(ABN 46 136 636 005)
Financial Report
for the Year Ended 30 June 2018
Anson Resources Limited
Index
Corporate Information
Directors’ Report
Auditor’s Independence Declaration
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
19
20
21
22
23
24
53
54
57
2018 Annual Financial Report
Anson Resources Limited
Corporate Information
ABN 46 136 636 005
Directors
Bruce Richardson
Managing Director
Peter (Greg) Knox
Non-Executive Director
Company Secretary
Kim Hogg
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
2018 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 2018.
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 Andrew Richardson, B.A (Hons)
Managing Director
Mr Richardson has a proven track record of over ten 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 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 other listed entities 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 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 other listed entities in the past 3 years: None
Bruce William McLeod, B.Sc (Maths), M.Com (Econ)
Non-Executive Chairman, deceased on 11 September 2018
Mr McLeod passed away on 11 September 2018. He was a foundation shareholder of the Company in 2008,
Non-Executive Director from April 2009, and was appointed Chairman of the Board when the Company listed
in 2010.
Mr McLeod had extensive experience in the Australian capital markets. For more than 25 years he was
involved in raising debt and equity capital for a number of resource, property projects and companies, as well
as the takeover and rationalisation of listed and unlisted companies. Prior to that he had spent 6 years with a
major international bank, where he was executive director, responsible for the financial and capital markets
operations.
2018 Annual Financial Report
2
Anson Resources Limited
Directors’ Report (continued)
Directors (continued)
Directors’ interests in securities of the Company and related bodies corporate
The relevant interests of each Director in the securities of Anson Resources Limited at the date of this
Report are as follows:
Fully paid
ordinary shares
No.
Performance
Rights
No.
21,197,723
13,708,270
6,000,000
2,000,000
B Richardson
P Knox
Company Secretary
Mr Kim Hogg – appointed 20 February 2018
Mr Hogg completed his Bachelor of Commerce in 1984 at the University of Western Australia and has
worked in a number of diverse industries in various senior management and accounting roles. He has been a
principal of an accounting practice for more than 20 years with a specialist involvement in the preparation of
prospectuses, coordinating the listing and due diligence processes and acting as company secretary for
listed entities.
Mr Hogg is currently the secretary of a number of ASX-listed companies and provides corporate and
accounting services to those clients.
Mr Michael van Uffelen – resigned 2 January 2018
Ms Nevenka Jackson – appointed 2 January 2018; resigned 16 February 2018
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 State of Utah in the United States of America and the mid-west of
Western Australia ; and
Searching for further resource projects.
2018 Annual Financial Report
3
Anson Resources Limited
Directors’ Report (continued)
Operating and financial review
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.
At the date of this Report, the Paradox Lithium Brine Project consists of 1,317 placer claims (see Figure 1)
for a total of 11,373 hectares. In addition, there is one Oil and Gas lease and one Industrial Permit approved,
which is located on the oil lease and is planned to be the site of the pilot plant.
Figure 1: Map Showing the Location Paradox Lithium Brine project claims.
The claims contain numerous oil wells which are close to wells with historically recorded lithium values.
Access to these areas is provided by existing roads which pass through the claims. The roads do not require
any upgrading, and are well maintained, thereby enabling an exploration program to commence once
government approvals have been granted.
Historically, two wells within 1km of the south end of the claims (Long Canyon No.1 and White Cloud No.2)
were assayed for lithium within the Clastic Zone 31 horizon, and showed lithium values of up to 1,700ppm.
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).
2018 Annual Financial Report
4
Anson Resources Limited
Directors’ Report (continued)
The fractured clastic zones form an excellent reservoir for brines derived from underlying evaporite units.
The fracturing is caused by salt flowage, and it is possible that, when brine is removed from these zones, salt
will flow into voids from which brine has been removed. This would help maintain high reservoir pressure and
assist in a high ultimate recovery of brine. Cores obtained from wells in the area have exhibited fractures
filled with salt when brine has not been present.
Ownership
In September 2016 the Company agreed to earn into a prospective lithium project (Project) in Utah, USA
comprising of 87 Placer Claims. Legal agreements were completed in March 2017 with Voyageur Minerals
Inc providing Anson’s subsidiary company, A1 Lithium Inc, with the ability to earn up to a 70% interest in the
Project, whilst also retaining an option to purchase the remaining 30% interest.
A1 Lithium Inc earned an initial 10% interest in the Project on signing the joint venture agreement with
Voyageur and through payment of an up-front fee of US$75,000.
A1 Lithium Inc earned a further 40% interest in the Project through completion of agreed milestones, which
included defining the location(s) for one or more drill holes, completing a NI 43-101 technical report, and
expending US$666,000 (any underspent portion of which could be deferred to the next stage of the earn-in
without the additional 40% interest being affected).
A1 Lithium Inc can earn a further 20% Project interest by drilling and logging one or more holes, issuing a NI
43-101 technical report, and expending US$2,330,000 by March 2020.
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:
• Up to 30 June 2018, an additional 692 claims were staked. Since that time, a further 334 placer claims
(CLOUD III) have been staked, creating a land package for lithium-rich brines of 11,373 hectares
covering a large area of the Northern Paradox Basin. The recently acquired claims contain several
historical wells which are considered prospective for re-entry for sampling the minerals contained in the
targeted brine zones, and can be used in the future as part of an exploration program aimed at defining a
JORC resource.
• The Company’s first industrial grade lithium carbonate product, see Figure 2 below, was produced by one
of the Company’s two consultant metallurgical laboratories, Lilac Solutions.
Figure 2: Anson’s first vial of lithium carbonate product.
• SRK Consulting was appointed to assist reviewing the pathway to achieving a maiden JORC resource.
SRK is reviewing the existing data compiled from recent exploration programs and the historic drilling and
sampling undertaken, to identify the additional work required to achieve a maiden JORC resource. This
gap analysis is expected to be completed in October, 2018.
2018 Annual Financial Report
5
Anson Resources Limited
Directors’ Report (continued)
• The NOI application to drill the Long Canyon A1 drill site was granted. The proposed drillhole location is
located 800m from the Roberts Rupture and 1300m from the historic lithium assay of 500ppm Li.
• A 3-stage metallurgical test work program, conducted by Outotec (Finland), commenced with bench-top
processing of a brine sample which will be used in the design of an in-field pilot plant, to further validate
that lithium and other minerals can be extracted from the brine. The work is ongoing with results expected
later in the year.
• The Cane Creek 32-1 was re-opened to facilitate measurement of continued flow rates of the brine
aquifer for future modelling, and bulk samples were collected for processing in bench-top plants to
validate earlier test work which had shown that lithium carbonate and other products could be extracted
or produced from the brine.
• The Cane Creek 32-1 operating well was purchased and the target Clastic horizons were sampled.
Artesian flow resulted from Clastic Zone 29 with a flow rate of 25 gallons per minute. The downhole
pressure was calculated as 5,595psi for 10.7 lb/g brine. The flow continued for 6 hours before it was
sealed to continue sampling the remaining targeted clastic horizons.
• Anson was granted an industrial permit to lease 15 acres by the State of Utah School and Institutional
Trust Lands Administration (SITLA). It is intended to locate the in-field pilot plant on this lease.
• Drilling was conducted at the Gold Bar Unit 2 well to collect brine from Clastic Zones 17, 29, 31 and 33 for
a metallurgical test work program. Samples of the brine were collected and assayed from Clastic Zones
17, 29 and 31 during the re-entry drilling. No sample was collected from Clastic Zone 33.
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:
Following drilling programs carried out in the previous year, interpretation of data, including the acquired soil
sampling results, is ongoing to assist in planning the next stages of exploration.
The 100% owned Mary Springs tenement, E66/94, contained an historic lead resource which was upgraded
to a JORC 2012 Mineral Resource estimate and is summarised in Table 1. The global Indicated and Inferred
Resource estimate is 390,000 tonnes grading at 6.5% Pb. Auralia carried out the Ore Block Modelling and
the interpretative work using a 1% lead cut-off, see ASX announcement 25 October 2017.
Category
Indicated
Inferred
Total
BCM
Tonnes % Pb BCM
Tonnes % Pb BCM
Tonnes % Pb
+ 1% Pb
80,000
240,000
6.6
50,000
150,000
6.2
130,000
390,000
6.5
Table 1: Mary Springs Mineral Resource Estimate, JORC 2012.
Zones of Pb-Zn-Cu-Ag rich mineralisation have been intersected in recent drilling but were not included in
modelling the resource. Further drilling may enable the zinc, copper and silver bearing zones to be modelled
as part of a future resource.
2018 Annual Financial Report
6
Anson Resources Limited
Directors’ Report (continued)
Numerous targets have been identified at the Mary Springs Project area using the historic geophysical and
lead geochemical data. A soil sampling program was completed in 2010 consisting of 426 samples and was
completed over an area covering 3.75 km2. The program identified additional lead exploration targets which
run parallel to the Mary Springs Resource.
The soil sampling program also identified copper and zinc geochemical anomalies. These anomalies run
parallel to both the lead mineralisation and also the dolerite dyke intrusions.
