ABN 62 115 927 681
ANNUAL REPORT
30 JUNE 2013
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
CORPORATE DIRECTORY
Directors
Peter Reeve
Robert (Bob) Beeson
Brett Fraser
Julian (Jules) Perkins
Company Secretary
Jay Stephenson
Chairman
Managing Director
Non-executive Director
Non-executive Director
Registered Office
Street:
Postal:
Telephone:
Facsimile:
Email:
Level 4, 66 Kings Park Road
West Perth WA 6005
PO Box 52
West Perth WA 6872
+61 (0)8 6141 3570
+61 (0)8 6141 3599
info@auraenergy.com.au
Technical Office
Street:
Level 1, 19-23 Prospect Street
Box Hill VIC 3128
Telephone:
Facsimile:
+61 (0)3 9890 1744
+61 (0)3 9890 3411
Other offices
Exploration office – Sweden
Exploration office – Mauritania
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
Securities Exchange
Australian Securities Exchange
ASX Code – AEE
Website: www.auraenergy.com.au
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
ANNUAL REPORT
30 JUNE 2013
CONTENTS
CHAIRMAN'S LETTER .............................................................................................................................................................. 3
OPERATIONS REVIEW 2013 .................................................................................................................................................... 4
CORPORATE GOVERNANCE STATEMENT .............................................................................................................................. 11
DIRECTORS’ REPORT ............................................................................................................................................................. 17
REMUNERATION REPORT ..................................................................................................................................................... 23
AUDITOR’S INDEPENDENCE DECLARATION .......................................................................................................................... 27
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ................................................ 28
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ....................................................................................................... 29
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ......................................................................................................... 30
CONSOLIDATED STATEMENT OF CASH FLOWS ..................................................................................................................... 31
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ................................................................................................... 32
DIRECTORS’ DECLARATION ................................................................................................................................................... 67
INDEPENDENT AUDITOR'S REPORT ...................................................................................................................................... 68
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES ............................................................................................. 70
TENEMENT REPORT .............................................................................................................................................................. 72
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
CHAIRMAN'S LETTER
Dear Shareholders
Welcome to this review of the Aura Energy’s activities for the year ended 30 June 2013. I have only recently
joined Aura Energy as Chairman at a time that is shaping up to be a pivotal period in the Company's evolution.
Aura Energy has an extraordinary uranium resource base across its Swedish and Mauritanian projects and this is
testament to the quality and depth of technical expertise in both its management and board. The Company’s
859 million pound resource ranks amongst the largest of all uranium companies and positions Aura Energy to
become a major producer in the years ahead.
Häggån in Sweden with its scale, innovative natural leaching process and low cash costs may herald a refreshing
change in uranium operating methods which is both low impact and environmentally friendly. Reguibat in
Mauritania is now presenting itself as potentially an early cash flow producing project with recent ore
beneficiation testwork upgrading the processing head grade significantly. If confirmed this will have the impact of
reducing the capital required to develop this remote project. Projects of this quality become the foundations of a
great company.
For most of the 2013 financial year the management and the Board vigorously pursued a Strategic Partnership
with significant French nuclear player Areva on Aura Energy’s large Häggån project. The technical and commercial
exchange was robust however in the final analysis Aura and Areva did not consummate a transaction. That a
transaction was not consummated is testament to the commitment of the Aura Energy board to get the best long
term outcome for shareholders. The Company is now free to pursue a range of development options in its own
right preserving significant future value to shareholders.
Recently a number of board changes were made, including Brett Fraser resigning his position as Chairman. I
would like to pay tribute to the efforts of Brett, who remains a Director of the company, and the outgoing
Directors for their contribution in placing Aura Energy in this strong position.
Also to all Aura Energy employees and contractors in Australia, Sweden and Mauritania the Board greatly
appreciates the valuable contribution that you have made to progress the company’s projects which places Aura
Energy in its current strong position for the future.
2014 is looking like a seminal year for Aura Energy as the Company pursues different development options for
Häggån and Reguibat. We look forward to an exciting year ahead, striving for project advancement and
improving shareholder value. I hope you remain as shareholders and enjoy the journey.
Regards
PETER REEVE
Chairman, Aura Energy Limited
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
OPERATIONS REVIEW 2013
Aura is fortunate to possess two large uranium resources with the potential to become low cost mining
operations. The Häggån and Reguibat Projects were both greenfields discoveries by Aura’s exploration team. In
addition the Aura team has made bioleaching and beneficiation innovations to transform the economics of these
projects.
Both Projects have the potential to become company makers.
HÄGGÅN PROJECT, SWEDEN (AURA 100%)
Häggån is a major uranium project in Central Sweden. Sweden has a current and active mining industry, with a
clear regulatory position and a well-established path from exploration to mining.
PROJECT SUMMARY
The Häggån Project is a giant, multi-metal deposit which is underpinned by huge uranium resource. The main
metals in the current resources are:
803Mlbs U₃O₈ inferred resource (2.35Bn tonnes @ 155 ppm U₃O₈)
Nickel
Zinc
Molybdenum
1,070Mlbs
2,230Mlbs
1,640Mlbs
The size of the Häggån resource places it in the top two largest undeveloped uranium resources that are
compliant with ASX or TSX requirements.
The major advance with the Häggån Project has been the discovery that the material is ideally suited to bioleach
metal extraction. Bioleaching, including bioheap leaching, is a proven technology widely used in copper and gold
industries, but has had limited prior application to the uranium industry. The key advantage of bioheap leaching
is that it has low capital and operating costs.
Aura’s tests of bioleaching have been very successful. Extractions of up to 85% have been achieved at both bench
scale, and, importantly, in the 2 metre columns reported in 2012. These larger columns simulate the
performance of the extraction technology in the heaps of mineralisation similar to how the method will be
applied in an operation.
The key outcome of these tests is that acid consumption was satisfactorily low greatly reducing operating costs in
a future operation.
Aura’s independent consultants completed a scoping study for the project in 2012. In this study initial pit shells
containing 741 Mt of mineralisation were defined. To maximise the extraction of the pit shells a nominal 30 Mtpa
operation, with 25 year initial mine life was selected. Because of the laterally extensive, near surface nature of
the mineralisation the stripping ratio of waste to ore was a low 0.75:1, indicating that mining costs would also be
low.
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
Map of the Häggån Project area showing the distribution of Inferred Resources (green)
and areas of Exploration Potential (red)
The financial model based on this scoping study gave a strongly positive economic outcome. The mean NPV was
estimated at US$1.85 billion pre-tax, using a 10% discount rate and a $65/lb. uranium price. The IRR for this
model was 49%, and a payback period of less than 5 years.
This very favourable outcome of the scoping study was based on the low capital and operating costs of large,
heap leach operations. The operating costs per pound of uranium produced were estimated at $13.50 per pound
after by-product credits from nickel and molybdenum were accounted for, making Häggån a potential lower
quartile project.
This translates to $9.30/t, in line with those of similar bioheapleach operations such as Zaldivar copper operation
in Chile ($8-9/tonne).
The pre-production capital used in the model was US$537m, plus a sustaining capex of US$18M per annum.
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The operating costs per pound of uranium produced were estimated at $13.50 per pound after by-product
credits from nickel and molybdenum were accounted for, making Häggån a potential lower quartile project.
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
Two metre bioleaching testwork columns at the SGS Laboratory in Perth, Australia
Aura is currently examining the option of a smaller, start-up operation. This will have the advantage reducing the
upfront costs of the Project, and being able to stage the Project development.
The Häggån Project in located in Sweden, and has excellent infrastructure. It is close to rail and road links
between Stockholm and Norway. The country-wide 132 kV grid is already at Östersund, some 30 kilometres to
the northeast.
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
SWEDEN AS A MINING COUNTRY
Sweden has a long history of mining, and its legislation and regulations are supportive of mining. The country is
Europe’s largest iron ore producer, and contains its largest copper mine.
It is recognized as a low sovereign risk mining destination. It recently ranked second, after Finland, in the Fraser
Institute (Canada) survey of most favoured mining countries.
Sweden has a low corporate tax rate and royalties.
Sweden is a nuclear country, with 50% of electricity needs generated by 10 reactors.
WEST AFRICAN ACTIVITIES
Aura has been active in the uranium provinces of West Africa since 2007. It currently holds tenements and joint
ventures in Mauritania.
Mauritania has a developed mining industry, a government keen to attract foreign investment, a stable business
environment, and extensive good quality geological, geophysical and geochemical databases. It has also been the
centre of significant corporate transactions across a range of commodities. Uranium discoveries in northern
Mauritania confirm that this is an emerging uranium province.
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
The 2013 Fraser Institute (Canada) report on the most favourable countries for mining investment recently
ranked Mauritania as the fourth African country, and ahead of other well-known mining destinations in Africa
such as Burkina Faso and Mali, and other jurisdictions such as New South Wales, Tasmania, Brazil, Peru and
Mexico.
REGUIBAT PROJECT
The Reguibat Project comprises several laterally extensive developments of calcrete uranium mineralisation in
northern Mauritania. An Inferred Resource of 49 million pounds at 334ppm U3O8 at a cut-off grade of 100ppm
U3O8 was established in July 2011. This resource is contained in permits 100 per cent held by Aura.
The project mineralisation occurs at or just below the surface in flat-lying sheets. Mining would be inexpensive. It
would be from shallow pits dug out by standard excavators and trucks, with no need for blasting. The strip ratio is
likely to be well below 1.0.
The area of the deposit is largely flat-lying, treeless, uninhabited desert.
Trench through Reguibat calcrete uranium deposit showing the patches of yellow uranium mineralisation
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
PHYSICAL URANIUM CONCENTRATION
The Reguibat Project is one of a small number of calcrete uranium projects that has the characteristics that
permits substantial grade increases through simple beneficiation.
Scrubbing and screening tests on samples from the eastern Reguibat Project have determined that significant
upgrade of uranium could be achieved in the fine screen fractions. Using this simple screening upgrade head
grades of over 3000 ppm U3O8 were achieved, compared with the resource grade of 334ppm U3O8. The
generation of this high grade product now opens up substantial opportunities for fast tracked development given
the simplicity of the process and potentially significant improvement in project economics.
More work needs to be done in this area, but the very substantial increase in uranium grade through
conventional beneficiation procedures may enable the Project to have relatively small leaching capacity, and
consequently lower capital and operating costs.
Trenching through the Reguibat calcretes showing the ease of excavation, and the flat, vegetation-free
landscape
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
HÄGGÅN RESOURCE STATEMENTS
Category
Cut-off U3O8
Size
U3O8
Mo
V
Ni
Zn
ppm U3O8
Bt
ppm
ppm
ppm
ppm
ppm
Inferred
100
2.35
155
207
1,519
316
431
Competent Persons for Häggån Resource
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. Dr Beeson takes responsibility for the requirement
of “reasonable prospects for eventual economic extraction” for the reporting of Häggån Resources at the quoted cut-off
grades.
Mr. Arnold van der Heyden takes responsibility for estimation of uranium and associated metals in the Häggån Resource. Mr.
van der Heyden is a director of H&SC and is a competent person in the meaning of JORC having had around thirty years
relevant experience in exploration and estimation of uranium and other metal resources in many parts of the world. He is a
member of the Australian Institute of Geoscientists. Mr. van der Heyden consents to the inclusion in the report of the matters
based on his information in the form and context in which it appears.
REGUIBAT RESOURCE STATEMENT
Category
Cut-off U3O8
Size
U3O8
ppm U3O8
Bt
ppm
Inferred
100
66.2
334
Competent Persons for Reguibat Resource
The information in the report to which this statement is attached that relates to the Mineral Resource and is based on
information compiled by Oliver Mapeto. Oliver Mapeto is a Member of The Australasian Institute of Mining and Metallurgy.
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. Dr Beeson takes responsibility for data integrity,
QA/QC and the requirement of “reasonable prospects for eventual economic extraction” for the reporting of Häggån
Resources at the quoted cut-off grades.
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
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.
1.1:
Companies 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 Group;
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 Group’s auditor(s);
Appoint and assess the performance of the Managing Director and members of the senior management
team;
Report to shareholders.
1.2:
Companies should disclose the process for evaluating the performance of senior executives.
The Board regularly reviews the performance of senior executives.
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.
2.1:
A majority of the Board should be independent Directors.
The majority of the Board is independent. Refer general comments below.
2.2:
The Chairperson should be an independent Director.
The Chairman is not independent. Refer general comments below.
2.3: The roles of the Chairperson and Chief Executive should not be exercised by the same individual.
Refer general comments below.
2.4: Establishment of a nominations committee.
Refer general comments below.
2.5: Disclose the process for performance evaluation of the board, its committees and individual directors, and key
executives.
Refer general comments below.
