Aurelia Metals Limited

2019

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A U R E L I A   M E T A L S   L T D 
A N N U A L   R E P O R T 

 
 
 
 
 
 
 
COMPANY INFORMATION 

COMPANY INFORMATION   

CHAIRMAN'S LETTER 

OPERATIONS REVIEW 

DISCOVERY   

MINERAL RESOURCE AND ORE RESERVE STATEMENT  

SAFETY, ENVIRONMENT AND COMMUNITY 
DIRECTORS’ REPORT 

OPERATIONS AND FINANCIAL REVIEW 

REMUNERATION REPORT (AUDITED) 
AUDITOR’S INDEPENDENCE AND NON-AUDIT SERVICES 
AUDITOR’S INDEPENDENCE DECLARATION 

FINANCIAL STATEMENTS 

   Statement of Comprehensive Income 

   Statement of Financial Position 

   Statement of Changes in Equity 

Cash Flow Statement  

NOTES TO FINANCIAL STATEMENTS 
DIRECTORS’ DECLARATION 
INDEPENDENT AUDITOR’S REPORT 

ADDITIONAL ASX INFORMATION   

SCHEDULE OF TENEMENT INTERESTS 

1 

2  

3  

6 

9 

12 

14 

20 

32 

40 

41 

42 

43 

44 

45 

46 

81 

82 

88 

90 

AURELIA METALS LIMITED - ANNUAL REPORT 2019

 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMPANY INFORMATION 

ABN 37 108 476 384 

Directors 

CHAIRMAN’S LETTER 

Dear Shareholder, 

Colin Johnstone, Executive Chairman & Interim Chief Executive Officer 

On behalf of the Board of Aurelia Metals, I am pleased to present the 2019 Annual Report for the Company. 

Lawrence Conway 

Susan Corlett 

Paul Espie AO 

Paul Harris 

Michael Menzies 

Company Secretary  

Timothy Churcher  

Gillian Nairn 

Registered office and principal place of business 

Aurelia Metals Limited 

Lvl 2 60-62 McNamara Street  

ORANGE NSW 2800 

Telephone: 

(02) 6363 5200 

Facsimile: 

(02) 6361 4711 

Email: 

office@aureliametals.com.au 

Share register 

Security Transfer Registrars Pty Ltd 

770 Canning Highway 

Applecross WA 6153 

Telephone:  

(08) 9315 2333 

Facsimile:  

(08) 9315 2233 

Australian Securities Exchange  

Aurelia Metals Limited shares are listed on the Australian Securities Exchange (ASX Code: AMI) 

Auditors 

Ernst and Young 

200 George Street 

SYDNEY NSW 2000 

Website 

www.aureliametals.com.au 

Corporate Governance 

A copy of the Company’s Corporate Governance Statement is located on the Company’s website: 

http://aureliametals.com/about/corporate-governance 

The past year has been one of significant consolidation for Aurelia, following the highly successful acquisition of Peak Mines 

in 2018.  The focus this year has been firmly on optimising our operations and delivering a sound footing for long-term success. 

Safe production is a core value of everything we do.  Whilst we have made significant progress in the year, I believe that we 

can do better.  We will continue to focus on this value and will always seek ongoing improvement. 

Aurelia delivered another strong set of operating and financial results in 2019, with gold production increasing 21% to 117,521 

ounces from a full year contribution of Peak Mines.  This was delivered at a robust group All-In-Sustaining-Cost (AISC) of 

A$1,045 per ounce.  It was also the second consecutive year for Aurelia in which both EBITDA and Net Operating Cashflow 

exceeded A$100 million. 

The  result  of  this  was  that  our  cash  balance  increased  by  56%  to  over  A$104  million  at  balance  date,  and  the  business 

remained debt free.  I am proud to say that this financial performance and balance sheet strength enabled us to declare a 

maiden, fully-franked dividend of 2.0c per share.  This dividend payment reflected a significant payout ratio of approximately 

50% of net profit and net cash generation in 2019. 

We are also focussed on investing in the future.  To enhance our ability to treat high-grade base metal ores we are investing 

approximately A$53 million in a major upgrade of the processing circuit at Peak Mines.  Completion and commissioning of 

this plant upgrade in the first half of calendar 2020 is expected to unlock a step-jump in lead-zinc production capacity going 

forward.  We are also investing heavily in underground development to make up for historical underspend in this regard and 

allow us to access additional high margin ore sources, including the decision to accelerate access to the high-grade Kairos 

deposit (previously known as Peak Deeps) over the coming year. 

Exploration success has been another important driver over the last year.  Our drilling efforts have yielded significant new 

discoveries including the Federation and Athena systems in the Hera region, and the Kairos and Upper Chronos extensions 

in the Peak near-mine area.  These results indicate the prospectivity of our landholdings and the capability of our geological 

team.  In recognition of the substantial value that can be added through judicious investment in exploration, we have approved 

a A$15 million near-mine and regional exploration budget for the coming year. 

As  part  of  a  senior  leadership  transition  undertaken  at  Aurelia,  Mr  Jim  Simpson  stepped  down  from  his  role  as  Aurelia’s 

Managing Director and CEO in May 2019.  I would like to express my gratitude to Jim for the significant contribution he made 

to Aurelia and its shareholders over the past three years. 

It was with great pleasure that we recently announced the appointment of Mr Dan Clifford as our new Managing Director and 

CEO.  Following a global search process that yielded a high calibre pool of candidates, Dan was the clear standout.  His 

professional background and career achievements to date leave him  well placed to deliver for Aurelia and its shareholders 

over the coming years.  I would also like to welcome Mr Peter Trout to the Company.  Peter was recently appointed to the 

role of Chief Operating Officer and brings a wealth of underground mining and base metal experience to our business. 

I would like to  take this opportunity to  thank the entire team of talented and dedicated people at Aurelia.  I have had the 

pleasure  of  observing  close  hand  your  commitment  to  our  business  and  all  its  stakeholders  –  it  is  second  to  none. 

Our thanks also go to the Cobar community for their support during the year, we look forward to a long and mutually beneficial 

relationship over the coming years. To our contract partners and consultants also, thank you for your significant contribution 

to the ongoing success of Aurelia. Finally, a special thanks to Paul Espie who retires at this year’s AGM after 6 years as a 

Director. Paul, as a representative of Pacific Road Capital, played a significant role in the formation of Aurelia and their support 

was crucial to our ongoing success. I wish him well in his future endeavours.  

Finally, to our shareholders, thank you for your continued support and trust in Aurelia, its assets and its people. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  1

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  2

Cobb Johnstone 

Executive Chairman and Interim Chief Executive Officer 

 
 
 
 
 
 
 
 
Colin Johnstone, Executive Chairman & Interim Chief Executive Officer 

On behalf of the Board of Aurelia Metals, I am pleased to present the 2019 Annual Report for the Company. 

CHAIRMAN’S LETTER 

Dear Shareholder, 

The past year has been one of significant consolidation for Aurelia, following the highly successful acquisition of Peak Mines 
in 2018.  The focus this year has been firmly on optimising our operations and delivering a sound footing for long-term success. 

Safe production is a core value of everything we do.  Whilst we have made significant progress in the year, I believe that we 
can do better.  We will continue to focus on this value and will always seek ongoing improvement. 

Aurelia delivered another strong set of operating and financial results in 2019, with gold production increasing 21% to 117,521 
ounces from a full year contribution of Peak Mines.  This was delivered at a robust group All-In-Sustaining-Cost (AISC) of 
A$1,045 per ounce.  It was also the second consecutive year for Aurelia in which both EBITDA and Net Operating Cashflow 
exceeded A$100 million. 

The  result  of  this  was  that  our  cash  balance  increased  by  56%  to  over  A$104  million  at  balance  date,  and  the  business 
remained debt free.  I am proud to say that this financial performance and balance sheet strength enabled us to declare a 
maiden, fully-franked dividend of 2.0c per share.  This dividend payment reflected a significant payout ratio of approximately 
50% of net profit and net cash generation in 2019. 

We are also focussed on investing in the future.  To enhance our ability to treat high-grade base metal ores we are investing 
approximately A$53 million in a major upgrade of the processing circuit at Peak Mines.  Completion and commissioning of 
this plant upgrade in the first half of calendar 2020 is expected to unlock a step-jump in lead-zinc production capacity going 
forward.  We are also investing heavily in underground development to make up for historical underspend in this regard and 
allow us to access additional high margin ore sources, including the decision to accelerate access to the high-grade Kairos 
deposit (previously known as Peak Deeps) over the coming year. 

Exploration success has been another important driver over the last year.  Our drilling efforts have yielded significant new 
discoveries including the Federation and Athena systems in the Hera region, and the Kairos and Upper Chronos extensions 
in the Peak near-mine area.  These results indicate the prospectivity of our landholdings and the capability of our geological 
team.  In recognition of the substantial value that can be added through judicious investment in exploration, we have approved 
a A$15 million near-mine and regional exploration budget for the coming year. 

As  part  of  a  senior  leadership  transition  undertaken  at  Aurelia,  Mr  Jim  Simpson  stepped  down  from  his  role  as  Aurelia’s 
Managing Director and CEO in May 2019.  I would like to express my gratitude to Jim for the significant contribution he made 
to Aurelia and its shareholders over the past three years. 

It was with great pleasure that we recently announced the appointment of Mr Dan Clifford as our new Managing Director and 
CEO.  Following a global search process that yielded a high calibre pool of candidates, Dan was the clear standout.  His 
professional background and career achievements to date leave him  well placed to deliver for Aurelia and its shareholders 
over the coming years.  I would also like to welcome Mr Peter Trout to the Company.  Peter was recently appointed to the 
role of Chief Operating Officer and brings a wealth of underground mining and base metal experience to our business. 

I would like to  take this opportunity to  thank the entire team of talented and dedicated people at Aurelia.  I have had the 
pleasure  of  observing  close  hand  your  commitment  to  our  business  and  all  its  stakeholders  –  it  is  second  to  none. 
Our thanks also go to the Cobar community for their support during the year, we look forward to a long and mutually beneficial 
relationship over the coming years. To our contract partners and consultants also, thank you for your significant contribution 
to the ongoing success of Aurelia. Finally, a special thanks to Paul Espie who retires at this year’s AGM after 6 years as a 
Director. Paul, as a representative of Pacific Road Capital, played a significant role in the formation of Aurelia and their support 
was crucial to our ongoing success. I wish him well in his future endeavours.  

Finally, to our shareholders, thank you for your continued support and trust in Aurelia, its assets and its people. 

