A U R E L I A M E T A L S L T D 2 0 1 6 A n n U A L R E p o R T AURELIA METALS LTD ASX Code: AMI ABN: 37 108 476 384 2 CoRPoRATIoN PLACe, oRANGe NSW 2800 PhoNe: +61 2 6363 5200 FAX: +61 2 6361 4711 WWW.AuReLIAMeTALS.CoM COMPANY INFORMATION ..................................................................................... 2 COMPANY INFORMATION CHAIRMAN’S LETTER .......................................................................................... 3 CONTENTS REVIEW AND RESULTS OF OPERATIONS ................................................................ 4 DIRECTORS’ REPORT STATEMENT OF RESOURCES AND RESERVES ....................................................... 10 OPERATIONS AND FINANCIAL REVIEW COMPETENT PERSONS STATEMENTS ................................................................... 12 REMUNERATION REPORT (AUDITED) DIRECTORS’ REPORT ........................................................................................ 13 AUDITOR’S INDEPENDENCE AND NON-AUDIT SERVICES OPERATIONS AND FINANCIAL REVIEW ................................................................ 18 AUDITOR’S INDEPENDENCE DECLARATION REMUNERATION REPORT (AUDITED) ................................................................... 26 FINANCIAL STATEMENTS AUDITOR’S INDEPENDENCE AND NON-AUDIT SERVICES ....................................... 33 Statement of Comprehensive Income AUDITOR’S INDEPENDENCE DECLARATION .......................................................... 34 Statement of Financial Position FINANCIAL STATEMENTS ................................................................................... 35 Statement of Changes in Equity Statement of Comprehensive Income ............................................................ 35 Cash Flow Statement NOTES TO FINANCIAL STATEMENTS Statement of Financial Position ..................................................................... 36 DIRECTORS’ DECLARATION Statement of Changes in Equity .................................................................... 37 INDEPENDENT AUDITOR’S REPORT Cash Flow Statement .................................................................................. 38 NOTES TO FINANCIAL STATEMENTS .................................................................... 39 DIRECTORS’ DECLARATION ............................................................................... 77 INDEPENDENT AUDITOR’S REPORT ..................................................................... 78 ADDITIONAL ASX INFORMATION ........................................................................ 80 1 AURELIA METALS LIMITED - ANNUAL REPORT 2016 2 AURELIA METALS LIMITED - ANNUAL REPORT 2016 3 AURELIA METALS LIMITED - ANNUAL REPORT 2016 4 AURELIA METALS LIMITED - ANNUAL REPORT 2016 5 AURELIA METALS LIMITED - ANNUAL REPORT 2016 6 AURELIA METALS LIMITED - ANNUAL REPORT 2016 7 AURELIA METALS LIMITED - ANNUAL REPORT 2016 8 AURELIA METALS LIMITED - ANNUAL REPORT 2016 9 AURELIA METALS LIMITED - ANNUAL REPORT 2016 10 AURELIA METALS LIMITED - ANNUAL REPORT 2016 11 AURELIA METALS LIMITED - ANNUAL REPORT 2016 12 AURELIA METALS LIMITED - ANNUAL REPORT 2016 13 AURELIA METALS LIMITED - ANNUAL REPORT 2016 14 AURELIA METALS LIMITED - ANNUAL REPORT 2016 15 AURELIA METALS LIMITED - ANNUAL REPORT 2016 16 AURELIA METALS LIMITED - ANNUAL REPORT 2016 17 AURELIA METALS LIMITED - ANNUAL REPORT 2016 18 AURELIA METALS LIMITED - ANNUAL REPORT 2016 19 AURELIA METALS LIMITED - ANNUAL REPORT 2016 20 AURELIA METALS LIMITED - ANNUAL REPORT 2016 21 AURELIA METALS LIMITED - ANNUAL REPORT 2016 22 AURELIA METALS LIMITED - ANNUAL REPORT 2016 23 AURELIA METALS LIMITED - ANNUAL REPORT 2016 24 AURELIA METALS LIMITED - ANNUAL REPORT 2016 25 AURELIA METALS LIMITED - ANNUAL REPORT 2016 26 AURELIA METALS LIMITED - ANNUAL REPORT 2016 27 AURELIA METALS LIMITED - ANNUAL REPORT 2016 28 AURELIA METALS LIMITED - ANNUAL REPORT 2016 29 AURELIA METALS LIMITED - ANNUAL REPORT 2016 30 AURELIA METALS LIMITED - ANNUAL REPORT 2016 2016 Executives Kairaitis, Rimas Churcher, Timothy Willson, Richard 2015 Executives Kairaitis, Rimas Churcher, Timothy Fredericksen, Dean Pearce, Sean Willson, Richard Balance at the start of the year Granted during the year as compensation Exercised during the year Expired during the year Balance at year end 250,000 - 100,000 350,000 - - - - - - - - (250,000) - (50,000) (300,000) - - 50,000 50,000 Balance at the start of the year Granted during the year as compensation Exercised during the year Expired during the year Balance at year end 250,000 - 160,000 195,000 50,000 655,000 - - 250,000 220,000 150,000 620,000 - - (200,000) (265,000) (60,000) (525,000) - - (210,000) (150,000) (40,000) (400,000) 250,000 - - - 100,000 350,000 31 AURELIA METALS LIMITED - ANNUAL REPORT 2016 32 AURELIA METALS LIMITED - ANNUAL REPORT 2016 33 AURELIA METALS LIMITED - ANNUAL REPORT 2016 Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001 Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au Auditor’s Independence Declaration to the Directors of Aurelia Metals Limited As lead auditor for the audit of Aurelia Metals Limited for the financial year ended 30 June 2016, I declare to the best of my knowledge and belief, there have been: a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b) no contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of Aurelia Metals Limited and the entities it controlled during the financial period. Ernst & Young Ryan Fisk Partner 16 September 2016 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 25 35 AURELIA METALS LIMITED - ANNUAL REPORT 2016 36 AURELIA METALS LIMITED - ANNUAL REPORT 2016 37 AURELIA METALS LIMITED - ANNUAL REPORT 2016 38 AURELIA METALS LIMITED - ANNUAL REPORT 2016 39 AURELIA METALS LIMITED - ANNUAL REPORT 2016 40 AURELIA METALS LIMITED - ANNUAL REPORT 2016 41 AURELIA METALS LIMITED - ANNUAL REPORT 2016 42 AURELIA METALS LIMITED - ANNUAL REPORT 2016 43 AURELIA METALS LIMITED - ANNUAL REPORT 2016 44 AURELIA METALS LIMITED - ANNUAL REPORT 2016 45 AURELIA METALS LIMITED - ANNUAL REPORT 2016 46 AURELIA METALS LIMITED - ANNUAL REPORT 2016 47 AURELIA METALS LIMITED - ANNUAL REPORT 2016 48 AURELIA METALS LIMITED - ANNUAL REPORT 2016 49 AURELIA METALS LIMITED - ANNUAL REPORT 2016 50 AURELIA METALS LIMITED - ANNUAL REPORT 2016 51 AURELIA METALS LIMITED - ANNUAL REPORT 2016 52 AURELIA METALS LIMITED - ANNUAL REPORT 2016 53 AURELIA METALS LIMITED - ANNUAL REPORT 2016 54 AURELIA METALS LIMITED - ANNUAL REPORT 2016 55 AURELIA METALS LIMITED - ANNUAL REPORT 2016 56 AURELIA METALS LIMITED - ANNUAL REPORT 2016 57 AURELIA METALS LIMITED - ANNUAL REPORT 2016 58 AURELIA METALS LIMITED - ANNUAL REPORT 2016 59 AURELIA METALS LIMITED - ANNUAL REPORT 2016 60 AURELIA METALS LIMITED - ANNUAL REPORT 2016 61 AURELIA METALS LIMITED - ANNUAL REPORT 2016 62 AURELIA METALS LIMITED - ANNUAL REPORT 2016 63 AURELIA METALS LIMITED - ANNUAL REPORT 2016 64 AURELIA METALS LIMITED - ANNUAL REPORT 2016 65 AURELIA METALS LIMITED - ANNUAL REPORT 2016 Hera- Nymagee project Other exploration projects Corporate Total 66 AURELIA METALS LIMITED - ANNUAL REPORT 2016 Hera- Nymagee project Other exploration projects Corporate Total Hera- Nymagee project Other exploration projects Corporate Total 67 AURELIA METALS LIMITED - ANNUAL REPORT 2016 Hera- Nymagee project Other exploration projects Corporate Total 68 AURELIA METALS LIMITED - ANNUAL REPORT 2016 69 AURELIA METALS LIMITED - ANNUAL REPORT 2016 70 AURELIA METALS LIMITED - ANNUAL REPORT 2016 71 AURELIA METALS LIMITED - ANNUAL REPORT 2016 72 AURELIA METALS