2.6: Provide the information indicated in the ASX Corporate Governance Council’s Guide to Reporting on Principle 2.
Refer general comments below.
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
CORPORATE GOVERNANCE STATEMENT
GENERAL COMMENTS:
Membership
The Board’s membership and structure is selected to provide the Group with the most appropriate direction in
the areas of business controlled by the parent company. The Board of the parent company currently consists of
four members; a Managing Director, and three non-executive Directors. Refer to the Directors’ Report:
Information on Directors on page 18 for details of each Director’s profile. The majority of the Board is
independent.
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 Group.
Performance Evaluation
The Board assesses its performance, the performance of individual directors and the performance of its
committees annually through a process of internal review. The Board also formally reviews its governance
arrangements on a similar basis annually.
The performance of Key Management Personnel ("KMP") is reviewed on an annual basis by the Board and
remuneration committee.
The performance of each member of KMP is assessed against their individual performance plans, which
comprise target performance indicators. Performance indicators for each KMP are set annually in consultation
with KMP. Consideration is also given to the contribution each member of KMP makes to board meetings.
Further details regarding the Board’s remuneration policy for KMP is provided in the Remuneration Report on
page 23.
Nomination Committee
The parent 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, mining engineering,
metallurgical engineering, technical management, 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.
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;
3.1.3 The responsibility and accountability of individuals for reporting and investigating reports of unethical practices.
The Group 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 parent company policies. Each staff member
is issued with the parent company’s Policies and Procedures manual at the beginning of their employment.
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
CORPORATE GOVERNANCE STATEMENT
3.2:
Establish a policy concerning diversity and disclose the policy or a summary of that policy. The policy should include
requirements for the board to establish measurable objectives for achieving gender diversity for the board to assess
annually both the objectives and progress in achieving them.
The parent company has a diversity policy included in its Corporate Governance Policy.
3.3: Disclose in each annual report the measurable objectives for achieving gender diversity set by the board in accordance
with the diversity policy and progress towards achieving them.
Aura believes that the promotion of diversity on boards, in senior management and within the organisation generally
broadens the pool for recruitment of high quality directors and employees; is likely to support employee retention;
through the inclusion of different perspectives, is likely to encourage greater innovation; and is socially and
economically responsible governance practice.
Aura is in compliance with the ASX Corporate Governance Council’s Principles & Recommendations on Diversity. The
Board of Directors is responsible for adopting and monitoring the parent company's diversity policy. The policy sets
out the beliefs and goals and strategies of the Company with respect to diversity within the Group. Diversity within
the Group means all the things that make individuals different to one another including gender, ethnicity, religion,
culture, language, sexual orientation, disability and age. It involves a commitment to equality and to treating of one
another with respect.
Aura is dedicated to promoting a corporate culture that embraces diversity. Aura believes that diversity begins with
the recruitment and selection practices of its board and its staff. Hiring of new employees and promotion of current
employees are made on the bases of performance, ability and attitude.
3.4: Disclose in each annual report the proportion of women employees in the whole organisation, women in senior
executive positions and women on the board.
Currently there are four women employees in the whole organisation in varying positions. Given the present size of
the Group, there are no plans to establish measurable objectives for achieving gender diversity at this time. The need
for establishing and assessing measurable objectives for achieving gender diversity will be re-assessed as the size of
the Group increases.
3.5:
Provide the information indicated in the ASX Corporate Governance Council’s Guide to Reporting on Principle 3.
A summary of both the parent company’s Code of Conduct and its Share Trading Policy is included on the Aura’s
website at http://auraenergy.com.au/ourcompany-corporategovernance.html.
4. SAFEGUARD INTEGRITY IN FINANCIAL REPORTING.
The Board should establish an audit committee.
4.1:
Refer general comments below.
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.
Refer general comments below.
4.3:
The Audit Committee should have a formal charter.
Refer general comments below.
GENERAL COMMENTS:
Integrity of Company’s Financial Condition
The Group’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 Group’s financial condition and operational results are in
accordance with relevant accounting standards.
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
CORPORATE GOVERNANCE STATEMENT
Audit Committee
Aura has a formal charter for an Audit Committee. The Audit Committee formerly comprised Messrs Fraser,
Junk, and O’Loughlin who were 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.
Due to the Board restructure, Mr Fraser is currently the sole member of the Audit Committee whilst a new
committee is being established.
Audit Committee Meetings
Details of meetings held can be found in the Directors' Report: Meetings of Directors on page 21.
5. MAKE TIMELY AND BALANCED DISCLOSURE.
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 Australian Securities Exchange (ASX), the parent company has an obligation under the ASX
Listing Rules to maintain an informed market with respect to its securities. Accordingly, Aura advises the market of all
information required to be disclosed under the Rules that the Board believes would have a material effect on the
price of the parent company's securities.
The Company Secretary has been appointed as the person responsible for communication with the 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 Group's annual report.
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.
6.1: Design and disclose a communications strategy to promote effective communication with shareholders and encourage
effective participation at general meetings.
Refer general comments below.
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.
Refer general comments below.
GENERAL COMMENTS:
Aura is committed to keeping shareholders fully informed of significant developments in the Group. In addition
to public announcements of its financial statements and significant matters, Aura provides the opportunity for
shareholders to question the Board and management about its activities at the parent company's annual
general meeting.
The Group'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.
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AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
CORPORATE GOVERNANCE STATEMENT
7. RECOGNISE AND MANAGE RISK
7.1:
The Board or appropriate Board committee should establish policies on risk oversight and management.
Refer general comments below.
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.
Refer general comments below.
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.
Refer general comments below.
7.4:
Provide the information indicated in the ASX Corporate Governance Council’s Guide to reporting on Principle 7.
Refer general comments below.
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.
In addition to their regular reporting on business risks, risk management and internal control systems, the CEO
and Chief Financial Officer also provide the Board with written assurance that the directors’ declaration
provided with the annual report is founded on a sound system of risk management and internal control, and
that this system is operating effectively in all material respects in relation to the financial reporting risks. This
assurance is provided prior to the meeting at which the directors are due to authorise and sign the company’s
financial statements.
8. REMUNERATE FAIRLY AND RESPONSIBLY
8.1: The Board should establish a Remuneration Committee.
Refer general comments below.
8.2
The remuneration committee should be structured so that it:
consists of a majority of independent directors;
is chaired by an independent director; and
has at least three members.
Refer general comments below.
8.3: Clearly distinguish the structure of non-executive Directors' remuneration from that of executives.
Refer general comments below.
8.4:
Provide the information indicated in the ASX Corporate Governance Council’s Guide to Reporting on Principle 8.
Refer general comments below.
P a g e | 15
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
CORPORATE GOVERNANCE STATEMENT
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 were formerly Messrs Fraser, Junk, and Stephenson.
Due to the Board restructure, Mr Fraser is currently the sole member of the Remuneration Committee whilst a
new committee is being established.
Audit Committee Meetings
Details of meetings held can be found in the Directors' Report: Meetings of Directors on page 21.
Directors' Remuneration
Further information on Directors' and executives' remuneration is set out in the Directors' Report:
Remuneration Report on page 23 and Note 5 Key Management Personnel Compensation to the financial
statements on page 46.
P a g e | 16
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
DIRECTORS’ REPORT
Your Directors present their report together with the financial statements of the Group, being the company and its controlled
entities, for the financial year ended 30 June 2013.
Directors
The names of Directors in office at any time during or since the end of the year are:
Mr. Peter Reeve
Dr. Robert (Bob) Beeson
Mr. Brett Fraser
Mr. Julian (Jules) Perkins
Mr. Simon O’Loughlin
Mr. Jay Stephenson
Mr. Leigh Junk
Chairman (Appointed 13 July 2013)
Managing Director
Non-executive Director (Stepped down as Chairman 13 July 2013)
Non-executive Director
Non-executive Director (Resigned 12 July 2013)
Non-executive Director (Resigned 12 July 2013)
Non-executive Director (Resigned 12 July 2013)
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 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 performs the role of Chief
Financial Officer for the Company and was previously a non-executive director.
Principal Activities
The principal activities of the Group during the financial year were the exploration and evaluation of its projects in Sweden,
Mauritania, and Australia.
Dividends Paid or Recommended
There were no dividends paid or recommended during the financial year ended 30 June 2013.
Review of Operations
A detailed review of the Group’s exploration activities is set out in the section titled Operations Review on page 4 in this
annual report.
Operating Results
The consolidated loss for the year amounted to $2,756,341 (2012: $2,343,450). The increase is wholly attributable to the
aforementioned write-off of exploration assets.
The financial statements have been prepared on a going concern basis, which contemplates the continuity of normal business
activity and the realisation of assets and the settlement of liabilities in the ordinary course of business. Details of the Groups
assessment in this regard can be found in Note 1 Statement Of Significant Accounting Policies: Going Concern on page 32. The
auditor's report on page 68 contains an emphasis on matter in this regard.
Financial Position
The net assets of the Group have increased by $345,604 from 30 June 2012 to $16,566,511 at 30 June 2013.
As at 30 June 2013, the Group's cash and cash equivalents increased from 30 June 2012 by $286,783 to $2,012,295 and had
working capital of $1,540,401 (2012: $1,484,457 working capital).
Significant Changes in State of Affairs
The following significant changes in the state of affairs of the Group occurred during the financial year:
The Company issued:
9,090,909 Shares on 9 November 2012 raising $1,000,000;
10,498,750 Shares on 20 May 2013 raising $839,900; and
4,073,392 Shares issued on 26 June 2013 raising $325,871.
Costs related to these issues amounted to $129,748.
P a g e | 17
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
DIRECTORS’ REPORT
Significant Changes in State of Affairs (cont.)
The Group rationalised its tenement holdings, relinquishing non-core assets. As a result of this rationalisation, the
Group wrote off expenditure amounting to $811,454.
The Group withdrew from its Joint Venture in Mauritania.
Aura entered the Joint Venture with Ghazal Limited in 2010. The Joint Venture comprised two permits which contained
large areas of radiometric anomalies.
Two drilling campaigns have not identified sufficient mineralisation to justify continuing the Joint Venture. In addition
the joint venture areas were greater than 180 kilometres from Aura’s closest resources, and any exploration success in
the joint venture areas would have had limited impact on the main project areas.
As a result of this withdrawal, the Group wrote off expenditure amounting to $965,065.
There were no other significant changes to the state of affairs of the Group.
After Balance Date Events
On 12 July 2013 Messrs Stephenson, O'Loughlin, and Junk stepped down as non-executive directors of the Company. In
addition, Aura's discussions with AREVA Mines SA (AREVA) concluded with AREVA electing not to proceed with the
proposed strategic partnership involving the Häggån uranium and polymetallic project (Häggån Project). As a result of this,
the Company undertook a review of its Swedish Projects. Consequently Aura has elected to rationalise its holdings within
Sweden through the relinquishing tenements to the value of $320,184.On 13 July 2013, Mr. Peter Reeve was appointed as
chairman of Aura Energy Limited, with Mr. Fraser retiring to a non-executive role.
There are no other significant after balance date events that are not covered in the Operations Review on page 4 or within
the financial statements at Note 20 Events Subsequent To Reporting Date on page 55.
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 that the inclusion of such information would
be likely to result in unreasonable prejudice to the Group.
Information on Directors
Mr. Peter Reeve
Qualifications
Chairman (Non-Executive) – Appointed 13 July 2013
Mr. Reeve is a professional metallurgist, and has held positions with Rio Tinto, Billiton
Australia and Newcrest Mining. Peter was a Resource Fund Manager and Resources
Corporate Finance Director at J B Were & Son. More recently Peter was Chief Executive
Officer of Ivanhoe Australia Ltd.
Experience
Board member since 13 July 2013.
Interest in Shares and Options
No ordinary Shares in Aura Energy Limited and no options.
Subject to shareholder approval, options will be granted in three tranches as follows:
Tranche 1 –
2,000,000 options granted on appointment exercisable at $0.15,
expiring 13 January 2015.
2,250,000 options granted on appointment exercisable at $0.20,
vesting 13 January 2015, and expiring 13 January 2016.
2,250,000 options granted on appointment exercisable at $0.20,
vesting 13 July 2015, and expiring 13 July 2016
Tranche 2 –
Tranche 3 –
Special Responsibilities
Capital Market and Commercial Development Director
Directorships held in other
listed entities
Nil
P a g e | 18
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
DIRECTORS’ REPORT
Mr. Brett Fraser
Qualifications
Director (Non-Executive) – stepped down as Chairman 13 July 2013
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
2,486,040 ordinary Shares in Aura Energy Limited and 1,076,579 options.
Special Responsibilities
Directorships held in other
listed entities
Member of the Audit Committee, Due Diligence Committee, and Remuneration
Committee.