COMPANY INFORMATION 

ABN 37 108 476 384 

Directors 

Lawrence Conway 

Susan Corlett 

Paul Espie AO 

Paul Harris 

Michael Menzies 

Company Secretary  

Timothy Churcher  

Gillian Nairn 

Registered office and principal place of business 

Aurelia Metals Limited 

Lvl 2 60-62 McNamara Street  

ORANGE NSW 2800 

Telephone: 

(02) 6363 5200 

Facsimile: 

(02) 6361 4711 

Email: 

office@aureliametals.com.au 

Share register 

Security Transfer Registrars Pty Ltd 

770 Canning Highway 

Applecross WA 6153 

Telephone:  

(08) 9315 2333 

Facsimile:  

(08) 9315 2233 

Australian Securities Exchange  

Auditors 

Ernst and Young 

200 George Street 

SYDNEY NSW 2000 

Website 

www.aureliametals.com.au 

Corporate Governance 

Aurelia Metals Limited shares are listed on the Australian Securities Exchange (ASX Code: AMI) 

A copy of the Company’s Corporate Governance Statement is located on the Company’s website: 

http://aureliametals.com/about/corporate-governance 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  1

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  2

Cobb Johnstone 

Executive Chairman and Interim Chief Executive Officer 

 
 
 
 
 
 
 
 
OPERATIONS REVIEW 
Aurelia  operates  two  gold,  silver,  lead,  zinc  and  copper  mines  at  Peak  and  Hera.    The  Company  also  holds  a 
dominant land position along the eastern margin of the highly prospective Cobar Basin of central New South Wales. 

During the year, the Group produced 117,521 oz of gold at an AISC/oz of $1,045/oz, representing a 21% increase 

in production on the prior year but at a higher unit cost (FY18 gold production of 97,374 oz at $509/oz).  Hera 

contributed 58,025 oz at an AISC/oz of $809/oz and Peak was 59,496 oz at an AISC/oz of $1,143/oz. 

The Company’s strategic focus is a mining-for-value approach and can be summarised as: 

1) Optimise existing operations

•Increase underground development rates and complete the Pb/Zn circuit upgrade at Peak
•Focus on mine life extensions and operational efficiencies at Hera

2) Focus on returns

•Focus on operating margin over volume or commodity preference
•Accelerate access to higher margin material in FY21

3) Leverage extensive UG and surface infrastructure

•Focus on targeted near-mine exploration
•Identify new high-NSR material; and
•Extend asset operating lives

4) Unlock exceptional prospectivity

•regional exploration to deliver the next major mine

Copper production was 4,267 tonnes (a 117% increase on the prior year), Lead production was 17,847 t (a 60% 

increase on the prior year) and Zinc production was 13,485 t (a 2% increase on the prior year). 

Revenue increased by 19% to $295.0 million with approximately 70% from precious metals and 30% base metals.  

EBITDA was $103.1 million (2018: $136.7 million) and Net profit after tax was $36.0 million (2018: $99.1 million). 

Hera Mine 

Hera had a strong year despite reduced metal grades. Countering reduced grade, the operation achieved a 15% 

increase  in  throughput  levels,  relative  to  the  prior  year,  and  an  increase  in gold  recovery  to  90.9%.    The  AISC 

increased largely due to the reduced gold head grade but also due to reduced by-product credits, from lower base 

metal production and lower base metal prices. 

Mining at Hera has shifted focus from lateral mine development to ore stoping, with the primary challenge being to 

closely manage operating costs during this transition. 

Hera’s future is a declining gold grade (subject to further exploration success) countered by increased lead and 

zinc  grades.  Operating  costs  are  planned  to  reduce  along  with  a  reduction  in  the  amount  of  sustaining  capital 

required. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  3

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  4

 
 
 
 
 
 
 
 
 
 
 
 
OPERATIONS REVIEW 

Aurelia  operates  two  gold,  silver,  lead,  zinc  and  copper  mines  at  Peak  and  Hera.    The  Company  also  holds  a 

dominant land position along the eastern margin of the highly prospective Cobar Basin of central New South Wales. 

During the year, the Group produced 117,521 oz of gold at an AISC/oz of $1,045/oz, representing a 21% increase 
in production on the prior year but at a higher unit cost (FY18 gold production of 97,374 oz at $509/oz).  Hera 
contributed 58,025 oz at an AISC/oz of $809/oz and Peak was 59,496 oz at an AISC/oz of $1,143/oz. 

The Company’s strategic focus is a mining-for-value approach and can be summarised as: 

1) Optimise existing operations

•Increase underground development rates and complete the Pb/Zn circuit upgrade at Peak

•Focus on mine life extensions and operational efficiencies at Hera

2) Focus on returns

•Focus on operating margin over volume or commodity preference

•Accelerate access to higher margin material in FY21

3) Leverage extensive UG and surface infrastructure

•Focus on targeted near-mine exploration

•Identify new high-NSR material; and

•Extend asset operating lives

4) Unlock exceptional prospectivity

•regional exploration to deliver the next major mine

Copper production was 4,267 tonnes (a 117% increase on the prior year), Lead production was 17,847 t (a 60% 
increase on the prior year) and Zinc production was 13,485 t (a 2% increase on the prior year). 

Revenue increased by 19% to $295.0 million with approximately 70% from precious metals and 30% base metals.  
EBITDA was $103.1 million (2018: $136.7 million) and Net profit after tax was $36.0 million (2018: $99.1 million). 

Hera Mine 

Hera had a strong year despite reduced metal grades. Countering reduced grade, the operation achieved a 15% 
increase  in  throughput  levels,  relative  to  the  prior  year,  and  an  increase  in gold  recovery  to  90.9%.    The  AISC 
increased largely due to the reduced gold head grade but also due to reduced by-product credits, from lower base 
metal production and lower base metal prices. 

Mining at Hera has shifted focus from lateral mine development to ore stoping, with the primary challenge being to 
closely manage operating costs during this transition. 

Hera’s future is a declining gold grade (subject to further exploration success) countered by increased lead and 
zinc  grades.  Operating  costs  are  planned  to  reduce  along  with  a  reduction  in  the  amount  of  sustaining  capital 
required. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  3

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  4

 
 
 
 
 
 
 
 
 
 
 
 
DISCOVERY 

1 

Exploration 

The  Company  accelerated  exploration  activity  during  the  year  with  a  total  investment  of  $6.8  million.    Exploration 

included underground drilling at the Peak and Hera mines and significant near mine and regional surface exploration 

in the broader Hera region. 

This work has delivered new high grade discoveries at the Kairos lode immediately below the existing Peak workings, 

and at the Federation Prospect 10 kilometres south of the Hera mine. 

1.1 

Kairos Discovery (Peak Mine) 

A  zone  of  high  grade  gold  and  base  metal  mineralisation  was  discovered  below  the  existing  Peak  Mine  workings 

(ASX  release  on  16  April  2019,  Peak  Mine  Exploration  Update).    The  association  of  strong  lead  and  zinc 

mineralisation with high grade gold suggests a similarity with the high grade Chronos lode.  Drilling returned a number 

of exceptional intercepts, including: 

• 

• 

• 

16 metres at 71.6g/t Au, 8.5% Pb+Zn, 14g/t Ag & 0.6% Cu (UD18PP1523) 

23 metres at 25.9g/t Au, 33.2% Pb+Zn, 40g/t Ag & 1.8% Cu (UD18PP1528) 

14 metres at 42.9g/t Au, 13.4% Pb+Zn, 15g/t Ag & 0.5% Cu (UD18PP1532) 

Mineralisation  is  currently  open  in  multiple  directions  (see  Figure  1),  as  evidenced  by  the  recent  discovery  of  high 

grade copper mineralisation 150 metres below the currently defined Kairos lode.  Underground mine development to 

Kairos is planned to allow mine access and to provide addition drill platforms. 

The key performance metrics for the Hera Mine are tabulated below: 

Hera Mine  

Ore processed (kt) 
Gold grade g/t 
Silver grade g/t 
Lead grade % 
Zinc grade % 
Gold Recovery % 
Silver Recovery % 
Lead Recovery % 
Zinc Recovery % 
Gold production (oz) 
Silver production (oz) 
Lead production (t) 
Zinc production (t) 
AISC $/oz (All in sustaining cost) 

FY19 

468,358 
4.2 
10.9 
1.6% 
2.4% 
90.9% 
83.6% 
85.5% 
89.0% 
58,025 
145,554 
6,599 
10,129 
809 

FY18 

Variance 

407,131 
5.1 
13.4 
2.6% 
3.6% 
89.4% 
88.2% 
89.5% 
89.8% 
59,822 
154,645 
9,609 
13,031 
430 

15% 
(17)% 
(19)% 
(38)% 
(33)% 
2% 
(5)% 
(4)% 
(1)% 
(3)% 
(6)% 
(31)% 
(22)% 
(88%) 

Peak Mine 
Peak delivered 59,496 oz of gold at an AISC of $1,143/oz. The significant increase in AISC was largely the result 
of a 52% decrease in gold head grades, with the transition during the year from the very high gold grade Chronos 
zone into lower gold, higher base metal Chronos mineralisation. 

Process throughout rates during the year were restricted due to the processing of high-grade gold and lead Chronos 
mineralisation, but also due to limitation on available ore sources during the year. 

To  resolve  ore  availability  and  to  provide  access  to  higher  grade  stoping  areas,  there  is  a  significant  focus  on 
increasing underground development rates.  To assist with increased mine development, the operational focus was 
on successfully transitioning the mine to contractor-operated strategy from 1 February 2019. 

The site also commenced a large-scale upgrade of the processing circuit to enable the production of separate lead 
and zinc concentrates from the processing of high grade lead zinc ores at throughput rates of up to 800,000 tpa. 
This major upgrade, forecast to cost $53 million, with $38 million to be invested during the next  financial year, is 
planned for completion in the March 2020 quarter. 

The key performance metrics for the Peak Mine are tabulated below. Note that FY18 includes performance from 
the date of acquisition only (10 April 2018 to 30 June 2018). 

Peak Mine 
Ore Processed (kt) 
Gold grade g/t 
Silver grade g/t 
Copper grade % 
Lead grade % 
Zinc grade % 
Silver Recovery % 
Copper Recovery % 
Lead Recovery % 
Zinc Recovery % 
Gold production (oz) 
Silver production (oz) 
Copper production (t) 
Lead production (t) 
Zinc production (t) 
AISC $/oz (All In Sustaining Cost) 

Nymagee Project 

FY19 

FY18 

Variance 

452,501 
4.2 
23.1 
1.0% 
3.1% 
1.7% 
79.8% 
92.5% 
81.1% 
44.8% 
59,496 
268,224 
4,267 
11,248 
3,356    
1,143    

135,345 
8.8 
25.7 
1.6% 
1.5% 
0.6% 
75.9% 
93.1% 
76.2% 
29.6% 
37,552 
84,815 
1,968 
1,551 

251    
517 

234% 
(52)% 
(10)% 
(38)% 
107% 
183% 
5% 
(1)% 
6% 
51% 
58% 
216% 
117% 
625% 
1,237% 
(121%) 

During the year, the Nymagee Pre-feasibility Study was deferred based on metallurgical testwork which indicated 
a reduction in economically recoverable resource tonnes (ASX release 4 June 2019). The Company may rescope 
the project on the basis of the reduction in tonnes and the potential impact of any future exploration success. Should 
future exploration increase resources significantly, the development potential of Nymagee may be revisited. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  5

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  6

Figure 1. Long section showing selected intercepts from drilling at the Kairos lode. 

 
 
 
 
 
 
 
 
 
 
 
  
  
 
DISCOVERY 

1 

Exploration 

The  Company  accelerated  exploration  activity  during  the  year  with  a  total  investment  of  $6.8  million.    Exploration 
included underground drilling at the Peak and Hera mines and significant near mine and regional surface exploration 
in the broader Hera region. 

