(ABN 46 136 636 005)
Annual Financial Report
for the Year Ended 30 June 2017
Anson Resources Limited
Index
Corporate Information
Directors’ Report
Auditor’s Independence Declaration
Corporate Governance Statement
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
1
2
11
22
32
33
34
35
36
73
74
77
2017 Annual Financial Report
Anson Resources Limited
Corporate Information
ABN 46 136 636 005
Directors
Bruce McLeod
Non-Executive Chairman
Bruce Richardson
Managing Director
Peter (Greg) Knox
Non-Executive Director
Company Secretary
Michael van Uffelen
Auditors
Stantons International
Level 2, 1 Walker Avenue
West Perth WA 6005
Registered and Principal Office
Share Registry
Security Transfer Australia Pty Ltd
PO Box 535
Applecross, WA 6953
Telephone: +61 8 9315 2333
Facsimile: +61 8 9315 2233
Web address: www.securitytransfer.com.au
Suite 4, Level 3, 1292 Hay Street
West Perth, WA 6005
Telephone: +61 8 9226 0299
Facsimile: +61 8 6313 4133
Email: info@ansonresources.com
Web Address
www.ansonresources.com
ASX Code:
ASN
2017 Annual Financial Report
1
Anson Resources Limited
Directors’ Report
Your Directors submit their report on the Group consisting of Anson Resources Limited and its controlled
entities for the year ended 30 June 2017.
Directors
The names of directors who held office during or since the end of the financial year and until the date of this
report are as follows. Directors were in office for this entire financial year unless otherwise stated.
Bruce William McLeod, B.Sc (Maths), M.Com (Econ)
Non Executive Chairman
Mr McLeod has had 20 years experience in the Australian capital markets. He has been involved in raising
debt and equity capital for a number of public and private businesses, property and resources projects, as
well as the takeover and rationalisation of listed and unlisted companies. Prior to this he spent 6 years with a
major international bank where he was Executive Director, responsible for the financial and capital market
operations. In the early 1980’s he spent several years in the stockbroking industry in New Zealand before
moving to Australia.
During the last three years, Mr McLeod has also served as a director of the following listed companies:
Empire Energy Group Limited* - appointed 21 May 1996
* Denotes current directorship
Bruce Andrew Richardson, B.A (Hons)
Managing Director
Mr Richardson has a proven track record of nine years in exploration, mining and production in public and
private companies, and over 30 years of international business experience, particularly China. In the past
few years has raised over $170 million of investment in mining projects.
He is fluent in Mandarin and has held 10 years experience in the public sector having worked as an
Australian Trade Commissioner in the Australian Embassy in Beijing, with responsibility for the resources
portfolio, and Trade Development Director, Australian Commerce & Industry Office Taipei, Taiwan. In
2006/07 Mr Richardson worked for the Government of Western Australia as Manager China, Department of
Industry and Resources developing business and political relationships with China.
Directorships in the past 3 years: None
Peter (Greg) Knox B.Sc (Geology)
Non-Executive Director
Mr Knox is a qualified geologist with over 30 years of experience in the resources industry experience in
exploration, mine development and mining operations. He has worked on projects from grass-roots
exploration through to mine development and production and has extensive experience in gold, base metals
and iron for several ASX listed companies.
Directorships in the past 3 years: None
2017 Annual Financial Report
2
Anson Resources Limited
Directors’ Report (continued)
Directors (continued)
Directors’ interests in the shares, performance rights, and options of the Company and related bodies
corporate
As at the date of this report, the interests of the Directors in the shares, performance rights and options of
Anson Resources Limited were:
Bruce McLeod
Bruce Richardson
Peter (Gregory) Knox
Class B
Performance
Rights
9/12/21
Number of
fully paid
ordinary
shares
Options
885,000
5,932,740
2,350,000
15,620,451
1,765,000
9,216,000
-
-
-
There were no ordinary shares issued to directors during the financial year and to the date of this report as a
result of the exercise of options.
Company Secretary
Michael van Uffelen, B.Com CA
Company Secretary
Mr van Uffelen holds a Bachelor of Commerce degree from the University of Western Australia and is a
Chartered Accountant. He has more than 29 years accounting and finance experience gained with major
accounting firms, investment banks and public companies, both in Australia and internationally.
Dividends
No dividends have been paid or declared since the start of the financial year and the Directors do not
recommend the payment of a dividend in respect of the financial year.
Principal Activities
The principal activities during the year of the entities within the Group were:
Exploration for minerals in the mid-west of Western Australia and the State of Utah in the United
States of America; and
Searching for further resource projects.
Operating and financial review
Group overview
Anson Resources Limited was formed in 2009 and was listed on the Australian Securities Exchange in July
2010 as Mayan Iron Corporation Limited. The Company changed its name to Anson Resources with
approval of its shareholders on 27 November 2015.
2017 Annual Financial Report
3
Anson Resources Limited
Directors’ Report (continued)
Operating and financial review (continued)
Paradox Brine Project – Utah, USA
About the project
The Paradox Brine Project is located near the town of Moab in Utah, USA, approximately 11 hours by road
from Tesla’s Gigafactory.
It is subterranean pressurised brine (SPB) project with Anson targeting brines from Clastic Zone 31,
approximately 6,000 to 7,000 feet below the surface, and 20 additional brine zones above and below Clastic
Zone 31 within the Pennsylvanian Paradox Formation, which has been defined in numerous oil wells drilled
throughout the region. See Figure 1.
Figure 1: The Paradox Brine Project claims and location of proposed drill targets.
2017 Annual Financial Report
4
Anson Resources Limited
Directors’ Report (continued)
Operating and financial review (continued)
Two wells within 1km of the south end of the claims (Long Canyon No.1 and Robert’s Well) were assayed for
lithium within the Clastic Zone 31 horizon, and showed lithium values of up to 1,700ppm, with an average of
500ppm. The higher lithium values were reported closest to the Robert’s Rupture geological formation,
which runs through the Project claims. In addition, bromine, boron and iodine were found to be in high
concentrations.
The brines from Clastic Zone 31 are contained within of up to 36 feet of shale, anhydrite and dolomite, and
are not part of any oil reservoir. During historic drilling, over pressurised brines (approximately twice the
expected pressure of 4,953 psi) were encountered in Clastic Zone 31 and were found to be at a higher
temperature than expected (600C compared to 400C). This resulted in the brines flowing to the surface when
intersected by historic drilling.
Engineering reports from the 1960’s conclude that the brine reservoir is extensive and is likely recharged
from fresh in-flows of artesian water as indicated by well pressure measurements and draw-down tests.
Ownership
In September 2016, the Company agreed to earn into a prospective lithium project on Utah, USA comprising
of 89 placer claims (referred to as the ULI Project). Legal agreements were completed in March 2017.
The Company currently holds a 10% interest in the ULI Project and can earn further interests as follow:
-
-
40% by defining the location(s) for one or more drill holes, issuing a NI 43-101 technical report, and
expending US$666,000; and then
20% by drilling and logging one or more holes, issuing a NI 43-101 technical report, and expending
US$2,330,000.
In May 2017, the Company staked 202 placer claims (referred to as the A1 Lithium Project) abutting the ULI
Project. These placer claims are 100% owned, but may be subject to area of interest provisions of the
agreement to earn-into the ULI Project.
Activities during the year:
Agreement reached to earn-into 89 placer claims (the ULI Project);
An additional 202 claims were staked at only the cost of the application fee (the A1 Lithium Project).
These 202 claims may be subject to area of interest provisions of the agreement to earn-into the ULI
Project;
Exploration Target calculated;
8 drilling target locations identified (see Figure 1), including the re-entry of an existing well which is
expected to be significantly cheaper than a new well;
SRK Consulting (U.S.), Inc. appointed as Technical Advisor to assist in prioritising drilling targets;
Metallurgical test work completed on synthetic brine showing Mg and Ca can be removed in under 2
hours with the loss of less than 3% of the Li; and
Work is advancing to submit applications to drill.
Exploration Target:
Anson has estimated an Exploration Target of the lithium rich brines within Clastic Zone 31 of 30 to 40 million
barrels with a grade of 500 to 1,700ppm.
Cautionary Statement: The potential quantity (volume) and grade of the Exploration Target is conceptual in
nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further
exploration will result in the estimation of Mineral Resources.
Metallurgical Test work:
Encouraging results were obtained in metallurgical test work completed by Outotec, Finland, on synthetically
prepared brine solutions. The test work was performed on two synthetically prepared brines that have a
chemical composition similar to that of the brine extracted from the Roberts Brine and the Long Canyon No.1
wells located within 1 km south of the Project area.
2017 Annual Financial Report
5
Anson Resources Limited
Directors’ Report (continued)
Operating and financial review (continued)
The composition of the brines submitted for testing is shown in Table 1.
Element
Li
B
Br
I
Mg
Ca
K
Na
CO3
SO4
PO4
HCO3
Brine 1
1,700
20,000
2,500
450
34,000
3,000
33,000
43,000
200
Brine 2
500
600
4,500
300
33,500
49,900
21,700
11,400
2,200
500
940
1.5
NA
2,000
1,500
Table 1: Composition of the synthetic lithium brine solution used in the test work*
Magnesium (Mg) was precipitated out of solution in less than 2 hours, to a concentration below 20 mg/l at a
pH of 9.5. During this process the lithium loss was less than 3%.
Calcium (Ca) was removed from the Mg depleted brine using chemical precipitation with the calcium
concentration being reduced to 21 mg/l (in Brine 2, high Ca) in less than 1 hour. It was also established that
calcium removal was possible by means of solvent extraction (SX), reducing the concentration to 5mg/l.
The final concentration of selected brine minerals after the extraction of Mg and Ca is shown in Table 2.
Feed brine Stage
Li g/l
Mg g/l
Ca g/l
Brine 1
Feed (target values)
After Mg removal
After Ca removal
Brine 2
Feed (target values)
After Mg removal
After Ca removal
1.7
1.3
1.2
0.5
0.38
0.23
34
<0.002
<0.002
33.5
0.01
3
1.74
<0.009
49.9
34.8
<0.002
0.021
Table 2: The concentration of Li, Mg and Ca in the brine solution before and after Mg and Ca extraction.
Ajana Project – Western Australia
About the project
The Ajana Project is located in Northampton, Western Australia, a proven and established mining province
for zinc, lead and silver. The Ajana Project is adjacent to the North West Coast Highway and 130km north of
Geraldton. The prospective ground on the 222km2 of tenements E66/89, E66/94 and E66/100 (under
application) contain extensive areas of graphitic schist mineralization. The Ajana area is dominated by the
Proterozoic gneiss with conformable lenses of meta-sediment, pelitic gneiss, meta-quartzite, mafic gneiss
and graphitic schist known as the Northampton Metamorphic Complex, which typically hosts high-grade
graphite deposits in Western Australia and graphite deposits worldwide.
Activities during the year:
VTEM survey was flown over the Ajana Graphite Project, and covered a total of 551 line kilometres;
31 holes comprising of 1,906m of reverse circulation (RC) drilling was undertaken.
Mineralisation identified:
The drilling program concentrated on geochemical and structural targets and also Versatile Time Domain
Electromagnetic (VTEM) targets that were interpreted to be shallow conductive bodies. The VTEM
anomalies that were drilled intersected minor graphite but also intersected sulphide mineralisation at depth.
The drilling results and the VTEM Survey data indicate a shallow graphitic mineralised area appears as a
shallow weakly conductive early time VTEM feature that is trending north east. See Figure 2.
2017 Annual Financial Report
6
Directors’ Report (continued)
Operating and financial review (continued)
Anson Resources Limited
Figure 2: Coss Section of the Mary Springs North Drilling.
Hooley Wells Nickel-Cobalt Laterite – Western Australia
Project acquisition
In March 2017, the Company acquired the Hooley Wells Nickel-Cobalt Laterite Project for consideration of
$50,000 and the issuance of 2,000,000 shares in the Company.
About the project
The Hooley Wells Nickel-Cobalt Laterite Project is located 800km north of Perth and 300km east of
Geraldton in Western Australia. Tenement E9/2218 (under application) and E9/2219 (under application)
contain historical shallow drilling which has intersected nickel and cobalt laterites.
Investment in Iconic Minerals Ltd
The Company has an investment in the TSX.V listed company Iconic Minerals Ltd (Iconic), which owns a
number of gold and lithium exploration projects in Nevada, USA. The Company realised a gain of $376,516
from selling part of this investment.
For further information on the Gold and Lithium Brine Projects, please visit Iconic Minerals Ltd’s website.
2017 Annual Financial Report
7
Anson Resources Limited
Directors’ Report (continued)
Operating and financial review (continued)
Operating results for the year
Net loss attributable to equity holders of the parent for the year ended 30 June 2017 was $1,744,915 (2016:
$1,329,838) of which $812,795 (2016: $229,689) was spent on exploration and evaluation activities and
$341,362 was incurred in acquiring projects. The loss per share was 1.1 cents (2016: 1.2 cents).
Financial position and significant changes in state of affairs
Cash on hand at 30 June 2017 totalled $0.52 million.
Significant changes in the state of affairs
There have been no significant changes in the state of affairs of the Group to the date of this report, not
otherwise disclosed in this report.
Significant events after balance date
The following events have occurred after balance date:
1. 4,000 options were exercised and 49,954,572 options expired;
2. The Company announced a private placement of 41,996,484 shares at 1.1 cent per share with a free
attaching 2.5 cent option with a 10 August 2019 expiry (Placement Options) to raise approximately
$461,961 before costs. The issue of the Placement Options is subject to shareholder approval at
shareholder meeting to be convened. The arranging broker was paid a fee of 6% of gross proceeds
and, subject to shareholder approval, will be issued 10 million Placement Options;
3. The Company announced that it would be offering shareholders the opportunity to participate in a
Share Placement Plan (SPP) enabling all shareholders at 31 July 2017 the opportunity to purchase
up to 1,363,636 shares at 1.1 cents and, subject to shareholder approval, a free attaching 2.5 cent
option with a 10 August 2018 expiry for each participating share. The SPP will be capped at
$400,000; and
4. The Company issued 6,000,000 ordinary shares to a consultant.
Other than the matters disclosed above, there has not arisen in the interval between the end of the financial
year and the date of this report any item, transaction or event of a material and unusual nature likely, in the
opinion of the Directors of the Company, to affect significantly the operations of the Group and the results of
those operations.
Likely developments and expected results
The Group intends to continue exploration and to develop its projects, specifically focusing on it’s flagship
lithium project. The Group is also considering the acquisition of further tenements for exploration of minerals
and to seek other areas of investment.
Environmental legislation
The Group’s projects are subject to the respective laws and regulations regarding environmental matters and
the discharge of hazardous wastes and materials in the countries in which the projects are located. As with
all exploration, these projects would be expected to have a variety of environmental impacts should
development proceed. The Group intends to conduct its activities in an environmentally responsible manner
and in accordance with applicable laws and industry standards. Areas disturbed by the Group’s activities will
be rehabilitated as required by the respective laws and regulations.
2017 Annual Financial Report
8
Anson Resources Limited
Directors’ Report (continued)
Share Options
At the date of this report, there were 500,000 unissued ordinary shares of the Company under option.
The Options do not entitle the holder to participate in any share issue of the Company or any other body
corporate.
Since the end of the financial year the Company issued 4,000 Shares as a result of the exercise of Options.
Indemnification and insurance of Directors and Officers
The Company has agreed to indemnify all the directors and executive officers against all liabilities to another
person (other than the Company or related body corporate) that may arise from their position as officers of
the Company and its controlled entities, except where the liability arises out of conduct involving a lack of
good faith. The agreement stipulates that the Company will meet the full amount of any such liabilities,
including costs and expenses.
The Company has also agreed to indemnify the current Directors of its controlled entities for all liabilities to
another person (other than the Company or related body corporate) that may arise from their position, except
where the liability arises out of conduct involving a lack of good faith. The agreement stipulates that the
Company will meet the full amount of any such liabilities, including costs and expenses.
The total amount of premium paid was $8,400.
Directors’ Meetings
The number of meetings of Directors held during the financial year and the number of meetings attended by
each Director was as follows:
Name
B McLeod
B Richardson
G Knox
Number of meeting
eligible to attend
Number of meetings
attended
7
7
7
7
7
7
Auditor Independence and Non-Audit Services
The auditor’s independence declaration for the year ended 30 June 2017 has been received and can be
found on the next page.
Non-Audit Services
No non-audit services have been provided by the Company’s auditor, Stantons International, during the
year.
2017 Annual Financial Report
9
Anson Resources Limited
Directors’ Report (continued)
Proceedings on Behalf of the Company
There are no proceedings on behalf of the Company under section 237 of the Corporations Act 2001 in the
financial year or at the date of this report.
2017 Annual Financial Report
10
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited)
This remuneration report for the year ended 30 June 2017 outlines remuneration arrangements of the
Company and the Group in accordance with the requirements of the Corporations Act 2001 (the Act) and its
regulations. This information has been audited as required by section 308(3C) of the Act.