Finance and Commercial Development Director
Current non-executive director and Chairman of Drake Resources Limited since March
2004, and non-executive director and Chairman of Blina Diamonds NL since September
2008. Past director of Doray Minerals Limited from October 2009 until November 2011.
No other directorships in the past three years.
Dr. Robert Beeson
Managing Director
Qualifications
Experience
Bachelor of Science with Honours; PhD; Member of the Australian Institute of
Geoscientists
Board member since 31 March 2006. Geologist with over 35 years of global experience in
uranium and other commodity management, exploration and development
Interest in Shares and Options
2,257,460 Ordinary Shares in Aura Energy Limited and 2,270,710 options.
Directorships held in other
listed entities
Managing Director of Drake Resources Limited since November 2004 until 31 January
2013. Non-executive director or Drake Resources Limited from 1 February 2013. No
other directorships in the past three years.
Mr. Julian Perkins
Director (Non-Executive)
Qualifications
Experience
Master of Science (Imperial College of Science & Technology) 1972; Associate of the
Camborne School of Metalliferous Mining (Honours) 1967; Fellow of the Australasian
Institute of Mining and Metallurgy; Member of the Australian Institute of Company
Directors.
Board member since 7 June 2011.
Mr. Perkins has over 40 years' experience in operations and management with major
companies in the international minerals industry. He was Manager of Mining &
Technology (Australia) for AngloGold Ashanti Ltd, one of the world’s largest gold mining
companies, until 2006. His career includes underground mining engineering in South
Africa and management of metallurgic operations on the Zambian Copperbelt. Jules led
the mineral processing department of Shell Research in the Netherlands for three years
before moving into corporate management in the Netherlands and then in Australia. Mr.
Perkins is currently Chairman of the Board of Parker Centre Ltd, which manages the
Parker Cooperative Research Centre (‘CRC’) for Hydrometallurgy. Jules has previously
been a director on the boards of the CRC Mining and the Australian Centre for Mining
Environmental Research.
Interest in Shares and Options
240,000 Ordinary Shares in Aura Energy Limited and 56,667 options.
Special Responsibilities
None
Directorships held in other listed
entities
No other directorships held in other listed entities.
P a g e | 19
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
DIRECTORS’ REPORT
Mr. Jay Stephenson
Director (Non-Executive) – Resigned 12 July 2013; 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 from 24 August 2005 to 12 July 2013.
Interest in Shares and Options
1,881,068 Ordinary Shares in Aura Energy Limited and 1,013,368 options, as at the date
of resignation.
Special Responsibilities
Member of Due Diligence Committee and Remuneration Committee up to the date of
resignation.
Directorships held in other listed
entities
Current non-executive Director of Drake Resources Limited since March 2004, Strategic
Minerals Corporation NL since July 2009, Doray Minerals Limited since August 2009,
Spencer Resources Limited since March 2012, and Nickelore Limited since July 2011.
Chairman and non-executive Director of Quintessential Resources Limited since February
2011. Past non-executive director of Excelsior Gold Limited from October 2009 to
November 2009 and Parker Resources Limited from January 2011 to December 2012. No
other directorships in the past three years.
Mr. Simon O’Loughlin
Director (Non-Executive) – Resigned 12 July 2013
Qualifications
Experience
BA(Acc), Law Society Certificate in Law.
Board member from 31 March 2006 to 12 July 2013.
Interest in Shares and Options
993,112 Ordinary Shares in Aura Energy Limited and 125,000 options, as at the date of
resignation.
Special Responsibilities
Former member of Audit Committee and Due Diligence Committee up to the date of
resignation.
Directorships held in other listed
entities
Chesser Resources Limited since March 2006, Goldminex Resources Limited since June
2012, Kibaran Resources Limited since September 2010, Petratherm Limited since
October 2003, and WCP Resources Limited since March 2005
Former director of Bondi Mining Limited (December 2006 to January 2012), Bioxyne
Limited (July 2008 to April 2012), Avenue Resources Limited (March 2010 to March
2012), and Living Cell Technologies Limited (May 2004 to November 2010), Australia
Oriental Minerals NL (April 2012to February 2013), Neurodiscovery Limited (March 2012
to July 2013).
No other directorships in the past three years.
Mr. Leigh Junk
Qualifications
Experience
Director (Non-Executive) – Resigned 12 July 2013
Diploma of Surveying from Wembley Technical College in 1992, Graduate Diploma of
Mining Engineering from University of Ballarat in 2000, and a Masters in Mineral
Economics from Curtin University in 2008.
Board member from 7 June 2011 to 12 July 2013.
Mr. Junk is a mining engineer with 20 years’ experience in the mining industry. Mr. Junk
was the executive responsible for feasibility studies, project evaluation, production
scheduling and mine design with several mining companies throughout Western
Australia, including Pilbara Manganese Pty Ltd, WMC Resources Ltd. and Mincor
Operations Pty Ltd. Mr. Junk then co-founded his private mining company Donegal
Resources Pty Ltd which was later sold to Canadian miner Brilliant Mining Corp.
Interest in Shares and Options
937,500 Ordinary Shares in Aura Energy Limited and 125,000 options, as at the date of
resignation.
Special Responsibilities
Member of Audit Committee and Remuneration Committee up to the date of
resignation.
Directorships held in other listed
entities
Mr. Junk is a Director of Doray Minerals Limited, Sentosa Mining Limited, and Goldfields
Money Limited.
P a g e | 20
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
DIRECTORS’ REPORT
Meetings of Directors
During the financial year 11 meetings of Directors (including committees of Directors) were held. Attendances by each
Director during the year were as follows:
DIRECTORS’
MEETINGS
DUE DILIGENCE
COMMITTEE
REMUNERATION
AUDIT
COMMITTEE
COMMITTEE
COMMITTEE MEETINGS
Number
eligible to
attend
0
8
8
8
8
8
7
Number
Attended
N/A
8
8
8
8
8
8
Number
eligible to
attend
Number
Attended
Number
eligible to
attend
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0
1
-
0
-
1
-
Number
Attended
N/A
1
-
1
-
1
-
Number
eligible to
attend
0
2
-
1(1)
1
1
-
Number
Attended
N/A
2
-
-
2
2
-
Peter Reeve
Brett Fraser
Bob Beeson
Jay Stephenson
Simon O’Loughlin
Leigh Junk
Jules Perkins
(1)
Acting Member – Aura Energy Limited Audit Committee
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 wilful breach of duty in relation to the Company. The amount of the premium
was $9,500.
No indemnity has been paid to auditors of the Group.
Options
At the date of this report, the un-issued ordinary shares of Aura Energy Limited under option (listed and unlisted) are as
follows:
Grant Date
Date of Expiry
Exercise Price
Number under Option
23 December 2009
23 December 2014
31 March 2011
31 March 2016
24 November 2011
31 October 2014
23 December 2011
1 December 2014
24 May 2012
15 January 2013
4 December 2012
31 May 2015
1 December 2014
4 December 2016
$0.30
$0.45
$0.31
$0.20
$0.20
$0.20
$0.20
375,000
570,000
3,500,000
32,789,218
1,000,000
3,000,000
200,000
41,434,218
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.
P a g e | 21
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
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 enacted National Greenhouse and Energy Reporting Act 2007 (the NGER Act) which
introduced 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 has 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
During the year ended 30 June 2013, taxation consulting services were provided to the Company by a party related to the
auditors, Bentleys. These services amounted to $10,150 (2012: $2,800). Details of remuneration paid to the auditor can
be found within the financial statements at Note 6 Auditor’s Remuneration on page 48.
The Directors are satisfied that the provision of non-audit services during the year by Bentleys (or by another person or
firm on Bentley's behalf is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001 (Cth).
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 2013 has been received and can be found on
page 27 of the annual report.
P a g e | 22
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
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 described in the following paragraphs.
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. From 1 July 2013 the superannuation guarantee
contribution required by the government will be increased to 9.25%.
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 Key Management Personnel Compensation on page 46 of the financial statements.
A resolution that the remuneration report for the last financial year to be adopted was put to the vote at the Company's most
recent AGM, held 27 November 2012. At least 25% of the votes cast were against adoption of that report. Accordingly, the
Board has undertaken the following actions in response to the "no" vote:
An in-depth review of the Company’s Board structure and ongoing Board requirements was conducted, resulting in the
following:
On 12 July 2013, Messrs Stephenson, O'Loughlin, and Junk stepped down as non-executive directors.
On 13 July 2013, Mr. Peter Reeve was appointed as chairman of Aura Energy Limited, with Mr. Fraser retiring to a
non-executive role.
Engaged the Managing Director on a full-time basis, securing his commitment exclusively to the Aura Group, to better
serve the Group’s interests;
P a g e | 23
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
B. Remuneration Details for the Year Ended 30 June 2013
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:
2013
Group Key
Management
Personnel
Brett Fraser(1)(5)
Bob Beeson(4)(5)
Jay Stephenson(1)
Salary, fees
and leave
$
60,000
239,388
55,000
Simon O’Loughlin
55,000
Leigh Junk
Jules Perkins(2)
James Merrillees(3)
55,000
55,000
-
519,388
2012
Group Key
Management
Personnel
Brett Fraser(1)(5)
Bob Beeson(4)(5)
Jay Stephenson(1)
Salary, fees
and leave
$
60,000
165,000
55,000
Simon O’Loughlin
55,000
Leigh Junk
Jules Perkins(2)
James Merrillees(3)
55,000
55,000
-
445,000
Short-term benefits
Long-term
benefits
Equity-settled share-
based payments
Total
Other
Equity
Options
Compen-
sation
consisting of
options
Post-
employment
benefits
Super-
annuation
$
Non-
monetary
$
Other
$
-
-
-
-
-
-
-
-
1,200
5,400
2,400
15,525
1,200
-
-
31,315
118,865
4,950
4,950
4,950
4,950
-
154,980
40,725
Profit share
and bonuses
$
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
$
$
%
62,234
128,834
48.31%
82,979
340,292
24.38%
-
-
-
-
-
61,150
59,950
59,950
91,265
118,865
-
-
-
-
-
145,213
860,306
16.88%
Short-term benefits
Profit share
and bonuses
$
-
-
-
-
-
-
-
-
Non-
monetary
$
-
-
-
-
-
-
-
-
Post-
employment
benefits
Super-
annuation
$
5,400
14,850
4,950
4,950
4,950
4,950
-
Other
$
-
-
-
-
-
51,625
207,951
259,576
40,050
Long-term
benefits
Equity-settled share-
based payments
Total
Other
Equity
Options
Compen-
sation
consisting
of options
$
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
$
$
%
93,139
158,539
58.75%
124,186
304,036
40.85%
-
-
-
-
-
59,950
59,950
59,950
111,575
207,951
-
-
-
-
-
217,325
961,951
22.59%
1 Wolfstar Group Pty Ltd, a company controlled by Messrs Fraser and Stephenson, provides financial services and Company Secretarial
services to Aura Energy Limited. These services are provided indirectly by Messrs Fraser and Stephenson and have therefore not been
included in remuneration. Please refer to Note 21 Related Party Transactions on page 56 for further details.
2 Amounts paid to the RRI Trust are in respect to metallurgical consulting provided directly by Mr. Perkins.
3 Mr. Merrillees was employed as Exploration Manager by Drake Resources Limited, which recharged his salary pro rata for the current year
on a time basis of hours charge to the Aura Group.
4 From February 2013, Dr. Beeson ceased acting as a dual Managing Director for Aura Energy and Drake Resources, and became solely
employed by Aura Energy in this role.
5 An expense was raised in the year for options issued in prior periods, in accordance with their vesting conditions. Refer part D Share-based
compensation
P a g e | 24
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
C. Service Agreements
The Managing Director, Dr. Robert Beeson, is employed under a deed of employment, effective 1 January 2013.
The employment deed stipulates a four weeks' resignation period. The Company may terminate the employment deed
without cause by providing four weeks' written notice, or making payment in lieu of notice based on the individual’s annual
salary component.
If employment is terminated other than for serious misconduct, and the Employee is not then otherwise in default of deed
and his employment, the Managing Director will, in connection with his retirement from the Office, receive in addition to the
required four weeks' notice period, three months' salary. An additional benefit may be paid in the amount of one month for
every year of service. This is subject to the provisions of the Corporations Act 2001 (Cth), which may require shareholder
approval.
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
There were no Director options issued during the 2013 financial year. An expense was raised in the year for options issued in
prior periods, in accordance with their vesting conditions.
On 24 November 2011, 3,500,000 share options were granted to directors to take up ordinary shares at an exercise price of
$0.31 each. The options are exercisable on or before 31 October 2014.
