ANNUAL
REPORT 2016
CORPORATE
DIRECTORY
DIRECTORS
James Brown
Managing Director
Paul Mantell
Executive Director
Allan Buckler
Non-Executive Director
Dan O’Neill
Non-Executive Director
Beng Teik Kuan
Non-Executive Director
COMPANY
SECRETARIES
Noel Young
Damon Cox
REGISTERED
OFFICE
Units 5 & 6
25 Hamilton Street
Subiaco WA 6008
T: +61 8 9488 5100
F: +61 8 9488 5199
E: cosec@alturamining.com
W: alturamining.com
AUSTRALIAN
SECURITIES
EXCHANGE
Code: AJM
AUDITORS
PKF Hacketts Audit
Level 6
10 Eagle Street
Brisbane QLD 4000
SHARE
REGISTRY
Link Market Services Limited
Level 4
152 St George’s Terrace
Perth WA 6000
2016
YEAR IN REVIEW
2016
HIGHLIGHTS
PILGANGOORA
LITHIUM
CORPORATE
DEVELOPMENTS
FINANCIAL
STATEMENTS
DIRECTORS’
REPORT
AUDITORS’ INDEPENDENCE
DECLARATION
CONSOLIDATED STATEMENT OF
PROFIT AND LOSS
CONSOLIDATED STATEMENT OF
OTHER COMPREHENSIVE INCOME
CONSOLIDATED
BALANCE SHEET
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
CONSOLIDATED STATEMENT
OF CASH FLOWS
NOTES TO THE
FINANCIAL STATEMENTS
DIRECTORS'
DECLARATION
INDEPENDENT AUDITOR’S
REPORT TO THE MEMBERS
ADDITIONAL ASX
INFORMATION
MINERAL RESOURCES AND
ORE RESERVES STATEMENT
2
4
6
10
13
14
26
27
28
29
30
31
32
75
76
78
81
CONTENTS
PILGANGOORA
LITHIUM:
RAPIDLY
DEVELOPING
TOWARDS
PRODUCTION
Dear Shareholder,
I am pleased to report that over
the past year the Pilgangoora
Lithium project has rapidly
developed towards production.
Since our last annual report
Altura has recruited a project
team under the guidance of Mr
Chris Evans, General Manager
Operations, to coordinate the
required feasibility studies,
undertake the mine planning
and advance the various mining
approvals for the project.
The development of the
Pilgangoora Lithium project
has now accelerated to the
point where subject to finance
and expected government
approval of the Mining Proposal,
construction of the mine can
commence early in 2017.
With an 11 month construction
period, the first production from
the mine is planned to occur from
Q4 2017 which will place Altura in
an elite group of near term lithium
supply companies.
The journey from a “large
hard rock lithium deposit” to
“Australia’s likely next producing
lithium mine” over the past 12
months has been remarkable, and
would not have been possible
without the dedicated efforts
of the Pilgangoora Lithium
project team located on site
and in the Perth office backed
by the ongoing support of our
shareholders.
The key milestones that
have underpinned the rapid
development of the project
include:
2016 YEAR
IN REVIEW
2
ALTURA MINING LIMITED ANNUAL REPORT 2016 • Definitive Feasibility Study (DFS)
released in September 2016
• Haul road design and
agreement with local authority
• Feasibility Study (FS)
announced in April 2016
• Mining Proposal lodged in
September 2016
• Maiden and revised Ore
Reserve estimates
• Upgraded Mineral Resource
estimates
• Binding offtake agreement
and share placement with
Chinese lithium company,
Lionergy Limited
• Completion of access
agreements with landowners
• Metallurgical testwork for the
design of the minesite plant
During the year the Company
also undertook a review of
the long-term viability of the
Indonesian coal assets which
comprise the Delta Coal mine
and Tabalong Coal Project, and
has taken the decision to divest
the assets as soon as practicable.
At the conclusion of this coal
restructuring process, Altura
will become a pure lithium play
company.
I also take this opportunity to
acknowledge the valuable support
of our shareholders, particularly
those who have participated in
recent capital raisings.
•
Issue of mining tender and
power plant tender documents
This ongoing support has
enabled the Company to quickly
progress the Pilgangoora Lithium
project through the feasibility
studies and mine planning
processes to bring the project to
where it is today.
Your board will continue to
ensure that the Company remains
focussed on accelerating the
development of the Pilgangoora
Lithium Project towards
production in the earliest possible
timeframe.
Sincerely,
James Brown
Managing Director
3
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED 2016
HIGHLIGHTS
$20msuccessful
capital raising
conducted
FSPilgangoora Lithium Project
Feasibility Study completed
and released 11 April 2016
DFS
Pilgangoora Lithium Project
Definitive Feasibility Study
released 26 September 2016
Binding Offtake Agreement
signed with China based
group Lionergy Limited
for 100,000 tonnes of 6%
Li2O grade spodumene
concentrate annually for an
initial 5 year period
Access and Compensation
Deed signed with the
pastoral lease holders
who occupy the land over
which Altura’s Pilgangoora
tenements are located
Non-binding Memorandum
of Understanding (MOU)
with China based lithium
battery and electronic vehicle
producing group, Optimum
Nano Battery Co. Limited
Native title Agreement with
the Njamal people, the
traditional owners of the land
(early July 2016)
PROGRESS
TOWARDS
PILGANGOORA
LITHIUM MINE
DEVELOPMENT
4
ALTURA MINING LIMITED ANNUAL REPORT 2016 PILGANGOORA LITHIUM DFS KEY OUTCOMES (released in September 2016)
219k
Annual spodumene
concentrate production in
tonnes over 13 year mine life
$411m
Project
net present value
pre-tax
$316
Life of mine cash cost
per tonne of spodumene
concentrate (AUD)
$140m
Capital estimate,
including sustaining
capital
2.9:1
Life of
mine
strip ratio
1.8Payback
period
(years)
Mining proposal prepared
for submission to the (WA
Department of Mines and
Petroleum)
Power plant tender issued
Haul road design
commenced
Mining tender documents
issued to prospective
contractor bidders
Agreement reached with the
local authority to upgrade the
haul road
In-house Project team
significantly expanded
including recruitment of a full
time Processing Manager and
a Mining Superintendent
5
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED PILGANGOORA
LITHIUM
During the year, Altura completed
its Feasibility Study on the
Pilgangoora Lithium Project,
followed by announcement of the
results of its Definitive Feasibility
Study (DFS) in September 2016.
PROJECT OVERVIEW
The Pilgangoora Lithium Project
is located in Western Australia’s
Pilbara region. The Project seeks
to develop mining, processing,
logistics and support infrastructure
to mine and process an average
1.54 Mtpa of ore to produce
approximately 219,000 tonnes of
lithium spodumene concentrate
per annum, commencing Q4 2017.
Pilgangoora will be extracted
by open pit methods
enhanced by the shallow and
thick mineralisation allowing
spodumene ore to be mined from
the commencement of mining.
The deposit has a low Life of
Mine (LOM) strip ratio of 2.9:1,
providing Altura with a very low
operational mining cost.
PROJECT LOCATION
The Project is approximately 90 km
south of Port Hedland (see Figure
below) and road access to the site is
via the Great Northern Highway and
then Shire roads and station tracks.
The Pilgangoora mining lease
tenements are M45/1230 and
M45/1231 and cover a total area
of 394 hectares.
DEFINITIVE
FEASIBILITY STUDY
The outcomes of the Definitive
Feasibility Study (DFS) released on
26 September 2016 have confirmed
the Pilgangoora Lithium Project as a
significant mining opportunity that
will deliver substantial long-term
value to shareholders.
The DFS has assessed strategic
options for development, and
determined an economic open
pit mine operation, production
schedule and site layout for the
preferred option.
The key outcomes of the DFS are:
• Project net present value
(NPV) of $411 million over an
initial 13 year mine life;
6
ALTURA MINING LIMITED ANNUAL REPORT 2016 • An attractive capital estimate
of A$139.7 million including
sustaining capital and a
payback period of 1.8 years;
• Life of Mine (LOM) cash
cost of A$316 per tonne of
spodumene concentrate;
of spodumene concentrate at
6% Li2O;
• Ore Reserve estimate of 20.33
Mt @ 1.07% Li2O (entirely in
the Probable category) which
underpins the initial 13 year
mine plan; and
The DFS capital and operating
cost estimates, which carry an
expected accuracy range of
+/-10%, have been externally
peer reviewed by integrated
project service group Aquenta
Consulting Pty Ltd.
• Average annual ore feed of
1.54 Mt and average annual
production of 219,000 tonnes
• Attractive LOM strip ratio of 2.9:1
(waste to ore) providing a very
low operational mining cost.
For further information, please
refer to the ASX Release on
26 September 2016.
DEFINITIVE FEASIBILITY STUDY
KEY RESULTS
Description
Average annual ore feed to plant (LOM)1
Total ore mined
Annual spodumene concentrate production (6% Li2O)
Life of Mine (LOM)
Total spodumene concentrate produced
LOM strip ratio
Spodumene concentrate average market price2
Capital cost estimate3
Total revenue
Project EBITDA4
Total cash cost FOB/tonne product5
Net present value (NPV)6
Internal rate of return (IRR)
Discount rate
Project payback period
Exchange rate
Units
Mtpa
Mt
tonnes
years
Mt
waste:ore
US$/wmt
A$M
A$M
A$M
A$
A$M
%
%
years
Results
1.54
20.33
219,000
13.2
2.89
2.9:1
538.80
139.7
2,074
1,064
315.90
411
58.1
10
1.8
AUD:USD
0.7500
1. Average annual ore feed based nominal 1.4 Mtpa capacity; process and mechanical design of the plant allows for 15% engineering
contingency on the nominal throughput of 1.4 Mtpa, allowing capacity to be maintained at 1.45 Mtpa and to peak at 1.54 Mtpa.
2. Price based on FOB forecast equivalent.
3. Including sustaining capital and pre-development capital.
4. EBITDA is after allowing for Native Title and Royalties.
5. Total cash cost FOB/tonne product is defined as all cash costs to free on board, excluding royalties, interest, tax and depreciation.
6. Net Present Value (NPV) is pre-tax and on a real basis, at a 10% discount rate.
7
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED ORE RESERVE ESTIMATE
ORE RESERVE ESTIMATE – SEPTEMBER 2016
JORC
category
Proven
Probable
Total
Cut-off
Li2O
%
Ore
(million
tonnes)
0.4%
0.4%
0.4%
-
20.3
20.3
Li2O
(%)
Fe2O3
(%)
-
1.06
1.06
-
1.96
1.96
MINERAL RESOURCE ESTIMATE – SEPTEMBER 2016
JORC
category
Measured
Indicated
Inferred
Total
Cut-off
Li2O
%
Ore
(million
tonnes)
0.4%
0.4%
0.4%
-
30.56
8.60
0.4%
39.16
Li2O
(%)
Fe2O3
(%)
-
1.04
0.95
1.02
-
2.00
2.05
2.01
Contained
Li2O
(tonnes)
-
215,000
215,000
Contained
Li2O
(tonnes)
-
318,000
82,000
400,000
The Pilgangoora project has a
current Ore Reserve estimate of
20.3 million tonnes at 1.06% Li2O
and 215,000 tonnes of contained
Li2O, which is classified entirely in
the Probable category.
This revised estimate was
prepared by Orelogy Consulting
Pty Ltd, a Western Australian mine
planning consulting firm.
It replaces the maiden ore reserve
estimate announced in April 2016
in conjunction with the Feasibility
Study, also prepared by Orelogy.
REVISED MINERAL
RESOURCE ESTIMATE
The Pilgangoora Lithium Project
presently has a revised Mineral
Resource estimate of 39.2 million
tonnes at 1.02% Li2O and 400,000
tonnes of contained Li2O.
This latest estimate is an increase
of 10% over the previous estimate
released in February 2016.
Altura is currently undertaking
additional drilling on its
Pilgangoora tenements, and
further increases to both the
mineral resource and ore reserve
estimates can be expected.
For further information on
both the reserve and resource
estimates please refer to the
ASX announcement on
22 September 2016.
8
ALTURA MINING LIMITED ANNUAL REPORT 2016 OFFTAKE AGREEMENTS
Altura has successfully negotiated
the following agreements for
product offtake:
• A binding offtake agreement
with Lionergy for a minimum
of 100,000 tpa of lithium
spodumene concentrate for
an initial five year period; and
• A non-binding memorandum
of understanding with
Optimum Nano also for
a minimum 100,000 tpa
of lithium spodumene
concentrate.
Lionergy is a China based
company specialising in the
Lithium industry. Its business
scope covers spodumene
exploration and mine
development, spodumene
concentrate sales and distribution,
lithium carbonate and lithium
hydroxide manufacturing and
sales, lithium metal manufacturing,
and cathode materials
manufacturing for Li-ion batteries.
The Optimum Nano Group is a
leading Chinese battery maker
that supplies electric battery
solutions to the growing Chinese
large electric vehicle market.
GOVERNMENT
APPROVALS AND
LANDHOLDER
AGREEMENTS
In August 2016 Altura received
advice that its two mining leases
(M45/1230 and M45/1230) had
been granted by the Department
of Mines and Petroleum (DMP).
This followed the successful
completion of:
• The signing of an Access
and Compensation Deed
with the pastoral lease
holders in May 2016;
mining lease and stockpiled on the
ROM stockpile adjacent to the pit.
• The signing in July 2016 of a
Native Title Agreement with the
Njamal people, the traditional
owners of the land; and
• The purchase and transfer of
exploration licence E45/2363
from Atlas Operations Pty Ltd.
Altura has subsequently lodged
the Mining Proposal for these two
mining leases with the DMP for
assessment and approval (under
WA legislation a Mining Proposal
cannot be submitted until the
mining lease has been granted).
The Mining Proposal covers the
proposed mining operations,
processing and power plants,
mine site infrastructure,
environmental assessments,
hydrogeology studies, and the
mine rehabilitation plan.
It is anticipated that approval of the
Mining Proposal will be obtained
by the end of 2016, which will
pave the way for construction to
commence soon after.
MINING PROCESS
AND MINE LAYOUT
Mining will be undertaken
by conventional bulk mining
methods, utilising hydraulic
excavators, dump trucks, and
drill and blast, coupled to a ROM
stockpile.
Ore will be trucked directly from
the blasted faces to the ROM
stockpile and fed to the primary
crusher using front-end loaders.
The Project has a relatively small
footprint of some 400 hectares
covered by two mining leases. The
ore will be mined from a single pit
located on the eastern side of the
Process plant and site facilities
are to be located immediately
to the west of the pit, with the
ex-pit waste rock dump and the
tailings storage facility located in
the centre and north-west of the
tenement respectively.
STRATEGIC
DEVELOPMENT
ADVANTAGES
Altura has several strategic
advantages over its competitors
that place it in a solid position
to become Australia’s likely next
producing lithium mine. These
include:
• Altura is well advanced with
its statutory approvals, with
landowner agreements
obtained, the mining leases
granted and the Mining
Proposal lodged;
• A binding offtake agreement
for a minimum of 100,000
tpa of lithium spodumene
concentrate for an initial five
year period; and
• Securing long lead capital
items comprising the purchase
of, and/or ordering of, high
pressure grinding rolls,
crushing and screening plant
and ball mill.
9
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED CORPORATE
DEVELOPMENTS
Key corporate developments
during the year include:
of $3 million at an issue price of
8.1 cents per share.
FUNDING
The rights issue and placement
conducted in April and May
2015 enabled the Company to
commence the 2015/16 financial
year with sufficient funds to
undertake feasibility studies
and progress the mining lease
towards grant at the Pilgangoora
Lithium Project.
Altura received further funding
during 2015/16 from the
following sources.
Listed options expiring
30 June 2016
Listed options exercisable at
2 cents each were issued as
part of the 2015 rights issue
and placement. Funds from
these options were received
periodically during the year,
with the vast majority of options
being exercised during the
June quarter.
The listed options had a take-up
rate of 99.9% and resulted in
Altura receiving over $4 million
in proceeds.
Share placement with
Lionergy Limited
In February 2016 Altura agreed
on a share placement with
Lionergy Limited in the amount
This capital raising coincided with
the negotiation of a non-binding
letter of intent for spodumene
concentrate offtake.
Placement and share
purchase plan
A direct placement of $20 million
to institutional investors via Joint
Lead Managers, Bizzell Capital
Partners Pty Ltd and Canaccord
Genuity (Australia) Limited was
completed in June 2016.
The Company also conducted a
share purchase plan (SPP) capital
raising as a means to offer existing
shareholders the opportunity to
acquire shares at the same price
as the Placement, and a further
$774,000 was received from the
SPP in July 2016.
INDONESIAN
COAL ASSETS
During the year, the planned
spin-out of the Indonesian coal
assets was put on hold due to the
challenging commodity market
and investor interest in the coal
sector.
Altura has decided to divest these
assets to allow it to focus on the
Pilgangoora lithium project, and
is pursuing a number of options
for the coal assets including
their possible sale or an asset
integration with other similar
operations.
These assets comprise:
• The Delta coal mine in East
Kalimantan, where Altura has a
331/3% interest; and
• The Tabalong coal project in
South Kalimantan in which
Altura holds a 70% interest in
three Mining Permits (“SPK”,
“SCC” and “SP”) and a 56%
interest in two Mining Licences
(“KM” and “MBM”).
SALE OF TANAMI
TENEMENTS
Altura advised in June 2015 that
it had entered into an agreement
with ABM Resources NL to sell
90% of its right, title and interest
in its four tenements located in
the Tanami region of the Northern
Territory.
The requisite approvals from
the Central Land Council were
subsequently obtained and
settlement of the transaction
occurred during the December
quarter 2015.
10
ALTURA MINING LIMITED ANNUAL REPORT 2016 11
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED 12
ALTURA MINING LIMITED ANNUAL REPORT 2016 FINANCIAL
STATEMENTS
13
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED DIRECTORS'
REPORT
Your
directors
have
pleasure
in
presenting
the
annual
financial
report
of
Altura
Mining
Limited
("Altura"
or
"the
Company")
and
its
controlled
entities
(“the
Group”)
for
the
financial
year
ended
30
June
2016.
DIRECTORS
The
names
of
the
directors
in
office
at
any
time
during
or
since
the
end
of
the
financial
year
are:
Mr
James
Brown
Mr
Paul
Mantell
Mr
Allan
Buckler
Mr
Dan
O’Neill
Mr
Beng
Teik
Kuan
COMPANY
SECRETARIES
The
names
of
the
secretaries
in
office
during
the
whole
of
the
financial
year
and
up
to
the
date
of
this
report
are
as
follows:
Mr
Noel
Young
Mr
Damon
Cox
PRINCIPAL
ACTIVITIES
The
principal
activities
of
the
Group
during
the
financial
year
were
exploration
and
development
activities,
including
completion
of
a
very
successful
feasibility
study
at
its
100%
owned
Pilgangoora
Lithium
Project
in
the
Pilbara
region
of
Western
Australia.
OPERATING
AND
FINANCIAL
REVIEW
Overview
Altura
Mining
Limited
is
an
ASX
listed
entity
that
is
focused
on
the
development
of
its
100%
owned
Pilgangoora
Lithium
Project
in
Western
Australia.
Altura
also
has
interests
in
the
producing
Delta
Coal
project
in
Indonesia,
and
the
Tabalong
Coal
project
both
of
which
are
planned
to
be
divested.
Operating
results
The
Group’s
operating
loss
after
providing
for
income
tax
and
non-‐controlling
interests
for
the
year
ended
30
June
2016
was
$31,498,799
(2015:
loss
$29,847,345).
The
loss
in
2016
was
principally
due
to
the
impairment
its
equity
accounted
asset,
a
reduced
loss
from
its
equity
accounted
asset
and
lower
activity
in
the
group’s
exploration
services
sector.
The
result
was
assisted
by
a
foreign
exchange
gain
due
to
a
lower
Australian
dollar
at
year
end.
Strategy
The
Company’s
objective
is
to
create
shareholder
value
through
the
development
of
profitable
mining
operations,
and
other
mining
activities
that
deliver
strong
cash
flows
for
the
Group.
Altura
is
focussed
on
completion
of
the
definitive
feasibility
study
and
associated
activities
at
the
Pilgangoora
lithium
project,
with
the
intention
of
commencing
construction
of
the
mine
in
the
near
term.
The
Company
also
holds
coal
assets
in
Indonesia
in
which
it
intends
to
divest
as
soon
as
possible.
14
ALTURA MINING LIMITED ANNUAL REPORT 2016
DIRECTORS'
REPORT
CONTINUED
Pilgangoora
Lithium
During
the
year,
Altura
completed
its
Feasibility
Study
(FS)
on
the
Pilgangoora
Lithium
Project,
and
commenced
work
on
the
Definitive
Feasibility
Study
(DFS).
The
FS
released
to
the
ASX
on
11
April
2016
was
a
landmark
achievement
as
mining
development
is
fast
tracked
towards
production
in
2017.
The
key
outcomes
of
the
FS
included:
§
§
§
§
§
§
§
Annual
spodumene
concentrate
production
of
215,000
tonnes
over
a
14
year
mine
life;
Project
Net
Present
Value
(NPV)
of
$382
million
pre-‐tax
and
an
Internal
Rate
of
Return
of
59.5%;
Life
of
Mine
(LOM)
cash
cost
of
A$298
per
tonne
of
spodumene
concentrate;
Gross
margin
of
A$348
per
tonne,
based
on
a
market
price
at
the
time
of
US$494;
A
capital
estimate
of
A$129
million
including
deferred
capital;
A
very
attractive
LOM
strip
ratio
of
2.7:1;
and
A
payback
period
of
1.7
years.
The
DFS
is
due
for
completion
during
Q3
2016,
with
production
planned
for
Q4
2017
after
a
nine
month
construction
period
which
will
place
Altura
in
an
elite
group
of
near
term
lithium
supply
companies.
Altura’s
Pilgangoora
deposit
will
be
mined
by
conventional
bulk
mining
methods
utilising
hydraulic
excavators,
dump
trucks
and
drill
and
blast
coupled
to
a
ROM
stockpile.
Ore
will
be
trucked
directly
from
the
blasted
faces
to
the
ROM
stockpile
and
fed
to
the
primary
crusher
using
a
front-‐end
loader.
The
spodumene
concentrate
will
be
exported
by
ship
from
Port
Hedland
to
lithium
producers,
predominantly
in
China,
for
further
processing
into
a
wide
range
of
lithium
chemicals,
including
lithium
carbonate
(standard
and
battery
grade),
lithium
hydroxide,
lithium
metal,
and
lithium
chloride.
The
Company
has
signed
a
binding
Offtake
Agreement
(BOA)
with
China
based
group
Lionergy
Limited,
in
which
Lionergy
will
take
a
minimum
of
100,000
tonnes
of
6%
Li2O
grade
spodumene
concentrate
annually
for
an
initial
5
year
period,
with
options
for
extensions
to
be
negotiated
between
the
parties.
Altura
has
also
entered
into
a
non-‐binding
Memorandum
of
Understanding
(MOU)
with
China
based
lithium
battery
and
electronic
vehicle
producing
group,
Optimum
Nano
Battery
Co.
Limited
(Optimum
Nano).
Apart
from
Altura’s
proposed
supply
of
spodumene
to
Optimum
Nano,
the
MOU
paves
the
way
for
Altura
to
enter
into
an
alliance
with
Optimum
Nano
as
a
natural
resource
supplier
into
the
expanding
lithium
battery
market.
During
the
year,
Altura
signed
an
Access
and
Compensation
Deed
with
the
pastoral
lease
holders
who
occupy
the
land
over
which
Altura’s
Pilgangoora
tenements
are
located,
and
in
early
July
2016,
the
Company
signed
a
Native
title
Agreement
with
the
Njamal
people,
the
traditional
owners
of
the
land.
As
part
of
its
progression
of
the
project
to
commencement
of
development,
the
Company
has
also
prepared
the
mining
proposal
for
submission
to
the
DMP
(WA
Department
of
Mines
and
Petroleum),
issued
mining
tender
documents
to
prospective
contractor
bidders,
issued
a
power
plant
tender,
reached
agreement
with
the
local
authority
to
upgrade
the
haul
road
and
commenced
haul
road
design.
The
in-‐house
Project
team
has
also
been
significantly
expanded
including
recruitment
of
a
full
time
Processing
Manager,
and
a
Mining
Superintendent.
Coal
Assets
Delta
Coal
During
the
year,
Altura
continued
to
hold
its
interest
in
the
one-‐third
owned
Delta
coal
mine
on
the
island
of
Kalimantan
in
Indonesia.
