ABN 62 115 927 681
ANNUAL REPORT
30 JUNE 2010
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
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Chairman
Managing Director
Non-executive Director
Non-executive Director
CONTENTS
Corporate Directory
Operations Review
Corporate Governance Statement
Directors‘ Report
Auditor‘s Independence Declaration
Financial Report
Directors‘ Declaration
Independent Auditor‘s Report
Shareholder Information
Tenement Report
CORPORATE DIRECTORY
Directors
Brett Fraser
Dr Robert Beeson
Simon O‘Loughlin
Jay Stephenson
Company Secretary
Jay Stephenson
Principal registered office
Unit 6, 34 York Street
North Perth WA 6006
Telephone 08 9228 0711
Facsimile 08 9228 0704
Website: www.auraenergy.com.au
email: info@auraenergy.com.au
Auditor
Bentleys
Level 1, 12 Kings Park Road
West Perth WA 6005
Share Registry
Computershare Registry Services
Level 2, 45 St Georges Terrace
Perth WA 6000
Australian Securities Exchange
ASX Code – AEE
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REVIEW OF OPERATIONS
The year was a very active exploration time for the company. The important milestones were the announcement
of an initial resource at Häggån in Sweden and the confirmation of extensive uranium mineralisation at the
company‘s properties in Mauritania.
Sweden
Sweden was a key focus of our activity with a major 25 hole diamond drilling program undertaken at our wholly
owned Häggån Project (previously Storsjön) in the Jämtland District, in Central Sweden. The uranium occurs with
molybdenum, nickel, vanadium and zinc in black shales which forms a near-continuous sheet throughout the part
of the project that Aura has drilled.
Results from the 2010 drilling programme showed:
There was thick continuous mineralisation over five square kilometres.
An average thickness of 103 metres of uranium mineralisation
A new area of very thick mineralisation from surface was identified
Several intersections with greater than 0.04% Molybdenum Oxide (MoO₃) and 0.3% Vanadium Oxide
(V2O5).
Resources
On the basis of the drilling Aura commissioned independent resource consultants, Hellman & Schofield Pty Ltd
(H&S), to estimate an initial JORC compliant resource for its Häggån Project. The drilling and consequent
resource only cover about 5% of the Häggån permit area, however Aura believes establishing a definite resource
will help shareholders understand the potential of the project. This resource places Häggån within the world‘s ten
largest undeveloped uranium resources that are compliant with ASX or TSX requirements.
Metallurgical Recoveries
Aura is evaluating extraction technologies for commercial uranium production. Its initial test work at the Australian
Nuclear Science and Technology Organisation (ANSTO) gave uranium recoveries between 90% and 93%, using
conventional acid leach methods and obtained within 12 hours. However, acid consumption in this first study was
high and the company is examining potential alternative process routes for reducing acid consumption.
The first bioleach results, done by the Parker Cooperative Research Centre for hydrometallurgical research in
Perth, indicate that uranium, molybdenum, nickel and zinc have improved extraction rates using bacteria relative
to samples without bacteria. These results indicate the Alum Shales within the project are likely to be amenable
to bioheap leaching. This method of extraction could potentially provide a low capital and low operating cost
treatment route.
Virka
Located in the resource rich Norrbotten area of Northern Sweden, is Aura‘s wholly owned Virka Project. The
project lies approximately 45 kilometres southeast of the 20 plus million pounds Pleutajokk Uranium Deposit in
northern Sweden and approximately 50 kilometres northwest of Arvidsjaur and the Arvidsjaur uranium province.
Drilling between 1980 and 1982 saw eight of the total 20 holes drilled in the area intersecting high grade uranium
mineralisation.
Kallsedet
Close to the Norwegian border, Aura‘s wholly owned Kallsedet was explored by the Swedish government in the
1970s, when they found good grades of uranium. In addition, fieldwork in the area has identified a number of
radiometrically anomalous zones corresponding with the position of the Alum Shale. The company is highly
encouraged by the consistent values obtained from surface rock-chip sampling.
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REVIEW OF OPERATIONS
West Africa
Reguibat, Mauritania
The Reguibat project covers approximately 8400 square kilometres and is located on the Reguibat Craton in
Northern Mauritania. Exploration by Aura and others in the region has yielded very positive results, and the
Reguibat Craton is now anticipated to be a major emerging uranium province.
Aura currently holds ten granted exploration permits: three permits are 100% Aura, five permits in joint venture
with GMC Resources and two permits in joint venture with Ghazal Minerals where Aura is earning 70%.
A 392-hole drill programme completed by Aura in January 2010 confirmed widespread calcrete uranium
mineralisation, generally two to four metres in thickness and close to surface at a depth of zero to six metres.
Aura will commence additional drilling and associated activities, as soon as weather conditions permit.
Fai, Mauritania
The Fai Project is located in the Mauritanide Fold Belt in Central Mauritania (250 kilometres east of Nouakchott,
Mauritania‘s capital) and covers 2900 square kilometres. The project currently consists of one granted permit in
joint venture with GCM Resources. Aura is earning a minimum of 58% interest in the granted permit by sole
funding exploration, and can earn a higher interest if the partner continues to elect to reduce its interest.
The project is at an early stage of evaluation, but preliminary fieldwork has indicated the presence of laterally
extensive uraniferous gravels. The main radiometric anomaly is 17 square kilometres in size. However, the
anomaly is bounded by sand dune fields, which mask radiometric response. The uranium-bearing gravels are
therefore anticipated to be much more extensive than the area without sand cover.
Other radiometric anomalies occur in the Fai Permit scattered over an area 30 kilometres in length (north-south)
and up to 12 kilometres in width.
Tim Mersoi Basin Applications, Niger
The Tim Mersoi Basin area, in northwest Niger, is the world‘s fifth largest uranium producer. Aura‘s wholly owned
Tim Mersoi Basin applications cover 1500 square kilometres. The Aura application areas (known as Ebadargene
1, 2 and 3) lie close to and south of the Air Massif. As far as Aura is aware the areas have had no meaningful
previous exploration but an airborne radiometric and magnetic survey which covers much of Aura‘s northern
application area has recently been flown under a European aid program.
Australia
Gunbarrel
The wholly owned Gunbarrel Project, on the Yilgarn Craton, in the far east of Western Australia covers 3287
square kilometres. Focus is on the large palaeochannels, as several resources have been defined in the basin at
similar locations.
Drilling has identified uranium mineralisation in two of the palaeochannels. Drilling in July 2009 intersected 14
metres of radiometric anomalism in a hole which contained two meters of 147 ppm U3O8 from gamma logging,
and two metres at 85ppm U3O8 from chemical analysis. The Company is seeking partners to begin a drilling
program to further test the potential of the palaeochannels.
Porcupine
Aura‘s Porcupine Well Project is located midway between the Lake Way/Centipede and the Lake Maitland
deposits in Western Australia‘s major calcrete uranium region and covers 52.5 square kilometres. Aura‘s initial
exploration located a radiometric anomaly close to the western boundary of the tenement.
Aura recently drilled 40 air core holes at Porcupine Well to a depth of up to 10 metres to test the auger results.
Holes have been sampled, radiometrically logged and submitted for assay and the results are pending.
Wondinong
Surface uranium mineralisation was first discovered at Wondinong project by Western Mining Corporation (WMC)
in the 1970s. Subsequent exploration by Aura has expanded the known mineralisation into a significant deposit
covering an area approximately four kilometres wide by seven kilometres long. Aura has permitted a 72 hole drill
programme for drilling later this year.
Dr Robert Beeson has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking. This qualifies Dr Beeson as a Competent Person as defined in the
2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Robert
Beeson consents to the inclusion in the report of the matters based on his information in the form and context in which it
appears. Dr Beeson is a member of the Australian Institute of Geoscientists
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CORPORATE GOVERNANCE STATEMENT
As the framework of how the Board of Directors of Aura Energy Limited (―Company‖) carries out its duties and
obligations, the Board has considered the eight principles of corporate governance as set out in the ASX Good
Corporate Governance and Best Practice Recommendations.
The essential corporate governance principles are:
1 Lay solid foundations for management and oversight;
2 Structure the Board to add value;
3 Promote ethical and responsible decision-making;
4 Safeguard integrity in financial reporting;
5 Make timely and balanced disclosure;
6 Respect the rights of shareholders;
7 Recognise and manage risk;
8 Remunerate fairly and responsibly.
1. Lay solid foundations for management and oversight.
Recommendation 1.1: Management should establish and disclose functions reserved to the board and
delegated to management.
Roles and Responsibilities:
The roles and responsibilities carried out by the Board are to:
Oversee control and accountability of the Company;
Set the broad targets, objectives, and strategies;
Monitor financial performance;
Assess and review risk exposure and management;
Oversee compliance, corporate governance, and legal obligations;
Approve all major purchases, disposals, acquisitions, and issue of new shares;
Approve the annual and half-year financial statements;
Appoint and remove the Company‘s Auditor;
Appoint and assess the performance of the Managing Director and members of the senior management
team;
Report to shareholders.
Recommendation 1.2: Companies should disclose the process for evaluating the performance of senior
executives.
The Board regularly reviews the performance of senior executives.
Recommendation 1.3: Provide the information indicated in the ASX Corporate Governance Council’s Guide to
Reporting on Principle 1.
The evaluation of performance of senior executives has taken place throughout the year.
2. Structure the Board to add value.
Recommendation 2.1: A majority of the Board should be independent Directors. – Mr O’Loughlin is an
independent Director. There are no other independent Directors. Refer general comment below.
Recommendation 2.2: The Chairperson should be an independent Director. – The Chairman is not
independent. Refer general comment below.
Recommendation 2.3: The roles of the Chairperson and Chief Executive should not be exercised by the same
individual.
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Recommendation 2.4: Establishment of a nominations committee.
Recommendation 2.5: Disclose the process for performance evaluation of the board, its committees and
individual directors, and key executives.
Recommendation 2.6: Provide the information indicated in the ASX Corporate Governance Council’s Guide to
Reporting on Principle 2.
General Comments:
Membership
The Board‘s membership and structure is selected to provide the Company with the most appropriate direction
in the areas of business controlled by the Company. The Board currently consists of four members; a Managing
Director, and three non-executive Directors. Refer to the Directors‘ Report for details of each Director‘s profile.
The majority of the Board is not independent. Mr O‘Loughlin is an independent director. The directors each
hold shares in the Company. The size of the board does not allow a majority of independent directors.
Chairman and Managing Director
The roles of the Chairman and the Managing Director are separate. The Chairman is responsible for leading the
Board in its duties, and facilitating effective discussions at Board level. The Managing Director is responsible for
the efficient and effective operation of the Company.
Nomination Committee
The Company has a formal charter for the Nomination Committee, however, no Committee has been appointed
to date. The Board as a whole deals with areas that would normally fall under the charter of the Nomination
Committee. These include matters relating to the renewal of Board members, and Board performance.
Skills
The Directors bring a range of skills and background to the Board including exploration, accountancy, finance,
stockbroking, and legal.
Experience
The Directors have considerable experience in business at both operational and corporate levels.
Meetings
The Board endeavours to meet at least bi-monthly on a formal basis, although the board regularly meets
informally.
Independent professional advice
Each Director has the right to seek independent professional advice at the Company‘s expense for which the
prior approval of the Chairman is required, and is not unreasonably withheld.
3. Promote ethical and responsible decision-making.
Recommendation 3.1: Establish a code of conduct to guide the Directors, the Chief Executive Officer (or
equivalent) and any other key executives as to:
3.1.1 The practices necessary to maintain confidence in the Company’s integrity;
3.1.2 The practices necessary to take into account legal obligations and the reasonable expectations of
shareholders;
3.1.2 The responsibility and accountability of individuals for reporting and investigating reports of unethical
practices.
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Recommendation 3.2: Disclose the policy concerning trading in Company securities by Directors, officers, and
employees.
Standards
The Company is committed to its Directors and employees maintaining high standards of integrity, and ensuring
that activities are in compliance with the letter and spirit of both the law and Company policies. Each staff
member is issued with the Company‘s Policies and Procedures manual at the beginning of their employment
with the Company.
Recommendation 3.3: Provide the information indicated in the ASX Corporate Governance Council’s Guide to
Reporting on Principle 3.
A summary of both the Company‘s Code of Conduct and its Share Trading Policy are included on the
Company‘s website.
4. Safeguard integrity in financial reporting.
Recommendation 4.1: The Board should establish an audit committee.
Recommendation 4.2: Structure the audit committee so that it consists of:
Only non-executive Directors;
A majority of independent Directors;
An independent Chairperson, who is not Chairperson of the Board;
At least three members.
Recommendation 4.3: The Audit Committee should have a formal charter. – Refer to Recommendation 4.1.
General Comments:
Integrity of Company’s Financial Condition
The Company‘s Financial Controller and Company Secretary report in writing to the Board that the consolidated
financial statements of the Company and its controlled entities for the half and full financial year present a true
and fair view, in all material respects, of the Company‘s financial condition and operational results are in
accordance with relevant accounting standards.
