period and the individual attendances of the members at those meetings; or
(b)
if it does not have an audit committee, disclose that fact and the process it employs that
independently verify and safeguard the integrity of its corporate reporting, including the
processes for the appointment and removal of the external auditor and the rotation of the audit
engagement partner.
Recommendations 4.2
The board of a listed entity should, before it approves the entity's financial statements for a financial
period, receive from its CEO and CFO a declaration that, in their opinion, the financial records of the
entity have been properly maintained and that the financial statements comply with the appropriate
accounting standards and give a true and fair view of the financial position and performance of the
entity and that the opinion has been formed on the basis of a sound system of risk management and
internal control which is operating effectively.
Recommendations 4.3
A listed entity should disclose its processes to verify the integrity of any periodic corporate report it
releases to the market that is not audited or reviewed by an external auditor.
Principle 5 - Make timely and balanced disclosure
Recommendations 5.1
A listed entity should have and disclose a written policy for complying with its continuous disclose
obligations under listing rule 3.1
Recommendations 5.2
A listed entity should ensure that its board receives copies of all material market announcements
promptly after they have been made.
Recommendations 5.3
A listed entity that gives a new and substantive investor or analyst presentation should release a
copy of the presentation materials on the ASX Market Announcements Platform ahead of the
presentation.
Principle 6 - Respect the rights of security holders
Recommendations 6.1
A listed entity should provide information about itself and its governance to investors via its website.
Recommendations 6.2
A listed entity should have an investor relations program that facilitates effective two-way
communication with investors.
8
No
5
Yes
Yes
Yes
Yes
Yes
Yes
Yes
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
CORPORATE GOVERNANCE STATEMENT
Recommendations 6.3
A listed entity should disclose how it facilitates and encourages participation at meetings of security
holders.
Recommendations 6.4
A listed entity should ensure that all substantive resolutions at a meeting of security holders are
decided by a poll rather than by a show of hands.
Recommendations 6.5
A listed entity should give security holders the option to receive communications from, and send
communications to, the entity and its security registry electronically.
Yes
Yes
Yes
No
6
Yes
Yes
Yes
Principle 7 - Recognise and manage risk
Recommendation 7.1
The board of a listed entity should:
(a) have a committee or committees to oversee risk, each of which:
(1)
(2)
has at least three members, a majority of whom are independent directors; and
is chaired by an independent director,
and disclose:
(3)
(4)
(5)
the charter of that committee;
the members of the committee; and
in relation to each reporting period, the number of times the committee met throughout the
period and the individual attendances of the members at those meetings; or
(b)
If it does not have a risk committee or committees that satisfy (a) above, disclose that fact and
the processes it employs for overseeing the entity's risk management framework.
Recommendation 7.2
The board or a committee of the board should:
(a)
review the entity's risk management framework at least annually to satisfy itself that it continues
to be sound and that the entity is operating with due regard to the risk appetite set by the board;
and
disclose, in relation to each reporting period, whether such a review has taken place.
(b)
Recommendation 7.3
A listed entity should disclose:
(a)
(b)
if it has an internal audit function, how the function is structure and what role it performs; or
if it does not have any internal audit function, that fact and the processes it employs for
evaluating and continually improving the effectiveness of its governance, risk management and
internal control processes.
Recommendations 7.4
A listed entity should disclose whether it has any material exposure to environmental or social risks
and, if it does, how it manages or intends to manage those risks.
9
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
CORPORATE GOVERNANCE STATEMENT
Principle 8 -Remunerate fairly and responsibly
Recommendation 8.1
The board of a listed entity should:
(a) have a remuneration committee which:
No
7
(1)
(2)
has at least three members, a majority of whom are independent directors; and
is chaired by an independent director,
and disclose:
(3)
(4)
(5)
the charter of that committee;
the members of the committee; and
in relation to each reporting period, the number of times the committee met throughout the
period and the individual attendances of the members at those meetings; or
(b)
if it does not have a remuneration committee, disclose that fact and the processes it employs for
setting the level and composition of remuneration for directors and senior executives and
ensuring that such remuneration is appropriate and not excessive.
Recommendations 8.2
A listed entity should separately disclose its policies and practices regarding the remuneration of non-
executive directors and the remuneration of executive directors and other senior executives.
Recommendation 8.3
A listed entity which has an equity-based remuneration scheme should:
(a)
have a policy on whether participants are permitted to enter into transactions (whether through
the use of derivatives or otherwise) which limit the economic risk of participating in the scheme;
and
(b)
disclose that policy or a summary of it.
Yes
Yes
Note 1
All Executives and Officers of the Company are expected to contribute to the Company's activities and the performance of Senior
Executives are reviewed informally by the Chairman and where desirable is discussed with the individual concerned. Due to the
small size of the Board and the limited number of Senior Executives, the Company is not proposing a formal review mechanism at
this moment.
Note 2
The Company currently has no nomination committee.
The Board considers those matters and issues arising that would usually fall to a nomination committee. The Board considers that
no efficiencies or other benefits would be gained be establishing a separate nomination committee.
Note 3
The Board Charter requires that where practical, the majority of the Board will consist of independent Directors. Details of each
Director's independence is provided within the Directors Report, noting Mr John Chegwidden is the only independent director. Mr
Ian Hastings and Mr Peter Mitchell are not deemed to be independent due to the nature of their shareholdings in the Company.
Note 4
The current Chairman of the Company, Mr Ian Hastings, is not deemed an independent director due to his shareholding in the
Company.
10
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
CORPORATE GOVERNANCE STATEMENT
Note 5
The Company currently has no audit committee.
The Board considers those matters and issues arising that would usually fall to an audit committee. The Board considers that no
efficiencies or other benefits would be gained by establishing a separate audit committee.
Note 6
Due to the size and nature of the existing Board and the magnitude of the Company's operations, the Company does not currently
have a Risk Management Committee. The full Board carries out the duties that would ordinarily be assigned to the Risk
Management Committee and devotes time annually to fulfilling the rules and responsibilities associated with overseeing risk and
maintaining the entity's risk management framework and associated internal compliance and control procedures.
Note 7
The Company currently has no remuneration committee.
Due to the small size and structure of the Board and the limited number of employees, a separate remuneration committee is not
considered to add any efficiency to the process of determining the levels of remuneration for the directors and key executives. The
Board considers that it is more appropriate to set aside time at Board meetings each year to specifically address matters that would
ordinarily fall to a remuneration committee.
Note 8
The Company has not adopted an anti-bribery and corruption policy. However, the matters that would be dealt with in such a policy
have largely been addressed within the broader corporate governance of the Company. The Company would look to adopt a policy
within the next 12 months together with a review of all its corporate governance policies.
11
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
DIRECTORS' REPORT
The Directors of 3D Resources Limited submit herewith the financial report of 3D Resources Limited and its subsidiaries ("the Group") for the
year ended 30 June 2020.
General Information
Directors
The names and details of the Group's Directors in office during the financial year and until the date of this report are as follows:
Directors were in office for this entire period unless otherwise stated.
Ian Hastings
Chairman
Non-Executive Director
appointed 23 July 2010
Peter Mitchell
Managing Director
Appointed 3 December 2010
John Chegwidden (CA)
Non-Executive Director
Appointed 1 November 2006
Company Secretary
Andrew J Draffin
Appointed 1 July 2013
Mr Hastings is a corporate advisor with many years' experience in the
field of finance, investment, securities markets compliance and
regulation and has almost 40 years experience in the finance industry
and regulatory bodies. He is a former Member of the ASX and former
Principal of several ASX Member Stock Brokers. Mr Hastings is a
Practitioner Member (Master Stockbroking) of the Stockbrokers
Association of Australia and holds a Bachelor of Commerce and
Bachelor of Laws Degree.
Other current directorships of listed companies
Gladiator Resources Limited
Former directorships of listed companies in last three years
None
Mr Mitchell is a qualified Geologists with experience in gold, uranium,
mineral sands, and base metals projects, and in recent time, Mr Mitchell
has been focused on coal projects in several countries, including
Australia, China and Indonesia. Mr Mitchell is a former mining advisor to
the Department of Mines & Energy, Northern Territory and has many
years' experience as a Business Development Manager. Mr Mitchell has
also worked as a Corporate Advisor for Lowell Capital where he
provided financial and technical analysis of projects and companies,
including projects in Australia and various other countries such as USA,
China, North Korea, Mongolia, Zambia, Egypt, Romania and Zimbabwe,
and as Resource Analyst for Prudential Bache. Mr Mitchell has
experience in public companies and managed investment schemes and
has held positions including Senior and Chief Geologists for numerous
mining companies in the world.
Other current directorships of listed companies
None
Former directorships of listed companies in last three years
None
Mr Chegwidden has over 20 years' experience as an accountant,
including managing his own chartered accounting practice, providing
advise in management, accounting and taxation, and consulting to
manufacturing, mining, primary production and earthmoving operations.
Mr Chegwidden has a strong knowledge of the mining and resources
sector in Australia, with competencies in exploration, materials
processing, marketing and financial management in relation to junior
mining companies. More recently, he has consulted to a number of
listed companies and negotiated with capital financiers for junior
exploration companies.
Other current directorships of listed companies
None
Former directorships of listed companies in last three years
None
Mr Draffin is a Director of DW Accounting & Advisory Pty Ltd. He holds a
Bachelor of Commerce and is a member of the Chartered Accountants
Australia and New Zealand. Andrew is a Director, Chief Financial Officer
and Company Secretary of listed, unlisted and private companies
operating across a broad range of industries. His focus is on financial
reporting, treasury management, management accounting and
corporate services, areas where he has gained over 20 years of
experience.
12
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
DIRECTORS' REPORT
Shareholdings of directors and other key management personnel
The interests of each Director and any other key management personnel, directly and indirectly, in the shares and options of the Company at
the date of this report are as follows:
Directors and other key management personnel
Ordinary Shares
Share Options
Ian Hastings
Peter Mitchell
John Chegwidden
John Chegwidden*
Andrew Draffin
Note:
160,209,660
161,226,018
41,954,687
650,000
12,501,000
16,500,000
21,750,000
6,437,500
-
-
*John Chegwidden has a beneficial interest in 650,000 ordinary shares held by 189 Project Pty Ltd.
Corporate Information
Corporate Structure
3D Resources Limited is a company limited by shares that is incorporated and domiciled in Australia. 3D Resources Limited have prepared a
consolidated financial report incorporating its subsidiaries (Refer to Note 12 : Interest in Subsidiaries for more information) which it controlled
during the financial year and which are included in the financial statements.
Principal Activities and Change in State of Affairs
The primary focus of the Company during the 2019/20 financial year was its acquisition of the Adelong Gold project by way of purchase of
the assets of Macquarie Gold Ltd. together with all of the issued shares in Challenger Mines Pty. Ltd. located in southern NSW.
Following lengthy due diligence enquiries and negotiations, the Company entered into a Purchase and Sale agreement to buy the Adelong
Gold Project in February 2020 and proceeded with a capital raising to finance the acquisition. On 15 May 2020 the company completed the
acquisition with a total cost of $1.46Milion.