The
Delta
mine
produces
a
medium
energy
thermal
coal
and
during
the
2015/16
financial
year,
the
mine
produced
0.404
million
tonnes
(mt)
and
sold
0.453mt
of
coal.
Production
during
the
year
was
lower
than
during
the
2014/15
financial
year
due
a
depressed
coal
market,
and
continuing
lower
production
from
contractors
during
the
year.
It
is
the
stated
intention
of
the
Company
that
the
coal
asset
would
be
divested.
15
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
DIRECTORS'
REPORT
CONTINUED
Tabalong
Coal
The
Tabalong
Coal
Project
is
a
premium
grade
thermal
coal
deposit
located
in
South
Kalimantan,
Indonesia.
The
project
consists
of
five
(5)
Mining
Licences
(IUPs),
with
all
five
(5)
IUPs
granted
for
Operation
Production.
Altura
holds
70%
of
three
IUPs
and
56%
of
the
remaining
two.
Divestment
of
Coal
Assets
During
the
year,
the
Company
stated
its
intention
to
divest
its
interests
in
both
the
Delta
and
Tabalong
coal
assets.
It
is
pursuing
a
number
of
options
including
the
possible
sale
of
the
coal
assets
or
an
asset
integration
with
other
similar
operations.
Financial
position
The
net
assets
of
the
consolidated
group
in
2016
are
similar
to
the
2015
year,
with
current
assets
significantly
higher
due
to
the
recent
$20
million
capital
raising
conducted
by
the
Company,
while
non-‐current
assets
are
lower
due
to
the
impairment
of
the
investments
accounted
for
using
the
equity
method.
Risk
Development
of
Altura’s
Pilgangoora
Lithium
Project
is
subject
to
the
Company
receiving
all
approvals
necessary
to
allow
it
to
commence
construction,
and
the
ability
of
the
Company
to
finance
its
construction.
The
Company
is
also
subject
to
movements
in
international
commodity
prices,
and
being
an
Australian
based
company,
foreign
exchange
movements.
DIVIDENDS
There
were
no
dividends
paid
or
declared
during
the
year
ended
30
June
2016
(2015:
Nil).
SIGNIFICANT
CHANGES
IN
THE
STATE
OF
AFFAIRS
There
were
no
other
significant
changes
in
the
nature
of
the
Group’s
principal
activities
during
the
financial
year,
other
than
as
discussed
in
the
financial
report
and
elsewhere
in
this
Directors
Report.
MATTERS
SUBSEQUENT
TO
THE
END
OF
THE
FINANCIAL
YEAR
The
Share
Purchase
Plan
closed
on
13
July
2016.
Applications
for
3,869,000
shares
were
received,
all
were
accepted
resulting
in
the
receipt
of
$773,800
into
the
Company’s
bank
account,
together
with
shares
issued
on
18
July
2016.
Two
Mining
Leases
(M45/1230
and
M45/1231)
for
the
Company’s
Pilgangoora
Lithium
Project
were
granted
on
26
August
2016,
enabling
the
Mining
Proposal
to
be
lodged
with
the
DMP
on
2
September
2016.
FUTURE
DEVELOPMENTS,
PROSPECTS
AND
BUSINESS
STRATEGIES
The
Group
will
focus
on
completing
the
definitive
feasibility
study
for
the
Pilgangoora
lithium
project,
so
that
commencement
of
construction
of
the
mine
can
commence
as
soon
as
possible.
The
Group
intends
to
divest
is
interests
in
the
coal
projects
as
soon
as
possible
so
it
can
focus
on
its
lithium
project.
ENVIRONMENTAL
PERFORMANCE
The
Group
is
committed
to
achieving
a
high
standard
of
environmental
performance.
The
Board
of
Directors
is
responsible
for
regular
monitoring
of
environmental
exposures
and
compliance
with
environmental
regulations.
The
Group
complied
with
its
environmental
performance
obligations
during
the
year.
16
ALTURA MINING LIMITED ANNUAL REPORT 2016
DIRECTORS'
REPORT
CONTINUED
INFORMATION
ON
DIRECTORS
Mr
James
Brown
(Managing
Director)
Qualifications
Graduate
Diploma
in
Mining
from
University
of
Ballarat
Experience
Mr
Brown
is
a
mining
engineer
with
more
than
30
years'
experience
in
the
coal
mining
industry
in
Australia
and
Indonesia,
including
22
years
at
New
Hope
Corporation.
He
was
appointed
as
Managing
Director
of
Altura
in
September
2010
and
was
previously
Altura’s
Group
General
Manager
since
December
2008.
His
coal
development
and
operations
experience
includes
the
New
Acland
and
Jeebropilly
mines
in
South
East
Queensland,
the
Adaro
and
Multi
Harapan
Utama
operations
in
Indonesia
and
Blair
Athol
in
the
Bowen
Basin
in
Central
Queensland.
Other
current
directorships
in
listed
entities
Sayona
Mining
Limited
Former
directorships
in
last
3
years
None
Special
responsibilities
Chief
Executive
Officer
Interests
in
shares
26,518,301
ordinary
shares
in
Altura
Mining
Limited
Mr
Paul
Mantell
(Executive
Director)
Qualifications
Bachelor
of
Commerce
from
the
University
of
Queensland
and
a
Fellow
of
CPA
Australia
Experience
Mr
Mantell
is
an
accountant
with
more
than
35
years
corporate
experience
in
the
mining
and
associated
industries.
He
has
been
involved
in
all
aspects
of
accounting
and
finance,
financial
reporting,
taxation
and
administration,
including
the
responsibilities
of
an
ASX
listed
entity.
His
responsibilities
have
included
arranging
finance
for
mining
and
infrastructure
projects
both
in
Australia
and
Indonesia
and
for
setting
up
corporate,
administrative
and
financial
systems
to
support
new
and
expanding
mining
operations.
He
was
appointed
a
director
on
25
May
2009.
Mr
Mantell
stepped
down
as
an
Executive
Director
of
the
Company
in
September
2013
to
work
on
a
number
of
projects
in
Asia,
but
returned
to
the
full
time
Executive
Directors
role
in
early
2016.
Other
current
directorships
in
listed
entities
None
Former
directorships
in
last
3
years
None
Special
responsibilities
Chief
Financial
Officer
Interests
in
shares
and
options
32,503,084
ordinary
shares
in
Altura
Mining
Limited
17
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
DIRECTORS'
REPORT
CONTINUED
INFORMATION
ON
DIRECTORS
(continued)
Mr
Allan
Buckler
(Non-‐Executive
Director)
Qualifications
Certificate
in
Mine
Surveying
and
Mining,
First
Class
Mine
Managers
Certificate
and
a
Mine
Surveyor
Certificate
issued
by
the
Queensland
Government’s
Department
of
Mines
Experience
Mr
Buckler
has
over
40
years’
experience
in
the
mining
industry
and
has
taken
lead
roles
in
the
establishment
of
several
leading
mining
and
port
operations
in
both
Australia
and
Indonesia.
Significant
operations
such
as
PT
Adaro
Indonesia,
PT
Indonesia
Bulk
Terminal
and
New
Hope
Coal
Australia
have
been
developed
under
his
leadership.
Mr
Buckler
was
appointed
a
director
on
18
December
2008.
Other
current
directorships
in
listed
entities
Sayona
Mining
Limited
Former
directorships
in
last
3
years
None
Special
responsibilities
Member
of
the
Audit
&
Risk
Committee
Member
of
the
Remuneration
&
Nomination
Committee
Interests
in
shares
and
options
177,193,692
ordinary
shares
in
Altura
Mining
Limited
Mr
Dan
O’Neill
(Independent
Non-‐Executive
Director)
Qualifications
Bachelor
of
Science
in
geology
from
the
University
of
Western
Australia
Experience
Mr
O’Neill
was
appointed
a
director
on
18
December
2008.
He
has
held
positions
with
a
number
of
Australian
and
multinational
exploration
companies
and
has
managed
exploration
programs
in
a
diverse
range
of
environments
and
locations
including
Botswana,
North
America,
South
East
Asia,
North
Africa
and
Australasia.
During
his
30
years’
experience
he
has
held
executive
management
positions
with
ASX
listed
companies
and
has
worked
on
a
range
of
commodities
including
diamonds,
gold,
base
metals,
coal,
oil
and
gas.
Other
current
directorships
in
listed
entities
Sayona
Mining
Limited
Former
directorships
in
last
3
years
None
Special
responsibilities
Chairman
of
the
Remuneration
&
Nomination
Committee
Member
of
the
Audit
&
Risk
Committee
Interests
in
shares
and
options
14,333,336
ordinary
shares
in
Altura
Mining
Limited
18
ALTURA MINING LIMITED ANNUAL REPORT 2016
DIRECTORS'
REPORT
CONTINUED
INFORMATION
ON
DIRECTORS
(continued)
Mr
Beng
Teik
Kuan
(Independent
Non-‐Executive
Director)
Qualifications
Bachelor
of
Engineering
(University
of
Malaya)
Experience
Mr
Kuan
is
an
engineer
with
considerable
experience
in
bulk
handling
and
terminal
operations,
including
responsibility
for
the
development
and
management
of
the
Pulau
Laut
Coal
Terminal
in
South
Kalimantan,
Indonesia.
He
also
has
experience
in
Indonesia,
Malaysia
and
Singapore
with
tin
dredging
operations,
managing
rubber,
palm
oil
and
cocoa
processing
factories,
and
managing
palm
oil
bulk
terminals.
He
was
appointed
a
director
on
28
November
2007.
Other
current
directorships
in
listed
entities
None
Former
directorships
in
last
3
years
None
Special
responsibilities
Chairman
of
the
Audit
&
Risk
Committee
Member
of
the
Remuneration
&
Nomination
Committee
Interests
in
shares
and
options
20,800,000
ordinary
shares
in
Altura
Mining
Limited
COMPANY
SECRETARIES
Mr
Noel
Young
Mr
Young
is
a
Fellow
of
the
Institute
of
Public
Accountants.
He
has
over
30
years’
experience
in
the
mining
industry
and
holds
the
dual
role
of
Group
Financial
Controller
and
Company
Secretary.
Mr
Damon
Cox
Mr
Cox
is
a
Chartered
Secretary,
and
a
CPA.
He
has
over
30
years’
experience
in
various
roles
including
corporate
governance,
compliance,
treasury
and
strategic
policy
advice.
19
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
DIRECTORS'
REPORT
CONTINUED
REMUNERATION
REPORT
(Audited)
This
report
details
the
nature
and
amount
of
remuneration
for
directors
and
other
key
management
personnel.
Remuneration
Policy
The
Company’s
policy
is
to
remunerate
fairly
and
in
line
with
companies
of
similar
size,
operations
and
in
the
same
industry.
Individual
remuneration
decisions
are
made
by
the
Remuneration
&
Nomination
Committee
taking
into
account
the
following
factors:
•
•
•
•
The
responsibility
of
the
role;
Experience
of
the
employee;
Past
performance
and
future
expectations;
and
Industry
conditions
and
trends.
In
order
to
retain
and
attract
key
management
personnel
of
sufficient
calibre
to
facilitate
the
efficient
and
effective
management
of
the
Company’s
operations,
the
Remuneration
&
Nomination
Committee
may
seek
the
advice
of
external
advisors
in
connection
with
the
structure
of
remuneration
packages.
Remuneration
packages
may
contain
the
following
key
elements:
a)
b)
c)
Primary
benefits
-‐
salary/fees,
bonuses
and
non-‐monetary
benefits
including
the
provision
of
a
motor
vehicle;
Post-‐employment
benefits
-‐
including
superannuation
and
prescribed
retirement
benefits;
and
Equity
-‐
performance
rights
and
share
options
granted
under
the
Long-‐Term
Incentive
Plan
as
disclosed
in
Note
22
to
the
financial
statements.
None
of
the
Company’s
personnel
remuneration
packages
are
linked
directly
to
the
Company’s
profitability
or
other
measure
of
performance.
The
Company
maintains
a
Long-‐Term
Incentive
Plan
under
which
employees
may
be
granted
performance
rights
and
share
options
which
vest
subject
to
service
conditions
being
met.
Directors
may
also
be
allocated
options
as
an
incentive
that
could
be
realised
if
the
Company’s
share
price
increases.
During
the
2016
year,
directors
were
issued
with
shares
on
the
vesting
of
previously
issued
performance
rights.
Performance-‐based
remuneration
The
Company
currently
has
performance
based
remuneration
in
place
refer
Note
22.
Group
Performance,
Shareholder
Wealth
and
Director
and
Executive
Remuneration
The
Group
has
recorded
the
following
earnings
from
continuing
operations
over
the
last
five
years:
Revenues
and
sundry
income
EBITDA
*
NPBT
*
NPAT
*
Dividends
paid
2016
1,485,611
(11,290,052)
(30,839,474)
(31,618,016)
-‐
2015
4,779,039
(15,861,975)
(16,947,795)
(17,268,152)
-‐
2014
7,610,019
(5,588,222)
(6,530,675)
(7,017,662)
-‐
2013
7,370,049
(535,167)
(1,044,269)
(979,641)
-‐
2012
10,424,210
(1,719,227)
(1,580,280)
(1,919,347)
-‐
*
Definitions:
EBITDA
=
Earnings
before
interest,
tax,
depreciation
and
amortisation
NPBT
=
Net
profit
before
tax
NPAT
=
Net
profit
after
tax
&
minority
interest
Key
Management
Personnel
Remuneration
Policy
The
Remuneration
&
Nomination
Committee
reviews
the
remuneration
packages
of
all
directors
and
key
management
personnel
on
an
annual
basis.
Remuneration
packages
are
reviewed
and
determined
with
due
regard
to
relevant
market
conditions
and
individual’s
experience
and
qualification
and
are
benchmarked
against
comparable
industry
salaries.
Payment
of
bonuses
and
share
based
compensation
benefits
is
discretionary.
20
ALTURA MINING LIMITED ANNUAL REPORT 2016
DIRECTORS'
REPORT
CONTINUED
REMUNERATION
REPORT
(Audited)
(continued)
Employment
Contracts
of
Key
Management
Personnel
Contracts
of
employment
are
given
to
key
management
personnel
at
time
of
employment.
Details
are
as
follows:
James
Brown,
Managing
Director
-‐
the
agreement
is
of
no
fixed
term
and
allows
for
payment
of
a
monthly
cash
salary
in
US
dollars,
reviewed
each
year,
plus
allowances.
Three
months’
notice
of
termination
by
either
party
is
required,
with
a
separation
allowance
equivalent
to
one
year’s
salary
and
entitlements
to
be
paid
if
employment
is
terminated
by
the
Company.
Paul
Mantell,
Executive
Director
–
During
the
2015/16
financial
year,
Mr
Mantell
returned
to
the
full
time
role
of
Executive
Director.
His
agreement
is
of
no
fixed
term
and
allows
for
payment
of
an
annual
cash
salary,
reviewed
each
year,
and
superannuation.
Provision
of
a
motor
vehicle
or
equivalent
allowance
and
other
non-‐cash
benefits
is
included.
Three
months’
notice
of
termination
by
either
party
is
required,
with
a
separation
allowance
equivalent
to
one
year’s
gross
salary
to
be
paid
if
employment
was
terminated
by
the
Company.
Chris
Evans,
General
Manager,
Operations
-‐
The
agreement
is
of
no
fixed
term
and
allows
for
payment
of
an
annual
cash
salary,
reviewed
each
year,
and
superannuation.
Three
months’
notice
of
termination
by
either
party
is
required,
with
a
separation
allowance
equivalent
to
one
month’s
salary
for
every
completed
year
of
service
up
to
a
maximum
of
six
months’
salary
will
be
paid
if
employment
was
terminated
by
the
Company.
Noel
Young,
Group
Financial
Controller
&
Company
Secretary
–
the
agreement
is
of
no
fixed
term
and
allows
for
payment
of
an
annual
cash
salary
in
US
dollars,
reviewed
each
year,
plus
allowances.
Two
months’
notice
of
termination
by
either
party
is
required,
with
a
separation
allowance
equivalent
to
six
month’s
gross
salary
to
be
paid
if
employment
is
terminated
by
the
Company.
Damon
Cox,
Company
Secretary
-‐
the
agreement
is
of
no
fixed
term
and
allows
for
payment
of
an
annual
cash
salary,
reviewed
each
year,
and
superannuation.
Provision
of
a
motor
vehicle
is
included.
One
month’s
notice
of
termination
by
either
party
is
required.
21
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
DIRECTORS'
REPORT
CONTINUED
REMUNERATION
REPORT
(Audited)
(continued)
Key
Management
Personnel
Remuneration
2016
Name
Short-‐term
benefits
Cash
salary
and
fees
$
Bonus
$
Non-‐
monetary
benefits
$
Post
employment
Share
based
payments
Total
Super-‐
annuation
$
Performance
rights
$
Bonus
$
$
Performance
rights
as
a
percentage
of
Total
%
Non-‐executive
directors
A
Buckler
D
O’Neill
B
Kuan
P
Mantell
#
Sub
total
non-‐executive
directors
Managing
directors
J
Brown
Other
key
management
personnel
P
Mantell
^
C
Evans
##
N
Young
D
Cox
Total
for
key
management
personnel
compensation
Total
compensation
30,000
36,000
23,000
-‐
89,000
346,223
111,834
191,026
205,737
125,000
979,820
1,068,820
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
2,850
3,420
16,420
4,770
4,770
4,770
6,624
-‐
23,850
88,200
88,200
88,200
88,200
125,820
132,390
132,390
118,674
3.8
3.6
3.9
20.1
6,624
22,690
38,160
352,800
509,274
94,913
-‐
47,700
88,200
577,036
8.3
3,312
-‐
69,223
20,177
14,011
18,147
3,810
11,875
-‐
9,540
9,540
9,540
-‐
115,146
16,500
235,213
-‐
-‐
288,310
166,592
-‐
4.1
3.3
5.7
187,625
47,844
76,320
104,700
1,396,309
194,249
70,534
114,480
457,500
1,905,583
#
Non-‐executive
director
until
29
February
2016
^
Executive
director
from
1
March
2016
##
Commenced
employment
with
Altura
on
20
July
2015
No
termination
payments
or
long
service
leave
payments
were
made
during
the
year
22
ALTURA MINING LIMITED ANNUAL REPORT 2016
DIRECTORS'
REPORT
CONTINUED
REMUNERATION
REPORT
(Audited)
(continued)
2015
Name
Short-‐term
benefits
Post
employment
Share
based
payments
Total
Cash
salary
and
fees
$
Bonus
$
Non-‐
monetary
benefits
$
Super-‐
annuation
$
Performance
rights
$
Bonus
$
$
Performance
rights
as
a
percentage
of
Total
%
Non-‐executive
directors
A
Buckler
D
O’Neill
B
Kuan
P
Mantell
Sub
total
non-‐executive
directors
Managing
directors
J
Brown
Other
key
management
personnel
N
Young
D
Cox
Total
for
key
management
personnel
compensation
Total
compensation
40,000
48,000
45,000
19,710
152,710
362,485
135,819
125,000
623,304
776,014
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
3,800
4,560
4,275
6,714
6,714
6,714
10,383
25,690
33,569
19,950
19,950
19,950
99,750
70,464
79,224
75,939
189,102
9.5
8.5
8.8
17.8
10,383
38,325
53,711
159,600
414,729
86,734
-‐
67,138
199,500
715,857
9.4
23,199
20,283
13,062
11,875
13,428
13,428
39,900
39,900
225,408
210,486
6.0
6.4
130,216
24,937
93,994
279,300
1,151,752
140,599
63,262
147,705
438,900
1,566,480
No
termination
payments
or
long
service
leave
payments
were
made
during
the
year.
Shares
Shares
were
issued
to
directors
(following
approval
at
the
Annual
General
Meeting
in
November
2015),
key
management
personnel
and
other
senior
staff
as
part
of
their
remuneration
for
the
year
ended
30
June
2016.
The
following
shares
were
issued
to
directors
and
key
management
personnel
during
the
year
ended
30
June
2016:
J
Brown
P
Mantell
A
Buckler
D
O’Neill
BT
Kuan
C
Evans
Number
issued
Issue
date
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
1,000,000
11,000,000
20/11/15
20/11/15
20/11/15
20/11/15
20/11/15
11/08/15
Value
per
share
at
issue
date
$
0.0441
0.0441
0.0441
0.0441
0.0441
0.0165
Shares
were
also
issued
on
the
vesting
of
performance
rights
to
directors
(the
issuing
of
the
rights
had
been
approved
at
the
2014
AGM),
key
management
personnel
and
other
senior
staff
as
part
of
their
remuneration
for
the
year
ended
30
June
2016.
23
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
DIRECTORS'
REPORT
CONTINUED
REMUNERATION
REPORT
(Audited)
(continued)
The
following
shares
on
the
vesting
of
performance
rights
were
issued
to
directors
and
key
management
personnel
during
the
year
ended
30
June
2016:
Number
issued
Issue
date
1,000,000
500,000
100,000
100,000
100,000
200,000
200,000
200,000
2,400,000
11/12/15
11/12/15
11/12/15
11/12/15
11/12/15
11/12/15
11/12/15
11/12/15
Value
per
share
at
issue
date
$
0.0477
0.0477
0.0477
0.0477
0.0477
0.0477
0.0477
0.0477
J
Brown
P
Mantell
A
Buckler
D
O’Neill
BT
Kuan
C
Evans
N
Young
D
Cox
Options
There
were
no
new
options
issued
to
directors
and
key
management
personnel
as
part
of
their
remuneration
for
the
year
ended
30
June
2016,
and
there
are
no
options
on
issue
as
at
30
June
2016.
Performance
Rights
In
2014
the
Company
established
a
new
Long-‐Term
Incentive
Plan
(LTIP)
to
assist
in
the
reward
and
retention
of
directors
and
employees.
A
total
of
8,100,000
rights
were
granted
in
December
2014
to
directors
(with
shareholder
approval),
key
management
personnel
and
other
senior
staff.
A
further
1,450,000
rights
were
granted
to
key
management
personnel
and
other
senior
staff
in
the
year
ended
30
June
2016.
The
rights
awarded
during
the
year
were
granted
for
no
consideration.
No
amount
is
payable
on
the
vesting
of
the
rights.
The
rights
will
vest
and
automatically
convert
to
ordinary
shares
in
the
Company
following
the
satisfaction
of
the
service
conditions.
The
following
performance
rights
were
on
issue
to
directors
and
key
management
personnel
as
at
30
June
2016:
Granted
number
2,000,000
1,000,000
200,000
200,000
200,000
800,000
400,000
400,000
5,200,000
Vesting
30
Nov
2016
1,000,000
500,000
100,000
100,000
100,000
400,000
200,000
200,000
2,600,000
Vesting
30
Nov
2017
1,000,000
500,000
100,000
100,000
100,000
400,000
200,000
200,000
2,600,000
End
of
Audited
Remuneration
Report
J
Brown
P
Mantell
A
Buckler
D
O’Neill
BT
Kuan
C
Evans
N
Young
D
Cox
24
ALTURA MINING LIMITED ANNUAL REPORT 2016
DIRECTORS'
REPORT
CONTINUED
MEETINGS
OF
DIRECTORS
The
following
table
sets
out
the
number
of
Directors’
meetings
(including
meetings
of
committees
of
directors)
held
during
the
financial
year
and
the
number
of
meetings
attended
by
each
director
(while
they
were
a
director
or
committee
member).
During
the
financial
year
there
were
4
Directors’
meetings,
3
Audit
&
Risk
Committee
meetings
and
2
Remuneration
&
Nomination
Committee
meetings
held.
Directors’
Meetings
Audit
&
Risk
Committee
Number
eligible
to
attend
4
4
4
4
4
Number
attended
4
4
4
3
4
Number
eligible
to
attend
-‐
-‐
3
3
3
Number
attended
-‐
-‐
3
2
3
Remuneration
&
Nomination
Committee
Number
eligible
to
attend
-‐
-‐
2
2
2
Number
attended
-‐
-‐
2
2
2
J
Brown
P
Mantell
A
Buckler
D
O’Neill
B
Kuan
INDEMNIFICATION
AND
INSURANCE
OF
DIRECTORS
AND
OFFICERS
The
Company
has
entered
into
Deeds
of
Indemnity
with
all
of
its
directors
in
accordance
with
the
Company’s
Constitution.
During
the
financial
year
the
Company
paid
a
premium
to
insure
the
directors,
officers
and
managers
of
the
Company
and
its
controlled
entities.
The
insurance
contract
requires
that
the
amount
of
the
premium
paid
is
kept
confidential.