This work has delivered new high grade discoveries at the Kairos lode immediately below the existing Peak workings, 
and at the Federation Prospect 10 kilometres south of the Hera mine. 

1.1 

Kairos Discovery (Peak Mine) 

A  zone  of  high  grade  gold  and  base  metal  mineralisation  was  discovered  below  the  existing  Peak  Mine  workings 
(ASX  release  on  16  April  2019,  Peak  Mine  Exploration  Update).    The  association  of  strong  lead  and  zinc 
mineralisation with high grade gold suggests a similarity with the high grade Chronos lode.  Drilling returned a number 
of exceptional intercepts, including: 

• 
• 
• 

16 metres at 71.6g/t Au, 8.5% Pb+Zn, 14g/t Ag & 0.6% Cu (UD18PP1523) 
23 metres at 25.9g/t Au, 33.2% Pb+Zn, 40g/t Ag & 1.8% Cu (UD18PP1528) 
14 metres at 42.9g/t Au, 13.4% Pb+Zn, 15g/t Ag & 0.5% Cu (UD18PP1532) 

Mineralisation  is  currently  open  in  multiple  directions  (see  Figure  1),  as  evidenced  by  the  recent  discovery  of  high 
grade copper mineralisation 150 metres below the currently defined Kairos lode.  Underground mine development to 
Kairos is planned to allow mine access and to provide addition drill platforms. 

Peak delivered 59,496 oz of gold at an AISC of $1,143/oz. The significant increase in AISC was largely the result 

of a 52% decrease in gold head grades, with the transition during the year from the very high gold grade Chronos 

zone into lower gold, higher base metal Chronos mineralisation. 

Process throughout rates during the year were restricted due to the processing of high-grade gold and lead Chronos 

mineralisation, but also due to limitation on available ore sources during the year. 

To  resolve  ore  availability  and  to  provide  access  to  higher  grade  stoping  areas,  there  is  a  significant  focus  on 

increasing underground development rates.  To assist with increased mine development, the operational focus was 

on successfully transitioning the mine to contractor-operated strategy from 1 February 2019. 

The site also commenced a large-scale upgrade of the processing circuit to enable the production of separate lead 

and zinc concentrates from the processing of high grade lead zinc ores at throughput rates of up to 800,000 tpa. 

This major upgrade, forecast to cost $53 million, with $38 million to be invested during the next  financial year, is 

planned for completion in the March 2020 quarter. 

The key performance metrics for the Peak Mine are tabulated below. Note that FY18 includes performance from 

the date of acquisition only (10 April 2018 to 30 June 2018). 

The key performance metrics for the Hera Mine are tabulated below: 

Hera Mine  

Ore processed (kt) 

Gold grade g/t 

Silver grade g/t 

Lead grade % 

Zinc grade % 

Gold Recovery % 

Silver Recovery % 

Lead Recovery % 

Zinc Recovery % 

Gold production (oz) 

Silver production (oz) 

Lead production (t) 

Zinc production (t) 

Peak Mine 

AISC $/oz (All in sustaining cost) 

Peak Mine 

Ore Processed (kt) 

Gold grade g/t 

Silver grade g/t 

Copper grade % 

Lead grade % 

Zinc grade % 

Silver Recovery % 

Copper Recovery % 

Lead Recovery % 

Zinc Recovery % 

Gold production (oz) 

Silver production (oz) 

Copper production (t) 

Lead production (t) 

Zinc production (t) 

AISC $/oz (All In Sustaining Cost) 

Nymagee Project 

FY19 

FY18 

Variance 

468,358 

407,131 

4.2 

10.9 

1.6% 

2.4% 

90.9% 

83.6% 

85.5% 

89.0% 

58,025 

145,554 

6,599 

10,129 

809 

5.1 

13.4 

2.6% 

3.6% 

89.4% 

88.2% 

89.5% 

89.8% 

59,822 

154,645 

9,609 

13,031 

430 

15% 

(17)% 

(19)% 

(38)% 

(33)% 

2% 

(5)% 

(4)% 

(1)% 

(3)% 

(6)% 

(31)% 

(22)% 

(88%) 

FY19 

FY18 

Variance 

452,501 

135,345 

4.2 

23.1 

1.0% 

3.1% 

1.7% 

79.8% 

92.5% 

81.1% 

44.8% 

59,496 

268,224 

4,267 

11,248 

3,356    

1,143    

8.8 

25.7 

1.6% 

1.5% 

0.6% 

75.9% 

93.1% 

76.2% 

29.6% 

37,552 

84,815 

1,968 

1,551 

234% 

(52)% 

(10)% 

(38)% 

107% 

183% 

5% 

(1)% 

6% 

51% 

58% 

216% 

117% 

625% 

251    

517 

1,237% 

(121%) 

During the year, the Nymagee Pre-feasibility Study was deferred based on metallurgical testwork which indicated 

a reduction in economically recoverable resource tonnes (ASX release 4 June 2019). The Company may rescope 

the project on the basis of the reduction in tonnes and the potential impact of any future exploration success. Should 

future exploration increase resources significantly, the development potential of Nymagee may be revisited. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  5

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  6

Figure 1. Long section showing selected intercepts from drilling at the Kairos lode. 

 
 
 
 
 
 
 
 
 
 
 
  
  
 
1.2 

Federation Discovery (10 km south of the Hera mine) 

In early May 2019, the Company announced the discovery of high-grade base metal mineralisation at the Federation prospect, 
10 kilometres south-southwest of the Hera Mine (ASX release 6 May 2019). The discovery followed the identification of 
coincident induced polarisation (IP) chargeability and conductivity anomalies at the site, which also hosted strong gold and 
lead soil anomalism.  Six of the initial eight initial RC holes drilled at Federation returned high grade lead and zinc (±gold) 
intercepts, with the best including: 

• 
• 
• 

5 metres at 22.6% Pb+Zn, 3.07g/t Au & 13g/t Ag (FRC010) 
6 metres at 21.1% Pb+Zn, 0.33g/t Au & 7g/t Ag (FRC012) 
4 metres at 23.4% Pb+Zn, 0.28g/t Au & 15g/t Ag (FRC008) 

The initial drilling at Federation was followed up with deeper diamond drilling program (ASX release 26 June 2019).  
Drill hole FRCD019 returned extensive mineralisation and included an intercept of 26 metre at 16.4% Pb+Zn & 0.3% 
Cu,  including  11.5  metres  at  31.1%  Pb+Zn  &  0.2%  Cu  (Figure  2).    The  drilling  extended  the  high  grade 
mineralisation  at  least  500  metres  below  the  surface.    Further  high  grade  mineralisation  at  depth  has  also  been 
reported since the end of the financial year. 

To date mineralisation at Federation has been established over a strike length exceeding 300 metres and extends to 
at least 550 metres below surface. The mineralisation is open in multiple directions, including at depth, with significant 
drilling and evaluation continuing.  

A  follow-up  diamond  and  RC  program  was  completed  in  early  2019  and  returned  the  first  significant  sulphide 

mineralisation at Dominion (ASX release 6 May 2019), including 5 metres at 2.8% Cu (DRC029), 5 metres at 2.2% 

Cu  (DRC030).  The  mineralisation  at  Dominion  is  open  in  multiple  directions,  including  at  depth,  with  additional 

exploration planned for the coming year.  

1.4 

Extension drilling  

•  Chronos lode at the Peak Mine 

Underground drilling above the Chronos lode successfully extended the lode at least 100 metres above  the current 

resource (ASX release on 27 May 2019).  Many of the holes drilled in the upper Chronos program intercepted high to 

very high grade lead and zinc mineralisation with lower gold, including: 

24 metres at 29.6% Pb+Zn, 0.4g/t Au & 44g/t Ag (UD19PV1712) 

23 metres at 27.3% Pb+Zn, 0.2g/t Au & 46g/t Ag (UD19PV1715) 

The upper Chronos area remains open up-dip with further underground drilling planned during the coming year. 

• 

 North Pod at the Hera mine 

In February 2019 the Company announced the results of underground drilling in the upper portions of the North Pod at Hera, 

confirming that high grade mineralisation extended beyond the existing resources (ASX release 28 February 2019).  Significant 

intercepts from this drilling included: 

7 metres at 45.1% Pb+Zn, 229g/t Ag & 0.3g/t Au (HRUD642) 

17 metres at 4.5% Pb+Zn, 19g/t Ag & 5.3g/t Au (HRUD632) 

12 metres at 23.1% Pb+Zn, 106g/t Ag & 0.6g/t Au (HRUD627) 

The North Pod mineralisation remains open up-dip. Additional development has been planned to allow access to the newly 

defined mineralisation, including additional drill platforms to test for further extensions. 

• 

• 

• 

• 

• 

1.5 

Other targets 

•  Main Southeast (Hera mine) 

existing resource base. 

•  Athena (southeast of the Hera mine) 

Surface drilling immediately to the south of the Hera Mine in the Main Southeast area intercepted encouraging base metal 

intercepts (ASX release 12 June 2019), with the best 23 metres at 7.3% Pb+Zn, including 8 metres at 14.5% Pb+Zn in 

HRD065W1. The Company is currently reviewing the results from the Main Southeast area for the potential to add to Hera’s 

Shallow gold mineralisation has been intercepted during reconnaissance RC drilling at the Athena prospect 2.5 kilometres 

southeast of the Hera Mine (ASX release 12 June 2019).  Hole ATR006 returned 6 metres at 1.7g/t Au from 86 metres and 5 

metres at 6.2g/t Au from 112 metres down hole.  Follow-up work at the prospect will continue into the coming year. 

Figure 2. Long section looking towards 330° (NNW) showing the modelled 3D IP chargeability and conductivity anomalies at 
Federation with drilling to date. 

1.3 

Dominion Discovery (south of the Hera mine) 

In  October  2019,  the  Company  announced  the  discovery  of  broad  zones  of  oxide  and  transitional  base  metal 
mineralisation  at  the  Dominion  prospect,  one  kilometre  southeast  of  the  Federation  discovery  (ASX  release  22 
October 2018). After visible gold was identified in gossanous outcrop at Dominion, an initial program of 15 relatively 
shallow RC drill holes were completed with best intercepts including: 

• 
• 

17 metres at 3.9% Cu, 5.5% Pb+Zn, 26g/t Ag & 0.46g/t Au (DRC017) 
6 metres at 7.5% Cu, 5.2% Pb+Zn, 47 g/t Ag & 0.52g/t Au (DRC015) 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  7

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.2 

Federation Discovery (10 km south of the Hera mine) 

In early May 2019, the Company announced the discovery of high-grade base metal mineralisation at the Federation prospect, 

10 kilometres south-southwest of the Hera Mine (ASX release 6 May 2019). The discovery followed the identification of 

coincident induced polarisation (IP) chargeability and conductivity anomalies at the site, which also hosted strong gold and 

lead soil anomalism.  Six of the initial eight initial RC holes drilled at Federation returned high grade lead and zinc (±gold) 

intercepts, with the best including: 

• 

• 

• 

5 metres at 22.6% Pb+Zn, 3.07g/t Au & 13g/t Ag (FRC010) 

6 metres at 21.1% Pb+Zn, 0.33g/t Au & 7g/t Ag (FRC012) 

4 metres at 23.4% Pb+Zn, 0.28g/t Au & 15g/t Ag (FRC008) 

The initial drilling at Federation was followed up with deeper diamond drilling program (ASX release 26 June 2019).  