The remuneration report details the remuneration arrangements for key management personnel (KMP) who
are defined as those persons having authority and responsibility for planning, directing and controlling the
major activities of the Company and the Group, directly or indirectly, including any director (whether
executive or otherwise) of the parent company, and including the executives in the Parent and the Group
receiving the highest remuneration.
For the purposes of this report, the term “executive” includes the Chief Executive Officer (CEO), executive
directors, senior management and company secretary of the Company and the term “director” refers to non-
executive directors only.
Individual key management personnel disclosures
Details of KMP including the top five remunerated executives of the Parent and Group are set out below:
Key management personnel
(i) Directors
Non-executive Chairman
B McLeod
B Richardson Managing Director
G Knox
Non-executive Director
(ii) Executives
M van Uffelen Company Secretary
There have not been any changes to KMP after reporting date and before the financial report was authorised
for issue.
The Remuneration Report is set out under the following main headings:
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
Principles used to determine the nature and amount of remuneration
Details of remuneration for the year ended 30 June 2017
Details of remuneration for the year ended 30 June 2016
Service agreements
Share-based compensation
Option holdings of key management personnel
Share holdings of key management personnel
Loans to key management personnel
Performance rights issued to key management personnel
Other transactions and balances with key management personnel
The information provided under headings A-I includes remuneration disclosures that are required under
Accounting Standard AASB 124 Related Party Disclosures. These disclosures have been transferred from
the financial report and have been audited.
This report outlines the remuneration arrangements in place for Directors and executives of Anson
Resources (the “Company”).
A.
Principles used to determine the nature and amount of remuneration
Remuneration philosophy
The performance of the Group depends upon the quality of its directors and executives. To prosper, the
Group must attract, motivate and retain highly skilled directors and executives.
2017 Annual Financial Report
12
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
To this end, the Group embodies the following principles in its compensation framework:
• Provide competitive rewards to attract high calibre executives;
• Link executive rewards to shareholder value;
• Significant portion of executive compensation ‘at risk’, dependent upon meeting pre-determined
performance benchmarks; and
• Establish appropriate, demanding performance hurdles
in
relation
to variable executive
compensation
Remuneration consists of fixed remuneration and variable remuneration.
Fixed Remuneration
Fixed remuneration is reviewed annually by the Board of Directors. The process consists of a review of
relevant comparative remuneration in the market and internally and, where appropriate, external advice on
policies and practices.
Variable Remuneration
Messrs McLeod and Richardson were involved in the creation of the Company and therefore hold significant
numbers of shares and options. Shareholders approved the grant of options to all Directors at the
Company’s Annual General Meeting in October 2010. To further incentivise the board and management, an
employee share plan was introduced in 2013 under which loan funded shares and performance rights have
been issued. Given the current structure, there exists a direct link between the creation of shareholder wealth
performance and the financial rewards for the Directors.
Remuneration Reviews
The Board of Directors of the Company is responsible for determining and reviewing compensation
arrangements for the directors, the Managing Director and all other key management personnel.
The Board of Directors assesses the appropriateness of the nature and amount of compensation of key
management personnel on a periodic basis by reference to relevant employment market conditions with the
overall objective of ensuring maximum stakeholder benefit from the retention of a high quality board and
executive team.
Remuneration structure
In accordance with best practice Corporate Governance, the structure of non-executive director and
executive remuneration is separate and distinct.
Non-executive Director remuneration
The Board seeks to set aggregate remuneration at a level that provides the company with the ability to
attract and retain directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
The Constitution and the ASX Listing Rules specify that the aggregate remuneration of non-executive
directors shall be determined from time to time by a general meeting. The amount of aggregate remuneration
sought to be approved by shareholders and the manner in which it is apportioned amongst directors is
reviewed annually. The Board considers advice from external shareholders as well as the fees paid to non-
executive directors of comparable companies when undertaking the annual review process. Non-executive
directors receive a fee for being a director of the company. The compensation of non-executive directors for
the year ended 30 June 2017 is detailed below.
2017 Annual Financial Report
13
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
Senior Manager and Executive Director remuneration
Objective
The entity aims to reward executives with a level and mix of compensation commensurate with their position
and responsibilities within the entity so as to:
•
•
•
•
reward executives for company, business unit and individual performance against targets set to
appropriate benchmarks;
align the interests of executives with those of shareholders;
link rewards with the strategic goals and performance of the company; and
ensure total compensation is competitive by market standards.
Compensation consists of the following key elements:
•
•
Fixed Compensation; and
Variable Compensation - Long Term Incentive (LTI).
The proportion of fixed compensation and variable compensation (potential short term and long term
incentives) is established for each key management person by the Directors.
Fixed Compensation
Objective
Fixed compensation is reviewed annually by the Directors. The process consists of a review of individual
performance, relevant comparative compensation in the market and internally and, where appropriate,
external advice on policies and practices.
Structure
Executives are given the opportunity to receive their fixed remuneration in a variety of forms including cash
and fringe benefits such as motor vehicles and expense payment plans.
Variable Pay — Long Term Incentive (LTI)
Objective
The objective of the LTI plan is to reward executives in a manner that aligns this element of compensation
with the creation of shareholder wealth. As such LTI grants are only made to executives who are able to
influence the generation of shareholder wealth and thus have a direct impact on the Group's performance
against the relevant long term performance hurdle.
Structure
LTI grants to key management personnel are delivered in the form of loan funded share plans, options and
performance rights.
2017 Annual Financial Report
14
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
B.
Details of remuneration for the year ended 30 June 2017
Directors
B McLeod
B Richardson
P G Knox
Salary &
Fees
55,000
201,083
Non
monetary
benefits
1,119
4,063
Super-
annuation
-
Share-
based
payments
1,390
Total
57,509
-
3,691
208,837
78,493(i)
1,635
1,157
2,772
84,057
Total Directors
334,576
6,817
1,157
7,853
350,403
Other key management
personnel
M van Uffelen
Total executive KMP
78,430
78,430
1,583
1,583
-
-
1,390
81,403
1,390
81,403
Totals
413,006
8,400
1,157
9,243
431,806
(i)
Includes remuneration via Attadale Land Access Pty Ltd, a company of which Mr Knox is a director and
shareholder.
C.
Details of remuneration for the year ended 30 June 2016
Directors
B McLeod
B Richardson
P G Knox
Total Directors
Other key management
personnel
M van Uffelen
Total executive KMP
Totals
Salary &
Fees
55,000
201,083
40,000
296,083
67,875
67,875
363,958
Non
monetary
benefits
Super-
annuation
Share-
based
payments
Total
1,206
4,030
1,360
6,596
1,174
1,174
7,770
-
-
-
-
-
-
-
25,361
81,567
67,414
272,527
50,615
91,975
143,390
446,069
10,423
79,472
10,423
79,472
153,813
525,541
D.
Service agreements
Employment contract
The Managing Director, Mr Richardson is employed under contract. The current employment contract
commenced on 1 July 2009 and terminated on 30 June 2017. Subsequent to reporting date, was extended
for a further 12 months to 30 June 2018.
The main terms of the employment contract with Mr Richardson are as follows:
Remuneration of $179,850 pa plus GST, which is increased to reflect CPI annually; and
Either party is entitled to terminate the agreement by giving three months notice.
2017 Annual Financial Report
15
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
D.
Service agreements (continued)
Non-executive Directors’ fees
The fees of the Non-executive Chairman, Mr McLeod of $55,000 per year was set by the Board in 2010.
The fees of the Non-executive Director, Mr Knox, of $40,000 per year was set by the Board in 2011. In
addition to director’s fees, Mr Knox is paid $80 per hour for any services above his director’s duties.
The Company pays Attadale Land Access Pty Ltd (an entity controlled by Greg Knox) a daily fee of $650
plus GST for geological services.
Company Secretarial fees
The Company Secretary, Mr Michael van Uffelen, is paid under contract with Black Tourmaline Consulting,
and entity in which Mr van Uffelen has a beneficial interest. The current contract commenced on 1 February
2017.
The main terms of the employment contract with Black Tourmaline Consulting are as follows:
Remuneration of $96,000 pa plus GST, which is increased to reflect CPI annually; and
Either party is entitled to terminate the agreement by giving one month notice.
The previous contract was for $4,500 per month for company secretarial tasks plus market rates based on
the time spent on financial reporting and special projects.
E.
Share-based compensation
Compensation shares, options and performance rights - granted and vested during the year
2017
No options were as compensation during the year to KMPs.
No options vested during the 2017 year.
2016
No options were granted as compensation during the 2016 year. Nor did any options vest during the 2016 year.
The Company issued 4,250,000 shares to Key Management Personnel under a loan funded share plan and
10,885,000 performance rights.
Value of shares, options and performance rights awarded, exercised and lapsed during the year
2017
2016
No options vested during the 2017 year. The cost of 10,885,000 performance rights is recognised as an equity
based payment expense and is valued using a Black Scholes Option Pricing Model. The amount recognised as
part of employee benefits expense for the Performance Rights issued during the past years was $9,270.
No options were granted as compensation during the 2016 year. Nor did any compensation options vest during
the 2016 year. The cost of the 4,250,000 shares issued under a loan funded share plan and 10,885,000
performance rights is recognised as an equity based payment expense and is valued using a Black Scholes
Option Pricing Model. The amount recognised as part of employee benefits expense for the Loan Funded Share
Plan shares issued during the year was $34,722 and $119,091 for the Performance Rights.
3,599,928 options issued to Key Management Personnel in prior years expired unexercised during the year.
2017 Annual Financial Report
16
Remuneration report (audited) (continued)
F.
Option holdings of key management personnel
Anson Resources Limited
30 June 2017
Directors
Bruce McLeod
Bruce Richardson
Peter (Greg) Knox
Specified Executives
Michael van Uffelen
30 June 2016
Directors
Bruce McLeod
Bruce Richardson
Peter (Greg) Knox
Specified Executives
Michael van Uffelen
Balance at
start of
the year
Granted as
remuneration
Options
Exercised
Net change
other
Balance at the
end of year
Vested and
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
740,340
2,092,000
740,340
740,340
2,092,000
2,092,000
1,536,000
1,536,000
1,536,000
427,000
427,000
427,000
4,795,340
4,795,340
4,795,340
Balance at
start of
the year
1,924,964
1,674,964
-
-
3,599,928
Granted as
remuneration
Options
Exercised
Net
change
other
Balance at the
end of year
Vested and
exercisable
-
-
-
-
-
- (1,924,964)1
- (1,674,964)1
-
-
-
-
-
(3,599,928)
-
-
-
-
-
-
-
-
-
-
G.
Share holdings of key management personnel
30 June 2017
Directors
Bruce McLeod
Bruce Richardson
Peter (Greg) Knox
Specified Executives
Michael van Uffelen
Balance at
start of
the year
Granted as
remuneration
On
exercise
of options
Acquisit-
ions
Balance at the
end of year
Vested and
exercisable
5,192,000
13,090,000
7,680,000
2,135,000
28,097,000
-
-
-
-
-
-
-
-
-
740,340
2,092,000
1,536,000
5,932,340
5,932,340
15,182,000
15,182,000
9,216,000
9,216,000
427,000
2,562,000
2,562,000
- 4,795,340
32,892,340
32,892,340
1 Options that expired during the year were granted during the 2010 and 2011 years.
2017 Annual Financial Report
17
Remuneration report (audited) (continued)
G.
Share holdings of key management personnel (continued)
Anson Resources Limited
Balance at
start of
the year
Granted as
remuneration
On
exercise
of options
Acquisit-
ions
Balance at the
end of year
Vested and
exercisable
30 June 2016
Directors
Bruce McLeod
Bruce Richardson
Peter (Greg) Knox
2,672,000
2,520,000
6,390,000
6,700,000
2,350,000
5,030,000
Specified Executives
Michael van Uffelen
1,250,000
885,000
-
-
-
-
-
-
5,192,000
5,192,000
13,090,000
13,090,000
300,000
7,680,000
7,680,000
-
2,135,000
2,135,000
12,662,000
15,135,000
-
300,000
28,097,000
28,097,000
H.
Loans to Key Management Personnel (Consolidated)
On 21 December 2015, the Company issued 4,250,000 shares at 0.9 cents per share to Key Management
Personnel (KMPs) under a loan funded share plan approved at the Annual General Meeting of the Company
held on 27 November 2015.
On 10 December 2014, the Company issued 5,000,000 shares at 1.3 cents per share to Key Management
Personnel (KMPs) under a loan funded share plan approved at the Annual General Meeting of the Company
held on 26 November 2014.
The cost of the loan funded share plan is recognized as an equity share-based payment expense. The terms
of the loans are:
Interest rate: 8% per annum.
Term of loan: 10 years.
Lien: The Company shall have a lien over the shares until the loan is repaid and the Company shall
be entitled to sell the shares in accordance with the terms of the Employee Share Plan if the loan is
not repaid when due.
Payments in relation to shares: Any dividends or capital returns in relation to the shares shall be
applied against repayment of the loan.
Proceeds of sale: In the event of sale of the shares all sales proceeds shall be applied against
repayment of the loan.
Limit of liability: The liability of the employee to repay the loan is limited to the payments received by
the employee in relation to the shares and any proceeds from the disposal of the shares.
2017 Annual Financial Report
18
Anson Resources Limited
Remuneration report (audited) (continued)
I.
Performance rights issued to Key Management Personnel
30 June 2017
Directors
Bruce McLeod
Bruce Richardson
Peter (Greg) Knox
Specified Executives
Michael van Uffelen
Balance at
start of
the year
Granted as
remuneration
Rights
converted
to Shares
Net
change
other
Balance at
the end of
year
Vested and
exercisable
885,000
2,350,000
1,765,000
885,000
5,885,000
-
-
-
-
-
-
-
-
-
-
-
-
-
885,000
2,350,000
1,765,000
-
885,000
-
5,885,000
-
-
-
-
-
The vesting of the Performance Rights is subject to the following performance hurdles:
(i)
(ii)
Tranche A - the Company completing the acquisition of a mining exploration or development project
with the approval of Shareholders.
Tranche B – the earlier of any of the following events occurring in relation to the project referred to in
the Tranche A Performance Rights Performance Hurdle:
A.
B.
C.
D.
The sale by the Company of the project or a majority interest in the project where the sale
consideration values the project at a higher value than the sum of the acquisition cost of
the project and all money spent by the Company in developing the project.
The farm-out by the Company of the project where the sum of any consideration received
by the Company in consideration of the farm-out and the value of the retained interest of
the Company in the project is higher than the sum of the acquisition cost of the project and
all money spent by the Company in developing the project.
The Company delineating a JORC compliant resource in relation to a mining exploration
project.
The Company commencing the commercial extraction of minerals from a mining
development project.
(iii)
Tranche C:
A.
B.
The Company completing a successful capital raising or securing a new project.
The share price of the Company being equal or higher than $0.04.
The shares to be issued in the event of vesting of the Performance Rights shall rank pari-passu in all
respects with other fully paid ordinary shares in the Company.
Any unvested Performance Rights will lapse 7 years after their date of issue.
10,885,000 Performance Rights vested during the 2016 year.
2017 Annual Financial Report
19
Anson Resources Limited
Remuneration report (audited) (continued)
I.
Performance rights issued to Key Management Personnel (continued)
30 June 2016
Directors
Bruce McLeod
Bruce Richardson
Peter (Greg) Knox
Specified Executives
Michael van Uffelen
Balance at
start of
the year
Granted as
remuneration
Rights
converted
to Shares
Net
change
other
Balance at the
end of year
Vested and
exercisable
885,000
1,770,000
(1,770,000)
2,350,000
4,700,000
(4,700,000)
1,765,000
3,530,000
(3,530,000)
-
-
-
885,000
2,350,000
1,765,000
885,000
885,000
(885,000)
5,885,000
10,885,000 (10,885,000)
-
-
885,000
5,885,000
-
-
-
-
-
During 2016, 10,885,000 Performance Rights were issued for nil cash consideration and in three tranches,
Tranche A, Tranche B and Tranche C, to Key Management Personnel.
The vesting of the Performance Rights is subject to the following performance hurdles:
(iv)
(v)
Tranche A - the Company completing the acquisition of a mining exploration or development project
with the approval of Shareholders.
Tranche B – the earlier of any of the following events occurring in relation to the project referred to in
the Tranche A Performance Rights Performance Hurdle:
A.
B.
C.
D.
The sale by the Company of the project or a majority interest in the project where the sale
consideration values the project at a higher value than the sum of the acquisition cost of
the project and all money spent by the Company in developing the project.
The farm-out by the Company of the project where the sum of any consideration received
by the Company in consideration of the farm-out and the value of the retained interest of
the Company in the project is higher than the sum of the acquisition cost of the project and
all money spent by the Company in developing the project.
The Company delineating a JORC compliant resource in relation to a mining exploration
project.
The Company commencing the commercial extraction of minerals from a mining
development project.
(vi)
Tranche C:
C.
D.
The Company completing a successful capital raising or securing a new project.