OPTIONS
At
the
date
of
signing
this
report,
there
were
no
unissued
ordinary
shares
of
Altura
Mining
Limited
under
option.
PROCEEDINGS
ON
BEHALF
OF
THE
COMPANY
No
person
has
applied
for
leave
of
the
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
The
Company’s
auditor,
PKF
Hacketts
Audit,
did
not
provide
any
non-‐audit
services
to
the
Company
during
the
year
ended
30
June
2016.
ROUNDING
OF
AMOUNTS
The
Company
is
an
entity
to
which
ASIC
Class
Order
98/100
applies
and,
accordingly,
amounts
in
the
financial
statements
and
directors’
report
have
been
rounded
to
the
nearest
thousand
dollars.
AUDITOR’S
INDEPENDENCE
DECLARATION
The
auditor’s
independence
declaration
for
the
year
ended
30
June
2016
has
been
received
and
is
included
on
page
14
of
the
annual
report.
Signed
in
accordance
with
a
resolution
of
the
Directors
made
pursuant
to
Section
298(2)
of
the
Corporations
Act
2001.
On
behalf
of
the
Directors,
BT
Kuan
Director
Brisbane,
13
September
2016
25
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
AUDITOR'S
INDEPENDENCE
DECLARATION
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF
ALTURA MINING LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2016, there
have been:
(a)
no contraventions of the auditor independence requirements of the Corporations Act 2001
in relation to the audit; and
(b)
no contraventions of any applicable code of professional conduct in relation to the audit.
PKF HACKETTS AUDIT
Liam Murphy
Partner
Brisbane, 13 September 2016
26
14
ALTURA MINING LIMITED ANNUAL REPORT 2016
CONSOLIDATED STATEMENT OF
PROFIT AND LOSS
FOR THE YEAR ENDED 30 JUNE 2016
Continuing
operations
Revenue
Cost
of
sales
Operating
profit
/
(loss)
Other
income
Foreign
exchange
movement
gain
Sundry
income
Expenses
Administration
costs
Employee
benefits
expense
Exploration
costs
written
off
Other
expenses
Financing
costs
Impairment
of
goodwill
Impairment
on
equity
accounted
asset
Impairment
of
property,
plant
and
equipment
Share
of
net
profit
/
(loss)
of
equity
accounted
investee,
net
of
tax
Profit
/
(loss)
before
income
tax
Income
tax
(expense)
/
benefit
Profit
/
(loss)
after
income
tax
from
continuing
operations
Discontinued
operations
Loss
from
discontinued
operations
after
tax
Net
profit
/
(loss)
for
the
year
Profit
/
(loss)
attributable
to:
Owners
of
Altura
Mining
Limited
Non-‐controlling
interest
Note
5(a)
5(c)
5(b)
5(f)
15
5(d)
5(e)
16,24(c)
7(a)
3
2016
$’000
1,350
(2,112)
(762)
1,006
135
(4,074)
(2,668)
(3,895)
(51)
(277)
-‐
(18,480)
(261)
(1,513)
2015
$’000
4,745
(4,718)
27
4,730
34
(2,905)
(2,159)
(182)
(122)
(267)
(4,529)
(7,682)
-‐
(3,894)
(30,840)
(16,949)
(778)
(31,618)
-‐
(31,618)
(31,499)
(119)
(31,618)
(320)
(17,269)
(12,793)
(30,062)
(29,847)
(215)
(30,062)
Earnings
per
share
for
profit
from
continuing
operations
attributable
to
the
ordinary
equity
holders
of
the
company:
Basic
earnings
/
(loss)
per
share
(cents
per
share)
Diluted
earnings
/
(loss)
per
share
(cents
per
share)
Earnings
per
share
for
profit
attributable
to
the
ordinary
equity
holders
of
the
company:
Basic
earnings
/
(loss)
per
share
(cents
per
share)
Diluted
earnings
/
(loss)
per
share
(cents
per
share)
6
6
6
6
(3.50)
(3.50)
(3.48)
(3.48)
(3.50)
(3.50)
(6.09)
(6.09)
The
above
Consolidated
Statement
of
Profit
and
Loss
should
be
read
in
conjunction
with
the
accompanying
Notes.
ANNUAL REPORT 2016 ALTURA MINING LIMITED
27
ALTURA MINING LIMITED ANNUAL REPORT 2016
CONSOLIDATED STATEMENT OF OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2016
Profit
/
(loss)
for
the
year
(31,618)
(30,062)
Note
2016
$’000
2015
$’000
Other
comprehensive
income
/
(loss)
for
the
year
Items
that
may
be
reclassified
to
profit
and
loss
Changes
in
the
fair
value
of
available-‐for-‐sale
financial
assets
Exchange
differences
on
translation
of
foreign
controlled
entities
Other
comprehensive
income
/
(loss)
for
the
year,
net
of
tax
Total
comprehensive
income
/
(loss)
for
the
year
Total
comprehensive
income
/
(loss)
attributable
to:
Members
of
the
parent
entity
Non-‐controlling
interest
760
(409)
351
(31,267)
(31,132)
(135)
(31,267)
(11)
(496)
(507)
(30,569)
(30,300)
(269)
(30,569)
The
above
Consolidated
Statement
of
Other
Comprehensive
Income
should
be
read
in
conjunction
with
the
accompanying
Notes.
28
ALTURA MINING LIMITED ANNUAL REPORT 2016
CONSOLIDATED
BALANCE SHEET
AS AT 30 JUNE 2016
Current
assets
Cash
and
cash
equivalents
Trade
and
other
receivables
Held
to
maturity
investments
Inventories
Current
tax
prepaid
Other
current
assets
Assets
classified
as
held
for
sale
Total
current
assets
Non-‐current
assets
Other
receivables
Available-‐for-‐sale
financial
assets
Property,
plant
and
equipment
Exploration
and
evaluation
Investments
accounted
for
using
the
equity
method
Deferred
tax
asset
Total
non-‐current
assets
Total
assets
Current
liabilities
Trade
and
other
payables
Borrowings
Short
term
provisions
Total
current
liabilities
Non-‐current
liabilities
Borrowings
Total
non-‐current
liabilities
Total
liabilities
Net
assets
Equity
Contributed
equity
Reserves
Accumulated
losses
Capital
and
reserves
attributable
to
owners
of
Altura
Mining
Limited
Non-‐controlling
interest
Total
equity
Note
8
9
11
10
12
9
13
14
15
16
20(c)
17
18
19
18
21
21
2016
$’000
22,132
1,126
50
1
248
461
-‐
24,018
2,482
1,333
526
14,394
144
-‐
18,879
42,897
2,072
-‐
847
2,919
18,437
18,437
21,356
21,541
105,840
(240)
(84,333)
21,267
274
21,541
The
above
Consolidated
Balance
Sheet
should
be
read
in
conjunction
with
the
accompanying
Notes.
2015
$’000
2,092
2,758
1,280
1
525
480
100
7,236
2,377
573
1,382
14,949
19,451
505
39,237
46,473
1,872
397
777
3,046
17,607
17,607
20,653
25,820
78,904
179
(53,672)
25,411
409
25,820
29
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2016
Contributed
equity
Accumulated
losses
Option
&
performance
rights
reserve
Change
in
fair
value
-‐
market
valuation
Foreign
currency
translation
reserve
Non-‐
controlling
interests
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Balance
as
at
30
June
2014
74,562
(23,870)
880
54
(442)
678
51,862
Total
comprehensive
income
for
the
year
-‐
(29,847)
Transactions
with
owners
in
their
capacity
as
owners:
Issue
of
shares
–
employee
bonus
payment
Contributions
of
equity,
net
of
transaction
costs
Option
reserve
on
recognition
of
bonus
element
of
options
Transfer
from
option
reserve
on
expiry
of
options
Sub-‐Total
552
3,790
-‐
-‐
4,342
-‐
-‐
-‐
45
45
-‐
-‐
-‐
184
(45)
139
(11)
(441)
(269)
(30,568)
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
552
3,790
184
-‐
4,526
Balance
as
at
30
June
2015
78,904
(53,672)
1,019
43
(883)
409
25,820
Balance
as
at
30
June
2015
78,904
(53,672)
1,019
43
(883)
409
25,820
Total
comprehensive
income
for
the
year
-‐
(31,499)
Transactions
with
owners
in
their
capacity
as
owners:
Issue
of
shares
–
employee
bonus
payment
Issue
of
shares
–
loan
repayment
Contributions
of
equity,
net
of
transaction
costs
Transfer
from
share
based
payment
reserve
to
equity
Option
reserve
on
recognition
of
bonus
element
of
options
Transfer
from
option
reserve
on
expiry
of
options
Sub-‐Total
546
360
25,847
183
-‐
-‐
26,936
-‐
-‐
-‐
-‐
-‐
838
838
Balance
as
at
30
June
2016
105,840
(84,333)
-‐
-‐
-‐
-‐
(183)
235
(838)
(786)
233
760
(393)
(135)
(31,267)
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
546
360
25,847
-‐
235
-‐
26,988
803
(1,276)
274
21,541
The
above
Consolidated
Statement
of
Changes
in
Equity
should
be
read
in
conjunction
with
the
accompanying
Notes.
30
ALTURA MINING LIMITED ANNUAL REPORT 2016
CONSOLIDATED STATEMENT OF
CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2016
Note
27(b)
Cash
flows
from
operating
activities
Receipts
from
customers
Payments
to
suppliers
and
employees
Sundry
income
Interest
received
Interest
paid
Income
tax
paid
Net
cash
used
in
operating
activities
Cash
flows
from
investing
activities
Expenditure
on
exploration
and
evaluation
activities
Purchase
of
property,
plant
and
equipment
Proceeds
/
(payments)
from
held
to
maturity
investments
Proceeds
from
sale
of
property,
plant
and
equipment
Net
cash
(used
in)
/
provided
by
investing
activities
Cash
flows
from
financing
activities
Proceeds
from
the
issue
of
shares
-‐
net
of
transaction
costs
Payment
of
hire
purchase
liabilities
Proceeds
from
borrowings
Repayment
of
borrowings
Net
cash
provided
by
(used
in)
financing
activities
Net
increase
/
(decrease)
in
cash
and
cash
equivalents
held
Cash
and
cash
equivalents
at
the
beginning
of
year
Effect
of
exchange
rate
changes
on
cash
holdings
in
foreign
currencies
Cash
and
cash
equivalents
at
the
end
of
year
27(a)
Non
cash
investing
and
financing
activities
Proceeds
from
the
sale
of
30%
interest
in
the
Mt
Webber
DSO
project
Repayment
of
the
Atlas
Operations
Pty
Ltd
loan
facility
Increase
in
the
Atlas
Operations
Pty
Ltd
loan
facility
Contributions
made
to
Atlas
Operations
Pty
Ltd
loan
facility
Share
based
payments
Increase
in
the
Directors
and
management
loan
facility
through
expense
reimbursement
Repayment
of
Directors
and
management
loan
facility
by
the
issue
of
shares
3
3
22
2016
$’000
2,293
(6,369)
82
23
(8)
(75)
(4,054)
(3,100)
(12)
1,230
168
(1,714)
25,848
(11)
-‐
(20)
25,817
20,049
2,092
(9)
22,132
-‐
-‐
-‐
-‐
(545)
-‐
(360)
The
above
Consolidated
Statement
of
Cash
Flows
should
be
read
in
conjunction
with
the
accompanying
Notes.
2015
$’000
4,226
(7,243)
86
64
(23)
(64)
(2,954)
(834)
(45)
(1,000)
35
(1,844)
3,791
(17)
300
(500)
3,574
(1,224)
3,403
(87)
2,092
24,489
(24,489)
6,893
(6,893)
(552)
89
-‐
31
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
This
financial
report
includes
the
consolidated
financial
statements
and
notes
of
Altura
Mining
Limited
and
controlled
entities
(‘Consolidated
Group’
or
‘Group’).
Altura
Mining
Limited
is
a
company
limited
by
shares,
incorporated
and
domiciled
in
Australia,
whose
shares
are
publically
traded
on
the
Australian
Securities
Exchange.
The
separate
financial
statements
of
the
parent
entity,
Altura
Mining
Limited,
have
not
been
presented
within
this
financial
report
as
permitted
by
amendments
made
to
the
Corporations
Act
2001.
The
Group
is
a
for-‐profit
entity
for
financial
reporting
purposes
under
Australian
Accounting
Standards.
The
financial
statements
were
authorised
for
issue
on
13
September
2016
by
the
directors
of
the
Company.
1.
STATEMENT
OF
SIGNIFICANT
ACCOUNTING
POLICIES
a)
Basis
of
preparation
The
financial
report
is
a
general
purpose
financial
report
that
has
been
prepared
in
accordance
with
Australian
Accounting
Standards,
Australian
Accounting
Interpretations,
other
authoritative
pronouncements
of
the
Australian
Accounting
Standards
Board
and
the
Corporations
Act
2001.
Compliance
with
Australian
Accounting
Standards
ensures
that
the
financial
statements
and
notes
also
comply
with
International
Financial
Reporting
Standards
(“IFRS”)
as
issued
by
the
International
Accounting
Standards
Board
(“IASB”).
The
following
is
a
summary
of
the
material
accounting
policies
adopted
by
the
Consolidated
Group
in
the
preparation
of
the
financial
report.
The
financial
report
has
been
prepared
on
an
accruals
basis.
The
accounting
policies
have
been
consistently
applied,
unless
otherwise
stated.
i)
New
accounting
standards
for
application
in
future
periods
Accounting
Standards
issued
by
the
AASB
that
are
not
yet
mandatorily
applicable
to
the
Group,
together
with
an
assessment
of
the
potential
impact
of
such
pronouncements
on
the
Group
when
adopted
in
future
periods,
are
discussed
below:
AASB
9:
Financial
Instruments
and
associated
Amending
Standards
(applicable
for
annual
reporting
periods
beginning
on
or
after
1
January
2018).
The
Standard
will
be
applicable
retrospectively
(subject
to
the
provisions
on
hedge
accounting
outlined
below)
and
includes
revised
requirements
for
the
classification
and
measurement
of
financial
instruments,
revised
recognition
and
derecognition
requirements
for
financial
instruments
and
simplified
requirements
for
hedge
accounting.
The
key
changes
that
may
affect
the
Group
on
initial
application
include
certain
simplifications
to
the
classification
of
financial
assets,
simplifications
to
the
accounting
of
embedded
derivatives,
upfront
accounting
for
expected
credit
loss,
and
the
irrevocable
election
to
recognise
gains
and
losses
on
investments
in
equity
instruments
that
are
not
held
for
trading
in
other
comprehensive
income.
AASB
9
also
introduces
a
new
model
for
hedge
accounting
that
will
allow
greater
flexibility
in
the
ability
to
hedge
risk,
particularly
with
respect
to
hedges
of
non-‐
financial
items.
Should
the
entity
elect
to
change
its
hedge
policies
in
line
with
the
new
hedge
accounting
requirements
of
the
Standard,
the
application
of
such
accounting
would
be
largely
prospective
Although
the
directors
do
not
anticipate
that
the
adoption
of
AASB
9
will
have
a
material
impact
on
the
Group’s
financial
instruments,
including
hedging
activity,
it
is
impracticable
at
this
stage
to
provide
a
reasonable
estimate
of
such
impact.
AASB
15:
Revenue
from
Contracts
with
Customers
(applicable
to
annual
reporting
periods
beginning
on
or
after
1
January
2018,
as
deferred
by
AASB
2015-‐8:
Amendments
to
Australian
Accounting
Standards
–
Effective
Date
of
AASB
15).
This
Standard
is
not
expected
to
significantly
impact
the
Group’s
financial
statements.
AASB
16:
Leases
(applicable
for
annual
reporting
periods
beginning
on
or
after
1
January
2019).
When
effective,
this
Standard
will
replace
the
current
accounting
requirements
applicable
to
leases
in
AASB
117:
Leases
and
related
Interpretations.
AASB
16
introduces
a
single
lessee
accounting
model
that
eliminates
the
requirement
for
leases
to
be
classified
as
operating
or
finance
leases.
32
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
1.
STATEMENT
OF
SIGNIFICANT
ACCOUNTING
POLICIES
(Continued)
i) New
accounting
standards
for
application
in
future
periods
(Continued)
The
main
changes
introduced
by
the
new
Standard
include:
•
•
•
•
recognition
of
a
right-‐to-‐use
asset
and
liability
for
all
leases
(excluding
short-‐term
leases
with
less
than
12
months
of
tenure
and
leases
relating
to
low-‐value
assets;
depreciation
of
right-‐to-‐use
asset
in
line
with
AASB
116:
Property,
Plant
and
Equipment
in
profit
or
loss
and
unwinding
of
the
liability
in
principal
and
interest
components;
variable
lease
payments
that
depend
on
an
index
or
a
rate
are
included
in
the
initial
measurement
of
the
lease
liability
using
the
index
or
rate
at
the
commencement
date;
by
applying
a
practical
expedient,
a
lessee
is
permitted
to
elect
not
to
separate
non-‐lease
components
and
instead
account
for
all
components
as
a
lease;
and
•
additional
disclosure
requirements.
The
transitional
provisions
of
AASB
16
allow
a
lessee
to
either
retrospectively
apply
the
Standard
to
comparatives
in
line
with
AASB
108
or
recognize
the
cumulative
effect
of
retrospective
applications
as
an
adjustment
to
opening
equity
on
the
date
of
initial
application.
Although
the
directors
anticipate
that
the
adoption
of
AASB
16
will
impact
the
Group’s
financial
statements,
it
is
impracticable
at
this
stage
to
provide
a
reasonable
estimate
of
such
impact.
ii)
Impact
of
standards
issued
but
not
yet
applied
by
the
Group
The
Group
has
not
applied
any
accounting
standards
or
amendments
for
the
first
time
for
the
annual
reporting
period
commencing
1
July
2015.
iii) Historical
cost
convention
Except
for
cash
flow
information,
the
financial
statements
have
been
prepared
on
an
accruals
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.
iv)
Critical
accounting
estimates
The
preparation
of
financial
statements
requires
the
use
of
certain
critical
accounting
estimates.
It
also
requires
management
to
exercise
its
judgement
in
the
process
of
applying
the
Group’s
accounting
policies.
The
areas
including
a
high
degree
of
judgement
or
complexity,
or
areas
where
assumptions
and
estimates
are
significant
to
the
financial
statements
are
disclosed
in
Note
1n.
b)
Carrying
value
of
exploration
and
evaluation
expenditure
The
Group
has
capitalised
exploration
expenditure
of
$14.394
million
as
at
30
June
2016
(2015:
$14.949
million).
This
expenditure
includes
drilling
and
analysis
costs,
feasibility
study
costs
and
employee
remuneration
costs.
The
costs
are
capitalised
as
an
intangible
asset
until
the
Company
has
completed
its
assessment
of
the
existence
or
otherwise
of
recoverable
resources.
The
ultimate
recovery
of
the
carrying
value
of
exploration
expenditure
is
dependent
upon
the
successful
development
and
commercial
exploitation
or,
alternatively,
sale
of
the
interest
in
the
tenements.
Until
exploration
and
evaluation
activities
have
reached
a
stage
where
the
assessment
is
complete,
including
the
forecasting
of
cash
flows
to
assess
the
fair
value
of
the
expenditure,
there
is
an
uncertainty
as
to
the
carrying
value
of
the
expenditure.
The
Directors
are
of
the
opinion
that
the
exploration
expenditure
is
recoverable
for
the
amount
stated
in
the
financial
report.
33
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
1.
STATEMENT
OF
SIGNIFICANT
ACCOUNTING
POLICIES
(Continued)
c)
Principles
of
consolidation
i)
Subsidiaries
The
consolidated
financial
statements
incorporate
the
assets
and
liabilities
of
all
subsidiaries
of
Altura
Mining
Limited
(‘Company’
or
‘Parent
Entity’)
as
at
30
June
2016
and
the
results
of
the
subsidiaries
for
the
year
then
ended.
Altura
Mining
Limited
and
its
subsidiaries
together
are
referred
to
in
this
financial
report
as
the
Group
or
Consolidated
Entity.
The
Group
controls
an
entity
when
the
Group
is
exposed
to,
or
has
rights
to
variable
returns
from
its
involvement
with
the
entity
and
has
the
ability
to
affect
those
returns
through
its
power
over
the
entity.
A
list
of
controlled
entities
is
contained
in
Note
25
to
the
financial
statements.
All
Australian
controlled
entities
have
a
June
financial
year-‐end
and
all
other
controlled
entities
have
a
December
financial
year
end.
All
inter-‐company
balances
and
transactions
between
entities
in
the
Group,
including
any
unrealised
profits
or
losses,
have
been
eliminated
on
consolidation.
Accounting
policies
of
subsidiaries
have
been
changed
where
necessary
to
ensure
consistencies
with
those
policies
applied
by
the
Group.
Where
controlled
entities
have
entered
or
left
the
Group
during
the
year,
their
operating
results
have
been
included
from
the
date
control
was
obtained
or
until
the
date
control
ceased.
Non-‐controlling
interests,
being
that
portion
of
the
profit
or
loss
and
net
assets
of
subsidiaries
attributable
to
equity
interests
held
by
persons
outside
the
Group,
are
shown
separately
within
the
equity
section
of
the
Consolidated
Balance
Sheet
and
in
the
Consolidated
Income
Statement.
Losses
applicable
to
the
non-‐controlling
interest
in
a
consolidated
subsidiary
are
allocated
against
the
controlling
interest
except
to
the
extent
that
the
non-‐controlling
interest
has
a
binding
obligation
and
is
able
to
make
additional
investment
to
cover
the
losses.
If
in
future
years
the
subsidiary
reports
profits,
such
profits
are
allocated
to
the
controlling
interest
until
the
non-‐
controlling
interest’s
share
of
losses
previously
absorbed
by
the
controlling
interest
have
been
recovered.
The
acquisition
method
of
accounting
is
used
to
account
for
business
combinations
by
the
Group.
ii)
Associates
Associates
are
all
entities
over
which
the
Group
has
significant
influence
but
not
control
or
joint
control,
generally
accompanying
a
shareholding
between
20%
and
50%
of
voting
rights.
Investments
in
associates
are
accounted
for
using
the
equity
method
of
accounting,
after
initially
being
recognised
at
cost.
The
Group’s
investments
in
associates
includes
goodwill
identified
on
acquisition.
The
Group’s
share
of
its
associates
post-‐acquisition
profit
or
losses
is
recognised
in
profit
or
loss,
and
its
share
of
post-‐acquisition
other
comprehensive
income
is
recognised
in
other
comprehensive
income.
The
cumulative
post-‐
acquisition
movements
are
adjusted
against
the
carrying
amount
of
the
investment.
Dividends
receivable
from
associates
are
recognised
as
a
reduction
in
the
carrying
amount
of
the
investment.
iii)
Joint
arrangements
A
joint
arrangement
is
a
contractual
arrangement
whereby
two
or
more
parties
undertake
economic
activities
under
joint
control.
Joint
control
exists
only
when
the
strategic,
financial
and
operational
policy
decisions
relating
to
the
activities
of
the
joint
arrangement
require
the
unanimous
consent
of
the
parties
sharing
control
A
joint
arrangement
is
either
a
joint
operation
or
a
joint
venture.
The
structure
of
each
joint
arrangement
is
analysed
to
determine
whether
the
joint
arrangement
is
a
joint
operation
or
a
joint
venture.
The
classification
of
a
joint
arrangement
is
dependent
on
the
rights
and
obligations
of
the
parties
to
the
arrangement.
iv)
Joint
operation
The
Group
recognises
its
direct
right
to
the
assets,
liabilities,
revenues
and
expenses
of
joint
operations
and
its
share
of
any
jointly
held
or
incurred
assets,
liabilities,
revenues
and
expenses.
These
have
been
incorporated
in
the
financial
statements
under
the
appropriate
headings.
Details
of
the
joint
operation
are
set
out
in
Note
24.
34
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
1.
STATEMENT
OF
SIGNIFICANT
ACCOUNTING
POLICIES
(Continued)
v)
Joint
venture
A
joint
venture
is
structured
through
a
separate
vehicle
and
the
parties
have
rights
to
the
net
assets
of
the
arrangement.
Joint
ventures
are
accounted
for
using
the
equity
method
where
the
assets
and
liabilities
will
be
aggregated
into
one
line
item
on
the
face
of
the
Consolidated
Balance
Sheet,
after
adjusting
for
the
share
of
profit
or
loss
after
tax,
which
is
shown
as
a
separate
line
item
on
the
face
of
the
Consolidated
Statement
of
Profit
or
Loss
and
Other
Comprehensive
Income,
after
adjusting
for
amounts
recognised
directly
in
equity.
