ANNUAL REPORT 2017
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
Zhao Tong – Non-Executive Director
COMPANY SECRETARY
Damon Cox
REGISTERED OFFICE
Level 2, 23 Barrack Street
Perth WA 6000
Telephone: +61 8 9488 5100
Facsimile: +61 8 9488 5199
Email: cosec@alturamining.com
Website: www.alturamining.com
AUDITORS
PKF Hacketts Audit
Level 6, 10 Eagle Street
Brisbane QLD 4000
SHARE REGISTRY
Link Market Services Limited
Level 12, QV1 Building
250 St George’s Terrace
Perth WA 6000
AUSTRALIAN SECURITIES
EXCHANGE
Code: AJM
CONTENTS
A letter from the Managing Director
Review of operations
FINANCIAL REPORT
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
13
14
27
28
29
30
31
32
33
76
77
83
86
A LETTER FROM THE
MANAGING DIRECTOR
Dear Shareholder,
I am pleased to report that the past year has been one of rapid and positive progress as your
Company moves towards becoming Australia’s next lithium producer.
Since our last annual report, Altura’s primary focus has been the efficient and aggressive
development of our flagship Pilgangoora Lithium Project.
With the help of an exceptional management team we have taken this project in the space of
12 months from pre-definitive feasibility stage to being just months away from first production.
In that timeframe we have completed a definitive feasibility study, obtained all the necessary
approvals, locked in binding offtake agreements for more than 90% of planned production from
leading Chinese battery and lithium players and secured US$110 million in project debt facilities to
underpin the construction of Pilgangoora.
Today, we have 90% of plant and equipment on site, construction has rapidly accelerated and we
remain on target for commissioning to begin in the March quarter 2018, and first lithium concentrate
sales to take place in the June Quarter 2018.
It is a testament to both the management of Altura and the Pilgangoora project team that it has taken
less than 18 months from the ground-breaking of the project to expected first production. I would
encourage shareholders to look at some of our recent construction update announcements and our
website to witness the transformation that has been made.
The importance of this hard work and aggressive schedule is amplified as we continue to see on a
day-to-day basis the increasing demand and communications around the lithium market. A few years
ago lithium was little-known outside of the industry. Now, electric vehicles, battery storage and uses
of lithium are regular conversation points among the general public, political leaders and in the
mainstream media.
3
Since our last annual report,
Altura’s primary focus has been
the efficient and aggressive
development of our flagship
Pilgangoora Lithium Project
We firmly believe Altura is in a very strong position to take advantage of this demand and to cement
itself as a major Australian lithium producer.
We continue to have a strong eye to the future and subsequent to the end of the 2017 Financial Year
we were able to embark on a very successful A$26 million capital raising, largely to fund our studies
on a Stage 2 expansion to double production to meet the ongoing demand of our offtake partners.
Our success to date could not have occurred without the valuable support of our shareholders. The
ongoing support shown to the Company has enabled us to both significantly grow and de-risk the
business whilst also focusing on delivering shareholder value both in the present and future.
I would also like to thank the Board, Management and entire Altura team for their ongoing
commitment and hard work.
Your Board will continue to ensure that the Company remains focused on growing the business and
developing the project to ensure that Altura becomes the next major Australian producer of lithium.
We are embarking on a transformational year and I look forward to continuing this journey with you.
James Brown
Managing Director
ALTURA ANNUAL REPORT 2017 REVIEW OF
OPERATIONS
ALTURA LITHIUM
PROJECT
5
Altura Mining Limited is pleased
to provide its annual Review
of Operations for the 2017
Financial Year.
Altura is building a leading position
in the independent supply of lithium
raw materials, as its world class
Pilgangoora project is set to be the
next significant producer of lithium
concentrate with commissioning
of the project expected in March
quarter 2018, and first sales in
June quarter 2018.
Management of Altura have
a track record of delivering
mining projects in an effective
and efficient time-frame, with
Pilgangoora taking less than 18
months from ground-breaking
to expected first production,
delivering strong and robust
offtake partners and a market
providing substantial growth
opportunities to ensure positive
shareholder returns.
PROJECT OVERVIEW
The Pilgangoora Lithium Project
is located in the Pilbara region of
Western Australia. The Project is
developing 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 in the first
half of 2018.
Pilgangoora will be extracted by
open pit methods enhanced by the
shallow and thick mineralisation.
This meant that spodumene ore
was mined from the beginning of
operations in May 2017.
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 map on
page 6) and road access to the site is
via the Great Northern Highway and
then Shire roads and station tracks.
Altura’s two mining lease
tenements are M45/1230 and
M45/1231, and cover a total area of
394 hectares.
PROJECT DEVELOPMENT
The Altura Lithium Project has
developed at a rapid pace over
the past year with construction
at the mine site expected to be
completed in the March quarter
2018, with first sales from
operations expected in June
quarter 2018.
The project’s rapid development
is attributable to the rigorous
planning of the various
components required for the
construction of a mine.
EARLY PROCUREMENT OF LONG
LEAD MECHANICAL ITEMS
Altura’s project and procurement
teams identified early in the design
process the requirement to place
orders early for key mechanical
items with long lead manufacturing
and shipment times.
This involved advancing over 40
key tenders in the second half
of 2016 and the first half of 2017
which has led to 90% of the plant
and equipment being currently at
site ready for installation.
All remaining equipment for the
process plant is expected to be
onsite by the end of 2017.
At the time of going to print, the
current status of the Project is:
MINING CONTRACT AND
MINE INFRASTRUCTURE
• Almost 50% of the construction
has been completed
• 90% of the plant and equipment
has been delivered to the mine
site ready for installation
• All mining infrastructure
projects have been completed
and commissioned including
the magazines and bulk
explosive storage facility, the
mobile equipment workshops
and all haul roads
• Mining development work has
progressed ahead of schedule
with three separate stages of
mining opened and producing
ore, and the ROM pad and
ROM wall are both nearing
completion.
Altura announced in February 2017
that it had awarded NRW Holdings
Limited a five-year contract to
perform mining, drilling and blasting
services, as well as construction
of mining infrastructure prior to
mining commencing.
The scope of the work for the
contract comprises:
• Construction of the mining
infrastructure required for the
works, including the Tailings
Storage Facility (TSF) and Run
of Mine (ROM) Area
• Development of mine haul roads
• Drill and blast services
• Load and haul production,
mining of ore and overburden
ALTURA ANNUAL REPORT 2017 6
ALTURA LITHIUM
PROJECT continued
Initial mining and stockpiling of
ore has now been completed, with
50,000 tonnes ready for transfer to
the ROM Area.
the concrete batch plant.
The works are now 75% complete,
and are expected to finish in
November 2017.
construction, and is installing
approximately 6,000m3 of concrete
as part of the civil works contract.
In total, approximately 800,000
BCM (banked cubic metres) of total
material has been moved to date.
PROCESS PLANT
CONSTRUCTION CONTRACT
A vertical construction package
was let to Australian based Civmec
Limited (Civmec) for the civil, SMP
and electrical construction.
The civil works commenced in
May 2017 with the mobilisation to
site of the first crews, along with
The SMP works started in
September 2017. Progress to date
includes the erection of steel and
conveyors in the crushing circuit,
and commencement on the High
Pressure Grinding Roll.
The electrical switchrooms are
currently being transported to
site, and the electrical works
are expected to start in
November 2017.
Civmec has around 100 employees
on the ground at the peak of
TRANSPORT AND
LOGISTICS CONTRACT
Qube has been awarded the
contract to provide transport
logistics services for a five-year
period.
The scope of the work under
the contract involves loading
the product at the mine site,
and transporting the product in
side tipping road trains to Port
Hedland.
ALTURA ANNUAL REPORT 2017 ALTURA LITHIUM
PROJECT continued
7
The Company
released a Definitive
Feasibility Study in
September 2016
which confirmed
the viability of
the Pilgangoora
Lithium Project
as a significant,
long-term mining
opportunity
Qube will also construct and
operate a product storage shed
in Port Hedland, and transport to
the port and ship loading using the
patented RotaboxTM system.
POWER GENERATION CONTRACT
A contract to provide an 11MW
diesel fuelled power station on a
Build Own Operate (BOO) basis
was awarded to Kalgoorlie Power
Systems (KPS), a wholly owned
subsidiary of Pacific Energy
Limited.
The power station will become
operational in February 2018 and
will be owned and operated by KPS
for a five-year contract period.
The power station will comprise
of dual fuel diesel/gas generators
so that opportunities for cleaner
and more cost-efficient gas can
be utilised in the future should a
suitable source become available.
MINE SITE ACCOMMODATION
Altura reached agreement with
Roy Hill Infrastructure Pty Ltd in
November 2016 to purchase an
existing 324 room camp (former
Rail Camp 2) located just 20 km
from the mine site.
The necessary approvals, including
native title agreement with the
traditional owners, were then
obtained to effect the final transfer
of ownership of the camp in
January 2017.
The camp has been operating
since February 2017, and has
provided accommodation for its
own staff, mine site contractors
and to other companies conducting
exploration activities in the area.
DEFINITIVE
FEASIBILITY STUDY
The Company released a Definitive
Feasibility Study (DFS) in
September 2016 which confirmed
the viability of the Pilgangoora
Lithium Project as a significant,
long-term mining opportunity.
The key outcomes of the DFS were:
• Project net present value (NPV)
of $411 million over an initial
13-year mine life
• Capital estimate of
A$139.7 million including
deferred capital and a payback
period of 1.8 years;
• LOM cash cost of A$316
per tonne of spodumene
concentrate
• Average annual ore feed of
1.54 Mt and average annual
production of 219,000 tonnes of
spodumene concentrate at 6%
Li2O
• An Ore Reserve estimate of
20.33 Mt @ 1.07% Li2O (entirely
in the Probable category) which
underpinned the initial 13-year
mine plan
• Attractive LOM strip ratio of
2.9:1 (waste to ore) providing a
comparatively low operational
mining cost.
For further information on the
DFS, please refer to the ASX
Release on 26 September 2016.
Since the release of the DFS there
have been two upgrades to the Ore
Reserve estimates (announced in
January 2017 and October 2017)
which have increased the life of
the mine and further improved the
economics of the project.
ALTURA ANNUAL REPORT 2017 8
ALTURA LITHIUM
PROJECT continued
Definitive Feasibility Study – key results
Description
Average Annual Ore Feed to Plant (LOM)1
Total Ore Mined
Annual Spodumene Concentrate Production (6% Li2O)
Life of Mine (LOM)
Total Spodumene Concentrate Produced
LOM Strip Ratio
Spodumene Concentrate Average Market Price2
Capital Cost Estimate3
Total Revenue
Project EBITDA4
Total Cash Cost FOB/tonne product5
Net Present Value (NPV)6
Internal Rate of Return (IRR)
Discount Rate
Project payback period
Exchange Rate
Units
Mtpa
Mt
tonnes
years
Mt
waste:ore
US$/wmt
A$M
A$M
A$M
A$
A$M
%
%
years
AUD:USD
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
0.7500
1. Average annual ore feed based on 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 are defined as all cash costs to free on board, excluding royalties, interest, tax and depreciation.
6.
Including sustaining capital and pre-development capital.