The share price of the Company being equal or higher than $0.04.
The shares to be issued in the event of vesting of the Performance Rights shall rank pari-passu in all
respects with other fully paid ordinary shares in the Company.
Any unvested Performance Rights will lapse 7 years after their date of issue.
10,885,000 Performance Rights vested during the year.
2017 Annual Financial Report
20
Anson Resources Limited (formerly Mayan Iron Corporation Limited)
CORPORATE GOVERNANCE STATEMENT
The Board of Directors of Anson Resources Limited (the Company) is responsible for the corporate
governance of the Company. The Board guides and monitors the business affairs of the Company on behalf
of the shareholders by whom they are elected and to whom they are accountable.
ASX Corporate Governance Principles
The ASX Corporate Governance Council (the Council) has Corporate Governance Principles and
to maximise corporate performance and
Recommendations (the Principles), which are designed
accountability in the interests of shareholders and the broader economy. The Principles encompass matters
such as board composition, committees and compliance procedures.
those under ASX’s 3rd edition of Corporate Governance Principles and
The Principles (being
Recommendations dated March 2014) can be viewed at www.asx.com.au. The Principles are not
prescriptive, however ASX listed entities are required to disclose the extent of their compliance with the
Principles, and to explain why they have not adopted a Principle if they consider it inappropriate in their
particular circumstances.
the spirit of
Commensurate with
the ASX Principles, the Company has followed each of the
Recommendations to the extent the Board considered that their implementation was practicable and likely to
genuinely improve the Company’s internal processes and accountability to external stakeholders. The
Corporate Governance Statement contains certain specific information and discloses the extent to which the
Company has followed the guidelines during the financial year. Where a recommendation has not been
followed, the fact is disclosed, together with reasons for the departure.
The Company has lodged with the ASX an Appendix 4G (Key to Disclosures – Corporate Governance
Council Principles and Recommendations) and Recommendations. A summary against the Principles is set
out below.
2017 Annual Financial Report
22
CORPORATE GOVERNANCE STATEMENT (continued)
Corporate Governance Checklist
Corporate Governance Council Recommendation
Principle 1 - Lay solid foundations for management and oversight
Disclose roles and responsibilities of board and management
1.1
1.2
Undertake appropriate checks before appointing or electing a person as director
1.3 Written agreement with each director and senior executive
Company Secretary accountable directly to Board
1.4
Diversity Policy disclosures reported
1.5
Board performance evaluation undertaken
1.6
1.7
Senior executive performance evaluation undertaken
Principle 2 – Structure the board to add value
Nomination committee requirements met
2.1
Board skills matrix disclosed
Director Independence and tenure disclosed
2.2
2.3
2.4 Majority of the board are independent directors
2.5
Chair of the board is an independent director and not the same person as the
CEO
Director induction and ongoing training program
2.6
Principle 3 – Act ethically and responsibly
Code of conduct available on website
3.1
Anson Resources Limited (formerly Mayan Iron Corporation Limited)
Does the Company
follow the
recommendation?
Comment
Y
Y
Y
Y
Y
N
N
N
Y
Y
N
Y
N
Y
In view of the size of the operations and limited number of directors, a formal
performance evaluation process is not performed.
In view of the size of the operations and limited number of executives, a formal
performance evaluation process is not performed.
The duties and responsibilities typically delegated to such committee are included in the
responsibilities of the full Board.
The Chairman is an independent director.
In view of the size of the operations of the Company and the limited number of
directors, the Company does not have a formal director induction and ongoing training
program.
2017 Annual Financial Report
23
CORPORATE GOVERNANCE STATEMENT (continued)
Corporate Governance Checklist (continued)
Corporate Governance Council Recommendation
Principle 4 – Safeguard integrity in corporate reporting
4.1
Audit committee requirements met
4.2
4.3
CEO and CFO financial statements declarations received
External auditors attend AGM and available to answer questions
from securityholders
Continuous Disclosure Policy available on website
Principle 5 – Make timely and balanced disclosure
5.1
Principle 6 – Respect the rights of securityholders
6.1
6.2
6.3
6.4
Principle 7 – Recognise and manage risk
7.1
Risk committee requirements met
Corporate and governance information available on website
Investor relations program
Processes to facilitate and encourage participation at securityholders meetings
Electronic securityholder communication functionality
7.2
7.3
7.4
Annual review of risk management framework
No internal audit function but internal control processes in place
Disclosure of material exposure to, and management of, economic,
environmental and social sustainability risk
Principle 8
8.1
8.2
8.3
Remuneration committee requirements
Remuneration practices disclosed
Remuneration Policy disclosures regarding equity based remuneration
Anson Resources Limited (formerly Mayan Iron Corporation Limited)
Does the Company
follow the
recommendation?
Comment
The Board considers that the Company is not currently of a size, nor are its affairs of
such complexity to justify the expense of appointing additional independent Non-
Executive Directors simply to fill an audit committee.
In view of the size of the operations of the Company, this is performed by the Board.
N
Y
Y
Y
Y
Y
Y
Y
N
Y
Y
Y
Y
Y
Y
2017 Annual Financial Report
24
Anson Resources Limited
CORPORATE GOVERNANCE STATEMENT (continued)
Principle 1 - Lay solid foundations for management and oversight
Recommendation 1.1 - Disclose roles and responsibilities of board and management
The Board seeks to identify the expectations of the shareholders, as well as other regulatory and ethical
expectations and obligations. In addition, the Board is responsible for identifying areas of significant business
risk and ensuring arrangements are in place to adequately manage those risks.
To ensure that the Board is well equipped to discharge its responsibilities it has established guidelines for the
nomination and selection of directors and for the operation of the Board. The responsibility for the operation
and administration of the Company is delegated, by the Board, to the CEO and the executive management
team.
The Board is responsible for ensuring that management’s objectives and activities are aligned with the
expectations and risks identified by the Board. The Board has a number of mechanisms in place to ensure
this is achieved including:
Board approval of a strategic plan designed to meet stakeholders’ needs and manage business risk
Ongoing development of the strategic plan and approving initiatives and strategies designed to
ensure the continued growth and success of the entity
Implementation of budgets by management and monitoring progress against budget — via the
establishment and reporting of both financial and non-financial key performance indicators
Other functions reserved to the Board include:
Approval of the annual and half-yearly financial reports
Approving and monitoring the progress of major capital expenditure, capital management, and
acquisitions and divestitures
Ensuring that any significant risks that arise are identified, assessed, appropriately managed and
monitored
Reporting to shareholders
Recommendation 1.2 - Undertake appropriate checks before appointing or electing a person as
director
Reference checks are performed for each independent/non-executive director.
Recommendation 1.3 - Written agreement with each director and senior executive
Each director has received a letter of appointment which details the key terms of their appointment. This
letter includes all of the recommended matters in the Principles. Each director also enters into required
agreements regarding insurance, access to records and disclosure of any trading in Company securities as
required under the Listing Rules.
The Managing Director and Company Secretary, being senior executives of the Company, have formalised
job descriptions and, letters of appointment, via their consulting companies.
Recommendation 1.4 - Company Secretary accountable directly to Board
The Company Secretary has a direct reporting line to the Board in regard to all matters to do with the proper
functioning of the Board.
2017 Annual Financial Report
25
Anson Resources Limited
CORPORATE GOVERNANCE STATEMENT (continued)
Recommendation 1.5 - Diversity Policy disclosures reported
The Company recognises the value contributed to the organisation by employing people with varying skills,
cultural backgrounds, ethnicity and experience and employs people based on their underlying skill sets in an
environment where everyone is treated equally and fairly, and where discrimination, harassment and inequity
are not tolerated.
50% of the Company’s employees are females, none of whom are classified as key management personnel.
Recommendation 1.6 - Board performance evaluation undertaken
In view of the size of the operations of the Company and the number of directors, a formal performance
evaluation process is not performed.
Recommendation 1.7 - Senior executive performance evaluation undertaken
In view of the size of the operations of the Company and the limited number of executives, a formal
performance evaluation process is not performed.
Principle 2 – Structure the board to add value
Recommendation 2.1 - Nomination committee requirements met
During the year ended 30 June 2017, the Company did not have a separately established nomination
committee. However, the duties and responsibilities typically delegated to such committee are included in
the responsibilities of the full Board.
Recommendation 2.2 - Board skills matrix disclosed
The directors possess a broad range of complimentary skill sets. The skills, experience and expertise
relevant to the position of director held by each director in office at the date of the annual report are included
in the Directors’ report.
Recommendation 2.3 - Director Independence and tenure disclosed
Directors of the Company are considered to be independent when they are independent of management and
free from any business or other relationship that could materially interfere with — or could reasonably be
perceived to materially interfere with — the exercise of their unfettered and independent judgement.
In the context of director independence, “materiality” is considered from both the Company and individual
director perspective. The determination of materiality requires consideration of both quantitative and
qualitative elements. An item is presumed to be quantitatively immaterial if it is equal to or less than 5% of
the appropriate base amount. It is presumed to be material (unless there is qualitative evidence to the
contrary) if it is equal to or greater than 10% of the appropriate base amount.
Qualitative factors considered include whether a relationship is strategically important, the competitive
landscape, the nature of the relationship and the contractual or other arrangements governing it and other
factors that point to the actual ability of the director in question to shape the direction of the Company’s
loyalty.
In accordance with the definition of independence above, and the materiality thresholds set, the following
directors of the Company are considered to be independent:
Name
Bruce McLeod
Position
Chairman – non-executive (appointed 30 April 2009)
2017 Annual Financial Report
26
Anson Resources Limited
CORPORATE GOVERNANCE STATEMENT (continued)
The term in office held by each director in office at the date of this report is as follows:
Name
Bruce McLeod
Bruce Richardson
Mr Peter (Gregory) Knox
Term in office
Appointed 30 April 2009, tenure 8 years 2 months
Appointed 30 April 2009, tenure 8 years 2 months
Appointed 23 September 2011, tenure 5 years 9 months
Recommendation 2.4 - Majority of the board are independent directors
The Company has three directors, one of whom is independent.
Recommendation 2.5 - Chair of the board is an independent director and not the same person as the
CEO
The Chair of the board is an independent director and is not the CEO.
Recommendation 2.6 - Director induction and ongoing training program
In view of the size of the operations of the Company and the limited number of directors, the Company does
not have a formal director induction and ongoing training program.
Principle 3 – Act ethically and responsibly
Recommendation 3.1 - Code of conduct available on website
The Company’s Code of Conduct is available on the Company’s website.
Principle 4 – Safeguard integrity in corporate reporting
Recommendation 4.1 - Audit committee requirements met
Recommendation 4.1 requires the audit committee to be structured so that it consists only of non-executive
directors with a majority of independent directors, chaired by an independent chairperson who is not
chairperson of the Board and has at least three members. During the year ended 30 June 2017, the
Company did not have a separately established audit committee. The Board considers that the Company is
not currently of a size, nor are its affairs of such complexity to justify the expense of appointing additional
independent Non-Executive Directors simply to fill an audit committee.
Recommendation 4.2 - CEO and CFO financial statements declarations received
In accordance with section 295A of the Corporations Act, the CEO and Company Secretary have provided a
written statement to the Board that:
Their view provided on the Company’s financial report is founded on a sound system of risk
management and internal compliance and control which implements the financial policies adopted by
the Board; and
The Company’s risk management and internal compliance and control system is operating effectively in
all material respects.
Recommendation 4.3 - External auditors attend AGM and available to answer questions from
securityholders
The external auditors are required to attend the annual general meeting and are available to answer any
shareholder questions about the conduct of the audit and preparation of the audit report.
2017 Annual Financial Report
27
Anson Resources Limited
CORPORATE GOVERNANCE STATEMENT (continued)
Principle 5 – Make timely and balanced disclosure
Recommendation 5.1 - Continuous Disclosure Policy available on website
The Company’s policy is to comply with its continuous disclosure obligations under the Listing Rules at all
times.
Principle 6 – Respect the rights of securityholders
Recommendation 6.1 - Corporate and governance information available on website
Information about the Company and its governance is available to investors via the Company’s website:
www.ansonresources.com
Recommendation 6.2 - Investor relations program
The Company’s objective is to promote effective communication with its shareholders at all times.
The Company is committed to:
Ensuring that shareholders and the financial markets are provided with full and timely information about
the Company’s activities in a balanced and understandable way;
Complying with continuous disclosure obligations contained in the ASX listing rules and the
Corporations Act in Australia; and
Communicating effectively with its shareholders and making it easier for shareholders to communicate
with the Company.
To promote effective communication with shareholders and encourage effective participation at general
meetings, information is communicated to shareholders:
Through the release of information to the market via the ASX
Through the distribution of the annual report and notices of annual general meeting
Through shareholder meetings and investor relations presentations
Through letters and other forms of communications directly to shareholders
By posting relevant information on the Company’s website: www.ansonresources.com
The Company’s website publishes all important company information and relevant announcements made to
the market.
Recommendation 6.3 - Processes to facilitate and encourage participation at securityholders
meetings
Meetings of securityholders of the Company are convened at least once a year, usually in November.
An explanatory memorandum on the resolutions is included with the notice of meeting. Unless specifically
stated in the notice of meeting, all holders of fully paid securities are eligible to vote on all resolutions.
In the event that security holders cannot attend formal meetings, they are able to lodge a proxy in
accordance with the Corporations Act. Proxy forms can be mailed, lodged by facsimile or emailed.
2017 Annual Financial Report
28
CORPORATE GOVERNANCE STATEMENT (continued)
Recommendation 6.4 - Electronic securityholder communication functionality
Securityholders are provided with the option to receive communications from, and send communications to,
the Company and its security registry electronically.
Anson Resources Limited
Principle 7 – Recognise and manage risk
Recommendation 7.1 - Risk committee requirements met
The Company does not have a committee to oversee risk. In view of the size of the operations of the
Company, this is performed by the Board.
Recommendation 7.2 - Annual review of risk management framework
The Board has identified the significant areas of potential business and legal risk of the Company. The
identification, monitoring and, where appropriate, the reduction of significant risk to the Company will be the
responsibility of the Board.
To this end, comprehensive practices are in place which are directed towards achieving the following
objectives:
effectiveness and efficiency in the use of the Company’s resources;
compliance with applicable laws and regulations;
preparation of reliable published financial information.
Recommendation 7.3 - No internal audit function but internal control processes in place
In view of the size of the operations of the Company, the Company does not have an internal audit function.
Internal processes include segregating incompatible functions, dual signatories on bank accounts and
oversight by the Board.
Recommendation 7.4 - Disclosure of material exposure to, and management of, economic,
environmental and social sustainability risk
The Company does not believe it has any material exposure to economic, environmental and social
sustainability risks.
Principle 8 – Remunerate fairly and responsibly
Recommendation 8.1 - Remuneration committee requirements
Recommendation 8.1 requires listed entities to establish a remuneration committee. During the year ended
30 June 2017, the Company did not have a separately established remuneration committee. However, the
duties and responsibilities typically delegated to such committee are included in the responsibilities of the full
Board.
Recommendation 8.2 - Remuneration practices disclosed and Recommendation 8.3 - Remuneration
Policy disclosures regarding equity based remuneration
It is the Company’s objective to provide maximum stakeholder benefit from the retention of a high quality
board and executive team by remunerating directors and key executives fairly and appropriately with
reference to relevant employment market conditions. To assist in achieving this objective, the Board has set
remuneration by benchmarking to industry peers.
2017 Annual Financial Report
29
Anson Resources Limited
CORPORATE GOVERNANCE STATEMENT (continued)
Remuneration philosophy
The performance of the Company depends upon the quality of its directors and executives. To prosper, the
Company must attract, motivate and retain highly skilled directors and executives.
To this end, the Company embodies the following principles in its compensation framework:
• Provide competitive rewards to attract high calibre executives;
• Link executive rewards to shareholder value;
• Significant portion of executive compensation ‘at risk’, dependent upon meeting pre-determined
performance benchmarks; and
• Establish appropriate, demanding performance hurdles
in
relation
to variable executive
compensation
Remuneration consists of fixed remuneration and variable remuneration.
Fixed Remuneration
Fixed remuneration is reviewed annually by the Board of Directors. The process consists of a review of
relevant comparative remuneration in the market and internally and, where appropriate, external advice on
policies and practices.
Variable Remuneration
To incentivise the board and management, an employee share plan was introduced in 2013 under which
loan funded shares and performance rights have been issued. Given the current structure, there exists a
direct link between the creation of shareholder wealth performance and the financial rewards for the
Directors.
Remuneration Reviews
The Board of Directors of the Company is responsible for determining and reviewing compensation
arrangements for the directors, the Managing Director and all other key management personnel.
The Board of Directors assesses the appropriateness of the nature and amount of compensation of key
management personnel on a periodic basis by reference to relevant employment market conditions with the
overall objective of ensuring maximum stakeholder benefit from the retention of a high quality board and
executive team.
Remuneration structure
In accordance with best practice Corporate Governance, the structure of non-executive director and
executive remuneration is separate and distinct.