The Adelong Gold project was considered an excellent acquisition for the Company as it held at the time of purchase:
-
-
-
-
-
JORC compliant resources of 127,000oz of gold (see releases for details);
A processing plant with all the approvals for development;
Land and property holdings;
An extensive exploration data base with over 36,000m of drilling; and
Excellent exploration potential in its 70km2 Exploration License, its 1.5km2 Mining Lease and 16 Mining Lease (Claims).
Following its acquisition, the Company has focused on expanding the projects potential and extracting value through further exploration and
through evaluation of the vast data base, which is expected to lead to upgrading and expansion of the existing plant in preparation for future
production.
This work to date has resulted in:
-
-
-
A 42% increase in resources for the Adelong Gold project taking the total resources to 180,600oz (as announced on 17th August
2020);
An initial drilling program (completed in September 2020) which restarted exploration drilling on the project after 7 years; and
Preparation of preliminary plans for upgrading the plant to increase throughput and improve efficiencies.
Work on the Adelong Gold Project continues towards the objective of a concise development plan by the end of 2020 and recommencement
of production as soon as possible.
Negotiation with potential purchasers of the Halls Creek copper project have also continued and potentially could lead to a transaction in the
forthcoming year.
During the year there have also been positive developments for the Cosmo Gold Project following the formation of a new Prescribed Body
Corporate in September 2019 to administer the Aboriginal Reserve on which the project lies. Negotiations have commenced on gaining an
access agreement which would permit exploration to restart over this highly prospective and largely unexplored greenstone belt. The scale of
this project is significant with a large 830km2 tenement package which was part of the rationale to spin out this project as announced after
the end of the period (subject to shareholder approval). A general meeting to approve this proposal is expected to be held later in 2020.
Dividends
No dividends in respect of the current financial year have been paid, declared or recommended for payment.
Operating and Financial Review
Group Overview
3D Resources Limited was established in July 2006 with a strategy to consolidate and further explore some under-explored mineral
properties located within selected geologically prospective areas in Western Australia. The Company has since expanded its scope in
include the search of projects in other locations within Australia, Asia and the Pacific Region.
13
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
DIRECTORS' REPORT
Financial Overview
Operating Results for the year
The loss for the Group is $601,468 (2019: Loss of $923,266). This result is consistent with the expectation of the costs associated with the
exploration programme and reflected:
-
-
costs associated with managing various exploration programs; and
corporate overheads associated with statutory and regulatory requirements as a consequence of being listed on the Australian
Securities Exchange.
Review of financial position
The net assets of the Group have increased by $2,130,338 from $524,940 as at 30 June 2019 to $2,655,278 as at 30 June 2020. The
Directors believe the Group is in a stable financial position to continue its current programs not withstanding future capital raisings will be
required.
Capital Raising and Capital Structure
During the year under review, the Company issued 2,203,901,000 fully paid ordinary shares raising a total of $2,662,661, net of capital
raising costs.
Summary of options on issue
During the year, 199,145,120 unlisted options were issued,
130,000,000 options have an exercise price of $0.003 (0.3 cents) and expiry date of 7 February 2022.
69,145,120 options have an exercise price of $0.005 (0.5 cents) and expiry date of 31 May 2022.
Events after the Reporting Period
Capital Structure
Post balance date the company has raised $206,500 via the placement of the shortfall from Its Replacement Options offer pursuant to the
Prospectus dated 22 April 2020 resulting in 275,694,324 new options being issued with exercise price of $0.005 and an expiry of 31 March
2022.
$1,225,000 was raised in August via the placement of 245,000,000 shares at $0.005 together with one attaching option for every two shares
placed with a exercise price of $0.007 and an expiry of 31 August 2022.
A further $162,750 has been raised following the exercise of options to fully paid ordinary shares in the Company.
Corporate
In August, the Company announced its intention to seek shareholder approval for a initial public offering (IPO) of it wholly owned subsidiary
Cosmo Gold Pty Ltd that holds the Company’s interest in the Cosmo Newbery Project. The Company will convene a meeting of shareholders
to approve the proposed IPO subject to obtaining any regulatory approvals required.
The Company has mandated a Lead Manager and Underwriter of the Cosmo IPO. Under the terms of the mandate it is currently expected
that Cosmo Gold would complete a preliminary seed raising (subject to all necessary approvals including shareholder approval) the proceeds
from which a cash payment of $250,000 would be paid to the Company as part consideration for the Cosmo Newbery assets that were held
directly by 3D Resources. It is proposed to complete an underwritten IPO of not less than $4 million with the Company retaining an interest of
not less than 30% interest in Cosmo Gold on a fully diluted, fully funded basis. It is then proposed to distribute the shares in-specie to 3D
Resources’ shareholders.
Exploration
The Company commenced its maiden drilling program at the Adelong Goldfield Project. The initial 1,000 metre drilling program is to focus on
the Donkey Hill and Currajong deposits and drill approximately 650 metres at Currajong, with the remaining 350 metres at Donkey Hill. The
objective of the drilling program is to accurately model and test the existing mineralisation at Donkey Hill and Currajong.
14
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
DIRECTORS' REPORT
Future Developments, Prospects and Business Strategies
Disclosure of information regarding likely developments in the operations of the Group in future financial years and the expected results of
those operations are likely to result in unreasonable prejudice to the Group. Accordingly, this information has not been disclosed in this
report.
Environmental Issues
The Group is subject to and compliant with all aspects of environmental regulation with regards to its exploration activities. The Directors are
not aware of any environmental law that is not being complied with.
Meetings of Directors
During the financial year, 5 meetings of directors (including committees of directors) were held.
Attendances by each director during the year were as follows:
Ian Hastings
Peter Mitchell
John Chegwidden
Indemnifying Officers or Auditor
Directors' Meetings
Number
eligible to
attend
Number
attended
5
5
5
5
5
5
During the year, the Group entered into an insurance policy to insure certain officers of the Company and its controlled entities. The officers
of the Company covered by the insurance policy include the Directors named in this report.
The Directors' and Officers' Liability Insurance provides cover against all costs and expenses that may be incurred in defending civil or
criminal proceedings that fall within the scope of indemnity and that may be brought against the officers in their capacity as officers of the
Company or a related body corporate.
The insurance policy does not contain details of the premium paid in respect of individual officers of the Company. Disclosure of the nature of
the liability cover and the premium paid is subject to a confidentiality clause under the insurance policy.
The Company has entered into an agreement with the Directors and certain officers to indemnify these individuals against any claims and
related expenses which arise as a result of work completed in their respective capabilities.
The Company nor any of its related bodies corporate have provided any insurance for any auditor of the Company or a related body
corporate.
Proceedings on Behalf of Company
No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the
company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.
The company was not party to any such proceedings during the year.
Non-audit Services
There were no non-audit services provided by auditor during the period.
Auditor's Independence Declaration
The lead auditor's independence declaration for the year ended 30 June 2020 has been received and can be found on page 18 of the
Financial Report.
REMUNERATION REPORT - AUDITED
This remuneration report, which forms part of the Directors' report, sets out information about the remuneration of the Group's Directors and
other key management personnel for the year ended 30 June 2020. The prescribed details for each person covered by this report are
detailed below.
Details of directors and other key management personnel
Directors and other key management personnel of the Group during and since the end of the financial year are as follows:
Ian Hastings
Peter Mitchell
John Chegwidden
Andrew Draffin
Non-Executive Chairman
Executive Director (Managing Director)
Non-Executive Director
Company Secretary
15
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
DIRECTORS' REPORT
Remuneration policy
The Company's remuneration policy has been designed to align Director and Executive objectives with shareholder and business objectives
by providing remuneration packages comprising of a fixed remuneration component and an options component. The Board believes the
remuneration policy for its Directors and senior management to be appropriate and effective to attract and retain people with necessary
qualifications, skills and experience to assist the company in achieving its desired results. Due to the size of the company, a remuneration
committee has not been formed.
Remuneration is reviewed on an annual basis, taking into consideration a number of performance indicators. While no performance based
remuneration component has been built into Director and senior management remuneration packages, it is envisaged that as the Company
further progresses, consideration will be given to this component of remuneration.
The Group's earnings and movement in shareholders' wealth for five years to 30 June 2020 are detailed in the following table:
Revenue and other income
887
706
16,889
1,309
2,013
30 June 2020
30 June 2019
30 June 2018
30 June 2017
30 June 2016
Net (loss) /profit before tax
Net (loss) /profit after tax
Share price at start of year
Share price at end of year
Dividends paid
Basic (loss)/earnings per
share
Remuneration Structure
(601,468)
(601,468)
$0.001
$0.003
-
(0.04)
(923,266)
(923,266)
$0.005
$0.001
-
(0.09)
(1,484,763)
(1,484,763)
$0.006
$0.005
-
(0.02)
(771,388)
(771,388)
$0.004
$0.006
-
(0.18)
(970,480)
(970,480)
$0.005
$0.004
-
(0.37)
In accordance with best practice corporate governance, the structure of Non-Executive and Executive director remuneration is separate and
distinct.
Remuneration of Directors and Senior Management
The Directors (both Executive and Non-Executive) and senior management of the Company received remuneration during the year
commencing 1 July 2019 and ending 30 June 2020 based on the following agreements.
Remuneration of Executive Directors
Objective
The Board aims to reward Executives with a level and mix of remuneration commensurate with their position and responsibilities within the
Company and so as to:
reward Executives for Company, business unit and individual performance against targets set by reference to appropriate
benchmarks;
align the interest of Executives with those of shareholders;
link award with the strategic goals and performance of the Company; and
ensure total remuneration is competitive by market standards
-
-
-
-
Structure
In determining the level and mark-up of Executive remuneration, the Board considers external reports on market levels of remuneration for
comparable executive roles. It is the Board's policy that employment contracts are entered into with all senior Executives.
Remuneration of Non-Executive Directors
Objective
The Board seeks to set aggregate remuneration at a level which provides the Group with the ability to attract and retain Directors of the
highest calibre, whilst incurring a cost which is acceptable to shareholders.
Structure
The Constitution and ASX Listing Rules specify that the aggregate remuneration of Non-Executive Directors shall be determined from time to
time by a general meeting of the Company's shareholders. An amount not exceeding the amount determined is then divided between the
Directors as agreed whilst maintaining a surplus amount that can be attributable to further Non-Executive Directors should they be appointed
at any time. The current aggregate remuneration amount is $150,000.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned amongst directors
is reviewed annually. The Board considers advice from external consultants as well as the fees paid to Non-Executive Directors of
comparable companies when undertaking the annual review process.
The Non-Executive Directors are paid a set amount per year. The Non-Executive Directors may receive consultant's fees through related
entities for services rendered on a commercial basis.
Non-Executive Directors have long been encouraged by the Board to hold shares in the Company. It is considered good governance for
Directors to have a stake in the company on whose board he or she sits.