When
the
Group’s
share
of
losses
in
a
joint
venture
equals
or
exceeds
its
interest
in
the
joint
venture
(which
includes
any
long-‐term
interests
that,
in
substance,
form
a
part
of
the
Group’s
net
investment
in
the
joint
venture),
the
Group
does
not
recognise
further
losses,
unless
it
has
incurred
obligations
or
made
payments
on
behalf
of
the
joint
venture.
Unrealised
gains
on
transactions
between
the
Group
and
its
joint
ventures
are
eliminated
to
the
extent
of
the
Group’s
interest
in
the
joint
ventures.
Unrealised
losses
are
also
eliminated
unless
the
transaction
provides
evidence
of
an
impairment
of
the
asset
transferred.
Accounting
policies
of
the
joint
ventures
have
been
changed
where
necessary,
to
ensure
consistency
with
the
policies
adopted
by
the
Group.
vi)
Changes
in
ownership
interests
The
Group
treats
transactions
with
non-‐controlling
interests
that
do
not
result
in
a
loss
of
control
as
transactions
with
equity
owners
of
the
Group.
A
change
in
ownership
interest
results
in
an
adjustment
between
the
carrying
amounts
of
the
controlling
and
non-‐controlling
interests
to
reflect
their
relative
interests
in
the
subsidiary.
Any
difference
between
the
amount
of
the
adjustment
to
non-‐controlling
interests
and
any
consideration
paid
or
received
is
recognised
in
a
separate
reserve
within
equity
attributable
to
the
owners
of
Altura
Mining
Limited.
When
the
Group
ceases
to
have
control,
joint
control
or
significant
influence,
any
retained
interest
in
the
entity
is
remeasured
to
its
fair
value
with
the
change
in
carrying
amount
recognised
in
profit
or
loss.
This
fair
value
becomes
the
initial
carrying
amount
for
the
purposes
of
subsequently
accounting
for
the
retained
interest
as
an
associate,
jointly
controlled
entity
or
financial
asset.
In
addition,
any
amounts
previously
recognised
in
other
comprehensive
income
in
respect
of
that
entity
are
accounted
for
as
if
the
Group
had
directly
disposed
of
the
related
assets
or
liabilities.
This
may
mean
that
amounts
previously
recognised
in
other
comprehensive
income
are
reclassified
to
profit
or
loss.
If
the
ownership
interest
in
a
jointly
controlled
entity
or
an
associate
is
reduced
but
joint
control
or
significant
influence
is
retained,
only
a
proportionate
share
of
the
amounts
previously
recognised
in
other
comprehensive
income
are
reclassified
to
profit
or
loss
where
appropriate.
d)
Business
combinations
The
acquisition
method
of
accounting
is
used
to
account
for
all
business
combinations,
including
business
combinations
involving
entities
or
businesses
under
common
control,
regardless
of
whether
equity
instruments
or
other
assets
are
acquired.
The
consideration
transferred
for
the
acquisition
of
a
subsidiary
comprises
the
fair
values
of
the
assets
transferred,
the
liabilities
incurred
and
the
equity
interests
issued
by
the
Group.
The
consideration
transferred
also
includes
the
fair
value
of
any
contingent
consideration
arrangement
and
the
fair
value
of
any
pre-‐existing
equity
interest
in
the
subsidiary.
Acquisition
related
costs
are
expensed
as
incurred
with
the
exception
of
stamp
duty.
Identifiable
assets
acquired
and
liabilities
and
contingent
liabilities
assumed
in
a
business
combination
are,
with
limited
exceptions,
measured
initially
at
their
fair
values
at
the
acquisition
date.
On
an
acquisition
by
acquisition
basis,
the
Group
recognises
any
non-‐controlling
interest
in
the
acquiree
either
at
fair
value
or
at
the
non-‐controlling
interest’s
proportionate
share
of
the
acquiree’s
net
identifiable
assets.
The
excess
of
the
consideration
transferred
and
the
amount
of
any
non-‐controlling
interest
in
the
acquiree
and
the
acquisition
date
fair
value
of
any
previous
equity
interest
in
the
acquiree
over
the
fair
value
of
the
Group’s
share
of
the
net
identifiable
assets
acquired
is
recorded
as
goodwill.
If
those
amounts
are
less
than
the
fair
value
of
the
net
identifiable
assets
of
the
subsidiary
acquired
and
the
measurement
of
all
amounts
has
been
reviewed,
the
difference
is
recognised
directly
in
profit
or
loss
as
a
gain
on
acquisition
of
subsidiaries.
35
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
1.
STATEMENT
OF
SIGNIFICANT
ACCOUNTING
POLICIES
(Continued)
Where
settlement
of
any
part
of
cash
consideration
is
deferred,
the
amounts
payable
in
the
future
are
discounted
to
their
present
value
as
at
the
date
of
exchange.
The
discount
rate
used
is
the
entity’s
incremental
borrowing
rate,
being
the
rate
at
which
a
similar
borrowing
could
be
obtained
from
an
independent
financier
under
comparable
terms
and
conditions.
Contingent
consideration
is
classified
either
as
equity
or
a
financial
liability.
Amounts
classified
as
a
financial
liability
are
subsequently
remeasured
to
fair
value
with
changes
in
fair
value
recognised
in
profit
or
loss.
e)
Income
tax
The
charge
for
current
income
tax
expense
is
based
on
the
result
for
the
year
adjusted
for
any
non-‐assessable
or
disallowed
items.
It
is
calculated
using
the
tax
rates
that
have
been
enacted
or
are
substantially
enacted
by
the
balance
date
for
each
jurisdiction,
adjusted
by
changes
in
deferred
tax
assets
and
liabilities
attributable
to
temporary
differences
and
to
unused
tax
losses.
Deferred
tax
is
accounted
for
using
the
balance
sheet
liability
method
in
respect
of
temporary
differences
arising
between
the
tax
bases
of
assets
and
liabilities
and
their
carrying
amounts
in
the
financial
statements.
No
deferred
income
tax
will
be
recognised
from
the
initial
recognition
of
an
asset
or
liability,
excluding
a
business
combination,
where
there
is
no
effect
on
accounting
or
taxable
profit
or
loss.
Deferred
tax
is
calculated
at
the
tax
rates
(and
laws)
that
have
been
enacted,
or
substantially
enacted
by
the
end
of
the
reporting
period
and
are
expected
to
apply
to
the
period
when
the
asset
is
realised
or
liability
is
settled.
Deferred
tax
is
credited
in
the
income
statement
except
where
it
relates
to
items
that
may
be
credited
directly
to
equity,
in
which
case
the
deferred
tax
is
adjusted
directly
against
equity.
Deferred
income
tax
assets
are
recognised
to
the
extent
that
it
is
probable
that
future
tax
profits
will
be
available
against
which
deductible
temporary
differences
and
unused
tax
losses
can
be
utilised.
The
amount
of
benefits
brought
to
account
or
which
may
be
realised
in
the
future
is
based
on
the
assumption
that
no
adverse
change
will
occur
in
income
taxation
legislation
and
the
anticipation
that
the
economic
entity
will
derive
sufficient
future
assessable
income
to
enable
the
benefit
to
be
realised
and
comply
with
the
conditions
of
deductibility
imposed
by
the
law.
Deferred
tax
assets
and
liabilities
are
offset
when
there
is
a
legally
enforceable
right
to
offset
current
tax
assets
and
liabilities
and
when
the
deferred
tax
balances
relate
to
the
same
taxation
authority.
Current
tax
assets
and
tax
liabilities
are
offset
where
the
Group
has
a
legally
enforceable
right
to
offset
and
intends
to
settle
on
a
net
basis,
or
to
realise
the
asset
and
settle
the
liability
simultaneously.
Altura
Mining
Limited
and
some
of
its
wholly-‐owned
Australian
subsidiaries
have
formed
an
income
tax
consolidated
group
under
the
tax
consolidation
regime.
Each
entity
in
the
group
recognises
its
own
current
and
deferred
tax
amounts,
except
for
any
deferred
tax
liabilities
(or
assets)
resulting
from
unused
tax
losses
and
tax
credits,
which
are
immediately
assumed
by
the
parent
entity.
The
current
tax
liability
of
each
group
entity
is
then
subsequently
assumed
by
the
parent
entity.
The
group
notified
the
Australian
Tax
Office
that
it
had
formed
an
income
tax
consolidated
group
to
apply
from
1
July
2005.
The
tax
consolidated
group
has
entered
a
tax
sharing
agreement
under
which
the
wholly-‐
owned
entities
fully
compensate
Altura
Mining
Limited
for
any
current
tax
payable
assumed
and
are
compensated
by
Altura
Mining
Limited
for
any
current
tax
receivable
and
deferred
tax
assets
relating
to
unused
tax
losses
or
unused
tax
credits
that
are
transferred
to
Altura
Mining
Limited
under
the
tax
consolidated
legislation.
The
amounts
receivable/payable
under
the
tax
funding
agreement
are
due
upon
receipt
of
the
funding
advice
from
the
head
entity,
which
is
issued
as
soon
as
practicable
after
the
end
of
each
financial
year.
The
head
entity
may
also
require
payment
of
interim
funding
amounts
to
assist
with
its
obligations
to
pay
tax
instalments.
Assets
or
liabilities
arising
under
tax
funding
agreements
within
the
tax
consolidated
entities
are
recognised
as
current
amounts
receivable
from
or
payable
to
other
entities
in
the
Group.
Any
difference
between
the
amounts
assumed
and
amounts
receivable
or
payable
under
the
tax
funding
agreement
are
recognised
as
a
contribution
to
(or
distribution
from)
wholly-‐owned
tax
consolidated
entities.
36
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
1.
STATEMENT
OF
SIGNIFICANT
ACCOUNTING
POLICIES
(Continued)
f)
Segment
reporting
Operating
Segments
are
reported
in
a
manner
consistent
with
the
internal
reporting
provided
to
the
Chief
Operating
decision
maker.
The
Chief
Operating
decision
maker,
who
is
responsible
for
allocating
resources
and
assessing
performance
of
the
operating
segments
has
been
identified
as
the
Board
of
Directors.
g)
Property,
plant
and
equipment
Each
class
of
property,
plant
and
equipment
is
carried
at
cost
or
fair
value
less,
where
applicable,
any
accumulated
depreciation
and
impairment
losses.
Property
Freehold
land
and
buildings
are
measured
on
the
cost
basis.
The
carrying
amount
of
land
and
buildings
is
reviewed
annually
by
directors
to
ensure
it
is
not
in
excess
of
the
recoverable
amount
from
these
assets.
Plant
and
equipment
Plant
and
equipment
are
measured
on
the
cost
basis.
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
charged
to
the
income
statement
during
the
financial
period
in
which
they
are
incurred.
The
carrying
amount
of
plant
and
equipment
is
reviewed
annually
to
ensure
it
is
not
in
excess
of
the
recoverable
amount
from
these
assets.
Mine
development
Mine
development
assets
include
all
mining
related
development
expenditure
that
is
not
included
under
land,
buildings
and
plant
and
equipment.
These
capitalised
costs
are
amortised
over
the
life
of
the
mine
on
a
unit
of
production
basis
following
the
commencement
of
commercial
production.
A
regular
review
is
undertaken
of
each
area
of
interest
to
determine
the
appropriateness
of
continuing
to
carry
forward
mine
development
costs
in
relation
to
that
area
of
interest.
Mine
development
is
written
down
immediately
to
its
recoverable
amount
if
the
carrying
value
is
greater
than
its
estimated
recoverable
amount
(on
a
CGU
basis).
Depreciation
The
depreciable
amount
of
all
fixed
assets
excluding
freehold
land,
is
depreciated
on
a
straight-‐line
basis
over
their
useful
lives
to
the
Group
commencing
from
the
time
the
asset
is
held
ready
for
use.
Leased
assets
are
depreciated
over
the
asset’s
useful
life
or
over
the
shorter
of
the
assets
useful
life
and
the
lease
term
if
there
is
no
reasonable
certainty
that
the
Group
will
obtain
ownership
at
the
end
of
the
lease
term.
The
depreciation
rates
used
for
each
class
of
depreciable
assets
are:
Class
of
Fixed
Asset
Plant
and
equipment
Leased
plant
and
equipment
Mine
development
Depreciation
Rate
20%
-‐
50%
12.5%
units
of
production
The
asset’s
residual
values
and
useful
lives
are
reviewed,
and
adjusted
if
appropriate,
at
each
balance
date.
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
included
in
profit
or
loss.
37
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
1.
STATEMENT
OF
SIGNIFICANT
ACCOUNTING
POLICIES
(Continued)
h)
Exploration
and
evaluation
expenditure
Exploration,
evaluation
and
development
expenditure
incurred
is
accumulated
in
respect
of
each
separately
identifiable
area
of
interest.
These
costs
are
only
carried
forward
where
the
right
of
tenure
for
the
area
of
interest
is
current
and
to
the
extent
that
they
are
expected
to
be
recouped
through
the
successful
development
and
commercial
exploitation
of
the
area,
or
alternatively
sale
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.
Exploration
and
evaluation
expenditure
assets
acquired
in
a
business
combination
are
recognised
at
their
fair
value
at
the
acquisition
date.
Once
the
technical
feasibility
and
commercial
viability
of
the
extraction
of
mineral
resources
in
an
area
of
interest
are
demonstrable,
the
exploration
and
evaluation
assets
attributable
to
that
area
of
interest
are
first
tested
for
impairment
and
then
reclassified
to
mining
development.
Accumulated
costs
in
relation
to
an
abandoned
area
are
written
off
in
full
against
the
result
in
the
year
in
which
the
decision
to
abandon
the
area
is
made.
A
regular
review
is
undertaken
of
each
area
of
interest
to
determine
the
appropriateness
of
continuing
to
carry
forward
costs
in
relation
to
that
area
of
interest.
i)
Leases
Leases
of
property,
plant
and
equipment
where
substantially
all
the
risks
and
benefits
incidental
to
the
ownership
of
the
asset,
but
not
the
legal
ownership
that
is
transferred
to
entities
in
the
Group,
are
classified
as
finance
leases.
Finance
leases
are
capitalised
at
the
lease
inception
date,
by
recording
an
asset
and
a
liability
at
the
lower
of
the
amounts
equal
to
the
fair
value
of
the
leased
property
or
the
present
value
of
the
minimum
lease
payments,
including
any
guaranteed
residual
values.
Lease
payments
are
allocated
between
the
reduction
of
the
lease
liability
and
the
lease
interest
expense
for
the
period.
Leased
assets
are
depreciated
on
a
straight-‐line
basis
over
the
shorter
of
their
estimated
useful
lives
or
the
lease
terms
if
there
is
no
reasonable
certainty
that
the
Group
will
obtain
ownership
at
the
end
of
the
lease
term.
Lease
payments
for
operating
leases,
where
substantially
all
the
risks
and
benefits
remain
with
the
lessor,
are
charged
as
expenses
on
a
straight-‐line
basis
over
the
period
of
the
lease.
Lease
incentives
under
operating
leases
are
recognised
as
a
liability
and
amortised
on
a
straight-‐line
basis
over
the
life
of
the
lease
term.
j)
Impairment
of
assets
Goodwill
and
intangible
assets
that
have
an
indefinite
useful
life
are
not
subject
to
amortisation
and
are
tested
annually
for
impairment
or
more
frequently
if
events
or
changes
in
circumstances
indicate
that
they
might
be
impaired.
Other
assets
are
tested
for
impairment
whenever
events
or
changes
in
circumstances
indicate
that
the
carrying
amount
may
not
be
recoverable.
An
impairment
loss
is
recognised
immediately
in
profit
or
loss
for
the
amount
by
which
the
asset’s
carrying
amount
exceeds
its
recoverable
amount.
The
recoverable
amount
is
the
higher
of
an
asset’s
fair
value
less
costs
to
sell
and
value
in
use.
For
the
purposes
of
assessing
impairment,
assets
are
grouped
at
the
lowest
levels
for
which
there
are
separately
identifiable
cash
inflows
which
are
largely
independent
of
the
cash
inflows
from
other
assets
or
groups
of
assets
(cash
generating
units,
“CGUs”).
For
the
purposes
of
goodwill
impairment
testing,
CGUs
to
which
goodwill
has
been
allocated
are
aggregated
so
that
the
level
at
which
impairment
is
tested
reflects
the
lowest
level
at
which
goodwill
is
monitored
for
internal
reporting
purposes.
The
goodwill
acquired
in
a
business
combination,
for
the
purpose
of
impairment
testing,
is
allocated
to
CGUs
that
are
expected
to
benefit
from
the
synergies
of
the
combination.
Non-‐financial
assets
other
than
goodwill
that
suffered
impairment
are
reviewed
for
possible
reversal
of
the
impairment
at
the
end
of
each
reporting
period.
38
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
1.
STATEMENT
OF
SIGNIFICANT
ACCOUNTING
POLICIES
(Continued)
k)
Investments
and
other
financial
assets
The
Group
classifies
its
financial
assets
in
the
following
categories:
financial
assets
at
fair
value
through
profit
or
loss,
loans
and
receivables,
held
to
maturity
investment
and
available-‐for-‐sale
financial
assets.
The
classification
depends
on
the
purpose
for
which
the
investments
were
acquired.
Management
determines
the
classification
of
its
investments
at
initial
recognition
and
in
the
case
of
assets
classified
as
held
to
maturity,
re-‐evaluates
this
designation
at
the
end
of
each
reporting
period.
i)
Financial
assets
at
fair
value
through
profit
or
loss
Financial
assets
at
fair
value
through
profit
or
loss
are
financial
assets
held
for
trading.
A
financial
asset
is
classified
in
this
category
if
acquired
principally
for
the
purpose
of
selling
in
the
short
term.
Assets
in
this
category
are
classified
as
current
assets
if
they
are
expected
to
be
settled
within
12
months,
otherwise
they
are
classified
as
non-‐current.
ii)
Loans
and
receivables
Loans
and
receivables
are
non-‐derivative
financial
assets
with
fixed
or
determinable
payments
that
are
not
quoted
in
an
active
market.
They
are
included
in
current
assets,
except
for
those
with
maturities
greater
than
12
months
after
the
reporting
period
which
are
classified
as
non-‐current
assets.
Loans
and
receivables
are
included
in
current
trade
and
other
receivables
and
non-‐current
trade
and
other
receivables
(refer
to
Note
9).
iii) Held-‐to-‐maturity
investments
Held
to
maturity
investments
are
non-‐derivative
financial
assets
with
fixed
or
determinable
payments
and
fixed
maturities
that
the
Group’s
management
has
the
positive
intention
and
ability
to
hold
to
maturity.
If
the
Group
were
to
sell
other
than
an
insignificant
amount
of
held
to
maturity
financial
assets,
the
whole
category
would
be
tainted
and
reclassified
as
available
for
sale.
Held
to
maturity
financial
assets
are
included
in
non-‐current
assets,
except
for
those
with
maturities
less
than
12
months
from
the
end
of
the
reporting
period,
which
are
classified
as
current
assets.
iv) Available-‐for-‐sale
financial
assets
Available-‐for-‐sale
financial
assets,
comprising
principally
listed
marketable
equity
securities,
are
non-‐derivatives
that
are
either
designated
in
this
category
or
not
classified
in
any
of
the
other
categories.
They
are
included
in
non-‐current
assets
unless
management
intends
to
dispose
of
the
investment
within
12
months
of
the
end
of
the
reporting
period.
Investments
are
designated
as
available-‐for-‐sale
if
they
do
not
have
fixed
maturities
and
fixed
or
determinable
payments
and
management
intends
to
hold
them
for
the
medium
to
long
term.
v)
Recognition
and
de-‐recognition
Purchases
and
sales
of
financial
assets
are
recognised
on
trade
date,
the
date
on
which
the
Group
commits
to
purchase
or
sell
the
asset.
Financial
assets
are
initially
recognised
at
fair
value
plus
transaction
costs
except
where
the
financial
asset
is
classified
as
fair
value
through
profit
or
loss
in
which
case
transaction
costs
are
expensed
in
profit
or
loss.
Financial
assets
are
derecognised
when
the
rights
to
receive
cash
flows
from
the
financial
assets
have
expired
or
have
been
transferred
and
the
Group
has
transferred
substantially
all
the
risks
and
rewards
of
ownership.
When
securities
classified
as
available-‐for-‐sale
are
sold,
the
accumulated
fair
value
adjustments
recognised
in
other
comprehensive
income
and
reclassified
to
profit
or
loss
as
gains
and
losses
from
investment
securities.
vi)
Subsequent
measurement
Loans
and
receivables
are
carried
at
amortised
cost
using
the
effective
interest
method.
Available-‐for-‐sale
financial
assets,
financial
assets
at
fair
value
through
profit
or
loss
and
held
to
maturity
investments
are
subsequently
carried
at
fair
value.
Gains
or
losses
arising
from
changes
in
the
fair
value
of
the
‘financial
assets
at
fair
value
through
profit
or
loss’
category
are
presented
in
profit
or
loss
within
other
income
or
other
expenses
in
the
period
in
which
they
arise.
Dividend
income
from
financial
assets
at
fair
value
through
profit
or
loss
is
recognised
in
profit
or
loss
as
part
of
revenue
from
continuing
operations
when
the
Group’s
right
to
receive
payments
is
established.
39
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
1.
STATEMENT
OF
SIGNIFICANT
ACCOUNTING
POLICIES
(Continued)
Investment
in
shares
in
unlisted
companies,
which
do
not
have
a
quoted
market
price
and
whose
fair
value
cannot
be
reliably
measured,
are
classified
as
available-‐for-‐sale
and
are
measured
at
cost.
Gains
or
losses
are
recognised
in
profit
or
loss
when
the
investments
are
derecognised
or
impaired.
vii)
Impairment
The
Group
assess
at
the
end
of
each
reporting
period
whether
there
is
objective
evidence
that
a
financial
asset
or
group
of
financial
assets
is
impaired.
A
financial
asset
or
a
group
of
financial
assets
is
impaired
and
impairment
losses
are
incurred
only
if
there
is
objective
evidence
of
impairment
as
a
result
of
one
or
more
events
that
occurred
after
the
initial
recognition
of
the
asset
(a
‘loss
event’)
and
that
loss
event
(or
events)
has
an
impact
on
the
estimated
future
cash
flows
of
the
financial
asset
or
group
of
financial
assets
that
can
be
reliably
estimated.
In
the
case
of
equity
securities
classified
as
available-‐for-‐sale,
a
significant
or
prolonged
decline
in
the
fair
value
of
a
security
below
its
cost
is
considered
as
an
indicator
that
the
securities
are
impaired.
If
any
such
evidence
exists
for
available-‐for-‐sale
financial
assets,
the
cumulative
loss,
measured
as
the
difference
between
the
acquisition
cost
and
the
current
fair
value,
less
any
impairment
loss
on
that
financial
asset
previously
recognised
in
profit
or
loss,
is
reclassified
from
equity
and
recognised
in
profit
or
loss.
Impairment
losses
recognised
in
profit
or
loss
on
equity
instruments
classified
as
available-‐for-‐sale
are
not
reversed
through
profit
or
loss.
If
there
is
evidence
of
impairment
for
any
of
the
Group’s
financial
assets
carried
at
amortised
cost,
the
loss
is
measured
as
the
difference
between
the
asset’s
carrying
amount
and
the
present
value
of
estimated
future
cash
flows,
excluding
future
credit
losses
that
have
not
been
incurred.
The
cash
flows
are
discounted
at
the
financial
asset’s
original
effective
interest
rate.
The
loss
is
recognised
in
profit
or
loss.
l)
Borrowing
costs
Borrowing
costs
directly
attributable
to
the
acquisition,
construction
or
production
of
assets
that
necessarily
take
a
substantial
period
of
time
to
prepare
for
their
intended
use
or
sale,
are
added
to
the
cost
of
those
assets,
until
such
time
as
the
assets
are
substantially
ready
for
their
intended
use
or
sale.
All
other
borrowing
costs
are
recognised
as
an
expense
in
the
period
in
which
they
are
incurred.
m) Employee
benefits
i) Wages
and
salaries,
annual
leave
and
sick
leave
Liabilities
for
employee
benefits
for
wages,
salaries,
annual
leave
and
accumulating
sick
leave
that
are
expected
to
be
settled
within
12
months
of
the
reporting
date
represent
present
obligations
resulting
from
employees’
services
provided
to
the
reporting
date
and
are
calculated
at
undiscounted
amounts
based
on
wage
and
salary
rates
that
the
Group
expects
to
pay
as
at
reporting
date
including
related
on
costs,
such
as
superannuation,
workers
compensation,
insurance
and
payroll
tax
and
are
included
in
trade
and
other
payables.