Drill hole FRCD019 returned extensive mineralisation and included an intercept of 26 metre at 16.4% Pb+Zn & 0.3% 

Cu,  including  11.5  metres  at  31.1%  Pb+Zn  &  0.2%  Cu  (Figure  2).    The  drilling  extended  the  high  grade 

mineralisation  at  least  500  metres  below  the  surface.    Further  high  grade  mineralisation  at  depth  has  also  been 

reported since the end of the financial year. 

A  follow-up  diamond  and  RC  program  was  completed  in  early  2019  and  returned  the  first  significant  sulphide 
mineralisation at Dominion (ASX release 6 May 2019), including 5 metres at 2.8% Cu (DRC029), 5 metres at 2.2% 
Cu  (DRC030).  The  mineralisation  at  Dominion  is  open  in  multiple  directions,  including  at  depth,  with  additional 
exploration planned for the coming year.  

1.4 

Extension drilling  

•  Chronos lode at the Peak Mine 

Underground drilling above the Chronos lode successfully extended the lode at least 100 metres above  the current 
resource (ASX release on 27 May 2019).  Many of the holes drilled in the upper Chronos program intercepted high to 
very high grade lead and zinc mineralisation with lower gold, including: 

• 
• 

24 metres at 29.6% Pb+Zn, 0.4g/t Au & 44g/t Ag (UD19PV1712) 
23 metres at 27.3% Pb+Zn, 0.2g/t Au & 46g/t Ag (UD19PV1715) 

The upper Chronos area remains open up-dip with further underground drilling planned during the coming year. 

To date mineralisation at Federation has been established over a strike length exceeding 300 metres and extends to 

at least 550 metres below surface. The mineralisation is open in multiple directions, including at depth, with significant 

• 

 North Pod at the Hera mine 

drilling and evaluation continuing.  

In February 2019 the Company announced the results of underground drilling in the upper portions of the North Pod at Hera, 
confirming that high grade mineralisation extended beyond the existing resources (ASX release 28 February 2019).  Significant 
intercepts from this drilling included: 

• 
• 
• 

7 metres at 45.1% Pb+Zn, 229g/t Ag & 0.3g/t Au (HRUD642) 
17 metres at 4.5% Pb+Zn, 19g/t Ag & 5.3g/t Au (HRUD632) 
12 metres at 23.1% Pb+Zn, 106g/t Ag & 0.6g/t Au (HRUD627) 

The North Pod mineralisation remains open up-dip. Additional development has been planned to allow access to the newly 
defined mineralisation, including additional drill platforms to test for further extensions. 

1.5 

Other targets 

•  Main Southeast (Hera mine) 

Surface drilling immediately to the south of the Hera Mine in the Main Southeast area intercepted encouraging base metal 
intercepts (ASX release 12 June 2019), with the best 23 metres at 7.3% Pb+Zn, including 8 metres at 14.5% Pb+Zn in 
HRD065W1. The Company is currently reviewing the results from the Main Southeast area for the potential to add to Hera’s 
existing resource base. 

•  Athena (southeast of the Hera mine) 

Shallow gold mineralisation has been intercepted during reconnaissance RC drilling at the Athena prospect 2.5 kilometres 
southeast of the Hera Mine (ASX release 12 June 2019).  Hole ATR006 returned 6 metres at 1.7g/t Au from 86 metres and 5 
metres at 6.2g/t Au from 112 metres down hole.  Follow-up work at the prospect will continue into the coming year. 

Figure 2. Long section looking towards 330° (NNW) showing the modelled 3D IP chargeability and conductivity anomalies at 

Federation with drilling to date. 

1.3 

Dominion Discovery (south of the Hera mine) 

In  October  2019,  the  Company  announced  the  discovery  of  broad  zones  of  oxide  and  transitional  base  metal 

mineralisation  at  the  Dominion  prospect,  one  kilometre  southeast  of  the  Federation  discovery  (ASX  release  22 

October 2018). After visible gold was identified in gossanous outcrop at Dominion, an initial program of 15 relatively 

shallow RC drill holes were completed with best intercepts including: 

• 

• 

17 metres at 3.9% Cu, 5.5% Pb+Zn, 26g/t Ag & 0.46g/t Au (DRC017) 

6 metres at 7.5% Cu, 5.2% Pb+Zn, 47 g/t Ag & 0.52g/t Au (DRC015) 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  7

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pb 

(%) 

0.8 

0.2 

0.8 

Cu 

(%) 

1.7 

1.0 

1.1 

Class 

Indicated 

Inferred 

Total 

Estimate.  

Class 

Proved 

Probable 

Total 

Tonnes  

(kt) 

1,410 

40 

1,450 

NSR 

(A$/t) 

207 

131 

205 

Cu 

 (%) 

2.3 

1.6 

2.2 

Zn 

(%) 

1.5 

0.5 

1.4 

Ag 

(g/t) 

18 

10 

18 

Note: The Nymagee Project Mineral Resource Estimate utilises A$120/tonne NSR cut-off mineable shapes that include 

internal dilution. Tonnage estimates have been rounded to nearest 1,000 tonnes.  

ORE RESERVE ESTIMATES 

The Ore Reserve Estimate is derived from only the Measured and Indicated categories within the Mineral Resource 

Table 6. Peak Gold Mines Ore Reserve Estimate as at 30 June 2019 

Tonnes  

(kt) 

376 

2,458 

2,834 

NSR 

(A$/t) 

181 

232 

225 

Au 

(g/t) 

1.2 

2.1 

2.0 

Pb 

(%) 

0.3 

2.0 

1.8 

Zn 

(%) 

0.6 

2.1 

1.9 

Ag 

(g/t) 

11 

16 

15 

Note: The Peak Gold Mines Ore Reserve Estimate utilises an A$150/tonne NSR cut-off for Peak, Perseverance, Great 

Cobar and an A$130/tonne NSR for Chesney, New Cobar and Jubilee. Tonnage estimates have been rounded to the 

nearest 1,000 tonnes.  

Table 7. Hera Mine Ore Reserve Estimate as at 30 June 2019 

Class 

Proved 

Probable 

Total 

Tonnes 

 (Kt) 

0 

1,577 

1,577 

NSR 

(A$/t) 

0 

218 

218 

Au 

(g/t) 

0 

1.9 

1.9 

Pb 

(%) 

0 

3.0 

3.0 

Zn 

(%) 

0 

4.5 

4.5 

Ag 

(g/t) 

0 

34 

34 

Note: The Hera Mine Ore Reserve Estimate utilises an A$130/tonne NSR cut-off. Tonnage estimates have been rounded to the 

nearest 1,000 tonnes. 

MINERAL RESOURCE AND ORE RESERVE STATEMENT 

Table 5. Nymagee Project Mineral Resource Estimate as at 30 June 2019 

On the 19 July 2019, Aurelia provided an update via ASX Market Announcement for the Mineral Resources Estimate and Ore 
Reserves Estimate for its 100 % owned Hera, Nymagee and Peak Gold base metals mines, in Central West NSW. 

Group Resource Estimate 

Table 1. Aurelia Group Mineral Resource Estimate as at 30 June 2019 

Class  

Measured  

Indicated  

Inferred  
Total 
Resources 

Tonnes 
(kt) 
2,896 

9,769 

5,055 

17,720 

NSR 
(A$/t) 
215 

217 

207 

214 

Au 
(g/t) 
1.8 

1.3 

1.3 

1.4 

Cu 
(%) 
0.9 

1.3 

1.6 

1.3 

Pb 
(%) 
1.3 

1.3 

0.6 

1.1 

Zn   
(%) 
1.9 

1.6 

0.9 

1.5 

Ag 
(g/t) 
15 

15 

8 

13 

Note: The Aurelia Group Mineral Resource Estimate utilises A$120/tonne NSR cut-off mineable shapes that include internal 
dilution. Net smelter return (NSR) is an estimate of the net recoverable value per tonne including offsite costs, payables, 
royalties and metal recoveries. Tonnage estimates have been rounded to nearest 1,000 tonnes. 

Group Reserve Estimate 

Table 2. Aurelia Group Ore Reserve Estimate as at 30 June 2019 

Class 

Proved 

Probable 

Total Reserves 

Tonnes 
 (kt) 
376 

4,034 

4,410 

NSR 
(A$/t) 
181 

227 

223 

Au 
(g/t) 
1.2 

2.0 

1.9 

Cu 
(%) 
1.7 

0.6 

0.7 

Pb 
(%) 
0.3 

2.4 

2.2 

Zn 
(%) 
0.6 

3.0 

2.8 

Ag 
(g/t) 
11 

23 

22 

Note: When comparing Mineral Resources to Ore Reserves, it should be noted that Ore Reserves are estimated using 
lower metals price assumptions and higher NSR cut-off values.  The Ore Reserve Estimate utilises an A$150/tonne NSR 
cut-off for Peak, Perseverance, Great Cobar and an A$130/tonne NSR for Chesney, New Cobar, Jubilee and the Hera 
Mine.  Metal price assumptions are contained in the body of this report.  Tonnage estimates have been rounded to nearest 
1,000 tonnes. 

MINERAL RESOURCE ESTIMATES 

Table 3. Peak Gold Mines Mineral Resource Estimate as at 30 June 2019 

Class 

Measured 

Indicated 

Inferred 

Total 

Tonnes  
(kt) 
1,919 

7,402 

4,889 

14,210 

NSR 
(A$/t) 
204 

219 

207 

213 

Au 
(g/t) 
1.7 

1.6 

1.3 

1.5 

Cu 
(%) 
1.3 

1.3 

1.6 

1.4 

Pb 
(%) 
0.6 

1.1 

0.5 

0.9 

Zn 
(%) 
0.7 

1.3 

0.8 

1.1 

Ag 
(g/t) 
11 

10 

7 

9 

Note: The Peak Gold Mines Mineral Resource Estimate utilises A$120/tonne NSR cut-off mineable shapes that include 
internal dilution. Tonnage estimates have been rounded to nearest 1,000 tonnes.  

Table 4. Hera Mine Mineral Resource Estimate as at 30 June 2019 

Class 

Measured 

Indicated 

Inferred 

Total 

Tonnes  
(kt) 
977 

957 

126 

2,061 

NSR 
(A$/t) 
238 

216 

215 

227 

Au 
 (g/t) 
2.2 

1.4 

2.3 

1.8 

Pb 
 (%) 
2.8 

2.9 

1.6 

2.8 

Zn 
 (%) 
4.2 

4.4 

2.8 

4.2 

Ag 
 (g/t) 
23 

44 

39 

34 

Note: The Hera Mine Mineral Resource Estimate utilises A$120/tonne NSR cut-off mineable shapes that include internal 
dilution. Tonnage estimates have been rounded to nearest 1,000 tonnes.  