16
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
DIRECTORS' REPORT
Position Held as at 30 June 2020 and any changes during the year Contract details (duration &
Group KMP
Mr Ian Hastings
Mr Peter Mitchell
Mr John Chegwidden
Mr Andrew Draffin
Non-Executive Director and Chairman
Executive Director
Non-Executive Director
Company Secretary
Remuneration of Senior Management
termination)
No fixed term
No fixed term
No fixed term
No fixed term
Remuneration of Directors and other Key Management Personnel (KMP) for the Year Ended 30 June 2020
Short-term
Benefits
Post
employment
Benefits
Salaries, fees Superannuation
$
96,000
96,000
36,000
60,000
288,000
$
-
-
-
-
-
Short-term
Benefits
Post
employment
Benefits
Salaries, fees Superannuation
$
165,584
206,785
36,000
60,000
468,369
$
-
-
-
-
-
Share based
payments
Total
Share based
payments
Shares,
Options
$
$
96,000
96,000
36,000
60,000
288,000
-
-
-
-
-
%
-
-
-
-
Share based
payments
Total
Share based
payments
Shares,
Options
$
$
165,584
206,785
36,000
60,000
468,369
-
-
-
-
-
%
-
-
-
-
Total
outstanding as
at 30 June 2020
$
116,058
141,953
65,791
85,300
409,102
Total
outstanding as
at 30 June 2019
$
194,821
191,853
29,791
44,500
460,964
2020
Group KMP
Mr Ian Hastings
Mr Peter Mitchell
Mr John Chegwidden
Mr Andrew Draffin
2019
Group KMP
Mr Ian Hastings
Mr Peter Mitchell
Mr John Chegwidden
Mr Andrew Draffin
KMP Shareholdings
The number of ordinary shares in 3D Resources Limited held by each KMP of the Group during the financial year are as follows:
Balance at beginning
of Year
Granted as
Remuneration during
the year
Issued on Exercise
of Options during the
year
Other changes
during the year
Balance at End
of Year
Group KMP
Mr Ian Hastings
Mr Peter Mitchell
Mr John Chegwidden
Mr Andrew Draffin
85,209,660
86,226,018
29,454,687
-
-
-
-
-
-
-
-
-
75,000,000
75,000,000
12,500,000
-
160,209,660
161,226,018
41,954,687
-
The number of listed options in 3D Resources Limited held by each KMP of the Group during the financial year are as follows:
Balance at beginning
of Year
Granted as
Remuneration during
the year
Issued on Exercise
of Options during the
year
Other changes
during the year
Balance at End
of Year
Group KMP
Mr Ian Hastings
Mr Peter Mitchell
Mr John Chegwidden
Mr Andrew Draffin
16,500,000
21,900,000
6,437,500
-
-
-
-
-
-
-
-
-
-
-
-
-
16,500,000
21,900,000
6,437,500
-
17
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
DIRECTORS' REPORT
Reimbursement transactions with related parties
Reimbursement of business expenses incurred by the Company and
initially settled by Mr Ian Hastings. All expenses were incurred on an arm's
length basis.
Reimbursement of business expenses incurred by the Company and
initially settled by China Connect, of which Mr Peter Mitchell is the
Manager. All expenses were incurred on an arm's length basis.
Reimbursement of business expenses incurred by the Company and
initially settled by DW Accounting & Advisory Pty Ltd, of which Mr Andrew
Draffin is a director and shareholder. All expenses were incurred on an
arm's length basis.
Shares options granted to directors and executives
No shares or options were granted to Directors or Executives during the year.
2020
$
2019
$
59,904
112,483
46,709
30,100
8,528
9,732
The Directors' Report, incorporating the Remuneration Report, is signed in accordance with a resolution of the Board of Directors made
pursuant to s.298(2) of the Corporations Act 2001.
Mr Peter Mitchell
Dated: 30 September 2020
18
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF 3D RESOURCES LTD I declare that, to the best of my knowledge and belief, during the year ended 30 June 2020 there have been: (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) no contraventions of any applicable code of professional conduct in relation to the audit. MORROWS AUDIT PTY LTD I.L. JENKINS Director Melbourne: 30 September 2020
3D RESOURCES AND CONTROLLED ENTITIES
ABN: 15 120 973 775
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Continuing operations
Revenue and other income
Administration expenses
Audit fees
Share registry costs
Depreciation and amortisation expense
Employee benefits expense
Directors' fees
Consulting fees
Exploration costs
Insurance
Legal and professional fees
Tenancy costs
Travel and accomodation
Finance costs
Loss before income tax
Tax expense
Net Loss from continuing operations
Net Loss for the year
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss when specific
conditions are met:
Exchange differences on translating foreign operations, net of tax
Total other comprehensive income for the year
Total comprehensive income for the year
Earnings per share
From continuing and discontinued operations:
Basic and diluted loss per share (cents)
Note
3
4
5
Consolidated Group
2020
$
2019
$
887
(79,847)
(27,100)
(14,049)
(33,601)
(3,413)
(156,000)
(8,830)
11,596
(16,317)
(148,637)
(19,922)
(106,196)
(39)
(601,468)
-
(601,468)
(601,468)
706
(120,850)
(26,800)
(12,072)
(18,533)
-
(130,000)
(282,150)
(85,143)
(25,460)
(69,778)
(15,009)
(138,177)
-
(923,266)
-
(923,266)
(923,266)
-
-
37
37
(601,468)
(923,229)
8
(0.04)
(0.09)
The accompanying notes form part of these financial statements.
20
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Exploration expenditure
Property, plant and equipment
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Retained earnings
TOTAL EQUITY
Consolidated Group
Note
2020
$
2019
$
9
10
14
11
13
15
16
24
405,957
54,783
647,692
1,108,432
1,062,554
955,399
2,017,953
3,126,385
471,107
471,107
471,107
2,655,278
164,087
22,011
8,424
194,522
837,730
-
837,730
1,032,252
507,312
507,312
507,312
524,940
15,009,488
69,270
(12,423,480)
2,655,278
12,346,827
36,125
(11,858,012)
524,940
The accompanying notes form part of these financial statements.
21
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Issued Capital
Accumulated
Losses
Option Reserve Foreign Currency
Total
Translation
Reserve
$
$
$
$
$
Consolidated Group
Balance at 1 July 2018
Comprehensive income
Loss for the year
Other comprehensive income for the year
Total comprehensive income for the year
Transactions with owners, in their capacity as owners, and
other transfers
Shares issued during the year
Transaction costs net of tax
Total transactions with owners and other transfers
11,860,705
(10,934,746)
36,000
-
-
-
(923,266)
-
(923,266)
508,953
(22,831)
486,122
-
-
-
-
-
-
-
-
-
88
-
37
37
-
-
-
Balance at 30 June 2019
12,346,827
(11,858,012)
36,000
125
962,047
(923,266)
37
(923,229)
508,953
(22,831)
486,122
524,940
Balance at 1 July 2019
Comprehensive income
Loss for the year
Other comprehensive income for the year
Total comprehensive income for the year
Transactions with owners, in their capacity as owners, and
other transfers
Shares issued during the year
Transaction costs net of tax
Options issued during the year
Options lapsed during the year
Total transactions with owners and other transfers
Balance at 30 June 2020
12,346,827
(11,858,012)
36,000
125
524,940
-
-
-
(601,468)
-
(601,468)
2,836,126
(173,465)
-
-
2,662,661
-
-
-
36,000
36,000
15,009,488
(12,423,480)
-
-
-
-
-
69,145
(36,000)
33,145
69,145
-
-
-
-
-
-
-
-
(601,468)
-
(601,468)
2,836,126
(173,465)
69,145
-
2,731,806
125
2,655,278
The accompanying notes form part of these financial statements.
22
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received
Payments to suppliers and employees
Net cash generated by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration expense
Payment for subsidiary, net of cash acquired
Payment for security bonds
Net cash (used in)/generated by investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Proceeds from issue of options
Payments for capital raising costs
Net cash provided by (used in) financing activities
Net increase in cash held
Cash and cash equivalents at beginning of financial year
Cash and cash equivalents at end of financial year
Consolidated Group
Note
2020
$
2019
$
481
(363,428)
(362,947)
(111,794)
(1,410,000)
(211,594)
(1,733,388)
2,486,125
69,145
(217,065)
2,338,205
241,870
164,087
405,957
958
(462,896)
(461,938)
(226,555)
-
-
(226,555)
508,953
-
(39,320)
469,633
(218,860)
382,947
164,087
20a
9
The accompanying notes form part of these financial statements.
23
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
The Directors of 3D Resources Limited and its subsidiaries ("the Group") submit herewith the annual report of the Group for the financial year ended 30 June
2020. The separate financial statements of the parent entity, 3D Resources Limited, have not been presented within this financial report as permitted by the
Corporations Act 2001.
The financial statements were authorised for issue on 30 September 2020 by the directors of the company.
Note 1
Summary of Significant Accounting Policies
Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, Australian
Accounting Interpretations, and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The Group is
a for-profit-entity for financial reporting purposes under the Australian Accounting Standards.
Australian Accounting Standards set out accounting policies that the Australian Accounting Standards Board has concluded would result in financial statements
containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the
financials statements and notes also comply with the International Financial Reporting Standards as issued by the IASB. Material accounting policies adopted in
the preparation of the financial statements are presented below and have been consistently applied unless stated otherwise.
Except for cash flow information, the financial statements have been prepared on an accrual basis and are based on historical costs, modified, where applicable,
by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
(a)
Principles of Consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by 3D Resources Limited at the end of the reporting
period. A controlled entity is any entity over which 3D Resources Limited has the ability and right to govern the financial and operating policies so as to
obtain benefits from the entity's activities.
Where controlled entities have entered or left the Group during the year, the financial performance of those entities are included only for the period of the
year that they were controlled. A list of controlled entities are contained in Note 12 to the financial statements.
In preparing the consolidated financial statements, all intragroup balances and transactions between entities in the consolidated group have been
eliminated in full on consolidation.
(b)
Income Tax
The income tax expense (income) for the year comprises current income tax expense (income) and deferred tax expense (income).
Current income tax expense charged to profit or loss is the tax payable on taxable income for the current period. Current tax liabilities (assets) are
measured at the amounts expected to be paid to (recovered from) the relevant taxation authority using tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.
Deferred tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses.
Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to items that are recognised outside
profit or loss or arising from a business combination.
A deferred tax liability shall be recognised for all taxable temporary differences, except to the extent that the deferred tax liability arises from: (a) the initial
recognition of goodwill; or (b) the initial recognition of an asset or liability in a transaction which: (i) is not a business combination; and (ii) at the time of the
transaction, affects neither accounting profit nor taxable profit (tax loss).
Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability, where there is no effect on
accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled
and their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. With
respect to non-depreciable items of property, plant and equipment measured at fair value and items of investment property measured at fair value, the
related deferred tax liability or deferred tax asset is measured on the basis that the carrying amount of the asset will be recovered entirely through sale.
When an investment property that is depreciable is held by the entity in a business model whose objective is to consume substantially all of the economic
benefits embodied in the property through use over time (rather than through sale), the related deferred tax liability or deferred tax asset is measured on the
basis that the carrying amount of such property will be recovered entirely through use.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will
be available against which the benefits of the deferred tax asset can be utilised, unless the deferred tax asset relating to temporary differences arises from
the initial recognition of an asset or liability in a transaction that:
-
-
is not a business combination; and
at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are
not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the
foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation
and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where: (i) a legally enforceable right of set-off
exists; and (ii) the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different
taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future
periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
24
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(Note 1: Summary of significant accounting policies (cont'd))
(d)
Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and
impairment losses.