Audit Committee
The Company has a formal charter for an Audit Committee. The Audit Committee comprises Messers Fraser
and O‘Loughlin who are responsible for the following activities:
Review the Company‘s accounting policies;
Review the content of financial statements;
Review the scope of the external audit, its effectiveness, and independence of the external audit;
Ensure accounting records are maintained in accordance with statutory and accounting standard
requirements;
Monitor systems used to ensure financial and other information provided is reliable, accurate, and timely;
Review the audit process with the external auditors to ensure full and frank discussion of audit issues;
Present half and full year financial statements to the Board.
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5. Make timely and balanced disclosure.
Recommendation 5.1: Establish written policies and procedures designed to ensure compliance with ASX
Listing rules disclosure requirements and to ensure accountability at a senior management level for that
compliance.
Being a listed entity on the ASX, the Company has an obligation under the ASX Listing Rules to maintain an
informed market with respect to its securities. Accordingly, the Company advises the market of all information
required to be disclosed under the Rules that the Board believes would have a material affect on the price of the
Company's securities.
The Company Secretary has been appointed as the person responsible for communication with the Australian
Securities Exchange (ASX). This role includes responsibility for ensuring compliance with the continuous
disclosure requirements of the ASX Listing Rules, and overseeing and co-ordinating information disclosure to
the ASX, analysts, brokers, shareholders, the media, and the public.
All shareholders receive a copy of the Company's annual report.
Recommendation 5.2: Provide the information indicated in the ASX Corporate Governance Councils’ Guide to
Reporting on Principle 5.
Disclosure is reviewed as a routine agenda item at each Board meeting.
6. Respect the rights of shareholders.
Recommendation 6.1: Design and disclose a communications strategy to promote effective communication
with shareholders and encourage effective participation at general meetings.
Recommendation 6.2: Request the external auditor to attend the annual general meeting and be available to
answer shareholder questions about the conduct of the audit, and the preparation and content of the auditor's
report.
General Comments:
The Company is committed to keeping shareholders fully informed of significant developments at the Company.
In addition to public announcements of its financial statements and significant matters, the Company provides
the opportunity for shareholders to question the Board and management about its activities at the Company's
annual general meeting.
The Company's auditor, Bentleys, will be in attendance at the annual general meeting and will also be available
to answer questions from shareholders about the conduct of the audit and the preparation and content of the
auditor's report.
7. Recognise and manage risk
Recommendation 7.1: The Board or appropriate Board committee should establish policies on risk oversight
and management.
Recommendation 7.2: The chief executive officer (or equivalent) and the chief financial officer (or equivalent)
to state in writing to the Board that:
7.2.1 The statement given in accordance with best practice recommendation 4.1 (the integrity of financial
statements) is founded on a sound system of risk management and internal compliance and control
which implements the policies adopted by the Board.
7.2.2 The Company's risk management and internal compliance and control system is operating efficiently and
effectively in all material respects.
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Recommendation 7.3: The board should disclose whether it has received assurance from the chief executive
officer (or equivalent) and the chief financial officer (or equivalent) that the declaration provided in accordance
with section 295A of the Corporations Act is founded on a system of risk management and internal control and
that the system is operating effectively in all material respects in relation to the financial reporting risks.
Recommendation 7.4: Provide the information indicated in the ASX Corporate Governance Council’s Guide to
reporting on Principle 7.
General Comments:
The Board oversees the Company's risk profile. The financial position of the Company and matters of risk are
considered by the Board. The Board is responsible for ensuring that controls and procedures to identify,
analyse, assess, prioritise, monitor and manage risk are in place, being maintained and adhered to.
The Financial Controller and Company Secretary state in writing to the Board that:
The statement given in accordance with best practice recommendation 4.1 (the integrity of financial
statements) is founded on a sound system of risk management and internal compliance and control, which
implements the policies adopted by the Board.
The Company's risk management and internal compliance and control system is operating efficiently and
effectively in all material respects.
8. Remunerate fairly and responsibly
Recommendation 8.1: The Board should establish a Remuneration Committee.
Recommendation 8.2: Clearly distinguish the structure of non-executive Directors' remuneration from that of
executives.
Recommendation 8.3: Provide the information indicated in the ASX Corporate Governance Council’s Guide to
Reporting on Principle 8.
General Comments:
Principles used to determine the nature and amount of remuneration
The objective of the Company's remuneration framework is to ensure reward for performance is competitive and
appropriate to the results delivered. The framework aligns executive reward with the creation of value for
shareholders, and conforms to market best practice.
The remuneration committee ensures that executive rewards satisfy the following key criteria for good reward
governance practices:
Competitiveness and reasonableness;
Acceptability to the shareholders;
Performance linked;
Transparency;
Capital management.
The Company has structured an executive remuneration framework that is market competitive and
complimentary to the reward strategy of the organisation.
Remuneration Committee
Members of the Remuneration Committee are Mr Fraser and Mr Stephenson.
Directors' Remuneration
Further information on Directors' and executives' remuneration is set out in the Directors' Report and Note 5 to
the financial statements.
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DIRECTORS’ REPORT
Your Directors present their report on the Group for the financial year ended 30 June 2010.
Directors
The names of Directors in office at any time during or since the end of the year are:
Mr Brett Fraser
Dr Bob Beeson
Mr Jay Stephenson
Mr Simon O‘Loughlin
Directors have been in office since the start of the financial year to the date of this report unless otherwise
stated.
Company Secretary
The following person held the position of Company Secretary at the end of the financial year:
Mr Jay Richard Stephenson — Fellow of Certified Practicing Accountants; Certified Management
Accountant; Member of Australian Institute of Company Directors; Master of Business Administration;
Fellow of Institute of Chartered Secretaries Australia. Mr Stephenson is also a non-executive director and
performs the role of Chief Financial Officer for the Company.
Principal Activities
The principal activities of the Group during the financial year were the exploration and evaluation of its projects
in Sweden, Africa, and Australia.
Operating Results
The consolidated loss for the year amounted to $1,679,699 (2009: $1,959,505).
Dividends Paid or Recommended
There were no dividends paid or recommended during the financial year ended 30 June 2010.
Review of Operations
A detailed review of the Group‘s exploration activities is set out in the section titled ―Review of Operations‖ in this
annual report.
Financial Position
The net assets of the Group have increased by $2,456,780 from 30 June 2009 to $7,837,542 at 30 June 2010.
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Significant Changes in State of Affairs
The following significant changes in the state of affairs of the Group occurred during the financial year:
(a) On 14 July 2009, the Company completed a placement of 10,000,000 Shares at an issue price of
$0.10 to raise $1,000,000.
(b) On 22 September 2009, the Company completed a placement of 9,670,000 Shares at an issue price of
$0.16 to raise $1,547,200.
(c) On 13 November 2009, the Company completed a placement of 9,080,000 Shares at an issue price of
$0.16 to raise $1,452,800.
After Balance Date Events
After balance date events include the following:
a) On 21 July 2010, the Company announced its initial inferred resource of 291 million lbs of U3O8 at its
Haggan Project in Sweden;
b) On 16 September 2010, the Company announced a placement of 12,484,898 Shares at an issue price
of $0.15 per Share to raise $1,872,735; and
c) On 16 September 2010, the Company also announced a fully underwritten 1 for 5 Rights Issue to
Shareholders at an issue price of $0.15 to raise a further $2,871,527.
There has been no other after balance date events.
Likely Developments
Likely developments, future prospects and business strategies of the operations of the Group and the expected
results of those operations have not been included in this report as the directors believe, on reasonable
grounds, that the inclusion of such information would be likely to result in unreasonable prejudice to the Group.
Information on Directors
Mr Brett Fraser
— Chairman (Non-Executive).
Qualifications
— Fellow of Certified Practicing Accountants; Fellow of the Financial Services
Institute of Australasia; Grad Dip Finance, Securities Institute of Australia;
Bachelor of Business (Accounting); International Marketing Institute - AGSM
Sydney.
Experience
— Board member since 24 August 2005.
Interest in Shares and
Options
— 1,326,000 Ordinary Shares in Aura Energy Limited and options to acquire a
further 1,000,000 ordinary shares.
Special Responsibilities
— Member of the Due Diligence Committee and Remuneration Committee.
Directorships held in other
listed entities
— Current non-executive director and Chairman of Drake Resources Limited
since March 2004, non-executive director and Chairman of Blina Diamonds
NL and Doray Minerals Limited since September 2008 and October 2009
respectively. Past non-executive director of Gage Roads Brewing Co Limited
from November 2007 to September 2008. No other directorships in the past
three years.
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Dr Robert Beeson
— Managing Director
Qualifications
— Bachelor of Science with Honours; PhD; Member of the Australian Institute of
Geoscientists
Experience
— Geologist with over 30 years of global experience in base and precious metal
exploration and development. Board member since 31 March 2006.
Interest in Shares and
Options
Directorships held in other
listed entities
— 1,165,000 Ordinary Shares in Aura Energy Limited and options to acquire a
further 3,000,000 ordinary shares.
— Current Managing Director of Drake Resources Limited since November
2004. No other directorships in the past three years.
Mr Jay Stephenson
— Director (Non-Executive); Company Secretary
Qualifications
— Fellow of Certified Practicing Accountants; Certified Management Accountant;
Member Australian Institute of Company Directors; Master of Business
Administration; Fellow Institute of Chartered Secretaries Australia.
Experience
— Board member since 24 August 2005
Interest in Shares and
Options
— 1,146,000 Ordinary Shares in Aura Energy Limited and options to acquire a
further 1,000,000 ordinary shares.
Special Responsibilities
— Member of Due Diligence Committee and Remuneration Committee
Directorships held in other
listed entities
— Current non-executive Director of Drake Resources Limited since March
2004, Strategic Minerals Corporation NL since July 2009 and Doray Minerals
Limited since August 2009. Past non-executive director of Excelsior Gold
Limited from October 2009 to November 2009. No other directorships in the
past three years.
Mr Simon O’Loughlin
— Director (Non-Executive)
Qualifications
Experience
Interest in Shares and
Options
— BA(Acc),Law Society Certificate in Law.
— Board member since 31 March 2006.
— 768,112 Ordinary Shares in Aura Energy Limited and options to acquire a
further 1,000,000 ordinary shares.
Special Responsibilities
— Member of Due Diligence Committee
Directorships held in other
listed entities
— Current Chairman of Bondi Mining Limited since December 2006, Avenue
Resources Limited since March 2010 and Kagera Nickel Limited since
September 2010, Current Non-Executive Director of WCP Resources Limited
since March 2005, Petratherm Limited since July 2004, Chesser Resources
Limited since May 2007, and Living Cell Technologies Limited since May
2004, Probiomics Limited since July 2008, and Strzelecki Metals Limited since
September 2010. No other directorships in the past three years.
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DIRECTORS’ REPORT
Meetings of Directors
During the financial year, 3 meetings of Directors (including committees of Directors) were held. Attendances by
each Director during the year were as follows:
COMMITTEE MEETINGS
DIRECTORS‘
MEETINGS
DUE
DILIGENCE
COMMITTEE
REMUNERATION
AUDIT
COMMITTEE
COMMITTEE
Number eligible
to attend
Number
Attended
Number
eligible to
attend
Number
Attended
Number
eligible to
attend
Number
Attended
Number
eligible to
attend
Number
Attended
Brett Fraser
Bob Beeson
Jay Stephenson
Simon O‘Loughlin
3
3
3
3
3
3
3
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
-
-
1
1
-
-
1
Indemnifying Officers or Auditor
During or since the end of the financial year the Company has given an indemnity or entered into an agreement
to indemnify, or paid or agreed to pay insurance premiums as follows:
The Company has entered into agreements to indemnify all Directors and provide access to
documents, against any liability arising from a claim brought by a third party against the
Company. The agreement provides for the company to pay all damages and costs which may
be awarded against the Directors.
The Company has paid premiums to insure each of the directors against liabilities for costs and
expenses incurred by them in defending any legal proceedings arising out of their conduct while
acting in the capacity of director of the company, other than conduct involving a willful breach of
duty in relation to the Company. The amount of the premium was $10,566.
No indemnity has been paid to auditors.
Options
At the date of this report, the un-issued ordinary shares of Aura Energy Limited under option are as follows:
Grant Date
Date of Expiry
Exercise Price
Number under Option
1 February 2007
1 February 2012
24 April 2008
24 April 2008
24 April 2008
30 June 2011
24 April 2013
30 June 2011
30 November 2009
1 September 2011
23 December 2009
23 December 2014
$0.25
$0.55
$0.60
$0.50
$0.23
$0.30
550,000
1,500,000
400,000
100,000
4,500,000
400,000
7,450,000
No person entitled to exercise the option has or has any right by virtue of the option to participate in any share
issue of any other body corporate.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
DIRECTORS’ REPORT
Environmental Regulations
In the normal course of business, there are no environmental regulations or requirements that the Company is
subject to.