ALTURA ANNUAL REPORT 2017 9
Ore reserve estimate – October 2017
JORC
category
Proven
Probable
Total
Cut-off
Li2O
%
Ore
(million
tonnes)
0.43%
0.43%
0.43%
8.1
26.1
34.2
Li2O
(%)
1.14
1.01
1.04
Fe2O3
(%)
2.16
2.16
2.16
Contained
Li2O
(tonnes)
92,000
265,000
357,000
Mineral Resource Estimate – October 2017
JORC
category
Measured
Indicated
Total
Inferred
Cut-off
Li2O
%
Ore
(million
tonnes)
0.43%
0.43%
0.43%
0.43%
8.5
35.5
44.0
3.5
Li2O
(%)
1.12
0.97
1.00
0.98
Fe2O3
(%)
2.16
1.98
2.01
2.15
Contained
Li2O
(tonnes)
96,000
345,000
441,000
-
For further information on both the ore reserve and mineral resource
estimates, please refer to the ASX announcement on 24 October 2017.
ALTURA LITHIUM
PROJECT continued
UPGRADED ORE
RESERVE AND MINERAL
RESOURCE ESTIMATES
The Pilgangoora lithium deposit
currently has:
• an Ore Reserve estimate of
34.2 million tonnes at 1.04%
Li2O (with 357,000 tonnes of
contained Li2O); and
• a Mineral Resource estimate
of 44.0 million tonnes at
1.00% (with 441,000 tonnes of
contained Li2O).
This upgraded estimate was
calculated after further closely
spaced infill drilling conducted
during the year, and now includes
for the first time a significant
portion in the Proved and
Measured categories.
These improved numbers
have enhanced the Company’s
knowledge of the orebody and
reduced the risks commonly
associated with grade control for
start-up projects.
The Ore Reserve and Mineral
Resource estimation work was
undertaken by geological and mine
engineering services consultants,
Cube Consulting Pty Ltd.
ALTURA ANNUAL REPORT 2017 10
ALTURA LITHIUM
PROJECT continued
Mining will be
undertaken by
conventional bulk
mining methods,
utilising hydraulic
excavators, dump
trucks and drill and
blast, coupled to
a ROM stockpile
on the ROM stockpile adjacent
to the pit. Process plant and site
facilities are 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
to underpin its strategy to become
Australia’s next producing lithium
mine. These include:
• Completion of all statutory
approvals, having obtained
landowner agreements,
granting of the mining leases,
the Mining Proposal, the
Mine Closure Plan and Works
Approval
• Two binding offtake
agreements each for a
minimum of 100,000 tpa of
lithium spodumene concentrate
for an initial 5-year period
• 90% of plant and equipment
is on site and construction is
progressing extremely well
• Mining development work has
progressed ahead of schedule,
with three stages of mining
opened and producing ore
• The construction of the project
is around 50% complete
• All key contracts are in place
and in operation.
STATUTORY APPROVALS
In February 2017 Altura obtained
approval of the Mining Proposal
from the WA Department of Mines
and Petroleum (DMP) for its two
mining leases (M45/1230 and
M45/1231). The receipt of this
final major approval paved the
way for construction to commence
at the mine site in March 2017.
The Mining Proposal covers the
proposed mining operations,
processing and power plants, mine
site infrastructure, environmental
assessments, hydrogeology studies
and the mine rehabilitation plan.
The Mining Proposal had been
lodged in September 2016 following
granting by the DMP of the mining
leases the previous month. Prior
to the granting of the mining
leases, Altura had concluded
access agreements with native title
parties and landowners. Altura
also received a Works Approval in
July 2017 from the WA Department
of Water and Environmental
Regulation covering the process
plant, the TSF and the mobile
crushing and screening facility.
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 is being mined from a single
pit located on the eastern side of
the mining lease and stockpiled
ALTURA ANNUAL REPORT 2017 11
The major
corporate focus of
Altura’s executive
management during
the past 12 months
was the successful
completion of a
funding package
for the construction
and commissioning
of the Altura
Lithium Project
CORPORATE
DEVELOPMENTS
Key corporate developments
during the year included:
PROJECT FUNDING
US$110 MILLION DEBT FACILITY
The major corporate focus of
Altura’s executive management
during the past 12 months was the
successful completion of a funding
package for the construction
and commissioning of the Altura
Lithium Project.
The completion of the funding
package was the final prerequisite
to enable the Company to complete
construction and commissioning
of the mine and to move into
production in the first half of
calendar 2018.
The key details of the facility are:
• Senior secured loan notes
issued raising a total of
US$110 million
• Leading US and Swiss based
investment management
groups provided the loan note
facility package
• Funding comprised two
tranches with Tranche 1
(approximately US$33 million)
received in early August 2017
and Tranche 2 (US$77 million)
received in late September 2017
SHARE PLACEMENT
WITH J&R OPTIMUM
As part of the strategic
agreement with Shaanxi J&R
Optimum Energy Co., Ltd (J&R
Optimum), a A$41.6 million Share
Placement was finalised in early
February 2017.
At the conclusion of the
Placement, J&R Optimum held a
19.85% shareholding in Altura.
PLACEMENT WITH INTERNATIONAL
FUND MANAGERS
A further direct placement of
$26 million to international
institutional investors via Jett
Capital Advisors and Bizzell Capital
Partners Pty Ltd was successfully
completed in October 2017.
STRATEGIC PARTNERSHIP
WITH J&R OPTIMUM
Altura formed a strategic
partnership in November 2016
with J&R Optimum, one of China’s
leading lithium battery producers.
The Subscription and
Cooperation Agreement with J&R
Optimum provided for partial
funding of the project through a
A$41.6 million Placement, board
representation, advisory support
and anti-dilution rights.
Under the terms of the Agreement
J&R Optimum is entitled to appoint
a director to the Altura board, on
the condition that their relevant
interest in Altura shares does not
reduce below 15 per cent. Mr Zhao
Tong was subsequently appointed
as a non-executive director in
March 2017.
OFFTAKE AGREEMENTS
In July 2017 Altura announced that
it had signed two binding offtake
agreements (BOA) for a minimum
total of 200,000 tonnes of 6%
grade spodumene concentrate
per year representing more than
90% of current planned annual
production.
ALTURA ANNUAL REPORT 2017 12
CORPORATE
DEVELOPMENTS continued
Altura Mining
Limited has been
added to the list
of companies that
comprise the ASX
All Ordinaries
Index, which places
Altura in the top
500 companies
listed on the ASX
ASX ALL ORDINARIES
INDEX
Effective from 20 March 2017,
Altura Mining Limited was added
to the list of companies that
comprise the ASX All Ordinaries
Index.
This change places Altura in the
top 500 companies listed on the
ASX, and reflected the Company’s
growing market capitalisation.
INDONESIAN
COAL ASSETS
Altura has previously decided to
divest the Indonesian coal assets,
and has been pursuing several
options including their possible
sale or an asset integration with
other similar operations.
These coal 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”).
These BOAs comprised:
• A new agreement signed
with leading Chinese battery
producer J&R Optimum
• A revised agreement with
prominent Chinese based
lithium and battery materials
processor Lionergy Limited
(“Lionergy”) so that the terms
of both BOAs are aligned.
The key terms of the BOAs are:
• Minimum of 100,000 dry metric
tonnes (dmt) per annum of 6%
grade spodumene concentrate
(pro-rated) with first product
sales to commence before
30 June 2018
• Term of BOA of 5 years
minimum
• Conditional on Altura obtaining
financing for the development
of the project on or before
31 August 2017 (or such later
date as may be notified by
Altura to J&R Optimum Energy)
• Minimum price of US$550 dmt
(FOB) and a maximum price of
US$950 dmt (FOB) for the first
three years of the BOA (based
on Li20 content per dmt on
6% Li20)
• Annual pricing to be agreed via
consideration of current market
pricing information, including
but not limited to indices for
spodumene (if available); prices
published or announced by
other companies and movement
in lithium carbonate prices,
subject to the floor and ceiling
price for first three years.
ALTURA ANNUAL REPORT 2017 13
FINANCIAL
REPORT
ALTURA ANNUAL REPORT 2017 Altura Mining Limited and Controlled Entities
14
DIRECTORS'
REPORT
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017
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 2017.
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
Mr Zhao Tong (appointed 7 March 2017)
COMPANY SECRETARIES
The names of the secretaries in office during the financial year and up to the date of this report are as follows:
Mr Damon Cox
Mr Noel Young (resigned 30 June 2017)
PRINCIPAL ACTIVITIES
The principal activity of the Group during the year was the continued development of its 100% owned Pilgangoora Lithium Project in
the Pilbara region of Western Australia, including completion of the definitive feasibility study, delineation of an economic lithium
reserve, sourcing of the final finance required for construction and commissioning of the project, and commencement of construction
of the mine.
OPERATING AND FINANCIAL REVIEW
Overview
Altura Mining Limited is an ASX listed entity that is focused on the development and commencement of operations of the Pilgangoora
Lithium Project in Western Australia. The Company also has interests in the Delta Coal project in Indonesia, and the Tabalong Coal
project both of which are in the process of being divested.
Operating results
The Group’s operating loss after providing for income tax and non‐controlling interests for the year ended 30 June 2017 was
$6,165,006 (2016: loss $31,618,000). The loss in 2017 related to the Group’s administrative and corporate costs, and a foreign
exchange loss in the year. Exploration, evaluation and development costs of the Pilgangoora Lithium Project were capitalised during
both the 2017 and 2016 financial years.
The 2017 loss was considerably less than the 2016 loss as there were significant impairment costs incurred and non‐lithium related
exploration costs that were written off in the 2016 year.
Strategy
The Company’s objective is to create shareholder value through the development of profitable mining operations and other
supplementary mining activities that deliver strong cash flows for the Group, and resultant regular dividends for shareholders.
Altura is focused on construction, commissioning and then commencement of production and sales of spodumene from its lithium
project. All regulatory approvals have been received and the Company is now fully funded into production and first sales which is
planned to occur during the first half of calendar 2018.
The Company also holds coal assets in Indonesia which it is in the process of divesting as soon as reasonably possible.
2
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)
15
DIRECTORS'
REPORT continued
Pilgangoora Lithium
Altura completed its Definitive Feasibility Study (DFS) on the project in September 2016, and commenced onsite construction work
at the mine site in March 2017. The DFS confirmed the very robust nature of the World‐class low cost lithium project, which has
been further enhanced in 2017 due to stronger market pricing for spodumene as a result of a very tight market for the product.
The project is fully funded following completion of a US$110 million finance package in July 2017.
The key outcomes of the DFS included:
Annual spodumene concentrate production of 219,000 tonnes over a 13.2 year mine life;
Project Net Present Value (NPV) of $411 million pre‐tax and an Internal Rate of Return of 58.1%;
Life of Mine (LOM) cash cost of A$315.90 per tonne of spodumene concentrate;
Gross margin of A$402 per tonne (life of mine average) based on a market price at the time of US$538.80;
Average life of mine EBITDA of A$80.6 million;
A capital estimate of A$139.7 million including deferred capital;
A very attractive LOM strip ratio of 2.9:1; and
A payback period of 1.8 years.
Since the completion of the DFS, higher prices in the market place for 6% spodumene concentrate would result in annual EBITDA’s
of A$156 million to A$183 million, with the higher end pricing returning EBITDAs of more than double those quoted in the DFS. In
January 2017, Altura announced an increased Reserve of 30.1 million tonnes which extends the life of the mine to 20 years (as
compared with 13 years in the DFS).
Based on the current construction progress, the mine will be in a commissioning phase from late 2017 with first production and
shipments due in the first half of calendar 2018. Altura has entered into a number of important contracts with key suppliers:
1. A 5‐year mining contract has been signed with NRW. The deposit will be mined by conventional bulk mining methods
utilising hydraulic excavators, dump trucks and drill and blast coupled to a ROM stockpile.