Non-executive Director remuneration
The Board seeks to set aggregate remuneration at a level that provides the company with the ability to
attract and retain directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
The Constitution and the ASX Listing Rules specify that the aggregate remuneration of non-executive
directors shall be determined from time to time by a general meeting. The amount of aggregate remuneration
sought to be approved by shareholders and the manner in which it is apportioned amongst directors is
reviewed annually. The Board considers advice from external shareholders as well as the fees paid to non-
executive directors of comparable companies when undertaking the annual review process. Non-executive
directors receive a fee for being a director of the company.
2017 Annual Financial Report
30
Anson Resources Limited
CORPORATE GOVERNANCE STATEMENT (continued)
Senior Manager and Executive Director remuneration
Objective
The Company aims to reward executives with a level and mix of compensation commensurate with their
position and responsibilities within the entity so as to:
•
•
•
•
reward executives for company, business unit and individual performance against targets set to
appropriate benchmarks;
align the interests of executives with those of shareholders;
link rewards with the strategic goals and performance of the company; and
ensure total compensation is competitive by market standards.
Compensation consists of the following key elements:
•
•
Fixed Compensation; and
Variable Compensation - Long Term Incentive (LTI).
The proportion of fixed compensation and variable compensation (potential short term and long term
incentives) is established for each key management person by the Directors.
Fixed Compensation
Objective
Fixed compensation is reviewed annually by the Directors. The process consists of a review of individual
performance, relevant comparative compensation in the market and internally and, where appropriate,
external advice on policies and practices.
Structure
Executives receive their fixed remuneration in cash.
Variable Pay — Long Term Incentive (LTI)
Objective
The objective of the LTI plan is to reward executives in a manner that aligns this element of compensation
with the creation of shareholder wealth. As such LTI grants are only made to executives who are able to
influence the generation of shareholder wealth and thus have a direct impact on the Company's performance
against the relevant long term performance hurdle.
Structure
LTI grants to key management personnel are delivered in the form of loan funded share plans, options and
performance rights.
2017 Annual Financial Report
31
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
Continuing Operations
Revenue
Audit fees
Consultants
Depreciation expenses
Directors' fees
Employee benefits expenses
Exploration costs
Foreign exchange (loss) / gain
Gain on sale of fixed assets
Gain on sale of investments
Impairment expense
Insurance
Office expenses
Other expenses
Prospective new project due diligence cost
Share-based payment expenses
Travel and accommodation
Loss from continuing operations before income tax
expense
Income tax expense
Loss from continuing operations after income tax
expense
Other Comprehensive Income:
- Items that will not be reclassified to profit or loss
- Items that may be reclassified subsequently to profit or
loss
Total comprehensive loss
Loss for the year attributable to members of the parent
entity
Total comprehensive loss for the year attributable to
members
Note
2(a)
Consolidated
2017
$
2016
$
3,530
3,530
1
1
18
(25,334)
(16,028)
(134,886)
(13,382)
(294,926)
(189,737)
(812,795)
(1,572)
4,357
376,516
(341,362)
(18,322)
(62,472)
(131,192)
-
(4,583)
(98,755)
(80,444)
(3,851)
(296,083)
(87,244)
(229,689)
22,862
-
54,142
(190,000)
(12,035)
(53,342)
(93,664)
(24,341)
(225,813)
(94,309)
2(b)
2(c)
13
(1,744,915)
(1,329,838)
3
-
-
(1,744,915)
(1,329,838)
-
-
(738,713)
735,076
(2,483,628)
(594,762)
(1,744,915)
(1,329,838)
(2,483,628)
(594,762)
Basic and diluted loss per share (cents per share)
5
(1.1)
(1.2)
2017 Annual Financial Report
32
The accompanying notes form part of these financial statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
Anson Resources Limited
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Available for sale investments
Total Current Assets
NON-CURRENT ASSETS
Deposits paid
Property, plant & equipment
Total Non-Current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Lease liability
Total Current Liabilities
NON-CURRENT LIABILITIES
Lease liability
Total Non-current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
Consolidated
2017
$
2016
$
6
7
8
7
9
10
14(d)
14(d)
521,784
456,447
35,982
85,287
24,910
896,501
643,053
1,377,858
13,594
64,556
78,150
-
45,093
45,093
721,203
1,422,951
107,211
934
3,344
111,489
21,075
2,233
-
23,308
6,987
6,987
-
-
118,476
23,308
602,727
1,399,643
11
12
8,622,496
6,952,930
151,256
(8,171,025)
872,823
(6,426,110)
602,727
1,399,643
The accompanying notes form part of these financial statements
2017 Annual Financial Report
33
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
Cash flows from Operating Activities
Receipts from customers
Payments to suppliers and employees
Interest received
Consolidated
Note
2017
2016
Inflows/(Outflows)
$
$
-
-
(1,650,195)
3,530
(986,407)
1
Net cash (used in) operating activities
6(ii)
(1,646,665)
(986,406)
Cash Flows from Investing Activities
Purchase of property, plant & equipment
Proceeds on the sale of property, plant & equipment
Purchase of investments
Proceeds on the sale of investments
Acquisition of projects
(55,428)
37,271
-
450,550
(271,362)
(48,944)
-
(220,398)
63,115
-
Net cash (used in) / provided by investing activities
161,031
(206,227)
Cash Flows from Financing Activities
Proceeds from issue of shares/options
Capital raising costs
Net cash provided by financing activities
Net increase / (decrease) in cash held
Cash at the beginning of the financial year
Foreign exchange revaluation
1,659,109
(108,139)
1,550,970
-
-
-
65,336
456,447
1
(1,192,633)
1,639,380
9,700
Cash at the end of the financial year
6
521,784
456,447
The accompanying notes form part of these financial statements
2017 Annual Financial Report
34
Anson Resources Limited
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2017
Consolidated Group
Ordinary
Shares
Accumulated
Losses
Share
Based
Payment
Reserve
AFS
Investment
Reserve
Foreign
Currency
Translation
Reserve
$
$
$
$
$
Total
$
Balance at 1 July 2016
6,952,930
(6,426,110)
136,740
735,076
1,007
1,399,643
Loss attributable to members of the
parent entity
Capital gain on sale of investments
transferred to accumulated losses
from AFS reserve
Change in value of available-for-
sale investments
Total comprehensive loss for the
year
-
-
-
-
(1,744,915)
-
-
(1,744,915)
Shares issued under private
placements
Shares issued under an entitlement
issue
Exercise of options
Shares issued for acquisition of an
asset
Share based payment for services
Share issue costs
Issue of performance rights
Options issued
1,036,000
502,989
120,120
70,000
48,596
(108,139)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,270
7,876
-
-
(1,744,915)
(376,516)
(362,197)
(738,713)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(376,516)
(362,197)
(2,483,628)
1,036,000
502,989
120,120
70,000
48,596
(108,139)
9,270
7,876
Balance at 30 June 2017
8,622,496
(8,171,025)
153,886
(3,637)
1,007
602,727
Balance at 1 July 2015
6,626,195
(5,982,103)
983,493
Loss attributable to members of the
parent entity
Change in value of available-for-
sale investments
Total comprehensive loss for the
year
Shares issued under a loan funded
share plan
Issue of performance rights
Vesting of performance rights
Shares issued for acquisition of an
asset
Transfer of expired options value to
accumulated losses
-
-
-
-
-
186,735
140,000
(1,329,838)
-
(1,329,838)
-
-
-
-
-
-
-
34,722
191,091
(186,735)
-
-
885,831
(885,831)
-
-
735,076
735,076
-
-
-
-
-
1,007
1,628,592
-
-
-
-
-
-
-
-
(1,329,838)
735,076
(594,762)
34,722
191,091
-
140,000
-
Balance at 30 June 2016
6,952,930
(6,426,110)
136,740
735,076
1,007
1,399,643
The accompanying notes form part of these financial statements
2017 Annual Financial Report
35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Basis of preparation
The financial report is a general-purpose financial report, which has been prepared in accordance
with the requirements of the Corporations Act 2001, Accounting Standards and Interpretations, and
complies with other requirements of the law. The financial report has also been prepared on a
historical cost basis.
The financial report is presented in Australian dollars.
The Company is an ASX listed public company since 6 July 2010, incorporated and operating in
Australia. The principal activities are the exploration for minerals in Western Australia.
(b)
Going concern
The Group incurred losses of $1,744,915 (2016: $1,329,838), net operating cash outflows of
$1,646,665 (2016: $986,406) and net investing cash inflows of $161,031 (2016: outflows of
206,227).
The Group’s ability to continue as a going concern and pay its debts as and when they fall due is
dependent on the following:
Active management of the current level of discretionary expenditure in line with the funds
available to the Group; and
The ability to raise additional funding through either debt facilities or capital raising.
Based on the existing cash resources, the ability to raise additional funding either by way of debt or
capital raisings, the directors are satisfied that the going concern basis of preparation is appropriate.
(c)
Application of new and revised Accounting Standards
The Group has considered the application of new standards and amendments for first time in their
annual reporting period commencing 1 July 2016 but none of the new standards and amendments to
standards that are mandatory for the first time for the financial year beginning 1 July 2016 affected
any of the amounts recognised in the current period or any prior period, although it caused minor
changes to the Group’s disclosures.
New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations issued by the AASB
which are not yet mandatorily applicable to the Group have not been applied in preparing these
consolidated financial statements. Those which may be relevant to the Group are set out below. The
Group does not plan to adopt these standards early.
AASB 9 Financial Instruments and associated Amending Standards (applicable for annual
reporting period commencing 1 January 2018)
The Standard will be applicable retrospectively (subject to the comment on hedge accounting
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.
2017 Annual Financial Report
36
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(c)
Application of new and revised Accounting Standards (continued)
Key changes made to this standard that may affect the Group on initial application include
certain simplifications to the classification of financial assets, simplifications to the accounting of
embedded derivatives, and the irrevocable election to recognise gains and losses on
investments in equity instruments that are not held for trading in other comprehensive income.
The directors anticipate that the adoption of AASB 9 may not have a material impact on the
Group’s financial instruments.
AASB 15: Revenue from Contracts with Customers (applicable to annual reporting periods
commencing on or after 1 January 2018).
When effective, this Standard will replace the current accounting requirements applicable to
revenue with a single, principles-based model. Except for a limited number of exceptions,
including leases, the new revenue model in AASB 15 will apply to all contracts with customers
as well as non-monetary exchanges between entities in the same line of business to facilitate
sales to customers and potential customers.
The core principle of the Standard is that an entity will recognise revenue to depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which
the entity expects to be entitled in exchange for the goods or services. To achieve this objective,
AASB 15 provides the following five-step process:
-
-
-
-
-
identify the contract(s) with a customer;
identify the performance obligations in the contract(s);
determine the transaction price;
allocate the transaction price to the performance obligations in the contract(s); and
recognise revenue when (or as) the performance obligations are satisfied.
This Standard will require retrospective restatement, as well as enhanced disclosures regarding
revenue.
The directors anticipate that the adoption of AASB 15 will not have a material impact on the
Group’s revenue recognition and disclosures.
AASB 16: Leases (applicable to annual reporting periods commencing on or after 1 January
2019).
AASB 16 removes the classification of leases as either operating leases or finance leases for the
lessee effectively treating all leases as finance leases. Short term leases (less than 12 months)
and leases of a low value are exempt from the lease accounting requirements. Lessor
accounting remains similar to current practice.
The directors anticipate that the adoption of AASB 16 will not have a material impact on the
Group’s revenue recognition and disclosures.
Other standards not yet applicable
There are no other standards that are not yet effective and that would be expected to have a
material impact on the entity in the current or future reporting periods and on foreseeable future
transactions
2017 Annual Financial Report
37
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(d)
Statement of compliance
The financial report complies with Australian Accounting Standards, which include Australian
equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures
that the financial report, comprising the financial statements and notes thereto, complies with
International Financial Reporting Standards (IFRS).
(e)
Basis of consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the
parent (Anson Resources Limited) and its subsidiaries. Subsidiaries are entities the parent controls.
The parent controls an entity when it 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 the subsidiaries is provided in Note 15.
The assets, liabilities and results of all the subsidiaries are fully consolidated into the financial
statements of the Group from the date on which control is obtained by the Group. The consolidation
of a subsidiary is discontinued from the date that control ceases. Intercompany transactions,
balances and unrealised gains or losses on transactions between Group entities are fully eliminated
on consolidation. Accounting policies of subsidiaries have been changed and adjustments made
where necessary to ensure uniformity of the accounting policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as
“non-controlling interests". The Group initially recognises non-controlling interests that are present
ownership interests in subsidiaries and are entitled to a proportionate share of the subsidiary's net
assets on liquidation at either fair value or at the non-controlling interests' proportionate share of the
subsidiary's net assets. Subsequent to initial recognition, non-controlling interests are attributed their
share of profit or loss and each component of other comprehensive income. Non-controlling interests
are shown separately within the equity section of the statement of financial position and statement of
comprehensive income
(f)
Critical accounting judgements and key sources of estimation uncertainty
The application of accounting policies requires the use of judgements, estimates and assumptions
about carrying values of assets and liabilities that are not readily apparent from other sources. The
estimates and associated assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates.
Deciding if an acquisition is a business combination or share based payment
The Company assesses whether acquisitions are business combinations or share based payments
based on the level of business activity of the acquiree.
In March 2017, the Company completed the acquisition of 100% of Western Cobalt Pty Ltd. Western
Cobalt Pty Ltd holds an exploration licence under application in Western Australia. The Company
has determined that the acquisition has taken the form of an asset acquisition and not a business
combination. In making this decision, the Company determined that the nature of the exploration and
evaluation activities by Western Cobalt Pty Ltd did not constitute an integrated set of activities and
assets that are capable of being conducted and managed for the purpose of providing a return in the
form of dividends, lower costs or other economic benefits directly to investors or other owners,
members or participants.
Furthermore, the Company has judged that given the stage of development of the assets held by
Western Cobalt Pty Ltd, the acquired set of assets and processes were not capable at the time of
acquisition of producing the intended output.
2017 Annual Financial Report
38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(f)
Critical accounting judgements and key sources of estimation uncertainty (continued)
In December 2015, the Company completed the acquisition of 100% of Rhodes Resources Pty Ltd.
Rhodes Resources Pty Ltd holds an exploration licence in Western Australia. The Company has
determined that the acquisition has taken the form of an asset acquisition and not a business
combination. In making this decision, the Company determined that the nature of the exploration and
evaluation activities by Rhodes Resources Pty Ltd did not constitute an integrated set of activities
and assets that are capable of being conducted and managed for the purpose of providing a return in
the form of dividends, lower costs or other economic benefits directly to investors or other owners,
members or participants.
Furthermore, the Company has judged that given the stage of development of the assets held by
Rhodes Resources Pty Ltd, the acquired set of assets and processes were not capable at the time of
acquisition of producing the intended output.
Share-based payment transactions:
The Group measures the cost of equity-settled share-based payments at fair value at the grant date
using an option pricing model, taking into account the terms and conditions upon which the
instruments were granted. The fair value is determined by a valuation using a Black Scholes Option
Pricing Model, using the assumptions detailed in Note 13.
Exploration and evaluation expenditure
The Company’s accounting policy for exploration and evaluation expenditure results in expenditure
being capitalised for an area of interest acquired where it is considered likely to be recoverable by
future exploitation or sale or where the activities have not reached a stage which permits a
reasonable assessment of the existence of reserves. This policy requires management to make
certain estimates as to future events and circumstances, in particular whether an economically viable
extraction operation can be established. Any such estimates and assumptions may change as new
information becomes available. If, after having capitalised the expenditure under the policy, a
judgement is made that recovery of the expenditure is unlikely, the relevant capitalised amount will
be written off to profit and loss.
Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its
recoverable amount, which is the higher of its fair value less costs of disposal and its value in use.
The fair value less costs of disposal calculation is based on available data from binding sales
transactions, conducted at arm’s length, for similar assets or observable market prices less
incremental costs for disposing of the asset. The value in use calculation is based on a DCF model.
The cash flows are derived from the budget for the next five years and do not include restructuring
activities that the Group is not yet committed to or significant future investments that will enhance the
asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount
rate used for the DCF model as well as the expected future cash-inflows and the growth rate used
for extrapolation purposes. These estimates are most relevant to goodwill and other intangibles with
indefinite useful lives recognised by the Group.
(g)
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Group and the revenue can be reliably measured.
Interest income
Interest revenue is recognised on a time proportionate basis that takes into account the effective
yield on the financial asset.
2017 Annual Financial Report
39
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(h)
Cash and cash equivalents
Cash comprises cash at bank and in hand. Cash equivalents are 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.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and
cash equivalents as defined above.
(i)
Trade and other receivables
Trade receivables are measured on initial recognition at fair value and are subsequently measured
at amortised cost using the effective interest rate method, less provision for impairment. Trade
receivables are generally due for settlement within periods ranging from 30 to 90 days.