Figure 3: Zn (ppm) soil geochemistry overlaying the historic geophysical Pb geochemical anomalies.
A Versatile Time Domain Electromagnetic (VTEM) aerial survey was flown by Anson over the entire Ajana
Project area. The survey identified 31 anomalies in the area, 8 of these were located at the Mary Springs
Prospect. The additional VTEM anomalies continue to the south of Mary Springs, covering the majority of the
Ajana Project area. The anomalies, both soil and VTEM, provide additional exploration targets and will
require follow up work in the future.
Hooley Wells Nickel-Cobalt Laterite – Western Australia
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 and E9/2219 contain historical shallow drilling which has
intersected nickel and cobalt laterites.
2018 Annual Financial Report
7
Directors’ Report (continued)
The project contains extensive cobalt mineralisation over an area of 1.5km * 0.8km. Results of some historic
drilling are shown below.
Anson Resources Limited
• HAC004, 22m @ 0.97% Ni & 0.06% Co & 1.05% Cr
o
Incl. 4m @ 1.41% Ni & 0.11% Co & 1.99% Cr
• HAC003, 33m @ 0.5% Ni & 0.04 % Co & 0.55% Cr
o
Incl. 8m @ 0.84% Ni & 0.10% Co & 0.22% Cr
There is also a possible nickel sulphide deposit that was identified by an IP survey. A diamond hole
attempted to intersect the IP anomaly but did not reach target depth.
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 shares held by Anson were valued at
$117,373 at 30 June 2018.During the year, the Company sold 300,000 shares, realising a small loss.
Operating results for the year
Net loss attributable to equity holders of the parent for the year ended 30 June 2018 was $4,354,151 (2017:
loss of $1,744,915) of which $2,185,962 (2017: $812,795) was spent on exploration and evaluation activities
and $395,854 (2017: $341,362) was incurred in acquiring projects. The loss per share was 1.28 cents (2017:
loss of 1.1 cents).
Cash on hand at 30 June 2018 totalled $1.7 million (2017: $0.5 million).
Since year-end, the Company raised an additional $3.91 million in cash through a share placement and the
exercise of options.
Significant changes in the state of affairs
During the year the Company raised an additional $5,235,885 in cash through the issue of shares as follows:
Shares issued at $0.088 each pursuant to share placement
Shares issued at $0.03 each pursuant to share placement
Shares issued at $0.011 each pursuant to share placement
Shares issued at $0.011 each pursuant to SPP
Shares issued upon exercise of options at $0.025 each
Shares issued upon exercise of options at $0.055 each
Shares issued upon exercise of options at $0.03 each
20,000,000
20,000,000
41,996,484
69,451,365
64,893,564
500,000
4,000
$1,760,000
$600,000
$461,961
$763,965
$1,622,339
$27,500
$120
Refer Note 11 to the Financial Statements for further details. The Company continued with exploration
activities on its tenement holdings, focussing on its lithium project located in Utah, USA. Refer to the
operating and financial review contained in this Report for further details.
Significant events after balance date
The following events have occurred after balance date:
1. 56,430,434 options were exercised at 2.5 cents each, raising an additional $1.41 million in cash. The
remaining 123,851 options expired without being exercised on 10 August 2018;
2. On 18 July 2018, the Company completed a private placement of 22,727,273 shares at $0.11 per share,
accompanied on a one-for-four basis by unlisted options exercisable at $0.20 and with a 2-year life
(Placement Options), raising $2.5 million before costs. The lead manager was paid a fee of 6% of gross
proceeds and 10 million Placement Options;
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.
2018 Annual Financial Report
8
Anson Resources Limited
Directors’ Report (continued)
Likely developments and expected results
The Group intends to continue exploration and to develop its projects, specifically focusing on its 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.
Share Options and Performance Rights
Options and performance rights granted
The following options and performance rights were granted since the end of the previous financial year:
Class
Grant Date
Expiry Date
Exercise
Price
Number Issued
Listed Options (ASNOB)
2 October 2017
10 August 2018
$0.025
121,447,849
Unlisted Options
Unlisted Options
18 July 2018
20 July 2018
18 July 2020
18 July 2020
Performance Rights
20 April 2018
20 April 2025
$0.20
$0.20
Nil
5,681,819
10,000,000
10,000,000
Options exercised and performance rights vested
The following options were exercised and performance rights vested during the year ended 30 June 2018:
Class
Grant Date
Expiry Date
Exercise
Price
Number
Exercised/vested
Listed Options (ASNOA)
Various Dates
13 July 2017
$0.03
4,000
Listed Options (ASNOB)
2 October 2017
10 August 2018
$0.025
64,893,564
Unlisted options
22 March 2017
21 September 2018
$0.055
Performance rights
10 December 2014
10 December 2021
Nil
500,000
5,885,000
The following options were exercised after 30 June 2018 and up to the date of this report:
Class
Grant Date
Expiry Date
Exercise
Price
Number of
Options Exercised
Listed Options (ASNOB)
2 October 2017
10 August 2018
$0.025
56,430,434
2018 Annual Financial Report
9
Anson Resources Limited
Directors’ Report (continued)
Share Options and Performance Rights (continued)
Options and performance rights on issue
At the date of this report, unissued ordinary shares of the Company under option are:
Class
Grant Date
Expiry Date
Unlisted Options
18 July 2018
18 July 2020
Unlisted Options
20 July 2018
18 July 2020
Performance rights
20 April 2018
20 April 2025
Exercise
Price
$0.20
$0.20
Nil
Number of
Options
5,681,819
10,000,000
10,000,000
These options do not entitle the holder to participate in any share issue of the Company or any other entity.
Indemnification and insurance of Directors and Officers
The Company has agreed to indemnify 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 $10,000.
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
5
5
5
4
5
5
Auditor Independence and Non-Audit Services
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act
2001 is set out on page 19.
Non-Audit Services
The Company’s auditor, Stantons International, did not provide any non-audit services to the Company
during the year.
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.
2018 Annual Financial Report
10
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited)
This remuneration report for the year ended 30 June 2018 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 executive directors, Chief Executive Officer
(CEO), Chief Finance Officer (CFO) and other senior management of the Company.
Individual key management personnel disclosures
The following were key management personnel of the Group at any time during the financial year and unless
otherwise indicated were key management personnel for the entire year:
(i) Directors
Non-executive Chairman (deceased on 11 September 2018)
B McLeod
B Richardson Managing Director
G Knox
Non-executive Director
(ii) Executives
M van Uffelen Company Secretary & CFO (resigned on 2 January 2018)
N Jackson
Company Secretary & CFO (appointed on 2 January 2018; resigned on 16 February
2018)
Company Secretary (appointed 20 February 2018)
K Hogg
The Remuneration Report is set out under the following main headings:
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Principles used to determine the nature and amount of remuneration
Details of remuneration for the year ended 30 June 2018
Details of remuneration for the year ended 30 June 2017
Service agreements
Share-based compensation
Option holdings of key management personnel
Share holdings of key management personnel
Loans to key management personnel
Other transactions and balances with key management personnel
Use of remuneration consultants
Voting and comments made at the Company’s 2017 Annual General Meeting
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 Ltd (the “Company”).
2018 Annual Financial Report
11
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
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.
To this end, the Group embodies the following principles in its compensation framework:
• Provide competitive rewards to attract high calibre executives;
•
• Significant portion of executive compensation ‘at risk’, dependent upon meeting pre-determined
Link executive rewards to shareholder value;
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. For the purposes of assisting in incentivising 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 of that plan, there exists a direct link between the creation of shareholder
wealth performance and the financial rewards for Directors and key management personnel.
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.
2018 Annual Financial Report
12
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
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 2018 is detailed below.
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.
2018 Annual Financial Report
13
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
B.
Details of remuneration for the year ended 30 June 2018
Salary &
Fees
Non-
monetary
benefits1 Superannuation
Share-based
payments
Total
Proportion of
remuneration
performance
related
%
Directors
Non-Executive
B McLeod
P G Knox
Executive
55,000
213,3942
B Richardson
Total Directors
300,000
568,394
Other KMPs
M van Uffelen
N Jackson
K Hogg
Total other KMPs
56,000
19,608
14,738
90,346
2,500
2,500
2,500
7,500
1,274
308
918
2,500
-
3,470
-
3,470
-
-
-
-
86,075
92,571
143,575
311,935
255,973
558,473
434,619
1,013,983
6,531
-
-
6,531
63,805
19,916
15,656
99,377
Total KMPs
658,740
10,000
3,470
441,150
1,113,360
60%
30%
46%
43%
10%
-
-
7%
40%
C.
