1 AURELIA METALS LIMITED - ANNUAL REPORT 2017 2 AURELIA METALS LIMITED - ANNUAL REPORT 2017 3 AURELIA METALS LIMITED - ANNUAL REPORT 2017 4 AURELIA METALS LIMITED - ANNUAL REPORT 2017 5 AURELIA METALS LIMITED - ANNUAL REPORT 2017 6 AURELIA METALS LIMITED - ANNUAL REPORT 2017 7 AURELIA METALS LIMITED - ANNUAL REPORT 2017 8 AURELIA METALS LIMITED - ANNUAL REPORT 2017 9 AURELIA METALS LIMITED - ANNUAL REPORT 2017 10 AURELIA METALS LIMITED - ANNUAL REPORT 2017 11 AURELIA METALS LIMITED - ANNUAL REPORT 2017 12 AURELIA METALS LIMITED - ANNUAL REPORT 2017 13 AURELIA METALS LIMITED - ANNUAL REPORT 2017 14 AURELIA METALS LIMITED - ANNUAL REPORT 2017 15 AURELIA METALS LIMITED - ANNUAL REPORT 2017 16 AURELIA METALS LIMITED - ANNUAL REPORT 2017 17 AURELIA METALS LIMITED - ANNUAL REPORT 2017 18 AURELIA METALS LIMITED - ANNUAL REPORT 2017 19 AURELIA METALS LIMITED - ANNUAL REPORT 2017 20 AURELIA METALS LIMITED - ANNUAL REPORT 2017 21 AURELIA METALS LIMITED - ANNUAL REPORT 2017 22 AURELIA METALS LIMITED - ANNUAL REPORT 2017 23 AURELIA METALS LIMITED - ANNUAL REPORT 2017 24 AURELIA METALS LIMITED - ANNUAL REPORT 2017 25 AURELIA METALS LIMITED - ANNUAL REPORT 2017 26 AURELIA METALS LIMITED - ANNUAL REPORT 2017 27 AURELIA METALS LIMITED - ANNUAL REPORT 2017 28 AURELIA METALS LIMITED - ANNUAL REPORT 2017 29 AURELIA METALS LIMITED - ANNUAL REPORT 2017 30 AURELIA METALS LIMITED - ANNUAL REPORT 2017 31 AURELIA METALS LIMITED - ANNUAL REPORT 2017 32 AURELIA METALS LIMITED - ANNUAL REPORT 2017 33 AURELIA METALS LIMITED - ANNUAL REPORT 2017 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 2017, 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 30 August 2017 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 2017, 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 30 August 2017 35 AURELIA METALS LIMITED - ANNUAL REPORT 2017 36 AURELIA METALS LIMITED - ANNUAL REPORT 2017 37 AURELIA METALS LIMITED - ANNUAL REPORT 2017 38 AURELIA METALS LIMITED - ANNUAL REPORT 2017 39 AURELIA METALS LIMITED - ANNUAL REPORT 2017 40 AURELIA METALS LIMITED - ANNUAL REPORT 2017 41 AURELIA METALS LIMITED - ANNUAL REPORT 2017 42 AURELIA METALS LIMITED - ANNUAL REPORT 2017 43 AURELIA METALS LIMITED - ANNUAL REPORT 2017 44 AURELIA METALS LIMITED - ANNUAL REPORT 2017 45 AURELIA METALS LIMITED - ANNUAL REPORT 2017 46 AURELIA METALS LIMITED - ANNUAL REPORT 2017 47 AURELIA METALS LIMITED - ANNUAL REPORT 2017 48 AURELIA METALS LIMITED - ANNUAL REPORT 2017 49 AURELIA METALS LIMITED - ANNUAL REPORT 2017 50 AURELIA METALS LIMITED - ANNUAL REPORT 2017 51 AURELIA METALS LIMITED - ANNUAL REPORT 2017 52 AURELIA METALS LIMITED - ANNUAL REPORT 2017 53 AURELIA METALS LIMITED - ANNUAL REPORT 2017 54 AURELIA METALS LIMITED - ANNUAL REPORT 2017 55 AURELIA METALS LIMITED - ANNUAL REPORT 2017 56 AURELIA METALS LIMITED - ANNUAL REPORT 2017 57 AURELIA METALS LIMITED - ANNUAL REPORT 2017 58 AURELIA METALS LIMITED - ANNUAL REPORT 2017 59 AURELIA METALS LIMITED - ANNUAL REPORT 2017 60 AURELIA METALS LIMITED - ANNUAL REPORT 2017 61 AURELIA METALS LIMITED - ANNUAL REPORT 2017 62 AURELIA METALS LIMITED - ANNUAL REPORT 2017 63 AURELIA METALS LIMITED - ANNUAL REPORT 2017 64 AURELIA METALS LIMITED - ANNUAL REPORT 2017 65 AURELIA METALS LIMITED - ANNUAL REPORT 2017 66 AURELIA METALS LIMITED - ANNUAL REPORT 2017 67 AURELIA METALS LIMITED - ANNUAL REPORT 2017 68 AURELIA METALS LIMITED - ANNUAL REPORT 2017 69 AURELIA METALS LIMITED - ANNUAL REPORT 2017 70 AURELIA METALS LIMITED - ANNUAL REPORT 2017 71 AURELIA METALS LIMITED - ANNUAL REPORT 2017 72 AURELIA METALS LIMITED - ANNUAL REPORT 2017 73 AURELIA METALS LIMITED - ANNUAL REPORT 2017 Independent Auditor's Report to the Members of Aurelia Metals Limited Going Concern and funding arrangements Refer to Note 2A(a)(i) in the financial report Report on the Audit of the Financial Report Opinion We have audited the financial report of Aurelia Metals Limited (the Company), and its subsidiaries (collectively, the Group), which comprises the consolidated statement of financial position as at 30 June 2017, 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 to the financial statements, including a summary of significant accounting policies and the directors’ declaration of the Company. In our opinion, the accompanying financial report of Aurelia Metals Limited is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the consolidated financial position of the Group as at 30 June 2017 