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  9

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table 5. Nymagee Project Mineral Resource Estimate as at 30 June 2019 

Class 

Indicated 

Inferred 

Total 

Tonnes  
(kt) 
1,410 

40 

1,450 

NSR 
(A$/t) 
207 

131 

205 

Cu 
 (%) 
2.3 

1.6 

2.2 

Pb 
(%) 
0.8 

0.2 

0.8 

Zn 
(%) 
1.5 

0.5 

1.4 

Ag 
(g/t) 
18 

10 

18 

Note: The Nymagee Project Mineral Resource Estimate utilises A$120/tonne NSR cut-off mineable shapes that include 
internal dilution. Tonnage estimates have been rounded to nearest 1,000 tonnes.  

ORE RESERVE ESTIMATES 

The Ore Reserve Estimate is derived from only the Measured and Indicated categories within the Mineral Resource 
Estimate.  

Table 6. Peak Gold Mines Ore Reserve Estimate as at 30 June 2019 

Class 

Proved 

Probable 

Total 

Tonnes  
(kt) 
376 

2,458 

2,834 

NSR 
(A$/t) 
181 

232 

225 

Au 
(g/t) 
1.2 

2.1 

2.0 

Cu 
(%) 
1.7 

1.0 

1.1 

Pb 
(%) 
0.3 

2.0 

1.8 

Zn 
(%) 
0.6 

2.1 

1.9 

Ag 
(g/t) 
11 

16 

15 

Note: The Peak Gold Mines Ore Reserve Estimate utilises an A$150/tonne NSR cut-off for Peak, Perseverance, Great 
Cobar and an A$130/tonne NSR for Chesney, New Cobar and Jubilee. Tonnage estimates have been rounded to the 
nearest 1,000 tonnes.  

Table 7. Hera Mine Ore Reserve Estimate as at 30 June 2019 

Class 

Proved 

Probable 

Total 

Tonnes 
 (Kt) 
0 

1,577 

1,577 

NSR 
(A$/t) 
0 

218 

218 

Au 
(g/t) 
0 

1.9 

1.9 

Pb 
(%) 
0 

3.0 

3.0 

Zn 
(%) 
0 

4.5 

4.5 

Ag 
(g/t) 
0 

34 

34 

Note: The Hera Mine Ore Reserve Estimate utilises an A$130/tonne NSR cut-off. Tonnage estimates have been rounded to the 
nearest 1,000 tonnes. 

MINERAL RESOURCE AND ORE RESERVE STATEMENT 

On the 19 July 2019, Aurelia provided an update via ASX Market Announcement for the Mineral Resources Estimate and Ore 

Reserves Estimate for its 100 % owned Hera, Nymagee and Peak Gold base metals mines, in Central West NSW. 

Group Resource Estimate 

Table 1. Aurelia Group Mineral Resource Estimate as at 30 June 2019 

Class  

Measured  

Indicated  

Inferred  

Total 

Resources 

Tonnes 

(kt) 

2,896 

9,769 

5,055 

17,720 

NSR 

(A$/t) 

215 

217 

207 

214 

Au 

(g/t) 

1.8 

1.3 

1.3 

1.4 

Cu 

(%) 

0.9 

1.3 

1.6 

1.3 

Pb 

(%) 

1.3 

1.3 

0.6 

1.1 

Zn   

(%) 

1.9 

1.6 

0.9 

1.5 

Ag 

(g/t) 

15 

15 

8 

13 

Note: The Aurelia Group Mineral Resource Estimate utilises A$120/tonne NSR cut-off mineable shapes that include internal 

dilution. Net smelter return (NSR) is an estimate of the net recoverable value per tonne including offsite costs, payables, 

royalties and metal recoveries. Tonnage estimates have been rounded to nearest 1,000 tonnes. 

Group Reserve Estimate 

Table 2. Aurelia Group Ore Reserve Estimate as at 30 June 2019 

Class 

Proved 

Probable 

Total Reserves 

Tonnes 

 (kt) 

376 

4,034 

4,410 

NSR 

(A$/t) 

181 

227 

223 

Au 

(g/t) 

1.2 

2.0 

1.9 

Cu 

(%) 

1.7 

0.6 

0.7 

Pb 

(%) 

0.3 

2.4 

2.2 

Zn 

(%) 

0.6 

3.0 

2.8 

Ag 

(g/t) 

11 

23 

22 

Note: When comparing Mineral Resources to Ore Reserves, it should be noted that Ore Reserves are estimated using 

lower metals price assumptions and higher NSR cut-off values.  The Ore Reserve Estimate utilises an A$150/tonne NSR 

cut-off for Peak, Perseverance, Great Cobar and an A$130/tonne NSR for Chesney, New Cobar, Jubilee and the Hera 

Mine.  Metal price assumptions are contained in the body of this report.  Tonnage estimates have been rounded to nearest 

1,000 tonnes. 

MINERAL RESOURCE ESTIMATES 

Table 3. Peak Gold Mines Mineral Resource Estimate as at 30 June 2019 

Tonnes  

(kt) 

1,919 

7,402 

4,889 

14,210 

NSR 

(A$/t) 

204 

219 

207 

213 

Cu 

(%) 

1.3 

1.3 

1.6 

1.4 

Zn 

(%) 

0.7 

1.3 

0.8 

1.1 

Ag 

(g/t) 

11 

10 

7 

9 

Note: The Peak Gold Mines Mineral Resource Estimate utilises A$120/tonne NSR cut-off mineable shapes that include 

internal dilution. Tonnage estimates have been rounded to nearest 1,000 tonnes.  

Table 4. Hera Mine Mineral Resource Estimate as at 30 June 2019 

Au 

(g/t) 

1.7 

1.6 

1.3 

1.5 

Au 

 (g/t) 

2.2 

1.4 

2.3 

1.8 

Pb 

(%) 

0.6 

1.1 

0.5 

0.9 

Pb 

 (%) 

2.8 

2.9 

1.6 

2.8 

Class 

Measured 

Indicated 

Inferred 

Total 

Class 

Measured 

Indicated 

Inferred 

Total 

Tonnes  

(kt) 

977 

957 

126 

2,061 

NSR 

(A$/t) 

238 

216 

215 

227 

Zn 

 (%) 

4.2 

4.4 

2.8 

4.2 

Ag 

 (g/t) 

23 

44 

39 

34 

Note: The Hera Mine Mineral Resource Estimate utilises A$120/tonne NSR cut-off mineable shapes that include internal 

dilution. Tonnage estimates have been rounded to nearest 1,000 tonnes.  

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  9

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMPETENT PERSONS STATEMENT

Hera Mineral Resource Estimate 

Compilation of the drilling database, assay validation and geological interpretations for the Mineral Resource update were completed by Adam 
McKinnon, BSc (Hons), PhD, MAusIMM, who is a full time employee of Aurelia Metals Limited. The Mineral Resource estimate has been 
prepared by Rupert Osborn, BSc, MSc, MAIG, who is an employee of H&S Consultants Pty Ltd. Both Dr McKinnon and Mr Osborn have
sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are 
undertaking to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, 
Mineral Resources and Ore Reserves’. Dr McKinnon and Mr Osborn consent to the inclusion in this report of the matters based on their 
information in the form and context in which it appears. 

Hera Ore Reserve Estimate 

The Ore Reserve Estimate was compiled by Givemore Kamupita, Senior Mining Engineer at Hera Mine. Mr Kamupita has worked at 
polymetallic mines including Olympic Dam. He has also worked at KCGM and several mines in Africa. Mr Kamupita is a mining engineer with a 
BE Mining Eng. obtained at the University of Newcastle Upon Tyne (UK), MSc Mining Engineering (UNSW), Master of Business Administration 
(UNISA) and is completing a Masters in Geostatistics with Adelaide University. Mr Kamupita has worked in underground hard rock mines since 
1984 with 35 years’ experience.

Mr Kamupita has sufficient experience which is relevant to the style of mineralisation, type of deposit and mining method under consideration 
and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for 
Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Kamupita is a member of the AusIMM with whom he recently 
completed a Professional Certificate JORC Code Reporting course and also holds both NSW and WA Underground Mining Engineering 
Manager Certificates. 

Anthony Allman, from ANTCIA Consulting Pty Ltd, has assisted Hera Mine in the preparation of the stope designs, mine designs, sensitivity 
analysis and scheduling of the 2019 Hera Mine Ore Reserve Estimate. Mr Allman is a mining engineer with a BE Min Eng. obtained at the 
University of NSW and has worked in underground hard rock mines for nearly 30 years. Mr Allman is a Chartered Professional and member of 
the AusIMM. The Ore Reserve Estimate was produced by Mr Kamupita, who is site based, with assistance from Mr Allman. 

Peak Mineral Resource Estimate 

Compilation of the drilling database, assay validation and geological interpretations for the Mineral Resource update were 
completed by Chris Powell, BSc, MAusIMM, who is a full time employee of Aurelia Metals Limited. The Mineral Resource 
estimate has been prepared by Chris Powell and Arnold van der Heyden, who is the Director of H & S Consultants Pty Ltd. 
Both Mr Powell and Mr van der Heyden have sufficient experience which is relevant to the style of mineralisation and type of 
deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 
2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Powell 
and Mr Van der Heyden consent to the inclusion in this report of the matters based on their information in the form and context 
in which it appears.  

Peak Ore Reserve Estimate 

The Ore Reserves were compiled by Brett Fowler, who is a full time employee of Peak Gold Mines Pty Ltd. Mr Fowler has over +30 years’ 
experience in both underground hard rock and surface mines since 1983 and has worked at underground operations including Nifty Copper 
Mine, Otter Juan, Coronet, Miitel and Mariners Nickel mines and Higginsville Gold Mine and Kalgoorlie Consolidated Gold Mine in Western 
Australia. Mr Fowler is a dual qualified mining engineer and mining geologist with a Graduate Diploma (Mining) and a Bachelor of Applied 
Science (Mining Geology) obtained at Curtin University (WA School of Mines) and also holds a Graduate Diploma in Computing (Murdoch 
University) and Masters of Business Administration (Curtin University). 

Mr Fowler has sufficient experience which is relevant to the style of mineralisation, type of deposit and mining method under consideration and 
to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting 
of Exploration Results, Mineral Resources and Ore Reserves’. Mr Fowler is a member of the AusIMM and also holds a WA First Class Mine 
Managers Certificate of Competency and a NSW Practising Certificate Engineering Manager Underground Mines. 

Anthony Allman, from ANTCIA Consulting Pty Ltd, has assisted Peak Gold Mines in the preparation of the stope designs, mine designs, 
sensitivity analysis and scheduling of the 2019 Peak Gold Mines Ore Reserve Estimate. Mr Allman is a mining engineer with a BE Min Eng. 
obtained at the University of NSW and has worked in underground hard rock mines for nearly 30 years. Mr Allman is a Chartered Professional 
and member of the AusIMM. The Ore Reserve Estimate was produced by Mr Fowler, who is site based, with assistance from Mr Allman.  

Nymagee Mineral Resource Estimate 

Compilation of the drilling database, assay validation and geological interpretations for the Mineral Resource update were completed by Adam 
McKinnon, BSc (Hons), PhD, MAusIMM, who is a full time employee of Aurelia Metals Limited. The Mineral Resource estimate has been 
prepared by Arnold van der Heyden, BSc, MAusIMM (CPGeo), MAIG, who is an employee of H&S Consultants Pty Ltd. Both Dr McKinnon and 
Mr van der Heyden have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to 
the activity which they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting 
of Exploration Results, Mineral Resources and Ore Reserves’. Dr McKinnon and Mr van der Heyden consent to the inclusion in this report of 
the matters based on their information in the form and context in which it appears. 