Details of remuneration for the year ended 30 June 2017
Salary &
Fees
Non-
monetary
benefits1 Superannuation
Share-based
payments
Total
Proportion of
remuneration
performance
related
%
Directors
Non-Executive
B McLeod
P G Knox
Executive
B Richardson
Total Directors
Other KMPs
55,000
78,4932
1,119
1,635
-
1,157
1,390
2,772
57,509
84,057
201,083
334,576
4,063
6,817
-
1,157
3,691
208,837
7,853
350,403
M van Uffelen
78,430
1,583
Total other KMPs
78,430
1,583
-
-
1,390
81,403
1,390
81,403
Totals KMPs
413,006
8,400
1,157
9,243
431,806
2%
3%
2%
2%
2%
2%
2%
1 Represents Directors & Officers liability insurance premium paid for the year.
2
Includes remuneration of $176,885 (2017: $39,650) via Attadale Land Access Pty Ltd, a company of which Mr Knox
is a director and shareholder.
2018 Annual Financial Report
14
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
D.
Service agreements
Employment contract
The Managing Director, Mr Richardson is employed under contract. The current employment contract
commenced on 1 July 2009 and expired on 30 June 2018. It was extended for a further 12 months to 30
June 2019.
The main terms of the employment contract with Mr Richardson are as follows:
• Remuneration of $300,000 p.a. plus GST; and
• Either party is entitled to terminate the agreement by giving three months’ notice.
Non-executive Directors’ fees
The fee for the Non-executive Chairman, Mr McLeod, of $55,000 per annum was set by the Board in 2010.
The fee for the Non-executive Director, Mr Knox, of $40,000 per annum inclusive of superannuation was set
by the Board in 2011. In addition to the director fees, Mr Knox is paid $80 per hour for any additional services
provided to the Company above his director’s duties. The Company also pays Attadale Land Access Pty Ltd
(an entity controlled by Greg Knox) a daily fee of $650 for geological services.
Company Secretarial & CFO fees
The Company Secretary, Mr Kim Hogg, is engaged by the Company through a consultancy arrangement
where the service provider, Townshend York Pty Ltd (a company in which Mr Hogg has an interest) is paid
an hourly fee of $200 for services provided. There is no written agreement in place and the arrangement may
be terminated at any time by either party.
Former Company Secretary & CFO, Mr Michael van Uffelen, was paid under contract with Black Tourmaline
Consulting, an entity in which Mr van Uffelen had a beneficial interest, for remuneration of $96,000 p.a. plus
GST.
Former Company Secretary & CFO, Ms Nevenka Jackson, was paid $75,000 p.a. including GST based on
working 2 days per week plus an additional hourly rate of $32 per hour for office management and external
communication work.
E.
Share-based compensation
Options granted to key management personnel
No options were granted as compensation during the year to KMPs.
No options vested during the year.
2018 Annual Financial Report
15
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
Performance rights issued to Key Management Personnel (KMP)
Details of rights over ordinary shares in the Company granted as compensation to key management
personnel during the year are as follows:
Name of KMP
Number of rights
granted during
the year
Vesting
condition
Grant date
Fair value at
grant date
Expiry date
B McLeod
2,000,000
see below
30 Nov 2017
0.095
20 Apr 2025
P G Knox
2,000,000
see below
30 Nov 2017
0.095
20 Apr 2025
B Richardson
6,000,000
see below
30 Nov 2017
0.095
20 Apr 2025
The vesting of the Performance Rights is subject to the following performance hurdles:
• 20% (Tranche F)
- successful completion of bench-top test work to produce battery grade lithium
carbonate equivalent.
• 20% (Tranche G) – commissioning an in-field pilot plant.
• 20% (Tranche H) - establishing a JORC or NI43-101 equivalent compliant Resource.
• 20% (Tranche I)
• 20% (Tranche J)
- securing a strategic investor to finance an on-site pilot plant program.
- completion of an on-site pilot testing program.
The initial undiscounted value of the performance rights is the value of an underlying share in the Company
as traded on ASX at the deemed date of grant of the performance right. As the performance conditions are
not market-based performance conditions, no discount is applied. The grant value of the performance rights
is $950,000. The value of the performance rights is recognised as an equity-based payment expense and
amortised over the estimated period during which the respective performance hurdles may be achieved. The
amount recognised as share-based payment expense for the performance rights issued to the KMPs during
the year was $441,150.
The table below shows the number of Performance Rights granted, vested and forfeited during the year.
Balance at
start of year
Granted
Vested
(shares
issued)
Balance at
date of
resignation
Balance at
end of year
Forfeited
Directors
B McLeod
B Richardson
P G Knox
Other KMPs
M van Uffelen (i)
2,000,000
885,000
2,350,000
6,000,000
1,765,000 2,000,000
(885,000)
(2,350,000)
(1,765,000)
885,000
-
(885,000)
5,885,000
10,000,000 (5,885,000)(ii)
-
-
-
-
-
N/A
N/A
N/A
-
-
2,000,000
6,000,000
2,000,000
N/A
10,000,000
(i) Resigned 2 January 2018;
(ii) The market value of the shares issued upon conversion of performance rights on 15 November 2017
was $676,775.
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.
2018 Annual Financial Report
16
30 June 2018
Directors
B McLeod
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
F.
Option holdings of key management personnel
The movement during the reporting period in the number of options over ordinary shares held directly,
indirectly or beneficially by each key management person, including their related parties, is as follows:
Balance
at start of
the year
Participation
in SPP
Options
Lapsed*
Balance at
date of
resignation
Balance at
end of the
year
Vested and
exercisable
740,340
1,363,636
(740,340)
B Richardson
2,092,000
1,363,636
(2,092,000)
P G Knox
1,536,000
1,363,635
(1,536,000)
N/A
N/A
N/A
1,363,636
1,363,636
1,363,636
1,363,636
1,363,635
1,363,635
Other KMPs
M van Uffelen
427,000
1,454,545
(427,000)
1,454,545
N/A
N/A
* These options were not granted as remuneration options, but were acquired pursuant to an entitlements
issue made by the Company in the year ended 30 June 2017.
G.
Share holdings of key management personnel
The movement during the reporting period in the number of ordinary shares in the Company held directly,
indirectly or beneficially by each key management person, including their related parties, is as follows:
Balance at
start of the
year
Issued upon
vesting of
performance
rights
On-market
acquisitions/
(disposals)
Participation
In SPP
Balance at
date of
resignation
Balance at end
of the year
5,932,740
885,000
-
1,363,636
B Richardson
15,182,000
2,350,000
573,451
1,363,636
P G Knox
9,216,000
1,765,000
-
1,363,635
N/A
N/A
N/A
8,181,376
19,834,087
12,344,635
Other KMPs
M van Uffelen
2,562,000
885,000
(945,955)
-
2,501,045
N/A
H.
Loans to Key Management Personnel
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.
On 27 February 2014, the Company issued 3,000,000 shares at 1.4 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 28 November 2013.
2018 Annual Financial Report
17
30 June 2018
Directors
B McLeod
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
26 September 2018
Board of Directors
Anson Resources Limited
Suite 4, Level 3,
1292 Hay Street,
West Perth, 6005
Dear Directors
RE: ANSON RESOURCES LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide
the following declaration of independence to the directors of Anson Resources Limited.