Non-‐
accumulating,
non-‐monetary
benefits
such
as
housing
and
cars
are
expensed
by
the
Group
as
the
benefits
are
used
by
the
employee.
Employee
benefits
payable
later
than
12
months
have
been
measured
at
the
present
value
of
the
estimated
future
cash
outflows
to
be
made
for
those
benefits.
In
determining
the
liability,
consideration
is
given
to
employee
salary
and
wage
increases
and
the
probability
that
the
employee
may
satisfy
any
vesting
requirements.
Those
cash
flows
are
discounted
using
market
yields
with
terms
to
maturity
that
match
the
expected
timing
of
cash
flows
attributable
to
employee
benefits.
ii)
Long
service
leave
The
Group’s
net
obligation
in
respect
of
long
term
service
benefits
is
the
amount
of
future
benefit
that
employees
have
earned
in
return
for
their
service
to
the
reporting
date.
The
obligation
is
calculated
using
expected
future
increases
in
wages
and
salary
rates
including
related
on
costs
and
expected
settlement
dates,
and
is
discounted
using
an
appropriate
discount
rate.
The
current
liability
for
long
service
leave
represents
all
unconditional
obligations
where
employees
have
fulfilled
the
required
criteria
and
also
those
where
employees
are
entitled
to
a
pro
rata
payment
in
certain
circumstances
and
is
included
in
the
current
provisions.
The
non-‐current
provision
for
long
service
leave
includes
the
remaining
long
service
leave
obligations.
40
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
1.
STATEMENT
OF
SIGNIFICANT
ACCOUNTING
POLICIES
(Continued)
iii)
Superannuation
Contributions
made
by
the
Group
to
defined
contribution
superannuation
funds
are
recognised
as
an
expense
in
the
period
in
which
they
are
incurred.
iv)
Equity-‐settled
compensation
The
Group
operates
an
employee
share
ownership
plan.
Share-‐based
payments
to
employees
are
measured
at
the
fair
value
of
the
instruments
issued
and
amortised
over
the
vesting
periods.
Share-‐based
payments
to
non-‐
employees
are
measured
at
the
fair
value
of
goods
or
services
received
or
the
fair
value
of
the
equity
instruments
issued,
if
it
is
determined
the
fair
value
of
the
goods
or
services
cannot
be
reliably
measured,
and
are
recorded
at
the
date
the
goods
or
services
are
received.
The
corresponding
amount
is
recorded
to
the
option
reserve.
The
fair
value
of
options
is
determined
using
the
Black-‐Scholes
pricing
model.
The
number
of
shares
and
options
expected
to
vest
is
reviewed
and
adjusted
at
the
end
of
each
reporting
period
such
that
the
amount
recognised
for
services
received
as
consideration
for
the
equity
instruments
granted
is
based
on
the
number
of
equity
instruments
that
eventually
vest.
n)
Significant
accounting
estimates
and
judgements
The
Directors
evaluate
estimates
and
judgements
incorporated
into
the
financial
report
based
on
historical
knowledge
and
best
available
current
information.
Estimates
assume
a
reasonable
expectation
of
future
events
and
are
based
on
current
trends
and
economic
data,
obtained
both
externally
and
within
the
Group.
The
resulting
accounting
estimates,
will,
by
definition,
seldom
equal
the
related
actual
results.
Management
has
identified
the
following
significant
accounting
policies
for
which
significant
judgements,
estimates
and
assumptions
are
made.
i)
Significant
accounting
estimates
and
assumptions
Critical
accounting
estimates
and
judgements
Following
is
a
summary
of
the
key
assumptions
concerning
the
future,
and
other
key
sources
of
estimation
and
accounting
judgements
at
reporting
date
that
have
not
be
disclosed
elsewhere
in
these
financial
statements.
a.
Determination
of
coal
resources
and
reserves
The
Company
estimates
its
coal
ore
resources
and
reserves
based
on
information
compiled
by
Competent
Persons
defined
in
the
Australasian
Code
for
Reporting
Exploration
Results,
Mineral
Resources
and
Ore
Reserves
(December
2012),
which
is
prepared
by
the
Joint
Ore
Reserves
Committee
(“JORC”)
of
the
Australasian
Institute
of
Mining
and
Metallurgy,
Australian
Institute
of
Geoscientists
and
Minerals
Council
of
Australia,
known
as
the
JORC
Code.
Reserves
determined
in
this
way
are
used
in
the
calculation
of
depreciation,
amortisation
and
impairment
charges,
the
assessment
of
mine
lives
and
for
forecasting
the
timing
of
the
payment
of
rehabilitation
costs.
The
amount
of
reserves
that
may
actually
be
mined
in
the
future
and
the
Company’s
estimate
of
reserves
from
time
to
time
in
the
future
may
vary
from
current
reserve
estimates.
b.
Exploration
and
evaluation
expenditure
The
application
of
the
Group’s
accounting
policy
for
exploration
and
evaluation
expenditure
requires
judgement
in
determining
whether
it
is
likely
that
future
economic
benefits
are
likely,
which
may
be
based
on
assumptions
about
future
events
or
circumstances.
Estimates
and
assumptions
may
change
if
new
information
becomes
available.
If
after
expenditure
is
capitalised
information
becomes
available
suggesting
that
the
recovery
of
expenditure
is
unlikely,
the
amount
capitalised
is
written
off
in
the
Consolidated
Statement
of
Profit
or
Loss
in
the
period
when
the
new
information
becomes
available.
c.
Impairment
The
Group
assess
impairment
by
evaluation
of
conditions
and
events
specific
to
the
Company
that
may
be
indicative
of
impairment
triggers.
Goodwill
is
assessed
for
impairment
at
each
reporting
period.
Recoverable
amounts
of
relevant
assets
are
reassessed
using
the
higher
of
fair
value
less
costs
to
sell
and
value
in
use
calculations
which
incorporate
various
key
assumptions
(refer
to
Note
16
and
18).
41
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
1.
STATEMENT
OF
SIGNIFICANT
ACCOUNTING
POLICIES
(Continued)
d.
Rehabilitation
The
calculation
of
the
provisions
for
rehabilitation
and
the
related
mine
development
assets
rely
on
estimates
of
the
cost
to
rehabilitate
an
area
which
is
currently
disturbed
based
on
legislative
requirements
and
future
costs.
The
costs
are
estimated
on
the
basis
of
a
mine
closure
plan.
Cost
estimates
take
into
account
expectations
about
future
events
including
the
mine
lives,
the
time
of
rehabilitation
expenditure,
regulations,
inflation
and
discount
rates.
When
these
expectations
change
in
the
future,
the
provision
and
where
applicable,
the
mine
development
assets
are
recalculated
in
the
period
in
which
they
change.
e.
Derivatives
The
fair
value
of
financial
instruments
must
be
estimated
for
recognition
and
measurement
purposes.
The
fair
value
of
financial
instruments
traded
in
active
markets
such
as
available-‐for-‐sale
securities
is
based
on
quoted
market
prices
at
the
reporting
date.
The
quoted
market
price
used
for
financial
assets
held
by
the
Group
is
the
current
bid
price.
The
fair
value
of
financial
instruments
that
are
not
traded
in
an
active
market
are
determined
using
valuation
techniques
that
use
observable
market
data
at
the
reporting
date
where
it
is
available.
f.
Income
taxes
The
Group
is
subject
to
income
taxes
in
Australia
and
jurisdictions
where
it
has
foreign
operations.
Significant
judgement
is
required
in
determining
the
provision
for
income
taxes.
There
are
transactions
and
calculations
undertaken
during
the
ordinary
course
of
business
for
which
the
ultimate
tax
determination
is
uncertain.
The
Group
estimates
its
tax
liabilities
based
on
the
Group’s
understanding
of
the
tax
law.
Where
the
final
tax
outcome
of
these
matters
is
different
from
the
amounts
that
were
initially
recorded,
such
differences
will
impact
the
current
and
deferred
income
tax
assets
and
liabilities
in
the
period
in
which
such
determination
is
made.
g.
Share-‐based
payment
transactions
From
time
to
time
the
Company
has
issued
options
to
directors
and
employees.
The
Company
measures
fair
value
of
share-‐based
payments
using
the
Black-‐Scholes
Pricing
Model,
using
the
assumptions
detailed
in
Note
22.
This
formula
takes
into
account
the
terms
and
conditions
under
which
the
instruments
were
granted.
o)
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
resources
will
be
required
to
settle
the
obligation
and
the
amount
has
been
reliably
estimated.
i)
Rehabilitation
costs
Provision
is
made
for
the
Group’s
estimated
liability
arising
under
specific
legislative
requirements
and
the
conditions
of
its
exploration
permits
and
mining
leases
for
future
costs
expected
to
be
incurred
in
restoring
mining
areas
of
interest.
The
estimated
liability
is
based
on
the
restoration
work
required
using
existing
technology
as
a
result
of
activities
to
date.
The
liability
includes
the
cost
of
reclamation
of
the
site,
including
infrastructure
removal
and
land
fill
costs.
An
asset
is
created
as
part
of
the
mine
development
asset,
to
the
extent
that
the
development
relates
to
future
production
activities,
which
is
offset
by
a
current
and
non-‐current
provision
for
rehabilitation.
p)
Cash
and
cash
equivalents
Cash
and
cash
equivalents
include
cash
on
hand,
deposits
held
at
call
with
banks,
other
short-‐term
highly
liquid
investments
that
are
readily
convertible
to
known
amounts
of
cash
and
which
are
subject
to
an
insignificant
risk
of
changes
in
value,
net
of
bank
overdrafts.
42
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
1.
STATEMENT
OF
SIGNIFICANT
ACCOUNTING
POLICIES
(Continued)
q)
Revenue
Revenue
is
measured
at
the
fair
value
of
the
consideration
received
or
receivable.
Amounts
disclosed
as
revenue
are
net
of
returns,
trade
allowances,
rebates
and
amounts
collected
on
behalf
of
third
parties.
The
Group
recognises
revenue
when
the
amount
of
revenue
can
be
reliably
measured
and
it
is
probable
that
future
economic
benefits
will
flow
to
the
entity.
Revenue
is
recognised
in
the
profit
or
loss
as
follows:
i)
Sale
of
goods
Revenue
from
the
sale
of
bulk
commodities
is
recognised
when
the
significant
risks
and
rewards
of
ownership
of
the
goods
have
passed
to
the
buyer
and
can
be
measured
reliably.
Risks
and
rewards
are
considered
passed
to
the
buyer
at
the
time
of
delivery,
usually
on
a
Free
On
Board
(“FOB”)
basis.
ii)
Dividends
Dividends
are
recognised
as
revenue
when
the
right
to
receive
payment
is
established.
iii)
Interest
Interest
income
from
a
financial
asset
is
accrued
on
a
time
basis,
by
reference
to
the
principal
outstanding
and
at
the
effective
interest
rate
applicable,
which
is
the
rate
that
exactly
discounts
the
estimated
future
cash
receipts
through
the
expected
life
of
the
financial
asset
to
that
asset’s
net
carrying
amount.
iv)
Services
Revenue
from
the
rendering
of
a
service
is
recognised
upon
the
delivery
of
the
service
to
the
customer.
r)
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
relevant
taxation
authorities.
In
these
circumstances
the
GST
is
recognised
as
part
of
the
cost
of
acquisition
of
the
asset
or
as
part
of
an
item
of
the
expense.
Receivables
and
payables
in
the
balance
sheet
are
shown
inclusive
of
GST.
Cash
flows
are
presented
in
the
statement
of
cash
flows
on
a
gross
basis,
except
for
the
GST
component
of
investing
and
financing
activities,
which
are
disclosed
as
operating
cash
flows.
s)
Foreign
operations
The
financial
performance
and
position
of
foreign
operations
whose
functional
currency
is
different
from
the
Group’s
presentation
currency
are
translated
as
follows:
•
•
assets
and
liabilities
are
translated
at
exchange
rates
prevailing
at
balance
sheet
date;
and
income
and
expenses
are
translated
at
monthly
average
exchange
rates
for
the
period.
Exchange
differences
arising
on
translation
of
foreign
operations
are
transferred
directly
to
the
Group’s
foreign
currency
translation
reserve
as
a
separate
component
of
equity.
These
differences
are
recognised
in
the
income
statement
upon
disposal
of
the
foreign
operation.
t)
Foreign
currency
transactions
and
balances
The
functional
currency
of
each
of
the
Group’s
entities
is
measured
using
the
currency
of
the
primary
economic
environment
in
which
the
entity
operates.
The
consolidated
financial
statements
are
presented
in
Australian
dollars
which
is
the
parent
entity’s
functional
and
presentation
currency.
Foreign
currency
transactions
are
translated
into
functional
currency
using
the
exchange
rates
prevailing
at
the
date
of
the
transaction.
Foreign
currency
monetary
items
are
translated
at
the
period
end
exchange
rate.
Non-‐monetary
items
measured
at
historical
cost
continue
to
be
carried
at
the
exchange
rate
at
the
date
when
fair
values
were
determined.
43
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
1.
STATEMENT
OF
SIGNIFICANT
ACCOUNTING
POLICIES
(Continued)
Exchange
differences
arising
on
the
translation
of
monetary
items
are
recognised
in
the
income
statement,
except
where
deferred
in
equity
as
a
qualifying
cash
flow
or
net
investment
hedge.
Exchange
differences
arising
on
the
translation
of
non-‐monetary
items
are
recognised
directly
in
equity
to
the
extent
that
the
gain
or
loss
is
directly
recognised
in
equity,
otherwise
the
exchange
difference
is
recognised
in
the
income
statement.
u) Goodwill
and
intangibles
Goodwill
represents
the
excess
of
the
cost
of
an
acquisition
over
the
fair
value
of
the
Group’s
share
of
the
net
identifiable
assets
of
the
acquired
subsidiary
or
associate
at
the
date
of
acquisition.
Goodwill
on
acquisitions
of
subsidiaries
is
included
in
intangible
assets.
Goodwill
on
acquisitions
of
associates
is
included
in
investments
in
associates.
Goodwill
is
not
amortised,
it
is
tested
for
impairment
at
each
reporting
date
or
more
frequently
if
events
or
changes
in
circumstances
indicate
that
it
might
be
impaired,
and
is
carried
at
cost
less
accumulated
impairment
losses.
Gains
and
losses
on
the
disposal
of
an
entity
include
the
carrying
amount
of
goodwill
relating
to
the
entity
sold.
Goodwill
is
allocated
to
cash
generating
units
(“CGUs”)
for
the
purpose
of
impairment
testing.
The
allocation
is
made
to
those
CGUs
or
groups
of
CGUs
that
are
expected
to
benefit
from
the
business
combination
in
which
the
goodwill
arose.
v)
Financial
liabilities
and
equity
Non-‐derivative
financial
liabilities
(including
trade
and
other
payables
and
interest-‐bearing
liabilities
excluding
financial
guarantees)
are
initially
recognised
at
fair
value,
net
of
transaction
costs
incurred
and
subsequently
measured
at
amortised
cost
using
the
effective
interest
rate
method.
Financial
liabilities
are
derecognised
when
the
obligation
specified
in
the
relevant
contract
is
discharged,
cancelled
or
expires.
The
difference
between
the
carrying
amount
of
the
financial
liability
derecognised
and
the
consideration
paid
and
payable
is
recognised
in
profit
or
loss.
All
non-‐derivative
financial
liabilities
are
classified
as
current
liabilities
unless
there
is
an
unconditional
right
to
defer
settlement
of
the
liability
for
at
least
12
months
after
the
reporting
date.
An
equity
instrument
is
any
contract
that
evidences
a
residual
interest
in
the
assets
of
the
Group
after
deducting
all
of
its
liabilities.
Costs
directly
attributable
to
the
issue
of
new
shares
or
options
are
shown
as
a
deduction
from
the
equity
proceeds,
net
of
any
income
tax
benefit.
Costs
directly
attributable
to
the
issue
of
new
shares
or
options
associated
with
the
acquisition
of
a
business
are
included
as
part
of
the
purchase
consideration.
w) Comparative
figures
When
required
by
Accounting
Standards,
comparative
figures
have
been
adjusted
to
conform
to
changes
in
presentation
for
the
current
financial
year.
x)
Inventories
Consumable
stores
Inventories
of
consumable
supplies
and
spare
parts
expected
to
be
used
in
the
supply
of
services
are
valued
at
cost.
Bulk
commodities
Bulk
commodity
stockpiles
are
physically
surveyed
or
estimated
and
valued
at
the
lower
of
cost
or
net
realisable
value.
Net
realisable
value
is
the
estimated
selling
price
in
the
ordinary
course
of
business,
less
estimated
costs
of
completion
and
costs
of
selling
final
product. Cost
is
determined
by
the
weighted
average
method
and
comprises
direct
purchase
costs
and
an
appropriate
portion
of
fixed
and
variable
overhead
costs,
including
depreciation
and
amortisation,
incurred
in
converting
materials
into
finished
goods.
y)
Fair
value
measurement
When
an
asset
or
liability,
financial
or
non-‐financial,
is
measured
at
fair
value
for
recognition
or
disclosure
purposes,
the
fair
value
is
based
on
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date;
and
assumes
that
the
transaction
will
take
place
either:
in
the
principal
market;
or
in
the
absence
of
a
principal
market,
in
the
most
advantageous
market.
44
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
1.
STATEMENT
OF
SIGNIFICANT
ACCOUNTING
POLICIES
(Continued)
Fair
value
is
measured
using
the
assumptions
that
market
participants
would
use
when
pricing
the
asset
or
liability,
assuming
they
act
in
their
economic
best
interest.
For
non-‐financial
assets,
the
fair
value
measurement
is
based
on
its
highest
and
best
use.
Valuation
techniques
that
are
appropriate
in
the
circumstances
and
for
which
sufficient
data
are
available
to
measure
fair
value,
are
used,
maximising
the
use
of
relevant
observable
inputs
and
minimising
the
use
of
unobservable
inputs.
Assets
and
liabilities
measured
at
fair
value
are
classified,
into
three
levels,
using
a
fair
value
hierarchy
that
reflects
the
significance
of
the
inputs
used
in
making
the
measurements.
Classifications
are
reviewed
each
reporting
date
and
transfers
between
levels
are
determined
based
on
a
reassessment
of
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement.
For
recurring
and
non-‐recurring
fair
value
measurements,
external
valuers
may
be
used
when
internal
expertise
is
either
not
available
or
when
the
valuation
is
deemed
to
be
significant.
External
valuers
are
selected
based
on
market
knowledge
and
reputation.
Where
there
is
a
significant
change
in
fair
value
of
an
asset
or
liability
from
one
period
to
another,
an
analysis
is
undertaken,
which
includes
a
verification
of
the
major
inputs
applied
in
the
latest
valuation
and
a
comparison,
where
applicable,
with
external
sources
of
data.
z)
Deferred
mining
cost
During
the
commercial
production
stage
of
open
pit
operations,
production
stripping
costs
comprises
the
accumulation
of
expenses
incurred
to
enable
access
to
the
ore
body
(coal
or
iron
ore),
and
includes
direct
removal
costs
and
machinery
and
plant
running
costs.
Production
stripping
costs
are
capitalised
as
part
of
an
asset
if
it
can
be
demonstrated
that
it
is
probable
that
future
economic
benefits
will
be
realised,
the
costs
can
be
reliably
measured
and
the
entity
can
identify
the
component
of
the
ore
body
for
which
access
has
been
improved.
The
asset
is
called
“stripping
activity
asset”.
The
stripping
asset
is
amortised
on
a
systematic
basis,
over
the
expected
useful
life
of
the
identified
component
of
the
ore
body
that
becomes
more
accessible
as
a
result
of
the
stripping
activity.
The
units
of
production
method
shall
be
applied.
Production
stripping
costs
that
do
not
satisfy
the
asset
recognition
criteria
are
expensed.
45
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
2.
FINANCIAL
RISK
MANAGEMENT
The
Group’s
principal
financial
instruments
comprise
receivables,
payables,
loans,
finance
leases,
cash
and
short
term
deposits.
These
activities
expose
the
Group
to
a
variety
of
financial
risks:
market
risk
(which
includes
currency
risk,
interest
rate
risk
and
price
risk),
credit
risk
and
liquidity
risk.
The
Group
manages
these
risks
in
accordance
with
the
Group’s
financial
risk
management
policy.
The
Group
uses
different
methods
and
assumptions
to
measure
and
manage
different
types
of
risks
to
which
it
is
exposed
at
each
balance
date.
The
Board
reviews
and
approves
policies
for
managing
each
of
the
Group’s
financial
risk
areas.
The
Group
holds
the
following
financial
instruments:
FINANCIAL
ASSETS
Cash
and
cash
equivalents
Trade
and
other
receivables
Receivables
non-‐current
Held
to
maturity
investments
Available-‐for-‐sale
investments
FINANCIAL
LIABILITIES
Trade
and
other
payables
Borrowings
a) Market
risk
2016
$’000
22,132
1,126
2,482
50
1,333
27,123
2,072
18,437
20,509
2015
$’000
2,092
2,758
2,377
1,280
573
9,080
1,872
18,004
19,876
Market
risk
is
the
risk
that
changes
in
market
prices,
such
as
foreign
exchange
rates,
securities
prices,
and
coal
prices,
will
affect
the
Group’s
income
or
the
value
of
its
holdings
of
financial
investments.
i)
Foreign
currency
risk
The
Group
operates
internationally
and
is
exposed
to
foreign
exchange
risk
arising
from
various
currency
exposures,
primarily
in
respect
to
the
US
dollar.
Export
coal
sales
are
denominated
in
US
dollars
and
a
strengthening
of
the
Australian
dollar
against
the
US
dollar
has
an
adverse
impact
on
earnings
and
cash
flow
settlement.
Liabilities
for
some
loans
are
denominated
in
currencies
other
than
the
Australian
dollar
and
a
weakening
of
the
Australian
dollar
against
other
currencies
has
an
adverse
impact
on
earnings
and
cash
flow
settlement.
The
Group’s
overseas
subsidiaries
have
a
US
dollar
functional
currency.
This
exposes
the
Group
to
foreign
exchange
fluctuations
upon
conversion
to
AUD.
At
30
June
2016,
the
Group
held
funds
in
foreign
currency
amounting
to
US$205,000
(2015:
US$243,000).
The
Group
does
not
enter
into
any
hedging
arrangements.
Foreign
currency
risk
sensitivity
analysis
At
30
June
2016,
the
effect
on
profit
and
equity
as
a
result
of
changes
in
the
value
of
the
Australian
Dollar
to
the
US
Dollar
that
management
considers
to
be
reasonably
possible,
with
all
other
variables
remaining
constant
is
as
follows:
Change
in
profit
—
—
Improvement
in
AUD
to
USD
by
11%
Decline
in
AUD
to
USD
by
11%
Change
in
equity
—
—
Improvement
in
AUD
to
USD
by
11%
Decline
in
AUD
to
USD
by
11%
46
2016
$’000
(2,761)
2,761
(2,761)
2,761
2015
$’000
(2,691)
2,691
(2,691)
2,691
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
2.
FINANCIAL
RISK
MANAGEMENT
(Continued)
ii)
Price
risk
The
Group
is
exposed
to
coal
price
risk
and
equity
securities
price
risk.
The
Group
currently
does
not
have
any
hedges
in
place
against
the
movements
in
the
spot
price
of
coal.
The
Group's
equity
investments
are
publicly
traded
on
the
United
States
of
America
OTCBB
and
are
not
quoted
on
any
market
Index.
The
table
below
summarises
the
impact
of
increases/decreases
in
the
value
on
the
Group's
equity
investments
as
at
balance
date.
The
analysis
is
based
on
the
assumption
that
the
equity
pricing
had
increased/decreased
by
10%
with
all
other
variables
held
constant
and
all
the
Group's
equity
instruments
moved
according
to
the
historical
correlation
with
the
index.
Change
in
profit
—
—
Increase
in
equity
value
by
10%
Decrease
in
equity
value
by
10%
Change
in
equity
—
—
Increase
in
equity
value
by
10%
Decrease
in
equity
value
by
10%
2016
$’000
-‐
-‐
133
(133)
2015
$’000
-‐
-‐
(57)
57
iii)
Interest
rate
risk
At
balance
date
the
Group’s
debt
was
fixed
rate.
For
further
details
on
interest
rate
risk
refer
to
Note
2d.