Share-based Payments
The terms and conditions relating to options granted as remuneration during the year to Directors and Key Management
Personnel are as follows:
Group Key
Management
Personnel
Grant date
Grant value
$
Reason for
Grant
Vesting date
Percentage
vested during
year
%
(Note 2)
Percentage
forfeited
during year
%
Percentage
remaining as
unvested
%
Expiry date
Range of
possible
values
relating to
future
payments
Brett Fraser
Bob Beeson
24 November
2011
24 November
2011
154,950
Note 1
206,600
Note 1
24 November
2012
24 November
2012
40
40
-
-
-
-
31 October
2014
31 October
2014
-
-
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:
Director options will vest 12 months after the issue date.
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.
Note 2
The monetary 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.
Details of all Share-Based Payments in existence during the year can be found at Note 19 Share-Based Payments on page 54.
P a g e | 25
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
D. Share-based compensation (cont.)
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
Entitlement on exercise
Dates exercisable
24 November 2011 Aura Energy Limited 1:1 Ordinary Shares in
Aura Energy Limited
From vesting date to 31
October 2014 (expiry)
Amount paid/
Value per option
payable by
Exercise price
$
at grant date
$
recipient
$
$0.31
$0.1033
-
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 within the financial
statements at Note 19 Share-Based Payments on page 54.
END OF REMUNERATION REPORT
This Report of the Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of directors
made pursuant to s.298(2) of the Corporations Act 2001 (Cth).
PETER REEVE
Chairman
Dated this 27th day of September 2013
P a g e | 26
To The Board of Directors
Auditor’s Independence Declaration under Section 307C of the
Corporations Act 2001
As lead audit director for the audit of the financial statements of Aura Energy Limited for
the financial year ended 30 June 2013, I declare that to the best of my knowledge and
belief, there have been no contraventions of:
the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
any applicable code of professional conduct in relation to the audit.
Yours faithfully
BENTLEYS
Chartered Accountants
DOUG BELL CA
Director
DATED at PERTH this 27th day of September 2013
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2013
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
Revenue
Other income
Project partnering and divestment
Accounting and audit fees
Business development
Computers and communications
Depreciation
Employee benefits
Finance Costs
Impairment
Insurance
Legal and consulting fees
Public relations
Rent and utilities
Share-based payments
Share registry and listing fees
Travel and accommodation
Exploration expenditure written-off
Other expenses
Loss before income tax
Income tax benefit
Loss from continuing operations
Note
2
2
19
11
3
4
2013
$
26,421
4,736
31,157
(334,395)
(142,228)
(6,051)
(54,041)
(14,610)
2012
$
113,762
22,898
136,660
-
(146,157)
(14,781)
(23,634)
(15,026)
(760,773)
(684,738)
(755)
(11,388)
(52,740)
(98,706)
(137,892)
(154,124)
(152,765)
(61,527)
(51,937)
(1,747,939)
(83,005)
-
-
(36,960)
(328,552)
(233,828)
(111,441)
(294,599)
(87,566)
(81,988)
(438,769)
(131,965)
(3,833,719)
(2,493,344)
1,077,378
149,894
(2,756,341)
(2,343,450)
Other comprehensive income, net of income tax
Items that will not be reclassified subsequently to profit or loss
-
-
Items that may be reclassified subsequently to profit or loss:
Foreign currency movement
Other comprehensive income for the year, net of tax
830,674
830,674
(14,688)
(14,688)
Total comprehensive income attributable to members of the
parent entity
(1,925,667)
(2,358,138)
Earnings per share:
Basic loss per share (cents per share)
7
₵
(1.65)
₵
(1.62)
The accompanying notes form part of these financial statements.
P a g e | 28
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2013
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Exploration and evaluation assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Short-term provisions
Borrowings
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
8
9
10
11
12
13
14
15
16
2013
$
2,012,295
102,926
2012
$
1,725,512
244,949
2,115,221
1,970,461
9,694
21,943
15,016,416
14,714,507
15,026,110
14,736,450
17,141,331
16,706,911
410,672
133,012
31,136
574,820
442,681
43,323
-
486,004
574,820
486,004
16,566,511
16,220,907
27,759,558
25,723,535
1,426,258
579,036
(12,619,305)
(10,081,664)
16,566,511
16,220,907
The accompanying notes form part of these financial statements.
P a g e | 29
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2013
Issued
Capital
Accumulated
Losses
$
$
Options
Reserve
$
Foreign
Exchange
Translation
Reserve
$
Total
$
Balance at 1 July 2011
21,074,083
(7,930,934)
955,639
(32,244)
14,066,544
Loss for the year
Other comprehensive income for the
year
Total comprehensive income for the
year
Transaction with owners, directly in
equity
-
-
-
(2,343,450)
-
(2,343,450)
Shares issued during the year
Transaction costs
3,420,460
(239,383)
-
-
-
-
-
-
-
Options expired during the year
-
192,720
(192,720)
Options exercised during the year
1,468,375
(431,550)
Options issued during the year
-
-
294,599
-
(2,343,450)
(14,688)
(14,688)
(14,688)
(2,358,138)
-
-
-
-
-
3,420,460
(239,383)
-
1,036,825
294,599
Balance at 30 June 2012
25,723,535
(10,081,664)
625,968
(46,932)
16,220,907
Balance at 1 July 2012
25,723,535
(10,081,664)
625,968
(46,932)
16,220,907
Loss for the year
Other comprehensive income for the
year
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 exercised during the year
Options issued during the year
-
-
-
(2,756,341)
-
(2,756,341)
2,165,771
(129,748)
-
-
-
-
-
-
-
-
-
-
218,700
(218,700)
-
-
-
235,248
-
(2,756,341)
830,674
830,674
830,674
(1,925,667)
-
-
-
-
-
2,165,771
(129,748)
-
-
235,248
Balance at 30 June 2013
27,759,558
(12,619,305)
642,516
783,742
16,566,511
The accompanying notes form part of these financial statements.
P a g e | 30
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Interest received
Interest and borrowing costs
Payments to suppliers and employees
Payments for exploration expenditure
Rebate received for Research and Development
Note
2013
$
2012
$
843
25,578
(4,059)
19,088
101,123
-
(1,656,554)
(1,999,082)
(1,202,076)
(3,552,137)
1,077,378
149,894
Net cash used in operating activities
18(a)
(1,758,890)
(5,281,114)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of plant and equipment
Repay loan for acquisition of subsidiary
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 increase/(decrease) in cash held
Cash at 1 July
Change in foreign currency held
(2,361)
-
(2,361)
(10,036)
(491,014)
(501,050)
2,055,338
4,457,285
(21,732)
(239,383)
2,033,606
4,217,902
272,355
(1,564,262)
1,725,512
3,289,774
14,428
-
Cash at 30 June
8
2,012,295
1,725,512
The accompanying notes form part of these financial statements.
P a g e | 31
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
These are 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.
The separate financial statements of the parent entity, Aura Energy Limited, have not been presented with this financial report
as permitted by the Corporations Act 2001 (Cth).
Statement of Compliance
The financial statements are general purpose financial statements that have 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 (Cth).
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 as issued by the IASB. Material accounting policies adopted in the preparation of these financial
statements are presented below. They have been consistently applied unless otherwise stated.
The financial statements were authorised for issue on 25 September 2013 by the directors of the Company.
Basis of Preparation
The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable,
by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
Going Concern
The financial statements have been prepared on a going concern basis, which contemplates the continuity of normal business
activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.
The Group incurred a loss for the year of $2,756,341 (2012: $2,343,450 loss) and a net cash in-flow of $272,355 (2012:
$1,564,262 out-flow)
As at 30 June 2013, the Group had working capital of $1,540,401 (2012: $1,484,457 working capital).
The ability of the Group to continue as a going concern is principally dependent upon the ability of the Group to secure funds
by raising capital from equity markets or by other means, and by managing cash flows in line with available funds, and / or the
successful development of the Group's exploration assets. Should the above matters not be achieved; the Group will be
required to raise funds for working capital from debt or equity sources. These conditions indicate a material uncertainty that
may cast doubt about the ability of the Group to continue as a going concern.
Based upon cash flow forecasts and other factors referred to above, the directors are satisfied that the going concern basis of
preparation is appropriate, including the meeting of exploration commitments. In addition, given the Group's history of raising
funds to date, the directors are confident of the Group's ability to raise additional funds as and when they are required.
Should the Group be unable to continue as a going concern it may be required to realise its assets and extinguish its liabilities
other than in the normal course of business and at amounts different to those stated in the financial statements.
The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying
amounts or to the amount and classification of liabilities that might result should the Group be unable to continue as a going
concern and meet its debts as and when they fall due.
(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 17 Controlled Entities on
page 53 of 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.
P a g e | 32
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
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).
Business Combinations
Business combinations occur when an acquirer obtains control over one or more businesses.
A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or
businesses under common control. The business combination will be accounted for from the date that control is attained,
whereby the fair value of the identifiable assets acquire and liabilities (including contingent liabilities) assumed is
recognised (subject to certain limited exemptions).
When measuring the consideration transferred in the business combination, any asset or liability resulting from a
contingent consideration arrangement is also included. Subsequent to initial recognition, contingent consideration
classified as an asset or liability is remeasured each reporting period to fair value, recognising any change to fair value in
profit or loss, unless the change in value can be identified as existing at acquisition date.
All transaction costs incurred in relation to the business combination are expensed to the statement of profit or loss and
comprehensive income.
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.
(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 will be amortised over the life of the
area according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in
relation to that area of interest.
Costs of site restoration will be provided over the life of the project, when such costs are incurred or the Group becomes
liable for, from when exploration commences and are included in the costs of that stage. Site restoration costs will 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.
P a g e | 33
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to
items recognised outside profit or loss.
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.
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.
Where the Group receives the Australian Government's Research and Development Tax Incentive, The Group accounts for
the refundable tax offset under AASB 112. Funds are received as a rebate through the parent company’s income tax return
and disclosed as such in Note 4 Income Tax, on page 44.
(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:
Plant and equipment
Computers
Motor Vehicles
20%
33%
25%
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
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.
P a g e | 34
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
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.
(e) Employee Benefits
Provision is made for the Company’s liability for employee benefits arising from services rendered by employees to the end
of the reporting period. 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.
Gain on disposal of tenements, and revenue from equipment chargebacks, are recognised on receipt of compensation.
All revenue is stated net of the amount of value added taxes (see Note 1(h) Value Added Taxes).
(h) Value Added Taxes
Value-added taxes (VAT) is the generic term for the broad-based consumption taxes that the Group is exposed to such as:
Australia (GST); Sweden (MOMS); and in Mauritanian (VAT).
Revenues, expenses, and assets are recognised net of the amount of VAT, except where the amount of VAT incurred is not
recoverable from the relevant country's taxation authority. In these circumstances the VAT 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 VAT.
Cash flows are presented in the statement of cash flows on a gross basis, except for the VAT 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, are transferred to entities in the Group are classified as finance leases.
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.
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.
P a g e | 35
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
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.
Classification and Subsequent Measurement
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.
Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.
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 the end of each reporting period, 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 any impairment has arisen. Impairment losses are recognised in the profit or loss. Also,
any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at
this point.
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 or loss attributable to equity holders of the parent 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.
ii. Diluted earnings per share
The Group does not report diluted earnings per share, as dilution is not applied to annual losses generated by the Group.
(l) Impairment of Assets
At the end of each reporting period, 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 recognised immediately to profit or loss.
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.
P a g e | 36
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(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 Group operates an employee share ownership scheme. Share-based payments to employees are measured at the fair
value of the instruments issued and amortised over the vesting periods. Share-based payments to non-employees are
measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined
the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are
received. The corresponding amount is recorded to the option reserve. The fair value of options is determined using the
Black-Scholes pricing model. The number of shares and options expected to vest is reviewed and adjusted at the end of
each reporting period such that the amount recognised for services received as consideration for the equity instruments
granted is based on the number of equity instruments that eventually vest.
(p) Comparative Figures
Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation
for the current financial year.
(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 profit or loss 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 other comprehensive
income to the extent that the gain or loss is directly recognised in other comprehensive income, otherwise the exchange
difference is recognised in the profit or loss.
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 profit or loss in the period
in which the operation is disposed.
P a g e | 37
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(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 reporting 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 $15,016,416.
During the financial year, the Group undertook assessment of its tenement assets, As a result of this assessment, the Group
decided to impair some of its exploration assets. Refer Note 11 Exploration And Evaluation Assets on page 50.
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 is 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 tax authorities in relevant jurisdictions. Refer Note 4 Income Tax on page 44.
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.
Key Estimate – Share-based payments
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by an internal valuation using a Black-
Scholes option pricing model, using the assumptions detailed in Note 19 Share-Based Payments on page 54.
(s) New and Amended Standards Adopted by the Group
AASB 2011-9: Amendments to AASB 101 Presentation of Items of Other Comprehensive Income (issued September
2011)
Applicable for annual reporting periods commencing on or after 1 July 2012.