As Audit Director for the audit of the financial statements of Anson Resources Limited for
the year ended 30 June 2018, I declare that to the best of my knowledge and belief, there
have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours faithfully
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Samir R Tirodkar
Director
Liability limited by a scheme approved
under Professional Standards Legislation
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
Revenue from continuing operations
R&D tax incentive
Interest income
Expenses
Audit fees
Consultants
Depreciation expenses
Director’s fees
Employee benefits expenses
Exploration and development costs
Foreign exchange gain/(loss)
Gain on sale of property, plant and equipment
Gain/(loss) on sale of investments
Insurance
Office expenses
Project acquisition costs
Share-based payment expenses
Travel and accommodation
Other expenses
Loss from continuing operations before income tax
expense
Income tax expense
Consolidated
Note
2018
$
2017
$
18,610
8,259
26,869
(29,655)
(254,915)
(32,108)
(395,000)
-
(2,185,962)
(5,201)
4,583
(1,497)
(37,795)
(76,674)
(395,854)
(448,124)
(92,264)
(430,554)
-
3,530
3,530
(25,334)
(134,886)
(13,382)
(294,926)
(189,737)
(812,795)
(1,572)
4,357
376,516
(18,322)
(62,472)
(341,362)
(4,583)
(98,755)
(131,192)
(4,354,151)
(1,744,915)
-
-
18
13
2
3
Loss from continuing operations after income tax expense
(4,354,151)
(1,744,915)
Other Comprehensive Income:
Items that may be reclassified subsequently to profit or loss
Gain on sale of investments transferred to accumulated losses
Changes in fair value of available-for-sale financial assets
Exchange differences on translation of foreign operations
-
48,261
(46,723)
(376,516)
(362,197)
-
Total comprehensive loss for the year
(4,352,613)
(2,483,628)
Loss for the year attributable to members of the parent
entity
Total comprehensive loss for the year attributable to
members of the parent entity
(4,354,151)
(1,744,915)
(4,352,613)
(2,483,628)
Basic and diluted loss per share (cents per share)
5
(1.28)
(1.1)
The accompanying notes form part of these financial statements
2018 Annual Financial Report
20
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2018
Anson Resources Limited
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Available for sale investments
Other current assets
Total Current Assets
NON-CURRENT ASSETS
Trade and other receivables
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
Consolidated
Note
2018
$
2017
$
6
7
8
7
9
1,656,320
21,366
117,373
2,230
521,784
35,982
85,287
-
1,797,289
643,053
376,997
152,550
529,547
13,594
64,556
78,150
2,326,836
721,203
10
298,648
107,211
14(d)
14(d)
-
3,354
302,002
934
3,344
111,489
3,627
3,627
6,987
6,987
305,629
118,476
2,021,207
602,727
11
12
13,817,200
8,622,496
721,307
(12,517,300)
151,256
(8,171,025)
2,021,207
602,727
The accompanying notes form part of these financial statements
2018 Annual Financial Report
21
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
Cash flows from Operating Activities
R&D Tax incentive received
Payments to suppliers and employees
Payments for refundable exploration bonds
Payments for acquisition of projects
Interest received
Interest paid
Consolidated
Note
2018
$
2017
$
18,610
-
(3,219,749)
(1,650,195)
(368,840)
(386,889)
8,260
(755)
-
(271,362)
3,530
-
Net cash (used in) operating activities
6(i)
(3,949,363)
(1,918,027)
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
(131,786)
20,000
(2,824)
17,501
(55,428)
37,271
-
450,550
Net cash (used in) / provided by investing activities
(97,109)
432,393
Cash Flows from Financing Activities
Proceeds from the issue of shares/options
Capital raising costs
Net cash provided by financing activities
Net increase in cash held
Cash at the beginning of the financial year
Foreign exchange revaluation
5,260,054
(79,709)
1,659,109
(108,139)
5,180,345
1,550,970
1,133,873
65,336
521,784
663
456,447
1
Cash at the end of the financial year
6
1,656,320
521,784
The accompanying notes form part of these financial statements
2018 Annual Financial Report
22
Anson Resources Limited
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2018
Consolidated Group
Ordinary
Shares
Accumulated
Losses
Share
Based
Payment
Reserve
AFS
Investment
Reserve
Foreign
Currency
Translation
Reserve
$
$
$
$
$
Total
$
Balance at 1 July 2017
Loss attributable to members of the
parent entity
Change in value of available-for-
sale investments
Exchange differences on translation
of foreign subsidiaries
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners:
Shares issued under private
placements and share purchase plan
Exercise of options
Payment by employee for loan
funded shares
Share based payment for services
Share issue costs
Issue of performance rights
Performance rights vested
Options issued
8,622,496
(8,171,025)
153,886
(3,637)
1,007
602,727
-
-
-
-
(4,354,151)
-
-
(4,354,151)
3,585,926
-
-
-
-
-
-
1,649,959
7,876
(7,876)
21,931
338,800
(473,647)
-
71,735
-
-
-
-
-
-
-
-
-
-
448,124
(71,735)
200,000
-
-
(4,354,151)
48,261
48,261
-
(46,723)
(46,723)
48,261
(46,723)
(4,352,613)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,585,926
1,649,959
21,931
338,800
(473,647)
448,124
-
200,000
Balance at 30 June 2018
13,817,200 (12,517,300)
722,399
44,624
(45,716)
2,021,207
Balance at 1 July 2016
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
Transactions with owners in their
capacity as owners:
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
6,952,930
(6,426,110)
136,740
735,076
1,007
1,399,643
-
(1,744,915)
-
-
-
-
-
(1,744,915)
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
The accompanying notes form part of these financial statements
2018 Annual Financial Report
23
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
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 other than for certain financial assets which are carried at fair value.
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)
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 2017 but none of the new standards and amendments to
standards that are mandatory for the first time for the financial year beginning 1 July 2017 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.
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.
2018 Annual Financial Report
24
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b)
Application of new and revised Accounting Standards (continued)
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.
(c)
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).
(d)
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.
2018 Annual Financial Report
25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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
(e)
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.
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 may result 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.
Deferred taxation
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable
profit will be available against which the losses can be utilised. Significant management judgement is
required to determine the amount of deferred tax assets that can be recognised, base level of future
taxable profits together with future tax planning strategies.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only when management
considers that it is probable that sufficient future tax profits will be available to utilise those temporary
differences. Significant management judgement is required to determine the amount of deferred tax
assets that can be recognised, based upon the likely timing and the level of future taxable profits
over the next two years together with future tax planning strategies.
2018 Annual Financial Report
26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(f)
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.
(g)
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.
(h)
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.
(i)
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.
2018 Annual Financial Report
27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(j)
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.
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.
(k)
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.
2018 Annual Financial Report
28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(k)
Income tax (continued)
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.
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.
(l)
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.
2018 Annual Financial Report
29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(m)
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 2 to 5 years
Computer Equipment – over 2.5 years
Motor vehicles – over 5 years
Exploration Equipment – over 2 to 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.
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.
2018 Annual Financial Report
30
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(n)
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.
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.
2018 Annual Financial Report
31
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(o)
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.
(p)
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.
(q)
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.
When discounting is used, the increase in the provision due to the passage of time is recognised as
a borrowing cost.
2018 Annual Financial Report
32
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(r)
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.
(s)
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.
2018 Annual Financial Report
33
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(s)
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.
(t)
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.
(u)
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.
(v)
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.
2018 Annual Financial Report
34
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(w)
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 (i.e. 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 (i.e. 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 (i.e. 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.
2018 Annual Financial Report
35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(w)
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.
(x)
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.
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.
2018 Annual Financial Report
36
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 2: OTHER EXPENSES
Listing fees
Conference costs
Legal fees
Printing and postage
Share registry costs
Website and IT costs
Sundry expenses
Total other expenses
NOTE 3: INCOME TAX
(a) Income tax benefit
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 benefit and pre-tax
net loss
Loss before income tax benefit
Income tax calculated at 27.5%
Tax effect of:
Cost of equity settled awards
Sundry amounts
Section 40-880 deduction
Exploration acquisition costs incurred
Research and development tax offset
-
-
-
-
-
- Gain on sale of investments
-
Impairment expense
Anson Resources Limited
Consolidated
2018
$
2017
$
53,904
49,708
214,931
7,861
59,896
15,822
28,432
23,087
31,546
18,503
12,614
15,462
19,323
10,657
430,554
131,192
-
-
(4,354,151)
(1,744,915)
(1,197,392)
(479,852)
123,234
5,014
(6,513)
63,598
(5,118)
-
-
1,260
7,561
-
-
-
(103,542)
93,875
Future income tax benefit not brought to account
1,017,177
480,698
Income tax benefit
(c) Tax losses
-
-
Unused tax losses for which no deferred tax asset has been
recognised (as recovery is currently not probable)
Potential at 27.5%
3,155,554
2,138,377
(d) Unrecognised temporary differences
Temporary differences for which deferred tax assets have not been
recognised (at 27.5%):
-
-
Accruals
Section 40-880 deduction
Unrecognised deferred tax assets relating to the above temporary
differences
4,675
26,054
11,674
-
30,729
11,674
(e) Tax Rates
The potential tax benefit at 30 June 2018 in respect of tax losses not
brought into account has been calculated at 27.5%. The same rate
was applied for the year ended 30 June 2017.
2018 Annual Financial Report
37
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 4: SEGMENT REPORTING
Anson Resources Limited
The Group operates predominantly in the mineral exploration industry in Australia and USA. The Board has
determined that the Group has three reportable segments, being mineral exploration Australia, mineral
exploration USA and corporate.
Mineral
Exploration
Australia
$
Mineral
Exploration
USA
$
Corporate
$
Group
$
2018
Segment income
18,610
-
8,259
26,869
Segment result
(36,271)
(2,753,041)
(1,564,839)
(4,354,151)
Segment assets
Segment liabilities
2017
Segment income
-
-
-
514,746
1,812,090
2,326,836
223,816
81,813
305,629
-
3,530
3,530
Segment result
(309,617)
(503,178)
(932,120)
(1,744,915)
Segment assets
Segment liabilities
Geographical information
Australia
USA
-
-
-
-
721,203
721,203
118,476
118,476
Income
2018
$
26,869
-
26,869
2017
$
3,530
-
3,530
Geographical
non-current assets
2017
2018
$
$
55,256
474,291
529,547
78,150
-
78,150
NOTE 5: LOSS PER SHARE
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
The loss and weighted average number of ordinary shares used in the
calculation of basic loss per share is as follows:
Loss for the year
Weighted average number of shares outstanding during the year used in
calculations of basic loss per share:
Consolidated
2018
(1.28)
(1.28)
2017
(1.1)
(1.1)
$
(4,354,151)
$
(1,744,915)
No.
No.
340,101,855 158,972,029
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.
2018 Annual Financial Report
38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 6: CASH AND CASH EQUIVALENTS
Cash at bank and term deposits
Cash at bank earns interest at floating rates based on daily bank deposit
rates.