The directors have considered the recently enacted National Greenhouse and Energy Reporting Act 2007 (the
NGER Act) which introduces a single national reporting framework for the reporting and dissemination of
information about the greenhouse gas emissions, greenhouse gas projects, and energy use and production of
corporations. At the current stage of development, the directors have determined that the NGER Act will have
no effect on the company for the current, nor subsequent, financial year. The directors will reassess this
position as and when the need arises.
Non-audit Services
No non-audit services were provided to the company in the year ended 30 June 2010.
Proceedings on Behalf of Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any
proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company
for all or any part of those proceedings.
The Company was not a party to any such proceedings during the year.
Auditor’s Independence Declaration
The lead auditor‘s independence declaration for the year ended 30 June 2010 has been received and can be
found on page 20 of the financial report.
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
REMUNERATION REPORT
A. Remuneration Policy
The remuneration policy of Aura Energy Limited has been designed to align director and management
objectives with shareholder and business objectives by providing a fixed remuneration component, and offering
specific long-term incentives based on key performance areas affecting the Group‘s financial results. The Board
of Aura Energy Limited believes the remuneration policy to be appropriate and effective in its ability to attract
and retain the best management and directors to run and manage the Group, as well as create goal congruence
between directors, executives and shareholders.
The Board‘s policy for determining the nature and amount of remuneration for Board members and senior
executives of the Group is as follows:
The remuneration policy, setting the terms and conditions for the executive directors and other senior
executives, was developed by the Remuneration Committee and approved by the Board. All executives receive
a base salary (which is based on factors such as length of service and experience), superannuation, options
and performance incentives. The Remuneration Committee reviews executive packages annually by reference
to the Group‘s performance, executive performance, and comparable information from industry sectors and
other listed companies in similar industries.
Executives are also entitled to participate in the employee share and option arrangements.
The non-executive Directors and executives receive a superannuation guarantee contribution required by the
government, which is currently 9%, and do not receive any other retirement benefits.
All remuneration paid to Directors and executives is valued at the cost to the Company and expensed. Options
given to Directors and employees are valued using the Black-Scholes methodology.
The Board policy is to remunerate non-executive Directors at the lower end of market rates for comparable
companies for time, commitment, and responsibilities. The non-executive Directors have been provided with
options that are meant to incentivise the non-executive Directors. The Remuneration Committee determines
payments to the non-executive Directors and reviews their remuneration annually based on market practice,
duties, and accountability. Independent external advice is sought when required. The maximum aggregate
amount of fees that can be paid to non-executive Directors is subject to approval by shareholders at the Annual
General Meeting. Fees for non-executive Directors are not linked to the performance of the Group. However, to
align Directors‘ interests with shareholder interests, the Directors are encouraged to hold shares in the
Company.
The remuneration policy has been tailored to increase the direct positive relationship between shareholders
investment objectives and directors and executives performance. Currently, this is facilitated through the issue
of options to the majority of directors and executives to encourage the alignment of personal and shareholder
interests. The Company believes this policy will be effective in increasing shareholder wealth. For details of
directors and executives interests in options at year end, refer to note 5 of the financial statements.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
REMUNERATION REPORT
B. Remuneration Details for the Year Ended 30 June 2010
There were no cash bonuses paid during the year and there are no set performance criteria for achieving cash
bonuses.
The following table of benefits and payment details, in respect to the financial year, the components of
remuneration for each member of the key management personnel of the Group:
2010
Group Key
Management
Personnel
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Equity-settled share-
based payments
Total
Salary,
Profit
fees and
leave
share and
bonuses
Non-
monetary
Other
Super-
annuation
Other
Equity
Options
$
$
$
$
$
$
$
$
$
Brett Fraser
Bob Beeson
Jay Stephenson
55,000
140,000
40,000
Simon O‘Loughlin
40,000
275,000
-
-
-
-
-
-
-
-
-
-
45,000*
4,519
-
50,000
45,000*
3,600
-
3,600
90,000
61,719
-
-
-
-
-
-
-
-
-
-
55,942
160,461
83,911
273,911
55,942
144,542
55,942
99,542
251,737
678,456
2009
Group Key
Management
Personnel
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Equity-settled share-
based payments
Total
Salary,
fees and
leave
Profit
share and
bonuses
Non-
monetary
Other
Super-
annuation
Other
Equity
Options
$
$
$
$
$
$
$
$
$
Brett Fraser
Bob Beeson
Jay Stephenson
50,000
80,800
30,000
Simon O‘Loughlin
30,000
190,800
-
-
-
-
-
-
-
-
-
-
38,250*
4,500
-
50,000
38,250*
2,700
-
2,700
76,500
59,900
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
92,750
130,800
70,950
32,700
327,200
*Cash from other activities paid to Mr Fraser and Mr Stephenson are paid to Wolfstar Group Pty Ltd, a company
controlled by Mr Fraser and Mr Stephenson. Wolfstar Group Pty Ltd provides Financial and Company Secretarial
services to Aura Energy Limited.
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ANNUAL REPORT 30 JUNE 2010
REMUNERATION REPORT
C. Service Agreements
The Managing Director, Dr Robert Beeson, is employed under an extension of the terms of a previous contract
of employment.
The employment contract stipulates a one month resignation period. The Company may terminate the
employment contract without cause by providing one month‘s written notice, or making payment in lieu of notice
based on the individual‘s annual salary component. Termination payments are generally not payable on
resignation or dismissal for serious misconduct. In the instance of serious misconduct the Company can
terminate employment at any time.
D. Share-based compensation
Incentive Option Scheme
Options are granted under the Aura Energy Limited Incentive Option Scheme. All staff who have been
continuously employed by the Company for a period of at least one year are eligible to participate in the plan.
Options are granted under the plan for no consideration.
Director and Key Management Personnel Options
On 30 November 2009, 4,500,000 share options were granted to directors to take up ordinary shares at an
exercise price of $0.23 each. The options are exercisable on or before 1 September 2011.
There were no director options issued during the 2009 financial year.
Share-based Payments
The terms and conditions relating to options granted as remuneration during the year to Directors and Key
Management Personnel during the year are as follows:
Percentage
vested during
year
%
(Note 2)
Percentage
forfeited
during year
%
Percentage
remaining as
unvested
%
Grant
value
$
Reason
for grant
Expiry date for
vesting
Grant date
Range of
possible
values
relating to
future
payments
Group Key
Management
Personnel
Brett Fraser
30 November 2009
95,900 Note 1
Bob Beeson
30 November 2009
143,850 Note 1
Jay Stephenson 30 November 2009
95,900 Note 1
Simon O‘Loughlin 30 November 2009
95,900 Note 1
58
58
58
58
-
-
-
-
42
42
42
42
1 September 2011
1 September 2011
1 September 2011
1 September 2011
-
-
-
-
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
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ANNUAL REPORT 30 JUNE 2010
REMUNERATION REPORT
Note 1
The options have been granted to Key Management Personnel (KMP) to provide a market-linked
incentive package in their capacity as KMP and for future performance by them in their roles. The
vesting conditions of the options are as follows:
KMP options will vest 12 months after the issue date and if the KMP is continually employed
by the Company during that 12 months.
KMP options vest only if the share price is greater than 26 cents for 5 consecutive days
during the 12 months vesting period.
Director options will vest immediately if there is a change or addition in directors exceeding
50% to those in office on date of issue.
Note 2
The dollar value of the percentage vested during the period has been reflected in the Table of
Benefits and Payments on previous page.
All options were issued by Aura Energy Limited and entitle the holder to one ordinary share in Aura
Energy Limited for each option exercised.
Options Granted
Group Key
Management
Personnel
Grant details
For the financial year ended 30 June 2010
Overall
Value
$
Date
No.
(Note 1)
Exercised
no.
Exercised
$
Lapsed
no.
Lapsed
$
Vested
no.
Vested
%
Unvested
%
Lapsed
%
Brett Fraser
30 November 2009 1,000,000
95,900
Bob Beeson
30 November 2009 1,500,000 143,850
Jay Stephenson 30 November 2009 1,000,000
95,900
Simon O‘Loughlin 30 November 2009 1,000,000
95,900
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
58
58
58
42
42
42
-
-
-
Note 1
The value of options granted as remuneration and as shown in the above table has been determined
in accordance with applicable accounting standards.
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
REMUNERATION REPORT
Description of Options Issued as Remuneration
Details of the options granted as remuneration to those key management personnel listed in the previous table
are as follows:
Grant date
Issuer
30 November 2009 Aura Energy Limited
Entitlement on
exercise
Dates exercisable
1:1 Ordinary Shares
From vesting date to 11
in Aura Energy
Limited
September 2011
(expiry)
Exercise
price
$
Value per
option at
grant date
$
Amount paid/
payable by
recipient
$
$0.23
$0.0959
-
Option values at grant date were determined using the Black-Scholes method.
Details relating to service and performance criteria required for vesting have been provided in the Share-based
Payments table in Note 17.
This Report of the Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of
the Board of Directors.
JAY STEPHENSON
DIRECTOR
Dated this 30th Day of September 2010
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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To The Board of Directors
Auditor’s Independence Declaration under Section 307C of the Corporations
Act 2001
This declaration is made in connection with our audit of the financial report of Aura Energy Limited and
Controlled Entities for the year ended 30 June 2010 and in accordance with the provisions of the
Corporations Act 2001.
We declare that, to the best of our knowledge and belief, there have been:
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
no contraventions of the Code of Professional Conduct of the Institute of Chartered Accountants in
Australia in relation to the audit.
Yours faithfully
BENTLEYS
Chartered Accountants
RANKO MATIC CA
Director
DATED at PERTH this 30th day of September 2010
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2010
Revenue
Other Income
Accounting and Audit Fees
Share registry and Listing Fees
Employee Benefits Expense
Legal and Consulting Fees
Computers and Software
Travel and Accommodation
Insurance
Depreciation
Share-based Payments (Expense)/Recoupment
Impairment on Capitalised Exploration
Transaction Costs
Business development
Other expenses
Loss before Income Tax
Income Tax Expense
Loss from Continuing Operations
Other Comprehensive Income
Foreign Currency Movement
Other Comprehensive Income for the year
Note
2010
$
2009
$
2
2
282,020
128,142
48,306
15,995
330,326
(37,521)
(47,434)
144,137
(68,680)
(49,206)
(505,855)
(437,104)
(13,791)
(27,100)
(91,835)
(17,577)
(55,967)
(293,777)
(44,676)
(29,982)
(49,488)
(25,729)
(54,950)
23,940
(452,156)
(1,116,409)
-
(116,972)
(323,706)
(16,967)
(143,306)
(117,419)
(1,679,699)
(1,959,505)
-
-
(1,679,699)
(1,959,505)
17,702
17,702
(16,769)
(16,769)
3
3
4
Total Comprehensive income attributable to members
of the parent entity
(1,661,997)
(1,976,274)
Overall Operations:
Basic loss per share (cents per share)
7
(2.15)
(4.46)
The accompanying notes form part of these financial statements.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2010
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Other assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Short term provisions
TOTAL CURRENT LIABILITIES
Note
2010
$
2009
$
8
9
10
11
12
13
1,221,825
1,225,387
89,732
289,837
1,311,557
1,515,224
53,327
85,895
6,697,363
3,966,028
6,750,690
4,051,923
8,062,247
5,567,147
207,811
16,894
224,705
184,981
1,404
186,385
TOTAL LIABILITIES
224,705
186,385
NET ASSETS
7,837,542
5,380,762
EQUITY
Issued Capital
Reserves
Accumulated Losses
TOTAL EQUITY
14
15
12,681,865
8,856,865
860,062
745,983
(5,704,385)
(4,222,086)
7,837,542
5,380,762
The accompanying notes form part of these financial statements.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2010
Issued
Capital
Accumulated
Losses
Options
Reserve
Foreign
Exchange
Reserve
Total
$
$
$
$
$
Balance at 1 July 2008
7,740,456
(2,262,581)
787,580
Loss attributable to members of
parent entity
Other comprehensive income
Total comprehensive income for
the year
Transaction with owners, directly
in equity
Shares issued during the year
Transaction costs
Share based payments expense
Options exercised
-
-
-
(1,959,505)
-
(1,959,505
1,156,043
(58,272)
-
18,638
-
-
-
-
-
-
-
-
-
(23,940)
(888)
-
-
6,265,455
(1,959,505)
(16,769)
(16,769)
(16,769)
(1,976,274)
-
-
-
-
1,156,043
(58,272)
(23,940)
17,750
Balance at 30 June 2009
8,856,865
(4,222,086)
762,752
(16,769)
5,380,762
Balance at 1 July 2009
8,856,865
(4,222,086)
762,752
(16,769)
5,380,762
Loss attributable to members of
parent entity
Other comprehensive income
Total comprehensive income for
the year
Transaction with owners, directly
in equity
Shares issued during the year
Transaction costs
Options expired during the year
Options issued during the year
-
-
-
(1,679,699)
-
(1,679,699)
4,000,000
(175,000)
-
-
-
-
-
-
-
-
-
197,400
(197,400)
-
293,777
-
(1,679,699)
17,702
17,702
17,702
(1,661,997)
-
-
-
-
4,000,000
(175,000)
-
293,777
Balance at 30 June 2010
12,681,865
(5,704,385)
859,129
933
7,837,542
The accompanying notes form part of these financial statements.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Interest received
Payments to suppliers and employees
Payments for exploration expenditure
Note
2010
$
2009
$
709,563
109,121
90,828
51,202
(1,578,094)
(1,085,492)
(3,045,628)
(1,229,667)
Net cash used in operating activities
16a
(3,823,331)
(2,154,836)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of plant and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Capital raising costs
Net cash provided by financing activities
Net decrease in cash held
Cash at 1 July
(23,399)
(23,399)
(4,723)
(4,723)
4,000,000
1,173,793
(175,000)
(58,272)
3,825,000
1,115,521
(21,730)
(1,044,038)
1,225,387
2,420,419
Effect of exchange rates on cash holdings in foreign currencies
18,168
(150,994)
Cash at 30 June
8
1,221,825
1,225,387
The accompanying notes form part of these financial statements.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
This financial report includes the consolidated financial statements and notes of Aura Energy Limited and
controlled entities (‗Consolidated Group‘ or ‗Group‘). Aura Energy Limited is a company limited by shares,
domiciled and incorporated in Australia.