2. A process plant civil and concrete construction contract has been awarded to Civmec, with some 5,000m3 of concrete
required for the project;
3. The logistics and transport supplier is Qube Holdings Pty Ltd. The scope includes loading of the product at the mine
stockyard, transporting the product in side tipping road trains to Port Hedland, construction and operation of a product
storage shed at Port Hedland, and transport to the port and ship loading using the patented RotaboxTM system;
4. Kalgoorlie Power Systems has been contracted to provide an 11MW diesel fuelled power station for a 5‐year period. The
power station comprises dual fuel diesel and gas generators such that opportunities for cleaner and more cost‐efficient gas
may be utilised in the future should a suitable source be available.
The Company has in place two Binding Offtake Agreements (BOAs) with China based groups Shaanxi J&R Optimum Energy Co Ltd and
Lionergy Limited, in which the parties will each take a minimum of 100,000 tonnes of 6% Li2O grade spodumene concentrate annually
for an initial 5 year period. Annual pricing will be agreed with reference to current market pricing information, including but not
limited to prices published or announced by other companies in the market, movement in carbonate pricing and with reference to
any indices that may become available in the future. For the first 3 years of the BOAs, there is a floor price of US$550 per tonne of
6% spodumene, and there is also a ceiling price of US$950 per tonne for the same period, the floor price being very important from
the Company’s perspective to ensure that it can repay its loan on the project in the next 3 years.
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 2016/17 financial year the mine was placed under Indonesian
court administration to resolve the claims of production contractors. There is no fixed period for the administration and during this
process the Group does not have access the any operational or financial information.
It is the stated intention of the Company that the coal asset will be divested as soon as possible.
3
ALTURA ANNUAL REPORT 2017
16
DIRECTORS'
REPORT continued
Tabalong Coal
Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)
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 increased in 2017, with non‐current assets significantly higher due to the completion of the
lithium project DFS and the commencement of the construction phase of the Lithium Project. Funds were sourced from a $41.6
million placement to Shaanxi J&R Optimum Energy Co Ltd during the year.
Risk
Development of Altura’s lithium project is subject to the ability of the Company and its advisors to successfully complete construction
of the lithium project, and to successfully commission the project into production in a timely manner.
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 2017 (2016: 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
Subsequent to the end of the financial year, Altura completed a project funding package for construction and commissioning of the
Pilgangoora Lithium Project in the Pilbara region of Western Australia (see ASX release on 28 July 2017). Completion of the funding
package was the final prerequisite to enable the Company to complete construction and commissioning of the mine and to move
into production in the first half of calendar 2018.
The key details of the facility are:
Senior secured loan notes issued to raise a total of US$110 million
Leading US and Swiss based investment management groups to provide the loan note facility package
Funding to be provided in two (2) tranches with Tranche 1 (approximately US$33 million before costs) settlement occurring
on 4 August 2017 and Tranche 2 (US$77 million before costs) scheduled to settle by 21 September 2017
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
The Group will focus on completing the construction of the Pilgangoora Lithium Project and commencement commercial operations
as soon as possible. The Group intends to divest is interests in the coal projects as soon as practical 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.
4
ALTURA ANNUAL REPORT 2017
DIRECTORS'
REPORT continued
Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)
17
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
27,518,301 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. He has previously arranged finance for mining and infrastructure projects both in
Australia and Indonesia and has set up corporate, administrative and financial systems to support new and expanding
mining operations. He was appointed a director on 25 May 2009.
Other current directorships in listed entities
None
Former directorships in last 3 years
None
Special responsibilities
Chief Financial Officer
Interests in shares and options
33,003,084 ordinary shares in Altura Mining Limited
5
ALTURA ANNUAL REPORT 2017
18
DIRECTORS'
REPORT continued
Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017 (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 45 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. He is a former Director
and Chief Operations Officer of New Hope Corporation. 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
177,293,692 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 35 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
14,433,336 ordinary shares in Altura Mining Limited
6
ALTURA ANNUAL REPORT 2017
DIRECTORS'
REPORT continued
Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)
19
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
20,900,000 ordinary shares in Altura Mining Limited
Mr Zhao Tong (Non‐Executive Director)
Qualifications
Bachelor of Science (Peking University, China)
Experience
Mr Zhao Tong has over 25 years’ experience in the international trade of metals and minerals, and has worked for China
Shaanxi Metals and Minerals International Trade Co. Ltd. Mr Tong has been the Director of the Lithium Division of J&R
Optimum since October 2016. He was appointed a Director in March 2017.
Other current directorships in listed entities
None
Former directorships in last 3 years
None
Special responsibilities
Nil
Interests in shares and options
Nil
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.
7
ALTURA ANNUAL REPORT 2017
20
DIRECTORS'
REPORT continued
Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017 (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 24 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 performance rights and/or options
as an incentive. During the 2017 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 as disclosed in Note 24.
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
2017
1,600,959
(6,417,320)
(6,448,799)
(5,914,752)
‐
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)
‐
* Definitions:
EBITDA = Earnings before interest, tax, depreciation and amortisation
NPBT = Net profit before tax
NPAT = Net profit after tax & minority interest
8
ALTURA ANNUAL REPORT 2017
DIRECTORS'
REPORT continued
Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)
21
REMUNERATION REPORT (Audited) (continued)
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.
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 – 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 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 – 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. 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.
9
ALTURA ANNUAL REPORT 2017
22
DIRECTORS'
REPORT continued
Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)
REMUNERATION REPORT (Audited) (continued)
Key Management Personnel Remuneration
2017
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
Z Tong #
Sub total
non‐executive
directors
Executive
directors
J Brown
P Mantell
Other key
management
personnel
C Evans
N Young
D Cox
Total for key
management
personnel
compensation
Total
compensation
60,000
72,000
54,000
19,000
205,000
413,790
322,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
5,700
6,840
24,840
‐
3,885
3,885
3,885
‐
37,380
11,655
91,391
12,650
‐
28,025
38,852
19,425
220,000
35,000
‐
24,225
226,788
132,500
‐
‐
75,229
23,353
‐
12,587
3,213
7,770
7,770
1,315,078
35,000
202,623
64,837
77,030
1,520,078
35,000
202,623
102,217
88,685
# Mr Zhao Tong joined the Altura Board in March 2017
No termination payments or long service leave payments were made during the year
5.6%
4.7%
4.7%
‐
7.1%
5.1%
1.1%
2.5%
4.4%
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
69,585
82,725
82,725
19,000
254,035
544,033
382,100
282,438
309,787
176,210
1,694,568
1,948,603
10
ALTURA ANNUAL REPORT 2017
DIRECTORS'
REPORT continued
Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)
REMUNERATION REPORT (Audited) (continued)
23
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
Executive
directors
J Brown
P Mantell ^
Other key
management
personnel
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
6,624
22,690
38,160
352,800
509,274
94,913
3,312
‐
69,223
20,177
‐
47,700
88,200
577,036
14,012
‐
‐
129,158
18,147
3,810
11,875
9,540
9,540
9,540
16,500
235,213
‐
‐
288,310
166,592
187,625
47,844
76,320
104,700
1,396,309
194,249
70,534
114,480
457,500
1,905,583
3.8
3.6
3.9
20.1
8.3
‐
4.1
3.3
5.7
# Non‐executive director until 29 February 2016
^ Executive director from 1 March 2016
No termination payments or long service leave payments were made during the year.
11
ALTURA ANNUAL REPORT 2017
24
DIRECTORS'
REPORT continued
Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)
REMUNERATION REPORT (Audited) (continued)
The following shares were issued to directors and key management personnel on the vesting of performance rights during the year
ended 30 June 2017:
Number
issued
Issue
date
Value per share
at issue date
$
1,000,000
500,000
100,000
100,000
100,000
400,000
200,000
200,000
2,600,000
9/12/16
9/12/16
9/12/16
9/12/16
9/12/16
9/12/16
9/12/16
9/12/16
0.1415
0.1415
0.1415
0.1415
0.1415
0.1415
0.1415
0.1415
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 2017, and there are no options on issue as at 30 June 2017.
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, and another 1,350,000 were granted in the year ended 30 June 2017. 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 2017:
J Brown
P Mantell
A Buckler
D O’Neill
BT Kuan
C Evans
N Young
D Cox
Granted
number
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
12
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)
DIRECTORS'
REPORT continued
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)
25
REMUNERATION REPORT (Audited) (continued)
MEETINGS OF DIRECTORS
The following shares were issued to directors and key management personnel on the vesting of performance rights during the year
ended 30 June 2017:
Number
issued
Issue
date
Value per share
at issue date
1,000,000
500,000
100,000
100,000
100,000
400,000
200,000
200,000
2,600,000
9/12/16
9/12/16
9/12/16
9/12/16
9/12/16
9/12/16
9/12/16
9/12/16
$
0.1415
0.1415
0.1415
0.1415
0.1415
0.1415
0.1415
0.1415
J Brown
P Mantell
A Buckler
D O’Neill
BT Kuan
C Evans
N Young
D Cox
Options
Performance Rights
employees.
There were no new options issued to directors and key management personnel as part of their remuneration for the year ended 30
June 2017, and there are no options on issue as at 30 June 2017.
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, and another 1,350,000 were granted in the year ended 30 June 2017. 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 2017:
J Brown
P Mantell
A Buckler
D O’Neill
BT Kuan
C Evans
N Young
D Cox
Granted
number
500,000
100,000
100,000
100,000
400,000
200,000
200,000
Vesting
30 Nov
2017
500,000
100,000
100,000
100,000
400,000
200,000
200,000
2,600,000
2,600,000
End of Audited Remuneration Report
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 6 Directors’ meetings, 3 Audit & Risk Committee meetings and 3 Remuneration & Nomination Committee
meetings held.
Directors’ Meetings
Audit & Risk Committee
Number
eligible to
attend
6
6
6
6
6
2
Number
attended
6
6
5
6
6
2
Number
eligible to
attend
‐
‐
3
3
3
‐
Number
attended
‐
‐
2
3
3
‐
Remuneration & Nomination
Committee
Number
eligible to
attend
‐
‐
3
3
3
‐
Number
attended
‐
‐
2
3
3
‐
J Brown
P Mantell
A Buckler
D O’Neill
B Kuan
Z Tong
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.
In 2014 the Company established a new Long‐Term Incentive Plan (LTIP) to assist in the reward and retention of directors and
OPTIONS
At the date of signing this report, there were no unissued ordinary shares of Altura Mining Limited under option.
WARRANTS
Under the terms of the US$110 million debt facility announced on 28 July 2017, the lenders are to receive a total of 72,644,513
warrants. Since the Company does not currently have sufficient placement capacity under the ASX Listing Rules to immediately issue
the warrants, the approval of shareholders will need to be obtained at the Company’s annual general meeting in November 2017.
Following shareholder approval, the warrants will be issued.
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.
1,000,000
1,000,000
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
2017.
ROUNDING OF AMOUNTS
The company is of a kind referred to ASIC Legislative Instrument 2016/191, relating to the ‘rounding off’ of amounts in the directors’
report and financial report. Amounts in the directors’ report and financial report have been rounded off to the nearest thousand
dollars in accordance with the instrument.