Property
Freehold land and buildings are carried at their fair value (being the amount for which an asset could be exchanged between knowledgeable willing parties
in an arm's length transaction), based on periodic, but at least triennial, valuations by external independent valuers, less accumulated impairment losses
and accumulated depreciation for buildings.
Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation surplus in equity. Decreases that offset previous
increases of the same asset are recognised against revaluation surplus directly in equity; all other decreases are recognised in profit or loss.
Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the
revalued amount of the asset.
Plant and equipment
Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any accumulated impairment. In the
event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the
estimated recoverable amount and impairment losses are recognised either in profit or loss. A formal assessment of recoverable amount is made when
impairment indicators are present (refer to Note 1(g) for details of impairment).
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets.
The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset's employment and subsequent
disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.
The cost of fixed assets constructed within the consolidated group includes the cost of materials, direct labour, borrowing costs and an appropriate
proportion of fixed and variable overheads.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are
recognised as expenses in profit or loss during the financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, is depreciated on a straight-line
basis over the asset's useful life to the Group commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the
shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Plant and equipment
Depreciation Rate
20%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable
amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are recognised in profit or loss in
the period in which they arise. Gains shall not be classified as revenue. When revalued assets are sold, amounts included in the revaluation surplus relating
to that asset are transferred to retained earnings.
(e)
Exploration and Development Expenditure
Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable area of interest. These costs are only
capitalised to the extent that they are expected to be recovered through the successful development of the area or where activities in the area have not yet
reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit or loss in which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of
depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in relation to that area.
Costs of site restoration are provided for over the life of the project from when exploration commences and are included in the costs of that stage. Site
restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation of the site in
accordance with local laws and regulations and clauses of the permits. Such costs have been determined using estimates of future costs, current legal
requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs of site restoration, there is uncertainty
regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly the costs have been determined on the
basis that the restoration will be completed within one year of abandoning the site.
25
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(Note 1: Summary of significant accounting policies (cont'd))
(f)
Financial Instruments
Recognition and Initial Measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the instrument. For financial
assets, this is the date that the Group commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).
Financial instruments (except for trade receivables) are initially measured at fair value plus transactions costs except where the instrument is classified ‘at
fair value through profit or loss’ in which case transaction costs are expensed to profit or loss immediately. Where available, quoted prices in an active
market are used to determine fair value. In other circumstances, valuation techniques are adopted.
Trade receivables are initially measured at the transaction price if the trade receivables do not contain a significant financing component or if the practical
expedient was applied as specified in AASB 15.63.
Classification and Subsequent Measurement
Financial liabilities
Financial instruments are subsequently measured at:
—
—
amortised cost; or
fair value through profit or loss.
A financial liability is measured at fair value through profit and loss if the financial liability is:
—
—
—
a contingent consideration of an acquirer in a business combination to which AASB 3: Business Combinations applies;
held for trading; or
initially designated as at fair value through profit or loss.
All other financial liabilities are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest expense in profit or loss over the
relevant period. The effective interest rate is the internal rate of return of the financial asset or liability. That is, it is the rate that exactly discounts the
estimated future cash flows through the expected life of the instrument to the net carrying amount at initial recognition.
A financial liability is held for trading if:
—
—
—
it is incurred for the purpose of repurchasing or repaying in the near term;
part of a portfolio where there is an actual pattern of short-term profit taking; or
a derivative financial instrument (except for a derivative that is in a financial guarantee contract or a derivative that is in a effective hedging
relationships).
Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging
relationship are recognised in profit or loss.
The change in fair value of the financial liability attributable to changes in the issuer's credit risk is taken to other comprehensive income and are not
subsequently reclassified to profit or loss. Instead, they are transferred to retained earnings upon derecognition of the financial liability. If taking the
change in credit risk in other comprehensive income enlarges or creates an accounting mismatch, then these gains or losses should be taken to profit
or loss rather than other comprehensive income.
A financial liability cannot be reclassified.
Financial assets
Financial assets are subsequently measured at:
—
—
—
amortised cost;
fair value through other comprehensive income; or
fair value through profit or loss.
Measurement is on the basis of two primary criteria:
—
—
the contractual cash flow characteristics of the financial asset; and
the business model for managing the financial assets.
A financial asset that meets the following conditions is subsequently measured at amortised cost:
—
—
the financial asset is managed solely to collect contractual cash flows; and
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount
outstanding on specified dates.
26
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(Note 1: Summary of significant accounting policies (cont'd))
A financial asset that meets the following conditions is subsequently measured at fair value through other comprehensive income:
—
—
—
—
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount
outstanding on specified dates;
the business model for managing the financial assets comprises both contractual cash flows collection and the selling of the financial asset.
By default, all other financial assets that do not meet the measurement conditions of amortised cost and fair value through other comprehensive
income are subsequently measured at fair value through profit or loss.
The Company initially designates a financial instrument as measured at fair value through profit or loss if:
it eliminates or significantly reduces a measurement or recognition inconsistency (often referred to as “accounting mismatch”) that would otherwise
arise from measuring assets or liabilities or recognising the gains and losses on them on different bases;
it is in accordance with the documented risk management or investment strategy, and information about the groupings was documented appropriately,
so that the performance of the financial liability that was part of a group of financial liabilities or financial assets can be managed and evaluated
consistently on a fair value basis;
—
it is a hybrid contract that contains an embedded derivative that significantly modifies the cash flows otherwise required by the contract.
The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time option on initial classification and is
irrevocable until the financial asset is derecognised.
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the statement of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (i.e. when the obligation in the contract is discharged, cancelled or expires). An exchange of an existing
financial liability for a new one with substantially modified terms, or a substantial modification to the terms of a financial liability is treated as an
extinguishment of the existing liability and recognition of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets
transferred or liabilities assumed, is recognised in profit or loss.
Derecognition of financial assets
A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset is transferred in such a way that all the risks and
rewards of ownership are substantially transferred.
All of the following criteria need to be satisfied for derecognition of financial asset:
—
—
—
the right to receive cash flows from the asset has expired or been transferred;
all risk and rewards of ownership of the asset have been substantially transferred; and
the Company no longer controls the asset (i.e. the Company has no practical ability to make a unilateral decision to sell the asset to a third party).
On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the consideration
received and receivable is recognised in profit or loss.
On derecognition of a debt instrument classified as at fair value through other comprehensive income, the cumulative gain or loss previously accumulated in
the investment revaluation reserve is reclassified to profit or loss.
On derecognition of an investment in equity which was elected to be classified under fair value through other comprehensive income, the cumulative gain or
loss previously accumulated in the investment revaluation reserve is not reclassified to profit or loss, but is transferred to retained earnings.
Impairment
The Group recognises a loss allowance for expected credit losses on:
—
—
—
—
—
financial assets that are measured at amortised cost or fair value through other comprehensive income;
lease receivables;
contract assets (e.g. amounts due from customers under construction contracts);
loan commitments that are not measured at fair value through profit or loss; and
financial guarantee contracts that are not measured at fair value through profit or loss.
Loss allowance is not recognised for:
—
—
financial assets measured at fair value through profit or loss; or
equity instruments measured at fair value through other comprehensive income.
Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial instrument. A credit loss is the difference
between all contractual cash flows that are due and all cash flows expected to be received, all discounted at the original effective interest rate of the
financial instrument.
The Group uses the following approaches to impairment, as applicable under AASB 9: Financial Instruments:
—
—
—
—
the general approach
the simplified approach
the purchased or originated credit impaired approach; and
low credit risk operational simplification.
27
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(Note 1: Summary of significant accounting policies (cont'd))
General approach
Under the general approach, at each reporting period, the Group assesses whether the financial instruments are credit-impaired, and if:
—
—
the credit risk of the financial instrument has increased significantly since initial recognition, the Group measures the loss allowance of the financial
instruments at an amount equal to the lifetime expected credit losses; or
there is no significant increase in credit risk since initial recognition, the Group measures the loss allowance for that financial instrument at an amount
equal to 12-month expected credit losses.
Simplified approach
The simplified approach does not require tracking of changes in credit risk at every reporting period, but instead requires the recognition of lifetime expected
credit loss at all times. This approach is applicable to:
—
trade receivables or contract assets that result from transactions within the scope of AASB 15: Revenue from Contracts with Customers and which do
not contain a significant financing component; and
—
lease receivables.
In measuring the expected credit loss, a provision matrix for trade receivables was used taking into consideration various data to get to an expected credit
loss (i.e. diversity of customer base, appropriate groupings of historical loss experience, etc.).
Purchased or originated credit-impaired approach
For a financial asset that is considered credit-impaired (not on acquisition or origination), the Group measures any change in its lifetime expected credit loss
as the difference between the asset’s gross carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original
effective interest rate. Any adjustment is recognised in profit or loss as an impairment gain or loss.
Evidence of credit impairment includes:
—
—
—
—
—
significant financial difficulty of the issuer or borrower;
a breach of contract (e.g. default or past due event);
a lender granting to the borrower a concession, due to the borrower's financial difficulty, that the lender would not otherwise consider;
high probability that the borrower will enter bankruptcy or other financial reorganisation; and
the disappearance of an active market for the financial asset because of financial difficulties.
Low credit risk operational simplification approach
If a financial asset is determined to have low credit risk at the initial reporting date, the Group assumes that the credit risk has not increased significantly
since initial recognition and accordingly it can continue to recognise a loss allowance of 12-month expected credit loss.
In order to make such a determination that the financial asset has low credit risk, the Group applies its internal credit risk ratings or other methodologies
using a globally comparable definition of low credit risk.
A financial asset is considered to have low credit risk if:
—
—
—
there is a low risk of default by the borrower;
the borrower has strong capacity to meet its contractual cash flow obligations in the near term;
adverse changes in economic and business conditions in the longer term may, but not necessarily will, reduce the ability of the borrower to fulfil its
contractual cash flow obligations.
A financial asset is not considered to carry low credit risk merely due to existence of collateral, or because a borrower has a risk of default lower than the
risk inherent in the financial assets, or lower than the credit risk of the jurisdiction in which it operates.
Recognition of expected credit losses in financial statements
At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain or loss in the statement of profit or loss and other
comprehensive income.
The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset.
Assets measured at fair value through other comprehensive income are recognised at fair value, with changes in fair value recognised in other
comprehensive income. Amounts in relation to change in credit risk are transferred from other comprehensive income to profit or loss at every reporting
period.
For financial assets that are unrecognised (e.g. loan commitments yet to be drawn, financial guarantees), a provision for loss allowance is created in the
statement of financial position to recognise the loss allowance.
(g)
Impairment of Assets
At the end of each reporting period, the company assesses whether there is any indication that an asset may be impaired. The assessment will include the
consideration of external and internal sources of information, including dividends received from subsidiaries, associates or joint ventures deemed to be out
of pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being
the higher of the asset’s fair value less costs of disposal and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its
recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g.
in accordance with the revaluation model in AASB 116: Property, Plant and Equipment ). Any impairment loss of a revalued asset is treated as a revaluation
decrease in accordance with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash-generating unit
to which the asset belongs.