and of its consolidated financial performance for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial report. Why significant How our audit addressed the key audit matter At 30 June 2017, the Group is in a net current asset position of $32.8m and an overall net liability position of $3.7m (2016: $23.8m). The Group generated profit of $19.3m for the year ending 30 June 2017 and $46.1m in cash flows from operations. The Director’s views surrounding the Group’s ability to continue as a going concern are We identified and evaluated the judgments and assumptions within the cash flow forecasts that form the basis of the Directors’ assessment which included: Assessing the key assumptions and data in the cash flow forecasts with reference to information produced by the Group and external market data, and assessing the outlined in note 2A to the consolidated financial accuracy of the Group’s historical cash flow statements. forecasting. The Directors’ assessment of the going concern assumption has been identified as a key audit matter, given the judgments and cash flow estimates it required. Considering whether the Group’s contractual obligations contained in its funding agreements were reflected in the cash flow forecasts. In addition, we assessed the adequacy of the financial report disclosures contained in Note 2A(a)(i) regarding the Group’s ability to continue as a going concern. Recoverability of non-current assets Refer to Notes 2B(v) and 10 in the financial report Why significant How our audit addressed the key audit matter At 30 June 2017 the carrying value of the Hera cash generating unit (“CGU”) is $73m. The Group considered that no indicators of impairment existed at 30 June 2017, which would require an impairment test to be performed in accordance with Australian Accounting Standard AASB 136 Impairment of Assets. The recoverability of non-current assets was considered a key audit matter, given the significant judgement and inherent uncertainty involved in the assessment of whether impairment indicators exist. We have considered the Group’s assessment of indicators of impairment at 30 June 2017, which included the following procedures: Assessing whether the methodology and principles applied by the Group met the requirements of Australian Accounting Standard AASB 136. Comparing the assumptions made by the Group which have the most significant impact on the assessment of whether indicators of impairment existed, to information produced by the Group and to available external data. This included the discount rate, exchange rates, commodity prices and reserves and resources estimates. Independent Auditor's Report to the Members of Aurelia Metals Limited Going Concern and funding arrangements Refer to Note 2A(a)(i) in the financial report Report on the Audit of the Financial Report Why significant How our audit addressed the key audit matter Opinion We have audited the financial report of Aurelia Metals Limited (the Company), and its subsidiaries (collectively, the Group), which comprises the consolidated statement of financial position as at 30 June 2017, 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 to the financial statements, including a summary of significant accounting policies and the directors’ declaration of the Company. Corporations Act 2001, including: In our opinion, the accompanying financial report of Aurelia Metals Limited is in accordance with the (i) giving a true and fair view of the consolidated financial position of the Group as at 30 June 2017 and of its consolidated financial performance for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial report. At 30 June 2017, the Group is in a net current asset position of $32.8m and an overall net liability position of $3.7m (2016: $23.8m). The Group generated profit of $19.3m for the year ending 30 June 2017 and $46.1m in cash flows from operations. The Director’s views surrounding the Group’s ability to continue as a going concern are outlined in note 2A to the consolidated financial statements. The Directors’ assessment of the going concern assumption has been identified as a key audit matter, given the judgments and cash flow estimates it required. We identified and evaluated the judgments and assumptions within the cash flow forecasts that form the basis of the Directors’ assessment which included: Assessing the key assumptions and data in the cash flow forecasts with reference