12
13
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
26
DIRECTORS'
REPORT continued
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2017 (CONTINUED)
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration for the year ended 30 June 2017 has been received and is included on page 15 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
Perth, 20 September 2017
14
ALTURA ANNUAL REPORT 2017
27
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 2017, 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, 20 September 2017
15
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
28
CONSOLIDATED STATEMENT OF
PROFIT AND LOSS FOR THE YEAR ENDED 30 JUNE 2017
Consolidated Statement of Profit and Loss
FOR THE YEAR ENDED 30 JUNE 2017
Continuing operations
Revenue
Cost of sales
Operating profit / (loss)
Other income
Foreign exchange movement gain/(loss)
Sundry income
Expenses
Administration costs
Employee benefits expense
Exploration costs written off
Other expenses
Financing costs
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
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)
Note
5(a)
5(c)
5(b)
5(f)
15
5(d)
5(e)
17,26(c)
14
26(c)
7(a)
3
6
6
6
6
2017
$’000
1,271
(1,069)
202
(1,371)
331
(3,030)
(2,272)
‐
(167)
‐
(18)
‐
(124)
(6,449)
534
(5,915)
(250)
(6,165)
(6,127)
(38)
(6,165)
(0.44)
(0.44)
(0.45)
(0.45)
2016
$’000
1,350
(2,112)
(762)
1,006
135
(3,837)
(2,668)
(3,895)
(51)
(277)
(18,480)
(261)
(1,513)
(30,603)
(778)
(31,381)
(237)
(31,618)
(31,499)
(119)
(31,618)
(3.48)
(3.48)
(3.50)
(3.50)
The above Consolidated Statement of Profit and Loss should be read in conjunction with the accompanying Notes.
16
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
Consolidated Statement of Profit and Loss
FOR THE YEAR ENDED 30 JUNE 2017
Altura Mining Limited and Controlled Entities
CONSOLIDATED STATEMENT OF
Consolidated Statement of Other Comprehensive Income
OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017
FOR THE YEAR ENDED 30 JUNE 2017
29
Profit / (loss) for the year
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
Note
2017
$’000
2016
$’000
(6,165)
(31,618)
(509)
1,438
929
(5,236)
(5,221)
(15)
(5,236)
760
(409)
351
(31,267)
(31,132)
(135)
(31,267)
Impairment on equity accounted asset
Impairment of property, plant and equipment
Share of net profit / (loss) of equity accounted investee, net of tax
17,26(c)
14
26(c)
The above Consolidated Statement of Other Comprehensive Income should be read in conjunction with the accompanying Notes.
Foreign exchange movement gain/(loss)
Continuing operations
Revenue
Cost of sales
Operating profit / (loss)
Other income
Sundry income
Expenses
Administration costs
Employee benefits expense
Exploration costs written off
Other expenses
Financing costs
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)
7(a)
3
6
6
6
6
2017
$’000
1,271
(1,069)
202
(1,371)
331
(3,030)
(2,272)
‐
‐
‐
(167)
(18)
(124)
(6,449)
534
(5,915)
(250)
(6,165)
(6,127)
(38)
(6,165)
(0.44)
(0.44)
(0.45)
(0.45)
2016
$’000
1,350
(2,112)
(762)
1,006
135
(3,837)
(2,668)
(3,895)
(51)
(277)
(18,480)
(261)
(1,513)
(30,603)
(778)
(31,381)
(237)
(31,618)
(31,499)
(119)
(31,618)
(3.48)
(3.48)
(3.50)
(3.50)
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)
The above Consolidated Statement of Profit and Loss should be read in conjunction with the accompanying Notes.
16
17
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
30
CONSOLIDATED
BALANCE SHEET AS AT 30 JUNE 2017
AS AT 30 JUNE 2017
Consolidated Balance Sheet
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
Mine development at cost
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
Liabilities classified as held for sale
Total current liabilities
Non‐current liabilities
Borrowings
Provisions
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
3
9
13
14
15
16
17
21(c)
18
19
20
3
19
22
23
24
2017
$’000
13,271
3,336
52
1
272
333
8,820
26,085
‐
824
850
1,226
59,353
‐
‐
62,253
88,338
9,198
15,677
842
1,753
27,470
‐
3,918
3,918
31,388
56,950
146,556
595
(90,460)
56,691
259
56,950
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.
18
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
CONSOLIDATED STATEMENT OF
Consolidated Statement of Changes in Equity
CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017
FOR THE YEAR ENDED 30 JUNE 2017
31
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 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
Employee share schemes – value of employee
services
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
Balance as at 30 June 2016
105,840
(84,333)
233
803
(1,276)
274
21,541
Total comprehensive income for the year
‐
(6,127)
Transactions with owners in their capacity as
owners:
Issue of shares – employee bonus payment
Issue of shares – Share purchase plan
Contributions of equity, net of transaction
costs
Transfer from share based payment reserve
to equity
Employee share schemes – value of employee
services
Sub‐Total
70
773
39,640
233
‐
40,716
‐
‐
‐
‐
‐
‐
Balance as at 30 June 2017
146,556
(90,460)
‐
‐
‐
‐
(233)
162
(71)
162
(509)
1,415
(15)
(5,236)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
70
773
39,640
‐
162
40,645
294
139
259
56,950
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying Notes.
19
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
32
CONSOLIDATED STATEMENT OF
CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017
FOR THE YEAR ENDED 30 JUNE 2017
Consolidated Statement of Cash Flows
Note
29(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
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
29(a)
2017
$’000
1,473
(7,731)
62
319
‐
320
(5,557)
(8,566)
(35,019)
‐
4
(43,581)
40,309
‐
‐
40,309
(8,829)
22,132
5
13,308
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
Non cash investing and financing activities
Share based payments
Repayment of Directors and management loan facility by the issue of shares
24
(70)
‐
(546)
(360)
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying Notes.
20
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2017
33
This financial report includes the consolidated financial statements and notes of Altura Mining Limited (the ‘Company’) and controlled
entities (‘Consolidated Group’ or ‘Group’). Altura Mining Limited is a company limited by shares, incorporated and domiciled in
Australia, whose shares are publicly 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 20 September 2017 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)
Going concern principle of accounting
Notwithstanding the Group’s reporting of an operating loss after income tax of $5.9 million for the year, generating
negative cash flows from operations of $5.6 million and as at 30 June 2017 having a deficiency of net current assets
of $1.4 million, the financial statements have been prepared on a going concern basis as the Company’s directors
believe that the Group will be able to pay its debts as and when they fall due and payable.
This year’s current liabilities include liabilities of $1.8 million associated with the Tabalong group which have been
reclassified as current as the asset has now been classified as held for sale. Also included within current liabilities
this year are borrowings of $15.7 million (30 June 2016: non‐current $16.8 million) representing the amount owing
to the vendors of Evora Mining Inc. which will be repaid within the next 12 months.
Given the above, the Group’s ability to continue as a going concern is dependent on the sale of the Tabalong asset
to extinguish these liabilities, the forecast return to profitability and the ongoing support of shareholders. Directors
are confident that the Tabalong asset listed for sale will be sold within the next 12 months based on current interest
which has increased recently due to strengthening coal prices in the market. Directors are also confident that the
fully funded Pilgangoora Lithium project will be successfully completed and commissioned into production for Q1
2018, and is forecast to generate considerable cash flow sufficient to return the group to profitability and achieve
positive cash flows from operations.
The directors are confident that the sale of its coal assets and commencement of commercial production and sale
of lithium will address the deficiency in net current assets within 12 months. This together with the ongoing support
of lenders and shareholders will ensure the consolidated entity is a going concern and will be able to pay its debts
as and when they fall due and payable.
ii) 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.
21
ALTURA ANNUAL REPORT 2017
34
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ii) New accounting standards for application in future periods (continued)
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.
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.
iii)
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 2016.
iv) 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.
22
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
v)
Critical accounting estimates
35
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 and evaluation expenditure of $1.226 million as at 30 June 2016 (2016: $14.394
million). This amount is after a transfer to Mine development at cost of $15.459 million during the year for drilling and
analysis, feasibility study and employee remuneration costs for the lithium project and a reclassification exploration
expenditure to Assets held for sale of $6.092 million. Exploration and evaluation expenditure is 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.
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 2017 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 26 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.
23
ALTURA ANNUAL REPORT 2017
36
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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) 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.
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.
24
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
37
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
25
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
38
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
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.
26
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
39
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
f)
Segment reporting
h)
Exploration and evaluation expenditure
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.
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated
g)
Property, plant and equipment
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
from these assets.
Mine development
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
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.
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.
26
27
ALTURA ANNUAL REPORT 2017
40
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
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.
28
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
41
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.
29
ALTURA ANNUAL REPORT 2017
42
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
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).
30
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
43
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Contributions made by the Group to defined contribution superannuation funds are recognised as an expense in
d.
Rehabilitation
n)
Significant accounting estimates and judgements (continued)
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.
a.
Determination of coal resources and reserves
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
24. This formula takes into account the terms and conditions under which the instruments were granted.
h. Mines under construction
Expenditure is transferred from ’Exploration and evaluation assets’ to ’Mine Development’ which is a sub‐
category of ’Mine properties’ once the work completed to date supports the future development of the
property and such development receives appropriate approvals.
After transfer of the exploration and evaluation assets, all subsequent expenditure on the construction,
installation or completion of infrastructure facilities is capitalised in ’Mine Development’. Development
expenditure is net of proceeds from the sale of spodumene concentrate extracted during the development
phase to the extent that it is considered integral to the development of the mine. Any costs incurred in testing
the assets to determine if they are functioning as intended, are capitalised, net of any proceeds received from
selling any product produced while testing. Where these proceeds exceed the cost of testing, any excess is
recognised in the statement of profit or loss and other comprehensive income. After production starts, all
assets included in ‘mine development’ are then transferred to ’producing mines’ which is also a sub‐category
of ’mine properties’
30
31
iii)
Superannuation
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.
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).
ALTURA ANNUAL REPORT 2017
44
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
o) Non‐current assets (or disposal groups) held for sale and discontinued operations
Non‐current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured
at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets
arising from employee benefits, financial assets and investment property that are carried at fair value and contractual
rights under insurance contracts, which are specifically exempt from this requirement.
An impairment loss is recognised for any initial or subsequent write‐down of the asset (or disposal group) to fair value
less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal
group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously
recognised by the date of the sale of the non‐current asset (or disposal group) is recognised at the date of derecognition.
Non‐current assets (including those that are part of a disposal group) are not depreciated or amortised while they are
classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held
for sale continue to be recognised.
Non‐current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented
separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are
presented separately from other liabilities in the balance sheet
A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that
represents a separate major line of business or geographical area of operations, is part of a single co‐ordinated plan to
dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The
results of discontinued operations are presented separately in the statement of profit or loss.
p)
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.
q)
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.
32
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
45
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
o) Non‐current assets (or disposal groups) held for sale and discontinued operations
r)
Revenue
Non‐current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured
at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets
arising from employee benefits, financial assets and investment property that are carried at fair value and contractual
rights under insurance contracts, which are specifically exempt from this requirement.
An impairment loss is recognised for any initial or subsequent write‐down of the asset (or disposal group) to fair value
less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal
group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously
recognised by the date of the sale of the non‐current asset (or disposal group) is recognised at the date of derecognition.
Non‐current assets (including those that are part of a disposal group) are not depreciated or amortised while they are
classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held
for sale continue to be recognised.
Non‐current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented
separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are
presented separately from other liabilities in the balance sheet
A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that
represents a separate major line of business or geographical area of operations, is part of a single co‐ordinated plan to
dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The
results of discontinued operations are presented separately in the statement of profit or loss.
p)
Provisions
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.
q)
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.
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)
Royalty revenue
Royalties are recognised as revenue when the right to receive payment is established.
iii) Dividends
Dividends are recognised as revenue when the right to receive payment is established.
iv)
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.
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
v)
Services
Revenue from the rendering of a service is recognised upon the delivery of the service to the customer.
s)
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.
t)
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.