SAFETY, ENVIRONMENT AND COMMUNITY  

The Company prioritises health and safety, being environmentally responsible and supporting our communities.  

Operating responsibly protects our employees, the communities in which we operate and supports the long-term 

success of our Company. 

1.  Health and Safety 

The health, safety and wellbeing of our employees and contractors is of paramount importance to us and we 

believe that every injury is preventable and that no task is so important that it cannot be done safely. 

Over the reporting period, significant improvement in safety has been achieved at Hera through working with the 

mining contractor to improve the focus on safe systems of work, improved controls and increased reporting of 

lead safety indicators. 

The recorded safety performance at Peak reduced in the year largely due to initial training and competency 

issues associated with the introduction of contract mining workforce.  To improve performance, there has been a 

renewed focus on workplace hazard reporting and action plans, fatigue management, increased visible safety 

leadership, improved communication channels between the contractor and site management and root cause 

analysis of all reportable incidents. 

TRIFR (Total Recordable Injury Frequency Rate) 

Hera 

Peak 

Group 

FY18 

16.5 

8.9 

11.4 

FY19 

5.4 

14.9 

11.5 

TRIFR - Total Recordable Injury Frequency Rate is the number of injuries per million hrs worked.  Injuries are 

defined as all incidents requiring professional medical treatment (restricted duties and lost time injuries).  

The Company provides all employees with free and anonymous access to an Employee Assistance Program 

which provides the services of trained counsellors and is also a proud sponsor of the Cobar Men’s Shed, which 

supports mental health in the Cobar district. 

Emergency Response 

As part of our preparedness for Emergency Response, specific processes and procedures have been reviewed 

and established and our management teams and emergency responders are provided with training. The 

Company tested the adequacy of these procedures during the reporting period. 

Training extends to collaborating with industry through competition.  Subsequent to the end of the reporting 

period, the Company participated in the Underground Mine Emergency Response Competition in West 

Wyalong.  The Company’s Emergency Response Team received a number of awards including overall scenario 

winner for Fire and Rescue, Road Crash Rescue, Best Captain, Best Medic and Best Squad Person.  Continual 

effort is applied in ensuring the Company’s emergency response procedures and preparedness are appropriate.  

2.  Environment  

Efficient Water Management 

The Company seeks to minimise the environmental impacts of our operating activities.  Efficient and responsible 

use of water has been a critical management issue during the past year. 

As a direct result of the ongoing drought affecting large parts of NSW, in particular our local communities at 

Nymagee and Cobar, water management remains a key issue.  The Company has been actively working with 

local councils and water authorities to implement water saving initiatives at its operations.  The Company has 

successfully reduced its water consumption and continues to work with the community on potential solutions for 

town water supplies.  

In order to support responsible water use, the following modifications to development consent have been 

submitted to the Department of Planning, Industry and Environment have been applied for: 

(i) 

proposals to harvest groundwater from historic mines at Hera (Nymagee) and Peak (Great Cobar), with the 

benefit of lower reliance on bore water (Hera) and reliance on water allocations from WaterNSW (Peak); 

and  

(ii)  A proposal at Hera to construct a water dam adjacent to the tailing’s storage facility, to improve water 

recycling from the tailing’s storage facility. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  11

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  12

COMPETENT PERSONS STATEMENT

Hera Mineral Resource Estimate 

Compilation of the drilling database, assay validation and geological interpretations for the Mineral Resource update were completed by Adam 

McKinnon, BSc (Hons), PhD, MAusIMM, who is a full time employee of Aurelia Metals Limited. The Mineral Resource estimate has been 

prepared by Rupert Osborn, BSc, MSc, MAIG, who is an employee of H&S Consultants Pty Ltd. Both Dr McKinnon and Mr Osborn have

sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are 

undertaking to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, 

Mineral Resources and Ore Reserves’. Dr McKinnon and Mr Osborn consent to the inclusion in this report of the matters based on their 

information in the form and context in which it appears. 

Hera Ore Reserve Estimate 

The Ore Reserve Estimate was compiled by Givemore Kamupita, Senior Mining Engineer at Hera Mine. Mr Kamupita has worked at 

polymetallic mines including Olympic Dam. He has also worked at KCGM and several mines in Africa. Mr Kamupita is a mining engineer with a 

BE Mining Eng. obtained at the University of Newcastle Upon Tyne (UK), MSc Mining Engineering (UNSW), Master of Business Administration 

(UNISA) and is completing a Masters in Geostatistics with Adelaide University. Mr Kamupita has worked in underground hard rock mines since 

1984 with 35 years’ experience.

Mr Kamupita has sufficient experience which is relevant to the style of mineralisation, type of deposit and mining method under consideration 

and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for 

Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Kamupita is a member of the AusIMM with whom he recently 

completed a Professional Certificate JORC Code Reporting course and also holds both NSW and WA Underground Mining Engineering 

Manager Certificates. 

Anthony Allman, from ANTCIA Consulting Pty Ltd, has assisted Hera Mine in the preparation of the stope designs, mine designs, sensitivity 

analysis and scheduling of the 2019 Hera Mine Ore Reserve Estimate. Mr Allman is a mining engineer with a BE Min Eng. obtained at the 

University of NSW and has worked in underground hard rock mines for nearly 30 years. Mr Allman is a Chartered Professional and member of 

the AusIMM. The Ore Reserve Estimate was produced by Mr Kamupita, who is site based, with assistance from Mr Allman. 

Peak Mineral Resource Estimate 

Compilation of the drilling database, assay validation and geological interpretations for the Mineral Resource update were 

completed by Chris Powell, BSc, MAusIMM, who is a full time employee of Aurelia Metals Limited. The Mineral Resource 

estimate has been prepared by Chris Powell and Arnold van der Heyden, who is the Director of H & S Consultants Pty Ltd. 

Both Mr Powell and Mr van der Heyden have sufficient experience which is relevant to the style of mineralisation and type of 

deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 

2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Powell 

and Mr Van der Heyden consent to the inclusion in this report of the matters based on their information in the form and context 

in which it appears.  

Peak Ore Reserve Estimate 

The Ore Reserves were compiled by Brett Fowler, who is a full time employee of Peak Gold Mines Pty Ltd. Mr Fowler has over +30 years’ 

experience in both underground hard rock and surface mines since 1983 and has worked at underground operations including Nifty Copper 

Mine, Otter Juan, Coronet, Miitel and Mariners Nickel mines and Higginsville Gold Mine and Kalgoorlie Consolidated Gold Mine in Western 

Australia. Mr Fowler is a dual qualified mining engineer and mining geologist with a Graduate Diploma (Mining) and a Bachelor of Applied 

Science (Mining Geology) obtained at Curtin University (WA School of Mines) and also holds a Graduate Diploma in Computing (Murdoch 

University) and Masters of Business Administration (Curtin University). 

Mr Fowler has sufficient experience which is relevant to the style of mineralisation, type of deposit and mining method under consideration and 

to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting 

of Exploration Results, Mineral Resources and Ore Reserves’. Mr Fowler is a member of the AusIMM and also holds a WA First Class Mine 

Managers Certificate of Competency and a NSW Practising Certificate Engineering Manager Underground Mines. 

Anthony Allman, from ANTCIA Consulting Pty Ltd, has assisted Peak Gold Mines in the preparation of the stope designs, mine designs, 

sensitivity analysis and scheduling of the 2019 Peak Gold Mines Ore Reserve Estimate. Mr Allman is a mining engineer with a BE Min Eng. 

obtained at the University of NSW and has worked in underground hard rock mines for nearly 30 years. Mr Allman is a Chartered Professional 

and member of the AusIMM. The Ore Reserve Estimate was produced by Mr Fowler, who is site based, with assistance from Mr Allman.  

Nymagee Mineral Resource Estimate 

Compilation of the drilling database, assay validation and geological interpretations for the Mineral Resource update were completed by Adam 

McKinnon, BSc (Hons), PhD, MAusIMM, who is a full time employee of Aurelia Metals Limited. The Mineral Resource estimate has been 

prepared by Arnold van der Heyden, BSc, MAusIMM (CPGeo), MAIG, who is an employee of H&S Consultants Pty Ltd. Both Dr McKinnon and 

Mr van der Heyden have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to 

the activity which they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting 

of Exploration Results, Mineral Resources and Ore Reserves’. Dr McKinnon and Mr van der Heyden consent to the inclusion in this report of 

the matters based on their information in the form and context in which it appears. 

SAFETY, ENVIRONMENT AND COMMUNITY  

The Company prioritises health and safety, being environmentally responsible and supporting our communities.  
Operating responsibly protects our employees, the communities in which we operate and supports the long-term 
success of our Company. 

1.  Health and Safety 

The health, safety and wellbeing of our employees and contractors is of paramount importance to us and we 
believe that every injury is preventable and that no task is so important that it cannot be done safely. 

Over the reporting period, significant improvement in safety has been achieved at Hera through working with the 
mining contractor to improve the focus on safe systems of work, improved controls and increased reporting of 
lead safety indicators. 

The recorded safety performance at Peak reduced in the year largely due to initial training and competency 
issues associated with the introduction of contract mining workforce.  To improve performance, there has been a 
renewed focus on workplace hazard reporting and action plans, fatigue management, increased visible safety 
leadership, improved communication channels between the contractor and site management and root cause 
analysis of all reportable incidents. 

TRIFR (Total Recordable Injury Frequency Rate) 
Hera 
Peak 
Group 

FY18 
16.5 
8.9 
11.4 

FY19 
5.4 
14.9 
11.5 

TRIFR - Total Recordable Injury Frequency Rate is the number of injuries per million hrs worked.  Injuries are 
defined as all incidents requiring professional medical treatment (restricted duties and lost time injuries).  

The Company provides all employees with free and anonymous access to an Employee Assistance Program 
which provides the services of trained counsellors and is also a proud sponsor of the Cobar Men’s Shed, which 
supports mental health in the Cobar district. 

Emergency Response 

As part of our preparedness for Emergency Response, specific processes and procedures have been reviewed 
and established and our management teams and emergency responders are provided with training. The 
Company tested the adequacy of these procedures during the reporting period. 

Training extends to collaborating with industry through competition.  Subsequent to the end of the reporting 
period, the Company participated in the Underground Mine Emergency Response Competition in West 
Wyalong.  The Company’s Emergency Response Team received a number of awards including overall scenario 
winner for Fire and Rescue, Road Crash Rescue, Best Captain, Best Medic and Best Squad Person.  Continual 
effort is applied in ensuring the Company’s emergency response procedures and preparedness are appropriate.  

2.  Environment  

The Company seeks to minimise the environmental impacts of our operating activities.  Efficient and responsible 
use of water has been a critical management issue during the past year. 

Efficient Water Management 

As a direct result of the ongoing drought affecting large parts of NSW, in particular our local communities at 
Nymagee and Cobar, water management remains a key issue.  The Company has been actively working with 
local councils and water authorities to implement water saving initiatives at its operations.  The Company has 
successfully reduced its water consumption and continues to work with the community on potential solutions for 
town water supplies.  