(i) Reconciliation of loss after income tax to net cash flows from
operating activities:
Loss for the year
Adjustments for:
Depreciation
Share-based payments
Gain on sale of property, plant & equipment
Loss/(Gain) on sale of investments
Impairment expense
Unrealised foreign exchange differences
Changes in operating assets and liabilities, net of the effects of purchase of
subsidiaries:
(Increase) in trade and other receivables
(Increase) in other current assets
Increase in trade and other payables and provisions
Net cash outflow from operating activities:
(ii) Non-cash investing and financing activities
Anson Resources Limited
Consolidated
2018
$
2017
$
1,656,320
521,784
1,656,320
521,784
(4,354,151)
(1,744,915)
32,108
550,924
(4,583)
1,497
-
(11,296)
13,382
65,742
(4,357)
(376,516)
70,000
(1,534)
(3,785,501)
(1,978,198)
(348,787)
(2,230)
187,153
(24,666)
-
84,837
(3,949,363)
(1,918,027)
During the year the Company undertook the following non-cash investing and financing activities:
•
•
•
•
Issue of 600,000 shares to a consultant as commission for services provided in securing a private
share placement for the Company;
Issue of 1,050,000 shares to a consultant for services provided in securing a private share
placement for the Company;
Issue of 1,000,000 shares to a vendor as part consideration for acquisition of exploration tenements
in US; and
Issue of 10,000,000 options to a broker in consideration for services provided in managing and
assisting with a share placement.
During the previous financial year, 2,000,000 shares were issued as part consideration for 100% of the
voting shares of Western Cobalt Pty Ltd, an unlisted company based in Australia, which owns exploration
licence E9/2218. The balance of the consideration ($50,000) was paid in cash.
NOTE 7: TRADE AND OTHER RECEIVABLES
Current
Prepayments
GST recoverable
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
Office lease security deposit
Exploration bonds
2018 Annual Financial Report
Consolidated
2018
$
2017
$
-
21,366
21,366
13,702
22,280
35,982
13,594
363,403
376,997
13,594
-
13,594
39
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 8: FINANCIAL ASSETS
Current
Investment available-for-sale
117,373
117,373
85,287
85,287
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.
NOTE 9: PROPERTY, PLANT AND EQUIPMENT
At cost
Accumulated depreciation
Reconciliation:
Opening balance at 1 July
Additions
Disposal of non-current assets
Depreciation/amortisation for the year
Foreign exchange differences
At 30 June, net of accumulated depreciation
The useful life of the assets were estimated as follows for 2018:
Office equipment
Computer equipment
Motor vehicles
Exploration equipment
2-5 years
2.5 years
5 years
2-5 years
NOTE 10: TRADE AND OTHER PAYABLES
Current
Trade payables
Accruals
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
Consolidated
2018
$
194,070
(41,520)
2017
$
78,342
(13,786)
152,550
64,556
64,556
136,296
(15,416)
(32,108)
(778)
45,093
65,761
(32,916)
(13,382)
-
152,550
64,556
145,116
153,532
65,695
41,516
298,648
107,211
14,877,154
(1,059,954)
8,737,675
(115,179)
13,817,200
8,622,496
2018 Annual Financial Report
40
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 11: CONTRIBUTED EQUITY (continued)
(a)
Ordinary shares
2018 movements in ordinary share capital:
Balance at 1 July 2017
Exercise of options at $0.055 each
Exercise of options at $0.03 each
Exercise of options at $0.025 each
Issue of shares via private placement at $0.011 each
Issue of shares via Share Purchase Plan at $0.011 each
Issue of shares via private placement at $0.03 each
Issue of shares via private placement at $0.088 each
Conversion of Performance Rights (refer note 13(b) for further details)
Issue of shares to various consultants for services rendered
Issue of shares to vendor for acquisition of tenements
Payment by employee for loan funded shares
Capital raising costs
Anson Resources Limited
Number of
shares
$
183,504,210
500,000
4,000
64,893,564
41,996,484
69,451,365
20,000,000
20,000,000
5,885,000
7,970,000
1,000,000
-
-
8,622,496
27,500
120
1,622,339
461,961
763,965
600,000
1,760,000
71,735
294,800
44,000
21,931
(473,647)
Balance at 30 June 2018
415,204,623
13,817,200
2017 movements in ordinary share capital:
Balance at 1 July 2016
Issue of shares via a private placement at $0.027 each
Issue of shares via an entitlement issue at $0.027 each
Issue of shares via a private placement at $0.03 each
Conversion of Performance Rights (refer Note 13(b) for further details)
Issue of shares for acquisition of project
Conversion of options at $0.03 each
Issue of shares to supplier for services provided
Capital raising costs
122,183,183
8,000,000
18,629,240
27,333,332
250,000
2,000,000
4,004,000
1,104,455
-
183,504,210
6,952,930
216,000
502,989
820,000
-
70,000
120,120
48,596
(108,139)
8,622,496
Balance at 30 June 2017
(b)
Share options
2018
Balance at 1 July 2017
Issued during the year
Exercised during the year
Expired during the year
Balance at 30 June 2018
2017
Balance at 1 July 2016
Issued during the year
Exercised during the year
Balance at 30 June 2017
Options exercisable
at 3c each on or
before 13/07/2017
Note (i)
Options exercisable
at 2.5c each on or
before 10/08/2018
Note (ii)
Options exercisable
at 5.5c each on or
before 21/9/2018
Note (iii)
49,958,572
-
(4,000)
(49,954,572)
-
-
53,962,572
(4,004,000)
49,958,572
-
121,447,849
(64,893,564)
-
56,554,285
-
-
-
-
500,000
-
(500,000)
-
-
-
500,000
-
500,000
(i)
(ii)
Listed options issued in private placements and in a rights issue, of which 4,000 were exercised
during the year and the balance of 49,954,572 expired unexercised.
Listed options issued on 2 October 2017 as follows:
•
69,451,365 share purchase plan options;
•
41,996,484 placement options (as approved by shareholders); and
•
10,000,000 broker options (as approved by shareholders).
(iii)
Unlisted options issued to a consultant in a previous period were exercised during the year.
2018 Annual Financial Report
41
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 11: CONTRIBUTED EQUITY (continued)
(c)
Performance Rights
Opening balance
Issued during the year
Vested during the year
Closing balance
Anson Resources Limited
2018 (No.)
2017 (No.)
5,885,000
10,000,000
(5,885,000)
5,885,000
-
-
10,000,000
5,885,000
Refer Note 13(b) for further details of Performance Rights granted by the Company.
NOTE 12: RESERVES
The following table shows a breakdown of the statement of financial position line item ‘Reserves’ and the
movements in these reserves during the year. A description of the nature and purpose of each reserve is
provided below the table.
Share-based
payments
$
Available-
for-sale
financial
assets
$
Foreign
currency
translation
$
Total
reserves
$
As at 1 July 2016
136,740
735,076
1,007
872,823
Revaluation of AFS
Reclassification to profit or loss
Issue of Loan Funded Share Plan shares
Issue of Options
-
-
9,270
7,876
(362,197)
(376,516)
-
-
-
-
-
-
(362,197)
(376,516)
9,270
7,876
As at 30 June 2017
153,886
(3,637)
1,007
151,256
As at 1 July 2017
Revaluation of AFS
Foreign currency translation for subsidiary
Vesting of Performance Rights
Transfer to accumulated losses
Issue of options
Issue of Performance Rights
As at 30 June 2018
Share-based payments reserve
153,886
-
-
(71,735)
(7,876)
200,000
448,124
722,399
(3,637)
1,007
151,256
48,261
-
-
-
-
-
-
(46,723)
-
-
-
-
48,261
(46,723)
(71,735)
(7,876)
200,000
448,124
44,624
(45,716)
721,307
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.
Available-for-sale financial assets
Changes in the fair value and exchange differences arising on translation of investments that are classified
as available-for-sale financial assets (eg equities), are recognised in other comprehensive income and
accumulated in a separate reserve within equity. Amounts are reclassified to profit or loss when the
associated assets are sold or impaired.
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.
2018 Annual Financial Report
42
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 13: SHARE BASED PAYMENTS
(a) Options
Anson Resources Limited
During the year, the following options were granted to a broker in consideration for services provided in
managing and assisting with a private placement.
Class
Grant Date
Expiry Date
Exercise
Price
Number of
Options granted
Listed Options (ASNOB)
2 October 2017
10 August 2018
$0.025
10,000,000
The fair value of the options at grant date was 2 cents per option which was based on the market price at the
grant date.
At the beginning of the financial year there were 500,000 options (2017: nil) on issue with a weighted
average exercise price of 5.5 cents. These options were exercised during the year (2017: nil). In addition, a
further 10,000,000 options (2017: 500,000) were granted during the year, with a weighted average exercise
price of 2.5 cents (2017: 5.5 cents). These options were listed and tradeable on ASX and consequently, it is
not possible to determine how many were exercised during the year, nor how many were outstanding at the
end of the year.
The fair value of the equity-settled share options granted 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, unless the share options are listed and have a quoted market price.
The fair value of the options granted are recognised as an expense over the period from grant to vesting
date.
In the financial year ended 30 June 2017, 500,000 options (Options) were granted to employees and
consultants. 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 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 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.
The following table lists the assumptions to the model used for the previous financial year ended 30 June
2017.