32
33
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
46
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
u)
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.
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.
v)
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.
w)
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.
x)
Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation
for the current financial year.
34
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
y)
Inventories
47
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.
z)
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.
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.
aa) 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.
35
ALTURA ANNUAL REPORT 2017
48
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
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
2017
$’000
13,271
3,336
‐
52
824
17,483
9,198
15,677
24,875
2016
$’000
22,132
1,126
2,482
50
1,333
27,123
2,072
18,437
20,509
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. Revenue is 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. In particular, on
commencement of sales from Altura Lithium, revenue from sales of spodumene will be received in US dollars.
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. In particular,
Altura Lithium’s loan for construction and commissioning of the mine is in US dollars (US$110 million), and therefore
repayment of the loan will be made in US dollars.
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 2017, the Group held funds in foreign currency amounting to US$366,000 (2016: US$205,000)
The Group does not currently enter into any hedging arrangements.
36
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
49
2.
FINANCIAL RISK MANAGEMENT (continued)
Foreign currency risk sensitivity analysis
At 30 June 2017, 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%
2017
$’000
(403)
403
(403)
403
2016
$’000
(2,761)
2,761
(2,761)
2,761
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%
2017
$’000
‐
‐
82
(82)
2016
$’000
‐
‐
133
(133)
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 2017, 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%
2017
$’000
100
(100)
100
(100)
2016
$’000
200
(200)
(200)
200
Term deposits have been treated as a floating rate due to the short term nature of the deposits.
37
ALTURA ANNUAL REPORT 2017
50
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
2.
FINANCIAL RISK MANAGEMENT (continued)
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.
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
2016
2017
%
%
Floating
interest rate
Within 1 year
Fixed interest rate maturing
1 to 5 years
Over 5 years
Non‐interest
bearing
Total
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
2017
$’000
2016
$’000
Consolidated Group
Financial assets:
Cash & cash
equivalents
Trade and other
receivables
Available for sale
investments
Receivables non‐
current
1.50
1.75 13,271 22,132
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Term deposit
1.70
2.65
Total financial
assets
Financial liabilities:
Trade & sundry
payables
Borrowings
Total financial
liabilities
13,271 22,132
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐ 13,271 22,132
3,336
1,126
3,336
1,126
824
1,333
824
1,333
‐
‐
2,482
‐
2,482
‐
52
50
4,160
4,941 17,483 27,123
‐
9,198
2,072
9,198
2,072
‐ 15,677 18,437 15,677 18,437
‐ 24,875 20,509 24,875 20,509
‐
‐
‐
‐
52
52
‐
‐
‐
‐
‐
‐
‐
50
50
‐
‐
‐
38
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
2.
FINANCIAL RISK MANAGEMENT (continued)
Trade and sundry payables are expected to be paid as follows:
Less than 6 months
More than 6 months
e)
Fair value measurements
i)
Fair value hierarchy
51
2017
$’000
9,198
‐
9,198
2016
$’000
2,072
‐
2,072
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 2017 and 30 June 2016.
2017
Assets
Listed investments
Total assets
2016
Assets
Listed investments
Total assets
ii)
Valuation techniques
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
824
824
1,333
1,333
‐
‐
‐
‐
‐
‐
‐
‐
824
824
1,333
1,333
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.
39
ALTURA ANNUAL REPORT 2017
52
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
3.
DISCONTINUED OPERATIONS
a)
Description
During the report period the board has made several information packages available to various groups for the purpose
of attracting offers for the sale of the Tabalong tenements in Kalimantan, Indonesia. Currently no formal offers have been
received. The board considers that the presentation of the Tabalong Group as held for sale confirms its intent to dispose
of these assets.
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 2017.
2017
$’000
2016
$’000
Revenue
Expenses
Loss before income tax
Income tax expense
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 classified as held for sale
The carrying amounts of assets and liabilities as at 30 June 2017 were:
Cash
Other receivables *
Property, plant and equipment
Exploration at cost
Total assets of disposal group held for sale
Other payables
Borrowings ^
Total liabilities of disposal group held for sale
‐
(237)
(237)
‐
(237)
(14)
(14)
‐
(250)
(250)
‐
(250)
(38)
(38)
38
2,685
5
6,092
8,820
204
1,549
1,753
^ These funds were advanced by the minority shareholder in the Tabalong coal project in accordance with the loan
agreement. The facility has no defined repayment term.
* 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.
40
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
3.
DISCONTINUED OPERATIONS
a)
Description
During the report period the board has made several information packages available to various groups for the purpose
of attracting offers for the sale of the Tabalong tenements in Kalimantan, Indonesia. Currently no formal offers have been
received. The board considers that the presentation of the Tabalong Group as held for sale confirms its intent to dispose
of these assets.
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 2017.
Revenue
Expenses
Loss before income tax
Income tax expense
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 classified as held for sale
The carrying amounts of assets and liabilities as at 30 June 2017 were:
Cash
Other receivables *
Property, plant and equipment
Exploration at cost
Total assets of disposal group held for sale
Other payables
Borrowings ^
Total liabilities of disposal group held for sale
2017
$’000
2016
$’000
‐
(237)
(237)
‐
(237)
(14)
(14)
(250)
(250)
‐
‐
(250)
(38)
(38)
38
2,685
5
6,092
8,820
204
1,549
1,753
^ These funds were advanced by the minority shareholder in the Tabalong coal project in accordance with the loan
agreement. The facility has no defined repayment term.
* 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.
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
4.
SEGMENT INFORMATION
53
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 lithium mining segment is currently under construction and
upon completion it will derive its revenue from the sale of lithium to customers. The exploration services segment provides a
range of drilling services to its customers, predominately mining and exploration companies. The mineral exploration segment
revenue comprises royalties received and 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.
Coal
mining
$’000
Lithium
mining
$’000
Exploration
services
$’000
Mineral
exploration
$’000
Eliminations
Total
$’000
$’000
2017
Revenue
External sales
Other income
Other segments
Total segment revenue
Unallocated revenue
Total consolidated revenue
Segment result
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)/benefit
Net profit / (loss) for the year
Assets and liabilities
Segment assets
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
Total liabilities
‐
‐
‐
‐
‐
‐
‐
‐
768
9
178
955
‐
825
‐
825
‐
‐
(178)
(178)
(142)
‐
(1,123)
(5,184)
‐
‐
59,353
1,461
18,704
15,677
11,965
1,175
818
768
834
‐
1,602
‐
1,602
(6,449)
‐
‐
(6,449)
‐
(250)
(6,699)
534
(6,165)
79,518
8,820
88,338
29,635
1,753
31,388
48,189
855
335
‐
‐
‐
‐
‐
Other segment information
Capital expenditure
Exploration expenditure
Depreciation and amortisation
‐
‐
‐
47,529
‐
‐
190
‐
240
470
855
95
40
41
ALTURA ANNUAL REPORT 2017
54
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
4.
SEGMENT INFORMATION (continued)
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
(19,993)
(2,541)
(7,792)
‐
(30,326)
‐
2016
Revenue
External sales
Other income
Other segments
Total segment revenue
Unallocated revenue
Total consolidated revenue
Segment result
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)/benefit
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
42
‐
(30,326)
(277)
(237)
(30,840)
(778)
(31,618)
42,897
‐
42,897
21,356
‐
21,356
12
3,100
554
‐
‐
‐
‐
‐
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
4.
SEGMENT INFORMATION (continued)
Geographical segments
The Group’s geographical segments are determined based on the location of the Group’s assets.
55
Capital expenditure
Exploration expenditure
Depreciation and amortisation
48,189
967
164
‐
158
171
‐
‐
‐
2017
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
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
Australia
$’000
Indonesia
$’000
Other
$’000
Eliminations
$’000
‐
825
‐
825
768
9
178
955
‐
‐
‐
‐
‐
‐
(178)
(178)
77,790
1,478
250
12,694
16,852
89
Australia
$’000
Indonesia
$’000
Other
$’000
Eliminations
$’000
‐
25
‐
25
1,350
110
308
1,768
‐
‐
‐
‐
‐
‐
(308)
(308)
31,704
10,952
241
551
20,619
186
Total
$’000
768
834
‐
1,602
‐
1,602
79,518
8,820
88,338
29,635
1,753
31,388
48,189
855
335
Total
$’000
1,350
135
‐
1,485
‐
1,485
42,897
‐
42,897
21,356
‐
21,356
12
3,100
554
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Capital expenditure
Exploration expenditure
Depreciation and amortisation
12
3,027
161
‐
73
393
‐
‐
‐
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 26% (US$184,000), 18% (US$168,000) and 16% (US$145,000) of external revenue (2016: 68%).
43
ALTURA ANNUAL REPORT 2017
56
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
5.
PROFIT / (LOSS) FROM ORDINARY ACTIVITIES
(a)
Revenue
Revenue from services
Revenue from royalties
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 of plant & equipment
Total cost of sales
(d)
Other expenses
Depreciation of plant & equipment
Other expenses
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
2017
$’000
768
503
1,271
321
9
1
331
2016
$’000
1,350
‐
1,350
23
111
1
135
1,602
1,485
827
242
1,069
93
8
66
167
‐
‐
162
70
2,040
2,272
1,609
503
2,112
51
‐
‐
51
277
277
235
545
1,888
2,668
44
ALTURA ANNUAL REPORT 2017
5.
PROFIT / (LOSS) FROM ORDINARY ACTIVITIES
(a)
Revenue
Revenue from services
Revenue from royalties
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 of plant & equipment
Total cost of sales
(d)
Other expenses
Depreciation of plant & equipment
Other expenses
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
1,602
1,485
2017
$’000
768
503
1,271
321
9
1
331
827
242
1,069
93
8
66
167
‐
‐
162
70
2,040
2,272
2016
$’000
1,350
‐
1,350
23
111
1
135
1,609
503
2,112
51
‐
‐
51
277
277
235
545
1,888
2,668
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
6.
EARNINGS / (LOSS) PER SHARE
57
(a) Basic earnings / (loss) per share
From continuing operations, attributable to the ordinary equity holders of the
Company
From discontinued operations
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 operations
Total basic earnings per share attributable to the ordinary equity
holders of the Company
(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 2017. These options could potentially dilute basic earnings per share in
the future.
(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 2017, there were 4,300,000 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.
2017
cents per share
2016
cents per share
(0.44)
(0.01)
(0.45)
(0.44)
(0.01)
(0.45)
(3.48)
(0.02)
(3.50)
(3.48)
(0.02)
(3.50)
2017
number
2016
number
1,358,286,271
900,582,172
2017
$’000
2016
$’000
(5,958)
(169)
(6,127)
(31,332)
(167)
(31,499)
44
45
ALTURA ANNUAL REPORT 2017
58
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
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/(benefit) per income statement
(b)
Income tax expense is attributable to:
Profit / (loss) from continuing operations
Profit / (loss) from discontinued operations
(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
Income tax calculated at the Australian rate of 27.5%(2016: 30%)
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
2017
$’000
2016
$’000
‐
(534)
‐
(534)
(534)
‐
(534)
(6,449)
(250)
(6,699)
(1,842)
1,083
64
666
(534)
29
(534)
‐
254
524
778
778
‐
778
(30,603)
(237)
(30,840)
(9,252)
7,750
234
1,881
254
(89)
778
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 at 27.5% (2016: 30%)
9,503
9,584
(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.
46
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
59
2017
$’000
2016
$’000
8.
CASH AND CASH EQUIVALENTS
Cash at bank and on hand
13,271
22,132
9.