Basis of Preparation
The financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards, including Australian Accounting Interpretations, other authoritative pronouncements of
the Australian Accounting Standards Board and the Corporations Act 2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a
financial report containing relevant and reliable information about transactions, events and conditions to which
they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes
also comply with International Financial Reporting Standards. Material accounting policies adopted in the
preparation of this financial report are presented below. They have been consistently applied unless otherwise
stated.
The financial report has been prepared on an accruals basis and is based on historical costs modified, where
applicable, by the measurement at fair value of selected non-current assets, financial assets and financial
liabilities.
(a) Principles of Consolidation
A controlled entity is any entity over which Aura Energy Limited has the power to govern the financial and
operating policies so as to obtain benefits from its activities. In assessing the power to govern, the
existence and effect of holdings of actual and potential voting rights are considered.
A list of controlled entities is contained in Note 23 to the financial statements.
All inter-group balances and transactions between entities in the Consolidated Group, including any
unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries
have been changed where necessary to ensure consistency with those adopted by the parent entity.
As at reporting date, the assets and liabilities of all controlled entities have been incorporated into the
consolidated financial statements as well as their results for the year then ended. Where controlled
entities have entered (left) the Consolidated Group during the year, their operating results have been
included (excluded) from the date control was obtained (ceased).
(b) Exploration and Development Expenditure
Exploration, evaluation, and development expenditure incurred is accumulated in respect of each
identifiable area of interest. These costs are only carried forward to the extent that they are expected to be
recouped through the successful development of the area or where activities in the area have not yet
reached a stage that permits reasonable assessment of the existence of economically recoverable
reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which
the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over
the life of the area according to the rate of depletion of the economically recoverable reserves.
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
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ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to
carry forward costs in relation to that area of interest.
Costs of site restoration are provided over the life of the facility from when exploration commences and are
included in the costs of that stage. Site restoration costs include the dismantling and removal of mining
plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with
clauses of the mining permits. Such costs have been determined using estimates of future costs, current
legal requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs
of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community
expectations and future legislation. Accordingly the costs have been determined on the basis that the
restoration will be completed within one year of abandoning the site.
(c)
Income Tax
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated
using applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax
liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the
relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances
during the year as well unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the
profit or loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets
also result where amounts have been fully expensed but future tax deductions are available. No deferred
income tax will be recognised from the initial recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at
reporting date. Their measurement also reflects the manner in which management expects to recover or
settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the
extent that it is probable that future taxable profit will be available against which the benefits of the
deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and
joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the
temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable
future.
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is
intended that net settlement or simultaneous realisation and settlement of the respective asset and liability
will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists,
the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either
the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous
realisation and settlement of the respective asset and liability will occur in future periods in which
significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
(d) Plant and Equipment
Each class of plant and equipment is carried at cost or fair value less, where applicable, any accumulated
depreciation and impairment losses.
Plant and equipment
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not in excess
of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the
expected net cash flows that will be received from the assets employment and subsequent disposal. The
expected net cash flows have not been discounted to their present values in determining recoverable
amounts.
Depreciation
The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding
freehold land, is depreciated on a straight line basis over their useful lives to the Consolidated Group
commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over
the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Plant and equipment
Computers
Depreciation Rate
20%
33%
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance
sheet date.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These
gains and losses are included in the statement of comprehensive income. When re-valued assets are
sold, amounts included in the revaluation reserve relating to that asset are transferred to retained
earnings.
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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(e) Employee Benefits
Provision is made for the Company‘s liability for employee benefits arising from services rendered by
employees to balance date. Employee benefits that are expected to be settled within one year have been
measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee
benefits payable later than one year have been measured at the present value of the estimated future
cash outflows to be made for those benefits.
(f)
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank
overdrafts are shown within short-borrowings in current liabilities on the Statement of financial position.
(g)
Revenue and Other Income
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to
the financial assets.
Management fees are recognised on portion of completion basis.
Equipment chargebacks are recognised on receipt of compensation.
All revenue is stated net of the amount of goods and services tax (GST).
(h)
Goods and Services Tax (GST)
Revenues, expenses, and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables
and payables in the statement of financial position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component
of investing and financing activities, which are disclosed as operating cash flows.
(i)
Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the
asset, but not the legal ownership that are transferred to entities in the Group are classified as finance
leases.
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to
the fair value of the leased property or the present value of the minimum lease payments, including any
guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and
the lease interest expense for the period.
Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely
that the Group will obtain ownership of the asset or over the term of the lease.
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor,
are charged as expenses in the periods in which they are incurred.
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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Lease incentives under operating leases are recognised as a liability and amortised on a straight-line
basis over the life of the lease term.
(j)
Financial Instruments
Initial recognition and measurement
Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity
becomes a party to the contractual provisions of the instrument. Trade date accounting is adopted for
financial assets that are delivered within timeframes established by marketplace convention.
Financial instruments are initially measured at fair value plus transactions costs where the instrument is
not classified as at fair value through profit or loss. Transaction costs related to instruments classified as
at fair value through profit or loss are expensed to profit or loss immediately. Financial instruments are
classified and measured as set out below.
The Group does not designate any interests in subsidiaries, associates or joint venture entities as being
subject to the requirements of accounting standards specifically applicable to financial instruments.
Financial assets at fair value through profit and loss
Financial assets are classified at fair value through profit or loss when they are held for trading for the
purpose of short term profit taking, where they are derivatives not held for hedging purposes, or
designated as such to avoid an accounting mismatch or to enable performance evaluation where a group
of financial assets is managed by key management personnel on a fair value basis in accordance with a
documented risk management or investment strategy. Realised and unrealised gains and losses arising
from changes in fair value are included in profit or loss in the period in which they arise.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market and are subsequently measured at amortised cost.
Loans and receivables are included in current assets, except for those which are not expected to mature
within 12 months after the end of the reporting period. (All other loans and receivables are classified as
non-current assets.)
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or
determinable payments, and it is the Group‘s intention to hold these investments to maturity. They are
subsequently measured at amortised cost.
Held-to-maturity investments are included in non-current assets, except for those which are expected to
mature within 12 months after the end of the reporting period. (All other investments are classified as
current assets.)
If during the period the Group sold or reclassified more than an insignificant amount of the held-to-maturity
investments before maturity, the entire held-to-maturity investments category would be tainted and
reclassified as available-for-sale.
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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be
classified into other categories of financial assets due to their nature, or they are designated as such by
management. They comprise investments in the equity of other entities where there is neither a fixed
maturity nor fixed or determinable payments.
Available-for-sale financial assets are included in non-current assets, except for those which are expected
to mature within 12 months after the end of the reporting period. (All other financial assets are classified
as current assets.
Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at
amortised cost.
Derivative instruments
Derivative instruments are measured at fair value. Gains and losses arising from changes in fair value are
taken to the statement of comprehensive income unless they are designated as hedges.
Fair value
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are
applied to determine the fair value for all unlisted securities, including recent arm‘s length transactions,
reference to similar instruments and option pricing models.
Impairment
At each reporting date, the Group assesses whether there is objective evidence that a financial instrument
has been impaired. In the case of available-for sale financial instruments, a prolonged decline in the value
of the instrument is considered to determine whether an impairment has arisen. Impairment losses are
recognised in the statement of comprehensive income.
Derecognition
Financial assets are derecognised where the contractual rights to cash flow expires or the asset is
transferred to another party whereby the entity no longer has any significant continuing involvement in the
risks and benefits associated with the asset. Financial liabilities are derecognised where the related
obligations are either discharged, cancelled or expired. The difference between the carrying value of the
financial liability extinguished or transferred to another party and the fair value of consideration paid,
including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.
(k)
Earnings Per Share
Basic earnings per share
i.
Basic earnings per share is determined by dividing the profit attributable to equity holders of the Company,
excluding any costs of service equity other than ordinary shares, by the weighted average number of
ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares
issued during the year.
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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
ii. Diluted earnings per share
Diluted earnings per share adjusts the figure used in the determination of basic earnings per share to take
into account the after income tax effect of interest and other financial costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for
no consideration in relation to dilutive potential ordinary shares.
(l)
Impairment of Assets
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to
determine whether there is any indication that those assets have been impaired. If such an indication
exists, the recoverable amount of the asset, being the higher of the asset‘s fair value less costs to sell and
value in use, is compared to the asset‘s carrying value. Any excess of the asset‘s carrying value over its
recoverable amount is expensed to the statement of comprehensive income.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
(m)
Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past
events, for which it is probable that an outflow of economic benefits will results and that outflow can be
reliably measured.
(n)
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of assets that
necessarily take a substantial period of time to prepare for their intended use or sale, are added to the
cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in income in the period in which they are incurred.
(o)
Equity-settled compensation
The Company operates an Incentive Option Scheme share-based compensation plan. The bonus
element over the exercise price of the employee services rendered in exchange for the grant of shares
and options is recognised as an expense in the statement of comprehensive income. The total amount to
be expensed over the vesting period is determined by reference to the fair value of the shares of the
options granted.
(p)
Comparative Figures
Where required by Accounting Standards comparative figures have been adjusted to conform with
changes in presentation for the current financial year.
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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(q) Foreign Currency Transactions and Balances
Functional and presentation currency
The functional currency of each of the Group‘s entities is measured using the currency of the primary
economic environment in which that entity operates. The consolidated financial statements are presented
in Australian dollars which is the parent entity‘s functional and presentation currency.
Transaction and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing
at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange
rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the
date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at
the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the statement of
comprehensive income except where deferred in equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in equity to
the extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is
recognised in the statement of comprehensive income.
Group companies
The financial results and position of foreign operations whose functional currency is different from the
Group‘s presentation currency are translated as follows:
assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
income and expenses are translated at average exchange rates for the period; and
retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to the Group‘s
foreign currency translation reserve in the statement of financial position. These differences are
recognised in the statement of comprehensive income in the period in which the operation is disposed.
(r)
Critical Accounting Estimates and Judgments
The Directors evaluate estimates and judgments incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future
events and are based on current trends and economic data, obtained both externally and within the
Company.
Key Judgments – Exploration and evaluation expenditure
Exploration and evaluation costs are carried forward where right of tenure of the area of interest is current.
These costs are carried forward in respect of an area that has not at balance sheet date reached a stage
that permits reasonable assessment of the existence of economically recoverable reserves, refer to the
accounting policy stated in note 1(b). The carrying value of capitalised expenditure at reporting date is
$6,689,736.
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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Key Judgments – Environmental Issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or
enacted environmental legislation, and the directors understanding thereof. At the current stage of the
company‘s development and its current environmental impact, the directors believe such treatment in
reasonable and appropriate.
Key Estimate – Taxation
Balances disclosed in the financial statements and the notes thereto, related to taxation, are based on the
best estimates of directors. These estimates take into account both the financial performance and position
of the company as they pertain to current income taxation legislation, and the directors understanding
thereof. No adjustment has been made for pending or future taxation legislation. The current income tax
position represents that directors‘ best estimate, pending an assessment by the Australian Taxation Office.
Key Estimate — Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that
may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset
is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a
number of key estimates.
(s)
Adoption of New and Revised Accounting Standards
During the current year the Group adopted all of the new and revised Australian Accounting Standards
and Interpretations applicable to its operations which became mandatory.
The adoption of these standards has impacted the recognition, measurement and disclosure of certain
transactions. he following is an explanation of the impact the adoption of these standards and
interpretations has had on the financial statements of Aura Energy Limited.
AASB 3: Business Combinations
In March 2008 the Australian Accounting Standards Board revised AASB 3 and as a result, some aspects
of business combination accounting have changed. The changes apply only to business combinations
which occur from 1 July 2009.
Disclosure impact
The revised AASB 3 contains a number of additional disclosure requirements not required by the previous
version of AASB 3. The revised disclosures are designed to ensure that users of the Group‘s financial
statements are able to understand the nature and financial impact of any business combinations on the
financial statements.