Impairment testing is performed annually for goodwill, intangible assets with indefinite lives and intangible assets not yet available for use.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment
loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss,
unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
28
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(Note 1: Summary of significant accounting policies (cont'd))
(h)
Foreign Currency Transactions and Balances
Functional and presentation currency
The functional currency of the Company is the currency of the primary economic environment in which that entity operates. The financial statements are
presented in Australian dollars, which is the Company’s functional currency.
Transaction and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency
monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at
the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in profit or loss, except exchange differences that arise from net
investment hedges.
Exchange differences arising on the translation of non-monetary items are recognised directly in other comprehensive income to the extent that the
underlying gain or loss is recognised in other comprehensive income, otherwise the exchange difference is recognised in the profit or loss.
Group Companies
The financial results and position of foreign operations whose functional currency is different from the entity’s presentation currency are translated as
follows:
—
—
—
assets and liabilities are translated at exchange rates prevailing at the end of the reporting period;
income and expenses are translated at exchange rates on the date of transaction; and
all resulting exchange differences are recognised in other comprehensive income.
Exchange differences arising on translation of foreign operations with functional currencies other than Australian dollars are recognised in other
comprehensive income and included in the foreign currency translation reserve in the statement of financial position and allocated to non-controlling interest
where relevant. The cumulative amount of these differences is reclassified into profit or loss in the period in which the operation is disposed of.
(i)
Employee Benefits
Short-term employee benefits
Provision is made for the Company’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination
benefits) that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related
service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when
the obligation is settled.
The company’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as part of current trade and other
payables in the statement of financial position. The company’s obligations for employees’ annual leave and long service leave entitlements are recognised
as provisions in the statement of financial position.
Other long-term employee benefits
Provision is made for employees’ long service leave and annual leave entitlements not expected to be settled wholly within 12 months after the end of the
annual reporting period in which the employees render the related service. Other long-term employee benefits are measured at the present value of the
expected future payments to be made to employees.
Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures and are discounted at rates
determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the
obligations. Any remeasurements for changes in assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the
periods in which the changes occur.
The company’s obligations for long-term employee benefits are presented as non-current provisions in its statement of financial position, except where the
company does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations
are presented as current provisions.
(j)
Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of
economic benefits will result and that outflow can be reliably measured.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.
(k)
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand and deposits available on demand with banks.
(l)
Revenue and Other Income
Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the
goods and the cessation of all involvement in those goods.
Interest income is recognised using the effective interest method.
All revenue is stated net of the amount of goods and services tax.
29
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(Note 1: Summary of significant accounting policies (cont'd))
(m)
Trade and Other Receivables
Trade and other receivables include amounts due from customers for goods sold and services performed in the ordinary course of business. Receivables
expected to be collected within 12 months at the end of the reporting period are classified as current assets. All other receivables are classified as non-
current assets.
Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any
provision for impairment. Refer to Note 1(f) for further discussion on the determination of impairment losses.
(n)
Trade and Other Payables
Trade and other payables represent the liabilities for goods and services received by the entity that remain unpaid at the end of the reporting period. The
balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. Trade and other payables are initially
measured at fair value and subsequently measured at amortised cost using the effective interest method.
(o)
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian
Taxation Office (ATO).
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the
ATO is included with other receivables or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or
payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.
(p)
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 retrospectively applies an accounting policy, makes a retrospective restatement or reclassifies items in its financial statements, an
additional (third) statement of financial position as at the beginning of the preceding period in addition to the minimum comparative financial statements is
presented.
(q)
Critical Accounting Estimates and Judgements
In applying the Group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets
and liabilities. These estimates and assumptions are made based on past experience and other factors that are considered relevant. Actual results may
differ from these estimates. All estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is reviewed if the revision affects both current and future periods.
The following describes critical judgments that management has made in the process of applying the Group's accounting policies and that have the most
significant effect n the amounts recognised in the financial statements.
Impairment of deferred exploration costs
The Group's accounting policy for exploration expenditure results in some items being capitalised for an area of interest where it is considered likely to be
recoverable in the future where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. Management
is required to make certain estimates and assumptions as to future events and circumstances, which may change as new information becomes available. If
a judgement is made that recovery of a capitalised expenditure is unlikely, the relevant amount will be written off to the income statement.
Environmental Issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or enacted environmental legislation, and the directors'
understanding thereof. At the current stage of the Group's development and its current environmental impact, the directors believe such treatment is
reasonable and appropriate.
Taxation
Balances disclosed in the financial statements and the notes thereto related to taxation are based on the best estimates of the directors. These estimates
take into account both the financial performance and position of the Group as they pertain to current income taxation legislation, and the directors
understanding thereof. No adjustment has been made for pending or future taxation legislation. The current income tax position represents that directors'
best estimate, pending an assessment by the Australian Taxation Office.
(r) Going Concern
The financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and realisation of assets
and the settlement of liabilities in the ordinary course of business.
The Company incurred a loss for the year of $601,468 (2019: $923,266) and net cash outflows from operating activities of $640,947 (2019:$461,938).
These conditions indicate a material uncertainty that may cast significant doubt about the ability of the Company to continue as a going concern. In the
event the above matters are not achieved, the Company will be required to raise funds for working capital from debt or equity source.
The ability of the Company to continue as a going concern is principally dependent upon the ability of the Company to secure funds by raising capital from
equity markets and managing cashflow in line with available funds.
The directors have prepared a cash flow forecast, which indicates that the Company will have sufficient cash flows to meet all commitments and working
capital requirements for the 12 month period from the date of signing this financial report.
Based on the cash flow forecasts and other factors referred to above, the directors are satisfied that the going concern basis of preparation is appropriate.
In particular, given the Company's history of raising capital to date, the directors are confident of the Company's ability to raise additional funds as and when
they are required.
Should the Company be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities other than in the normal
course of business and at amounts different to those stated in the financial statements. The financial statements do not include any adjustments relating to
the recoverability and classification of asset carrying amounts or to the amount and classification of liabilities that might result should the Company be
unable to continue as a going concern and meet its debts as and when they fall due.
30
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 2
Parent Information
The following information has been extracted from the books and records of the financial information of
the parent entity set out below and has been prepared in accordance with Australian Accounting
Standards.
2020
$
2019
$
STATEMENT OF FINANCIAL POSITION
ASSETS
Current Assets
Non-current assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued Capital
Reserves
Retained earnings
TOTAL EQUITY
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Loss for the year
Other comprehensive income
Total comprehensive income
CONTINGENT LIABILITIES
Please refer to Note 19.
COMMITMENTS
Not longer than 1 year
Longer than 1 year and not longer than 5 years
Longer then 5 years
Note 3
Revenue and Other Income
The Group has recognised the following amounts relating to revenue in the statement of profit or loss.
Revenue from continuing operations
Other revenue
(a)
(b)
Interest received
realised foreign currency gain/(loss)
(c) Other miscellaneous revenue
Note 4
Profit for the Year
Profit before income tax from continuing operations includes the following specific
expenses:
Write-off capitalised exploration expenditure
31
428,883
2,700,225
3,129,108
194,519
899,136
1,093,655
405,608
-
405,608
507,311
-
507,311
2,723,500
586,344
15,078,643
12,346,838
-
(12,355,143)
2,723,500
36,000
(11,796,494)
586,344
(558,649)
-
(558,649)
(905,243)
-
(905,243)
370,000
512,000
60,000
942,000
398,000
956,033
59,233
1,413,266
Consolidated Group
2020
$
2019
$
255
2
630
887
709
(3)
-
706
Consolidated Group
2020
$
2019
$
(11,596)
(11,596)
85,143
85,143
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 5
Tax Expense
(a)
The components of tax (expense) income comprise:
Current tax
Deferred tax
Recoupment of prior year tax losses
Under provision in respect of prior years
(b)
The prima facie tax on profit from ordinary activities before income tax is
reconciled to income tax as follows:
Prima facie tax payable on profit from ordinary activities before income tax at
27.5% (2019: 27.5%)
—
consolidated group
Add:
Tax effect of:
— Deferred tax not brought to account
Income tax attributable to entity
Balance of franking account at year end
(c) Deferred tax assets
Tax losses
Other
Set-off deferred tax liabilities
Net deferred tax liabilities
Less deferred tax assets not recognised
(d) Deferred tax liabilities
Exploration expenditure
Set-off deferred tax liabilities
Net deferred tax liabilities
(e) Deferred tax assets
Consolidated Group
2020
$
2019
$
-
-
-
-
-
-
-
-
-
-
(165,404)
(253,898)
165,404
-
-
253,898
-
-
nil
nil
3,235,133
95,482
3,330,615
(292,202)
3,038,413
(3,038,413)
-
292,202
292,202
(292,202)
-
(292,202)
3,025,895
65,879
3,091,774
(230,376)
2,861,398
(2,861,398)
-
230,376
230,376
(230,376)
-
(230,376)
Unused tax losses for which no deferred tax asset has been recognised
12,113,650
11,352,783
Potential deferred tax assets attributable to tax losses and exploration expenditure carried forward have not been brought to account at 30 June 2020
because the directors do not believe it is appropriate to estimate the realisation of the deferred tax assets as probable at this point in time. These benefits
will only be obtained if:
-
-
-
the company derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the loss and
exploration expenditure to be realised;
the company continues to comply with conditions for deductibility imposed by law; and
no changes in tax legislation adversely affect the company in realising the benefit from the deductions for the loss incurred and exploration
expenditure.
32
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 6
Key Management Personnel Compensation
Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or payable to each member of the Group’s key
management personnel (KMP) for the year ended 30 June 2020.
The totals of remuneration paid to KMP of the company and the Group during the year are as follows:
Short-term employee benefits
Total KMP compensation
The table below reconciles the total remuneration paid to KMPs of the company and the Group.
Directors fees
Consulting fees paid to Directors
Company secretarial and accounting fees
Less:
Consulting fees paid to Directors
Directors fees capitalised
Company secretarial and accounting fees listed under Administration expenses
Directors fees declared in Consolidated Statement of Profit or Loss and Other Comprehensive
Income
Further information in relation to KMP remuneration can be found in the Remuneration Report.
Note 7
Auditor’s Remuneration
Remuneration of the auditor for:
—
auditing or reviewing the financial statements
Note 8
Earnings per Share
(a)
Reconciliation of earnings to profit or loss
Losses
Losses used to calculate basic EPS
(b)
Weighted average number of ordinary shares outstanding during the year used in
calculating basic EPS
Weighted average number of ordinary shares outstanding during the year used in
calculating dilutive EPS
2020
$
2019
$
228,000
228,000
468,369
468,369
2020
$
2019
$
228,000
-
60,000
288,000
-
72,000
60,000
132,000
156,000
172,000
236,369
60,000
468,369
236,369
42,000
60,000
338,369
130,000
Consolidated Group
2020
$
2019
$
27,100
27,100
26,800
26,800
Consolidated Group
2020
$
2019
$
(601,468)
(601,468)
(923,266)
(923,266)
No.
No.