RECEIVABLES
CURRENT
Trade and other receivables
Provision for doubtful debts
NON‐CURRENT
Other receivables – related parties *
4,410
(1,074)
3,336
‐
‐
1,977
(851)
1,126
2,482
2,482
* 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. In the current period this amount is
presented in assets classified as held for sale.
2017 Consolidated
2016 Consolidated
0‐30
days
$000
2,825
307
31‐60
days
$000
43
83
61‐90
days
$000
38
736
90+
days
$000
Total
$000
430
3,336
‐
1,126
As at 30 June 2017, $511,000 (2016, $819,000) trade receivables were past due.
2017
$’000
2016
$’000
1
1
52
52
1
1
50
50
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 1.70% (2016: 2.65%). 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.
47
ALTURA ANNUAL REPORT 2017
60
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
12. OTHER CURRENT ASSETS
Financial assets (security deposits)
Prepayments
13. AVAILABLE‐FOR‐SALE FINANCIAL ASSESTS
Listed investments at fair value
2017
$’000
128
205
333
824
824
2016
$’000
132
329
461
1,333
1,333
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
7,342
‐
‐
(150)
‐
7,192
6,894
190
‐
‐
(131)
‐
6,953
239
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
108
190
‐
‐
‐
298
108
23
‐
‐
‐
‐
131
167
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
8,779
661
‐
(178)
(34)
9,228
8,253
335
‐
‐
(177)
(33)
8,378
850
2017
Gross carrying amount
Balance at 30 June 2016
Additions
Transfer
Exchange difference
Disposals
713
339
‐
(18)
(33)
Balance at 30 June 2017
1,001
Accumulated depreciation
Balance at 30 June 2016
Depreciation expense
Impairment expense
Transfer
Exchange difference
Disposals
Balance at 30 June 2017
Net book value
as at 30 June 2017
686
56
‐
‐
(21)
(32)
689
312
616
132
‐
(10)
(1)
737
565
66
‐
‐
(25)
(1)
605
132
48
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
14. PROPERTY, PLANT AND EQUIPMENT (continued)
61
Motor
vehicles
Office
equipment
Plant and
equipment
Land
Exploration
$’000
$’000
$’000
$’000
$’000
Plant and
equipment
under lease
$’000
Total
$’000
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
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)
‐
‐
‐
‐
‐
‐
‐
‐
‐
15. EXPLORATION AND EVALUATION
Exploration and evaluation expenditure at cost:
Carried forward from previous year
Transfer to mine development costs
Incurred during the year
Transferred to assets classified as held for sale
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.
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
2017
$’000
2016
$’000
14,394
(15,459)
8,382
(6,092)
1,226
‐
1,226
14,949
‐
3,340
‐
18,289
(3,895)
14,394
49
ALTURA ANNUAL REPORT 2017
2017
$’000
2016
$’000
‐
15,459
43,894
59,353
‐
‐
‐
‐
‐
‐
144
144
9,198
9,198
2,072
2,072
15,677
15,677
‐
‐
‐
‐
‐
1,604
16,833
18,437
62
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
16. MINE DEVELOPMENT AT COST
Mine development costs:
Carried forward from previous year
Transfer from exploration and evaluation
Incurred during the year
Total mine development costs
17.
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
Non‐Current Assets
Investments in associates (refer to Note 1c(ii) and Note 26 (b))
Impairment assessment
An impairment charge of $18,000 was recognised during the 12 months ended 30
June 2017 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.
18. TRADE AND OTHER PAYABLES
Trade payables
19. BORROWINGS
Current borrowings
Interest bearing
Vendor loan #
Total current borrowings
Non‐current borrowings
Non‐interest bearing
Loan from other entities ^
Vendor loan #
Total non‐current borrowings
# The vendor loan totalling $15.7 million (30 June 2016: $16.8 million) represents the
amount owing to the vendors of Evora Mining Inc.
^ These funds were advanced by the minority shareholder in the Tabalong coal project
in accordance with the loan agreement. The facility has no defined repayment term and
is disclosed as non‐current. In the current period this amount is presented in liabilities
classified as held for sale.
50
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
63
2017
$’000
2016
$’000
20. 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
21. 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 comprise:
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
842
842
847
200
(205)
842
842
842
847
847
777
132
(62)
847
847
847
‐
‐
1,586
4,560
6
6,152
254
15,154
(9,503)
6
241
6,152
‐
‐
‐
‐
2,140
2,483
3
4,627
254
13,887
(9,584)
7
63
4,627
505
(524)
19
‐
51
ALTURA ANNUAL REPORT 2017
64
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
22. REHABILITATION PROVISION
Non‐current provision
Rehabilitation and demobilisation
Movements in provisions
Rehabilitation and demobilisation
Opening balance
Provision increase/(decrease)/(disposed)
Expense incurred
Balance at year end
23. CONTRIBUTED EQUITY
Issued capital
2017
$’000
2016
$’000
3,918
3,918
‐
3,918
‐
3,918
‐
‐
‐
‐
‐
‐
1,541,678,000 (2016: 1,222,459,902) ordinary shares issued and fully paid
146,556
105,840
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
Share placement and lead managers fee
Share placement
Exercise of Listed Options
Repayment of Director and Management loans by the
issue of shares
Share issue costs
2017
Number
$’000
2016
Number
1,222,459,902
450,000
3,600,000
3,869,000
105,840
70
233
773
306,000,000
5,299,098
41,616
105
$’000
78,904
545
183
‐
23,000
837,676,732
11,450,000
2,900,000
‐
137,037,037
197,396,133
3,948
‐
‐
‐
(2,081)
36,000,000
‐
360
(1,100)
Balance at the end of the financial year
1,541,678,000
146,556
1,222,459,902
105,840
# Nil shares were issued to directors and other key management personnel in 2017 (2016 11,000,000).
## 2,600,000 shares were issued to directors and other key management personnel in 2017 (2016 2,400,000).
Fully paid ordinary shares carry one vote per share and carry the rights to dividends. Ordinary shares have no par value.
Reserves
The option and performance rights reserve records items recognised as expenses on the valuation of share options and
performance rights.
The foreign currency translation reserve records exchange differences arising on translation of a foreign controlled subsidiary.
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.
52
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
65
24. 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 no employee share options on issue as at 30 June 2017:
Number of
options
2017
Weighted
average
exercise price
$
Number of
options
2016
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
‐
‐
‐
‐
‐
There were no new options issued to staff during the year ended 30 June 2017.
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 2017:
Number
Issue date
Vesting date
2,400,000
11 December 2014
30 November 2017
400,000
300,000
300,000
300,000
100,000
500,000
11 August 2015
21 June 2016
12 August 2016
27 February 2017
22 June 2017
30 March 2017
30 November 2017
30 November 2017
30 November 2017
30 November 2017
30 November 2017
First shipment of ore
53
ALTURA ANNUAL REPORT 2017
66
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
24. SHARE BASED PAYMENTS (continued)
c)
Bonus shares
During the year 450,000 shares were issued to staff for no consideration.
During the year, the Company has the following share based payments
expenses:
Performance rights (Note 24b)
Bonus shares
2017
$’000
162
70
232
2016
$’000
235
545
780
25. 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
Zhao Tong
Managing Director
Executive 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
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
2017
$
1,757,701
‐
102,217
‐
88,685
1,948,603
2016
$
1,263,069
‐
70,534
‐
571,980
1,905,583
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 24(a). There were no options held by key
management personnel as at 30 June 2017.
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
Granted
for loan
conversion
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
‐
3,000,000
‐
Exercised
Lapsed
(5,500,001)
(6,523,334)
(30,682,283)
(3,555,556)
(5,500,000)
‐
(4,830,000)
(75,000)
54
(2,000,000)
(2,000,000)
(1,000,000)
(1,000,000)
(1,000,000)
‐
(350,000)
(350,000)
Balance at
end of the
year
Vested and
exercisable
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
24. SHARE BASED PAYMENTS (continued)
c)
Bonus shares
During the year, the Company has the following share based payments
expenses:
Performance rights (Note 24b)
Bonus shares
2017
$’000
162
70
232
2016
$’000
235
545
780
25. 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
Zhao Tong
Managing Director
Executive 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
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
2017
$
‐
‐
1,757,701
1,263,069
102,217
70,534
88,685
1,948,603
571,980
1,905,583
2016
$
‐
‐
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 24(a). There were no options held by key
management personnel as at 30 June 2017.
Exercised
Lapsed
Balance at
end of the
Vested and
exercisable
year
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
Granted
for loan
conversion
3,000,000
3,000,000
(5,500,001)
(6,523,334)
28,682,283
3,000,000
(30,682,283)
1,555,556
3,500,000
3,000,000
3,000,000
(3,555,556)
(5,500,000)
‐
2,180,000
425,000
3,000,000
(4,830,000)
‐
‐
‐
(75,000)
54
(2,000,000)
(2,000,000)
(1,000,000)
(1,000,000)
(1,000,000)
‐
(350,000)
(350,000)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
During the year 450,000 shares were issued to staff for no consideration.
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.
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
25. KEY MANAGEMENT PERSONNEL COMPENSATION (continued)
d)
Performance Rights
67
Balance at
the start of
the year
2,000,000
1,000,000
200,000
200,000
200,000
‐
800,000
400,000
400,000
Balance at
the start of
the year
3,000,000
1,500,000
300,000
300,000
300,000
2017
J Brown
P Mantell
A Buckler
D O’Neill
B Kuan
Z Tong
C Evans
N Young
D Cox
2016
J Brown
P Mantell
A Buckler
D O’Neill
B Kuan
C Evans
N Young
D Cox
Granted as
compensation
Shares issued/
rights lapsed
Balance at
the end of
the year
Vesting
30 Nov
2017
‐
‐
‐
‐
‐
‐
‐
‐
‐
(1,000,000)
1,000,000
1,000,000
(500,000)
(100,000)
(100,000)
(100,000)
‐
(400,000)
(200,000)
(200,000)
500,000
100,000
100,000
100,000
‐
400,000
200,000
200,000
500,000
100,000
100,000
100,000
‐
400,000
200,000
200,000
Granted as
compensation
Shares issued/
rights lapsed
Balance at
the end of
the year
Vesting
30 Nov
2016
Vesting
30 Nov
2017
‐
‐
‐
‐
‐
(1,000,000)
2,000,000
1,000,000
1,000,000
(500,000)
(100,000)
(100,000)
(100,000)
(200,000)
(200,000)
(200,000)
1,000,000
200,000
200,000
200,000
800,000
400,000
400,000
500,000
100,000
100,000
100,000
400,000
200,000
200,000
500,000
100,000
100,000
100,000
400,000
200,000
200,000
‐
1,000,000
600,000
600,000
‐
‐
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 24(b).
55
ALTURA ANNUAL REPORT 2017
68
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
25. 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 (KMP) of the Group, including their personally related parties, are set out below.
2017
J Brown
P Mantell
A Buckler
D O’Neill
B Kuan
C Evans
N Young
D Cox
2016
J Brown
P Mantell
A Buckler
D O’Neill
B Kuan
C Evans
N Young
D Cox
Balance at
start of the
year
26,518,301
32,503,084
177,193,692
14,333,336
20,800,000
1,041,000
17,174,411
1,275,000
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
Purchased /
(sold)
Exercise of
Listed
Options
Conversion
of loans to
Company
Vesting of
performance
rights
Other
changes
Balance at
the end of
the year
‐
‐
‐
‐
‐
(41,000)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
1,000,000
500,000
100,000
100,000
100,000
400,000
200,000
200,000
‐
‐
‐
‐
‐
‐
‐
‐
27,518,301
33,003,084
177,293,692
14,433,336
20,900,000
1,400,000
17,374,411
1,475,000
Purchased /
(sold)
Exercise of
Listed
Options
Conversion
of loans to
Company
Vesting of
performance
rights
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
‐
1,000,000
500,000
100,000
100,000
100,000
200,000
200,000
200,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
1,000,000
‐
‐
26,518,301
32,503,084
177,193,692
14,333,336
20,800,000
1,041,000
17,174,411
1,275,000
# Other changes during the 2016 year relate to a bonus issue of shares to directors (following approval at the 2015 AGM),
and a sign on bonus granted to KMP, Chris Evans during the year.