AASB 8: Operating Segments
In February 2007 the Australian Accounting Standards Board issued AASB 8 which replaced AASB 114:
Segment Reporting. As a result, some of the required operating segment disclosures have changed with
the addition of a possible impact on the impairment testing of goodwill allocated to the cash generating
units (CGUs) of the entity. Below is an overview of the key changes and the impact on the Group‘s
financial statements.
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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Measurement impact
Identification and measurement of segments — AASB 8 requires the ‗management approach‘ to the
identification measurement and disclosure of operating segments. The ‗management approach‘ requires
that operating segments be identified on the basis of internal reports that are regularly reviewed by the
entity‘s chief operating decision maker, for the purpose of allocating resources and assessing
performance. This could also include the identification of operating segments which sell primarily or
exclusively to other internal operating segments. Under AASB 114, segments were identified by business
and geographical areas, and only segments deriving revenue from external sources were considered.
The adoption of the ‗management approach‘ to segment reporting has resulted in the identification of
reportable segments largely consistent with the prior year.
Under AASB 8, operating segments are determined based on management reports using the
‗management approach‘, whereas under AASB 114 financial results of such segments were recognised
and measured in accordance with Australian Accounting Standards. This has resulted in changes to the
presentation of segment results, with inter-segment sales and expenses such as depreciation and
impairment now being reported for each segment rather than in aggregate for total group operations, as
this is how they are reviewed by the chief operating decision maker.
Impairment testing of the segment’s goodwill
AASB 136: Impairment of Assets, para 80 requires that goodwill acquired in a business combination shall
be allocated to each of the acquirer‘s CGUs, or group of CGUs that are expected to benefit from the
synergies of the combination. Each cash generating unit (CGU) which the goodwill is allocated to must
represent the lowest level within the entity at which goodwill is monitored, however it cannot be larger than
an operating segment. Therefore, due to the changes in the identification of segments, there is a risk that
goodwill previously allocated to a CGU which was part of a larger segment could now be allocated across
multiple segments if a segment had to be split as a result of changes to AASB 8.
Management have considered the requirements of AASB 136 and determined the implementation of
AASB 8 has not impacted the CGUs of each operating segment.
Disclosure impact
AASB 8 requires a number of additional quantitative and qualitative disclosures, not previously required
under AASB 114, where such information is utilised by the chief operating decision maker. This
information is now disclosed as part of the financial statements.
AASB 101: Presentation of Financial Statements
In September 2007 the Australian Accounting Standards Board revised AASB 101 and as a result, there
have been changes to the presentation and disclosure of certain information within the financial
statements. Below is an overview of the key changes and the impact on the Group‘s financial statements.
Disclosure impact
Terminology changes — the revised version of AASB 101 contains a number of terminology changes,
including the amendment of the names of the primary financial statements.
Reporting changes in equity — the revised AASB 101 requires all changes in equity arising from
transactions with owners, in their capacity as owners, to be presented separately from non-owner changes
in equity. Owner changes in equity are to be presented in the statement of changes in equity, with non-
owner changes in equity presented in the statement of comprehensive income. The previous version of
AASB 101 required that owner changes in equity and other comprehensive income be presented in the
statement of changes in equity.
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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Statement of comprehensive income — the revised AASB 101 requires all income and expenses to be
presented in either one statement, the statement of comprehensive income, or two statements, a separate
income statement and a statement of comprehensive income. The previous version of AASB 101
required only the presentation of a single income statement.
The Group‘s financial statements now contain a statement of comprehensive income.
Other comprehensive income — The revised version of AASB 101 introduces the concept of ‗other
comprehensive income‘ which comprises of income and expenses that are not recognised in profit or loss
as required by other Australian Accounting Standards. Items of other comprehensive income are to be
disclosed in the statement of comprehensive income. Entities are required to disclose the income tax
relating to each component of other comprehensive income. The previous version of AASB 101 did not
contain an equivalent concept.
(t)
New Accounting Standards for Application in Future Periods
The AASB has issued new and amended accounting standards and interpretations that have mandatory
application dates for future reporting periods. The Group has decided against early adoption of these
standards. A discussion of those future requirements and their impact on the Group follows:
●
AASB 9: Financial Instruments and AASB 2009–11: Amendments to Australian Accounting
Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131,
132, 136, 139, 1023 & 1038 and Interpretations 10 & 12] (applicable for annual reporting periods
commencing on or after 1 January 2013).
These standards are applicable retrospectively and amend the classification and measurement of
financial assets. The Group has not yet determined the potential impact on the financial statements.
The changes made to accounting requirements include:
-
-
-
-
-
-
simplifying the classifications of financial assets into those carried at amortised cost and those
carried at fair value;
simplifying the requirements for embedded derivatives;
removing the tainting rules associated with held-to-maturity assets;
removing the requirements to separate and fair value embedded derivatives for financial assets
carried at amortised cost;
- allowing an irrevocable election on initial recognition to present gains and losses on
investments in equity instruments that are not held for trading in other comprehensive income.
Dividends in respect of these investments that are a return on investment can be recognised in
profit or loss and there is no impairment or recycling on disposal of the instrument; and
reclassifying financial assets where there is a change in an entity's business model as they are
initially classified based on:
a.
b.
the objective of the entity's business model for managing the financial assets; and
the characteristics of the contractual cash flows.
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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
●
AASB 124: Related Party Disclosures (applicable for annual reporting periods commencing on or
after 1 January 2011).
This standard removes the requirement for government related entities to disclose details of all
transactions with the government and other government related entities and clarifies the definition of
a related party to remove inconsistencies and simplify the structure of the standard. No changes are
expected to materially affect the Group.
●
AASB 2009–4: Amendments to Australian Accounting Standards arising from the Annual
Improvements Project [AASB 2 and AASB 138 and AASB Interpretations 9 & 16] (applicable for
annual reporting periods commencing from 1 July 2009) and AASB 2009-5: Further Amendments to
Australian Accounting Standards arising from the Annual Improvements Project [AASB 5, 8, 101,
107, 117, 118, 136 & 139] (applicable for annual reporting periods commencing from 1 January
2010).
These standards detail numerous non-urgent but necessary changes to accounting standards
arising from the IASB‘s annual improvements project. No changes are expected to materially affect
the Group.
●
AASB 2009–8: Amendments to Australian Accounting Standards — Group Cash-settled Share-
based Payment Transactions [AASB 2] (applicable for annual reporting periods commencing on or
after 1 January 2010).
These amendments clarify the accounting for Group cash-settled share-based payment transactions
in the separate or individual financial statements of the entity receiving the goods or services when
the entity has no obligation to settle the share-based payment transaction. The amendments
incorporate the requirements previously included in Interpretation 8 and Interpretation 11 and as a
consequence, these two Interpretations are superseded by the amendments. These amendments
are not expected to impact the Group.
●
AASB 2009–9: Amendments to Australian Accounting Standards — Additional Exemptions for First-
time Adopters [AASB 1] (applicable for annual reporting periods commencing on or after 1 January
2010).
These amendments specify requirements for entities using the full cost method in place of the
retrospective application of Australian Accounting Standards for oil and gas assets, and exempt
entities with existing leasing contracts from reassessing the classification of those contracts in
accordance with Interpretation 4 when the application of their previous accounting policies would
have given the same outcome. These amendments are not expected to impact the Group.
●
AASB 2009–10: Amendments to Australian Accounting Standards — Classification of Rights Issues
[AASB 132] (applicable for annual reporting periods commencing on or after 1 February 2010).
These amendments clarify that rights, options or warrants to acquire a fixed number of an entity's
own equity instruments for a fixed amount in any currency are equity instruments if the entity offers
the rights, options or warrants pro-rata to all existing owners of the same class of its own non-
derivative equity instruments. These amendments are not expected to impact the Group.
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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
●
AASB 2009–12: Amendments to Australian Accounting Standards [AASBs 5, 8, 108, 110, 112, 119,
133, 137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052] (applicable for annual
reporting periods commencing on or after 1 January 2011).
This standard makes a number of editorial amendments to a range of Australian Accounting
Standards and Interpretations, including amendments to reflect changes made to the text of
International Financial Reporting Standards by the IASB. The standard also amends AASB 8 to
require entities to exercise judgment in assessing whether a government and entities known to be
under the control of that government are considered a single customer for the purposes of certain
operating segment disclosures. These amendments are not expected to impact the Group.
●
AASB 2009–13: Amendments to Australian Accounting Standards arising from Interpretation 19
[AASB 1] (applicable for annual reporting periods commencing on or after 1 July 2010).
This standard makes amendments to AASB 1 arising from the issue of Interpretation 19. The
amendments allow a first-time adopter to apply the transitional provisions in Interpretation 19. This
standard is not expected to impact the Group.
●
AASB 2009–14: Amendments to Australian Interpretation — Prepayments of a Minimum Funding
Requirement [AASB Interpretation 14] (applicable for annual reporting periods commencing on or
after 1 January 2011).
This standard amends Interpretation 14 to address unintended consequences that can arise from the
previous accounting requirements when an entity prepays future contributions into a defined benefit
pension plan.
●
AASB Interpretation 19: Extinguishing Financial Liabilities with Equity Instruments (applicable for
annual reporting periods commencing on or after 1 July 2010).
This Interpretation deals with how a debtor would account for the extinguishment of a liability through
the issue of equity instruments. The Interpretation states that the issue of equity should be treated as
the consideration paid to extinguish the liability, and the equity instruments issued should be
recognised at their fair value unless fair value cannot be measured reliably in which case they shall
be measured at the fair value of the liability extinguished. The Interpretation deals with situations
where either partial or full settlement of the liability has occurred. This Interpretation is not expected
to impact the Group.
The Group does not anticipate the early adoption of any of the above Australian Accounting Standards.
The financial report was authorised for issue on 30 September 2010 by the board of directors.
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CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 2: REVENUE AND OTHER INCOME
Note
2010
$
2009
$
Revenue:
Interest received
Management fees
Total Revenue
Other Income
Equipment charge-backs
Proceeds from sale of exploration assets
Total Other Income
NOTE 3: LOSS BEFORE INCOME TAX
(a) Expenses
Depreciation of non-current assets:
Plant and equipment
Computer equipment
Office equipment
Motor vehicles
Total depreciation
(b) Significant Revenues and Expenses
The following significant revenue and (expense) items are relevant in
explaining the financial performance:
Write-off capitalised expenditure
Share-based payments (expense)/recoupment
Superannuation expense
90,828
191,192
51,202
76,940
282,020
128,142
48,306
-
48,306
3,995
12,000
15,995
2010
$
2009
$
23,424
23,825
7,607
9,181
15,755
10(a)
55,967
6,521
8,848
15,756
54,950
(452,156)
(1,116,409)
(293,777)
23,940
(31,936)
(33,482)
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AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 4: INCOME TAX
(a)
Income tax expense
Current tax
Deferred tax
Deferred income tax expense included in income tax expense
comprises:
-
-
(Increase) in deferred tax assets
Increase in deferred tax liabilities
Note
2010
$
2009
$
-
-
-
-
-
-
4(c)
4(d)
(498,281)
(640,642)
498,281
640,642
-
-
(b) Reconciliation of income tax expense to prima facie tax
payable
The prima facie tax payable on profit from ordinary activities before
income tax is reconciled to the income tax expense as follows:
Prima facie tax on operating profit at 30% (2009: 30%)
(503,910)
(587,852)
Add / (Less)
Tax effect of:
- Share-based payments
- Exploration expenditure
- Other adjustments
88,133
82,205
51,364
-
-
-
- Deferred tax asset not brought to account
282,208
587,852
Income tax attributable to operating loss
-
-
The applicable weighted average effective tax rates are as follows:
Balance of franking account at year end
nil%
nil
nil%
nil
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 4: INCOME TAX (cont.)
(c) Deferred tax assets
Tax Losses
Provisions and Accrual
Other
Set-off deferred tax liabilities
Net deferred tax assets
(d) Deferred tax liabilities
Exploration expenditure
Set-off deferred tax assets
Net deferred tax liabilities
(e) Tax losses
Note
2010
$
2009
$
416,120
569,544
5,321
6,240
76,840
64,858
498,281
640,642
4(d)
(498,281)
(640,642)
-
-
498,281
640,642
498,281
640,642
4(c)
(498,281)
(640,642)
-
-
Unused tax losses for which no deferred tax asset has been
recognised
3,602,069
981,554
Potential deferred tax assets attributable to tax losses and exploration
expenditure carried forward have not been brought to account at 30 June
2010 because the directors do not believe it is appropriate to regard
realisation of the deferred tax assets as probable at this point in time. These
benefits will only be obtained if:
i.
the company derives future assessable income of a nature and of an
amount sufficient to enable the benefit from the deductions for the loss
and exploration expenditure to be realised;
ii.
the company continues to comply with conditions for deductibility
imposed by law; and
iii. no changes in tax legislation adversely affect the company in realising
the benefit from the deductions for the loss and exploration expenditure.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 5: KEY MANAGEMENT PERSONNEL COMPENSATION
(a) Key management personnel (KMP) compensation
Refer to the Remuneration Report contained in the Director‘s Report for details of the remuneration paid to each
member of the Group‘s KMP for the year ended 30 June 2010.