Interest
rate
sensitivity
analysis
At
30
June
2016,
the
effect
on
profit
and
equity
as
a
result
of
changes
in
the
interest
rate
that
management
considers
to
be
reasonably
possible,
with
all
other
variables
remaining
constant
would
be
as
follows:
Change
in
profit
—
—
Increase
in
interest
rate
by
1%
Decrease
in
interest
rate
by
1%
Change
in
equity
—
—
Increase
in
interest
rate
by
1%
Decrease
in
interest
rate
by
1%
2016
$’000
200
(200)
(200)
200
2015
$’000
-‐
-‐
-‐
-‐
Term
deposits
have
been
treated
as
a
floating
rate
due
to
the
short
term
nature
of
the
deposits.
b)
Credit
risk
Credit
risk
refers
to
the
risk
that
a
third
party
will
default
on
its
contractual
obligations
resulting
in
financial
loss
to
the
Consolidated
Group.
The
Consolidated
Group
has
adopted
the
policy
of
only
dealing
with
credit
worthy
counterparties
and
obtaining
sufficient
collateral
or
other
security
where
appropriate,
as
a
means
of
mitigating
the
risk
of
financial
loss
from
defaults.
The
carrying
amount
of
financial
assets
recorded
in
the
financial
statements,
net
of
any
provisions
for
losses,
represents
the
Company's
maximum
exposure
to
credit
risk.
c)
Liquidity
risk
Liquidity
risk
includes
the
risk
that
the
Group
will
not
be
able
to
meet
its
financial
obligations
as
they
fall
due.
The
Group
will
be
impacted
in
the
following
ways:
i) Will
not
have
sufficient
funds
to
settle
transactions
on
the
due
date;
ii) Will
be
forced
to
sell
financial
assets
at
a
value
which
is
less
than
what
they
are
worth;
or
iii) May
be
unable
to
settle
or
recover
a
financial
asset
at
all.
The
Group
manages
liquidity
risk
by
monitoring
forecast
cash
flows.
47
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
2.
FINANCIAL
RISK
MANAGEMENT
(Continued)
d)
Financial
instrument
composition
and
maturity
analysis
The
tables
below
reflect
the
undiscounted
contractual
settlement
terms
for
financial
instruments
of
a
fixed
period
of
maturity,
as
well
as
management’s
expectations
for
the
settlement
period
for
all
other
financial
instruments.
As
such
the
amounts
may
not
reconcile
to
the
balance
sheet.
Weighted
average
effective
interest
rate
2015
2016
%
%
Floating
interest
rate
Within
1
year
Fixed
interest
rate
maturing
Over
5
years
1
to
5
years
Non-‐interest
bearing
Total
2016
$’000
2015
$’000
2016
$’000
2015
$’000
2016
$’000
2015
$’000
2016
$’000
2015
$’000
2016
$’000
2015
$’000
2016
$’000
2015
$’000
Consolidated
Group
Financial
assets:
Cash
&
cash
equivalents
Trade
and
other
receivables
Available
for
sale
investments
Receivables
non-‐
current
1.75
1.20
22,132
2,092
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
50
1,280
Term
deposit
2.65
2.96
Total
financial
Assets
Financial
liabilities:
Trade
&
sundry
payables
Directors
and
Management
Loans
Lease
liabilities
Borrowings
UJV
funding
facility
Total
financial
liabilities
22,132
2,092
50
1,280
-‐
-‐
-‐
-‐
-‐
-‐
8.00
8.09
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
389
-‐
-‐
389
Trade
and
sundry
payables
are
expected
to
be
paid
as
follows:
Less
than
6
months
More
than
6
months
48
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
8
-‐
-‐
8
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
22,132
2,092
1,126
2,758
1,126
2,758
1,333
573
1,333
573
2,482
2,377
2,482
2,377
-‐
-‐
50
1,280
4,941
5,708
27,123
9,080
-‐
2,072
1,872
3,036
2,584
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
389
8
-‐
18,437
17,607
17,473
16,895
-‐
-‐
-‐
-‐
-‐
20,509
19,479
20,509
19,876
2016
$’000
2,072
-‐
2,072
2015
$’000
1,872
-‐
1,872
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
2.
FINANCIAL
RISK
MANAGEMENT
(Continued)
e)
Fair
value
measurements
i)
Fair
value
hierarchy
The
Group
uses
various
methods
in
estimating
the
fair
value
of
financial
instruments.
AASB
13
Fair
Value
Measurement
requires
disclosure
of
fair
value
measurements
by
level
in
accordance
with
the
following
fair
value
measurement
hierarchy:
a) Quoted
prices
(unadjusted)
in
active
markets
for
identical
assets
or
liabilities
(level
1)
b)
Inputs
other
than
quoted
prices
included
within
level
1
that
are
observable
for
the
asset
or
liability,
either
directly
(as
prices)
or
indirectly
(derived
from
prices)
(level
2);
and
Inputs
for
the
asset
or
liability
that
are
not
based
on
observable
market
data
(unobservable
inputs)
(level
3)
c)
The
following
table
presents
the
Group’s
financial
assets
and
financial
liabilities
measured
and
recognised
at
fair
value
at
30
June
2016
and
30
June
2015.
2016
Assets
Listed
investments
Total
Assets
2015
Assets
Listed
investments
Total
Assets
ii)
Valuation
techniques
Level
1
$’000
Level
2
$’000
Level
3
$’000
Total
$’000
1,333
1,333
573
573
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
1,333
1,333
573
573
The
fair
value
of
financial
instruments
traded
in
active
markets
is
based
on
quoted
market
prices
at
the
end
of
the
reporting
period.
The
quoted
market
price
used
for
financial
assets
and
liabilities
held
by
the
Group
is
the
closing
price.
These
instruments
are
included
in
level
1.
Specific
valuation
techniques
used
to
value
financial
instruments
include:
•
•
The
use
of
quoted
market
prices
or
dealer
quotes
for
similar
instruments;
Other
techniques,
such
as
discounted
cash
flow
analysis,
are
used
to
determine
the
fair
value
for
the
remaining
financial
instruments.
49
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
3.
DISCONTINUED
OPERATIONS
a)
Description
On
24
December
2014,
a
controlled
entity
entered
an
agreement
to
sell
its
30%
share
in
the
Mt
Webber
Exploration
and
Operational
joint
ventures
to
its
partner
Atlas
Iron
Limited.
Shareholder
approval
was
granted
at
a
general
meeting
held
on
12
February
2015
and
settlement
occurred
on
17
February
2015.
Financial
information
relating
to
the
discontinued
operation
for
the
period
to
the
date
of
disposal
is
set
out
below.
b)
Financial
performance
and
cash
flow
information
of
discontinued
operations
The
financial
performance
and
cash
flow
information
presented
are
for
the
period
ending
June
2016.
Revenue
Expenses
Loss
before
income
tax
Loss
after
income
tax
of
discontinued
operation
Loss
on
sale
of
joint
ventures
before
income
tax
Loss
from
discontinued
operations
after
income
tax
Net
cash
(outflow)
from
financing
activities
Net
decrease
in
cash
generated
by
the
division
c)
Carrying
amounts
of
assets
and
liabilities
The
carrying
amounts
of
assets
and
liabilities
as
at
30th
June
were:
Inventory
Mine
development
Total
assets
Mining
restoration
&
rehabilitation
provision
Total
liabilities
Net
assets
d) Details
of
the
sale
of
the
joint
ventures
Consideration
Total
consideration
Carrying
value
of
net
assets
sold
Loss
on
sale
before
income
tax
Loss
on
sale
after
income
tax
expense
2016
$’000
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
2015
$’000
1,199
(11,879)
(10,680)
(10,680)
(2,113)
(12,793)
(500)
(500)
-‐
29,417
29,417
2,815
2,815
26,602
24,489
24,489
26,602
(2,113)
(2,113)
50
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
4.
SEGMENT
INFORMATION
The
Group
reports
the
following
operating
segments
to
the
chief
operating
decision
maker,
being
the
Board
of
Directors
of
Altura
Mining
Limited,
in
assessing
performance
and
determining
the
allocation
of
resources.
Unless
otherwise
stated,
all
amounts
reported
to
the
Board
are
determined
in
accordance
with
accounting
policies
that
are
consistent
to
those
adopted
in
the
annual
financial
statements
of
the
Group.
The
Coal
mining
segment
derives
its
revenue
from
coal
sold
to
customers.
As
the
Group's
investment
in
coal
is
equity
accounted,
no
revenue
from
this
activity
is
included
in
this
segment
note.
The
exploration
services
segment
provides
a
range
of
drilling
services
to
its
customers,
predominately
mining
and
exploration
companies.
The
mineral
exploration
segment
revenue
comprises
interest
earned
on
funds
raised
to
carry
out
the
exploration
activities.
An
internally
determined
service
rate
is
set
for
all
intersegment
transactions.
All
such
transactions
are
eliminated
on
consolidation
of
the
Group’s
financial
statements.
2016
Revenue
External
sales
Other
income
Other
segments
Total
segment
revenue
Unallocated
revenue
Total
consolidated
revenue
Coal
Mining
$’000
Exploration
services
$’000
Mineral
exploration
$’000
Eliminations
Total
$’000
$’000
-‐
-‐
-‐
-‐
1,350
112
308
1,770
-‐
23
-‐
23
-‐
-‐
(308)
(308)
1,350
135
-‐
1,485
-‐
1,485
Segment
result
(19,993)
(2,541)
(8,029)
Other
segments
Unallocated
expenses
net
of
unallocated
revenue
Profit
/
(loss)
before
income
tax
and
finance
costs
Finance
costs
Profit
/
(loss)
before
income
tax
Income
tax
expense
Net
profit
/
(loss)
for
the
year
Assets
and
liabilities
Segment
assets
Unallocated
assets
Total
assets
Segment
liabilities
Unallocated
liabilities
Total
liabilities
144
1,835
40,918
16,833
1,849
2,674
Other
segment
information
Capital
expenditure
Exploration
expenditure
Depreciation
and
amortisation
-‐
-‐
-‐
-‐
-‐
511
12
3,100
43
-‐
(30,563)
-‐
-‐
(30,563)
(277)
(30,840)
(778)
(31,618)
42,897
-‐
42,897
21,356
-‐
21,356
12
3,100
554
-‐
-‐
-‐
-‐
-‐
51
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
4.
SEGMENT
INFORMATION
(Continued)
2015
Revenue
External
sales
Other
income
Other
segments
Total
segment
revenue
Unallocated
revenue
Total
consolidated
revenue
Coal
Mining
$’000
Exploration
services
$’000
Mineral
exploration
$’000
Eliminations
Total
$’000
$’000
-‐
-‐
-‐
-‐
4,745
6
1,368
6,119
-‐
28
-‐
28
-‐
-‐
(1,368)
(1,368)
Segment
result
(11,576)
(6,661)
1,555
Other
segments
Unallocated
expenses
net
of
unallocated
revenue
Profit
/
(loss)
before
income
tax
and
finance
costs
Finance
costs
Profit
/
(loss)
from
discontinued
operations
Profit
/
(loss)
before
income
tax
Income
tax
expense
Net
profit
/
(loss)
for
the
year
Assets
and
liabilities
Segment
assets
Unallocated
assets
Total
assets
Segment
liabilities
Unallocated
liabilities
Total
liabilities
Other
segment
information
Capital
expenditure
Exploration
expenditure
Depreciation
and
amortisation
19,451
-‐
4,450
-‐
21,977
-‐
16,056
-‐
2,051
-‐
2,546
-‐
-‐
-‐
-‐
45
-‐
752
-‐
834
95
-‐
-‐
-‐
-‐
-‐
-‐
-‐
52
4,745
34
-‐
4,779
-‐
4,779
(16,682)
-‐
-‐
(16,682)
(267)
(12,793)
(29,792)
(320)
(30,062)
45,968
505
46,473
20,653
-‐
20,653
45
834
847
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
4.
SEGMENT
INFORMATION
(Continued)
Geographical
segments
The
Group’s
geographical
segments
are
determined
based
on
the
location
of
the
Group’s
assets.
Australia
$’000
Indonesia
$’000
Other
$’000
Eliminations
$’000
Total
$’000
-‐
25
-‐
25
1,350
110
308
1,768
-‐
-‐
-‐
-‐
-‐
-‐
(308)
(308)
2016
Revenue
External
sales
Other
income
Other
segments
Total
segment
revenue
Unallocated
revenue
Total
revenue
Segment
assets
Unallocated
assets
Total
assets
Segment
liabilities
Unallocated
Liabilities
Total
liabilities
Capital
expenditure
Exploration
expenditure
Depreciation
and
amortisation
2015
Revenue
External
sales
Other
income
Other
segments
Total
segment
revenue
Unallocated
revenue
Total
revenue
Segment
assets
Unallocated
assets
Total
assets
Segment
liabilities
Unallocated
Liabilities
Total
liabilities
31,704
10,952
241
551
20,619
186
12
3,027
161
-‐
30
32
62
-‐
73
393
4,745
4
1,361
6,110
-‐
-‐
-‐
-‐
-‐
-‐
-‐
13,492
31,892
584
772
19,863
18
1,350
135
-‐
1,485
-‐
1,485
42,897
-‐
42,897
21,356
-‐
21,356
12
3,100
554
4,745
34
-‐
-‐
4,779
45,968
505
46,473
20,653
-‐
20,653
45
834
847
-‐
-‐
-‐
-‐
-‐
-‐
-‐
(1,393)
(1,393)
-‐
-‐
-‐
-‐
-‐
Capital
expenditure
Exploration
expenditure
Depreciation
and
amortisation
3
526
83
42
308
764
-‐
-‐
-‐
The
Group
has
a
number
of
customers
to
whom
it
provides
services.
The
Group
supplies
three
external
customers
in
the
services
segment
who
account
for
56%
(US$523,000),
12%
(US$109,000)
and
10%
(US$91,000)
of
external
revenue
(2015:
92%).
53
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
5.
PROFIT
/
(LOSS)
FROM
ORDINARY
ACTIVITIES
(a)
Revenue
Revenue
from
sales
Total
sales
revenues
from
ordinary
activities
(b)
Other
revenues
Interest
received
from
other
corporations
Profit
on
sale
of
assets
Other
revenue
Total
other
revenues
from
ordinary
activities
Total
revenue
(c)
Cost
of
sales
Drilling
costs
Depreciation
-‐
plant
&
equipment
Total
cost
of
sales
(d)
Other
expenses
Depreciation
-‐
plant
&
equipment
Loss
on
sale
of
assets
Total
other
expenses
from
ordinary
activities
(e)
Financing
costs
Interest
expense
Total
financing
costs
(f)
Employee
benefits
expense
Employee
share
scheme
expense
Bonus
paid
by
way
of
issue
of
shares
to
directors
and
staff
Other
employee
benefits
expense
Total
employee
benefits
expense
2016
$’000
1,350
1,350
23
111
1
135
2015
$’000
4,745
4,745
29
4
1
34
1,485
4,779
1,609
503
2,112
51
-‐
51
277
277
235
545
1,888
2,668
3,966
752
4,718
95
27
122
267
267
184
552
1,423
2,159
54
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
6.
EARNINGS
/
(LOSS)
PER
SHARE
(a) Basic
earnings
/
(loss)
per
share
From
continuing
operations
attributable
to
the
ordinary
equity
holders
of
the
company
From
discontinued
operation
Total
basic
earnings
per
share
attributable
to
the
ordinary
equity
holders
of
the
company
(b) Diluted
earnings
/
(loss)
per
share
From
continuing
operations
attributable
to
the
ordinary
equity
holders
of
the
company
From
discontinued
operation
Total
basic
earnings
per
share
attributable
to
the
ordinary
equity
holders
of
the
company
2016
cents
per
share
2015
cents
per
share
(3.50)
-‐
(3.50)
(3.50)
-‐
(3.50)
(3.48)
(2.61)
(6.09)
(3.48)
(2.61)
(6.09)
2016
Number
2015
number
(c) Weighted
average
number
of
ordinary
shares
used
as
the
denominator
in
calculating
the
basic
and
diluted
earnings
per
share.
Listed
and
unlisted
options
are
not
considered
as
potential
ordinary
shares
and
are
not
included
in
the
calculation
because
they
are
antidilutive
for
the
year
end
30
June
2016.
These
options
could
potentially
dilute
basic
earnings
per
share
in
the
future.
900,582,172
489,828,314
(d) Earnings
used
in
the
calculation
of
basic
earnings
per
share
reconciles
to
net
profit
in
the
income
statement
as
follows:
Net
profit
/
(loss)
Less
-‐
profit
/(
loss)
from
discontinued
operations
Earnings
used
in
the
calculation
of
basic
EPS
(e) As
at
30
June
2016,
there
were
5,536,201
listed
share
options
outstanding,
with
5,299,098
of
these
share
options
converted
to
shares
on
12
July
2016,
the
remainder
(237,103
share
options)
lapsing.
These
potential
ordinary
shares
would
reduce
the
loss
per
share
from
continuing
ordinary
operations
on
conversion,
and
hence
these
potential
ordinary
shares
are
not
dilutive.
(f)
As
at
30
June
2016,
there
were
6,650,000
Management
performance
rights
outstanding,
these
potential
ordinary
shares
would
reduce
the
loss
per
share
from
continuing
ordinary
operations
on
conversion,
and
hence
these
potential
ordinary
shares
are
not
dilutive.
2016
$’000
(31,499)
-‐
(31,499)
2015
$’000
(29,847)
(12,793)
(17,054)
55
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
7.
INCOME
TAX
EXPENSE
(a)
The
components
of
tax
expense
comprise:
Current
Tax
Current
year
Adjustments
in
respect
of
prior
periods
Deferred
Tax
Current
year
deferred
tax
Total
income
tax
expense
per
income
statement
(b)
Income
tax
expense
is
attributable
to
:
Profit
/
(loss)
from
continuing
operations
Profit
/
(loss)
from
discontinued
operations
2016
$’000
2015
$’000
-‐
254
524
778
778
-‐
778
160
214
(54)
320
320
-‐
320
(c)
The
prima
facie
tax
on
profit
/
(loss)
before
income
tax
is
reconciled
to
the
income
tax
as
follows:
Profit
/
(loss)
from
continuing
operations
Profit
/
(loss)
from
discontinued
operations
Profit
/
(loss)
before
tax
(30,840)
-‐
(30,840)
(16,949)
(12,793)
(29,742)
Income
tax
calculated
at
the
Australian
rate
of
30%
(9,252)
(8,923)
Increase
in
income
tax
due
to:
Non-‐deductible
expenses
Share
compensation
costs
Effect
of
current
year
tax
losses
derecognised
Under
/
(over)
provision
in
prior
year
Difference
in
overseas
tax
rates
Income
tax
expense
7,750
234
1,881
254
(89)
778
6,003
173
3,035
214
(182)
320
Deferred
tax
assets
arising
from
tax
losses
are
only
recognised
to
the
extent
that
there
are
equivalent
deferred
tax
liabilities.
The
remaining
tax
losses
have
not
been
recognised
as
an
asset
because
recovery
of
the
losses
is
not
regarded
as
probable:
Tax
losses
not
recognised
-‐
revenue
9,584
8,640
(d)
Tax
consolidation
system
Legislation
to
allow
groups,
comprising
a
parent
entity
and
its
Australian
resident
wholly-‐owned
entities,
to
elect
to
consolidate
and
be
treated
as
a
single
entity
for
income
tax
purposes
was
substantively
enacted
on
21
October
2002.
Altura
Mining
Limited
and
certain
of
its
wholly-‐owned
Australian
subsidiaries
are
eligible
to
consolidate
for
tax
purposes
and
have
elected
to
form
an
income
tax
group
under
the
Tax
Consolidation
Regime
effective
1
July
2005.
The
implementation
of
the
tax
consolidation
group
was
formally
recognised
by
the
ATO
on
22
July
2005
with
start
date
for
income
tax
consolidation
1
July
2005
and
Altura
Mining
Limited
as
the
head
entity
of
the
group.
Entities
within
the
tax-‐consolidated
group
have
entered
into
a
tax-‐sharing
agreement
with
the
head
entity.
Under
the
terms
of
this
agreement,
Altura
Mining
Limited
and
each
of
the
entities
in
the
tax
consolidated
group
has
agreed
to
pay
a
tax
equivalent
payment
to
or
from
the
head
entity,
based
on
standalone
tax
payer
basis.
Such
amounts
are
reflected
in
amounts
receivable
from
or
payable
to
other
entities
in
the
tax
consolidated
group.
56
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
8.
CASH
AND
CASH
EQUIVALENTS
2016
$’000
2015
$’000
Cash
at
bank
and
on
hand
22,132
2,092
9.
RECEIVABLES
CURRENT
Trade
and
other
receivables
Provision
for
doubtful
debts
NON-‐CURRENT
Other
receivables
–
Related
parties
*
1,977
(851)
1,126
2,482
2,482
3,265
(507)
2,758
2,377
2,377
*
These
unsecured
amounts
are
due
from
a
minority
party
in
the
Tabalong
coal
project.
Their
recoverability
is
dependent
on
the
commercial
exploitation
of
certain
mining
tenements
in
the
project.
The
timing
of
which
is
currently
unknown,
and
as
such
the
amounts
have
not
been
discounted.
No
losses
are
expected
on
these
amounts.
2016
Consolidated
2015
Consolidated
0-‐30
days
$000
307
1,517
31-‐60
days
$000
83
163
61-‐90
days
$000
736
120
90+
days
$000
Total
$000
-‐
1,126
958
2,758
As
at
30
June
2016,
$819,000
(2015:
$1,241,000)
trade
receivables
were
past
due.
10.
INVENTORIES
Consumables
and
stores
–
at
cost
11. HELD
TO
MATURITY
INVESTMENTS
Term
deposits
The
term
deposits
are
held
to
their
maturity
of
less
than
one
year
and
carry
a
weighted
average
fixed
interest
rate
of
2.65%
(2015:
2.96%).
Due
to
their
short
term
nature
their
carrying
value
is
assumed
to
approximate
their
fair
value.
Information
about
the
Group’s
exposure
to
credit
risk
is
disclosed
in
Note
2.
2016
$’000
1
1
50
50
2015
$’000
1
1
1,280
1,280
57
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
12. OTHER
CURRENT
ASSETS
Financial
assets
(security
deposits)
Prepayments
13. AVAILABLE-‐FOR-‐SALE
FINANCIAL
ASSESTS
Listed
investments
at
fair
value
2016
$’000
132
329
461
1,333
1,333
2015
$’000
192
288
480
573
573
In
November
2012
the
Group
acquired
a
14.7%
interest
in
Lithium
Corporation,
Nevada
USA
by
way
of
a
non-‐brokered
private
placement.
Lithium
Corporation
is
quoted
on
the
US
OTCBB
(Over
The
Counter
Bulletin
Board).
14. PROPERTY,
PLANT
AND
EQUIPMENT
Motor
vehicles
Office
equipment
Plant
and
equipment
Land
Exploration
$’000
$’000
$’000
$’000
$’000
Plant
and
equipment
under
lease
$’000
Total
$’000
755
-‐
63
18
(123)
713
658
52
-‐
46
35
(105)
686
27
599
12
-‐
16
(11)
616
478
72
-‐
-‐
26
(11)
565
51
7,208
-‐
-‐
134
-‐
7,342
6,089
418
261
-‐
126
-‐
6,894
448
16
-‐
-‐
-‐
(16)
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
108
-‐
-‐
-‐
-‐
108
107
1
-‐
-‐
-‐
-‐
108
-‐
61
-‐
(63)
2
-‐
-‐
33
11
-‐
(46)
2
-‐
-‐
-‐
8,747
12
-‐
170
(150)
8,779
7,365
554
261
-‐
189
(116)
8,253
526
2016
Gross
carrying
amount
Balance
at
30
June
2015
Additions
Transfer
Exchange
difference
Disposals
Balance
at
30
June
2016
Accumulated
depreciation
Balance
at
30
June
2015
Depreciation
expense
Impairment
expense
Transfer
Exchange
difference
Disposals
Balance
at
30
June
2016
Net
book
value
as
at
30
June
2016
58
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
14. PROPERTY,
PLANT
AND
EQUIPMENT
(Continued)
Motor
vehicles
Office
equipment
Plant
and
equipment
Land
Exploration
$’000
$’000
$’000
$’000
$’000
Plant
and
equipment
under
lease
$’000
Total
$’000
2015
Gross
carrying
amount
Balance
at
30
June
2014
Additions
Transfer
Exchange
difference
Disposals
Balance
at
30
June
2015
Accumulated
depreciation
Balance
at
30
June
2014
Depreciation
expense
Transfer
Exchange
difference
Disposals
Balance
at
30
June
2015
Net
book
value
as
at
30
June
2015
661
-‐
-‐
94
755
481
51
-‐
126
-‐
658
97
683
4
-‐
86
(174)
599
444
106
-‐
66
(138)
478
121
6,218
41
-‐
949
-‐
7,208
4,639
664
-‐
786
-‐
6,089
14
-‐
-‐
2
-‐
16
-‐
-‐
-‐
-‐
-‐
-‐
1,119
16
15. EXPLORATION
AND
EVALUATION
Exploration
and
evaluation
expenditure
at
cost:
Carried
forward
from
previous
year
Transfer
to
mine
development
costs
Incurred
during
the
year
Disposed
during
year
Written
off
during
the
year
Total
exploration
and
evaluation
expenditure
The
recovery
of
expenditure
carried
forward
is
dependent
upon
the
discovery
of
commercially
viable
mineral
and
other
natural
resource
deposits,
their
development
and
exploitation,
or
alternatively
their
sale.