56
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
69
25. KEY MANAGEMENT PERSONNEL COMPENSATION (continued)
e)
Share holdings
26.
INVESTMENTS IN OTHER ENTITIES
a)
Joint operations
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 (KMP) of the Group, including their personally related parties, are set out below.
Altura Mining Limited holds no interests in any joint operations or ventures.
b)
Interests are held in the following associated companies:
Purchased /
Exercise of
(sold)
Listed
Options
Conversion
of loans to
Company
Vesting of
Other
performance
changes
2017
J Brown
P Mantell
A Buckler
D O’Neill
B Kuan
C Evans
N Young
D Cox
J Brown
P Mantell
A Buckler
D O’Neill
B Kuan
C Evans
N Young
D Cox
Balance at
start of the
year
26,518,301
32,503,084
177,193,692
14,333,336
20,800,000
1,041,000
17,174,411
1,275,000
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
(41,000)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
(100,000)
17,032
‐
(159,000)
rights
1,000,000
500,000
100,000
100,000
100,000
400,000
200,000
200,000
rights
1,000,000
500,000
100,000
100,000
100,000
200,000
200,000
200,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Balance at
the end of
the year
27,518,301
33,003,084
177,293,692
14,433,336
20,900,000
1,400,000
17,374,411
1,475,000
Balance at
the end of
the year
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
2,000,000
2,000,000
26,518,301
32,503,084
2,000,000
177,193,692
2,000,000
2,000,000
1,000,000
14,333,336
20,800,000
1,041,000
17,174,411
1,275,000
‐
‐
‐
‐
‐
‐
‐
‐
Conversion
of loans to
Company
6,000,000
6,000,000
6,000,000
6,000,000
6,000,000
Listed
Options
5,500,001
6,523,334
30,682,283
3,555,556
5,500,000
‐
75,000
4,830,000
6,000,000
2016
(sold)
Purchased /
Exercise of
Vesting of
Other
performance
changes #
# Other changes during the 2016 year relate to a bonus issue of shares to directors (following approval at the 2015 AGM),
and a sign on bonus granted to KMP, Chris Evans during the year.
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
2017
%
33⅓
33⅓
2016
%
33⅓
33⅓
2017
$’000
2016
$’000
‐
‐
‐
144
‐
144
* 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.
The financial information presented represents information to 30 September 2016. PT Binamitra Sumberata was placed
under Indonesian court administration and the Company does not currently have access to the trading results of the
entity.
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
2017
$’000
2016
$’000
144
(124)
(2)
(18)
‐
19,451
(1,513)
686
(18,480)
144
4,571
12,029
16,600
18,231
‐
18,231
(1,631)
978
(1,102)
(124)
‐
(124)
4,948
12,302
17,250
18,841
‐
18,841
(1,591)
6,001
(7,514)
(1,513)
‐
(1,513)
56
57
ALTURA ANNUAL REPORT 2017
70
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
27.
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:
Country of
incorporation
Ownership interest
Name of entity
Altura Lithium Operations Pty Ltd (formerly Altura Exploration Pty Ltd)
Altura Drilling Pty Ltd
Altura Minerals Pty Ltd (formerly 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
Australia
Australia
Australia
Australia
Mauritius
Singapore
Philippines
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
2017
%
100
100
100
100
100
100
40
100
100
100
100
100
100
2016
%
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
2017
%
50
70
70
70
70
70
70
70
56
56
2016
%
50
70
70
70
70
70
70
70
56
56
2017
%
50
30
30
30
30
30
30
30
44
44
2016
%
50
30
30
30
30
30
30
30
44
44
Altura Mining Limited, Altura Lithium Operations Pty Ltd and Altura Minerals 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.
58
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
71
27.
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
2017
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
447
244
691
201
73
274
417
483
396
87
‐
87
(11)
76
20
‐
‐
20
38
184
170
1,530
1,700
‐
1,151
1,151
549
‐
1
(1)
‐
(1)
3
2
7
‐
‐
7
1
(1)
969
833
1,802
1
807
808
994
‐
24
(24)
‐
(24)
10
(14)
‐
‐
‐
‐
(6)
19
968
1,633
2,601
5
1,583
1,588
1,013
‐
20
(20)
‐
(20)
10
(10)
‐
‐
‐
‐
(4)
28
59
ALTURA ANNUAL REPORT 2017
72
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
27.
INTERESTS IN SUBSIDIARIES (continued)
PT Velseis
Indonesia
$’000
PT Suryaraya
Pusaka
$’000
PT Kodio
Multicom
$’000
PT Marangkayu
Bara Makarti
$’000
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
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
28. RELATED PARTIES
Transactions within the wholly‐owned group
The wholly‐owned group includes 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
wholly‐owned related parties during the financial year.
Transaction with a significant shareholder
During the year, Altura Lithium Operations Pty Ltd entered into a binding offtake agreement with J&R Shaanxi Optimum Energy
Ltd (J&R), the largest shareholder of Altura Mining Limited, for the supply of lithium (spodumene concentrate) on
commencement of production from Altura Lithium’s mine which is currently under construction in Western Australia. The
agreement provides for Altura to sell a minimum of 100,000 tonnes of 6% spodumene to J&R annually for an initial 5 year
period. Annual pricing will be agreed with reference to current market information, including but not limited to prices published
or announced by other companies in the market, movement in carbonate pricing and with reference to any indices that may
become available in the future. For the first 3 years of the agreement, a floor price of US$550 per tonne has been agreed, and
there is also a ceiling price of US$950 per tonne for the same period.
60
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
29. NOTES TO STATEMENT OF CASH FLOWS
73
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 in assets classified as held for sale
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
2017
$’000
13,271
37
13,308
2016
$’000
22,132
‐
22,132
13,308
‐
13,308
22,132
‐
22,132
b)
Reconciliation of operating profit / (loss) after income tax to net cash
used in operating activities
Operating loss after income tax
(6,165)
(31,618)
162
‐
70
‐
18
335
‐
124
(5,166)
24
‐
(2,210)
7,128
128
(5)
(5,557)
235
252
545
261
18,480
554
3,895
1,513
(1,066)
277
505
1,632
452
(41)
70
(4,054)
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 – 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.
61
ALTURA ANNUAL REPORT 2017
74
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
Altura Mining Limited and Controlled Entities
FOR THE YEAR ENDED 30 JUNE 2017
30. 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 33.
(c)
Contractual commitments
No later than one year
Later than one year and not later than five years
Later than five years
31. AUDITORS’ REMUNERATION
Amount paid or payable for the audit or review of the financial report
2017
$’000
Parent
2016
$’000
Parent
13,304
101,008
723
723
100,285
146,556
162
(46,433)
100,285
21,980
67,259
554
554
66,705
105,840
233
(39,367)
66,705
(7,065)
(12,883)
(7,065)
(12,883)
89
148
‐
237
2017
$’000
109
109
44
15
‐
59
2016
$’000
107
107
32. SUBSEQUENT EVENTS
Subsequent to the end of the financial year, Altura completed a project funding package for construction and commissioning of its
Altura Lithium Project in the Pilbara region of Western Australia (see ASX release on 28 July 2017). Completion of the funding package
was the final prerequisite required to enable the Company to complete construction of the mine and move into production in the
first half of calendar 2018.
The key details of the facility are:
Senior secured loan notes issue to raise a total of US$110 million
Leading US and Swiss based investment management groups to provide the loan note facility package
Funding to be provided in two (2) tranches with Tranche 1 (approximately US$33 million before costs) settlement occurring
on 4 August 2017 and Tranche 2 (US$77 million before costs) scheduled to settle by 21 September 2017
62
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
NOTES TO THE
FINANCIAL STATEMENTS continued
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2017
33. CONTINGENT LIABILITIES
75
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.
34. COMMITMENTS
2017
$’000
53
2016
$’000
27
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 $294,308 (2015: $262,897). 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 the following commitments for asset acquisitions at 30 June 2017.
Capital expenditures contracted for at the balance sheet date but not recognised
in the financial statements
Mine development at cost
c)
Operating leases
2017
$’000
2016
$’000
13,903
13,903
‐
‐
The Group has entered into operating leases for office premises at Barrack Street in Perth, Western Australia and at
Jakarta and Balikpapan in Indonesia. The Group also has operating leases in relation to certain 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
63
2017
$’000
391
266
‐
657
2016
$’000
325
363
‐
688
ALTURA ANNUAL REPORT 2017
Altura Mining Limited and Controlled Entities
Directors’ Declaration
76
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 2017 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
Perth, 20 September 2017
64
ALTURA ANNUAL REPORT 2017
77
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ALTURA MINING LIMITED
Report on the Financial Report
Opinion
We have audited the accompanying financial report of Altura Mining Limited (the company),
which comprises the consolidated balance sheet as at 30 June 2017, the consolidated
statement of profit or loss, the 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 company and the consolidated
entity comprising the company and the entities it controlled at the year’s end or from time to
time during the financial year.
In our opinion, the financial report of Altura Mining Limited is in accordance with the
Corporations Act 2001, including:
a) Giving a true and fair view of the consolidated entity’s financial position as at 30 June
2017 and of its performance for the year ended on that date; and
b) Complying with Australian Accounting Standards and the Corporations Regulations
2001.
Basis for Opinion
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. Our responsibilities under those standards are further
described in the Auditor’s Responsibility section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Independence
We are independent of the consolidated entity in accordance with the Corporations Act 2001
and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the code) that are relevant to our audit
of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial report of the current period. These matters were
addressed in the context of our audit of the financial report as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters. For each matter
below, our description of how our audit addressed the matter is provided in that context.
65
ALTURA ANNUAL REPORT 2017
78
1. Pilgangoora Lithium Project – Reclassification of exploration and evaluation assets
Why significant
How our audit addressed the key audit
matter
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources an entity shall
reclassify exploration and evaluation assets
when the technical feasibility and commercial
viability of extraction are demonstrable.
Our work included, but was not limited to, the
following procedures:
Conducting a detailed review of
management’s assessment of the exploration
and evaluation assets for impairment at the
time of reclassification:
Directors are of the view that as of the
completion of the Definitive Feasibility Study
(“DFS”) on 26 September 2016, this is now the
case and as such,
the exploration and
evaluation assets relating to the Pilgangoora
Lithium Project have been reclassified to Mine
Development Assets. It is a requirement of
the exploration and
AASB 6
evaluation assets for impairment at the time of
reclassification.
to assess
The consolidated entity’s accounting policy in
respect of exploration and evaluation
expenditure is outlined in Note 1 (b). Significant
judgement is required in determining the
treatment of exploration and evaluation
expenditure in accordance with AASB 6, and
the consolidated entity’s accounting policy. In
particular:
whether the particular areas of interest
meet the recognition conditions for an
asset;
which elements of exploration and
evaluation
for
expenditures
capitalisation for each area of interest; and
evaluation of the recoverable amount of
the exploration and evaluation asset.
qualify
The judgements and estimation can have a
material impact on the financial report. As at
the time of reclassification, the carrying value
of
assets
reclassified to mine development costs was
$15.459 million, as disclosed in Note 16.
exploration
evaluation
and
o
assessing, whether the rights to tenure
of the areas of interest remained
current at the time of reclassification;
o holding discussions with the directors
and management to confirm the
ongoing status of the mine development
project; and
reviewing the Definitive Feasibility
Study (“DFS”) to confirm the experts
opinion on the technical feasibility and
commercial viability of an extraction
project from that area of interest
o
testing, on a sample basis, exploration and
evaluation expenditure incurred during the
year for compliance with AASB 6 and the
consolidated entity’s accounting policy; and
assessing the appropriateness of the related
disclosures in Note 1(b) and 16.