The totals of remuneration paid to KMP during the year are as follows:
Short-term employee benefits
Post-employment benefits
Share based payments
Total
2010
$
365,000
61,719
251,737
678,456
2009
$
267,300
59,900
-
327,200
(b) Equity instrument disclosures relating to KMP
(i) Option holdings
The number of options over ordinary shares held by each KMP of the Group during the financial year is as follows:
2010
Balance at the
beginning of
year
Granted as
remuneration
during the year
Exercised
during
the year
Other changes
during the year
Balance at
end of year
Vested and
unexercisable
Directors of Aura Energy Limited
Brett Fraser
750,000
1,000,000
Robert Beeson
3,000,000
1,500,000
Jay Stephenson
750,000
1,000,000
Simon O‘Loughlin
500,000
1,000,000
5,000,000
4,500,000
-
-
-
-
-
(750,000)
1,000,000
(1,500,000)
3,000,000
(750,000)
1,000,000
(500,000)
1,000,000
(3,500,000)
6,000,000
1,000,000
3,000,000
1,000,000
1,000,000
6,000,000
2009
Balance at the
beginning of
year
Granted as
remuneration
during the year
Exercised
during
the year
Other changes
during the year
Balance at
end of year
Vested and
exercisable
Directors of Aura Energy Limited
Brett Fraser
750,000
Robert Beeson
3,000,000
Jay Stephenson
Simon O‘Loughlin
750,000
500,000
5,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
750,000
750,000
3,000,000
3,000,000
750,000
500,000
750,000
500,000
5,000,000
5,000,000
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
(iii) Shareholdings
The number of ordinary shares in Aura Energy Limited held by each KMP of the Group during the financial year is as
follows:
Balance at the start
of the year
Received during
the year as
compensation
Received during
the year on the
exercise of options
Other changes
during the year
Balance at the end
of the year
30 June 2010
Directors
Ordinary Shares
Brett Fraser
Robert Beeson
Jay Stephenson
Simon O‘Loughlin
1,326,000
1,165,000
1,146,000
768,112
Total
4,405,112
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,326,000
1,165,000
1,146,000
768,112
4,405,112
Balance at the start
of the year
Received during
the year as
compensation
Received during
the year on the
exercise of options
Other changes
during the year
Balance at the end
of the year
30 June 2009
Directors
Ordinary Shares
Brett Fraser
Robert Beeson
Jay Stephenson
Simon O‘Loughlin
1,151,000
1,050,000
1,041,500
668,112
Total
3,910,612
-
-
-
-
-
-
-
10,000
-
10,000
175,000
115,000
94,500
100,000
484,500
1,326,000
1,165,000
1,146,000
768,112
4,405,112
Other changes during the year relate to shares purchased on market.
(c) Loans to key management personnel
There are no loans made to directors of Aura Energy as at 30 June 2010.
(d) Other transactions with key management personnel
There have been no other transactions involving equity instruments other than those described in the tables above.
For details of other transactions with key management personnel, refer Note 19: Related party transactions.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 6: AUDITOR’S REMUNERATION
Remuneration of the auditor of the Group for:
- Auditing or reviewing the financial reports
NOTE 7: EARNINGS PER SHARE
(a) Reconciliation of earnings to net profit or loss
Note
2010
2009
$
$
24,080
28,450
2010
2010
$
$
Loss used in the calculation of basic EPS
(1,679,699)
(1,959,505)
(b) Weighted average number of ordinary shares outstanding during
the year used in calculation of basic EPS
Basic earnings per share (cents per share)
NOTE 8: CASH AND CASH EQUIVALENTS
Cash at bank
Reconciliation of Cash
Cash at the end of the financial year as shown in the consolidated
statement of cash flows is reconciled to items in the consolidated
statement of financial position as follows:
78,014,508
43,976,422
(2.15)
(4.46)
2010
2009
$
$
1,221,825
1,225,387
Cash and cash equivalents
1,221,825
1,225,387
The effective interest rate on short term bank deposits was 4.8% (2009: 5.0%). These deposits have an average
maturity of 7 months (2009: 10 months).
NOTE 9: TRADE AND OTHER RECEIVABLES
CURRENT
Amount receivable from related parties
GST and MOMS receivable
Trade debtors and prepayments
2010
2010
$
$
7,640
14,161
39,444
221,953
42,648
53,723
89,732
289,837
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 10: PLANT AND EQUIPMENT
Note
2010
$
2009
$
NON-CURRENT
Plant and equipment
Accumulated depreciation
Computer equipment
Accumulated depreciation
Office equipment
Accumulated depreciation
Motor vehicles
Accumulated depreciation
77,490
75,579
(65,071)
(41,646)
12,419
33,933
39,712
19,564
(20,423)
(12,817)
19,289
6,747
35,324
33,984
(28,147)
(18,966)
7,177
15,018
62,948
62,948
(48,506)
(32,751)
14,442
30,197
53,327
85,895
a. Movements in Carrying Amounts
Movement in the carrying amounts plant and equipment between the
beginning and the end of the current financial year
Balance at the beginning of year
85,895
136,122
Plant and equipment
Additions
Depreciation expense
Computer equipment
Additions
Depreciation expense
Office equipment
Additions
Depreciation expense
Motor vehicles
Depreciation expense
Totals
Additions
Disposals
Depreciation expense
Carrying amount at the end of year
1,911
4,723
(23,425)
(23,825)
20,148
-
(7,606)
(6,521)
1,340
-
(9,181)
(8,848)
(15,755)
(15,756)
23,399
4,723
-
-
3(a)
(55,967)
(54,950)
53,327
85,895
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AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 11: OTHER ASSETS
NON-CURRENT
Exploration expenditure capitalised
- Exploration and evaluation phases at cost
Other
Net carrying value
Note
2010
$
2009
$
6,689,736
3,957,935
7,627
8,093
6,697,363
3,966,028
The value of the Group interest in exploration expenditure is dependent upon:
the continuance of the Group‘s rights to tenure of the areas of interest;
the results of future exploration; and
the recoupment of costs through successful development and exploitation of the areas of interest,
or alternatively, by their sale.
The Group‘s exploration properties may be subjected to claim(s) under Native Title, or contain sacred
sites, or sites of significance to Aboriginal people. As a result, exploration properties or areas within the
tenements may be subject to exploration restrictions, mining restrictions and/or claims for compensation.
At this time, it is not possible to quantify whether such claims exist, or the quantum of such claims.
NOTE 12: TRADE AND OTHER PAYABLES
CURRENT – unsecured liabilities
Trade payables
Accrued Expenses
GST payable
Trade payables are non-interest bearing and usually settled within 45 days.
2010
$
2009
$
109,032
163,168
42,400
56,379
20,800
1,013
207,811
184,981
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 13: SHORT TERM PROVISIONS
CURRENT
Employee benefits
Number of employees at year end
Employee Benefits
Opening Balance at 1 July 2009
Additional Provisions
Amounts Used
Balance at 30 June 2010
NOTE 14: ISSUED CAPITAL
Note
2010
$
2009
$
16,894
1,404
6
5
1,404
17,001
12,763
10,153
(1,511)
(21,512)
16,894
1,404
2010
$
2009
$
83,232,659 fully paid ordinary shares
14(a)
12,681,865
8,856,865
12,681,865
8,856,865
The Company has issued share capital amounting to 83,232,659 (2009: 54,482,659) ordinary shares at no
par value.
(a) Ordinary shares
At the beginning of the reporting period
Shares issued during the year:
5,000,000 Shares issued on 7 July 2009
5,000,000 Shares issued on 10 July 2009
9,670,000 Shares issued on 10 September 2009
5,955,000 Shares issued on 30 October 2009
3,125,000 Shares issued on 4 November 2009
88,750 Options exercised on 23 January 2009
4,454,000 Shares issued on 22 May 2009
7,106,434 Shares issued on 29 May 2009
Transaction costs relating to share issues
At reporting date
8,856,865
7,740,456
500,000
500,000
1,547,200
952,800
500,000
-
-
-
-
-
-
-
-
18,638
445,400
710,643
(175,000)
(58,272)
12,681,865
8,856,865
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 14: ISSUED CAPITAL (cont.)
At the beginning of the reporting period
Shares issued during the year:
5,000,000 Shares issued on 7 July 2009
5,000,000 Shares issued on 10 July 2009
9,670,000 Shares issued on 10 September 2009
5,955,000 Shares issued on 30 October 2009
3,125,000 Shares issued on 4 November 2009
88,750 Options exercised on 23 January 2009
4,454,000 Shares issued on 22 May 2009
7,106,434 Shares issued on 29 May 2009
Note
2010
No.
2009
No.
54,482,659
42,833,475
5,000,000
5,000,000
9,670,000
5,955,000
3,125,000
-
-
-
-
-
-
-
-
88,750
4,454,000
7,106,434
At reporting date
83,232,659
54,482,659
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the
number of shares held. At shareholders meetings each ordinary share is entitled to one vote when a poll is
called, otherwise each shareholder has a vote on a show of hands.
(b) Incentive Option Scheme
For information relating to the Aura Energy Limited Incentive Option Scheme, including details of options
issued during the financial year, refer to Note 17.
(c) Capital Management
The Directors‘ objectives when managing capital are to ensure that the Group can fund its operations and
continue as a going concern, so that they may continue to provide returns for shareholders and benefits for
other stakeholders.
Due to the nature of the Group‘s activities, being mineral exploration, the Group does not have ready access
to credit facilities, with the primary source of funding being equity raisings. Therefore, the focus of the
Group‘s capital risk management is the current working capital position against the requirements of the
Group to meet exploration programmes and corporate overheads. The Group‘s strategy is to ensure
appropriate liquidity is maintained to meet anticipated operating requirements, with a view to initiating
appropriate capital raisings as required.
The working capital position of the Group at 30 June 2010 and 30 June 2009 were as follows:
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Working capital position
2010
$
2009
$
1,221,825
1,225,387
89,732
289,837
(207,811)
(184,981)
1,103,746
1,330,243
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AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 15: RESERVES
Option reserve
Foreign exchange reserve
Option reserve
Note
2010
$
2009
$
859,129
762,752
933
(16,769)
860,062
745,983
The option reserve records items recognised as expenses on valuations of employee and consultant share
options.
Foreign Exchange Reserve
The foreign exchange reserve records exchange differences arising on translation of a foreign controlled
subsidiary.
2010
$
2009
$
(1,679,699)
(1,959,505)
293,777
(23,940)
55,967
54,950
452,156
1,116,409
(3,183,956)
(1,094,852)
408,938
(167,442)
(186,004)
(69,097)
15,490
(11,359)
(3,823,331)
(2,154,836)
NOTE 16: CASH FLOW INFORMATION
(a)
Loss after income tax
Cash flows excluded from profit attributable to operating activities
Non-cash flows in profit from ordinary activities
Employee share-based payments expense
Depreciation
Write-off capitalised expenditure
Changes in assets and liabilities, net of the effects of purchase and
disposal of subsidiaries
Increase in exploration expenditure capitalised
Decrease/(increase) in receivables and prepayments
Decrease in payables
Increase/(decrease) in provisions
Cash flow from operations
Credit Standby Facilities
The Group has no credit standby facilities.
Non-Cash investing and financing activities
The Group has no non-cash investing and financing activities.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 17: SHARE-BASED PAYMENTS
The following share-based payment arrangements existed at 30 June 2010:
On 1 February 2007, 550,000 share options were granted to employees and consultants under the Aura Energy
Limited Incentive Option Plan to take up ordinary shares at an exercise price of $0.25 each. The options are
exercisable on or before 1 February 2012. The options hold no voting or dividend rights and are not transferable.
Since balance date, no director has ceased their employment. At balance date, no share option has been
exercised.
On 24 April 2008, 1,500,000 share options were granted to Dr Bob Beeson to take up ordinary shares at an
exercise price of $0.55 each. The options are exercisable on or before 30 June 2011. The options hold no voting or
dividend rights, and are not transferable. At balance date, no share option has been exercised.
On 24 April 2008, 600,000 share options were granted to employees and consultants under the Aura Energy
Limited Incentive Option Plan to take up ordinary shares at an exercise price of $0.60 each. The options are
exercisable on or before 24 April 2013. The options hold no voting or dividend rights and are not transferable.
During the year ended 30 June 2009, one employee ceased employment and 200,000 options expired. Since that
date, no other holder has ceased their employment. At balance date, no share option has been exercised, and
400,000 options remain.
On 24 April 2008, 300,000 share options were granted to employees and consultants under the Aura Energy
Limited Incentive Option Plan to take up ordinary shares at an exercise price of $0.50 each. The options are
exercisable on or before 30 June 2011. The options hold no voting or dividend rights and are not transferable.
During the year ended 30 June 2009, one employee ceased employment and 200,000 options expired. Since that
date, no other holder has ceased their employment. At balance date, no share option has been exercised, and
100,000 options remain.