Issue
Date
Vesting
Date
Number
Issued
Grant
Date
Stock Price
at Grant
Date
(cents)
Issue
Price
(cents)
Risk Free
Rate
(%)
Volatility
(%)
Value Per
option
(cents)
Options
22/3/17
22/3/17
500,000
22/3/17
3.5
5.5
1.79%
122.71%
1.6
2018 Annual Financial Report
43
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 13: SHARE BASED PAYMENTS (continued)
(b) Performance Rights
The following performance rights were issued during the year:
Balance at start of the year
Issued during the year:
Bruce McLeod
Bruce Richardson
Greg Knox
Other employees and consultants
Vested during the year:
Bruce McLeod
Bruce Richardson
Greg Knox
Other employees and consultants
Anson Resources Limited
30 June 2018
(No.)
30 June 2017
(No.)
5,885,000
5,885,000
2,000,000
6,000,000
2,000,000
-
10,000,000
(885,000)
(2,350,000)
(1,765,000)
(885,000)
(5,885,000)
-
-
-
250,000
250,000
-
-
-
(250,000)
(250,000)
Balance at year end
10,000,000
5,885,000
The Performance Rights were issued for nil cash consideration and nil issue price.
The vesting of the Performance Rights is conditional upon the Group’s achievement of various performance
hurdles in relation to the Group’s lithium brine project in Utah, USA.
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.
The assessed fair value at grant date of the Performance Rights granted during the year was 9.5 cents per
Right (2017: 2.8 cents). The initial undiscounted value of the performance rights is the value of an underlying
share in the Company as traded on ASX at the deemed date of grant of the performance right. As the
performance conditions are not market based performance conditions, no discount is applied. The value of
the Performance Rights is amortised over the period during which the respective performance hurdle may be
achieved. In the event the performance hurdle is achieved before the end of the vesting period, the
remaining unamortised value is immediately expensed.
(c) Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the period as part of
employee benefit expense were as follows:
Performance rights issued
2018
$
448,124
448,124
2017
$
4,583
4,583
2018 Annual Financial Report
44
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 13: SHARE BASED PAYMENTS (continued)
(d) Other share-based payments
Anson Resources Limited
Shares issued to consultants as consideration for services provided
On 28 and 29 August 2017, the Company issued a total of 6,000,000 shares to a consultant of the Group as
consideration for his services in relation to securing three offtake MOU’s for the Group.
On 8 November 2017 the Company issued 600,000 shares to a consultant as consideration for services
provided in securing a private share placement for the Company.
On 22 November 2017 the Company issued 320,000 shares to a consultant of the Group as consideration
for his service in relation to obtaining a drilling permit for the Group in Utah, USA.
On 20 April 2018, the Company issued 1,050,000 shares to a consultant as consideration for services
provided in securing a private share placement for the Company.
On 22 May 2018 the Company issued 1,000,000 shares to a vendor as consideration for the acquisition of
exploration tenements in Utah, USA.
(e) Loan Funded Share Plan Shares
The Company has established a Loan Funded Share Plan for the purposes of attracting and retaining the
services of Directors and employees of a high calibre. No shares were issued under the Plan in the current
financial year (2017: Nil). As at balance date, a total of 12,250,000 shares remain on issue under the Plan.
NOTE 14: COMMITMENTS AND CONTINGENCIES
(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
Consolidated
2018
$
71,097
247,000
-
2017
$
102,803
107,000
-
318,097
209,803
(b)
Earn-in agreement for exploration claims:
In September 2016 the Company agreed to earn into a prospective lithium project (Project) in Utah, USA
comprising of 89 Placer Claims. Legal agreements were completed in March 2017 with Voyageur Minerals
Inc providing Anson’s subsidiary company, A1 Lithium Inc, with the ability to earn up to a 70% interest in the
Project, whilst also retaining an option to purchase the remaining 30% interest.
A1 Lithium Inc earned an initial 10% interest in the Project on signing the joint venture agreement with
Voyageur and through payment of an up-front fee of US$75,000.
A1 Lithium Inc earned a further 40% interest in the Project through completion of agreed milestones, which
included 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 could be deferred to the next stage of the earn-in
without the additional 40% interest being affected).
A1 Lithium Inc can earn a further 20% Project interest 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 joint venture partner, Voyageur, (current holding of 50% interest) had not
completed the formalities to transfer the claims to the joint venture company as required under the
agreement. This has not had any impact on the accounts.
2018 Annual Financial Report
45
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 14: COMMITMENTS AND CONTINGENCIES (continued)
(c)
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 Group 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
Consolidated
2018
$
75,475
-
-
75,475
2017
$
33,875
52,033
-
85,908
(d)
Finance lease and hire purchase commitments
The Group leases certain plant and equipment under a finance lease of 3 years. At the end of the lease
terms the Group owns the equipment outright or has the option to purchase the equipment for the residual
amount owing. The Group’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
(e)
Legal action by supplier
Consolidated
2018
$
2017
$
3,780
3,465
7,245
(264)
6,981
3,354
3,627
6,981
3,792
7,584
11,376
(1,045)
10,331
3,344
6,987
10,331
In 2017 a supplier to the Group commenced legal action through which clarification of the terms of a contract
was sought. At the date of this report, the legal action remains ongoing. The terms of the agreement require
the satisfaction of performance hurdles to trigger compensation. One of those hurdles has been achieved
and payment has been made. However, other hurdles are yet to be achieved and remain the subject of
dispute. There is presently no obligation giving rise to a liability and no provision or contingent liability has
been recorded
2018 Annual Financial Report
46
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 15: RELATED PARTY DISCLOSURE
(a)
Subsidiaries
Anson Resources Limited
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
2018
Investment
$
2018
% Equity
interest
2017
Investment
$
2017
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%
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 details of compensation to key management personnel. Other than the compensation as
shown in Note 16, there were no other transactions with KMPs or their associated entities during the year.
(d)
Loan funded share plan contingent asset
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:
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.
2018
2017
$
$
175,022 182,729
175,022 182,729
Consolidated
2018
668,740
3,470
441,150
2017
421,406
1,157
9,243
1,113,360
431,806
2018 Annual Financial Report
47
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 17: EVENTS AFTER BALANCE DATE
The following events have occurred after balance date:
Anson Resources Limited
1. 56,430,434 options were exercised at 2.5 cents each and 123,851 options expired without being
exercised on 10 August 2018;
2. On 18 July 2018, the Company completed a private placement of 22,727,273 shares at $0.11 per
share, accompanied on a one-for-four basis by unlisted options exercisable at $0.20 on or before 18
July 2020 (Placement Options), raising $2.5 million before costs. The lead manager was paid a fee
of 6% of gross proceeds and 10 million Placement Options;
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.
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
Consolidated
2018
$
2017
$
29,655
25,334
29,655
25,334
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 Group holds the following financial instruments:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Other receivables - deposits and bonds paid
Investments
Financial Liabilities
Trade and other payables
Lease liabilities
Consolidated
2018
$
2017
$
1,656,320
521,784
21,366
376,997
117,373
22,280
13,594
85,287
2,172,056
642,945
298,648
107,211
6,981
10,331
305,629
117,542
2018 Annual Financial Report
48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 19: FINANCIAL RISK MANAGEMENT (continued)
(a)
Market risk
Cash flow and fair value interest rate risk
The Group receives interest on its cash management accounts based on daily balances at variable rates.
The Group’s operating accounts do not attract interest. The Group did not have any deposits at fixed rates
during the year. Deposits at variable rates expose the Group to cash flow interest rate risk.
At reporting date the interest rate profile of the Group’s interest bearing financial instruments was:
Variable rate instruments
Cash at bank
Fixed rate instruments
Lease liabilities
2018
$
2017
$
1,261,998
488,447
(6,981)
(10,331)
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates would increase or decrease the Group’s loss by $12,620
(2017: $4,884), based on the cash at bank at reporting date and calculated on an annual basis. The Board
assessed a 100 basis point movement as being reasonably possible based on short term historical
movements. This analysis assumes that all other variables remain constant.
Foreign currency risk
As a result of USD cash deposits, the Group's statement of financial performance can be affected
significantly by movements in the US$/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 2018, the Group had the following exposure to US$ foreign currency expressed in A$
equivalents, which are not designated as cash flow hedges:
Financial Assets
Cash and cash equivalents
Other receivables - deposits and bonds paid
Financial Liabilities
Trade and other payables
Consolidated
2018
$
2017
$
393,766
363,403
757,169
12,009
-
12,009
223,816
-
At 30 June 2018, 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
2018 Annual Financial Report
Consolidated
2018
$
2017
$
117,373
117,373
85,287
85,287
-
-
49
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
Anson Resources Limited
NOTE 19: FINANCIAL RISK MANAGEMENT (continued)
(a)
Market risk (continued)
Sensitivity analysis
The following table illustrates sensitivities to the Group’s exposures to exchange rates:
Year ended 30 June 2018
+/- 20% in $A/$US
+/- 5% in $A/$CAD
Year ended 30 June 2017
+/- 20% in $A/$US
+/- 5% in $A/$CAD
Other price risk
Consolidated
Profit/loss
$
Equity
$
106,671
-
106,671
5,868
2,402
-
2,402
4,264
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 in the metals and mining sector.