66
ALTURA ANNUAL REPORT 2017
79
2. Mine Development Assets – Recognition and measurement
Why significant
to
relating
As at 30 June 2017 mine development
expenditure
the Pilgangoora
Lithium Project of $59.353 million have been
capitalized and are disclosed in Note 16. This
asset is significant and represents 67% of
total assets of the consolidated entity.
is
the
applied
judgement
in
Significant
determining
of mine
development expenditure in accordance with
Australian Accounting Standard AASB 116
Property, Plant and Equipment. In particular:
treatment
o whether
the
conditions
for
capitalisation are satisfied; and
o whether facts and circumstances
indicate that the mine development
assets should be
for
impairment.
tested
The evaluation of the recoverable amount of
the asset requires significant judgement in
determining the key assumptions supporting
future cash
the expected
the
Pilgangoora Lithium Project.
flows of
How our audit addressed the key audit matter
Our procedures included, but were not limited to:
Confirming that the reclassification to
Mine Development Assets of exploration
and evaluation assets relating to the
Pilgangoora Lithium Project has been in
accordance with
the requirements of
AASB 6 as assessed above;
Obtaining a project management report
and holding discussions with the directors
and management to confirm that the mine
development project remains on time and
on budget. Any abnormal costs of
development are identified and excluded
from capitalized costs.
Testing on a sample basis, subsequent
expenditure
construction,
installation or completion of infrastructure
facilities capitalised during the year for
the recognition and
compliance with
measurement criteria of AASB 116 for
qualifying assets; and
Assessing whether
facts
any
the
on
or
suggest
circumstances
impairment testing was required.
existed
to
We also assessed the appropriateness of the
related disclosures in Notes 1d and 16 to the
Financial Statements.
.
67
ALTURA ANNUAL REPORT 2017
80
Other Information
Other information is financial and non-financial information in the annual report of the
consolidated entity which is provided in addition to the Financial Report and the Auditor’s
Report. The directors are responsible for Other Information in the annual report.
We have obtained all the Other Information prior to the date of this Auditor’s Report which
includes the Directors’ Report.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, the
auditor does not and will not express an audit opinion or any form of assurance conclusion
thereon, with the exception of the Remuneration Report.
In connection with our audit of the Financial Report, our responsibility is to read the Other
Information. In doing so, we consider whether the Other Information is materially inconsistent
with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be
materially misstated.
We are required to report if we conclude that there is a material misstatement of this Other
Information in the Financial Report and based on the work we have performed on the Other
Information that we obtained prior the date of this Auditor’s Report we have nothing to report.
Directors’ Responsibilities for the Financial Report
The Directors of the company are responsible for the preparation of the financial report that
gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal control as the Directors determine is necessary to
enable the preparation of the financial report that gives a true and fair view and is free from
material misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the consolidated
entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using a going concern basis of accounting unless the Directors either intend to
liquidate the consolidated entity or to cease operations, or have no realistic alternative but to
do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our responsibility is to express an opinion on the financial report based on our audit. Our
objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with Australian Auditing Standards will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individual or in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report.
68
ALTURA ANNUAL REPORT 2017
81
The procedures selected depend on the auditor’s judgement, including 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 entity’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 entity’s internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of 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.
We conclude on the appropriateness of the Directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the consolidated entity’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial report
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the consolidated entity to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the consolidated entity to express an opinion on the financial report.
We are responsible for the direction, supervision and performance of the audit. We remain
solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to
audit engagements. We also provide the Directors with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of
most significance in the audit of the financial report of the current period and are therefore key
audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
69
ALTURA ANNUAL REPORT 2017
82
Report on the Remuneration Report
Opinion
We have audited the Remuneration Report included in the directors’ report for the year ended
30 June 2017.
In our opinion, the Remuneration Report of Altura Mining Limited for the year ended 30 June
2017, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
PKF HACKETTS AUDIT
LIAM MURPHY
PARTNER
20 SEPTEMBER 2017
BRISBANE
70
ALTURA ANNUAL REPORT 2017
ASX ADDITIONAL
INFORMATION
SCHEDULE OF MINERAL PROPERTIES
Tenement Number
E 45/2277
E 45/2287
E 45/2363
E 45/3488
E 45/4894
P 45/2758
M 45/1230
M 45/1231
M 45/1260
L 45/400
L 45/401
L 45/404
L 45/409
L 45/416
L 45/433
ELA 26626
ELA 26627
EL 26628
EL 29828
PT Delta Ultima Coal
PT Suryaraya Permata Khatulistiwa
PT Suryaraya Cahaya Cemerlang
PT Suryaraya Pusaka
PT Kodio Multicom
PT Marangkayu Bara Makarti
COC 182 (Area 3) – Catanduanes
COC 200 (Area 4) – Rapu-Rapu
COC 202 (Area 17) – Surigao del Sur
Location
Pilbara, Western Australia
Tanami, Northern Territory
Delta, East Kalimantan
Tabalong, South Kalimantan
Catanduanes, Philippines
Albay Region, Philippines
Bislig Region, Philippines
Key to tenement type:
E, EL: Exploration Licence
G: General Purpose Lease
L: Miscellaneous Licence
M, ML: Mining Lease
P: Prospecting Licence
83
Interest
100%
100%
100%
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%
ALTURA ANNUAL REPORT 2017 84
ASX ADDITIONAL
INFORMATION continued
ISSUED CAPITAL
The issued capital of the company as at 30 September 2017 consists of 1,614,422,513 fully paid ordinary shares.
DISTRIBUTION OF SHAREHOLDERS AS AT 30 SEPTEMBER 2017
FULLY PAID ORDINARY SHARES
Number of holders: 6,487
Holders of less than a marketable parcel: 383
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
303
1,035
1,018
3,116
1,015
6,487
20 LARGEST SHAREHOLDERS – FULLY PAID SHARES
The names of the 20 largest shareholders as at 30 September 2017 are as follows:
Rank
1
Holder name
Furui Holdings Limited
Units % of issued shares
18.95%
306,000,000
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
Citicorp Nominees Pty Ltd
Magy LLC
PK & MA Mantell
AC Buckler
Lionergy Limited
Rookharp Investments Pty Ltd
JS & ML Brown
BT Kuan
CarVal
Lido Trading Limited
E.M. Enterprises (Qld) Pty Ltd
Sand King Pty Ltd
HSBC Custody Nominees (Australia) Limited
NT Young
Finn Air Holdings Pty Ltd
162,353,691
101,467,709
83,242,836
48,784,288
38,093,364
33,020,233
32,863,083
32,386,065
27,191,358
26,355,552
23,428,914
20,900,000
19,812,140
14,345,679
13,500,000
13,000,000
11,728,438
9,400,000
9,272,034
10.06%
6.29%
5.16%
3.02%
2.36%
2.05%
2.04%
2.01%
1.68%
1.63%
1.45%
1.29%
1.23%
0.89%
0.84%
0.81%
0.73%
0.58%
0.57%
Total
1,027,145,384
63.62%
ALTURA ANNUAL REPORT 2017 ASX ADDITIONAL
INFORMATION continued
SUBSTANTIAL SHAREHOLDERS
85
The names of substantial shareholders and the number of equity securities as disclosed in their most recent
substantial shareholder notices received by the Company are:
Holder name
Shaanxi J&R Optimum Energy Company Co., Ltd (Furui Holdings Limited)
AC Buckler (Shazo Holdings Pty Ltd)
MT Smith (Hartco Nominees Pty Ltd)
Shares
306,000,000
177,293,692
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.
PERFORMANCE RIGHTS
The total number of performance rights on issue as at 30 September 2017 was 4,300,000.
As at this date there were 14 holders of these unquoted securities, which have been issued under an employee
incentive scheme.
ALTURA ANNUAL REPORT 2017 86
MINERAL RESOURCES AND
ORE RESERVES STATEMENT
PILGANGOORA LITHIUM DEPOSIT
WESTERN AUSTRALIA
Mineral Resource Estimate
The previous mineral resource estimate in the 2016 annual report was released to the ASX on 22 September 2016.
The current estimate was reported on 24 October 2017.
The current mineral resource estimate was prepared by Cube Consulting Pty Ltd, whereas the previous estimate
was prepared by Hyland Geological and Mining Consultants (HGMC).
The differences between the current and previous resource estimates are the result of closely spaced infill and
deeper drilling conducted during the last 12 months, and now includes for the first time a significant portion in the
Measured category.
Mineral resource estimate comparison
JORC
resource
category
Measured
Indicated
Total
Inferred
Current estimate (0.43% Li2O cut-off grade)
Li2O
(tonnes)
Tonnes
(Mt)
Li2O
(%)
Previous estimate (0.4% Li2O cut-off grade)
Li2O
(tonnes)
Tonnes
(Mt)
Li2O
(%)
8.5
35.5
44.0
3.5
1.12
0.97
1.00
0.98
96,000
345,000
441,000
-
-
30.6
30.6
8.6
-
1.04
1.04
0.95
-
318,000
318,000
82,000
Ore reserve estimate
The previous ore reserve estimate in the 2016 annual report was released to the ASX on 22 September 2016, and
the current estimate was announced on 24 October 2017.
The current ore reserve estimate was also prepared by Cube Consulting Pty Ltd.
The differences between the current and previous reserve estimates are the result of closely spaced infill and
deeper drilling conducted during the last 12 months, and now includes for the first time a significant portion in the
Proved category.
Ore reserve estimate comparision
JORC
resource
category
Proved
Probable
Total
Current estimate (0.43% Li2O cut-off grade)
Li2O
(tonnes)
Tonnes
(Mt)
Li2O
(%)
Previous estimate (0.4% Li2O cut-off grade)
Li2O
(tonnes)
Tonnes
(Mt)
Li2O
(%)
8.1
26.1
34.2
1.14
1.01
1.04
92,000
265,000
357,000
-
20.3
20.3
-
1.06
1.06
-
215,000
215,000
ALTURA ANNUAL REPORT 2017 MINERAL RESOURCES AND
ORE RESERVES STATEMENT continued
87
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 Resource and Ore Reserve estimates 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 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 Resource and Ore Reserve estimates 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 Stephen Barber, Altura’s
Senior Resource Geologist.
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 Barber. Mr Barber is a Member of the Australasian Institute of Mining and
Metallurgy. Mr Barber is the Senior Resource Geologist at Altura Mining Limited 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 Barber consents 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 Quinton de Klerk. Mr de Klerk is a Fellow of the Australasian Institute for Mining
and Metallurgy. Mr de Klerk is a Director and Principal Consultant of Cube Consulting Pty Ltd and has sufficient
experience that is relevant 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 de Klerk 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 24 October 2017. 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.
ALTURA ANNUAL REPORT 2017 88
NOTES
ALTURA ANNUAL REPORT 2017 ALTURAMINING.COM