AASB 2011-9 requires entities to group items presented in Other Comprehensive Income (OCI) on the basis of
whether they are potentially re-classifiable to profit or loss subsequently, and changes the title of ‘statement of
comprehensive income’ to ‘statement of profit or loss and other comprehensive income’.
The adoption of the new and revised Australian Accounting Standards and Interpretations has had no significant
impact on the Group’s accounting policies or the amounts reported during the current half-year period. The adoption
of AASB 2011-9 has resulted in changes to the Group’s presentation of its financial statements.
P a g e | 38
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(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 and which the Group has decided not to early adopt. A discussion of those future requirements
and their impact on the Group is as follows:
AASB 9: Financial Instruments (issued December 2009 and amended December 2010)
Applicable for annual reporting periods commencing on or after 1 January 2015.
AASB 9 introduces new requirements for the classification and measurement of financial assets and liabilities.
These requirements improve and simplify the approach for classification and measurement of financial assets
compared with the requirements of AASB 139. The main changes are:
(a) Financial assets that are debt instruments will be classified based on (1) the objective of the entity’s business
model for managing the financial assets; and (2) the characteristics of the contractual cash flows.
(b) Allows 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 (instead of in profit or loss). 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.
(c) Financial assets can be designated and measured at fair value through profit or loss at initial recognition if doing
so eliminates or significantly reduces a measurement or recognition inconsistency that would arise from
measuring assets or liabilities, or recognising the gains and losses on them, on different bases.
(d) Where the fair value option is used for financial liabilities the change in fair value is to be accounted for as
follows:
The change attributable to changes in credit risk are presented in other comprehensive income (OCI); and
The remaining change is presented in profit or loss.
If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the changes in
credit risk are also presented in profit or loss.
Otherwise, the following requirements have generally been carried forward unchanged from AASB 139 into AASB 9:
Classification and measurement of financial liabilities; and
Derecognition requirements for financial assets and liabilities.
Consequential amendments arising from AASB 9 are contained in AASB 2010-7 Amendments to Australian Accounting
Standards arising from AASB 9 (December 2010), AASB 2010-10 Further Amendments to Australian Accounting
Standards – Removal of Fixed Dates for First-time Adopters and AASB 2012-6 Amendments to Australian Accounting
Standards – Mandatory Effective Date of AASB 9 and Transition Disclosures.
The Group does not have any financial liabilities measured at fair value through profit or loss. Therefore, there will be
no impact on the financial statements when these amendments to AASB 9 are first adopted.
AASB 10: Consolidated Financial Statements (issued August 2011)
Applicable for annual reporting periods commencing on or after 1 January 2013.
AASB 10 establishes a revised control model that applies to all entities. It replaces the consolidation requirements in
AASB 127 Consolidated and Separate Financial Statements and AASB Interpretation 112 Consolidation – Special
Purpose Entities.
The revised control model broadens the situations when an entity is considered to be controlled by another entity
and includes additional guidance for applying the model to specific situations, including when acting as an agent may
give control, the impact of potential voting rights and when holding less than a majority voting rights may give ‘de
facto’ control. This is likely to lead to more entities being consolidated into the group.
When this standard is first adopted for the year ended 30 June 2014, there will be no impact on the transactions and
balances recognised in the financial statements.
P a g e | 39
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
AASB 11: Joint Arrangements (issued August 2011)
Applicable for annual reporting periods commencing on or after 1 January 2013.
AASB 11 replaces AASB 131 Interests in Joint Ventures and AASB Interpretation 113 Jointly- controlled Entities – Non-
monetary Contributions by Ventures. AASB 11 uses the principle of control in AASB 10 to define joint control, and
therefore the determination of whether joint control exists may change. In addition, AASB 11 removes the option to
account for jointly-controlled entities (JCEs) using proportionate consolidation. Instead, accounting for a joint
arrangement is dependent on the nature of the rights and obligations arising from the arrangement. Joint operations
that give the venturers a right to the underlying assets and obligations for liabilities are accounted for by recognising
the share of those assets and liabilities. Joint ventures that give the venturers a right to the net assets are accounted
for using the equity method.
When this standard is first adopted for the year ended 30 June 2014, there will be no impact on transactions and
balances recognised in the financial statements because the Group has no arrangements crystallised into joint
arrangements and require reporting as such.
AASB 12: Disclosure of Interests in Other Entities (issued August 2011)
Applicable for annual reporting periods commencing on or after 1 January 2013.
AASB 12 includes all disclosures relating to an entity’s interests in subsidiaries, joint arrangements, associates and
structured entities. New disclosures introduced by AASB 12 include disclosures about the judgements made by
management to determine whether control exists, and to require summarised information about joint arrangements,
associates and structured entities and subsidiaries with non-controlling interests.
As this is a disclosure standard only, there will be no impact on amounts recognised in the financial statements.
However, additional disclosures will be required for interests in associates and joint arrangements, as well as for
unconsolidated structured entities.
AASB 127: Separate Financial Statements and AASB 128: Investments in Associates and Joint Ventures
Applicable for annual reporting periods commencing on or after 1 January 2013.
As a consequence of issuing AASB 10, AASB 11 and AASB 12, revised versions of AASB 127 and AASB 128 have also
been issued.
AASB 127 now only deals with separate financial statements. AASB 128 incorporates the requirements in
Interpretation 113 Jointly Controlled Entities – Non-Monetary Contributions by Venturers, and guidance relating to the
equity method for associates and joint ventures.
When these revised standards are adopted for the first time for the financial year ending 30 June 2014, there will be
no impact on the financial statements because they introduce no new requirements.
AASB 13: Fair Value Measurement (issued September 2011)
Applicable for annual reporting periods commencing on or after 1 January 2013.
AASB 13 establishes a single source of guidance for determining the fair value of assets and liabilities. AASB 13 does
not change when an entity is required to use fair value, but rather, provides guidance on how to determine fair value
when fair value is required or permitted by other Standards.
AASB 13 also expands the disclosure requirements for all assets or liabilities carried at fair value. This includes
information about the assumptions made and the qualitative impact of those assumptions on the fair value
determined.
When this standard is first adopted for the year ended 30 June 2014, additional disclosures will be required about fair
values.
P a g e | 40
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
AASB 2011-4: Amendments to AASB 124 to Remove Individual Key Management Personnel Disclosure Requirements
(issued July 2011)
Applicable for annual reporting periods commencing on or after 1 July 2013.
The Standard amends AASB 124 Related Party Disclosures to remove the individual key management personnel (KMP)
disclosures required by Australian specific paragraphs. This amendment reflects the AASB’s view that these
disclosures are more in the nature of governance disclosures that are better dealt within the legislation, rather than
by the accounting standards.
In March 2013, the Australian government released Corporations Legislation Amendment Regulation 2013 which
proposed to insert these disclosures into Corporations Regulations 2001 to ensure disclosure requirements continue
to be operative for financial years commencing on or after 1 July 2013.
When these amendments are first adopted for the year ending 30 June 2014, they are unlikely to have any significant
impact on the Group.
AASB 2011-7: Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements
Standards
Applicable for annual reporting periods commencing on or after 1 January 2013.
AASB 2011-7 makes various consequential amendments to Australian Accounting Standards arising from AASB 10,
AASB 11, AASB 12, AASB 127 (August 2011) and AASB 128 (August 2011).
When these amendments are first adopted for the year ending 30 June 2014, they are unlikely to have any significant
impact on the Group given that they are largely of the editorial nature.
AASB 119: Employee Benefits (September 2011)
Applicable for annual reporting periods commencing on or after 1 January 2013.
Main changes include:
Elimination of the ‘corridor’ approach for deferring gains/losses for defined benefit plans
Actuarial gains/losses on remeasuring the defined benefit plan obligation/asset to be recognised in OCI rather
than in profit or loss, and cannot be reclassified in subsequent periods
Subtle amendments to timing for recognition of liabilities for termination benefits
Employee benefits ‘expected to be settled’ (as opposed to ‘due to be settled’ under current standard) within 12
months after the end of the reporting period are short-term benefits, and therefore not discounted when
calculating leave liabilities. Annual leave not expected to be used within 12 months of end of reporting period
will in future be discounted when calculating leave liability.
Consequential amendments were also made to other standards via AASB 2011-10.
The Group does not have any defined benefit plans. Therefore, these amendments will have no significant impact on
the Group.
Interpretation 20: Stripping Costs in the Production Phase of a Surface Mine (issued November 2011)
Applicable for annual reporting periods commencing on or after 1 January 2013.
This interpretation clarifies that costs of removing mine waste materials (overburden) to gain access to mineral ore
deposits during the production phase of a mine must be capitalised as inventories under AASB 102 Inventories if the
benefits from stripping activity is realised in the form of inventory produced. Otherwise, if stripping activity provides
improved access to the ore, stripping costs must be capitalised as a non-current, stripping activity asset if certain
recognition criteria are met (as an addition to, or enhancement of, an existing asset).
As the Group does not currently operate a surface mine, there will be no impact on the financial statements when this
interpretation is first adopted.
P a g e | 41
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
AASB 2012-2: Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and
Financial Liabilities
Applicable for annual reporting periods commencing on or after 1 January 2013.
This Standard amends the required disclosures in AASB 7 to include information that will enable users of an entity’s
financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off
associated with the entity’s recognised financial assets and recognised financial liabilities, on the entity’s financial
position.
This Standard also amends AASB 132 to refer to the additional disclosures added to AASB 7 by this Standard.
When this AASB 2012-2 is first adopted for the year ended 30 June 2014, there will be no impact on the Group as the
Group does not have any netting arrangements in place.
AASB 2012-3: Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities
Applicable for annual reporting periods commencing on or after 1 January 2014.
AASB 2012-3 adds application guidance to AASB 132 to address inconsistencies identified in applying some of the
offsetting criteria of AASB 132, including clarifying the meaning of “currently has a legally enforceable right of set-off”
and that some gross settlement systems may be considered equivalent to net settlement.
When AASB 2012-3 is first adopted for the year ended 30 June 2015, there will be no impact on the Group as this
standard merely clarifies existing requirements in AASB 132.
AASB 2012-5: Amendments to Australian Accounting Standards arising from Annual Improvements 2009–2011 Cycle
Applicable for annual reporting periods commencing on or after 1 January 2013.
These amendments are a consequence of the annual improvements process, which provides a vehicle for making
non-urgent but necessary amendments to Standards.
The amendments made are largely of the nature of clarifications or removals of unintended inconsistencies between
Australian Accounting Standards (for example, AASB 101 is amended to clarify that related notes to an additional
statement of financial position are not required in the event of a change in accounting policy, reclassification or
restatement).
When these amendments are first adopted for the year ended 30 June 2014, they are unlikely to have any significant
impact on the entity given that they are largely of the nature of clarifications or removals of unintended
inconsistencies between Australian Accounting Standards.
AASB 2012-10: Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments
Applicable for annual reporting periods commencing on or after 1 January 2013.
AASB 2012-10 clarifies the transition guidance in AASB 10 Consolidated Financial Statements.
It also provides additional transition relief in AASB 10, AASB 11 Joint Arrangements and AASB 12 Disclosure of
Interests in Other Entities by limiting the requirement to provide adjusted comparative information only to the
immediately preceding comparative period. In addition, for disclosures related to unconsolidated structured entities,
AASB 2012-10 removes the requirement to present comparative information for any periods beginning before the
first annual reporting period for which AASB 12 is applied.
Furthermore, AASB 2012-10 defers the mandatory effective date of AASB 10, AASB 11, AASB 12, AASB 127 Separate
Financial Statements (August 2011) and AASB 128 Investments in Associates and Joint Arrangements (August 2011)
for not-for-profit entities from 1 January 2013 to 1 January 2014.