(j)
De-recognition of financial assets and financial liabilities
(i) Financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is de-recognised when:
the rights to receive cash flows from the asset have expired;
the Group retains the right to receive cash flows from the asset, but has assumed an
obligation to pay them in full without material delay to a third party under a ‘pass-through’
arrangement; or
the Group has transferred its rights to receive cash flows from the asset and either:
(a) has transferred substantially all the risks and rewards of the asset, or
(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset and has neither
transferred nor retained substantially all the risks and rewards of the asset nor transferred control of
the asset, the asset is recognised to the extent of the Group’s continuing involvement in the asset.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset and the maximum amount of consideration
received that the Group could be required to repay.
When continuing involvement takes the form of a written and/or purchased option (including a cash-
settled option or similar provision) on the transferred asset, the extent of the Group’s continuing
involvement is the amount of the transferred asset that the Group may repurchase, except that in the
case of a written put option (including a cash-settled option or similar provision) on an asset
measured at fair value, the extent of the Group’s continuing involvement is limited to the lower of the
fair value of the transferred asset and the option exercise price.
(ii) Financial liabilities
A financial liability is de-recognised when the obligation under the liability is discharged or cancelled
or expires.
When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as a de-recognition of the original liability and the recognition of a new liability,
and the difference in the respective carrying amounts is recognised in profit or loss.
2017 Annual Financial Report
40
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(k)
Impairment of financial assets
The Group assesses at each balance sheet date whether a financial asset or group of financial
assets is impaired.
(i) Financial assets carried at amortised cost
If there is objective evidence that an impairment loss on loans and receivables carried at amortised
cost has been incurred, the amount of 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) discounted at the financial asset’s original effective interest rate (i.e. the
effective interest rate computed at initial recognition). The carrying amount of the asset is reduced
either directly or through use of an allowance account.
The amount of the loss is recognised in profit or loss.
The Group first assesses whether objective evidence of impairment exists individually for financial
assets that are individually significant, and individually or collectively for financial assets that are not
individually significant. If it is determined that no objective evidence of impairment exists for an
individually assessed financial asset, whether significant or not, the asset is included in a group of
financial assets with similar credit risk characteristics and that group of financial assets is collectively
assessed for impairment. Assets that are individually assessed for impairment and for which an
impairment loss is or continues to be recognised are not included in a collective assessment of
impairment.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognised, the previously
recognised impairment loss is reversed. Any subsequent reversal of an impairment loss is
recognised in profit or loss, to the extent that the carrying value of the asset does not exceed its
amortised cost at the reversal date.
(ii) Financial assets carried at cost
If there is objective evidence that an impairment loss has been incurred on an unquoted equity
instrument that is not carried at fair value (because its fair value cannot be reliably measured), or on
a derivative asset that is linked to and must be settled by delivery of such an unquoted equity
instrument, the amount of the loss is measured as the difference between the asset’s carrying
amount and the present value of estimated future cash flows, discounted at the current market rate
of return for a similar financial asset.
(l)
Foreign currency translation
Both the functional and presentation currency of the Company is Australian dollars. Each entity in
the Group determines its own functional currency and items included in the financial statements of
each entity are measured using that functional currency.
Transactions in foreign currencies are initially recorded in the functional currency by applying the
exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in
foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date.
All exchange differences in the consolidated financial report are taken to profit or loss with the
exception of differences on foreign currency borrowings that provide a hedge against a net
investment in a foreign entity. These are taken directly to equity until the disposal of the net
investment, at which time they are recognised in profit or loss.
Tax charges and credits attributable to exchange differences on those borrowings are also
recognised in equity.
2017 Annual Financial Report
41
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(l)
Foreign currency translation (continued)
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rate as at the date of the initial transaction.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange
rates at the date when the fair value was determined.
The functional currency of the foreign operations, Tikal Minerals SA and A1 Lithium Inc., is USD.
As at the reporting date the assets and liabilities of this subsidiary are translated into the
presentation currency of Anson Resources Limited at the rate of exchange ruling at the balance date
and their income statements are translated at the average exchange rate for the year.
The exchange differences arising on the translation are taken directly to a separate component of
equity.
On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that
particular foreign operation is recognised in profit or loss.
(m)
Income tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted by the balance sheet date.
Deferred income tax is provided on all temporary differences at the balance sheet date between the
tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
when the deferred income tax liability arises from the initial recognition of goodwill or of an
asset or liability in a transaction that is not a business combination and that, at the time of
the transaction, affects neither the accounting profit nor taxable profit or loss; or
when the taxable temporary difference is associated with investments in subsidiaries,
associates or interests in joint ventures, and the timing of the reversal of the temporary
difference can be controlled and it is probable that the temporary difference will not reverse
in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of
unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carry-forward of unused tax
credits and unused tax losses can be utilised, except:
when the deferred income tax asset relating to the deductible temporary difference arises
from the initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss; or
when the deductible temporary difference is associated with investments in subsidiaries,
associates or interests in joint ventures, in which case a deferred tax asset is only
recognised to the extent that it is probable that the temporary difference will reverse in the
foreseeable future and taxable profit will be available against which the temporary difference
can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available to
allow all or part of the deferred income tax asset to be utilised.
2017 Annual Financial Report
42
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(m)
Income tax (continued)
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are
recognised to the extent that it has become probable that future taxable profit will allow the deferred
tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to
the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the balance date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit
or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to
set off current tax assets against current tax liabilities and the deferred tax assets and liabilities
relate to the same taxable entity and the same taxation authority.
(n)
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
when the GST incurred on a purchase of goods and services is not recoverable from the
taxation authority, in which case the GST is recognised as part of the cost of acquisition of
the asset or as part of the expense item as applicable; and
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the Statement of Financial Position.
Cash flows are included in the Consolidated Statement of Cash Flows on a gross basis and the GST
component of cash flows arising from investing and financing activities, which is recoverable from, or
payable to, the taxation authority are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or
payable to, the taxation authority.
(o)
Property, plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated
impairment losses. Such cost includes the cost of replacing parts that are eligible for capitalisation
when the cost of replacing the parts is incurred. Similarly, when each major inspection is performed,
its cost is recognised in the carrying amount of the plant and equipment as a replacement only if it is
eligible for capitalisation.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as
follows:
Office Equipment – over 5 to 8 years
Computer Equipment – over 2.5 years
Motor vehicles – over 5 years
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if
appropriate, at each financial year end.
(i) Impairment
The carrying values of plant and equipment are reviewed for impairment at each reporting date, with
recoverable amount being estimated when events or changes in circumstances indicate that the
carrying value may be impaired.
2017 Annual Financial Report
43
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(o)
Property, plant and equipment (continued)
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and
value in use. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash inflows, recoverable amount is
determined for the cash-generating unit to which the asset belongs, unless the asset's value in use
can be estimated to be close to its fair value.
An impairment exists when the carrying value of an asset or cash-generating units exceeds its
estimated recoverable amount. The asset or cash-generating unit is then written down to its
recoverable amount.
For plant and equipment, impairment losses are recognised in the statement of comprehensive
income in the cost of sales line item.
(ii) De-recognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future
economic benefits are expected from its use or disposal.
Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year the
asset is derecognised.
(p)
Financial assets
Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are
classified as either financial assets at fair value through profit or loss, loans and receivables, held-to-
maturity investments, or available-for-sale investments, as appropriate. When financial assets are
recognised initially, they are measured at fair value, plus, in the case of investments not at fair value
through profit or loss, directly attributable transaction costs. The Group determines the classification
of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this
designation at each financial year-end.
All regular way purchases and sales of financial assets are recognised on the trade date i.e. the date
that the Group commits to purchase the asset. Regular way purchases or sales are purchases or
sales of financial assets under contracts that require delivery of the assets within the period
established generally by regulation or convention in the marketplace.
(i) Financial assets at fair value through profit or loss
Financial assets classified as held for trading are included in the category ‘financial assets at fair
value through profit or loss’. Financial assets are classified as held for trading if they are acquired for
the purpose of selling in the near term. Derivatives are also classified as held for trading unless they
are designated as effective hedging instruments. Gains or losses on investments held for trading are
recognised in profit or loss.
(ii) Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified
as held-to-maturity when the Group has the positive intention and ability to hold to maturity.
Investments intended to be held for an undefined period are not included in this classification.
Investments that are intended to be held-to-maturity, such as bonds, are subsequently measured at
amortised cost.
2017 Annual Financial Report
44
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(p)
Financial assets (continued)
This cost is computed as the amount initially recognised minus principal repayments, plus or minus
the cumulative amortisation using the effective interest method of any difference between the initially
recognised amount and the maturity amount. This calculation includes all fees and points paid or
received between parties to the contract that are an integral part of the effective interest rate,
transaction costs and all other premiums and discounts. For investments carried at amortised cost,
gains and losses are recognised in profit or loss when the investments are derecognised or
impaired, as well as through the amortisation process.
(iii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. Such assets are carried at amortised cost using the effective
interest method. Gains and losses are recognised in profit or loss when the loans and receivables
are derecognised or impaired, as well as through the amortisation process.
(iv) Available-for-sale investments
Available-for-sale investments are those non-derivative financial assets that are designated as
available-for-sale or are not classified as any of the three preceding categories. After initial
recognition available-for sale investments are measured at fair value with gains or losses being
recognised as a separate component of equity until the investment is derecognised or until the
investment is determined to be impaired, at which time the cumulative gain or loss previously
reported in equity is recognised in profit or loss.
The fair value of investments that are actively traded in organised financial markets is determined by
reference to quoted market bid prices at the close of business on the balance sheet date. For
investments with no active market, fair value is determined using valuation techniques. Such
techniques include using recent arm’s length market transactions; reference to the current market
value of another instrument that is substantially the same; discounted cash flow analysis and option
pricing models.
(q)
Intangible assets
Intangible assets acquired separately or in a business combination are initially measured at cost.
The cost of an intangible asset acquired in a business combination is its fair value as at the date of
acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated
amortisation and any accumulated impairment losses. Internally generated intangible assets,
excluding capitalised development costs, are not capitalised and expenditure is charged against
profits in the year in which the expenditure is incurred.
The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets
with finite lives are amortised over the useful life and assessed for impairment whenever there is an
indication that the intangible asset may be impaired. The amortisation period and the amortisation
method for an intangible asset with a finite useful life is reviewed at least at each financial year-end.
Changes in the expected useful life or the expected pattern of consumption of future economic
benefits embodied in the asset are accounted for by changing the amortisation period or method, as
appropriate, which is a change in accounting estimate. The amortisation expense on intangible
assets with finite lives is recognised in profit or loss in the expense category consistent with the
function of the intangible asset.
Intangible assets with indefinite useful lives are tested for impairment annually either individually or
at the cash-generating unit level. Such intangibles are not amortised. The useful life of an intangible
asset with an indefinite life is reviewed each reporting period to determine whether indefinite life
assessment continues to be supportable. If not, the change in the useful life assessment from
indefinite to finite is accounted for as a change in an accounting estimate and is thus accounted for
on a prospective basis.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognised in profit
or loss when the asset is de-recognised.
2017 Annual Financial Report
45
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(r)
Impairment of assets
The Group assesses at each reporting date whether there is an indication that an asset may be
impaired. If any such indication exists, or when annual impairment testing for an asset is required,
the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is
the higher of its fair value less costs to sell and its value in use and is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets or groups of assets and the asset's value in use cannot be estimated to be close to its
fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to
which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its
recoverable amount, the asset or cash-generating unit is considered impaired and is written down to
its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset. Impairment losses relating to continuing operations are
recognised in those expense categories consistent with the function of the impaired asset unless the
asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation
decrease).
An assessment is also made at each reporting date as to whether there is any indication that
previously recognised impairment losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A previously recognised impairment loss is
reversed only if there has been a change in the estimates used to determine the asset’s recoverable
amount since the last impairment loss was recognised. If that is the case the carrying amount of the
asset is increased to its recoverable amount. That increased amount cannot exceed the carrying
amount that would have been determined, net of depreciation, had no impairment loss been
recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset
is carried at revalued amount, in which case the reversal is treated as a revaluation increase. After
such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised
carrying amount, less any residual value, on a systematic basis over its remaining useful life.
(s)
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods
and services provided to the Group prior to the end of the period that are unpaid and arise when the
Group becomes obliged to make future payments in respect of the purchase of these goods and
services.
(t)
Interest-bearing loans and borrowings
All loans and borrowings are initially recognised at the fair value of the consideration received less
directly attributable transaction costs. After initial recognition, interest-bearing loans and borrowings
are subsequently measured at amortised cost using the effective interest method. Gains and losses
are recognised in profit or loss when the liabilities are de-recognised.
(u)
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
When the Group expects some or all of a provision to be reimbursed, for example under an
insurance contract, the reimbursement is recognised as a separate asset but only when the
reimbursement is virtually certain. The expense relating to any provision is presented in the
statement of comprehensive income net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax
rate that reflects the risks specific to the liability.
2017 Annual Financial Report
46
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(u)
Provisions (continued)
When discounting is used, the increase in the provision due to the passage of time is recognised as
a borrowing cost.
(v)
Employee leave benefits
(i) Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating
sick leave expected to be settled within 12 months of the reporting date are recognised in other
payables in respect of employees’ services up to the reporting date, They are measured at the
amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick
leave are recognised when the leave is taken and are measured at the rates paid or payable.
(ii) Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured
as the present value of expected future payments to be made in respect of services provided by
employees up to the reporting date. Consideration is given to expected future wage and salary
levels, experience of employee departures, and period of service. Expected future payments are
discounted using market yields at the reporting date on national government bonds with terms to
maturity and currencies that match, as closely as possible, the estimated future cash outflows.
(w)
Share-based payment transactions
The Group provides benefits to employees (including senior executives) of the Group in the form of
share-based payments, whereby employees render services in exchange for shares or rights over
shares (equity-settled transactions).
The cost of these equity-settled transactions with employees is measured by reference to the fair
value of the equity instruments at the date at which they are granted. The fair value is determined by
an internal valuation using an option pricing model, further details of which are given in Note 13.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of Anson Resources Limited (market conditions) if
applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in
equity, over the period in which the performance and/or service conditions are fulfilled, ending on the
date on which the relevant employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until
vesting date reflects (i) the extent to which the vesting period has expired and (ii) the Group’s best
estimate of the number of equity instruments that will ultimately vest. No adjustment is made for the
likelihood of market performance conditions being met as the effect of these conditions is included in
the determination of fair value at grant date. The statement of comprehensive income charge or
credit for a period represents the movement in cumulative expense recognised as at the beginning
and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is
only conditional upon a market condition. If the terms of an equity-settled award are modified, as a
minimum an expense is recognised as if the terms had not been modified. In addition, an expense is
recognised for any modification that increases the total fair value of the share-based payment
arrangement, or is otherwise beneficial to the employee, as measured at the date of modification.
2017 Annual Financial Report
47
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(w)
Share-based payment transactions (continued)
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and
any expense not yet recognised for the award is recognised immediately. However, if a new award is
substituted for the cancelled award and designated as a replacement award on the date that it is
granted, the cancelled and new award are treated as if they were a modification of the original
award, as described in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the
computation of earnings per share (see Note 5).
The value of shares issued to employees financed by way of a non-recourse loan under the
Employee Share Plan is recognised with a corresponding increase in equity when the Company
receives funds from either the employees repaying the loan or upon the loan termination. All shares
issued under the plan with non-recourse loans are considered, for accounting purposes, to be
options.
(x)
Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
(y)
Earnings/(loss) per share
Basic earnings/(loss) per share is calculated as net profit/(loss) attributable to members of the
parent, adjusted to exclude any costs of servicing equity (other than dividends) and preference share
dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus
element.
Diluted earnings/(loss) per share is calculated as net profit/(loss) attributable to members of the
parent, adjusted for:
costs of servicing equity (other than dividends) and preference share dividends;
the after tax effect of dividends and interest associated with dilutive potential ordinary shares
that have been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result
from the dilution of potential ordinary shares; divided by the weighted average number of
ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.
(z)
Exploration, evaluation and development expenditure
Exploration and evaluation costs are expensed as incurred. Acquisition costs will normally be
expensed but will be assessed on a case by case basis and if appropriate may be capitalised. These
acquisition costs are only carried forward to the extent that they are expected to be recouped
through the successful development or sale of the area. Accumulated acquisition costs in relation to
an abandoned area are written off in full against profit in the year in which the decision to abandon
the area is made.
The carrying values of acquisition costs are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable.
2017 Annual Financial Report
48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(aa)
Fair value of assets and liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-
recurring basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a
liability in an orderly (ie unforced) transaction between independent, knowledgeable and willing
market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing
information is used to determine fair value. Adjustments to market values may be made having
regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities
that are not traded in an active market are determined using one or more valuation techniques.
These valuation techniques maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset
or liability (ie the market with the greatest volume and level of activity for the asset or liability) or, in
the absence of such a market, the most advantageous market available to the entity at the end of the
reporting period (ie the market that maximises the receipts from the sale of the asset or minimises
the payments made to transfer the liability, after taking into account transaction costs and transport
costs).