1,511,111,644
986,888,728
1,511,111,644
986,888,728
Basic loss per share from continuing and discontinued operations
(0.04)
(0.09)
Note 9
Cash and Cash Equivalents
Cash at bank and on hand
Reconciliation of cash
Cash and cash equivalents at the end of the financial year as shown in the statement
of cash flows is reconciled to items in the statement of financial position as follows:
Cash and cash equivalents
Bank overdrafts
Consolidated Group
2020
$
405,957
405,957
2019
$
164,087
164,087
405,957
164,087
-
-
405,957
164,087
33
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 10
Trade and Other Receivables
CURRENT
Trade receivables
Provision for impairment
Other receivables
—
—
—
TFN withholding
other receivables
deposit paid
Total current trade and other receivables
Note
Consolidated Group
2020
$
2019
$
10a(i)
1,000
(1,000)
-
989
46,951
6,843
54,783
54,783
8,654
(1,000)
7,654
1,215
6,299
6,843
14,357
22,011
The following table shows the movement in lifetime expected credit loss that has been recognised for trade and other receivables in accordance with the
simplified approach set out in AASB 9: Financial Instruments.
(a) Lifetime Expected Credit Loss: Credit Impaired
i.
ii.
Current trade receivables
Current term receivables
i.
ii.
Current trade receivables
Current term receivables
Consolidated Group
Opening
balance
Net
measurement of
loss allowance
Amounts written
off
Closing balance
1 July 2018
$
1,000
-
1,000
$
$
-
-
-
Consolidated Group
30 June 2019
$
1,000
-
1,000
-
-
-
Opening
balance
Net
measurement of
loss allowance
Amounts written
off
Closing balance
1 July 2019
$
1,000
-
1,000
$
$
-
-
-
30 June 2020
$
1,000
-
1,000
-
-
-
The Group applies the simplified approach to providing for expected credit losses prescribed by AASB 9, which permits the use of the lifetime expected loss
provision for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics
and the days past due. The loss allowance provision as at 30 June 2020 is determined as follows; the expected credit losses also incorporate forward-
looking information.
The "amounts written off" are all due to customers declaring bankruptcy, or term receivables that have now become unrecoverable.
2020
Expected loss rate
Gross carrying amount
Loss allowing provision
2019
Expected loss rate
Gross carrying amount
Loss allowing provision
Credit risk
Current
>30 days past
>60 days past
>90 days past
due
Amounts written
off
$
$
$
$
-
-
-
14,347
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,654
-
100%
1,000
(1,000)
100%
1,000
(1,000)
Total
$
-
1,000
(1,000)
-
23,001
(1,000)
The Group has no significant concentration of credit risk with respect to any single counter party or group of counter parties other than those receivables
specifically provided for and mentioned within Note 10. The class of assets described as Trade and Other Receivables is considered to be the main source of
credit risk related to the Group.
(b) Financial Assets Measured at Amortised Cost
Trade and other Receivables
— Total current
— Total non-current
Total financial assets measured at amortised cost
Consolidated Group
2020
$
2019
$
54,783
-
54,783
54,783
22,011
-
22,011
22,011
Note
23
34
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 11
Deferred Exploration and Evaluation
Balance at beginning of year
Current year expenditure capitalised
Exploration costs written off
Balance at end of year
Consolidated Group
2020
$
837,730
224,824
-
1,062,554
2019
$
736,091
186,672
(85,033)
837,730
The value of the Company's interest in exploration expenditure is dependent upon the:
-
-
-
continuance of the economic entity's right to tenure of the areas of interest;
the results of future exploration; and
the recoupment of costs through successful development and exploitation of the areas of interest, or alternatively, by their sale.
75% of Peter Mitchell's Directors Fees have been capitalised as Deferred Exploration and Evaluation Assets.
The recovery of deferred exploration and evaluation costs is dependent upon the success of pre-feasibility studies, exploration and evaluation or sale or farm-out
of the exploration interest. A percentage of the CEO's salary and associate costs are capitalised in line with the Company's policy for capitalising costs directly
relating to pre-feasibility and exploration. Broadly, the Company has three cost centres, Corporate, Pre-feasibility and Exploration. Where identifiable, costs
associated with Pre-feasibility and Exploration cost centres are capitalised. These costs are annually reviewed for impairment and a charge is made direct to the
Statement of profit or loss and other comprehensive income of the Company where an impairment is identified.
No impairment (2019: $85,033) was brought to account for the financial year. The Company still intends to exploit for economical gain the remaining tenements
under its control.
The Group's exploration properties may be subjected to claim(s) under native title, or contain sacred sites, or site of significance to Aboriginal people. As a result,
exploration properties or areas within the tenements may be subjected to exploration restrictions, mining restrictions and/or claims for compensation. At this time,
it is not possible to quantify whether such claims exist and therefore, the quantum of such potential claims cannot be estimated.
The Group has reviewed all of its tenements and has only carried forward the expenses on the tenements that give rise to a potential economic benefit to the
Company through development or exploration.
The Group has considered the impairment indicators below and confirms no such indicators are applicable at 30 June 2020. As such, the Group does not
consider that a full impairment test is necessary.
Impairment indicators
-
-
-
-
-
-
The period for which the entity has the right to explore in the specific area has expired during the period or will expire in the near future, and is not
expected to be renewed;
Substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned;
Exploration for and evaluation of mineral resources 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;
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;
Evidence is available of obsolescence or physical damage of an asset; and
The net assets of the Group exceeds its market capitalisation.
Note 12
Interests in Subsidiaries
(a)
Information about Principal Subsidiaries
The subsidiaries listed below have share capital consisting solely of ordinary shares or ordinary units which are held directly by the Group. The proportion of
ownership interests held equals the voting rights held by Group. Each subsidiary’s principal place of business is also its country of incorporation.
Name of subsidiary
Principal place of business
Platquest Resources Pty Ltd
Alltower Pty Ltd
Haiti Gold Aust Pty Ltd
Cosmo Gold Pty Ltd
Challenger Mines Pty Ltd
Australia
Australia
Australia
Australia
Australia
Ownership interest held by the
Group
2020
(%)
100%
100%
100%
100%
100%
2019
(%)
100%
100%
100%
-
-
Subsidiary financial statements used in the preparation of these consolidated financial statements have also been prepared as at the same reporting date
as the Group’s financial statements.
(b) Significant Restrictions
There are no significant restrictions over the Group's ability to access or use assets, and settle liabilities, of the Group.
35
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 13
Property, Plant and Equipment
LAND AND BUILDINGS
Freehold land at:
— at cost
Total land
PLANT AND EQUIPMENT
Plant and equipment:
At cost
Accumulated depreciation
Motor Vehicle
At cost
Accumulated depreciation
Computer Equipment
At cost
Accumulated depreciation
Total plant and equipment
Total property, plant and equipment
(a)
Movements in Carrying Amounts
Consolidated Group
2020
$
2019
$
330,000
330,000
659,000
(33,601)
625,399
-
-
-
-
-
-
625,399
955,399
-
-
-
-
-
21,203
(21,203)
-
664
(664)
-
-
-
Movements in carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.
Consolidated Group:
Balance at 1 July 2018
Depreciation expense
Balance at 30 June 2019
Acquisitions through acquiring subsidiary
Depreciation expense
Balance at 30 June 2020
Note 14
Other Assets
CURRENT
Prepayments
Security bonds paid
Total Other Assets
Current
Non-Current
Freehold Land
$
Plant and
Equipment
$
-
-
-
-
-
-
330,000
-
330,000
659,000
(33,601)
625,399
Motor Vehicle
$
17,986
(17,986)
-
-
-
-
Computer
Equipment
$
Total
$
547
(547)
-
-
-
-
18,533
(18,533)
-
989,000
(33,601)
955,399
Consolidated Group
2020
$
2019
$
15,098
632,594
647,692
647,692
-
647,692
8,424
-
8,424
8,424
-
8,424
36
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 15
Trade and Other Payables
CURRENT
Unsecured liabilities
Trade payables
Sundry payables and accrued expenses
(a) Financial liabilities at amortised cost classified as trade and other payables
Trade and other payables
— Total current
— Total non-current
Financial liabilities as trade and other payables
Note 16
Issued Capital
3,311,122,092 (2019: 1,107,221,092) fully paid ordinary shares
The Group has authorised share capital amounting to 3,331,122,092 ordinary shares.
Consolidated Group
2020
$
2019
$
147,546
323,561
471,107
291,706
215,606
507,312
Consolidated Group
2020
$
2019
$
471,107
-
471,107
507,312
-
507,312
Consolidated Group
2020
$
2019
$
15,009,488
12,346,827
15,009,488
12,346,827
(a)
Ordinary Shares
At the beginning of the reporting period
Shares issued during the year
Less transaction costs arising from issue of shares
At the end of the reporting period
Consolidated Group
2020
2019
No.
$
No.
$
1,107,221,092
12,346,827
885,943,929
11,860,703
2,203,901,000
2,836,126
221,277,163
-
(173,465)
-
508,954
(22,830)
3,311,122,092
15,009,488
1,107,221,092
12,346,827
On 22 August 2019, 50,000,000 fully paid ordinary shares were issued, raising a total of $75,000 before costs.
On 7 February 2020, 250,000,000 fully paid ordinary shares were issued, raising a total of $250,000 before costs.
On 11 May 2020, 1,728,900,000 fully paid ordinary shares were issued, raising a total of $2,161,125 before costs.
On 18 May 2020, 175,000,000 fully paid ordinary shares were issued as debt conversion. The shares were valued at $350,000.
On 20 May 2020, 1,000 fully paid ordinary shares were issued as part of the option prospectus, raising a total of $1 before costs.
(b) Options
The following reconciles the outstanding unlisted options to subscribe for fully paid ordinary shares in the Company at the beginning and end of the financial
year.
At the beginning of the reporting period
Issued during the year
Lapsed during the year
Balance at the end of financial year
Exercisable at the end of the financial year
Unlisted options
Unlisted options
Consolidated Group
2020
No.
2019
No.
280,694,304
258,694,304
199,145,120
22,000,000
(280,694,304)
-
199,145,120
280,694,304
199,145,120
280,694,304
Number
Issue Date
Expiry Date
Exercise Price
$
130,000,000
69,145,120
5/02/2020
19/05/2020
7/02/2022
31/05/2022
0.003
0.005
37
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(Note 16: Issued capital (cont'd))
(c) Capital Management
Management controls the capital of the Group in order to maintain a sustainable debt to equity ratio, generate long-term shareholder value and ensure that
the Group can fund its operations and continue as a going concern.
The Group’s debt and capital include ordinary share capital, and financial liabilities, supported by financial assets.
The Group is not subject to any externally imposed capital requirements.
Management effectively manages the Group’s capital by assessing the Group's financial risks and adjusting its capital structure in response to changes in
these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues.
Total liabilities
Less cash and cash equivalents
Net debt
Total equity
Total capital
Gearing ratio
Note 17
Capital and Leasing Commitments
(a)
Exploration Commitments
Not longer than 1 year
Longer than 1 year and not longer than 5 years
Longer than 5 years
Committed at reporting date but not recognised as liabilities
Note 18
Contingent Liabilities and Contingent Assets
Note
9
Consolidated Group
2020
$
471,107
(405,957)
65,150
2,655,278
2,720,428
2019
$
507,312
(164,087)
343,225
524,940
868,165
2%
40%
Consolidated Group
2020
$
2019
$
370,000
512,000
60,000
942,000
398,000
956,033
59,233
1,413,266
The Company has a contingent liability in relation to the acquisition of the Cosmo Newberry tenements. They are listed as follows:
Acquisition of Cosmo Newberry Tenements:
-
-
Upon completion of the initial geophysics program, the first drilling program and the announcement to ASX of the Company's intention to continue to
explore. 1,000,000 ordinary shares will be issued. The value of these proposed shares as at 30 June 2020 is approximately $3,000 (2019: $1,000).