At 30 June 2018, the Group had the following exposure to security price risk:
Financial Assets
Investments
Consolidated
2018
$
2017
$
117,373
117,373
85,287
85,287
The following table illustrates sensitivities to the Group’s exposures to security price risk:
Year ended 30 June 2018
+/- 50% in listed investments
Year ended 30 June 2017
+/- 50% in listed investments
(b)
Credit risk
Consolidated
Profit/loss
$
Equity
$
-
58,687
-
42,644
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.
2018 Annual Financial Report
50
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
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 losses 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 of the parent entity
Total comprehensive loss of the parent entity
(b)
Guarantees
2018
$
1,756,834
55,256
2017
$
643,053
78,150
1,812,090
721,203
(78,187)
(111,489)
(3,627)
(6,987)
(81,814)
(118,476)
1,730,276
602,727
13,817,200
8,622,496
449,083
151,256
(12,536,007)
(8,171,025)
1,730,276
602,727
(4,372,856)
(1,744,915)
(4,324,595)
(2,483,628)
No guarantees have been entered into by the Company in relation to the debts of its subsidiaries.
(c) Commitments and Contingencies
Commitments and contingencies of the Company as at reporting date are disclosed in Note 14 to the
financial statements.
2018 Annual Financial Report
51
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 21: FAIR VALUE MEASUREMENT
Fair value hierarchy
Anson Resources Limited
The following table details the Group’s assets and liabilities, measured or disclosed at fair value, using a
three level hierarchy, based on the lowest level of input that is significant to the entire fair value
measurement, being:
• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date.
• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.
• Level 3: Unobservable inputs for the asset or liability.
The following table details the Group’s assets and liabilities measured or disclosed at fair value.
2018
Assets
Available-for-sale financial assets
Total assets
2017
Assets
Available-for-sale financial assets
Total assets
Level 1
$
Level 2
$
Level 3
$
Total
$
117,373
117,373
85,287
85,287
-
-
-
-
-
-
-
-
117,373
117,373
85,287
85,287
Estimates of fair value take into account factors and market conditions evident at balance date. Uncertainty
and changes in global market conditions in the future may impact fair values in the future.
Transfers between level 1 and 3
There were no movements between different fair value measurement levels during the financial year (2017:
none).
2018 Annual Financial Report
52
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ANSON RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Anson Resources Limited (the Company and its subsidiaries (“the
Group”)), which comprises the consolidated statement of financial position as at 30 June 2018, the
consolidated statement of comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(i)
(ii)
giving a true and fair view of the Group's financial position as at 30 June 2018 and of its financial
performance for the year then ended; and
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the
Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
We have determined that there are no key audit matters to communicate in our report.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group's annual report for the year ended 30 June 2018, but does not include the financial
report and our auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
Liability limited by a scheme approved
under Professional Standards Legislation
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and
fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial
report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures
in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that achieves
fair presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in Internal control that we identify
during our audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements. We also provide the Directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the consolidated financial report of the current period and are therefore key audit matters. We
describe these matters in our auditor's report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 11 to 18 of the directors’ report for the year
ended 30 June 2018. The directors of the Company are responsible for the preparation and presentation of
the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is
to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
Opinion on the Remuneration Report
In our opinion the Remuneration Report of Anson Resources Limited for the year ended 30 June 2018
complies with section 300A of the Corporations Act 2001.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Samir R Tirodkar
Director
West Perth, Western Australia
26 September 2018
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 5 September 2018.
Anson Resources Limited
(A)
DISTRIBUTION OF EQUITY SECURITIES
Ordinary share capital
The number of security holders by size of holding are:
Fully paid ordinary shares
Options exercisable at $0.20 each
on or before 18 July 2020
Range
Holders
Units
%
Holders
Units
-
-
-
322,727
15,359,092
%
-
-
-
2.06
97.94
15,681,819
100.00
1,000
-
-
5,000
- 10,000
- 100,000
- Over
1
1,001
5,001
10,001
100,001
Total
82
511
570
1,700
674
3,537
4,602
1,830,594
4,784,282
67,488,262
420,254,591
0.00
0.37
0.97
13.65
85.01
494,362,331
100.00
* Hunter Capital Advisors Pty Ltd holds 10,000,000 options.
-
-
-
9
12*
21
(B)
SUBSTANTIAL SHAREHOLDERS
Fully paid
Ordinary shareholders
Number
Percentage
CHIA TAI XINGYE INTNL
40,000,000
8.1%
(C)
TWENTY LARGEST SECURITY HOLDERS
Fully paid
Ordinary shareholders
CHIA TAI XINGYE INTNL
RICHARDSON BUSINESS CONS
SHI DESHUN
KNOX PETER GREGORY
OTHMAN BASSAM
LI XIAOXUAN
XIAO LI
WO WAH INDUSTRIAL INV LTD
RICHARDSON BRUCE
RHODES CAPITAL PTY LTD
XU ZHIGANG
BALLARD KEITH R + M K
GAULE MICHAEL WILLIAM
KLEIN MATTHEW STEVEN
PJ & SL MOYLAN PL
APEDAILE STEVEN J + M L
APEDAILE STEVEN J + M L
WARNE DARREN MICHAEL
CHENG HOLDEN
GRAHAM CRAIG LAWRENCE
Number
40,000,000
14,153,636
12,011,800
11,315,542
9,100,000
8,150,000
7,650,000
6,000,000
5,680,451
5,046,376
5,000,000
4,950,000
4,903,930
4,840,880
4,700,000
4,500,000
4,500,000
3,500,000
3,077,272
3,063,000
Percentage
8.1%
2.9%
2.4%
2.3%
1.8%
1.6%
1.5%
1.2%
1.1%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
0.9%
0.9%
0.7%
0.6%
0.6%
162,142,887
32.8%
2018 Annual Financial Report
57
Anson Resources Limited
ASX ADDITIONAL INFORMATION (continued)
(D)
UNMARKETABLE PARCELS
There were 593 holdings (1,835,196 shares in total) of less than a marketable parcel of ordinary shares
(being 5,000 shares as at 5 September 2018).
(E)
VOTING RIGHTS
The voting rights attaching to ordinary shares are:
On a show of hands, each member present in person or by proxy has one vote, and upon a poll, each share
has one vote.
Options do not carry any voting rights.
(F)
ON-MARKET BUY BACK
There is no current on-market buy-back.
(G)
PRINCIPLES OF GOOD CORPORATE GOVERNANCE AND RECOMMENDATIONS
The Board has adopted and approved the Company’s Corporate Governance Statement, which can be
found on the Company’s website at www.ansonresources.com.
(F)
MINERAL TENEMENTS
The Group holds the following tenements:
Project
Ajana
Ajana
Ajana
Lease
E66/89
E66/94
Commodity
Holder
Locality
Status
Graphite
Graphite
Rhodes Resources Pty Ltd
Anson Resources Limited
E66/100
Graphite
Anson Resources Limited
Hooley Well
E9/2218
Cobalt
Western Cobalt Pty Ltd
Hooley Well
E9/2219
Cobalt
Anson Resources Ltd
WA
WA
WA
WA
WA
Granted
Granted
Application
Granted
Granted
Paradox
Brine
Paradox
Brine
Paradox
Brine
Paradox
Brine
Paradox
Brine
Paradox
Brine
87 placer
claims
202 placer
claims
201 placer
claims
493 placer
claims
Lithium
(i)
Utah, USA
(i)
Lithium
A1 Lithium Inc.
Utah, USA
(ii)
Lithium
A1 Lithium Inc.
Utah, USA
(iii)
Lithium
A1 Lithium Inc.
Utah, USA
(iv)
1 Oil & Gas
Lease
Oil
A1 Lithium Inc.
Utah, USA
(v)
1 Industrial
Permit
Industrial
A1 Lithium Inc.
Utah, USA
(vi)
2018 Annual Financial Report
58
Anson Resources Limited
ASX ADDITIONAL INFORMATION (continued)
(i) Anson currently holds a 50% interest in 87 Placer Claims in Utah, USA (the ULI Project) and can earn
further interests as follows:
(a) 20% by drilling and logging one or more holes, issuing a NI 43-101 technical report, and expending
US$2,330,000.
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.