The
Company's
title
to
certain
mining
tenements
is
subject
to
Ministerial
approval
and
may
be
subject
to
successful
outcomes
of
native
title
issues.
139
-‐
-‐
-‐
(31)
108
125
12
-‐
-‐
(30)
107
1
49
-‐
-‐
12
-‐
61
16
14
-‐
3
-‐
33
28
7,764
45
-‐
1,143
(205)
8,747
5,705
847
-‐
981
(168)
7,365
1,382
2016
$’000
2015
$’000
14,949
-‐
3,340
-‐
18,289
(3,895)
14,394
14,205
-‐
859
-‐
15,064
(115)
14,949
59
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
16.
INVESTMENTS
ACCOUNTED
FOR
USING
THE
EQUITY
METHOD
Non-‐Current
Assets
Investments
in
associates
(refer
to
Note
1C(ii)
and
Note
24
(b))
Impairment
assessment
An
impairment
charge
of
$18.5
million
was
recognised
during
the
12
months
ended
30
June
2016
to
the
Group’s
investment
in
the
Delta
Coal
operations.
The
recoverable
amount
is
based
on
the
Director’s
assessment
of
the
likely
return
to
the
Company
on
sale
of
the
asset.
17. TRADE
AND
OTHER
PAYABLES
Trade
payables
18. BORROWINGS
Current
borrowings
Interest
bearing
Hire
purchase
liabilities
(Note
33)
Director
&
Management
loans
(Note
26)
Total
current
borrowings
Non-‐current
borrowings
Non-‐interest
bearing
Loan
from
other
entities
##
Vendor
loan
#
Total
non-‐current
borrowings
2016
$’000
144
144
2015
$’000
19,451
19,451
2,072
2,072
1,872
1,872
-‐
-‐
-‐
1,604
16,833
18,437
8
389
397
1,551
16,056
17,607
60
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
19. CURRENT
PROVISIONS
Employee
benefits
Movements
in
Provisions
Short
term
employee
benefits
Opening
balance
Provision
increase
/
(decrease)
Expense
incurred
Balance
at
year
end
The
aggregate
employee
entitlement
liability
recognised
and
included
in
the
financial
statements
is
as
follows:
Provision
for
employee
entitlements:
Current
Total
20. CURRENT
TAXATION
&
DEFERRED
TAX
LIABILITIES
&
ASSETS
(a)
Liabilities
Current
Income
tax
paid
/
payable
Non-‐Current
Deferred
tax
liability
comprises:
Unrealised
foreign
exchange
gain
Tax
allowances
relating
to
exploration
Other
(b)
Assets
Non-‐Current
Deferred
assets
comprises:
Provisions
Revenue
losses
Revenue
losses
not
recognised
Property,
plant
and
equipment
Other
(c)
Reconciliation
of:
Gross
movements
The
overall
movement
in
the
deferred
tax
account
is
as
follows:
Opening
balance
-‐
net
deferred
taxes
(Charge)
/
credit
to
income
statement
(Charge)
/
credit
to
equity
Closing
balance
-‐
net
deferred
taxes
2016
$’000
2015
$’000
847
847
777
132
(62)
847
847
847
777
777
544
335
(102)
777
777
777
-‐
-‐
2,140
2,483
3
4,627
254
13,887
(9,584)
7
63
4,627
505
(524)
19
-‐
1,875
2,740
18
4,633
439
13,002
(8,640)
230
107
5,138
367
54
84
505
61
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
21. CONTRIBUTED
EQUITY
Issued
capital
2016
$’000
2015
$’000
1,222,459,902
(2015:
837,676,732)
ordinary
shares
issued
and
fully
paid
105,840
78,904
Fully
paid
ordinary
shares
Balance
at
the
beginning
of
the
financial
year
Issue
of
shares
to
directors
and
staff
#
Issue
of
shares
on
vesting
of
performance
rights
##
Share
purchase
plan
Non
renounceable
rights
issue
Share
placement
and
lead
managers
fee
Exercise
of
Listed
Options
Repayment
of
Director
and
Management
loans
by
the
issue
of
shares
Share
issue
costs
2016
2015
Number
$’000
Number
$’000
837,676,732
11,450,000
2,900,000
-‐
-‐
137,037,037
197,396,133
78,904
545
183
-‐
-‐
23,000
3,948
36,000,000
360
-‐
(1,100)
454,272,181
8,300,000
-‐
5,240,000
303,720,989
66,143,562
-‐
-‐
-‐
74,562
552
-‐
262
3,037
661
-‐
-‐
(170)
Balance
at
the
end
of
the
financial
year
1,222,459,902
105,840
837,676,732
78,904
#
11,000,000
shares
were
issued
to
directors
and
other
key
management
personnel.
##
2,400,000
shares
were
issued
to
directors
and
other
key
management
personnel.
Fully
paid
ordinary
shares
carry
one
vote
per
share
and
carry
the
rights
to
dividends.
Ordinary
shares
have
no
par
value.
Reserves
Option
and
performance
rights
reserve
The
option
and
performance
rights
reserve
records
items
recognised
as
expenses
on
the
valuation
of
share
options.
Foreign
currency
translation
reserve
The
foreign
currency
translation
reserve
records
exchange
differences
arising
on
translation
of
a
foreign
controlled
subsidiary.
Change
in
fair
value
reserve
The
change
in
fair
value
reserve
records
valuation
differences
arising
on
the
market
valuation
of
available
for
sale
financial
assets.
Capital
management
The
Board's
policy
is
to
maintain
a
strong
capital
base
so
as
to
maintain
investor,
creditor
and
market
confidence
and
to
sustain
future
development
of
the
business.
There
were
no
changes
to
the
consolidated
entity's
approach
to
capital
management
during
the
year.
Neither
the
Company
nor
any
of
its
subsidiaries
are
subject
to
externally
imposed
capital
requirements.
The
Board
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
and
by
share
issues.
62
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
22. SHARE
BASED
PAYMENTS
a) Options
The
Company
previously
had
in
place
an
Employee
Share
Option
Plan
(ESOP)
under
which
employees
and
directors
of
the
Group
may
be
issued
on
a
discretionary
basis
with
options
over
ordinary
shares
of
Altura
Mining
Limited.
In
2014
this
plan
was
replaced
with
a
Long-‐Term
Incentive
Plan
referred
to
below
in
(b).
There
were
9
million
employee
share
options
expiring
on
30
September
2015,
all
of
which
lapsed.
Number
of
options
2016
Weighted
average
exercise
price
$
Number
of
options
2015
Weighted
average
exercise
price
$
Outstanding
at
the
beginning
of
the
year
Granted
Forfeited
/
expired
Exercised
Outstanding
at
year-‐end
Exercisable
at
year-‐end
9,000,000
-‐
(9,000,000)
-‐
-‐
-‐
0.20
-‐
-‐
-‐
-‐
-‐
9,575,000
-‐
(575,000)
-‐
9,000,000
9,000,000
0.20
-‐
-‐
-‐
0.20
0.20
There
were
no
new
options
issued
to
staff
during
the
year
ended
30
June
2016.
b)
Performance
Rights
In
2014
the
Company
approved
a
Long-‐Term
Incentive
Plan
(LTIP)
under
which
employees
and
directors
of
the
Group
may
be
issued
on
a
discretionary
basis
with
performance
rights
over
ordinary
shares
of
Altura
Mining
Limited.
The
purpose
of
this
plan
is
to:
•
•
•
assist
in
the
reward,
retention
and
motivation
of
employees
and
directors;
align
the
interests
of
employees
and
directors
more
closely
with
the
interests
of
Shareholders
by
providing
an
opportunity
for
employees
and
directors
to
receive
an
equity
interest
in
the
form
of
Awards;
and
provide
employees
and
directors
with
the
opportunity
to
share
in
any
future
growth
in
value
of
the
Company.
The
Performance
Rights
lapse
when
employment
ceases
with
Altura
Mining
Limited.
The
Performance
Rights
have
been
granted
for
no
consideration,
and
no
amount
is
payable
on
the
vesting
or
exercising
of
the
Performance
Rights.
All
rights
subject
to
the
LTIP
carry
no
rights
to
dividends
and
no
voting
rights,
until
converted
into
ordinary
shares.
The
Company
had
the
following
Performance
Rights
granted
under
the
LTIP
as
at
30
June
2016:
Number
Issue
date
Vesting
date
2,700,000
11
December
2014
30
November
2016
400,000
150,000
11
August
2015
21
June
2016
30
November
2016
30
November
2016
2,700,000
11
December
2014
30
November
2017
400,000
300,000
11
August
2015
21
June
2016
30
November
2017
30
November
2017
63
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
SHARE
BASED
PAYMENTS
(continued)
c)
Bonus
Shares
During
the
year
11,450,000
shares
were
issued
to
the
directors
and
staff
for
no
consideration.
During
the
year,
the
Company
has
the
following
share
based
payments
expenses:
Options
expense
(Note
22a)
Performance
rights
(Note
22b)
Bonus
shares
(Note
22c)
2016
$’000
-‐
235
545
780
2015
$’000
3
181
552
736
23. KEY
MANAGEMENT
PERSONNEL
COMPENSATION
a) Names
and
positions
held
of
key
management
personnel
in
office
at
any
time
during
the
financial
year
are:
Directors
James
Brown
Paul
Mantell
Allan
Buckler
Dan
O’Neill
BT
Kuan
Managing
Director
Non-‐Executive
Director
Non-‐Executive
Director
Non-‐Executive
Director
Non-‐Executive
Director
Key
Management
Personnel
Chris
Evans
Noel
Young
Damon
Cox
General
Manager,
Operations
Group
Financial
Controller
and
Company
Secretary
Company
Secretary
b)
Key
management
personnel
remuneration
Short-‐term
employee
benefits
Long-‐term
employee
benefits
Post-‐employment
benefits
Termination
benefits
Share
based
payments
c)
Option
holdings
Number
of
options
held
by
key
management
personnel
2016
$
1,263,069
-‐
70,534
-‐
571,980
1,905,583
2015
$
916,613
-‐
63,262
-‐
586,605
1,566,480
2016
J
Brown
P
Mantell
A
Buckler
D
O’Neill
B
Kuan
C
Evans
N
Young
D
Cox
Balance
at
the
start
of
the
year
4,500,001
5,523,334
28,682,283
1,555,556
3,500,000
-‐
2,180,000
425,000
Purchased
in
rights
issue
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
Granted
for
loan
conversion
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
-‐
3,000,000
-‐
Exercised
Lapsed
Balance
at
end
of
the
year
Vested
and
exercisable
(5,500,001)
(6,523,334)
(30,682,283)
(3,555,556)
(5,500,000)
-‐
(4,830,000)
(75,000)
(2,000,000)
(2,000,000)
(1,000,000)
(1,000,000)
(1,000,000)
-‐
(350,000)
(350,000)
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
64
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
23. KEY
MANAGEMENT
PERSONNEL
COMPENSATION
(continued)
Details
of
options
granted
as
compensation
and
shares
issued
on
the
exercise
of
such
options,
together
with
terms
and
conditions
of
the
options,
can
be
found
in
the
Directors’
Report
and
under
Note
22.
2015
J
Brown
P
Mantell
A
Buckler
D
O’Neill
B
Kuan
C
Evans
N
Young
D
Cox
Balance
at
the
start
of
the
year
2,000,000
2,000,000
1,000,000
1,000,000
1,000,000
-‐
350,000
350,000
Purchased
in
rights
issue
2,500,001
3,523,334
27,682,283
555,556
2,500,000
-‐
1,830,000
75,000
Granted
for
loan
conversion
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
Exercised
Lapsed
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
Balance
at
end
of
the
year
4,500,001
5,523,334
28,682,283
1,555,556
3,500,000
-‐
2,180,000
425,000
Vested
and
exercisable
4,500,001
5,523,334
28,682,283
1,555,556
3,500,000
-‐
2,180,000
425,000
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
d)
Performance
Rights
Number
of
performance
rights
held
by
key
management
personnel
The
number
of
performance
rights
in
the
Company
held
during
the
financial
year
by
each
director
of
Altura
Mining
Limited
and
other
key
management
personnel
of
the
Group,
including
their
personally
related
parties,
are
set
out
below.
2016
J
Brown
P
Mantell
A
Buckler
D
O’Neill
B
Kuan
C
Evans
N
Young
D
Cox
2015
J
Brown
P
Mantell
A
Buckler
D
O’Neill
B
Kuan
C
Evans
N
Young
D
Cox
Balance
at
the
start
of
the
year
3,000,000
1,500,000
300,000
300,000
300,000
Granted
as
compensation
Shares
issued/
rights
lapsed
Balance
at
the
end
of
the
year
Vesting
30
Nov
2015
Vesting
30
Nov
2016
Vesting
30
Nov
2017
-‐
-‐
-‐
-‐
-‐
(1,000,000)
2,000,000
(500,000)
1,000,000
(100,000)
(100,000)
(100,000)
(200,000)
(200,000)
(200,000)
200,000
200,000
200,000
800,000
400,000
400,000
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
1,000,000
1,000,000
500,000
500,000
100,000
100,000
100,000
100,000
100,000
100,000
400,000
400,000
200,000
200,000
200,000
200,000
-‐
1,000,000
600,000
600,000
-‐
-‐
Balance
at
the
start
of
the
year
Granted
as
compensation
Shares
issued/
rights
lapsed
Balance
at
the
end
of
the
year
Vesting
30
Nov
2015
Vesting
30
Nov
2016
Vesting
30
Nov
2017
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
3,000,000
1,500,000
300,000
300,000
300,000
-‐
600,000
600,000
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
3,000,000
1,000,000
1,000,000
1,000,000
1,500,000
500,000
500,000
500,000
300,000
100,000
100,000
100,000
300,000
100,000
100,000
100,000
300,000
100,000
100,000
100,000
-‐
-‐
-‐
-‐
600,000
200,000
200,000
200,000
600,000
200,000
200,000
200,000
Details
of
performance
rights
awarded
as
compensation
and
shares
issued
on
the
vesting
of
the
rights,
together
with
terms
and
conditions
of
the
rights,
can
be
found
in
the
Directors’
Report
and
under
Note
22.
65
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
23. KEY
MANAGEMENT
PERSONNEL
COMPENSATION
(continued)
e)
Share
holdings
Number
of
shares
held
by
key
management
personnel
The
number
of
shares
in
the
Company
held
during
the
financial
year
by
each
director
of
Altura
Mining
Limited
and
other
key
management
personnel
of
the
Group,
including
their
personally
related
parties,
are
set
out
below.
Other
changes
during
the
year
include
the
bonus
issue
of
shares
to
directors
(following
approval
at
the
2015
AGM)
and
shares
issued
to
directors
and
other
key
management
personnel
on
the
vesting
of
performance
rights.
2016
J
Brown
P
Mantell
A
Buckler
D
O’Neill
B
Kuan
C
Evans
N
Young
D
Cox
2015
J
Brown
P
Mantell
A
Buckler
D
O’Neill
B
Kuan
C
Evans
N
Young
D
Cox
Balance
at
start
of
the
year
12,018,300
17,479,750
138,411,409
2,777,780
7,182,968
-‐
6,144,411
1,000,000
3,718,300
9,233,083
82,146,845
1,166,668
1,882,968
-‐
1,584,411
250,000
Purchased
/
(sold)
Exercise
of
Listed
Options
Conversion
of
loans
to
Company
Purchased
in
rights
issue
/
SPP
Other
changes
Balance
at
the
end
of
the
year
-‐
-‐
-‐
(100,000)
17,032
(159,000)
-‐
-‐
5,500,001
6,523,334
30,682,283
3,555,556
5,500,000
-‐
4,830,000
75,000
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000
-‐
6,000,000
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
3,000,000
2,500,000
2,100,000
2,100,000
2,100,000
1,200,000
200,000
200,000
26,518,301
32,503,084
177,193,692
14,333,336
20,800,000
1,041,000
17,174,411
1,275,000
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
5,300,000
7,346,667
55,964,564
1,311,112
5,000,000
-‐
3,960,000
150,000
3,000,000
900,000
300,000
300,000
300,000
-‐
600,000
600,000
12,018,300
17,479,750
138,411,409
2,777,780
7,182,968
-‐
6,144,411
1,000,000
66
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
24. INVESTMENTS
IN
OTHER
ENTITIES
a)
Joint
operations
Altura
Mining
Limited
holds
no
interests
in
any
joint
operations
or
ventures.
b)
Interests
are
held
in
the
following
associated
companies:
Name
Principal
Activities
Country
of
Incorporation
Ownership
Interest
Carrying
Amount
of
Investment
Unlisted:
Evora
Mining
Inc.*
Merida
Mining
Pte.
Ltd.
Coal
Mining
Holding
and
Investment
British
Virgin
Islands
Singapore
2016
%
33⅓
33⅓
2015
%
33⅓
33⅓
2016
$’000
2015
$’000
144
-‐
144
19,451
-‐
19,451
*
Evora
Mining
Inc.
is
the
ultimate
controlling
entity
of
PT
Binamitra
Sumberata,
the
owner
and
operator
of
the
Delta
coal
mining
tenements.
The
Group
acquired
33⅓%
of
the
issued
shares
of
Evora
Mining
Inc.
in
2013.
c) Movement
in
carrying
amounts
Opening
acquisition
value
Share
of
profits
after
income
tax
Foreign
exchange
movement
Impairment
Carrying
amount
at
the
end
of
the
financial
year
Information
relating
to
associated
companies
is
set
out
below:
d)
Summarised
financial
information
of
associates
Share
of
assets
and
liabilities
Current
assets
Non-‐current
assets
Total
assets
Current
liabilities
Non-‐current
liabilities
Total
liabilities
Net
assets
Share
of
revenues,
expenses
and
profits:
Revenues
Expenses
Profit
(loss)
before
income
tax
Income
tax
expense
/
(benefit)
Profit
(loss)
after
income
tax
2016
$’000
2015
$’000
19,451
(1,513)
686
(18,480)
144
25,772
(3,894)
5,255
(7,682)
19,451
4,948
12,302
17,250
18,841
-‐
18,841
(1,591)
6,001
(7,514)
(1,513)
-‐
(1,513)
2,896
14,530
17,426
15,691
1,384
17,076
350
14,910
(19,858)
(4,948)
(1,054)
(3,894)
67
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
25. INTERESTS
IN
SUBSIDIARIES
The
consolidated
financial
statements
incorporate
the
assets,
liabilities
and
results
of
the
following
wholly-‐owned
subsidiaries
in
accordance
with
the
accounting
policy
described
in
Note
1:
Name
of
entity
Altura
Exploration
Pty
Ltd
Altura
Drilling
Pty
Ltd
Altura
Lithium
Pty
Ltd
Minvest
Australia
Pty
Ltd
Minvest
International
Corporation
Altura
Asia
Pte
Ltd
Altura
Mining
Philippines
Inc.
*
PT
Asiadrill
Bara
Utama
PT
Altura
Indonesia
PT
Minvest
Mitra
Pembangunan
PT
Cakrawala
Jasa
Pratama
PT
Minvest
Jasatama
Teknik
PT
Cybertek
Global
Utama
Country
of
incorporation
Ownership
interest
Australia
Australia
Australia
Australia
Mauritius
Singapore
Philippines
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
2016
%
100
100
100
100
100
100
40
100
100
100
100
100
100
2015
%
100
100
100
100
100
100
40
100
100
100
100
100
100
*
Altura
Mining
Limited
through
its
wholly
owned
subsidiary,
Altura
Asia
Pte
Ltd
holds
40%
direct
equity
in
Altura
Mining
Philippines
Inc.
This
entity
is
considered
a
subsidiary
as
the
Group
has
full
economic
and
management
rights.
The
consolidated
financial
statements
incorporate
the
assets,
liabilities
and
results
of
the
following
subsidiaries
with
non-‐
controlling
interests
in
accordance
with
the
accounting
policy
described
in
Note
1:
Country
of
incorporation
Principal
activities
Parent
Ownership
interest
Non-‐controlling
interest
Name
of
entity
PT
Velseis
Indonesia
*
PT
Jasa
Tambang
Pratama
#
PT
Cahaya
Permata
Khatulistiwa
#
PT
Suryaraya
Permata
Cemerlang
#
PT
Suryaraya
Cahaya
Khatulistiwa
#
PT
Suryaraya
Cahaya
Cemerlang
#
PT
Suryaraya
Permata
Khatulistiwa
#
PT
Suryaraya
Pusaka
#
PT
Kodio
Multicom
PT
Marangkayu
Bara
Makarti
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Mining
Services
Mining
and
Exploration
Mining
and
Exploration
Mining
and
Exploration
Mining
and
Exploration
Mining
and
Exploration
Mining
and
Exploration
Mining
and
Exploration
Mining
and
Exploration
Mining
and
Exploration
2016
%
50
70
70
70
70
70
70
70
56
56
2015
%
50
70
70
70
70
70
70
70
56
56
2016
%
50
30
30
30
30
30
30
30
44
44
2015
%
50
30
30
30
30
30
30
30
44
44
Altura
Mining
Limited,
Altura
Exploration
Pty
Ltd
and
Altura
Lithium
Pty
Ltd
are
included
within
the
tax
consolidation
group.
#
Altura
Mining
Limited
through
its
wholly
owned
subsidiary,
Altura
Asia
Pte
Ltd
holds
70%
direct
equity
in
these
seven
entities.
*
Altura
Mining
Limited
through
its
wholly
owned
subsidiary,
Minvest
International
Corporation
holds
50%
direct
equity
in
PT
Velseis
Indonesia.
This
entity
is
considered
a
subsidiary
as
the
Group
has
full
management
rights.
68
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
25. INTERESTS
IN
SUBSIDIARIES
(continued)
Summarised
financial
information
Summarised
financial
information
of
the
subsidiaries
with
non-‐controlling
interests
that
are
material
to
the
consolidated
entity
are
set
out
below:
PT
Velseis
Indonesia
$’000
PT
Suryaraya
Pusaka
$’000
PT
Kodio
Multicom
$’000
PT
Marangkayu
Bara
Makarti
$’000
2016
Summarised
statement
of
financial
position
Current
assets
Non-‐current
assets
Total
assets
Current
liabilities
Non-‐current
liabilities
Total
liabilities
Net
assets
Summarised
statement
of
profit
or
loss
and
other
comprehensive
income
Revenue
Expenses
Profit
/
(loss)
before
income
tax
expense
Income
tax
expense
/
(benefit)
Profit
/
(loss)
after
income
tax
expense
Other
comprehensive
income
Total
comprehensive
income
Statement
of
cash
flows
Net
cash
from
operating
activities
Net
cash
used
in
investing
activities
Net
cash
used
in
financing
activities
Net
increase
/
(decrease)
in
cash
and
cash
equivalents
Other
financial
information
Profit
attributable
to
non-‐controlling
interests
Accumulated
non-‐controlling
interest
at
the
end
of
reporting
period
372
265
637
231
-‐
231
406
475
520
(45)
54
(99)
12
(87)
(27)
-‐
-‐
(27)
(44)
146
176
1,550
1,726
-‐
1,156
1,156
570
-‐
3
(3)
-‐
(3)
(2)
(5)
(24)
-‐
-‐
(24)
(1)
1
-‐
1,885
1,885
1
831
832
1,053
-‐
(8)
8
-‐
8
(9)
(1)
(5)
-‐
-‐
(5)
-‐
25
-‐
2,712
2,712
5
1,638
1,643
1,069
-‐
(8)
8
-‐
8
(9)
(1)
(5)
-‐
-‐
(5)
-‐
32
69
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
25. INTERESTS
IN
SUBSIDIARIES
(continued)
2015
Summarised
statement
of
financial
position
Current
assets
Non-‐current
assets
Total
assets
Current
liabilities
Non-‐current
liabilities
Total
liabilities
Net
assets
Summarised
statement
of
profit
or
loss
and
other
comprehensive
income
Revenue
Expenses
Profit
/
(loss)
before
income
tax
expense
Income
tax
expense
/
(benefit)
Profit
/
(loss)
after
income
tax
expense
Other
comprehensive
income
Total
comprehensive
income
Statement
of
cash
flows
Net
cash
from
operating
activities
Net
cash
used
in
investing
activities
Net
cash
used
in
financing
activities
Net
increase
/
(decrease)
in
cash
and
cash
equivalents
Other
financial
information
Profit
attributable
to
non-‐controlling
interests
Accumulated
non-‐controlling
interest
at
the
end
of
reporting
period
26. RELATED
PARTIES
Transactions
within
the
wholly-‐owned
group
The
wholly-‐owned
group
includes:
PT
Velseis
Indonesia
$’000
PT
Suryaraya
Pusaka
$’000
PT
Kodio
Multicom
$’000
PT
Marangkayu
Bara
Makarti
$’000
350
299
649
160
-‐
160
489
356
499
(143)
63
(206)
123
(83)
(88)
-‐
-‐
(88)
(42)
190
189
1,477
1,666
-‐
1,113
1,113
553
-‐
1
(1)
-‐
(1)
(13)
(14)
4
-‐
-‐
4
(4)
6
5
1,803
1,808
1
798
799
1,009
-‐
97
(97)
-‐
(97)
(40)
5
2,603
2,608
5
1,578
1,583
1,025
-‐
83
(83)
-‐
(83)
(38)
(137)
(121)
-‐
-‐
-‐
-‐
(60)
26
-‐
-‐
-‐
-‐
(53)
32
•
•
the
ultimate
parent
entity
in
the
wholly-‐owned
group;
and
wholly-‐owned
controlled
entities.