to information produced by the Group and external market data, and assessing the accuracy of the Group’s historical cash flow forecasting. Considering whether the Group’s contractual obligations contained in its funding agreements were reflected in the cash flow forecasts. In addition, we assessed the adequacy of the financial report disclosures contained in Note 2A(a)(i) regarding the Group’s ability to continue as a going concern. Recoverability of non-current assets Refer to Notes 2B(v) and 10 in the financial report Why significant How our audit addressed the key audit matter At 30 June 2017 the carrying value of the Hera cash generating unit (“CGU”) is $73m. The Group considered that no indicators of impairment existed at 30 June 2017, which would require an impairment test to be performed in accordance with Australian Accounting Standard AASB 136 Impairment of Assets. The recoverability of non-current assets was considered a key audit matter, given the significant judgement and inherent uncertainty involved in the assessment of whether impairment indicators exist. We have considered the Group’s assessment of indicators of impairment at 30 June 2017, which included the following procedures: Assessing whether the methodology and principles applied by the Group met the requirements of Australian Accounting Standard AASB 136. Comparing the assumptions made by the Group which have the most significant impact on the assessment of whether indicators of impairment existed, to information produced by the Group and to available external data. This included the discount rate, exchange rates, commodity prices and reserves and resources estimates. 3 4 Considering whether other external or internal factors exist that may be an indicator of impairment. We assessed the adequacy of the financial report disclosures contained in Note 2B(v) and note 10 with respect to the requirements of AASB 136. Revenue Recognition Refer to note 2A(q) in the financial report Why significant How our audit addressed the key audit matter During the year, the Group recorded sales revenue of $108.5 million, which included $76.5 million in gold sales and $31.1 million in metal concentrate sales Note 2A (q) to the financial statements sets out the Group’s accounting policies relating to the recognition of revenue. Revenue recognition for the gold and metal concentrate sales was a key audit matter. The determination of the appropriate value of gold sales can be complex prior to refining being completed. The determination of timing and value of metal concentrate sales can also be complex as these sales are executed on provisional pricing terms. Our audit procedures included the following: Gold Sales Directors’ responsibilities for the financial report For each sale recorded during the year, we determined whether revenue had been recorded in the correct period and at the correct amounts by reference to sales invoices, delivery documentation, customer payments and bank statements. Metal Concentrate Sales For each sale recorded during the year, we determined whether revenue had been recorded in the correct period and at the correct amounts by reference to provisionally priced sales invoices, bill of lading documentation and other relevant shipping documents, final sales invoices and customer payments and bank statements. We considered the fair value calculation of the embedded derivative resulting from the provisionally priced invoices outstanding at year end. We assessed the adequacy of financial report disclosures included in the financial report related to revenue. Information Other than the Financial Report and Auditor’s Report Thereon The Directors of the Company are responsible for the other information. The other information comprises the information in the Company’s Annual Report for the year ended 30 June 2017, but does not include the financial report and the auditor’s report thereon. We obtained the Directors’ Report that is to be included in the Annual Report, prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the Annual Report after the date of this auditor’s report. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based upon the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit 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. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors. 3 4 Revenue Recognition Refer to note 2A(q) in the financial report Why significant How our audit addressed the key audit matter During the year, the Group recorded sales Our audit procedures included the following: revenue of $108.5 million, which included $76.5 million in gold sales and $31.1 million in metal Gold Sales concentrate sales Note 2A (q) to the financial statements sets out the Group’s accounting policies relating to the recognition of revenue. Revenue recognition for the gold and metal concentrate sales was a key audit matter. The determination of the appropriate value of gold sales can be complex prior to refining being completed. The determination of timing and value of metal concentrate sales can also be complex as these sales are executed on provisional pricing terms. Considering whether other external or internal factors exist that may be an indicator of impairment. We assessed the adequacy of the financial report disclosures contained in Note 2B(v) and note 10 with respect to the requirements of AASB 136. For each sale recorded during the year, we determined whether revenue had been recorded in the correct period and at the correct amounts by reference to sales invoices, delivery documentation, customer payments and bank statements. Metal Concentrate Sales For each sale recorded during the year, we determined whether revenue had been recorded in the correct period and at the correct amounts by reference to provisionally priced sales invoices, bill of lading documentation and other relevant shipping documents, final sales invoices and customer payments and bank statements. We considered the fair value calculation of the embedded derivative resulting from the provisionally priced invoices outstanding at year end. revenue. We assessed the adequacy of financial report disclosures included in the financial report related to Information Other than the Financial Report and Auditor’s Report Thereon The Directors of the Company are responsible for the other information. The other information comprises the information in the Company’s Annual Report for the year ended 30 June 2017, but does not include the financial report and the auditor’s report thereon. We obtained the Directors’ Report that is to be included in the Annual Report, prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the Annual Report after the date of this auditor’s report. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based upon the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Directors’ responsibilities for the financial report The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit 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. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors. 5 6 Report on the remuneration report Opinion on the remuneration report We have audited the Remuneration Report included in pages 18 to 26 of the Directors' Report for the year ended 30 June 2017. In our opinion, the Remuneration Report of Aurelia Metals Limited for the year ended 30 June 2017, complies with section 300A of the Corporations Act 2001. 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 • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated to the Directors, we determine those matters that were of most significance in the audit of the financial report of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Responsibilities Auditing Standards. Ernst & Young Ryan Fisk Partner Sydney 30 August 2017 5 6 • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. Report on the remuneration report Opinion on the remuneration report We have audited the Remuneration Report included in pages 18 to 26 of the Directors' Report for the year ended 30 June 2017. In our opinion, the Remuneration Report of Aurelia Metals Limited for the year ended 30 June 2017, complies with section 300A of the Corporations Act 2001. • Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a Responsibilities 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. Ernst & Young Ryan Fisk Partner Sydney 30 August 2017 manner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. identify during our audit. We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated to the Directors, we determine those matters that were of most significance in the audit of the financial report of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. 80 AURELIA METALS LIMITED - ANNUAL REPORT 2017 81 AURELIA METALS LIMITED - ANNUAL REPORT 2017 82 AURELIA METALS LIMITED - ANNUAL REPORT 2017