For non-financial assets, the fair value measurement also takes into account a market participant's
ability to use the asset in its highest and best use or to sell it to another market participant that would
use the asset in its highest and best use.
The fair value of liabilities and the entity's own equity instruments (excluding those related to share-
based payment arrangements) may be valued, where there is no observable market price in relation
to the transfer of such financial instruments, by reference to observable market information where
such instruments are held as assets. Where this information is not available, other valuation
techniques are adopted and, where significant, are detailed in the respective note to the financial
statements.
Valuation techniques
In the absence of an active market for an identical asset or liability, the Group selects and uses one
or more valuation techniques to measure the fair value of the asset or liability, The Group selects a
valuation technique that is appropriate in the circumstances and for which sufficient data is available
to measure fair value. The availability of sufficient and relevant data primarily depends on the
specific characteristics of the asset or liability being measured. The valuation techniques selected by
the Group are consistent with one or more of the following valuation approaches:
Market approach: valuation techniques that use prices and other relevant information
generated by market transactions for identical or similar assets or liabilities.
Income approach: valuation techniques that convert estimated future cash flows or income
and expenses into a single discounted present value.
Cost approach: valuation techniques that reflect the current replacement cost of an asset at
its current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would
use when pricing the asset or liability, including assumptions about risks. When selecting a valuation
technique, the Group gives priority to those techniques that maximise the use of observable inputs
and minimise the use of unobservable inputs. Inputs that are developed using market data (such as
publicly available information on actual transactions) and reflect the assumptions that buyers and
sellers would generally use when pricing the asset or liability are considered observable, whereas
inputs for which market data is not available and therefore are developed using the best information
available about such assumptions are considered unobservable.
49
2017 Annual Financial Report
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(aa)
Fair value of assets and liabilities (continued)
Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which
categorises fair value measurements into one of three possible levels based on the lowest level that
an input that is significant to the measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for
the asset or liability, either directly or indirectly.
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using
one or more valuation techniques. These valuation techniques maximise, to the extent possible, the
use of observable market data. If all significant inputs required to measure fair value are observable,
the asset or liability is included in Level 2. If one or more significant inputs are not based on
observable market data, the asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following
circumstances:
if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or
vice versa; or
if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or
vice versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the
fair value hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date
the event or change in circumstances occurred.
(ab)
Leases
Leases are classified at their inception as either operating or finance leases based on the economic
substance of the agreement so as to reflect the risks and benefits incidental to ownership.
Operating leases
The minimum lease payments made under operating leases are charged against profit or loss in
equal instalments over the accounting periods covered by the lease term where the lessor effectively
retains substantially all of the risks and benefits of ownership of the leased item.
The cost of improvements to or on leasehold property is capitalised, disclosed as leasehold
improvements and amortised over the shorter of the estimated useful life of the asset or the lease
term.
Finance leases
Leases which effectively transfer substantially all of the risks and rewards incidental to ownership of
the leased item to the Company are capitalised at the inception of the lease at the fair value of the
leased asset, or, if lower, at the present value of the minimum lease payments and disclosed as
property, plant and equipment under lease. A lease liability of equal value is also recognised.
2017 Annual Financial Report
50
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(ab)
Leases (continued)
Capitalised lease assets are depreciated over the shorter of the estimated useful life of the assets
and the lease term. Minimum lease payments are allocated between interest expense and reduction
of the lease liability with the interest expense calculated using the interest rate implicit in the lease
and recognised directly in net profit.
NOTE 2: REVENUE AND EXPENSES
(a) Revenue from continuing operations
Interest received - other
Total revenue
Consolidated
2017
$
2016
$
3,530
3,530
1
1
The loss from continuing operations before income tax has been determined after:
(b) Gain on sale of investments
Gain on sale of investments
(c) Other expenses
Listing fees
Computer costs
Conference costs
Legal fees
Printing and postage
Share registry costs
Website and internet costs
Sundry expenses
376,516
376,516
54,142
54,142
23,087
4,234
31,546
18,503
12,614
15,462
15,089
10,657
21,034
1,765
22,454
16,281
6,889
6,355
10,838
8,048
131,192
93,664
NOTE 3: INCOME TAX
(a)
Income tax recognised in profit/loss
No income tax is payable by the parent or consolidated entities as they recorded losses for income tax
purposes for the financial year.
(b)
Numerical reconciliation between income tax expense and the loss before income tax.
The prima facie income tax benefit on pre-tax accounting loss from operations reconciles to the income tax
expense in the financial statements as follows:
2017 Annual Financial Report
51
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
NOTE 3: INCOME TAX (continued)
Anson Resources Limited
Consolidated
2017
$
2016
$
Accounting loss before tax
(1,744,915)
(1,329,838)
Income tax benefit/(expense) at 27.5% (2016: 28.5%)
Non-deductive expenses:
Unrealised foreign exchange gain
Other non deductable expenses:
Unrecognised tax losses
Income tax benefit attributable to loss from ordinary activities
(c) Unrecognised deferred tax balances
Tax losses attributable to members of the Group
Potential tax benefit at 27.5% (2016: 28.5%)
Deferred tax asset/(liability) not booked
Amounts of recognised in profit & loss:
- employee provisions
- accrued expenses
Amounts recognised in equity:
479,852
379,004
-
2,765
(479,852)
(381,769)
-
-
6,891,937
5,392,415
1,895,283
1,536,838
257
11,417
636
3,626
- other comprehensive income (gain) / loss from revaluation of investment
1,000
(209,497)
Net unrecognised deferred tax asset at 27.5% (2016: 28.5%)
1,907,957
1,331,604
A deferred tax asset attributable to income tax losses has not been recognised at balance date as the
probability criteria disclosed in Note 1(m) is not satisfied and such benefit will only be available if the
conditions of deductibility also disclosed in Note 1(m) are satisfied.
NOTE 4: SEGMENT REPORTING
The Group operates predominately in the mineral exploration industry. For management purposes, the
Group is organised into one main operating segment which involves the exploration for minerals. All of the
Group’s activities are inter-related and discrete financial information is reported to the Board (Chief Operating
Decision Maker) as a single segment. Accordingly, all significant operating decisions are based upon
analysis of the Group as one segment. The financial results from this segment are equivalent to the financial
results of the Group as a whole.
2017 Annual Financial Report
52
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
NOTE 5: EARNINGS/(LOSS) PER SHARE
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Anson Resources Limited
Consolidated
2017
$
2016
$
(1.1)
(1.1)
(1.2)
(1.2)
The loss and weighted average number of ordinary shares used in the calculation of basic earnings per
share is as follows:
Loss for the year
(1,744,915)
(1,329,838)
Weighted average number of shares outstanding during the year
used in calculations of basic loss per share:
158,972,029
107,970,041
There is no dilution of shares due to options and performance rights as the potential ordinary shares are not
dilutive and therefore not included in the calculation of diluted loss per share.
NOTE 6: CASH AND CASH EQUIVALENTS
Cash at bank
521,784
521,784
456,447
456,447
Cash at bank earns interest at floating rates based on daily bank deposit rates.
(i) Reconciliation to Cash Flow Statement
For the purposes of the cash flow statement, cash and cash equivalents
comprise cash on hand and at bank.
Cash and cash equivalents as shown in the cash flow statement are
reconciled to the related items in the balance sheet as follows:
Cash and cash equivalents
521,784
456,447
(ii) Reconciliation of loss after income tax to net cash flows from
operating activities:
Loss after income tax
Depreciation
Share-based payments
Gain on sale of property, plant & equipment
Gain on sale of investments
Impairment expense
Unrealised foreign exchange gain
Changes in operating assets and liabilities, net of the effects of
purchase of subsidiaries:
(Increase) in trade and other receivables and deposits paid
Increase in trade and other payables and provisions
Net cash outflow from operating activities:
(1,744,915)
13,382
65,742
(4,357)
(376,516)
(1,329,838)
3,851
225,813
-
(54,142)
341,362
(1,534)
190,000
(9,700)
(1,706,836)
(974,016)
(24,666)
84,837
(14,364)
1,974
(1,646,665)
(986,406)
2017 Annual Financial Report
53
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 6: CASH AND CASH EQUIVALENTS (continued)
(iii) Non-cash items:
During the year 1,104,445 shares were issued in satisfaction for payments for services (see notes 11(a)(vii))
and 2,000,000 (2016: 10,000,000) shares were issued as part of an asset acquisition (see Note 21).
NOTE 7: CURRENT TRADE AND OTHER RECEIVABLES
Current
Prepayments
GST recoverable
Consolidated
2017
$
2016
$
13,702
22,280
35,982
-
24,910
24,910
The average credit period on sales of goods and rendering of services is 30-90 days. No debts are past
due and no impairment is required.
Non-current
Deposit paid
NOTE 8: FINANCIAL ASSETS
Current assets
Investment available-for-sale
13,594
13,594
-
-
85,287
896,501
85,287
896,501
The Company has an investment in Iconic Minerals Ltd, a Canadian listed company, which has a portfolio of
gold and lithium exploration projects in Nevada, USA.
The Group selects a valuation technique that is appropriate in the circumstances and for which sufficient
data is available to measure fair value. The availability of sufficient and relevant data primarily depends on
the specific characteristics of the asset or liability being measured.
Recurring fair value measurement amounts and the level of the fair value hierarchy within which fair value
measurements are categorised are as follow:
Quoted Price in
Active Markets for
Identical Assets
$
(Level 1)
Significant
Observable
Inputs
$
(Level 2)
Significant
Unobservable
Inputs
$
(Level 3)
Available-for-sale financial assets
Shares in a listed corporation
85,287
-
-
2017 Annual Financial Report
54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
NOTE 9: PROPERTY, PLANT AND EQUIPMENT
Opening balance at 1 July
Additions
Disposal of non-current assets
Depreciation/amortisation for the year
At 30 June, net of accumulated depreciation
The useful life of the assets were estimated as follows for 2017:
Office equipment: 5-8 years
Motor vehicles: 5 years
At cost
Accumulated depreciation
NOTE 10: TRADE AND OTHER PAYABLES
Current
Trade payables
Accruals
Anson Resources Limited
Consolidated
2017
$
2016
$
45,093
65,761
(32,916)
(13,382)
-
48,944
-
(3,851)
64,556
45,093
78,342
(13,786)
57,737
(12,644)
64,556
45,093
65,695
41,516
107,211
8,352
12,723
21,075
Trade payables are non-interest bearing and are normally settled on 30-day terms.
NOTE 11: CONTRIBUTED EQUITY
Paid up capital – ordinary shares
Capital raising costs
(a)
Ordinary shares
2017 movements in ordinary share capital:
Balance at 1 July 2016
Issue of share in a private placement (i)
Issue of share in an entitlement issue (ii)
Issue of share in a private placement (iii)
Conversion of Tranche E Performance Rights (iv)
Issue of share on asset purchase (v)
Conversion of options (vi)
Share based payment (vii)
Capital raising costs
Balance at 1 July 2017
8,737,675
6,959,970
(115,179)
8,622,496
(7,040)
6,952,930
Number of
shares
$
122,183,183
8,000,000
6,952,930
216,000
18,629,240
27,333,332
250,000
2,000,000
4,004,000
1,104,455
502,989
820,000
-
70,000
120,120
48,596
- (108,139)
183,504,210
8,622,496
2017 Annual Financial Report
55
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
NOTE 11: CONTRIBUTED EQUITY (continued)
(a)
Ordinary shares (continued)
Anson Resources Limited
(i)
(ii)
8,000,000 shares were issued at 2.7 cents per share which a free attaching option exercisable at 3
cents on or before 13 July 2017 via a private placement.
18,629,240 shares were issued at 2.7 cents per share which a free attaching option exercisable at 3
cents on or before 13 July 2017 via an entitlement issue.
(iii)
27,333,332 shares were issued at 3.0 cents per share which a free attaching option exercisable at 3
cents on or before 13 July 2017 via a private placement.
(iv)
The vesting conditions of the Tranche E Performance Rights (see Notes 12 and 13(c)) was achieved
and fully paid ordinary shares were issued.
(v)
2,000,000 shares were issued for the acquisition of a project (see Notes 13(e) and 21).
(vi)
3 cents, 13 July 2017 expiry options were exercised.
(vii) Shares were issued to a supplier to pay for services provided.
2016 movements in ordinary share capital:
Balance at 1 July 2015
Conversion of Tranche A Performance Rights (i)
Issue of Loan Funded Share Plan shares (ii)
Issue of share on asset purchase (iii)
Conversion of Tranche C Performance Rights (iv)
Conversion of Tranche D Performance Rights (v)
Capital raising costs
Balance at 30 June 2016
Number of
shares
$
94,648,183 6,626,195
186,735
-
140,000
-
5,885,000
4,250,000
10,000,000
5,000,000
2,400,000
-
-
-
122,183,183 6,952,930
(i)
(ii)
During the financial year, the vesting conditions of the Tranche A Performance Rights (see Notes 12
and 13(c)) was achieved and fully paid ordinary shares were issued.
The Company issued 4,250,000 shares to Directors as approved at the Annual General Meeting of
the Company held on 27 November 2015. The cost of these shares is recognised as an equity
share-based payment expense and is valued using a Black Scholes Option Pricing Model (see Notes
13(a)).
(iii)
10,000,000 shares were issued for the acquisition of a project (see Notes 13(e) and 21).
(iv) During the financial year, the vesting conditions of the Tranche C Performance Rights (see Notes 12
and 13(c)) was achieved and fully paid ordinary shares were issued.
(v) During the financial year, the vesting conditions of the Tranche D Performance Rights (see Notes 12
and 13(c)) was achieved and fully paid ordinary shares were issued.
2017 Annual Financial Report
56
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
NOTE 11: CONTRIBUTED EQUITY (continued)
(b)
Share options
2017 movements in share options:
Balance at 1 July 2016
Issued during the year
Exercised during the year
Balance at 30 June 2017
2016 movements in share options:
Balance at 1 July 2015
Movement during the year
Balance at 30 June 2016
Anson Resources Limited
Unlisted,
5.5c
Options
21/9/18
(Note i)
Listed, 3c
Options
13/7/17
(Note ii)
Unlisted,
25c
Options
31/10/15
(Note iii)
Unlisted,
20c
Options
31/05/16
(Note iv)
-
-
500,000 53,962,572
(4,004,000)
-
500,000 49,958,572
-
-
-
-
-
-
-
-
-
-
-
-
2,000,000
3,524,892
(2,000,000)
(3,524,892)
-
-
(i)
(ii)
(iii)
(iv)
500,000 unlisted options convertible into ordinary shares at an exercise price of 5.5 cents on or
before 21 September 2018 were issued to a consultant.
53,962,572 listed options convertible into ordinary shares at an exercise price of 3 cents on or
before 13 July 2017 were issued in private placements and in a rights issue during the year.
4,004,000 were exercised during the year, and subsequent to year end a further 4,000 options
were exercised. The balance of options of 49,954,572 expired unexercised subsequent to year
end.
2,000,000 unlisted options convertible into ordinary shares at an exercise price of 25 cents on or
before 31 October 2015 were issued on 4 November 2010 as director and officer incentives as
approved at the Company’s 2010 Annual General Meeting. See the Remuneration Report for
further details. These options expired unexercised.
3,524,892 unlisted options convertible into ordinary shares at an exercise price of 20 cents on or
before 31 May 2016 were issued on 5 March 2010 as director and officer incentives. These
options expired unexercised.
(c)
Performance Rights
Opening balance
Issued during the year
Vested during the year
Closing balance
See Note 13(c) for further details.
30 June
2017 (No.)
30 June
2016 (No.)
5,885,000
5,885,000
-
-
13,285,000
(13,285,000)
5,885,000
5,885,000
2017 Annual Financial Report
57
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
NOTE 12: RESERVES
Value of reserves:
Anson Resources Limited
Consolidated
2017
$
2016
$
At the start of the year
Issue of Loan Funded Share Plan shares (i)
Issue of Performance Rights (ii)
Vesting of Performance Rights (iii)
Transfer of expired option value to accumulated losses
Capital gain on sale of investments transferred to retained earnings from
AFS reserve
Change in value of available-for-sale investments (iv)
Balance at 30 June
872,823
9,270
7,876
-
-
(376,516)
984,500
34,722
191,091
(186,735)
(885,831)
735,076
(362,197)
151,256
735,076
872,823
(i) The Company issued 4,250,000 shares to Directors as approved at the Annual General Meeting of
the Company held on 27 November 2015. The cost of these shares is recognised as an equity
share-based payment expense and is valued using a Black Scholes Option Pricing Model (see note
13(a)).
(ii) The Company issued 2,942,500 Tranche A, 2,942,500 Tranche B, 5,000,000 Tranche C and
2,400,000 Tranche D Performance Rights (see note 13(c)).
(iii) The vesting conditions of the Tranche A, Tranche C and Tranche D Performance Rights (see notes
11 and 13(c)) were achieved and fully paid ordinary shares were issued
(iv) Investments designated as available-for-sale were revalued to their market value.