The
ultimate
parent
entity
in
the
wholly-‐owned
Group
is
Altura
Mining
Limited.
During
the
year
the
parent
entity
provided
financial
assistance
to
its
wholly
owned
and
controlled
entities
by
way
of
intercompany
loans.
The
loans
are
unsecured,
interest
free
and
have
no
fixed
term
of
repayment.
Sales
and
purchases
between
related
parties
within
the
Group
have
been
eliminated
upon
consolidation.
There
were
no
further
sales
or
purchases
from
related
parties
during
the
financial
year.
Transactions
with
directors
and
key
management
personnel
The
Directors
provided
Altura
Mining
Limited
with
a
short
term
facility
to
support
the
working
capital
requirements
of
the
Group
prior
to
capital
raising
during
the
2015
financial
year.
This
facility
was
fully
repaid
on
19
November
2015
by
the
issue
of
shares,
which
occurred
on
20
November
2015.
The
facility
attracted
interest
at
8%
per
annum
and
amounted
to
$10,473.
70
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
27. NOTES
TO
STATEMENT
OF
CASH
FLOWS
a)
For
the
purpose
of
the
statement
of
cash
flows,
cash
includes
cash
on
hand
and
in
banks,
and
investments
in
money
market
instruments,
net
of
outstanding
bank
overdrafts.
Cash
at
the
end
of
the
financial
year
as
shown
in
the
statements
of
cash
flows
is
reconciled
to
the
related
items
in
the
balance
sheet
as
follows:
Cash
at
bank
and
on
hand
(Note
8)
Cash
per
statement
of
cash
flows
Reconciliation
to
Statement
of
Cash
Flows
For
the
purposes
of
the
Statement
of
Cash
Flows,
cash
and
cash
equivalents
comprise
the
following
at
30
June:
Cash
at
bank
and
on
hand
Short-‐term
deposits
Cash
at
bank
and
on
hand
2016
$’000
22,132
22,132
2015
$’000
2,092
2,092
22,132
-‐
22,132
1,592
500
2,092
b)
Reconciliation
of
operating
profit
/
(loss)
after
income
tax
to
net
cash
used
in
operating
activities
Operating
loss
after
income
tax
(31,618)
(17,269)
Adjustments
for
non-‐cash
income
and
expense
items:
Option
and
share
pricing
Interest
expense
Bonus
paid
by
way
of
issue
of
shares
to
directors
and
staff
Impairment
-‐
goodwill
Impairment
–
property,
plant
and
equipment
Impairment
-‐
equity
Depreciation
of
property,
plant
and
equipment
Exploration
expenditure
written
off
Share
of
(profit)
/
loss
of
associates
and
joint
venture
partnership
Foreign
currency
exchange
rate
movement
(Increase)
/
decrease
in
current
tax
prepaid
Increase
/
(decrease)
in
deferred
tax
balances
Changes
in
assets
and
liabilities:
(Increase)
/
decrease
in
receivables
(Decrease)
/
increase
in
other
creditors
and
accruals
(Increase)
/
decrease
in
deposits
and
prepayments
Increase
/
(decrease)
in
current
provisions
Net
cash
used
in
operating
activities
c)
Acquisition
of
entities
The
Group
did
not
acquire
any
interest
in
entities
during
the
year.
235
252
545
-‐
261
18,480
554
3,895
1,513
(1,066)
277
505
1,632
452
(41)
70
(4,054)
184
251
552
4,529
-‐
7,682
847
115
3,894
(3,565)
(269)
(138)
(677)
562
115
233
(2,954)
71
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
28. PARENT
ENTITY
DISCLOSURE
(a)
Summary
of
financial
information
The
individual
financial
statements
for
the
parent
entity
show
the
following
aggregate
amounts:
Balance
sheet
Current
assets
Total
assets
Current
liabilities
Total
liabilities
Net
assets
Equity
Contributed
equity
Reserves
Retained
profits
/
(accumulated
losses)
Total
shareholder
equity
Loss
for
the
year
Total
comprehensive
loss
for
the
year
(b)
Contingent
liabilities
Contingent
liabilities
are
disclosed
in
Note
31.
(c)
Contractual
commitments
No
later
than
one
year
Later
than
one
year
and
not
later
than
five
years
Later
than
five
years
29. AUDITORS’
REMUNERATION
Amount
paid
or
payable
for
the
audit
or
review
of
the
financial
report
30. SUBSEQUENT
EVENTS
2016
$’000
Parent
2015
$’000
Parent
21,980
67,259
554
554
66,705
105,840
233
(39,367)
66,705
3,143
53,377
775
775
52,602
78,904
1,019
(27,321)
52,602
(12,883)
(12,958)
(12,883)
(12,958)
44
15
-‐
59
2016
$’000
107
107
52
-‐
-‐
52
2015
$’000
96
96
The
Share
Purchase
Plan
closed
on
13
July
2016.
Applications
for
3,869,000
shares
were
received,
all
were
accepted
resulting
in
the
receipt
of
$773,800
into
the
Company’s
bank
account,
together
with
shares
issued
on
18
July
2016.
Two
Mining
Leases
(M45/1230
and
M45/1231)
for
the
Company’s
Pilgangoora
Lithium
Project
were
granted
on
26
August
2016,
enabling
the
Mining
Proposal
to
be
lodged
with
the
DMP
on
2
September
2016.
72
ALTURA MINING LIMITED ANNUAL REPORT 2016
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
31. CONTINGENT
LIABILITIES
Details
and
estimates
of
maximum
amounts
of
contingent
liabilities
for
which
no
provision
is
included
in
the
financial
statements
are
as
follows:
The
bankers
of
the
Group
and
parent
entity
have
issued
undertakings
and
guarantees
to
the
DME
(Northern
Territory
Department
of
Mines
and
Energy)
and
various
other
entities.
A
subsidiary
of
the
Group
has
entered
into
a
conditional
loan
agreement
No
losses
are
anticipated
in
respect
of
any
of
the
above
contingent
liabilities.
32. COMMITMENTS
2016
$’000
-‐
2015
$’000
157
In
order
to
maintain
an
interest
in
the
mining
and
exploration
tenements
in
which
the
Group
is
involved,
the
Group
is
committed
to
meeting
the
conditions
under
which
the
tenements
were
granted
and
the
obligations
of
any
joint
venture
agreements.
The
timing
and
amount
of
exploration
expenditure
commitments
and
obligations
of
the
Group
are
subject
to
the
minimum
expenditure
commitments
required
by
the
relevant
State
Departments
of
Minerals
and
Energy,
and
may
vary
significantly
from
the
forecast
based
upon
the
results
of
the
work
performed
which
will
determine
the
prospectivity
of
the
relevant
area
of
interest.
One
of
the
Group's
subsidiaries
has
contracted
to
provide
up
to
a
US$4
million
facility
to
a
minority
party
in
the
Tabalong
coal
project.
The
provision
of
the
facility
is
contingent
on
project
milestones
being
achieved.
The
facility
will
be
repaid
in
accordance
with
the
loan
agreement
between
the
parties.
The
likelihood
of
this
proceeding
is
highly
probable.
a)
Exploration
work
The
Company
has
certain
obligations
to
perform
minimum
exploration
work
and
expend
minimum
amounts
on
its
wholly
owned
mining
tenements.
Obligations
for
the
next
12
months
are
expected
to
amount
to
$262,897
(2015:
$258,203).
No
estimate
has
been
given
of
expenditure
commitments
beyond
12
months
for
its
wholly
owned
tenements
as
this
is
dependent
on
the
Directors’
ongoing
assessment
of
operations
and,
in
certain
instances,
native
title
negotiations.
b)
Asset
acquisitions
The
Group
has
no
commitments
for
asset
acquisitions
at
30
June
2016.
c)
Operating
leases
The
Group
has
entered
into
operating
leases
for
office
premises
at
Subiaco
in
Western
Australia
and
at
Jakarta
and
Balikpapan
in
Indonesia.
The
Group
also
has
operating
leases
in
relation
to
office
equipment.
The
commitment
in
respect
of
these
leases
is:
No
later
than
one
year
Later
than
one
year
and
not
later
than
five
years
Later
than
five
years
2016
$’000
325
363
-‐
688
2015
$’000
378
19
-‐
397
73
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
CONTINUED
33. HIRE
PURCHASE
COMMITMENTS
Hire
purchase
agreements
The
Group
will
acquire
the
plant
and
equipment
at
the
conclusion
of
the
respective
agreements
No
later
than
one
year
Later
than
one
year
and
not
later
than
five
years
Later
than
five
years
Included
in
the
financial
statements
as:
Current
hire
purchase
liabilities
(Note
18)
Non-‐current
hire
purchase
liabilities
(Note
18)
2016
$’000
2015
$’000
-‐
-‐
-‐
-‐
-‐
-‐
-‐
8
-‐
-‐
8
8
-‐
8
74
ALTURA MINING LIMITED ANNUAL REPORT 2016
DIRECTORS'
DECLARATION
In
the
Directors’
opinion:
(a)
The
financial
statements
and
notes
are
in
accordance
with
the
Corporations
Act
2001
and:
a.
b.
comply
with
Accounting
Standards
and
the
Corporations
Regulations
2001;
and
give
a
true
and
fair
view
of
the
consolidated
entity’s
financial
position
as
at
30
June
2016
and
its
performance
for
the
financial
year
ended
on
that
date;
(b)
the
financial
statements
and
notes
also
comply
with
International
Financial
Reporting
Standards
as
set
out
in
Note
1;
(c)
the
remuneration
disclosures
that
are
contained
in
the
remuneration
report
in
the
Directors’
report
comply
with
Australian
Accounting
Standard
AASB
124
Related
Party
Disclosures,
the
Corporations
Act
2001
and
the
Corporations
Regulations
2001;
and
(d)
there
are
reasonable
grounds
to
believe
that
the
Company
will
be
able
to
pay
its
debt
as
and
when
they
become
due
and
payable.
The
Directors
have
been
given
the
declarations
by
the
Chief
Executive
Officer
and
the
Chief
Financial
Officer
required
under
section
295A
of
the
Corporations
Act
2001.
This
declaration
is
made
in
accordance
with
a
resolution
of
the
directors.
__________________________
BT
Kuan
Director
Brisbane,
13
September
2016
75
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
INDEPENDENT
AUDIT REPORT
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ALTURA MINING LIMITED
Report on the Financial Report
We have audited the accompanying financial report of Altura Mining Limited (“the company”) and its
Controlled Entities (“the group”) which comprises the consolidated balance sheet as at 30 June 2016, the
consolidated statement of profit or loss, consolidated statement of other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the year then
ended, notes comprising a summary of significant accounting policies and other explanatory information, and
the Directors’ declaration of the group comprising the company and the entity it controlled at the year’s end
or from time to time during the financial year.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ALTURA MINING LIMITED
Report on the Financial Report
We have audited the accompanying financial report of Altura Mining Limited (“the company”) and its
Controlled Entities (“the group”) which comprises the consolidated balance sheet as at 30 June 2016, the
consolidated statement of profit or loss, consolidated statement of other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the year then
ended, notes comprising a summary of significant accounting policies and other explanatory information, and
the Directors’ declaration of the group comprising the company and the entity it controlled at the year’s end
or from time to time during the financial year.
Directors’ Responsibility 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
is free from material misstatement, whether due to fraud or error. In Note 1, the Directors also state, in
accordance with Accounting Standard AASB 101: Presentation of Financial Statements that the financial
statements comply with International Financial Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit
in accordance with Australian Auditing Standards. Those standards require that we comply with relevant
ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable
assurance about whether the financial report is free from material misstatement.
Directors’ Responsibility 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
is free from material misstatement, whether due to fraud or error. In Note 1, the Directors also state, in
accordance with Accounting Standard AASB 101: Presentation of Financial Statements that the financial
statements comply with International Financial Reporting Standards.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the company’s preparation of the financial
report that gives a true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Directors, as well as evaluating the overall
presentation of the financial report.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit
in accordance with Australian Auditing Standards. Those standards require that we comply with relevant
ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable
assurance about whether the financial report is free from material misstatement.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the company’s preparation of the financial
report that gives a true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Directors, as well as evaluating the overall
presentation of the financial report.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act
2001.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act
2001.
76
ALTURA MINING LIMITED ANNUAL REPORT 2016
INDEPENDENT
AUDIT REPORT
CONTINUED
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS ALTURA MINING LIMITED
(continued)
Auditor’s Opinion
In our opinion:
a)
the financial report of Altura Mining Limited and its Controlled Entities is in accordance with the
Corporations Act 2001, including:
i.
ii.
giving a true and fair view of the group’s financial position as at 30 June 2016 and of their
performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations 2001;
and
b)
the financial report also complies with International Financial Reporting Standards as disclosed in
Note 1.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 8 to 12 of the Directors’ Report for the year
ended 30 June 2016. 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.
Opinion
In our opinion the Remuneration Report of Altura Mining Limited for the year ended 30 June 2016, complies
with section 300A of the Corporations Act 2001.
PKF HACKETTS AUDIT
Liam Murphy
Partner
Brisbane, 13 September 2016
77
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED
ADDITIONAL
ASX INFORMATION
SCHEDULE OF MINERAL PROPERTIES
Location
Tenement Number
Interest
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
10%
10%
10%
10%
331/3%
70%
70%
70%
56%
56%
100%
100%
100%
Pilbara, Western Australia
Tanami, Northern Territory
E 45/2277
E 45/2287
E 45/2363
E 45/3488
P 45/2758
M 45/1230
M 45/1231
L 45/392
L 45/400
L 45/401
L 45/404
L 45/409
ELA 26626
ELA 26627
EL 26628
EL 29828
Delta, East Kalimantan
PT Delta Ultima Coal
Tabalong, South Kalimantan
PT Suryaraya Permata Khatulistiwa
PT Suryaraya Cahaya Cemerlang
PT Suryaraya Pusaka
PT Kodio Multicom
PT Marangkayu Bara Makarti
Catanduanes, Philippines
COC 182 (Area 3) – Catanduanes
Albay Region, Philippines
COC 200 (Area 4) – Rapu-Rapu
Bislig Region, Philippines
COC 202 (Area 17) – Surigao del Sur
Key to tenement type:
E, EL: Exploration Licence
G: General Purpose Lease
L: Miscellaneous Licence
M, ML: Mining Lease
P: Prospecting Licence
78
ALTURA MINING LIMITED ANNUAL REPORT 2016 ADDITIONAL
ASX INFORMATION
CONTINUED
ISSUED CAPITAL
The issued capital of the company as at 30 September 2016 consists of 1,231,778,000 fully paid ordinary shares.
DISTRIBUTION OF SHAREHOLDERS AS AT 30 SEPTEMBER 2016
FULLY PAID ORDINARY SHARES
Number of holders: 6,026 Holders of less than a marketable parcel: 742
NUMBER OF HOLDERS IN THE FOLLOWING DISTRIBUTION CATEGORIES:
Fully paid ordinary shares
0–1,000
1,001–5,000
5,001–10,000
10,001–100,000
100,001 and over
Total
267
861
868
2,991
1,039
6,026
SUBSTANTIAL SHAREHOLDERS
The names of substantial shareholders as disclosed in substantial shareholder notices received by the Company are:
Holder name
AC Buckler (Shazo Holdings Pty Ltd)
MT Smith (Hartco Nominees Pty Ltd)
Shares
177,193,692
167,264,481
VOTING RIGHTS ON ORDINARY SHARES
On a show of hands, every person present who is a Shareholder or a proxy, attorney or Representative of
a Shareholder has one vote. On a poll, every person present who is a Shareholder or a proxy, attorney or
Representative of a Shareholder has one vote for each fully paid share held.
ON MARKET BUY BACK
There is no current on market buy back of Altura shares.
79
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED ADDITIONAL
ASX INFORMATION
CONTINUED
20 LARGEST SHAREHOLDERS – FULLY PAID SHARES
The names of the 20 largest shareholders as at 30 September 2016 are as follows:
Rank
Holder name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Shazo Holdings Pty Ltd
MT Smith
Hartco Nominees Pty Ltd
Farjoy Pty Ltd
Navibell Services Limited
PK & MA Mantell
Lionergy Limited
JS & ML Brown
BT Kuan
Rookharp Investments Pty Ltd
Lido Trading Limited
AC Buckler
E.M. Enterprises (Qld) Pty Ltd
Sand King Pty Ltd
HSBC Custody Nominees (Australia) Limited
Finn Air Holdings Pty Ltd
National Nominees Limited
NT Young
Citicorp Nominees Pty Ltd
N Young Investments Pty Ltd
Units % of issued shares
162,353,691
13.18%
84,021,645
83,242,836
48,784,288
34,892,128
32,363,083
27,191,358
22,428,914
20,800,000
20,460,552
14,845,679
14,840,001
13,400,000
12,000,000
11,800,899
11,272,034
10,123,094
9,200,000
8,607,926
7,974,411
6.82%
6.76%
3.96%
2.83%
2.63%
2.21%
1.82%
1.69%
1.66%
1.21%
1.20%
1.09%
0.97%
0.96%
0.92%
0.82%
0.75%
0.70%
0.65%
Total
650,602,539
52.82%
80
ALTURA MINING LIMITED ANNUAL REPORT 2016 MINERAL RESOURCES
AND ORE RESERVES STATEMENT
DELTA COAL
EAST KALIMANTAN,
INDONESIA
Updated coal reserves and
coal resources are currently
being prepared for the Delta
coal mine. These estimations
were not available at the time
that the annual report went to
print, but are expected to be
completed and published during
the December quarter 2016. A
comparison with the previous
year’s estimate is therefore not
currently able to be made.
TABALONG COAL
EAST KALIMANTAN,
INDONESIA
the entire Tabalong coal project.
The updated estimation was not
available at the time that the
annual report went to print, but
is expected to be completed and
published during the December
quarter 2016. A comparison with
the previous estimate is therefore
not currently able to be made.
PILGANGOORA LITHIUM
WESTERN AUSTRALIA
Mineral resource estimate
The previous mineral resource
estimate in the 2015 annual
report was released to the ASX
on 14 September 2015, and the
current estimate was reported on
22 September 2016.
A revised coal resource estimate
is currently being prepared for
The differences between the
current and previous resource
estimates are the result of further
exploration drilling conducted in
recent months, and the use of a
lower cut-off grade as prescribed
by the February 2016 Orelogy
Mining Study.
The previous estimate was
completed by Ravensgate Mining
Industry Consultants, and the
current estimate was prepared by
Hyland Geological and Mining
Consultants (HGMC).
Mr Stephen Hyland was the
designated Competent Person
for the previous Ravensgate
resource estimate and now
acts in the same capacity for
HGMC providing continuity
in the collation, modelling,
interpretation and reporting of
results.
Mineral resource estimate comparison
JORC resource
category
Measured
Indicated
Inferred
Total
Current estimate (0.4% Li2O cut-off grade)
Previous estimate (0.8% Li2O cut-off grade)
Tonnes (Mt)
-
30.56
8.60
39.16
Li2O (%)
-
Li2O (tonnes)
-
1.04
0.95
1.02
318,000
82,000
400,000
Tonnes (Mt)
-
19.77
6.29
26.06
Li2O (%)
-
Li2O (tonnes)
-
1.21
1.20
1.20
239,000
76,000
315,000
Ore reserve estimate
Ore reserve estimate
A maiden ore reserve estimate
was reported during the 2015/16
year, and as such, there is no
comparison to be made with the
previous annual report.
The ore reserve estimate was
prepared by Orelogy Consulting
Pty Ltd.
JORC resource
category
Current estimate (0.4% Li2O cut-off grade)
Tonnes (Mt)
Li2O (%)
Li2O (tonnes)
Proven
Probable
Total
-
20.33
20.33
-
1.06
1.06
-
215,000
215,000
81
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED MINERAL RESOURCES
AND ORE RESERVES
CONTINUED
SUMMARY OF GOVERNANCE ARRANGEMENTS AND INTERNAL CONTROLS
Altura has ensured that the Mineral Resource and Ore Reserve Estimates are subject to good governance
arrangements and internal controls. The Mineral Resources and Ore Reserves reported have been generated by
independent consultants who are experienced in modelling and estimation methods. The consultants have undertaken
reviews of the quality and the suitability of the data and information used to generate the resource estimations.
Altura carries out regular reviews of its own internal practices and those of external contractors who are
engaged in a range of specialist areas by the Company.
The Mineral Resources and Ore Reserves for Pilgangoora have been compiled and reported in accordance with
the “Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code)
2012 Edition.
COMPETENT PERSONS STATEMENTS
The information in this Mineral Resources and Ore Reserves (MROR) statement is based on, and fairly
represents, information and supporting documentation prepared by the competent persons listed below.
The MROR statement for Pilgangoora Lithium has been prepared and approved by Mr Bryan Bourke, Altura’s
Exploration Manager.
PILGANGOORA LITHIUM
The information in this report that relates to the Mineral Resource for the Pilgangoora lithium deposit is based
on information compiled by Mr Stephen Hyland and Mr Bryan Bourke. Mr Hyland is a Fellow of the Australasian
Institute of Mining and Metallurgy and Mr Bourke is a Member of the Australian Institute of Geoscientists. Mr
Hyland is a principal consultant at Hyland Geological and Mining Consultants and has sufficient experience that
is relevant to the style of mineralisation under consideration and to the activity of mineral resource estimation
to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves. Mr Bourke is the Exploration Manager of Altura Mining
Limited and has had sufficient experience that is relevant to the style of mineralisation and to the type of deposit
under consideration to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hyland and Mr Bourke consent to the
inclusion in the report of the matters based on this information in the form and context in which it appears.
The information in this report that relates to the Ore Reserve for the Pilgangoora lithium deposit is based
on information compiled by Mr Jake Fitzsimons. Mr Fitzsimons is a Member of the Australasian Institute of
Mining and Metallurgy. Mr Fitzsimons is a principal consultant at Orelogy Consulting Pty Ltd and has sufficient
experience that is relevant to the style of mineralisation under consideration and to the activity of ore reserve
estimation to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Fitzsimons consents to the inclusion
in the report of the matters based on this information in the form and context in which it appears.
The Company confirms that it is not aware of any new information or data that materially affects the information
included in the ASX announcement on 22 September 2016. Further, all material assumptions and technical
parameters underpinning the mineral resource and ore reserve estimates in that announcement continue to
apply and have not materially changed.
82
ALTURA MINING LIMITED ANNUAL REPORT 2016 NOTES
83
ALTURA MINING LIMITED ANNUAL REPORT 2016 ANNUAL REPORT 2016 ALTURA MINING LIMITED 84
ALTURA MINING LIMITED ANNUAL REPORT 2016 ALTURA MINING LIMITED ANNUAL REPORT 2016 alturamining.com