In order to support responsible water use, the following modifications to development consent have been 
submitted to the Department of Planning, Industry and Environment have been applied for: 

(i) 

proposals to harvest groundwater from historic mines at Hera (Nymagee) and Peak (Great Cobar), with the 
benefit of lower reliance on bore water (Hera) and reliance on water allocations from WaterNSW (Peak); 
and  

(ii)  A proposal at Hera to construct a water dam adjacent to the tailing’s storage facility, to improve water 

recycling from the tailing’s storage facility. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  11

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  12

Review of Environmental Factors 

A Review of Environmental Factors was submitted to the Resources Regulator to allow for further exploration of 
Great Cobar, an undeveloped project at the Peak Mine.  The application includes: 

(i) 

a proposed exploration decline from New Cobar to Great Cobar to allow for further exploration drilling and 
extraction of a bulk ore sample for metallurgical test work. The application has been approved by the 
Resources Regulator.  An outstanding water licencing approval is required from the Natural Resources 
Access Regulator prior to works commencing.  

(ii)  The Company has identified several zones of mineralisation near the New Cobar mine which may be 
economically viable (Gladstone and Great Cobar).  The Company has commenced the development 
consent process to allow access to these areas.  Development consent, which will involve the production of 
an Environmental Impact Statement, which details the environmental impacts and mitigation measures, is 
likely to take several years.  Community feedback, from the consultation phase of the consent process, has 
been incorporated into the proposed plans. 

Environmental Compliance 

The Company is subject to environmental regulations through various licences and approvals issued by several 
regulatory bodies including: Department of Planning, Industry and Environment; NSW Environmental Protection 
Authority; Cobar Shire Council; and the Resources Regulator.  The Company strives to maintain compliance to 
all regulatory licences and approvals through regular environmental monitoring.  Environmental incidents are 
reported to the various regulatory bodies without delay.  There were two cases of significant non-compliances to 
these licences during the reporting period: 

• 

• 

The Hera Mine process water dam polyurethane liner was breached resulting in a loss of process water 
from the dam.  The process water was contained within the disturbance footprint and did not discharge 
to the external environment.  The liner has since been repaired and the dam reinstated; 
The Peak Mine discharged mine water outside of compliance with licence conditions. This was an 
administrative issue with the environmental licence and Peak Mine has provided all information 
requested by the NSW Environmental Protection Authority.  The mine water was being discharged to a 
licenced facility designed to capture water and did not discharge to the environment. 

3.  Community 

The Company recognises the importance of supporting local communities.  Over the past year, active 
engagement with the Cobar and Nymagee communities has increased based on a relationship of transparency.  
Local issues and concerns are actively considered in the management of the business.  Features of the approach 
include: 

•  Building sustaining relationships through local employment, engagement in community activities and 

supporting local community organisations, clubs and events; 

•  Being transparent with the communities and government authorities through prompt and transparent 

• 

reporting of environmental issues;  
The establishment of the community liaison committee at Peak and the ongoing operation of the 
community committee at Hera; and 

•  Engaging the local community in the decision-making process associated with ongoing and proposed 

operations. 

In this reporting period, donations of approximately $200,000 were made to various local events and clubs 
including: 

• 

The Nymagee Christmas Tree celebration; The Cobar Grey Mardi Gras; The Nymagee Gymkhana; The 
Nymagee Cricket Club; A Night for our Farmers; The Bill Brennen Centre; The Cobar Public School P & 
C for purchase of new play equipment; the Hermidale Primary School’s new Yarning Circle (outdoor 
learning classroom) and Cobar Men’s Shed. 

Community events that were supported included: 

• 

The Annual Nymagee Flower Show; The Nymagee Progress Association meetings; The Cobar Tourism 
Committee; The Cobar Peaks of Colour Fun Run; The Great Cobar Business Awards; Cobar Festival of 
the Miners Ghost and The Science and Engineering Outback Challenge. 

DIRECTORS' REPORT 

The following report is submitted in respect of the results of Aurelia Metals Limited (‘Aurelia’ or ‘the Company’) 

and  its  subsidiaries,  together  the  consolidated  group  (‘Group’),  for  the  financial  year  ended  30  June  2019, 

together with the state of affairs of the Group as at that date. 

1. 

DIRECTORS AND OFFICERS 

The names and details of the Company's Directors in office during the financial year and until the date of this 

report are set out below. Directors were in office for this entire period unless otherwise stated. 

Colin Johnstone 

Executive Chairman and Acting Chief Executive Officer 

Mr  Johnstone  is  a  mining  engineer  with  extensive  experience  operating  mines  in  Australia,  Asia,  Africa  and 

Canada.  He  held  the  position  of  Chief  Operating  Officer  for  African  copper  miner  Equinox  Minerals  until  its 

acquisition  by  Barrick  Gold  in  mid-2011,  and  Chief  Operating  Officer  for  China-focussed  gold  miner  Sino  Gold 

Mining until its acquisition by Eldorado in late 2009 

Mr Johnstone’s career spans more than 30 years and he has served as General Manager of some of Australia’s 

largest  mines  including  the  Kalgoorlie  Super  Pit  in  Western  Australia,  Olympic  Dam  in  South  Australia  and 

Northparkes  in  New  South  Wales.  He  is  currently  a  Non-Executive  Director  of  Evolution  Mining  (ASX:  EVN), 

Australia’s second largest gold mining company. 

Mr Johnstone was appointed as a Director and Chairman of the Company on 28 November 2016. 

Due to the departure of the Company’s former Managing Director and CEO, Mr Johnstone assumed an interim 

role in an executive capacity as Executive Chairman and Acting CEO from 1 May 2019. 

Lawrence Conway 

Independent Non-Executive Director 

Mr Conway has more than 29 years’ experience in the resources sector across a diverse range of commercial, 

financial  and  operational  activities.  He  has  held  a  mix  of  corporate  and  operational  commercial  roles  within 

Australia, Papua New Guinea and Chile with Evolution Mining, Newcrest and BHP Billiton. 

Mr Conway is currently Evolution Mining’s Finance Director and Chief Financial Officer (ASX: EVN). Mr Conway 

was appointed as a Director of the Company on 1 June 2017. 

Susan Corlett 

Independent Non-Executive Director 

Ms Corlett is a geologist with 25 years’ experience in all facets of exploration and mine production. She was most 

recently  an  Investment  Director  for  global  mining  private  equity  fund,  Pacific  Road  Capital  Ltd  and  worked  in 

mining  credit  risk  management  and  project  finance  for  Standard  Bank  Limited,  Deustche  Bank  and  Macquarie 

Bank. Ms Corlett has a Bachelor of Science (Hons. Geology) from the University of Melbourne, is a graduate of 

the Australian Institute of Company Directors and a member of the AusIMM. 

Ms Corlett has served on ASX and TSX listed mining company boards and is currently a Trustee of the Australian 

Institute  of  Mining  and  Metallurgy  (AusIMM)  Education  Endowment  Fund,  a  Director  of  The  Foundation  for 

National Parks and Wildlife (Chair of Risk and Audit), a Director of The David Burgess Foundation and a Non-

executive Director of Iluka Resources Ltd (ASX: ILU). 

Ms Corlett was appointed as a Director of the Company on 3 October 2018. 

Paul Espie 

Independent Non-Executive Director 

Mr  Espie  was  the  founding  principal  of  Pacific  Road  Capital,  a  private  equity  fund  manager  in  the  resources 

sector.  He  was  Chairman  of  Oxiana  Limited  during  the  development  of  the  Sepon  copper/gold  project  in  Laos 

(2000 to 2003); prior to that Chairman of Cobar Mines Pty Ltd after a management buy-out in 1993. Previously 

manager of Bank of America operations in Australia and Chairman of the Australian Infrastructure Fund. Mr Espie 

is  a  Fellow  of  the  Australian  Institute  of  Company  Directors,  Trustee  of  the  Australian  Institute  of  Mining  & 

Metallurgy, Educational Endowment Fund, a Director of the Menzies Research Centre and Chairman of Empire 

Energy Limited (ASX:EEG). 

Mr Espie was appointed as a Director of the Company on 10 December 2013. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  13

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  14

 
 
 
 
 
 
 
 
 
 
Review of Environmental Factors 

A Review of Environmental Factors was submitted to the Resources Regulator to allow for further exploration of 

Great Cobar, an undeveloped project at the Peak Mine.  The application includes: 

(i) 

a proposed exploration decline from New Cobar to Great Cobar to allow for further exploration drilling and 

extraction of a bulk ore sample for metallurgical test work. The application has been approved by the 

Resources Regulator.  An outstanding water licencing approval is required from the Natural Resources 

Access Regulator prior to works commencing.  

(ii)  The Company has identified several zones of mineralisation near the New Cobar mine which may be 

economically viable (Gladstone and Great Cobar).  The Company has commenced the development 

consent process to allow access to these areas.  Development consent, which will involve the production of 

an Environmental Impact Statement, which details the environmental impacts and mitigation measures, is 

likely to take several years.  Community feedback, from the consultation phase of the consent process, has 

been incorporated into the proposed plans. 

Environmental Compliance 

The Company is subject to environmental regulations through various licences and approvals issued by several 

regulatory bodies including: Department of Planning, Industry and Environment; NSW Environmental Protection 

Authority; Cobar Shire Council; and the Resources Regulator.  The Company strives to maintain compliance to 

all regulatory licences and approvals through regular environmental monitoring.  Environmental incidents are 

reported to the various regulatory bodies without delay.  There were two cases of significant non-compliances to 

these licences during the reporting period: 

The Hera Mine process water dam polyurethane liner was breached resulting in a loss of process water 

from the dam.  The process water was contained within the disturbance footprint and did not discharge 

to the external environment.  The liner has since been repaired and the dam reinstated; 

The Peak Mine discharged mine water outside of compliance with licence conditions. This was an 

administrative issue with the environmental licence and Peak Mine has provided all information 

requested by the NSW Environmental Protection Authority.  The mine water was being discharged to a 

licenced facility designed to capture water and did not discharge to the environment. 

3.  Community 

include: 

operations. 

including: 

The Company recognises the importance of supporting local communities.  Over the past year, active 

engagement with the Cobar and Nymagee communities has increased based on a relationship of transparency.  

Local issues and concerns are actively considered in the management of the business.  Features of the approach 

•  Building sustaining relationships through local employment, engagement in community activities and 

supporting local community organisations, clubs and events; 

•  Being transparent with the communities and government authorities through prompt and transparent 

reporting of environmental issues;  

community committee at Hera; and 

The establishment of the community liaison committee at Peak and the ongoing operation of the 

•  Engaging the local community in the decision-making process associated with ongoing and proposed 

In this reporting period, donations of approximately $200,000 were made to various local events and clubs 

The Nymagee Christmas Tree celebration; The Cobar Grey Mardi Gras; The Nymagee Gymkhana; The 

Nymagee Cricket Club; A Night for our Farmers; The Bill Brennen Centre; The Cobar Public School P & 

C for purchase of new play equipment; the Hermidale Primary School’s new Yarning Circle (outdoor 

learning classroom) and Cobar Men’s Shed. 