P a g e | 42
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 2 REVENUE AND OTHER INCOME
Revenue:
Interest received from financial institutions
Management fees
Total Revenue
Other Income
Foreign exchange gain
Equipment charge-backs
Total Other Income
NOTE 3 LOSS BEFORE INCOME TAX
2013
$
25,578
843
26,421
4,736
-
4,736
2013
$
2012
$
101,123
12,639
113,762
18,186
4,712
22,898
2012
$
The following significant revenue and (expense) items are relevant in explaining
the financial performance:
Superannuation expense
(65,642)
(45,544)
P a g e | 43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 4
INCOME TAX
(a) Income tax expense / (benefit)
Current tax
Deferred tax
Tax rebate for Research and Development
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
Note
2013
$
2012
$
-
-
-
-
(1,077,378)
(149,894)
(1,077,378)
(149,894)
Deferred income tax expense included in income tax expense comprises:
Increase / (decrease) in deferred tax assets
(Increase) / decrease in deferred tax liabilities
4(c)
4(d)
99,219
(99,219)
12,664
(12,664)
-
-
(b) Reconciliation of income tax expense to prima facie tax payable
The prima facie tax payable / (benefit) on loss from ordinary activities
before income tax is reconciled to the income tax expense as follows:
Prima facie tax on operating loss at 30% (2012: 30%)
(1,150,116)
(748,003)
Add / (Less)
Tax effect of:
Capital-raising costs deductible
Capitalised Australian Exploration and Evaluation expenditure
Share-based payments
Write-off of exploration assets
Other
Deferred tax asset not brought to account
Income tax expense / (benefit) attributable to operating loss
Less rebates:
(65,487)
(16,791)
45,830
532,956
-
653,608
-
(55,866)
(35,841)
88,380
131,622
(14,509)
634,217
-
Tax rebate for Research and Development
(1,077,378)
(149,894)
Income tax expense / (benefit)
(1,077,378)
(149,894)
The applicable weighted average effective tax rates attributable to
operating profit are as follows
Balance of franking account at year end
%
nil
$
nil
%
Nil
$
nil
P a g e | 44
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 4
INCOME TAX (cont.)
(c) Deferred tax assets
Tax losses
Provisions and accruals
Other
Set-off deferred tax liabilities
Net deferred tax assets
Less deferred tax assets not recognised
Net tax assets
(d) Deferred tax liabilities
Exploration expenditure
Set-off deferred tax assets
Net deferred tax liabilities
(e) Tax losses
Unused tax losses for which no deferred tax asset has been recognised,
that may be utilised to offset tax liabilities:
Revenue losses
Capital losses
Note
2013
$
2012
$
2,755,968
2,148,537
72,406
173,659
21,247
210,885
3,002,033
2,380,669
4(d)
(279,000)
(378,219)
2,723,033
2,002,450
(2,723,033)
(2,002,450)
-
-
279,000
279,000
378,219
378,219
4(c)
(279,000)
(378,219)
-
-
9,076,778
6,674,833
691,104
691,104
9,767,882
7,365,937
Potential deferred tax assets attributable to tax losses and exploration expenditure carried forward have not been brought to
account at 30 June 2013 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 Group 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 Group in realising the benefit from the deductions for the loss and
exploration expenditure.
P a g e | 45
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 5 KEY MANAGEMENT PERSONNEL COMPENSATION
(a) Key management personnel ("KMP") compensation
The names are positions of KMP are as follows:
Chairman (1)
Managing Director
Non-executive Director (2)
Non-executive Director (2)
Non-executive Director (2)
Non-executive Director
Brett Fraser
Robert (Bob) Beeson
Simon O’Loughlin
Jay Stephenson
Leigh Junk
Julian (Jules) Perkins
James Merrillees
Exploration Manager
(1)
Stepped down as Chairman 13 July 2013, remained non-executive
(2 )
Resigned as director 12 July 2013
The totals of remuneration paid to KMP during the year are as follows:
Short-term employee benefits
Post-employment benefits
Share-based payments
Other long term benefits
Termination benefits
Total
2013
$
674,368
40,725
145,213
-
-
2012
$
704,576
40,050
217,325
-
-
860,306
961,951
Refer to the Remuneration Report contained in the Director’s Report on page 23 for details of the remuneration paid to each
member of the Group’s KMP for the year ended 30 June 2013.
(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:
30 June 2013
Granted as
Balance at
remuneration
Exercised
Other changes
Balance at
Vested and
start of year
during the year
during the year
during the year
end of year
exercisable
Directors of Aura Energy Limited
Brett Fraser
Robert Beeson
Jay Stephenson
Simon O’Loughlin
Leigh Junk
Julian Perkins
Other KMP
1,076,579
2,270,710
1,013,368
125,000
125,000
56,667
James Merrillees
64,167
4,731,491
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,076,579
1,076,579
2,270,710
2,270,710
1,013,368
1,013,368
125,000
125,000
56,667
125,000
125,000
56,667
64,167
64,167
4,731,491
4,731,491
P a g e | 46
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 5 KEY MANAGEMENT PERSONNEL COMPENSATION (cont.)
30 June 2012
Granted as
Balance at
remuneration
Exercised
Other changes
Balance at
Vested and
start of year
during the year
during the year
during the year
end of year
exercisable
Directors of Aura Energy Limited
Brett Fraser
1,000,000
1,500,000
(1,000,000)
(423,421)
1,076,579
Robert Beeson
1,500,000
2,000,000
(1,500,000)
270,710
2,270,710
Jay Stephenson
Simon O’Loughlin
Leigh Junk
Julian Perkins
Other KMP
1,000,000
1,000,000
-
50,000
James Merrillees
50,000
-
-
-
-
-
(1,000,000)
1,013,368
1,013,368
(1,000,000)
-
-
-
125,000
125,000
6,667
125,000
125,000
56,667
14,167
64,167
4,600,000
3,500,000
(4,500,000)
1,131,491
4,731,491
-
-
-
-
-
-
50,000
50,000
(ii)
Shareholdings
The number of ordinary shares in Aura Energy Limited held by each KMP of the Group during the financial year is as follows:
30 June 2013
Received during
Received during
Balance at
the year as
the year on the
start of year
compensation
exercise of options
Other changes
during the year (1)
Balance at
end of year
Directors of Aura Energy Limited
Brett Fraser
Robert Beeson
Jay Stephenson
Simon O’Loughlin
Leigh Junk
Julian Perkins
Other KMP
2,286,040
2,069,960
1,843,567
993,112
875,000
106,667
James Merrillees
99,167
8,273,513
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
200,000
187,500
37,500
-
62,500
133,333
2,486,040
2,257,460
1,881,067
993,112
937,500
240,000
-
99,167
620,833
8,894,346
P a g e | 47
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 5 KEY MANAGEMENT PERSONNEL COMPENSATION (cont.)
30 June 2012
Received during
Received during
Balance at
the year as
the year on the
start of year
compensation
exercise of options
Other changes
during the year (1)
Balance at
end of year
Directors of Aura Energy Limited
Brett Fraser
Robert Beeson
Jay Stephenson
Simon O’Loughlin
Leigh Junk
Julian Perkins
Other KMP
1,641,200
1,299,250
1,355,200
768,112
750,000
-
James Merrillees
250,000
6,063,762
-
-
-
-
-
-
-
-
1,000,000
1,500,000
1,000,000
1,000,000
-
-
-
(355,160)
(729,290)
(511,633)
(775,000)
125,000
106,667
2,286,040
2,069,960
1,843,567
993,112
875,000
106,667
(150,833)
99,167
4,500,000
(2,290,249)
8,273,513
(1) Other changes during the year relate to shares purchased or sold on market.
(c) Loans to key management personnel
There are no loans made to directors of Aura Energy as at 30 June 2013.
(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 21 Related party transactions on page 56.
NOTE 6 AUDITOR’S REMUNERATION
Remuneration of the auditor of the Group for:
Auditing or reviewing the financial reports
Taxation services provided by a related practice of the auditor
NOTE 7 EARNINGS PER SHARE
(a)
Reconciliation of earnings to net profit or loss
2013
$
34,950
10,150
45,100
2013
$
2012
$
39,000
2,800
41,800
2012
$
Profit / (Loss) used in the calculation of basic EPS
(2,756,341)
(2,343,450)
(b) Weighted average number of ordinary shares outstanding during the
year used in calculation of basic EPS
166,669,039
144,452,555
Basic and diluted earnings per share (cents per share)
There are 41,434,218 (2012: 39,934,218) unissued shares under option which are anti-dilutive.
₵
₵
(1.65)
(1.62)
P a g e | 48
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 8 CASH AND CASH EQUIVALENTS
Cash at bank
Short-term bank deposits
2013
$
2012
$
1,919,517
1,635,325
8(a)
92,778
90,187
2,012,295
1,725,512
(a) The effective interest rate on short-term bank deposits was 3.91% (2012: 4.00%). These deposits have an average
maturity of 9.27 months (2012: 5 months) and relate to environmental bonds due to be refunded by the Western
Australian Government.
NOTE 9 TRADE AND OTHER RECEIVABLES
CURRENT
Value-added tax1 receivable
Trade debtors
Other
Less: Provision for Impairment
1 Value-added tax (VAT) is a generic term for the broad-based consumption taxes that the Group is
exposed to such as: Australia (GST); Sweden (MOMS); and in Mauritanian (VAT).
NOTE 10
PLANT AND EQUIPMENT
NON-CURRENT
Plant and equipment
Accumulated depreciation
Motor vehicles
Accumulated depreciation
Total plant and equipment
(a)
Movements in Carrying Amounts
Balance at the beginning of year
Additions
Depreciation expense
Carrying amount at the end of year
P a g e | 49
2013
$
26,725
52,038
36,167
(12,004)
2012
$
186,531
16,511
41,907
-
102,926
244,949
2013
$
2012
$
182,366
180,005
(172,672)
(158,062)
9,694
62,948
21,943
62,948
(62,948)
(62,948)
-
-
9,694
21,943
21,943
2,361
26,933
10,036
(14,610)
(15,026)
9,694
21,943
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 11
EXPLORATION AND EVALUATION ASSETS
NON-CURRENT
Exploration expenditure capitalised:
Exploration and evaluation phase at cost
Other
Add: Effect of exchange rate changes on exploration and evaluation assets
Less: Exploration expenditure written-off
Net carrying value
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
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
2013
$
2012
$
15,922,505
15,152,108
-
841,850
1,168
-
(1,747,939)
(438,769)
15,016,416
14,714,507
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 jurisdictional equivalent), or contain
sacred sites, or sites of significance to the indigenous people of Australia, Sweden, and Mauritania.
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
Trade payables
Accrued expenses
Other taxes payable
2013
$
2012
$
250,057
108,341
52,274
394,715
27,500
20,466
410,672
442,681
Trade payables are non-interest bearing and usually settled within the lower of terms of trade or 30 days.
NOTE 13
SHORT-TERM PROVISONS
CURRENT
Employee benefits
Provision for Mauritanian Withholding Tax
Number of employees at year end
2013
$
116,311
16,701
2012
$
43,323
-
133,012
43,323
No.
3
No.
2
P a g e | 50
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 14 BORROWINGS
CURRENT
Short-term Borrowings
2013
$
2012
$
31,136
-
Short-term borrowings comprise premium funding for insurance policies, repayable within 12 months.
NOTE 15
ISSUED CAPITAL
Note
2013
$
2012
$
The Company has issued share capital amounting to 183,285,591 (2012:
159,622,540) fully paid ordinary shares at no par value.
15(a)
27,759,558
25,723,535
(a) Ordinary shares
At the beginning of the reporting period
Shares issued during the year:
4,500,000 Shares issued on 1 September 2011
22,798,345 Shares issued on 16 February 2012
6,368 Shares issued on 1 March 2012
2,759 Shares issued on 23 March 2012
9,090,909 Shares issued on 9 November 2012
10,498,750 Shares issued on 20 May 2013
4,073,392 Shares issued on 26 June 2013
Transaction costs relating to share issues
At reporting date
At the beginning of the reporting period
Shares issued during the year:
4,500,000 Shares issued on 1 September 2011
22,798,345 Shares issued on 16 February 2012
6,368 Shares issued on 1 March 2012
2,759 Shares issued on 23 March 2012
9,090,909 Shares issued on 9 November 2012
10,498,750 Shares issued on 20 May 2013
4,073,392 Shares issued on 26 June 2013
At reporting date
25,723,535
21,074,083
-
-
-
-
1,000,000
839,900
325,871
1,466,550
3,420,460
1,273
552
-
-
-
(129,748)
(239,383)
27,759,558
25,723,535
2013
No.
2012
No.
159,622,540
132,315,068
-
-
-
-
4,500,000
22,798,345
6,368
2,759
9,090,909
10,498,750
4,073,392
-
-
-
183,285,591
159,622,540
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.
P a g e | 51
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 15 ISSUED CAPITAL (cont.)
(b) Options
For information relating to the Aura Energy Limited employee options scheme, including details of options issued, issued and
lapsed during the financial year, and the options outstanding at balance date, refer to Note 19 Share-based Payments on page
54 The total number of options on issue are as follows:
Listed options
Unlisted options
(c) Capital Management
2013
No.
2012
No.
35,789,218
32,789,218
5,645,000
7,145,000
41,434,218
39,934,218
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 2013 and 30 June 2012 were as follows:
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Short-term provisions
Short-term borrowings
Working capital position
NOTE 16 RESERVES
Option reserve
Foreign exchange reserve
(a) Option reserve
2013
$
2012
$
2,012,295
1,725,512
102,926
(410,672)
(133,012)
(31,136)
244,949
(442,681)
(43,323)
-
1,540,401
1,484,457
Note
16(a)
16(b)
2013
$
642,516
783,742
2012
$
625,968
(46,932)
1,426,258
579,036
The option reserve records items recognised as expenses on the value of employee and consultant share options.