On 30 November 2009, 4,500,000 share options were granted to the Directors to take up ordinary shares at an
exercise price of $0.23 each. The options are exercisable on or before 1 September 2011. The options hold no
voting or dividend rights, and are not transferable. At balance date, no share option has been exercised.
On 23 December 2009, 400,000 share options were granted to employees and consultants under the Aura Energy
Limited Incentive Option Plan to take up ordinary shares at an exercise price of $0.30 each. The options are
exercisable on or before 23 December 2014. The options hold no voting or dividend rights and are not transferable.
At balance date, no share option has been exercised or forfeited and 400,000 options remain.
All options granted to key management personnel are ordinary shares in Aura Energy Limited, which confer a right
to one ordinary share for every option held.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
A summary of the movements of all company options issued is as follows:
2010
2009
Number of
Options
Weighted
Average
Exercise
Price
Number of
Options
Weighted
Average
Exercise
Price
Outstanding at the beginning of the year
6,050,000
$0.1035
6,400,000
$0.3640
Granted
Issued 2007
Forfeited
Expired
Outstanding at year-end
Exercisable at year-end
4,900,000
$0.2943
-
-
-
-
-
50,000
(400,000)
(3,500,000)
$0.2500
-
7,450,000
7,450,000
$0.1212
6,050,000
$0.1212
6,050,000
$0.2500
$0.5500
$0.1035
$0.1035
The weighted average remaining contractual life of options outstanding at year end was 1.43 years. The exercise
price of outstanding shares at the end of the reporting period was $0.3617.
The fair value of the options granted to employees is deemed to represent the value of the employee services
received over the vesting period.
The weighted average fair value of options granted during the year was $0.0967 (2009: $ nil). These values were
calculated using the Black-Scholes option pricing model applying the following inputs:
Weighted average exercise price:
Weighted average life of the option:
Expected share price volatility:
Risk-free interest rate:
$0.3617
1.43 year
129.03%
5%
Historical volatility has been the basis for determining expected share price volatility as it is assumed that this is
indicative of future movements.
The life of the options is based on the historical exercise patterns, which may not eventuate in the future.
NOTE 18: EVENTS SUBSEQUENT TO REPORTING DATE
After balance date events include the following:
d) On 21 July 2010, the Company announced its initial inferred resource of 291 million lbs of U3O8 at its
Haggan Project in Sweden;
e) On 16 September 2010, the Company announced a placement of 12,484,898 Shares at an issue price
of $0.15 per Share to raise $1,872,735; and
f) On 16 September 2010, the Company also announced a fully underwritten 1 for 5 Rights Issue to
Shareholders at an issue price of $0.15 to raise a further $2,871,527.
There has been no other after balance date events.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 19: RELATED PARTY TRANSACTIONS
Transactions between related parties are on normal commercial terms and
conditions no more favourable than those available to other parties unless
otherwise stated.
Transactions with Key Management Personnel:
Jay Stephenson
2010
$
2009
$
Aura Energy Limited rents office space from Jay Stephenson
10,800
10,800
Wolfstar Group Pty Ltd
Mr Fraser and Mr Stephenson, non-executive Directors of Aura Energy
Limited, are Directors and Joint Shareholders of Wolfstar Group Pty Ltd. Mr
Stephenson provides Company Secretarial and Chief Financial Officer
duties to Aura Energy Limited, as well as providing corporate advisory
advice during the listing process.
90,000
76,500
NOTE 20: CAPITAL COMMITMENTS
Capital expenditure commitments:
Capital expenditure commitments contracted for:
Exploration tenement minimum expenditure requirements
6,894,000
7,312,000
Payable:
- not later than 12 months
- between 12 months and 5 years
- greater than 5 years
1,386,000
1,301,000
1,270,000
6,011,000
4,238,000
-
6,894,000
7,312,000
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 21: OPERATING SEGMENTS
Segment Information
Identification of reportable segments
The Group operates predominantly in the mining industry. This comprises exploration and evaluation of uranium,
gold, silver and base metals projects. Inter-segment transactions are priced at cost to the Consolidated Group.
The Group has identified its operating segments based on the internal reports that are provided to the Board of
Directors on a monthly basis. Management has identified the operating segments based on the three principal
locations of its projects – Australia, Sweden and West Africa.
Corporate expenses include administration and regulatory expenses arising from operating an ASX listed entity.
Segment assets include the costs to acquire tenements and the capitalised exploration costs of those tenements
Financial assets including cash and cash equivalents, and investments in financial assets, are reported in the
Treasury segment.
For the Year to 30 June 2010
$
$
$
$
$
Australian
Exploration
Sweden
Exploration
African
Exploration
Treasury
Total
Segment Revenue
Segment Results
330,326
330,326
-
-
-
-
-
-
330,326
330,326
Amounts not included in segment results but
reviewed by Board:
- Corporate charges
- Exploration impairment
- Depreciation
- Share-based payment expenses
Loss before Income Tax
As at 30 June 2010
Segment Assets
Segment asset increases for the period:
- capital expenditure
Unallocated Assets:
Trade and other receivables
Plant and equipment
Other non-current assets
Total Assets
Segment Liabilities
Unallocated Liabilities:
Trade and other payables
Total Liabilities
(1,208,125)
(452,156)
(55,967)
(293,777)
(1,679,699)
1,628,543
3,222,267
1,838,926
1,221,825
7,911,561
-
1,205,005
1,609,798
-
2,814,803
89,732
53,327
7,627
8,062,247
31,657
78,473
(9,904)
-
100,226
124,479
224,705
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AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 21: OPERATING SEGMENTS (CONT.)
For the Year to 30 June 2009
$
$
$
$
$
Australian
Exploration
Sweden
Exploration
African
Exploration
Treasury
Total
Segment Revenue
143,556
582
Segment Results
143,556
582
-
-
-
-
144,138
144,138
Amounts not included in segment results
but reviewed by Board:
- Corporate charges
- Exploration Impairment
- Depreciation
- Share-based payment recoupment
Loss before Income Tax
As at 30 June 2009
Segment Assets
Segment asset increases for the period:
- capital expenditure
Unallocated Assets:
Trade and other receivables
Plant and equipment
Other non-current assets
Total Assets
Segment Liabilities
Unallocated Liabilities:
Trade and other payables
Total Liabilities
(956,224)
(1,116,409)
(54,950)
23,940
(1,959,505)
1,711,546
2,017,262
229,127 1,225,387
5,183,322
90,363
1,107,970
38,075
-
1,236,408
289,837
85,895
8,093
5,567,147
36,656
3,312
3,748
-
43,716
142,669
186,385
53 of 67
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 21: OPERATING SEGMENTS (CONT.)
Basis of accounting for purposes of reporting by operating segments
a. Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors, being the chief decision maker with
respect to operating segments, are determined in accordance with accounting policies that are consistent to
those adopted in the annual financial statements of the Group.
b.
Inter-segment transactions
An internally determined transfer price is set for all inter-segment sales. This price is reset quarterly and is
based on what would be realised in the event the sale was made to an external party at arm‘s length. All
such transactions are eliminated on consolidation of the Group‘s financial statements.
Corporate charges are allocated to reporting segments based on the segments‘ overall proportion of
revenue generation within the Group. The Board of Directors believes this is representative of likely
consumption of head office expenditure that should be used in assessing segment performance and cost
recoveries.
Inter-segment loans payable and receivable are initially recognised at the consideration received/to be
received net of transaction costs. If inter-segment loans receivable and payable are not on commercial
terms, these are not adjusted to fair value based on market interest rates. This policy represents a departure
from that applied to the statutory financial statements.
c. Segment assets
Where an asset is used across multiple segments, the asset is allocated to that segment that receives
majority economic value from that asset. In the majority of instances, segment assets are clearly identifiable
on the basis of their nature and physical location.
d. Segment liabilities
Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and
the operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Group
as a whole and are not allocated. Segment liabilities include trade and other payables and certain direct
borrowings.
e. Unallocated items
The following items of revenue, expenses, assets and liabilities are not allocated to operating segments as
they are not considered part of the core operations of any segment:
—
—
—
—
—
Impairment of assets and other non-recurring items of revenue or expense
Income tax expense
Deferred tax assets and liabilities
Current tax liabilities
Other financial liabilities
f. Comparative information
This is the first reporting period in which AASB 8 has been adopted. Comparative information has been
restated to conform to the requirements of this standard.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 22 – FINANCIAL INSTRUMENTS
(a)
Financial Risk Management Policies
The Group‘s financial instruments consist mainly of deposits with banks, short-term investments,
accounts payable, loans to and from subsidiaries, and bills and leases.
The main purpose of non-derivative financial instruments is to raise finance for Group operations.
The Group does not speculate in the trading of derivative instruments.
A summary of the Group‘s Financial Assets and Liabilities is shown below:
Floating
Interest
Rate
Non-
interest
bearing
2010
Total
Floating
Interest
Rate
Non-
interest
bearing
2009
Total
$
$
$
$
$
$
1,221,825
-
1,221,825
1,225,387
-
1,225,387
-
89,732
89,732
-
289,837
289,837
Financial assets
Cash and cash
equivalents
Trade and other
receivables
Total Financial assets
1,221,825
89,732
1,311,557
1,225,387
289,837
1,515,224
Financial Liabilities
Financial liabilities at
amortised cost –
Trade and other
Payables
Total Financial
liabilities
-
-
207,811
207,811
207,811
207,811
-
-
186,385
186,385
186,385
186,385
Net Financial Assets
1,221,825
(118,079)
1,103,746
1,225,387
103,452
1,328,839
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 22 – FINANCIAL INSTRUMENTS (CONT.)
Specific Financial Risk Exposures and Management
The main risk the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk
consisting of interest rate, foreign currency risk and equity price risk.
a. Credit risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties
of contract obligations that could lead to a financial loss to the Group.
The Group does not have any material credit risk exposure to any single receivable or group of receivables
under financial instruments entered into by the Group.
Credit risk exposures
The maximum exposure to credit risk is that to its alliance partners and that is limited to the carrying amount,
net of any provisions for impairment of those assets, as disclosed in the statement of financial position and
notes to the financial statements.
Credit risk related to balances with banks and other financial institutions is managed by the Group in
accordance with approved Board policy. Such policy requires that surplus funds are only invested with
counterparties with a Standard and Poor‘s rating of at least AA-. The following table provides information
regarding the credit risk relating to cash and money market securities based on Standard and Poor‘s
counterparty credit ratings.
Cash and cash
equivalents
- AA Rated
Note
2010
$
2009
$
8
1,221,825
1,225,387
b. Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or
otherwise meeting its obligations related to financial liabilities.
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring
sufficient cash and marketable securities are available to meet the current and future commitments of the
Group. Due to the nature of the Group‘s activities, being mineral exploration, the Group does not have ready
access to credit facilities, with the primary source of funding being equity raisings. The Board of Directors
constantly monitor the state of equity markets in conjunction with the Group‘s current and future funding
requirements, with a view to initiating appropriate capital raisings as required. Any surplus funds are
invested with major financial institutions.
The financial liabilities of the Group are confined to trade and other payables as disclosed in the Statement of
financial position. All trade and other payables are non-interest bearing and due within 30 days of the
reporting date.
c. Market risk
The Board meets on a regular basis to analyse currency and interest rate exposure and to evaluate treasury
management strategies in the context of the most recent economic conditions and forecasts.
i.
Interest rate risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of
the reporting period whereby a future change in interest rates will affect future cash flows or the fair value
of fixed rate financial instruments. The Group is also exposed to earnings volatility on floating rate
instruments.
Interest rate risk is not material to the Group as no debt arrangements have been entered into.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 22 – FINANCIAL INSTRUMENTS (CONT.)
ii. Foreign exchange risk
Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial
instrument fluctuating due to movement in foreign exchange rates of currencies in which the Group holds
financial instruments which are other than the AUD functional currency of the Group.
iii. Price risk
Price risk relates to the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices.
The Group is exposed to securities price risk on investments held for trading or for medium to longer
terms.
The investment in listed equities has been valued at the market price prevailing at balance date.
Management of this investment‘s price risk is by ongoing monitoring of the value with respect to any
impairment.
Sensitivity Analysis
The following table illustrates sensitivities to the Group‘s exposures to changes in interest rates. The table
indicates the impact on how profit and equity values reported at balance sheet date would have been
affected by changes in the relevant risk variable that management considers to be reasonably possible.
These sensitivities assume that the movement in a particular variable is independent of other variables.
Consolidated Group
Profit
Equity
Year ended 30 June 2010
$
$
+/-1% in interest rates
+/- 29,316
+/- 29,316
Year ended 30 June 2009
+/-1% in interest rates
+/- 10,771
+/- 10,771
Net Fair Values
Fair value estimation
The fair values of financial assets and financial liabilities are presented in the following table and can be
compared to their carrying values as presented in the statement of financial position. Fair values are
those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable,
willing parties in an arm‘s length transaction.