(a) Share based payment reserve
The share based payment reserve represents the fair value of the actual or estimated number of unexercised
share options and performance rights granted to management and consultants of the Company recognised
in accordance with the accounting policy adopted for share-based payments and the cash price of rights
options issued to investors and the proceeds raised from the issue of options under an entitlement issue.
(b) Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation
of the financial statements of foreign subsidiaries.
NOTE 13: SHARE BASED PAYMENTS
(a) Loan Funded Share Plan Shares
To ensure that the Company has appropriate mechanisms to continue to attract and retain the services of
Directors and employees of a high calibre, the Company has an established Loan Funded Share Plan.
The Directors and employees of the Company have been, and will continue to be, essential to the growth of
the Company.
The Directors considered the Plan an appropriate method to:
Reward Directors and employees for their past performance;
i.
ii.
Provide long-term incentives to participate in the Company’s future growth;
iii. Motivate Directors and employees and generate loyalty in employees; and
iv.
Assist to retain the services of valuable employees.
NOTE 13: SHARE BASED PAYMENTS (continued)
2017 Annual Financial Report
58
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
(a) Loan Funded Share Plan Shares (continued)
The Plan is used as part of the remuneration planning for senior Employees. ASX corporate governance
guidelines recommend that executive remuneration packages involve a balance between fixed and incentive
pay reflecting short and long-term performance objectives appropriate to the Company’s circumstances and
goals. The Plan is also to be used as part of the remuneration package for Non-Executive Directors.
Although this is not in accordance with the recommendations contained in the corporate governance
guidelines, the Company considers that it is appropriate for Non-Executive Directors to participate in the Plan
from time to time, given the size of the Company.
The Company obtained shareholder approval for the introduction of the Plan in November 2013, and any
Shares issued under the Plan within 3 years of approval of the Plan, is an exception to Listing Rule 7.1.
Listing Rule 7.1 broadly provides, subject to certain exceptions, that a company may not issue or agree to
issue securities representing more than 15% of the nominal value of the company’s issued capital at the
beginning of any 12 month period without shareholder approval.
Pursuant to the terms of the Plan, the Board or a duly appointed committee of the Board ("Committee") may,
at such time as it determines, issue invitations to Directors and Employees of the Company to apply for
Shares.
It is at the discretion of the Committee who were issued invitations to apply for Shares under the Share Plan
and the number of Shares the subject of an invitation. Offers of Shares by the Board or the Committee are
subject to the limits imposed by the Plan. Except where necessary to comply with the provisions of an
employment contract or other contract approved by the Board whereby executive or technical services are
provided to the Company, neither the Board nor the Committee may offer or issue.
Shares under the Plan where the effect would be that the number of Shares offered or granted, when
aggregated with the number of Shares issued on the same date or within the previous 5 years under any
share incentive scheme, would exceed 5% of the total number of Shares on issue at the date of the
proposed offer or issue.
The issue price for Shares offered under the Plan is the volume weighted average price at which Shares
were traded on the ASX over the 5 trading days ending on the day prior to the date of issue of the Incentive
Shares.
A Director or Employee ("Participant") who is invited to subscribe for Shares under the Plan may also be
invited to apply for a loan up to the amount payable in respect of the Shares accepted, on the following
terms:
i.
ii.
iii.
iv.
v.
the repayment term of each loan shall be 10 years. The loan must be repaid in full by the expiry of
the repayment term, but a Director may elect to repay the loan at any time prior to the repayment
date;
the loan shall bear interest at the rate of 8% per annum;
the loan shall be applied by the Company directly towards payment of the issue price of the Incentive
Shares;
the Company shall have a lien over the Incentive Shares in respect of which a loan is outstanding
and the Company shall be entitled to sell those Incentive Shares in accordance with the terms of the
Plan if the loan is not repaid when due; and
the loan is non-recourse except against the Incentive Shares held by the Director to which the loan
relates.
NOTE 13: SHARE BASED PAYMENTS (continued)
2017 Annual Financial Report
59
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
(a) Loan Funded Share Plan Shares (continued)
The following shares were issued under the Loan Funded Share Plan:
Opening balance
Issued during the year:
Bruce McLeod
Bruce Richardson
Greg Knox
Michael van Uffelen
Closing balance
(b) Options
30 June 2017
(No.)
30 June 2016
(No.)
12,250,000
8,000,000
-
-
-
-
750,000
2,000,000
1,500,000
-
12,250,000
12,250,000
500,000 options were granted to employees and consultants during the year (2016: nil).
The following table illustrates the number (No.) and weighted average exercise prices of and movements in
share options issued as compensation during the year:
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Outstanding at the end of the year
Exercisable at the end of the year
2017
No
-
500,000
-
-
-
500,000
500,000
2017
Weighted
average
exercise
price
nil
5.5 cents
-
-
-
5.5 cents
5.5 cents
2016
No
5,524,892
-
-
-
(5,524,892)
-
-
2016
Weighted
average
exercise
price
22 cents
-
-
-
22 cents
-
-
2017 Annual Financial Report
60
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
NOTE 13: SHARE BASED PAYMENTS (continued)
(c) Performance Rights
Anson Resources Limited
The following performance rights were issued under the Performance Rights Plan during the year:
Opening balance
Issued during the year:
Bruce McLeod
Bruce Richardson
Greg Knox
Michael van Uffelen
Employees and consultants
Vested during the year:
Bruce McLeod
Bruce Richardson
Greg Knox
Michael van Uffelen
Employees and consultants
Balance at year end
30 June 2017
(No.)
30 June 2016
(No.)
5,885,000
5,885,000
-
-
-
-
1,770,000
4,700,000
3,530,000
885,000
250,000
2,400,000
6,135,000
13,285,000
-
-
-
-
(1,770,000)
(4,700,000)
(3,530,000)
(885,000)
(250,000)
(2,400,000)
(250,000)
(13,285,000)
5,885,000
5,885,000
The Performance Rights were issued in 2016 and 2017 for nil cash consideration and in four tranches,
Tranche A, Tranche B, Tranche C, Tranche D, and Tranche E.
The vesting of the Performance Rights is subject to the following performance hurdles:
(i)
(ii)
Tranche A - the Company completing the acquisition of a mining exploration or development project
with the approval of Shareholders.
Tranche B – the earlier of any of the following events occurring in relation to the project referred to in
the Tranche A Performance Rights Performance Hurdle:
A.
B.
C.
D.
The sale by the Company of the project or a majority interest in the project where the sale
consideration values the project at a higher value than the sum of the acquisition cost of the
project and all money spent by the Company in developing the project.
The farm-out by the Company of the project where the sum of any consideration received by
the Company in consideration of the farm-out and the value of the retained interest of the
Company in the project is higher than the sum of the acquisition cost of the project and all
money spent by the Company in developing the project.
The Company delineating a JORC compliant resource in relation to a mining exploration
project.
The Company commencing
development project.
the commercial extraction of minerals from a mining
2017 Annual Financial Report
61
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 13: SHARE BASED PAYMENTS (continued)
(c)
(iii)
Performance Rights (continued)
Tranche C:
A.
B.
The Company completing a successful capital raising or securing a new project; or
The share price of the Company being equal or higher than $0.04.
(iv)
Tranche D2:
A.
The share price of the Company being equal or higher than $0.04.
(v)
Tranche E3:
A.
The introduction of an investor.
The shares to be issued in the event of vesting of the Performance Rights shall rank pari-passu in all
respects with other fully paid ordinary shares in the Company.
Any unvested Performance Rights will lapse 7 years after their date of issue.
(d) Valuation of Options, Performance Rights and Share Plan Shares
The fair value of the equity-settled share options granted under both the option and the loan funded share
plan is estimated as at the date of grant using the Black Scholes model taking into account the terms and
conditions upon which the options and shares were granted. The initial undiscounted value of the
performance rights is the value of an underlying share in the Company as traded on ASX at the date of
deemed date of grant of the performance right. As the performance conditions are not market based
performance conditions, no discount is applied.
The fair value of options, performance rights and share plan shares are recognised as an expense over the
period from grant to vesting date.
The amount recognised as part of employee benefits expense for Loan Funded Share Plan shares issued
during the year was nil (2016: $34,722), $9,270 (2016: $191,091) for performance rights, and $7,876 for
options.
The Black Scholes Option Pricing Model assumes that the Securities the subject of the valuation can be sold
on a secondary market. The terms and conditions of the Options and Share Plan shares state that no
application will be made for the Shares to be listed for official quotation on ASX, until certain milestones are
met. Accordingly a discount for lack of marketability is required to determine an indicative fair value of the
Plan Shares and for the Options.
For the purposes of arriving at an appropriate discount rate, the Company has considered:
that discounts have traditionally been applied in the range of 10% to 30% to reflect the non-
negotiability of unlisted equities; and
the fact that the Securities will be unlisted.
The expected life of the options is based on historical data and is not necessarily indicative of exercise
patterns that may occur. The expected volatility reflects the assumption that the historical volatility is
indicative of future trends, which may also not necessarily be the actual outcome. No other features of
options granted were incorporated into the measurement of fair value.
2 Tranche D Performance Rights were issued to employees
3 Tranche E Performance Rights were issued to an employee
2017 Annual Financial Report
62
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
NOTE 13: SHARE BASED PAYMENTS (continued)
Anson Resources Limited
(d) Valuation of Options, Performance Rights and Share Plan Shares (continued)
The following table lists the assumptions to the model used for the year ended 30 June 2017.
Issue Date
Vesting
Date
Number
Issued
Grant Date
Performance
rights
21/12/16
15/3/17
250,000
21/12/16
Options
22/3/17
22/3/17
500,000
22/3/17
Stock
Price at
Grant
Date
(cents)
2.8
3.5
Issue
Price
(cents)
Risk
Free
Rate
(%)
Volatility
(%)
Value
Per
Share /
Right
(cents)
nil
n/a
n/a
5.5
1.79%
122.71%
1.6
The following table lists the assumptions to the model used for the year ended 30 June 2016.
Issue Date
Vesting
Date
Number
Issued
Grant Date
Performance
rights
Performance
rights
Loan funded
shares
Performance
rights
25/9/2015
25/9/2022
5,885,000
25/9/2015
14/12/2015
14/12/2022
5,000,000
14/12/2015
14/12/2015
14/12/2025
4,250,000
14/12/2015
11/5/2016
24/5/2016
2,400,000
11/5/2016
Stock
Price at
Grant
Date
(cents)
0.7
1.0
1.0
3.0
Issue
Price
(cents)
nil
nil
Up to
0.019
Risk
Free
Rate
(%)
n/a
n/a
Volatility
(%)
Value
Per
Share /
Right
(cents)
n/a
0.007
n/a
0.010
2.82%
90.58%
Up to
0.008
nil
n/a
n/a
0.030
(e)
Asset Acquisition
2017:
On 15 March 2017, the Group acquired 100% of the voting shares of Western Cobalt Pty Ltd, an unlisted
company based in Australia, which owns exploration licence E9/2218 (under application) located 800km
north of Perth and 300km east of Geraldton in Western Australia.
The consideration payable included $50,000 and 2,000,000 shares in the Company (see Note 21).
2016:
On 23 December 2015, the Group acquired 100% of the voting shares of Rhodes Resources Pty Ltd, an
unlisted company based in Australia, which owns exploration licence E66/89 located 130 kilometres from
Geraldton in Western Australia.
The consideration payable included 10,000,000 shares in the Company (see Note 21).
2017 Annual Financial Report
63
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
NOTE 14: COMMITMENTS
(a)
Expenditure commitments contracted for exploration tenements:
In order to maintain current rights of tenure to exploration tenements, the
Group is required to outlay rentals and to meet the minimum expenditure
requirements. These obligations are not provided for in the financial
statements and are payable:
- no later than 12 months
- between 12 months and 5 years
- greater than 5 years
(b)
Earn-in agreement for exploration claims:
Anson Resources Limited
Consolidated
2017
$
2016
$
102,803
107,000
-
56,700
170,100
-
209,803
226,800
The Company currently holds a 10% interest in 89 Placer Claims in Utah, USA and can earn further interests
as follow:
(a) 40% by defining the location(s) for one or more drill holes, issuing a NI 43-101 technical report, and
expending US$666,000 (any underspent portion of which may be deferred to the next stage of the earn-
in without the additional 40% interest being affected) by March 2020; and then
(b) 20% by drilling and logging one or more holes, issuing a NI 43-101 technical report, and expending
US$2,330,000 by March 2020.
At the date of this Report, the holder of the current 90% interest had not completed the formalities to transfer
the claims to the joint venture company established for this purpose.
(c)
Legal action by a supplier:
A supplier has commenced legal action to clarify the terms of a contract. There is no present obligation
giving rise to a liability and accordingly no provision or contingent liablity has been included for these
actions.
(d)
Operating lease commitments:
The Company is the lessee in respect of certain property held under operating leases. The lease for the
property has a term of 2 years from 20 June 2017 and lease payments are increased every year with
indexation to reflect market rentals.
At the reporting date, the Company had outstanding minimum commitments under non-cancellable operating
leases, which fall due as follows:
- no later than 12 months
- between 12 months and 5 years
- greater than 5 years
2017 Annual Financial Report
33,875
52,033
-
85,908
-
-
-
-
64
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
NOTE 14: COMMITMENTS
Anson Resources Limited
Consolidated
2017
$
2016
$
(e)
Finance lease and hire purchase commitments
The Company leases certain plant and equipment under a finance lease of 3 years. At the end of the lease
terms the Company owns the equipment outright or has the option to purchase the equipment for the
residual amount owing. The Company’s obligations under finance leases are secured by the lessors’ title to
the leased assets.
- no later than 12 months
- between 12 months and 5 years
- Total minimum lease payments
- Less: amounts representing finance charges
- Present value of minimum lease payments
Included in the financial statements as:
- Current liabilities
- Non-current liabilities
NOTE 15: RELATED PARTY DISCLOSURE
(a)
Subsidiaries
3,792
7,584
11,376
(1,045)
10,331
3,344
6,987
10,331
-
-
-
-
-
-
-
-
The consolidated financial statements include the financial statements of Anson Resources Limited and the
subsidiaries listed in the following table:
Name
Country of
Incorporation
% Equity
Interest
2017
Investment
$
2017
% Equity
interest
2016
Investment
$
2016
Tikal Minerals SA (1)
Rhodes Resources Pty Ltd
Western Cobalt Pty Ltd
A1 Lithium Inc.
Guatemala
Australia
Australia
USA
100%
100%
100%
100%
-
-
-
-
100%
100%
-
-
-
-
-
-
Note 1: one share owned by Bruce Richardson, Managing Director, beneficially held on behalf of Anson
Resources Limited. 4,999 shares held by Anson Resources Limited directly.
(b)
Ultimate parent
Anson Resources Limited is the ultimate Australian parent entity and ultimate parent of the Group.
(c)
Key management personnel (KMP)
Refer to Note 16 for transactions involving key management personnel.
2017 Annual Financial Report
65
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 15: RELATED PARTY DISCLOSURE (continued)
(d)
Loan funded share plan contingent asset
As disclosed in note 13, the Company has issued shares to key management personnel under a loan funded
share plan. The grant of these securities is accounted for as a share based payment with the value having
been calculated using a Black-Scholes option pricing model at the date of issue. Notwithstanding the
accounting treatment of the loan funded share plan as an option, the shares are restricted and can only be
released upon the holder paying the loan attached to the shares. The balance of the contingent asset was:
2017
2016
$
$
182,729 168,725
182,729 168,725
Consolidated
2017
$
2016
$
421,406
1,157
9,243
371,728
-
153,813
431,806
525,541
Loan funded share plan contingent asset
NOTE 16: COMPENSATION FOR KEY MANAGEMENT PERSONNEL
Short-term employee benefits
Post-employment benefits
Share-based payments
Refer to the Remuneration Report for further information.
NOTE 17: EVENTS AFTER THE BALANCE SHEET DATE
The following events have occurred after balance date:
1. 4,000 options were exercised and 49,954,572 options expired;
2. The Company announced a private placement of 41,996,484 shares at 1.1 cent per share with a free
attaching 2.5 cent option with a 10 August 2019 expiry (Placement Options) to raise approximately
$461,961 before costs. The issue of the Placement Options is subject to shareholder approval at
shareholder meeting to be convened. The arranging broker was paid a fee of 6% of gross proceeds
and, subject to shareholder approval, will be issued 10 million Placement Options;
3. The Company announced that it would be offering shareholders the opportunity to participate in a
Share Placement Plan (SPP) enabling all shareholders at 31 July 2017 the opportunity to purchase
up to 1,363,636 shares at 1.1 cents and, subject to shareholder approval, a free attaching 2.5 cent
option with a 10 August 2018 expiry for each participating share. The SPP will be capped at
$400,000; and
4. The Company issued 6,000,000 ordinary shares to a consultant.
Other than the matters disclosed above, there has not arisen in the interval between the end of the financial
year and the date of this report any item, transaction or event of a material and unusual nature likely, in the
opinion of the Directors of the Company, to affect significantly the operations of the Group and the results of
those operations.