(b) Foreign Exchange Translation Reserve
The foreign exchange reserve records exchange differences arising on translation of foreign controlled subsidiary.
P a g e | 52
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 17
CONTROLLED ENTITIES
Controlled Entities
Keyano Jack Pty Limited
Aura Energy Sweden AB
Country of
Incorporation
Australia
Sweden
GCM Africa Uranium Limited
United Kingdom
Investments in subsidiaries are accounted for at cost.
Class of
Shares
Ordinary
Ordinary
Ordinary
Percentage Owned
2013
100%
100%
100%
2012
100%
100%
100%
NOTE 18
CASH FLOW INFORMATION
Note
2013
$
2012
$
(a) Reconciliation of Cash Flow from Operations to Loss After Income Tax
Loss after income tax
(2,756,341)
(2,343,450)
152,765
294,599
82,483
14,610
(25,603)
11,388
31,136
-
15,026
(18,186)
-
-
1,747,939
438,739
(1,202,076)
(3,552,136)
135,635
(23,814)
72,988
(94,324)
(46,398)
25,016
(1,758,890)
(5,281,114)
Cash flows excluded from profit attributable to operating activities
Non-cash flows in profit from ordinary activities
Share-based payments expense
Consulting fees payable settled through the issue of options
Depreciation
Effects of foreign exchange on translation
Impairment
Reclassification of insurance funding
Write-off of capitalised exploration
Capitalised exploration expenditure included in cash flows from operations
Changes in assets and liabilities, net of the effects of purchase and disposal of
subsidiaries
(Increase)/decrease in receivables and prepayments
Increase/(decrease) in trade and other payables
Increase/(decrease) in provisions
Cash flow from operations
(b) Credit Standby Facilities
The Group has no credit standby facilities.
(c) Non-Cash Investing and Financing Activities
The Group has no non-cash investing and financing activities.
P a g e | 53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 19
SHARE-BASED PAYMENTS
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
Note
2013
$
2012
$
Share-based payment expense
152,765
294,599
(a)
The above share-based payment expense is comprised of the following arrangements in place at 30 June 2013:
i. On 24 November 2011, 3,500,000 share options were granted to Directors under the Aura Energy Limited Incentive
Option Plan to take up ordinary shares at an exercise price of $0.31 each. The options are exercisable on or before 31
October 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 3,500,000 options remain
ii. On 4 December 2012, 200,000 share options were granted to an employee under the terms of an employment
contract at an exercise price of $0.20 each. The options are exercisable on or before 14 December 2016. The options
hold no voting or dividend rights. Options are not transferable. At balance date, no share option has been exercised
or forfeited and 200,000 options remain.
iii. On 15 January 2013, 3,000,000 listed share options were granted to consultants as settlement of an invoice of
$82,483 in connection with corporate promotion and marketing services at an exercise price of $0.20 each. The
options are exercisable on or before 1 December 2014. The options hold no voting or dividend rights. Listed options
are transferable. These options are recognised in public relations in the Consolidated Statement of Profit or Loss and
Other Comprehensive Income on page 28.
(b) The above share-based payment expense is comprised of the following arrangements in place at 30 June 2012:
i. Item (a)i. above.
ii. On 24 May 2012, 1,000,000 share options were granted to consultants under the Aura Energy Limited Incentive
Option Plan to take up ordinary shares at an exercise price of $0.20 each. The options are exercisable on or before 31
May 2015. The options hold no voting or dividend rights. Options are not transferable. At balance date, no share
option has been exercised or forfeited and 1,000,000 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.
(c)
Share-based payments recognised directly in equity and in place at 30 June 2013:
i. On 24 February 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 expired 24
April 2014 and the related option reserve was applied to accumulated losses.
ii. On 8 February 2011, two tranches of 650,000 share options (1,300,000) were granted to Gold Resources Limited to
take up ordinary shares at an exercise price of $0.69 and $1.05 each for each tranche. The options expired 30 March
2014 and the related option reserve was applied to accumulated losses.
(d)
Share-based payments recognised directly in equity and in place at 30 June 2012:
i. On 23 December 2011, 10,000,000 options were granted to Cygnet Capital as an underwriting fee in respect to a non-
renounceable entitlement issue. The value ascribed to the option issue was in accordance with the underwriting
agreement, inclusive of fees deducted from the proceeds of the capital raising, amounting to $239,383.
P a g e | 54
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 19 SHARE-BASED PAYMENTS (cont.)
A summary of the movements of all company options issued as share-based payments is as follows:
Outstanding at the beginning of the year
Granted
Exercised
Expired
2013
2012
Number of Options
Weighted Average
Exercise Price
Number of Options
Weighted Average
Exercise Price
17,145,000
3,200,000
$0.2348
$0.2000
-
-
(1,700,000)
$0.8065
7,695,000
14,500,000
(4,500,000)
(550,000)
$0.3785
$0.2856
$0.3000
$0.2500
Outstanding at year-end
18,645,000
$0.1767
17,145,000
$0.2348
Exercisable at year-end
18,645,000
$0.1767
13,645,000
$0.5322
The weighted average remaining contractual life of options outstanding at year end was 1.496 years. The weighted average
exercise price of outstanding shares at the end of the reporting period was $0.1767
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 $0.0284 (2012: $0.0937). These values were calculated
using the Black-Scholes option pricing model, applying the following inputs to options issued this year:
Grant date:
Grant date share price:
Option exercise price:
Number of options issued:
Remaining life of the options (years):
Expected share price volatility:
Risk-free interest rate:
15 January 2013 4 December 2012
$0.16
$0.20
3,000,000
1.422
72.75%
2.72%
$0.105
$0.20
200,000
3.433
72.75%
2.71%
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 20
EVENTS SUBSEQUENT TO REPORTING DATE
On 12 July 2013 Messrs Stephenson, O'Loughlin, and Junk stepped down as non-executive directors of the Company. In
addition, Aura's discussions with AREVA Mines SA (AREVA) concluded with AREVA electing not to proceed with the proposed
strategic partnership involving the Häggån uranium and polymetallic project (Häggån Project).
As a result of this, the Company undertook a review of its Swedish Projects. Consequently Aura has elected to rationalise its
holdings within Sweden through the relinquishing Swedish tenements to the value of 320,184, being the carrying value as at 30
June 2013.
On 13 July 2013, Mr. Peter Reeve was appointed as chairman of Aura Energy Limited, with Mr. Fraser retiring to a non-
executive role.
There are no other significant events subsequent to report date.
P a g e | 55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 21 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
Aura Energy Limited rented office space from Jay Stephenson until May 2012
Wolfstar Group Pty Ltd
Wolfstar Group Pty Ltd, a company controlled by Messrs Fraser and Stephenson,
provides financial services and company secretarial services to Aura Energy Limited.
These services are directly and indirectly by Messrs Fraser and Stephenson and have
therefore not been included in the Remuneration Report contained in the Directors'
Report on page 23
James Merrillees
Drake Resources Limited provides the services of James Merrillees to Aura Energy
Limited, recharging for his salary and superannuation on a cost basis. The fees for
the previous years were recharged in the current year.
NOTE 22
COMMITMENTS
(a)
Exploration expenditure commitments:
Exploration expenditure committed to:
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
2013
$
2012
$
-
9,900
90,000
90,000
118,865
207,951
2013
$
2012
$
Exploration tenement minimum expenditure requirements
340,029
578,701
Payable:
not later than 12 months
between 12 months and 5 years
greater than 5 years
The Group has no contracted exploration expenditure, however the Group has
treatment core asset tenement renewals as expenditure the Group is committed to.
(b) Operating lease commitments:
Operating leases contracted for or committed to but not capitalised in the financial
statements
Payable:
not later than 12 months
between 12 months and 5 years
greater than 5 years
The Group shares premises with a number of companies. Balances stated represent
the maximum gross amount payable, prior to reimbursement from other parties.
340,029
-
-
159,000
419,701
-
340,029
578,701
141,938
280,723
-
16,506
-
-
422,661
16,506
P a g e | 56
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 23 OPERATING SEGMENTS
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. The Group also maintains a treasury function, primarily responsible for raising
capital and managing and distributing those funds raised.
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.
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
P a g e | 57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTE 23 OPERATING SEGMENTS (cont.)
For the Year to 30 June 2013
Segment Revenue
Segment Results
Amounts not included in segment results but
reviewed by Board:
Expenses not directly allocable to identifiable
segments or areas of interest
Accounting and audit fees
Business development
Computers and communications
Depreciation
Employee benefits expense
Financing costs
Impairment
Insurance
Legal and consulting
Public relations
Rent and utilities
Share-based payment expenses
Share registry and listing fees
Travel and accommodation
Other unallocated expenses
Tax rebate for Research and Development
Loss after Income Tax
As at 30 June 2013
Segment Assets
Unallocated Assets:
Trade and other receivables
Plant and equipment
Other non-current assets
Total Assets
Segment asset increases for the period:
Capital expenditure - exploration
Less: Write-off of exploration assets
Segment Liabilities
Unallocated Liabilities:
Trade and other payables
Short-term provisions
Short-term borrowings
Total Liabilities
Australian
Exploration
$
Sweden
Exploration
$
African
Exploration
$
Treasury
$
Total
$
-
-
843
30,314
31,157
(365,907)
(370,652)
(1,344,932)
30,314
(2,051,177)
(142,228)
(6,051)
(54,041)
(14,610)
(760,773)
( 755)
(11,388)
(52,740)
(98,706)
(137,892)
(154,124)
(152,765)
(61,527)
(51,937)
(83,005)
1,077,378
(2,756,341)
954,767
7,808,174
6,233,845
2,031,925
17,028,711
57,789
(362,584)
1,448,303
(35,745)
719,683
(1,378,190)
(304,795)
1,412,558
(658,507)
6,163
56,948
69,986
-
-
-
-
102,926
9,694
-
17,141,331
2,225,775
(1,776,519)
449,256
133,097
294,276
116,311
31,136
574,820
P a g e | 58
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 23 OPERATING SEGMENTS (cont.)
For the Year to 30 June 2012
Segment Revenue
Segment Results
Amounts not included in segment results but
reviewed by Board:
Expenses not directly allocable to identifiable
segments or areas of interest
Accounting and audit fees
Business development
Computers and communications
Depreciation
Employee benefits expense
Financing costs
Impairment
Insurance
Legal and consulting
Public relations
Rent and utilities
Share-based payment expenses
Share registry and listing fees
Travel and accommodation
Other unallocated expenses
Tax rebate for Research and Development
Loss after Income Tax
As at 30 June 2012
Segment Assets
Unallocated Assets:
Trade and other receivables
Plant and equipment
Other non-current assets
Total Assets
Segment asset increases for the period:
Capital expenditure - exploration
Less: Write-off of exploration assets
Segment Liabilities
Unallocated Liabilities:
Trade and other payables
Short term provisions
Short-term borrowings
Total Liabilities
P a g e | 59
Australian
Exploration
$
Sweden
Exploration
$
African
Exploration
$
Treasury
$
Total
$
1,273
3,440
12,639
119,309
136,661
(157,963)
(77,062)
(186,362)
119,195
(302,192)
(146,157)
(14,781)
(23,634)
(15,026)
(684,738)
-
-
(36,960)
(328,552)
(233,828)
(111,441)
(294,599)
(87,566)
(81,988)
(131,882)
149,894
(2,343,450)
1,259,561
6,428,920
7,024,858
1,725,512
16,438,851
274,734
(155,263)
2,244,840
(77,689)
1,558,032
(199,001)
119,471
2,167,151
1,359,031
2,054
82,338
19,116
-
-
-
-
244,949
21,943
1,168
16,706,911
4,077,606
(431,953)
3,645,653
103,508
339,173
43,323
-
486,004
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 24
FINANCIAL RISK MANAGEMENT
(a)
Financial Risk Management Policies
The Group’s financial instruments consist mainly of deposits with banks, short-term investments, and accounts payable
and receivable.
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
$
Financial Assets
Cash and cash equivalents
2,012,295
Trade and other
receivables
-
Total Financial Assets
2,012,295
Fixed
Interest
Rate
$
-
-
-
Non-
interest
Bearing
$
2013
Total
$
Floating
Interest
Rate
$
-
2,012,295
1,725,512
102,926
102,926
-
102,926
2,115,221
1,725,512
Financial Liabilities
Financial liabilities at
amortised cost
Trade and other payables
Short-term borrowings
Total Financial Liabilities
-
-
-
-
410,672
410,672
31,136
-
31,136
31,136
410,672
441,808
-
-
-
Net Financial Assets
2,012,295
(31,136)
(307,746)
1,673,413
1,725,512
Fixed
Interest
Rate
Non-
interest
Bearing
2012
Total
$
1,725,512
$
-
244,949
244,949
244,949
1,970,461
442,681
442,681
-
-
442,681
442,681
(197,732)
1,527,780
$
-
-
-
-
-
-
-
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 financial institutions residing in
Australia, where ever possible.