Cash and cash equivalents, trade and other receivables, and trade and other payables are short-term investments
in nature whose carrying value is equivalent to fair value.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 23: PARENT ENTITY DISCLOSURES
Note
2010
$
2009
$
(a) Financial Position of Aura Energy Limited
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Financial assets
Other assets
TOTAL NON-CURRENT ASSETS
1,160,681
1,208,553
86,247
93,092
1,246,928
1,301,645
53,327
133,432
6,666,137
6,852,896
85,895
274,072
3,934,336
4,294,303
23(b)
TOTAL ASSETS
8,099,824
5,595,948
CURRENT LIABILITIES
Trade and other payables
Short term provisions
TOTAL CURRENT LIABILITIES
228,797
16,894
245,691
184,981
1,404
186,385
TOTAL LIABILITIES
245,691
186,385
NET ASSETS
7,854,133
5,409,563
EQUITY
Issued Capital
Option Reserve
Accumulated Losses
TOTAL EQUITY
12,681,865
859,129
8,856,865
762,752
(5,686,861)
(4,210,054)
7,854,133
5,409,563
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 23: PARENT ENTITY DISCLOSURES (CONT.)
2010
$
2009
$
(b) Financial assets
Loans to subsidiaries
Shares in controlled entities at cost
Net carrying value
Controlled Entities
Country of
Incorporation
Class of
Shares
Keyano Jack Pty Limited
Australia
Ordinary
Aura Energy Sweden AB
Sweden
Ordinary
Investments in subsidiaries are accounted for at cost.
(c) Financial Performance of Aura Energy Limited
115,025
18,407
133,432
255,665
18,407
274,072
Percentage Owned
2010
100%
100%
2010
$
2009
100%
100%
2009
$
Loss for the year
Other comprehensive income
Total comprehensive income
(1,674,207)
(1,949,213)
-
-
(1,674,207)
(1,949,213)
(d) Guarantees entered into by Aura Energy Limited for the debts of its subsidiaries
There are no guarantees entered into by Aura Energy Limited for the debts of its subsidiaries as at 30 June
2010 (2009: none).
(e) Contingent liabilities of Aura Energy Limited
There are no contingent liabilities as at 30 June 2010 (2009: none).
(f) Commitments by Aura Energy Limited
Capital expenditure commitments contracted for:
2010
$
2009
$
Exploration tenement minimum expenditure requirements
6,894,000
7,312,000
Not longer than 1 year
Longer than 1 year and not longer than 5 years
Longer than 5 years
Total commitments
1,386,000
1,270,000
4,238,000
6,894,000
1,301,000
6,011,000
-
7,312,000
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
(f) Commitments by Aura Energy Limited (cont.)
Operating lease commitments:
Operating leases contracted for but not capitalised in the
financial statements
Payable:
- not later than 12 months
- between 12 months and 5 years
- greater than 5 years
Total commitments
2010
$
2009
$
23,000
34,000
-
57,000
-
-
-
-
The amounts noted above are applicable for both Aura Energy Limited (the parent) and the Consolidated Group.
NOTE 24: CONTINGENT LIABILITIES
There are no contingent liabilities as at 30 June 2010 (2009: none).
NOTE 25: COMPANY DETAILS
The registered office of the company is:
Unit 6, 34 York Street
North Perth WA 6006
Telephone 08 9228 0711
Facsimile 08 9228 0704
Website: www.auraenergy.com.au
email: info@auraenergy.com.au
The principal places of business are:
Unit 6, 34 York Street
North Perth WA 6006
Suite 3, Level 1
19-23 Prospect Place
Box Hill VIC 3128
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
DIRECTORS’ DECLARATION
The directors of the Company declare that:
1.
The financial statements and notes, as set out on pages 21 to 60, are in accordance with the Corporations
Act 2001 and:
(a) comply with Accounting Standards;
(b) are in accordance with International Financial Reporting Standards issued by the International
Accounting Standards Board, as stated in note 1 to the financial statements; and
(c) give a true and fair view of the financial position as at 30 June 2010 and of the performance for the
year ended on that date of the Company and Consolidated Group.
2.
the Chief Executive Officer and Chief Finance Officer have each declared that:
(a)
the financial records of the Company for the financial year have been properly maintained in
accordance with s 286 of the Corporations Act 2001;
(b)
the financial statements and notes for the financial year comply with the Accounting Standards; and
(c)
the financial statements and notes for the financial year give a true and fair view.
3.
in the directors‘ opinion there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on
behalf of the directors by:
Director
JAY STEPHENSON
Dated 30th September 2010, Perth WA
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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Independent Auditor's Report
To the Members of Aura Energy Limited
We have audited the accompanying financial report of Aura Energy Limited (“the Company”) and
Controlled Entities (“the Consolidated Entity”), which comprises the statement of financial position as at
30 June 2010, and the statement of comprehensive income, statement of changes in equity and
statement of cash flows for the year ended on that date, a statement of accounting policies, other
selected explanatory notes and the directors’ declaration of the Consolidated Entity, comprising the
Company and the entities it controlled at the year’s end or from time to time during the financial year.
Directors Responsibility for the Financial Report
The directors of Aura Energy Limited are responsible for the preparation and fair presentation of the
financial report in accordance with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining
internal control relevant to the preparation and fair presentation of the financial report that is free from
material misstatement, whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the circumstances.In Note 1, the
directors also state, in accordance with Accounting Standards AASB 101: Presentation of Financial
Statements, that compliance with the Australian equivalents to International Financial Reporting
Standards (IFRS) ensures that the financial report, comprising the financial statements and notes,
complies with IFRS.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our
audit in accordance with Australian Auditing Standards. These Auditing Standards require that we
comply with relevant ethical requirements relating to audit engagements and plan and perform the audit
to obtain reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial report. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In
making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial report 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. 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Independent Auditor’s Report
To the Members of Aura Energy Limited (Continued)
Independence
In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements
and the Corporations Act 2001.
Auditor's Opinion
In our opinion:
a. The financial report of Aura Energy Limited and Controlled Entities is in accordance with the Corporations Act 2001,
including:
i.
ii.
giving a true and fair view of the Company and the Consolidated Entity’s financial position as at 30 June 2010 and of its
performance for the year ended on that date; and
complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001;
b. The financial report also complies with International Financial Reporting Standards as disclosed in Note 1.
Report on the Remuneration Report
We have audited the Remuneration Report included within the report of the directors for the year ended 30 June 2010. The
directors of Aura Energy Limited 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.
Auditor’s Opinion
In our opinion the Remuneration Report of Aura Energy Limited for the year ended 30 June 2010, complies with section 300A of
the Corporations Act 2001.
BENTLEYS
Chartered Accountants
RANKO MATIC CA
Director
DATED at PERTH this 30th day of September 2010
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
The following additional information is required by the Australian Securities Exchange Ltd in respect of listed
public companies only.
1
Shareholding as at 28 September 2010
(a) Distribution of Shareholders
Category (size of holding)
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Number
Ordinary
27
148
160
461
122
918
(b) The number of shareholdings held in less than marketable parcels is 79.
(c) Voting Rights
The voting rights attached to each class of equity security are as follows:
Ordinary shares
— Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a
meeting or by proxy has one vote on a show of hands.
(d) 20 Largest Shareholders — Ordinary Shares as at 28 September 2010.
Name
Number of Ordinary
Fully Paid Shares
Held
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
UBS NOMINEES PTY LTD
GCM RESOURCES PLC
DRAKE RESOURCES LIMITED
YARANDI INVESTMENTS PTY LTD
WALKER GROUP HOLDINGS PTY LTD
ASHABIA PTY LTD
WISEVEST PTY LTD
MRS JENNY LEE BUSHELL
SUVALE NOMINEES PTY LTD
PERMGOLD PTY LTD
MR MICHAEL BUSHELL
ABN AMRO CLEARING SYDNEY NOMINEES PTY LTD
MR VIKTOR PALL + MRS MARGIT PALL
FINANCE ASSOCIATES PTY LTD
9,921,434
7,939,993
3,550,000
2,750,000
2,300,000
2,150,000
2,108,787
2,000,000
1,800,000
1,666,667
1,666,666
1,492,878
1,224,200
1,200,000
MR ROBERT BEESON
1,000,000
% Held of Issued
Ordinary Capital
10.37
8.30
3.71
2.87
2.40
2.25
2.20
2.09
1.88
1.74
1.74
1.56
1.28
1.25
1.04
64 of 67
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
16.
17.
18.
19.
20.
MIDWAY SECURITIES PTY LTD
1,000,000
PINEWOOD ASSET PTY LTD
ALMAMATER PTY LTD
MR PETER OTTON
GASMERE PTY LIMITED
980,000
850,000
850,000
771,000
1.04
1.02
0.89
0.89
0.81
47,221,625
49.33
2
The name of the Company Secretary is Jay Richard Stephenson.
3
The address of the principal registered office in Australia is 6/34 York Street NORTH PERTH WA 6006.
Telephone (08) 9228 0711.
4
Registers of securities are held at the following addresses
Western Australia
Computershare Registry Services
Level 2, 45 St Georges Terrace
PERTH WA 6000
5
Stock Exchange Listing
Quotation has been granted for all the ordinary shares of the Company on all Member Exchanges of the
Australian Stock Exchange Limited.
6
Unquoted Securities
Options over Unissued Shares
A total of 7,450,000 options are on issue of which 6,000,000 options are on issue to the four Directors.
7
Use of Funds
The Company has used its funds in accordance with its initial business objectives.
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
AREA
Gunbarrel
TENEMENT REPORT
PROJECT
Aura %
Kimberley
Yilgarn
Sweden
GB E38/1839 Lake Rason
GB E38/1874 Lake Rason S
GB E38/1920 Tierney Springs
GB E38/1922R Lake McInnes
GB E38/1923 Lake Rason SW
GB E38/1924 Lake Rason N
GB E38/1929 Lake Rason W
GB E38/2194 Lake Rason NW
GB E39/1200 Kirgella Rocks
GB E39/1201R Lake Minigwal
GB E39/1221 Ponton
GB E39/1377 Havana West
GB E69/2245 Neale - Thin
GB E69/2263 Tierney Springs
Ea
KM E04/1618 Maudie Creek
KM E04/1667 Beverley Springs
KM E04/1668 Charnley River
KM E80/3728 Gardner Plateau
KM E80/3744 Kalumburu
KM E80/3768 King Edward
River
WN E58/290 Wondinong
Central
YC E58/349 Wondinong NE
YC E36/556 Depot Springs
YC E36/557 Altona
YC E38/1899 Nambi
YC E53/1245 Porcupine Well
YC E57/621 Shaws Bore
YC E57/644R Cashmere Downs
YC E57/645 Cashmere Downs
YC E57/646R Cashmere Downs
YC E77/1298 Lake Giles
SN Vuoltajaur nr 1
SW Virka nr 10 2007/210
SN Virka nr 11 2008/220
SN Virka nr 12
SN Rassnesudden nr 1 Pending
SN Nastansjo nr 1 2007/227
SJ Hamborg nr 1 2007/327
SJ Hamborg nr 2
SJ Grimsan 2007/288
SJ Olden 2007/223
SJ Finningen 2007/287
SJ Flandern nr 1
SJ Grasslatten 2007/326
SJ Gurumyren 2007/297
SJ Haggan 2007/243
SJ Haggan nr 2
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2010
TENEMENT REPORT
AREA
PROJECT
Aura %
SJ Marby 2007/244
SJ Nakten 2007/222
SJ Bjarme 2007/316
SJ Hara 2007/240
SJ Hackas 2007/246
SB Stripa 2007/105
SB Timansberg nr 1 2008/80
SB Blankagruvan 2007/163
SB Silen 2007/225
SB Dalsjon 2007/220
SB Tappetjarnet 2007/221
SB Massingsberget 2007/238
SB Samsala 2007/218
SB Oxgruvan 2007/219
SB Trehorningen 2007/162
SB Bredsjon 2007/217
SB Tjuvagruvan 2007/97
SB Hakantorp 2007/96
SB Valfalla 2007/216
SB Hageby nr 1
SB Ullevi nr 1
SB Stavlosa nr 1
WAJV Niger - Ebadargene 1
WAJV Niger - Ebadargene 2
WAJV Niger - Ebadargene 3
WAJV Niger - NGM
WAJV Maurit - Oued elFoule Est
WAJV Mauritania - Ain Sder
WAJV Mauritania - Oum Ferkik
WAJV Mauritania - Fai Est
WAJV Mauritania - Fai Ouest
WAJV Mauritania - Fai Nord
WAJV Mauritania - Saabia
WAJV Mauritania - Oum Drouss
WAJV Maurit - Oued
elFouleNord
WAJV Mauritania - Aleg
WAJV Maurit - El Mreiti Nor
WAJV Maurit - Tin Bessais Nord
WAJV Maurit - Tiguesmat Sud
WAJV Maurit - El
HassenOuldHam
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
45%
50%
50%
50%
34%
44%
45%
47%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
West Africa
AURA ENERGY LIMITED – ANNUAL REPORT AND FINANCIAL STATEMENTS – 30 JUNE 2010
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