2017 Annual Financial Report
66
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
NOTE 18: AUDITOR’S REMUNERATION
Amounts received or due and receivable by the auditors
for:
Audit or review of the financial reports of the Company
Anson Resources Limited
Consolidated
2017
2016
$
$
25,334
16,028
25,334
16,028
NOTE 19: FINANCIAL RISK MANAGEMENT
The Group’s financial situation is not complex. Its activities may expose it to a variety of financial risks in the
future: market risk (including currency risk and fair value interest rate risk), credit risk, liquidity risk and cash
flow interest rate risk. At that stage the Group’s overall risk management program will focus on the
unpredictability of the financial markets and seek to minimise potential adverse effects on the financial
performance of the Group.
Risk management is carried out under an approved framework covering a risk management policy and
internal compliance and control by management. The Board identifies, evaluates and approves measures to
address financial risks.
The Consolidated and the Parent entity hold the following financial instruments:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Deposits paid
Investments
Financial Liabilities
Trade and other payables
Lease liabilities
(a)
Market risk
Consolidated
2017
$
2016
$
521,784
22,280
13,594
85,287
456,447
24,910
-
896,501
642,295
1,377,858
107,211
10,331
117,542
21,075
-
21,075
Cash flow and fair value interest rate risk
The Group’s main interest rate risk arises from cash deposits to be applied to exploration areas of interest.
Deposits at variable rates expose the Group’s to cash flow interest rate risk. Deposits at fixed rates expose
the Group to fair value interest rate risk. During the financial year, the Group’s deposits at variable rates were
denominated in Australian Dollars and United States Dollars.
2017 Annual Financial Report
67
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 19: FINANCIAL RISK MANAGEMENT (continued)
(a)
Market risk (continued)
As at the reporting date, the Group had the following variable rate deposits and there were no interest rate
swap contracts outstanding:
2017
weighted
average
interest
rate
2016
weighted
average
interest
rate
2017
Balance
2016
Balance
%
$
%
$
Cash and cash equivalents
0.72%
521,784
0.00%
456,447
Net exposure to cash flow interest rate risk
521,784
456,447
The Group analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated taking
into account the renewal of existing positions.
Foreign currency risk
As a result of USD cash deposits, the Group's statement of financial performance can be affected
significantly by movements in the US$/A$ exchange rates.
The Group also has transactional currency exposures. Such exposure arises from sales or purchases by an
operating entity in currencies other than the functional currency.
At 30 June 2017, the Group had the following exposure to US$ foreign currency expressed in A$
equivalents, which are not designated in cash flow hedges:
Financial Assets
Cash and cash equivalents
Financial Liabilities
Trade and other payables
Consolidated
2017
$
2016
$
12,009
12,009
408,689
408,689
-
-
At 30 June 2017, the Group had the following exposure to Canadian Dollar foreign currency expressed in A$
equivalents, which are not designated in cash flow hedges:
Financial Assets
Investments
Financial Liabilities
Trade and other payables
Consolidated
2017
$
2016
$
85,287
85,287
896,501
896,501
-
-
2017 Annual Financial Report
68
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 19: FINANCIAL RISK MANAGEMENT (continued)
(a)
Market risk (continued)
Other price risk
Other price risk relates to the risk that the fair value of future cash flows on a financial instrument will
fluctuate because of changes in market prices due to demand and supply factors (other than those arising
from interest rate or currency risk).
The Group is exposed to securities price risk on an available-for-sale investment in a company listed on the
TSX Venture Exchange in Canada.
The Group’s listed investment is held in the following sector at the end of the year:
Metals and mining
Sensitivity analysis
Consolidated
2017
100%
2016
100%
The following table illustrates sensitivities to the Group’s exposures to interest rates, exchange rates and
equity prices:
Year ended 30 June 2017
+/- 0% in interest rates
+/- 20% in $A/$US
+/- 5% in $A/$CAD
+/- 50% in listed investments
Year ended 30 June 2016
+/- 0% in interest rates
+/- 20% in $A/$US
+/- 5% in $A/$CAD
+/- 50% in listed investments
(b)
Credit risk
Consolidated
Profit
$
-
2,402
-
-
Equity
$
-
2,402
4,264
42,644
Consolidated
Profit
$
-
81,738
-
-
Equity
$
-
81,738
44,825
448,251
The Group has no significant concentrations of credit risk. Cash transactions are limited to high credit quality
financial institutions.
Credit risk arises from cash and cash equivalents, and deposits with banks and financial institutions, as well
as credit exposures on outstanding receivables and committed transactions. In relation to other credit risk
areas management assesses the credit quality of the customer, taking into account its financial position, past
experience and other factors.
The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets as
summarised at the beginning of this note.
2017 Annual Financial Report
69
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 19: FINANCIAL RISK MANAGEMENT (continued)
(c)
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an
adequate amount of committed credit facilities and the ability to close-out market positions. The Group
manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity
profiles of financial assets and liabilities. The Group will aim at maintaining flexibility in funding by accessing
appropriate committed credit lines available from different counterparties where appropriate and possible.
Surplus funds when available are generally only invested in high credit quality financial institutions in highly
liquid markets.
The Group has no borrowing facilities.
(d)
Capital Risk Management
The Company manages its capital to ensure that it will be able to continue as a going concern while
maximising the return to shareholders. The capital structure of the Company consists of equity attributable
to equity holders, comprising issued capital, reserves and accumulated as disclosed in Notes 11 and 12.
The Board reviews the capital structure on a regular basis and considers the cost of capital and the risks
associated with each class of capital. The Company will balance its overall capital structure through new
share issues as well as the issue of debt, if the need arises.
NOTE 20: PARENT ENTITY INFORMATION
(a)
Information relating to Anson Resources Limited
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Contributed equity
Reserves
Accumulated losses
Total shareholders’ equity
Loss for the parent entity
Total comprehensive loss of the parent entity
(b)
Guarantees
2017
$
2016
$
643,053
78,150
481,358
941,593
721,203
1,422,951
(111,489)
(6,987)
(118,476)
(23,308)
-
(23,308)
602,727
1,399,643
8,622,496
151,256
(8,171,025)
6,952,930
872,823
(6,426,110)
602,727
1,399,643
(1,744,915)
(1,329,838)
(2,483,628)
(594,762)
No guarantees have been entered into by the Company in relation to the debts of its subsidiaries.
(c) Commitments
Commitments of the Company as at reporting date are disclosed in Note 14 to the financial
statements.
2017 Annual Financial Report
70
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
NOTE 21: ASSET ACQUISITIONS
Acquisitions in 2017
Acquisition of Western Cobalt Pty Ltd
Anson Resources Limited
On 15 March 2017, the Group acquired 100% of the voting shares of Western Cobalt Pty Ltd, an unlisted
company based in Australia, which owns exploration licence E9/2218 (under application) located 800km
north of Perth and 300km east of Geraldton in Western Australia.
The consideration payable was $120,000 inclusive of acquiring the equity in the company and assuming
debts of the company.
Details of the fair value of the assets and liabilities acquired as at 15 March 2017 are as follows:
Consideration comprises:
Cash
Share based payment
Total consideration
Assets
Exploration assets from the excess of consideration paid
Total consideration
$
50,000
70,000
120,000
120,000
120,000
Acquisitions in 2016
Acquisition of Rhodes Resources Pty Ltd
On 23 December 2015, the Group acquired 100% of the voting shares of Rhodes Resources Pty Ltd, an
unlisted company based in Australia, which owns exploration licence E66/89 located 130 kilometres from
Geraldton in Western Australia.
The consideration payable was $190,000 inclusive of acquiring the equity in the company and assuming
debts of the company.
Details of the fair value of the assets and liabilities acquired as at 23 December 2015 are as follows:
Consideration comprises:
Cash
Share based payment
Total consideration
Assets
Exploration assets from the excess of consideration paid
Total consideration
As at 30 June 2017, these assets were tested for impairment (see Note 22).
$
50,000
140,000
190,000
190,000
190,000
2017 Annual Financial Report
71
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Anson Resources Limited
NOTE 22: EXCESS OF CONSIDERATION PAID ALLOCATED TO TENEMENTS
Excess of consideration paid allocated to tenements acquired through business combinations or asset
acquisitions (see Note 21) is allocated to the exploration cash generating unit (CGU) for impairment testing.
The Group performed its annual impairment test in June 2017. The Group considers the relationship
between its market capitalisation and its book value, among other factors, when reviewing for indicators of
impairment. As at 30 June 2017, projects of the Group could not support positive cash flows and accordingly
the excess of consideration paid allocated to tenements acquired in an asset acquisition was impaired.
2017 Annual Financial Report
72
ASX ADDITIONAL INFORMATION
Additional information required by the Australian Stock Exchange Ltd and not shown elsewhere in this report
is as follows. The information is current as at 14 August 2017.
Anson Resources Limited
(A)
DISTRIBUTION OF EQUITY SECURITIES
Ordinary share capital
225,504,694 fully paid ordinary shares are held by 534 individual shareholders
All issued ordinary shares carry one vote per share and carry the rights to dividends.
The number of security holders by size of holding are:
1
–
1,001 –
5,001 –
10,001 –
100,001
1,000
5,000
10,000
100,000
and over
Holding less than a marketable parcel
(B)
SUBSTANTIAL SHAREHOLDERS
Fully paid
ordinary shares
20
7
113
216
178
534
270
Ordinary shareholders
Number
Percentage
Fully paid
Wu Xiaonian
Bruce Richardson
Ouro PL
32,191,794
15,620,451
12,320,000
60,132,245
14.28%
6.93%
5.46%
26.67%
2017 Annual Financial Report
77
ASX ADDITIONAL INFORMATION (continued)
(C)
TWENTY LARGEST SECURITY HOLDERS
Anson Resources Limited
Ordinary shareholders
WU XIAONIAN
OURO PL
CHIFLEY PORTFOLIOS PL
RICHARDSON BUSINESS CONS
KLEIN MATTHEW STEVEN
NEW CITY ENTPS PL
WO WAH INDUSTRIAL INV LTD
RICHARDSON BRUCE
APEDAILE STEVEN J + M L
GU RUIRUI
BELLAIRE CAP PL
MCLEOD BRUCE
XU JIAXUN
VBASS PL
HEWITT GABRIEL
THREEBEE INV GRP PL
DI JINYI
LIU BIN
FIRST INV PTNRS PL
RHODES CAP PL
Fully paid
Number
32,191,794
12,320,000
11,275,000
10,440,000
8,000,000
7,696,000
6,000,000
5,180,451
4,750,000
4,454,000
4,000,000
3,682,740
3,392,998
3,000,001
3,000,000
2,700,000
2,660,000
2,600,000
2,500,000
2,250,000
132,092,984
Percentage
14.28%
5.46%
5.00%
4.63%
3.55%
3.41%
2.66%
2.30%
2.11%
1.98%
1.77%
1.63%
1.50%
1.33%
1.33%
1.20%
1.18%
1.15%
1.11%
1.00%
58.58%
(D)
UNQUOTED EQUITY SECURITY HOLDINGS GREATER THAN 20%
21 September 2018, 5.5 cent options
Borg Geoscience Pty Ltd
(E)
MINERAL TENEMENTS
The Group holds the following tenements:
Options
Number
500,000
500,000
Percentage
100%
100%
Project
Ajana
Lease
E66/89
Commodity Holder
Graphite
Rhodes Resources Pty
Ltd
Ajana
E66/94
Graphite
Ajana
E66/100
Graphite
Hooley Well
E9/2218
Hooley Well
E9/2219
Cobalt
Cobalt
Anson Resources
Limited
Anson Resources
Limited
Western Cobalt Pty Ltd
Anson Resources
Limited
Locality Status
WA
Granted
WA
Granted
WA
Application
WA
WA
Application
Application
Paradox
Brine – ULI
Claims
89 placer
claims (i)
Paradox
Brine
202 placer
claims
Lithium
(i)
Lithium
A1 Lithium Inc
Utah,
USA
Utah,
USA
(i)
(ii)
2017 Annual Financial Report
78
ASX ADDITIONAL INFORMATION (continued)
Anson Resources Limited
(i) The Company currently holds a 10% interest in 89 Placer Claims in Utah, USA (the ULI
Project) and can earn further interests as follow:
(a) 40% by defining the location(s) for one or more drill holes, issuing a NI 43-101 technical
report, and expending US$666,000; and then
(b) 20% by drilling and logging one or more holes, issuing a NI 43-101 technical report, and
expending US$2,330,000.
At the date of this Report, the holder of the current 90% interest had not completed the
formalities to transfer the claims to the joint venture company (Paradox Lithium LLC)
established for this purpose.
These claims are referred to as ULI-13, ULI-14, ULI-14S, ULI-15, ULI15S, ULI16, ULI16S,
ULI-30, ULI-31, ULI-32, ULI-33, ULI-34, ULI-39, ULI-40, ULI-41, ULI-57, ULI-58, ULI-59, ULI-
60, ULI-61, ULI-62, ULI-68, ULI-69, ULI-70, ULI-71, ULI-77, ULI-78, ULI-79, ULI-81, ULI-82,
ULI-35, ULI-36, ULI-37, ULI-38, ULI-42, ULI-43, ULI-54, ULI-55, ULI-56, ULI-60-E, ULI-61-E,
ULI-62-E, ULI-63, ULI-64, ULI-64 N, ULI-65, ULI-65 W, ULI-66, ULI-67, ULI-84, ULI-85, ULI-
86, ULI-87, ULI-80, ULI-81 W, ULI-83, ULI-88, ULI-89ULI-90, ULI-91, ULI-92, ULI-93, ULI-93
E, ULI-94, ULI-95, ULI-96, ULI-97, ULI-97 E, ULI-98, ULI-98 N, ULI-99, ULI-100, ULI-101, ULI-
102, ULI-102 N, ULI-103, ULI-104, ULI-105, ULI-105 N, ULI-106, ULI-107, ULI-107 N, ULI-
108, ULI-109, ULI-110, ULI-111, ULI-112, ULI-113, and ULI-114.
(ii) The Company currently holds a 100% interest in 202 Placer Claims in Utah, USA. Under the
terms of the earn-in agreement referred to in point (i) above for the ULI Project, these placer
claims may be subject to area of interest provisions of the agreement to earn-into the ULI
Project.
These claims are referred to as ULI201, ULI202, ULI203, ULI204, ULI205, ULI206, ULI207,
ULI208, ULI209, ULI210, ULI211, ULI212, ULI213, ULI214, ULI215, ULI216, ULI217, ULI218,
ULI219, ULI220, ULI221, ULI222, ULI223, ULI224, ULI225, ULI226, ULI227, ULI228, ULI229
ULI230, ULI231, ULI232, ULI233, ULI234, ULI235, ULI236, ULI237, ULI238, ULI239, ULI240,
ULI241, ULI242, ULI243, ULI244, ULI245, ULI246, ULI247, ULI248, ULI249, ULI250, ULI251,
ULI252, ULI253, ULI254, ULI255, ULI256, ULI257, ULI258, ULI259, ULI260, ULI261, ULI262,
ULI263, ULI264, ULI265, ULI266, ULI267, ULI268, ULI269, ULI270, ULI271, ULI272, ULI273,
ULI274, ULI275, ULI276, ULI277, ULI278, ULI279, ULI280, ULI281, ULI282, ULI283, ULI284,
ULI285, ULI286, ULI287, ULI288, ULI289, ULI290, ULI291, ULI292, ULI293, ULI294, ULI295,
ULI296, ULI297, ULI298, ULI299, ULI300, ULI301, ULI302, ULI303, ULI304, ULI305, ULI306,
ULI307, ULI308, ULI309, ULI310, ULI311, ULI312, ULI313, ULI314, ULI315, ULI316, ULI317,
ULI318, ULI319, ULI320, ULI321, ULI322, ULI323, ULI324, ULI325, ULI326, ULI327, ULI328,
ULI329, ULI330, ULI331, ULI332, ULI333, ULI334, ULI335, ULI336, ULI337, ULI338, ULI339,
ULI340, ULI341, ULI342, ULI343, ULI344, ULI345, ULI346, ULI347, ULI348, ULI349, ULI350,
ULI351, ULI352, ULI353, ULI354, ULI355, ULI356, ULI357, ULI358, ULI359, ULI360, ULI361,
ULI362, ULI363, ULI364, ULI365, ULI366, ULI367, ULI368, ULI369, ULI370,ULI371, ULI372,
ULI373, ULI374, ULI375, ULI376, ULI377, ULI378, ULI379, ULI380, ULI381, ULI382, ULI383,
ULI384, ULI385, ULI386, ULI387, ULI388, ULI389, ULI390, ULI391, ULI392, ULI393, ULI394,
ULI395, ULI396, ULI397, ULI398, ULI399, ULI400, ULI401, and ULI402.
2017 Annual Financial Report
79