(iii) The Company currently holds a 100% interest in 201 Placer Claims in Utah, USA. Under the terms of
the earn-in agreement referred to in point (i) above for the ULI Project, 65 of 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 ULI501, ULI502, ULI503, ULI504, ULI505, ULI506, ULI507, ULI508,
ULI509, ULI510, ULI511, ULI512, ULI513, ULI514, ULI515, ULI516, ULI517, ULI518, ULI519, ULI520,
ULI521, ULI522, ULI523, ULI524, ULI525, ULI526, ULI527, ULI528, ULI529, ULI530, ULI531, ULI532,
ULI533, ULI534, ULI535, ULI536, ULI537, ULI538, ULI539, ULI540, ULI541, ULI542, ULI543, ULI544,
ULI545, ULI546, ULI547, ULI548, ULI549, ULI550, ULI551, ULI552, ULI553, ULI544, ULI555, ULI556,
ULI557, ULI558, ULI559, ULI560, ULI561, ULI562, ULI563, ULI564, ULI565, ULI566, ULI567, ULI568,
ULI569, ULI570, ULI571, ULI572, ULI573, ULI574, ULI575, ULI576, ULI577, ULI578, ULI579, ULI580,
ULI581, ULI582, ULI583, ULI584, ULI585, ULI586, ULI587, ULI588, ULI589, ULI590, ULI591, ULI592,
ULI593, ULI594, ULI595, ULI596, ULI597, ULI598, ULI591, ULI600, ULI601, ULI602, ULI603, ULI604,
ULI605, ULI606, ULI607, ULI608, ULI609, ULI610, ULI611, ULI612, ULI613, ULI614, ULI615, ULI616,
ULI621, ULI622, ULI623, ULI624, ULI625, ULI626, ULI627, ULI628, ULI629, ULI630, ULI631, ULI632,
ULI633, ULI634, ULI635, ULI636, ULI637, ULI638, ULI639, ULI640, ULI645, ULI646, ULI647, ULI648,
ULI653, ULI654, ULI655, ULI656, ULI661, ULI662, ULI663, ULI664, ULI665, ULI666, ULI667, ULI668,
ULI669, ULI670, ULI671, ULI672, ULI673, ULI674, ULI675, ULI676, ULI677, ULI678, ULI679, ULI680,
ULI681, ULI682, ULI683, ULI688, ULI689, ULI690, ULI691, ULI696, ULI697, ULI698, ULI699, ULI700,
ULI701, ULI702, ULI703, ULI704, ULI705, ULI706, ULI707, ULI708, ULI709, ULI710, ULI711, ULI712,
ULI713, ULI714, ULI715, ULI716, ULI717, ULI718, ULI719, ULI720, ULI721, ULI722, ULI723, ULI724,
and ULI725.
2018 Annual Financial Report
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Anson Resources Limited
(iv)The Company currently holds a 100% interest in 249 Placer Claims in Utah, USA.
These claims are referred to as ULI617, ULI618, ULI619, ULI620, ULI641, ULI642, ULI643, ULI644,
ULI649, ULI650, ULI651, ULI652, ULI657, ULI658, ULI659, ULI660, ULI726, ULI727, ULI728, ULI729,
ULI730, ULI731, ULI732, ULI733, ULI734, ULI735, ULI736, ULI737, ULI738, ULI739, ULI740, ULI741,
ULI742, ULI743, ULI744, ULI745, ULI746, ULI747, ULI748, ULI749, ULI750, ULI751, ULI752, ULI753,
ULI754, ULI755, ULI756, ULI757, ULI758, ULI759, ULI760, ULI761, ULI762, ULI763, ULI764, ULI765,
ULI766, ULI767, ULI768, ULI769, ULI770, ULI771, ULI772, ULI773, ULI774, ULI775, ULI776, ULI777,
ULI778, ULI779, ULI780, ULI781, ULI782, ULI783, ULI784, ULI785, ULI786, ULI787, ULI788, ULI789,
ULI790, ULI791, ULI792, ULI793, ULI794, ULI795, ULI796, ULI797, ULI798, ULI799, ULI800, ULI801,
ULI802, ULI803, ULI804, ULI805, ULI806, ULI807, ULI808, ULI809, ULI810, ULI811, ULI812, ULI813,
ULI814, ULI815, ULI816, ULI817, ULI818, ULI819, ULI820, ULI821, ULI822, ULI823, ULI824, ULI825,
ULI826, ULI827, ULI828, ULI829, ULI830, ULI831, ULI832, ULI833, ULI834, ULI835, ULI836, ULI837,
ULI838, ULI839, ULI840, ULI841, ULI842, ULI843, ULI844, ULI845, ULI846, ULI847, ULI848, ULI849,
ULI850, ULI851, ULI852, ULI853, ULI854, ULI855, ULI856, ULI857, ULI858, ULI859, ULI860, ULI861,
ULI862, ULI863, ULI864, ULI865, ULI866, ULI867, ULI868, ULI869, ULI870, ULI871, ULI872, ULI873,
ULI874, ULI875, ULI876, ULI877, ULI878, ULI879, ULI880, ULI881, ULI882, ULI883, ULI884, ULI885,
ULI886, ULI887, ULI888, ULI889, ULI890, ULI891, ULI892, ULI893, ULI894, ULI895, ULI896, ULI897,
ULI898, ULI899, ULI900, ULI901, ULI902, ULI903, ULI904, ULI905, ULI906, ULI907, ULI908, ULI909,
ULI910, ULI911, ULI912, ULI913, ULI914, ULI915, ULI916, ULI917, ULI918, ULI919, ULI920, ULI921,
ULI922, ULI923, ULI924, ULI925, ULI926, ULI927, ULI928, ULI929, ULI930, ULI931, ULI932, ULI933,
ULI934, ULI935, ULI936, ULI937, ULI938, ULI939, ULI940, ULI941, ULI942, ULI943, ULI944, ULI945,
ULI946, ULI947, ULI948, ULI949, ULI950, ULI951, ULI952, ULI953 and ULI954.
The Company currently holds a 100% interest in 66 Placer Claims in Utah, USA.
These claims are referred to as CLOUD001, CLOUD002, CLOUD003, CLOUD004, CLOUD005,
CLOUD006, CLOUD007, CLOUD008, CLOUD009, CLOUD010, CLOUD011, CLOUD012, CLOUD013,
CLOUD014, CLOUD015, CLOUD016, CLOUD017, CLOUD018, CLOUD019, CLOUD020, CLOUD021,
CLOUD022, CLOUD023, CLOUD024, CLOUD025, CLOUD026, CLOUD027, CLOUD028, CLOUD029,
CLOUD030, CLOUD031, CLOUD032, CLOUD033, CLOUD034, CLOUD035, CLOUD036, CLOUD037,
CLOUD038, CLOUD039, CLOUD040, CLOUD041, CLOUD042, CLOUD043, CLOUD044, CLOUD045,
CLOUD046, CLOUD047, CLOUD048, CLOUD049, CLOUD050, CLOUD051, CLOUD052, CLOUD053,
CLOUD054, CLOUD055, CLOUD056, CLOUD057, CLOUD058, CLOUD059, CLOUD060, CLOUD061,
CLOUD062, CLOUD063, CLOUD064, CLOUD065 and CLOUD066,
The Company currently holds a 100% interest in 178 Placer Claims in Utah, USA.
These claims are referred to as CANE001, CANE002, CANE003, CANE004, CANE005, CANE006,
CANE007, CANE008, CANE009, CANE010, CANE011, CANE012, CANE013, CANE014, CANE015,
CANE016, CANE017, CANE018, CANE019, CANE020, CANE021, CANE022, CANE023, CANE024,
CANE025, CANE026, CANE027, CANE028, CANE029, CANE030, CANE031, CANE032, CANE033,
CANE034, CANE035, CANE036, CANE037, CANE038, CANE039, CANE040, CANE041, CANE042,
CANE043, CANE044, CANE045, CANE046, CANE047, CANE048, CANE049, CANE050, CANE051,
CANE052, CANE053, CANE054, CANE055, CANE056, CANE057, CANE058, CANE059, CANE060,
CANE061, CANE062, CANE063, CANE064, CANE065, CANE066, CANE067, CANE068, CANE069,
CANE070, CANE071, CANE072, CANE073, CANE074, CANE075, CANE076, CANE077, CANE078,
CANE079, CANE080, CANE081, CANE082, CANE083, CANE084, CANE085, CANE086, CANE087,
CANE088, CANE089, CANE090, CANE091, CANE092, CANE093, CANE094, CANE095, CANE096,
CANE097, CANE098, CANE099, CANE100, CANE101, CANE102, CANE103, CANE104, CANE105,
CANE106, CANE107, CANE108, CANE109, CANE110, CANE111, CANE112, CANE113, CANE114,
CANE115, CANE116, CANE117, CANE118, CANE119, CANE120, CANE121, CANE122, CANE123,
CANE124, CANE125, CANE126, CANE127, CANE128, CANE129, CANE130, CANE131, CANE132,
CANE133, CANE134, CANE135, CANE136, CANE137, CANE138, CANE139, CANE140, CANE141,
CANE142, CANE143, CANE144, CANE145, CANE146, CANE147, CANE148, CANE149, CANE150,
CANE151, CANE152, CANE153, CANE154, CANE155, CANE156, CANE157, CANE158, CANE159,
CANE160, CANE161, CANE162, CANE163, CANE164, CANE165, CANE166, CANE167, CANE168,
CANE169, CANE170, CANE171, CANE172, CANE173, CANE314, CANE175, CANE176, CANE177,
CANE178 and CANE179.
(v) The Company currently holds a 100% interest in 1 Oil and Gas Lease in Utah, USA. This claim is
referred to as ML49667.
(vi) The Company currently holds a 100% interest in 1 Industrial Permit in Utah, USA. This claim is
referred to as SULA1872.
2018 Annual Financial Report
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