LIMITED - ANNUAL REPORT 2016 73 AURELIA METALS LIMITED - ANNUAL REPORT 2016 74 AURELIA METALS LIMITED - ANNUAL REPORT 2016 75 AURELIA METALS LIMITED - ANNUAL REPORT 2016 76 AURELIA METALS LIMITED - ANNUAL REPORT 2016 77 AURELIA METALS LIMITED - ANNUAL REPORT 2016 Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001 Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au Independent auditor's report to the members of Aurelia Metals Limited Report on the financial report We have audited the accompanying financial report of Aurelia Metals Limited, which comprises the consolidated statement of financial position as at 30 June 2016, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, 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 of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal controls as the directors determine are necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In Note 2, the directors also state, in accordance with Accounting Standard 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. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. 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 controls 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 controls. 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. Opinion In our opinion: including: and in Note 2. a. the financial report of Aurelia Metals Limited is in accordance with the Corporations Act 2001, i giving a true and fair view of the consolidated entity's financial position as at 30 June 2016 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 Report on the remuneration report We have audited the Remuneration Report included in the directors' report for the year ended 30 June 2016. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Opinion In our opinion, the Remuneration Report of Aurelia Metals Limited for the year ended 30 June 2016, complies with section 300A of the Corporations Act 2001. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Ernst & Young Independence In conducting our audit we have complied with the independence requirements of the Corporations Act 2001. We have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is included in the directors’ report. Ryan Fisk Partner Sydney 16 September 2016 69 70 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Opinion In our opinion: a. the financial report of Aurelia Metals Limited is in accordance with the Corporations Act 2001, including: i ii giving a true and fair view of the consolidated entity's financial position as at 30 June 2016 and of its performance for the year ended on that date; and complying with Australian Accounting Standards and the Corporations Regulations 2001; and b. the financial report also complies with International Financial Reporting Standards as disclosed in Note 2. Report on the remuneration report We have audited the Remuneration Report included in the directors' report for the year ended 30 June 2016. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Opinion In our opinion, the Remuneration Report of Aurelia Metals Limited for the year ended 30 June 2016, complies with section 300A of the Corporations Act 2001. Ernst & Young Ryan Fisk Partner Sydney 16 September 2016 70 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation LUJETA PTY LTD LUJETA PTY LTD 80 AURELIA METALS LIMITED - ANNUAL REPORT 2016 81 AURELIA METALS LIMITED - ANNUAL REPORT 2016 82 AURELIA METALS LIMITED - ANNUAL REPORT 2016 83 AURELIA METALS LIMITED - ANNUAL REPORT 2016 84 AURELIA METALS LIMITED - ANNUAL REPORT 2016 A U R E L I A M E T A L S L T D 2 0 1 6 A n n U A L R E p o R T AURELIA METALS LTD ASX Code: AMI ABN: 37 108 476 384 2 CoRPoRATIoN PLACe, oRANGe NSW 2800 PhoNe: +61 2 6363 5200 FAX: +61 2 6361 4711 WWW.AuReLIAMeTALS.CoM