On settlement of the Cosmo Newberry Purchase, there is the potential for further cash payments of $50,000 and the issue of 500,000 ordinary shares.
Note 19
Operating Segments
General Information
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and used by the board of directors (chief operating decision
makers) in assessing performance and in determining the allocation of resources.
Unless stated otherwise, all accounts are reported to the Board of Directors, being the chief decision makers with respect to operating segments, which are
determined in accordance with accounting policies that are consistent to those adapted in the annual financial statements of the consolidated entity.
(a)
Segment information
(i) Segment performance
30 June 2020
REVENUE
Total segment revenue
Total segment revenue
Reconciliation of segment revenue to group revenue
Other revenue
Administrative expenses
Directors' fees
Consultancy fees
Occupancy costs
Travel and marketing costs
Other costs
Net loss before tax from continuing operations
3D Resources
$
Challenger
$
Platquest
$
Alltower
$
Total
$
-
-
-
-
-
-
-
-
-
-
887
(156,000)
(8,830)
(19,922)
(106,196)
(311,407)
(601,468)
38
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(Note 19: Operating Segments (cont'd))
30 June 2019
REVENUE
Total segment revenue
Total segment revenue
Segment loss before tax
Reconciliation of segment revenue to group revenue
Other revenue
Administrative expenses
Directors' fees
Consultancy fees
Occupancy costs
Travel and marketing costs
Other costs
Net loss before tax from continuing operations
(ii) Segment assets
30 June 2020
Segment assets - opening balance
Segment assets increases for the year:
Capital expenditure/exploration
Write off/exploration
Reconciliation of segment assets to group assets
Unallocated assets:
— Cash
— Receivables
— Other assets
— Property, plant and equipment
Total group assets
30 June 2019
Segment assets - opening balance
Segment assets increases for the year:
Capital expenditure/exploration
Write off/exploration
Reconciliation of segment assets to group assets
Unallocated assets:
— Cash
— Receivables
— Other assets
— Property, plant and equipment
Total group assets
(iii) Segment liabilities
30 June 2020
Segment liabilities- opening balance
Reconciliation of segment liabilities to group liabilities
Unallocated liabilities
— Trade and other payables
Total group liabilities
30 June 2019
Segment liabilities- opening balance
Reconciliation of segment liabilities to group liabilities
Unallocated liabilities
— Trade and other payables
Total group liabilities
3D Resources
$
Challenger
$
Platquest
$
Alltower
$
Total
$
-
-
(85,143)
-
-
-
-
-
-
3D Resources
$
Challenger
$
Platquest
$
Alltower
$
837,730
-
193,988
-
1,031,718
30,836
-
30,836
-
-
-
-
3D Resources
$
Challenger
$
Platquest
$
Alltower
$
736,091
186,672
(85,033)
837,730
-
-
-
-
-
-
-
-
3D Resources
$
Challenger
$
Platquest
$
Alltower
$
-
-
3D Resources
$
Challenger
$
-
-
-
-
-
-
-
-
-
-
Platquest
$
Alltower
$
39
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(85,143)
706
(130,000)
(282,150)
(15,009)
(138,177)
(273,493)
(923,266)
Total
$
837,730
-
224,824
-
1,062,554
405,957
54,783
647,692
955,399
3,126,385
Total
$
736,091
-
186,672
(85,033)
837,730
164,087
22,011
8,424
-
1,032,252
Total
$
-
-
471,107
471,107
Total
$
-
-
507,312
507,312
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 20
Cash Flow Information
(a)
Reconciliation of Cash Flows from Operating Activities with Profit after Income Tax
Profit after income tax
Non-cash flows in profit
-
-
-
Depreciation
Directors fees capitalised
Write-off of capitalised exploration expenditure
Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries:
(Increase)/decrease in trade and term receivables
Increase/(decrease) in other assets
Increase/(decrease) in trade payables and accruals
Net cash generated by operating activities
Note 21
Events After the Reporting Period
Capital Structure
Consolidated Group
2020
$
2019
$
(601,468)
(923,266)
33,601
(72,000)
-
(32,772)
595,285
36,205
(362,947)
18,533
(42,000)
85,143
(9,027)
(6,521)
415,200
(461,938)
Post balance date the company has raised $206,500 via the placement of the shortfall from Its Replacement Options offer pursuant to the Prospectus dated 22
April 2020 resulting in 275,694,324 new options being issued with exercise price of $0.005 and an expiry of 31 March 2022.
$1,225,000 was raised in August via the placement of 245,000,000 shares at $0.005 together with one attaching option for every two shares placed with a
exercise price of $0.007 and an expiry of 31 August 2022.
A further $162,750 has been raised following the exercise of options to fully paid ordinary shares in the Company.
Corporate
In August the Company announced its intention to seek shareholder approval for a initial public offering (IPO) of its wholly owned subsidiary Cosmo Gold Pty Ltd
that holds the Company’s interest in the Cosmo Newbery Project. The Company will convene a meeting of shareholders to approve the proposed IPO subject to
obtaining any regulatory approvals required.
The Company has mandated a Lead Manager and Underwriter of the Cosmo IPO. Under the terms of the mandate it is currently expected that Cosmo Gold
would complete a preliminary seed raising (subject to all necessary approvals including shareholder approval) the proceeds from which a cash payment of
$250,000 would be paid to the Company as part consideration for the Cosmo Newbery assets that were held directly by 3D Resources. It is proposed to
complete an underwritten IPO of not less than $4 million with the Company retaining an interest of not less than 30% interest in Cosmo Gold on a fully diluted,
fully funded basis. It is then proposed to distribute the shares in-specie to 3D Resources’ shareholders.
Exploration
The Company commenced its maiden drilling program at the Adelong Goldfield Project. The initial 1,000 metre drilling program is to focus on the Donkey Hill and
Currajong deposits and drill approximately 650 metres at Currajong, with the remaining 350 metres at Donkey Hill. The objective of the drilling program is to
accurately model and test the existing mineralisation at Donkey Hill and Currajong.
Note 22
Related Party Transactions
Related Parties
(a)
The Group's main related parties are as follows:
i.
Key Management Personnel:
Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director
(whether executive or otherwise) of that entity are considered key management personnel.
The aggregate compensation made to directors and other members of key management personnel of the Company and the Group is set out below:
Short-term employee benefits
Consulting fees
Accounting and Secretarial fees
ii.
Other Related Parties
2020
$
2019
$
228,000 172,000
-
60,000
236,369
60,000
288,000 468,369
Other related parties include entities controlled by the ultimate parent entity and entities over which key management personnel have joint control.
40
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(Note 22: Related Party Transactions (cont'd))
(c)
Transactions with related parties:
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless
otherwise stated.
The following transactions occurred with related parties:
Consolidated Group
2020
$
2019
$
i.
Director related entities
-
-
-
-
Consulting and Directors' fees paid to Tomik Nominees Pty Ltd, of which Mr Ian Hastings
is a director and shareholder
96,000 165,584
Consulting and Directors' fees paid to China Connect, of which Mr Mitchell is a director
and shareholder
96,000 206,785
Consulting and Directors' fees paid to Ausnom Pty Ltd, of which Mr Chegwidden is a
director and shareholder
36,000 36,000
Accounting and Secretarial fees paid to DW Accounting & Advisory Pty Ltd, of which Mr
Andrew Draffin is a director and shareholder
60,000 60,000
ii.
Reimbursement Transactions with related parties
Reimbursement of business expenses incurred by the Company and initially settled by Mr Ian
Hastings. All expenses were incurred on an arm's length basis.
59,904 112,483
Reimbursement of business expenses incurred by the Company and initially settled by China
Connect, of which Mr Peter Mitchell is a director and Shareholder. All expenses were incurred on an
arm's length basis.
46,709 30,100
Reimbursement of business expenses incurred by the Company and initially settled by DW
Accounting & Advisory Pty Ltd , of which Mr Andrew Draffin is a director and Shareholder. All
expenses were incurred on an arm's length basis.
8,528 9,732
(d)
Amounts outstanding from related parties
Tomik Nominees Pty Ltd
China Connect
Ausnom Pty Ltd
DW Accounting & Advisory Pty Ltd
Note 23
Financial Risk Management
Consolidated Group
2020
$
116,058
141,953
65,791
85,300
2019
$
194,821
191,853
29,791
44,500
409,102
460,965
The Group’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and
payable, bills, leases, preference shares and derivatives.
The totals for each category of financial instruments, measured in accordance with AASB 9: Financial Instruments as detailed in the accounting policies to these
financial statements, are as follows:
Financial Assets
Financial assets at amortised cost
—
—
cash and cash equivalents
trade and other receivables
Total Financial Assets
Financial Liabilities
Financial liabilities at amortised cost
—
trade and other payables
Total Financial Liabilities
Note
9
10
15
Consolidated Group
2020
$
2019
$
405,957
54,783
460,740
164,087
22,011
186,098
471,107
471,107
507,312
507,312
41
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(Note 23: Financial Risk Management (cont'd))
Specific Financial Risk Exposures and Management
The main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate risk, foreign
currency risk and other price risk (commodity and equity price risk). There have been no substantive changes in the types of risks the Group is exposed to, how
these risks arise, or the Board’s objectives, policies and processes for managing or measuring the risks from the previous period.
a. Credit risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a
financial loss to the Group.
The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The
credit risk on liquid funds and derivative financial instruments is limited as the counterparties are banks with high credit ratings assigned by international
credit rating agencies.
The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represent the Group's maximum exposure to
credit risk.
Significant increase in credit risk for financial instruments
The Company evaluates and compares the risk of a default on a financial instrument at the reporting date with the risk of a default on the financial
instrument at the date of initial recognition. To support the evaluation process, the Company takes into consideration both quantitative and qualitative
information that is reasonable and justifiable, including past experience and prospective information that is publicly available. Prospective information taken
into consideration includes the future volatility of the industries in which the Company’s debtors are in, obtained from industry expert reports, financial news
report, governmental bodies, as well as taking into consideration multiple external sources of current and future economic information that Company’s core
operations can relate to.
b.
Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial
liabilities. The Group manages this risk through the following mechanisms:
• preparing forward-looking cash flow analyses in relation to its operating, investing and financing activities;
• obtaining funding from a variety of sources;
• maintaining a reputable credit profile;
• managing credit risk related to financial assets;
• only investing surplus cash with major financial institutions; and
• comparing the maturity profile of financial liabilities with the realisation profile of financial assets
Financial liability and financial asset maturity analysis
Consolidated Group
2020
$
2019
$
2020
$
2019
$
2020
$
2019
$
2020
$
2019
$
Within 1 Year
1 to 5 years
Over 5 years
Total
Financial liabilities due for payment
Trade and other
payables
Total expected
outflows
Consolidated Group
471,107
507,312
471,107
507,312
-
-
Within 1 Year
1 to 5 years
2020
$
2019
$
2020
$
2019
$
Financial Assets - cash flows realisable
405,957
164,087
54,783
22,011
460,740
186,098
(10,367)
(321,214)
-
-
-
-
Cash and cash
equivalents
Trade, term and loan
receivables
Total anticipated
inflows
Net (outflow) / inflow on
financial instruments
c. Market Risk
i.