P a g e | 60
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 24 FINANCIAL RISK MANAGEMENT (cont.)
(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 and considers the Group’s exposure currency and interest rate risk.
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, and movement in
interest rates on the Group’s financial assets is not material.
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.
With instruments being held by overseas operations, fluctuations in foreign currencies may impact on the Group’s
financial results. The Group’s exposure to foreign exchange risk is minimal; however the Board continues to
review this exposure regularly.
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.
P a g e | 61
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 24 FINANCIAL RISK MANAGEMENT (cont.)
(d)
Sensitivity Analyses
i.
Interest rates
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.
Year ended 30 June 2013
±100 basis points change in interest rates
Year ended 30 June 2012
Profit
$
Equity
$
± 20,123
± 20,123
±100 basis points change in interest rates
± 17,255
± 17,255
ii.
Foreign exchange
The Group main exposure to foreign currency risk is to Swedish Krona (SEK) for assets the Group holds through its
Swedish subsidiary, Aura Energy Sweden AB. The following table illustrates sensitivities to the Group’s exposures to
changes in the SEK rate. 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.
Year ended 30 June 2013
±10 % of Australian dollar strengthening/weakening against
the SEK
Year ended 30 June 2012
Profit
$
± nil
Equity
$
+ 790,554
- 646,817
The Group did not carry significant assets or liabilities in foreign currencies in the 2012 financial year, and
therefore was not subject to material foreign exchange risk, and according not subject to material
sensitivities.
P a g e | 62
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 24 FINANCIAL RISK MANAGEMENT (cont.)
(e)
Net Fair Values
i.
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.
(f)
Financial Liability and Asset Maturity Analysis
Financial liabilities due for payment
Trade and other payables
Short-term borrowings
Total contractual outflows
Financial assets
Cash and cash equivalents
Trade and other receivables
Within 1 Year
2013
$
410,672
31,136
441,808
2012
$
442,681
-
442,681
Total
2013
$
410,672
31,136
441,808
2012
$
442,681
-
442,681
2,012,295
102,926
1,725,512
244,949
2,012,295
102,926
1,725,512
244,949
Total anticipated inflows
2,115,221
1,970,461
2,115,221
1,970,461
Net (outflow)/inflow on financial
instruments
1,673,413
1,527,780
1,673,413
1,527,780
P a g e | 63
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 25
PARENT ENTITY DISCLOSURES
(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
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Short-term provisions
Short-term borrowings
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued Capital
Option Reserve
Accumulated Losses
TOTAL EQUITY
(b) Financial assets
Loans to subsidiaries
Shares in controlled entities at cost
Net carrying value
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
2013
$
2012
$
1,932,039
1,688,492
259,457
132,033
2,191,496
1,820,525
9,694
21,943
25(b)
8,503,031
2,264,686
5,937,790
12,750,911
14,450,515
15,037,540
16,642,011
16,858,065
410,672
133,012
31,136
574,820
442,681
43,323
-
486,004
574,820
486,004
16,067,191
16,372,061
27,759,558
25,723,535
642,516
625,968
(12,334,883)
(9,977,442)
16,067,191
16,372,061
6,433,798
2,069,233
223,274
2,041,412
8,503,031
2,264,686
Loans are provided by the parent entity to its controlled entities to fund their activities. The eventual recovery of loans and
investments will be dependent upon the successful commercial application of these projects or their sale to third parties.
P a g e | 64
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 25 PARENT ENTITY DISCLOSURES (cont.)
(c) Financial Performance of Aura Energy Limited
Loss for the year
Other comprehensive income
Total comprehensive income
2013
$
2012
$
(2,576,142)
(2,272,284)
-
-
(2,576,142)
(2,272,284)
(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 2013 (2012: none).
(e) Contingent liabilities of Aura Energy Limited
There are no contingent liabilities as at 30 June 2013, other than as detailed in note 26 Contingent Liabilities on page 66 (2012:
none).
(f) Commitments by Aura Energy Limited
i.
Exploration expenditure commitments:
Exploration expenditure committed to:
2013
$
2012
$
Exploration tenement minimum expenditure requirements
340,029
578,701
Payable:
not later than 12 months
between 12 months and 5 years
greater than 5 years
The Aura Group has no contracted exploration expenditure, however the Group has
treatment core asset tenement renewals as expenditure the Group is committed to.
ii. Operating lease commitments:
Operating leases contracted for or committed to but not capitalised in the financial
statements
Payable:
not later than 12 months
between 12 months and 5 years
greater than 5 years
The Aura Group shares premises with a number of companies. Balances stated
represent the maximum gross amount payable, prior to reimbursement from other
parties.
340,029
-
-
159,000
419,701
-
340,029
578,701
141,938
280,723
-
16,506
-
-
422,661
16,506
The amounts noted above are applicable for both Aura Energy Limited (the parent) and the Consolidated Group.
P a g e | 65
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 26
CONTINGENT LIABILITIES
The Group has a contingent consideration of US$2,000,000 to the vendors of GCM Africa Uranium Limited if the uranium
resource it holds exceeds 75 million pounds, and up to an additional US$4,000,000 plus 4,000,000 Aura shares if the resource
significantly exceeds this 75 million pounds.
There are no other contingent liabilities as at 30 June 2013.
NOTE 27
COMPANY DETAILS
The registered office of the Company is:
Address:
Street:
Postal:
Telephone:
Facsimile:
Website:
E-mail:
Level 4, 66 Kings Park Road
West Perth WA 6005
PO Box 52
West Perth WA 6872
+61 (0)8 6141 3570
+61 (0)8 6141 3599
www.auraenergy.com.au
info@auraenergy.com.au
The principal places of business are:
Technical Office:
Suite 3, Level 1
19-23 Prospect Place
Box Hill VIC 3128
Finance and Administration Office:
Level 4, 66 Kings Park Road
West Perth WA 6005
Field Office:
Berghauptmansgatan 58 B
791 61 Falun
Sweden
P a g e | 66
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
DIRECTORS’ DECLARATION
The directors of the Company declare that:
1.
The financial statements and notes, as set out on pages 28 to 66, are in accordance with the Corporations Act 2001
(Cth) and:
(a)
comply with Accounting Standards;
(b)
(c)
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
give a true and fair view of the financial position as at 30 June 2013 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 (Cth);
(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:
PETER REEVE
Chairman
Dated this 27th day of September 2013
P a g e | 67
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
consolidated statement of financial position as at 30 June 2013, and the consolidated
statement of profit or loss and other comprehensive income, consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended,
notes comprising a summary of significant accounting policies and other explanatory
information, and the directors’ declaration of the 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 the Company are responsible for the preparation and fair presentation of
the financial report in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal control as the directors determine is
necessary to enable the preparation of the financial report that is free from material
misstatement, whether due to fraud or error. In Note 1, the directors also state, in
accordance with Accounting Standards AASB 101: Presentation of Financial Statements,
that the financial statements comply with International Financial Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We
conducted our audit in accordance with Australian Auditing Standards. 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.
giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2013 and of its
performance for the year ended on that date; and
ii.
complying with Australian Accounting Standards and the Corporations Regulations 2001;
b. The financial report also complies with International Financial Reporting Standards as disclosed in Note 1.
Emphasis of Matter
Without qualifying our opinion, we draw attention to Note 1 in the financial report which indicates that the
Consolidated Entity incurred a net loss after tax of $2,756,341 during the year ended 30 June 2013. This
condition, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty which
may cast significant doubt about the ability of the Consolidated Entity to continue as a going concern and
whether it will realise its assets and extinguish its liabilities in the normal course of business and at the
amounts stated in the financial report.
Report on the Remuneration Report
We have audited the Remuneration Report included in directors’ report of the year ended 30 June 2013. The
directors of the Company are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
Auditor’s Opinion
In our opinion, the Remuneration Report of Aura Energy Limited for the year ended 30 June 2013, complies
with section 300A of the Corporations Act 2001.
BENTLEYS
Chartered Accountants
DOUG BELL CA
Director
DATED at PERTH this 27th day of September 2013
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
The following additional information is required by the Australian Securities Exchange in respect of listed public companies
only.
1
Shareholding as at 13 September 2012
(a) Distribution of Shareholders
Category (size of holding)
Total Holders
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
(b) Unmarketable Parcels
93
240
219
755
239
1,546
Number
Ordinary
10,705
771,525
1,818,836
27,412,690
153,271,835
183,285,591
Minimum $ 500.00 parcel at $ 0.0540 per unit
9,260
460
Minimum Parcel Size
Holders
(c) Voting Rights
The voting rights attached to each class of equity security are as follows:
Ordinary shares
% Held of Issued
Ordinary Capital
0.01
0.42
0.99
14.96
83.62
100.00
Units
1,687,508
—
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 13 September 2013.
Name
1
UBS NOMINEES PTY LTD
2 WISEVEST PTY LTD
3
4
5
NATIONAL NOMINEES LIMITED
ASHABIA PTY LTD
DRAKE RESOURCES LIMITED
6 MR MICHAEL BUSHELL
7
8
9
10
11
YARANDI INVESTMENTS PTY LTD
PASAGEAN PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
SAMBOLD PTY LTD
SUVALE NOMINEES PTY LTD
12 MRS JENNY LEE BUSHELL
13
CITICORP NOMINEES PTY LIMITED
14 DRAKE RESOURCES LIMITED
15
RNAJ PTY LTD
16 MRS JO-ANNE WEBER
17
18
BAINPRO NOMINEES PTY LIMITED
CRX INVESTMENTS PTY LIMITED
19 DAVSLAV PTY LTD
20
J P MORGAN NOMINEES AUSTRALIA LIMITED
Number of Ordinary
Fully Paid Shares Held
% Held of Issued
Ordinary Capital
11,834,501
9,855,155
7,204,164
5,890,212
4,795,000
4,780,722
4,603,834
4,090,000
3,915,317
3,028,334
3,020,834
2,472,945
2,467,133
2,333,334
2,000,000
1,700,796
1,692,221
1,637,500
1,633,334
1,437,623
6.46
5.38
3.93
3.21
2.62
2.61
2.51
2.23
2.14
1.65
1.65
1.35
1.35
1.27
1.09
0.93
0.92
0.89
0.89
0.78
TOTAL
80,392,959
43.86
P a g e | 70
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
2
3
The name of the Company Secretary is Jay Richard Stephenson.
The address of the principal registered office in Australia is Level 4, 66 Kings Park Road, West Perth WA 6005. Telephone
(08) 6141 3500.
4
Registers of securities are held at the following addresses
Western Australia
5
Stock Exchange Listing
Computershare Registry Services
Level 2, 45 St Georges Terrace
PERTH WA 6000
Quotation has been granted for all the ordinary shares of the Company on all Member Exchanges of the Australian
Securities Exchange Limited.
6
Unquoted Securities
Options over Unissued Shares
A total of 41,434,218 options are on issue of which 3,403,956 options are on issue to the four (4) Directors as at 13
September 2013.
7
Use of Funds
The Company has used its funds in accordance with its initial business objectives.
P a g e | 71
AURA ENERGY LIMITED
AND CONTROLLED ENTITIES
ABN 62 115 927 681
ANNUAL REPORT 30 JUNE 2013
West Africa
MAURITANIA
Reguibat Project
Oued El Foule Est
Ain Sder
Oum Ferkik
Mserif
Saabia
Oued El Foule Nord
Oued El Merre
Cheggat Project
Aguelt Habib O Brahim
Bir Nefé Nord
Touirist El Hank
Daya Ouelad Gheilane Nord
Elb El Hammami
Aleibat Ouelad Idriss
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
TENEMENT REPORT
As at 30 June 2013
Australia
WESTERN AUSTRALIA
Wondinong Project
E58/349 Wondinong NE
M58/357 Wondinong Resource
Europe
SWEDEN
Häggån Project
Gurumyren nr 1
Häggån nr 1
Häggån nr 2
Marby nr 1
Näkten nr 1 †
Hara nr 1 †
Hackås nr 1
Koborgsmyren nr 1
Kallsedet Project
Hamborg nr 1
Hamborg nr 2
Olden nr 2
Grässlåtten nr 1
Motala Project
Hageby nr 1
Hageby nr 2
Ullevi nr 1
Stavlösa nr 1
Norrsten nr 1
Stenby nr 1
Djurkalla nr 1
Virka Project
Virka nr 10 †
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
† Tenements since relinquished, refer to Note 20 Events Subsequent To Reporting Date on page 55 for further details.
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