Interest rate risk
-
-
-
-
-
-
-
-
Over 5 years
2020
$
2019
$
-
-
-
-
-
-
-
-
-
-
471,107
507,312
471,107
507,312
Total
2020
$
2019
$
405,957
164,087
54,783
22,011
460,740
186,098
(10,367)
(321,214)
The Group's exposure to market risk primarily consists of financial risks associated with changes in interest rates as detailed below. As the level of risk is
low, the Group does not use any derivatives to hedge its exposure.
The Group is exposed to interest rate risks as it holds funds at variable interest rates.
The Group holds no borrowed funds.
ii.
Foreign currency risk
Exposure to foreign currency risk may result in the fair value or future cash flows of a financial instrument fluctuating due to movement in foreign exchange
rates of currencies in which the Group holds financial instruments which are other than the AUD functional currency of the Group.
42
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(Note 23: Financial Risk Management (cont'd))
Sensitivity Analysis
The following table illustrates sensitivities to the Group’s exposures to changes in interest rates, exchange rates and commodity and equity prices. The table
indicates the impact of how profit and equity values reported at the end of the reporting period would have been affected by changes in the relevant risk variable
that management considers to be reasonably possible.
These sensitivities assume that the movement in a particular variable is independent of other variables.
Year ended 30 June 2020
+/- 0.75% in interest rates
Year ended 30 June 2019
+/- 0.75% in interest rates
Consolidated Group
Profit
$
Equity
$
3,045
3,045
Consolidated Group
Profit
$
Equity
$
1,231
1,231
There have been no changes in any of the methods or assumptions used to prepare the above sensitivity analysis from the prior year.
Fair Values
The Directors consider that the carrying amounts of financial assets and liabilities recorded at cost less any accumulated impairments in the financial statements
approximates their fair values.
The fair values of financial assets and financial liabilities are determined as follows:
-
Other financial assets and financial liabilities are determined in accordance with generally accepted pricing models.
Fair value estimation
The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying amounts as presented in the
statement of financial position. Fair value is the amount at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an
arm's length transaction.
Differences between fair values and carrying amounts of financial instruments with fixed interest rates are due to the change in discount rates being applied by
the market since their initial recognition by the Group.
Consolidated Group
Financial assets
Financial assets at amortised cost:
Cash and cash equivalents
Trade and other receivables:
Total financial assets
Financial liabilities at amortised cost
Trade and other payables
Total financial liabilities
Note
2020
2019
Carrying
Amount
$
Fair Value
$
Carrying
Amount
$
Fair Value
$
9
10
15
405,957
54,783
460,740
405,957
54,783
460,740
164,087
22,011
186,098
164,087
22,011
186,098
471,107
471,107
471,107
471,107
507,312
507,312
507,312
507,312
(i)
Cash and cash equivalents, trade and other receivables, and trade and other payables are short-term instruments in nature whose carrying amounts are
equivalent to their fair values.
Note 24
Reserves
a. Option Reserve
The option reserve records items recognised as expenses on valuation of employee share options.
Balance at the beginning of the year
Issue of options during the year
Expiry of options during the year
Balance at the end of the year
Consolidated Group
2020
$
2019
$
36,000
69,145
(36,000)
69,145
36,000
-
-
36,000
The reserve arised on the grant of share options to third parties as equity based payments.
b.
Foreign Currency Translation Reserve
The foreign currency translation reserve records exchange differences arising on translation of a foreign controlled subsidiary.
Balance at the beginning of the year
Foreign currency movements during the year
Balance at the end of the year
c.
Total Reserves
Option reserve
Foreign currency translation reserve
43
Consolidated Group
2020
$
2019
$
125
-
125
69,145
125
69,270
88
37
125
36,000
125
36,125
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 25
Economic Dependency
All subsidiaries and controlled entities are dependent on the Parent Company, 3D Resources Limited.
Note 26
Company Details
The registered office of the company is:
3D Resources Limited
Level 4
91 William Street
Melbourne Vic 3000
The principal places of business are:
3D Resources Limited
Level 4
91 William Street
Melbourne Vic 3000
44
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
DIRECTORS' DECLARATION
In accordance with a resolution of the directors of 3D Resources Limited, the directors of the company declare that:
1.
the financial statements and notes, as set out on pages 20 to 44, are in accordance with the Corporations Act 2001 and:
(a)
(b)
comply with Australian Accounting Standards applicable to the entity, which, as stated in accounting policy Note 1
to the financial statements, constitutes compliance with International Financial Reporting Standards; and
give a true and fair view of the financial position as at 30 June 2020 and of the performance for the year ended on
that date of the consolidated group;
2.
3.
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; and
the directors have been given the declarations required by section 295A of the Corporations Act 2001 from the Chief
Executive Officer and Chief Financial Officer.
Director
Dated this
Mr Peter Mitchell
30 September 2020
45
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF 3D RESOURCES LIMITED
Report on the Financial Report
Opinion
We have audited the financial report of 3D Resources Limited, (the Company and its subsidiaries (the Group)), which comprises
the consolidated statement of financial position as at 30 June 2020, the consolidated statement of profit or loss and other
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the
year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
(i) 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 on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for 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 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(w) in the financial report which indicates that the ability of the Company to continue as a going
concern is dependent upon the ability of the Company to secure funds by raising capital from equity markets and managing
cashflow in line with available funds. The events and conditions, including the loss for the period, indicate the existence of a
material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern and therefore the
Company may be unable to realise its assets and discharge its liabilities in the normal course of business at amounts stated in the
financial report.
Our opinion is not modified in respect of this matter.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF 3D RESOURCES LIMITED
Key Audit Matters
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 key audit matter
1) Carrying value of
Capitalised Exploration
Expenditure
Refer to Note 11
($1,062,554)
Capitalised Exploration
Expenditure relates to
costs incurred in
relation to the various
tenements.
For the financial year
ended 30 June 2020,
the Directors have
assessed and
determined that no
further write off or
impairment is required.
The auditor’s procedures included:
obtaining a copy of the Directors’ assessment of the carrying value of capitalised
Exploration Expenditure and reviewing and challenging assertions made by the
Directors.
discussing with Directors the existence of any potential impairment indicators,
including if:
i.
ii.
iii.
iv.
v.
vi.
vii.
the period for which the entity has the right to explore in the specific area
has expired during the period or will expire in the near future, and is not
expected to be renewed;
substantive expenditure on further exploration for and evaluation of
mineral resources in the specific area is neither budgeted nor planned;
exploration for and evaluation of mineral resources 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;
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;
significant changes with an adverse effect on the entity have taken place
during the period, or will take place in the near future, in the technological,
market, economic or legal environment in which the entity operates or in
the market to which an asset is dedicated;
the carrying amount of the net assets of the entity is more than its market
capitalisation; and
evidence is available of obsolescence or physical damage of an asset.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF 3D RESOURCES LIMITED
Other Information
The directors are responsible for the other information. The other information comprises the information included in the Group’s
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 accordingly we do 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 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 this 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 Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors
determine is necessary to enable the preparation of the 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 has no realistic alternative but to do so.
The Directors are responsible for overseeing the Company’s financial reporting process.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF 3D RESOURCES LIMITED Auditor’s Responsibility 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 this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our auditor’s report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in included in the directors’ report for the year ended 30 June 2020. In our opinion, the Remuneration Report of 3D Resources Limited, for the year ended 30 June 2020, complies with section 300A of the Corporations Act 2001. Responsibilities 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. MORROWS AUDIT PTY LTD I.L. JENKINS Director Melbourne: 30 September 2020
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
The following information is current as at 25 September 2020:
1.
a.
Shareholding
Distribution of Shareholders
Category (size of holding)
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
No. of Holders
No. of Ordinary
Shares
28
16
80
690
2,004
2,818
6,379
55,152
767,473
47,424,806
3,567,118,282
3,615,372,092
b.
The number of shareholdings held in less than marketable parcels is 483 (2019: 525) with a combined total of
18,053,814 securities (2019: 48,792,134).
c.
The names of the substantial shareholders listed in the holding company’s register are:
Shareholder
Number
No. of Fully Paid
Ordinary Shares
% Held of Issued
Ordinary Capital
Mr Peter Andrew Proksa
Mr Peter Robert Mitchell + Mrs Robin Mary Mitchell
Tomik Nominees Pty Ltd
Mr Adrian Alexander Venuti
170,500,000
161,226,018
160,209,660
160,000,000
4.72%
4.46%
4.43%
4.43%
d.
Voting Rights
The voting rights attached to each class of equity security are as follows:
Ordinary shares
–
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a
meeting or by proxy has one vote on a show of hands.
e.
20 Largest Shareholders — Ordinary Shares
Name
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Mr Peter Andrew Proksa
Mr Peter Robert Mitchell + Mrs Robin Mary Mitchell
Tomik Nominees Pty Ltd
Mr Adrian Alexander Venuti
Apam Holdings Pty Ltd
Mr Michael Zollo
Mrs Bianca Leigh Nash
Beirne Trading Pty Ltd
Ms Chunyan Niu
Giojaz Management Pty Ltd
Mr Cheyne Michael Dunford
Giojaz Management Pty Ltd
Ausnom Pty Ltd
Mr Michael William Nash + Mrs Adrianne Lesley
Nash
Mr Michael John Fineri
Mr James Moye
50
Number of Ordinary
Fully Paid Shares
Held
170,500,000
161,226,018
160,209,660
160,000,000
91,000,000
72,800,000
57,600,927
56,092,499
55,000,000
40,250,000
35,000,000
33,828,571
31,812,500
30,846,155
30,000,000
29,000,000
% Held
of Issued
Ordinary Capital
4.72%
4.46%
4.43%
4.43%
2.52%
2.01%
1.59%
1.55%
1.52%
1.11%
0.97%
0.94%
0.88%
0.85%
0.83%
0.80%
3D RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 15 120 973 775
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
Name
17.
18.
19.
20.
Jawaf Enterprises Pty Ltd
Giojaz Management Pty Ltd
Mr Bruce Lawrence Hodges
BNP Paribas Nominees Pty Ltd
Number of Ordinary
Fully Paid Shares
Held
25,000,000
24,500,000
24,222,114
22,594,721
% Held
of Issued
Ordinary Capital
0.69%
0.68%
0.67%
0.62%
1,311,483,165
36.27%
The name of the company secretary is Andrew John Draffin.
The address of the principal registered office in Australia is Level 4, 91 William Street, Melbourne Vic 3000.
Telephone (03) 8611 5320.
Registers of securities are held at the following addresses
Computershare Limited
Level 2, 45 St Georges Terrace
Perth WA 6000
Stock Exchange Listing
Quotation has been granted for all the ordinary shares of the company on all Member Exchanges of the
Australian Securities Exchange Limited.
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Other Disclosures
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