Community events that were supported included: 

The Annual Nymagee Flower Show; The Nymagee Progress Association meetings; The Cobar Tourism 

Committee; The Cobar Peaks of Colour Fun Run; The Great Cobar Business Awards; Cobar Festival of 

the Miners Ghost and The Science and Engineering Outback Challenge. 

• 

• 

• 

• 

• 

DIRECTORS' REPORT 

The following report is submitted in respect of the results of Aurelia Metals Limited (‘Aurelia’ or ‘the Company’) 
and  its  subsidiaries,  together  the  consolidated  group  (‘Group’),  for  the  financial  year  ended  30  June  2019, 
together with the state of affairs of the Group as at that date. 

1. 

DIRECTORS AND OFFICERS 

The names and details of the Company's Directors in office during the financial year and until the date of this 
report are set out below. Directors were in office for this entire period unless otherwise stated. 

Colin Johnstone 
Executive Chairman and Acting Chief Executive Officer 

Mr  Johnstone  is  a  mining  engineer  with  extensive  experience  operating  mines  in  Australia,  Asia,  Africa  and 
Canada.  He  held  the  position  of  Chief  Operating  Officer  for  African  copper  miner  Equinox  Minerals  until  its 
acquisition  by  Barrick  Gold  in  mid-2011,  and  Chief  Operating  Officer  for  China-focussed  gold  miner  Sino  Gold 
Mining until its acquisition by Eldorado in late 2009 

Mr Johnstone’s career spans more than 30 years and he has served as General Manager of some of Australia’s 
largest  mines  including  the  Kalgoorlie  Super  Pit  in  Western  Australia,  Olympic  Dam  in  South  Australia  and 
Northparkes  in  New  South  Wales.  He  is  currently  a  Non-Executive  Director  of  Evolution  Mining  (ASX:  EVN), 
Australia’s second largest gold mining company. 

Mr Johnstone was appointed as a Director and Chairman of the Company on 28 November 2016. 

Due to the departure of the Company’s former Managing Director and CEO, Mr Johnstone assumed an interim 
role in an executive capacity as Executive Chairman and Acting CEO from 1 May 2019. 

Lawrence Conway 
Independent Non-Executive Director 

Mr Conway has more than 29 years’ experience in the resources sector across a diverse range of commercial, 
financial  and  operational  activities.  He  has  held  a  mix  of  corporate  and  operational  commercial  roles  within 
Australia, Papua New Guinea and Chile with Evolution Mining, Newcrest and BHP Billiton. 

Mr Conway is currently Evolution Mining’s Finance Director and Chief Financial Officer (ASX: EVN). Mr Conway 
was appointed as a Director of the Company on 1 June 2017. 

Susan Corlett 
Independent Non-Executive Director 

Ms Corlett is a geologist with 25 years’ experience in all facets of exploration and mine production. She was most 
recently  an  Investment  Director  for  global  mining  private  equity  fund,  Pacific  Road  Capital  Ltd  and  worked  in 
mining  credit  risk  management  and  project  finance  for  Standard  Bank  Limited,  Deustche  Bank  and  Macquarie 
Bank. Ms Corlett has a Bachelor of Science (Hons. Geology) from the University of Melbourne, is a graduate of 
the Australian Institute of Company Directors and a member of the AusIMM. 

Ms Corlett has served on ASX and TSX listed mining company boards and is currently a Trustee of the Australian 
Institute  of  Mining  and  Metallurgy  (AusIMM)  Education  Endowment  Fund,  a  Director  of  The  Foundation  for 
National Parks and Wildlife (Chair of Risk and Audit), a Director of The David Burgess Foundation and a Non-
executive Director of Iluka Resources Ltd (ASX: ILU). 

Ms Corlett was appointed as a Director of the Company on 3 October 2018. 

Paul Espie 
Independent Non-Executive Director 

Mr  Espie  was  the  founding  principal  of  Pacific  Road  Capital,  a  private  equity  fund  manager  in  the  resources 
sector.  He  was  Chairman  of  Oxiana  Limited  during  the  development  of  the  Sepon  copper/gold  project  in  Laos 
(2000 to 2003); prior to that Chairman of Cobar Mines Pty Ltd after a management buy-out in 1993. Previously 
manager of Bank of America operations in Australia and Chairman of the Australian Infrastructure Fund. Mr Espie 
is  a  Fellow  of  the  Australian  Institute  of  Company  Directors,  Trustee  of  the  Australian  Institute  of  Mining  & 
Metallurgy, Educational Endowment Fund, a Director of the Menzies Research Centre and Chairman of Empire 
Energy Limited (ASX:EEG). 

Mr Espie was appointed as a Director of the Company on 10 December 2013. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  13

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  14

 
 
 
 
 
 
 
 
 
 
DIRECTORS' REPORT (CONTINUED) 

1.  DIRECTORS AND OFFICERS (CONTINUED) 

Paul Harris 
Independent Non-Executive Director and Lead Independent Director 

Mr  Harris  has  more  than  26  years’  experience  in  financial  markets  and  investment  banking,  including  advising 
mining corporates on strategy, mergers and acquisitions, and capital markets, including as Managing Director  - 
Head of Metals and Mining at Citi. Mr Harris has a Master of Engineering (Mining) and a Bachelor of Commerce 
(Finance) and is a graduate of the Australian Institute of Company Directors. 

Mr Harris is the non-executive Chairman of Aeon Metals Limited (ASX: AML). 

Mr  Harris  was  appointed  as  a  Director  of  the  Company  on  17  December  2018  and  appointed,  during  the 
leadership  transition  phase  associated  with  the  departure  of  the  former  Managing  Director  &  CEO,  as  Lead 
Independent Director from 1 May 2019. 

Michael Menzies 
Executive Director & Acting Chief Operating Officer 

Mr  Menzies  is  a  law  graduate  who  has  over  35  years  of  experience  in  a  variety  of  industrial,  operational  and 
managerial roles within the mining industry in Australia and off- shore, in base metals, gold, mineral sands and 
coal. He has worked with Renison Goldfields, CRA Limited and MIM Holdings where he was Executive General 
Manager  Mining. Following  a period  employed in  Private  Equity  in project  evaluation and  investment advice, in 
recent  times  Mr  Menzies  has  been  engaged  in  mining  consultancy  work  primarily  consulting  to  Glencore.  Mr 
Menzies  is  a  former  Director  of  Australian  Mines  and  Metals  Association  and  former  Vice-President  of  the 
Queensland Mining Council. 

Mr Menzies was appointed as a Director of the Company on 15 December 2015. He was previously a Director of 
the Company from 26 March 2013 to 26 June 2015. 

Due to the departure of the Company’s former Managing Director and CEO, Mr Menzies assumed an interim role 
in an executive capacity as Executive Director and Acting Chief Operating Officer from 1 May 2019. 

Timothy Churcher 
Chief Financial Officer and Company Secretary 

Mr Churcher is a senior finance professional with over 30 years’ experience in the mining industry in a range of 
financial and technical disciplines. 

His finance experience includes roles as Chief Financial Officer of Evolution Mining Limited and Chief Financial 
Officer  &  Company  Secretary  of  Unity  Mining  Limited.  Prior  to  this,  Tim  was  employed  in  private  equity 
investment with Renaissance Capital Limited and prior to that in stockbroking with Goldman Sachs (formerly JB 
Were  &  Son  Limited).  He  is  an  Associate  of  CPA  Australia  and  has  a  Masters  degree  from  Imperial  College 
London and an MBA from the Cranfield School of Management in the UK. 

Mr Churcher was appointed as the Company’s Chief Financial Officer on 30 September 2014 and was appointed 
as Company Secretary on 20 December 2016. 

Gillian Nairn 
Company Secretary 

Ms Nairn has over 20 years legal and governance experience in various listed and public companies, as well as 
in private practice. 

Ms  Nairn  is  an  employee  of Company  Matters  Pty  Ltd,  a  company  secretarial service  provider.  Prior  to  joining 
Company Matters, Ms Nairn held various company secretarial roles, predominantly with listed entities, in a variety 
of sectors including manufacturing, oil and gas, professional services and education. 

Ms  Nairn  holds  a  Bachelor  of  Laws  and  a  Bachelor  of  Arts,  a  Graduate  Diploma  in  Applied  Corporate 
Governance and is  an  Associate  of  the  Governance Institute  of  Australia  and  a member of  the Law  Society  of 
NSW. 

Ms Nairn was appointed as a Company Secretary on 3 June 2019. 

DIRECTORS' REPORT (CONTINUED) 

1.  DIRECTORS AND OFFICERS (CONTINUED) 

Directors and Officers who no longer held office at the end of the year are as follows: 

James Simpson (resigned) 

Managing Director and Chief Executive Officer 

Mr Simpson is a Mining Engineer with over 30 years’ experience, specialising in underground metalliferous 

mining. 

Mr  Simpson  was  appointed  as  Managing  Director  of  the  Company  on  1  August  2016  and  appointed  as  Chief 

Executive  Officer  on  1  September  2016.  Mr  Simpson  ceased  as  Chief  Executive  Officer  on  1  May  2019  and 

resigned as a Director on 22 May 2019. 

Clifford Tuck (resigned) 

Non- Executive Director 

Mr Tuck is a corporate and transactional lawyer, and governance professional, with more than fifteen years’ 

experience in the resources sector. 

Mr Tuck was appointed as a Director of the Company on 24 May 2018 and resigned on 30 September 2018. 

2. 

DIRECTORS' INTERESTS 

At 30 June 2019 the interests of the Directors in the shares and other equity securities of the Company were: 

Ordinary Shares 

Options 

Performance 

Rights 

Directors 

Johnstone,Colin 

Conway,Lawrence 

Corlett, Susan 

Espie, Paul 

Harris, Paul 

Menzies, Michael 

Total 

1,000,001 

171,429 

33,731 

150,000 

- 

633,929 

1,989,090 

3.  MEETINGS OF DIRECTORS 

The number of meetings of Directors (including meetings of committees of Directors) held during the year and the 

number of meetings attended by each Director were as follows: 

Directors' Meetings  

                       Committees of the Board 

Remuneration & 

Nomination 

- 

- 

- 

- 

- 

- 

- 

(ii) 

4 

- 

4 

2 

- 

- 

- 

2 

- 

- 

- 

- 

- 

- 

- 

(i) 

3 

- 

- 

1 

4 

1 

3 

- 

(ii) 

3 

- 

- 

1 

4 

1 

3 

- 

Colin Johnstone 

James Simpson 

Lawrence Conway 

Susan Corlett 

Paul Espie 

Paul Harris 

Michael Menzies 

Clifford Tuck 

(i) 

12 

7 

11 

10 

12 

7 

12 

2 

(ii) 

12 

10 

12 

10 

12 

7 

12 

2 

Audit 

(i) 

4 

- 

4 

2 

- 

- 

- 

2 

(i) Attended - Number of Meetings attended 

(ii) Eligible - Number of Meetings held which were eligible to be attended 

The members of the Board’s Committees at 30 June 2019 are: 

Audit Committee: Lawrence Conway, Susan Corlett, Paul Harris 

Remuneration & Nomination Committee: Paul Espie, Susan Corlett, Paul Harris 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  15

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  16

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTORS' REPORT (CONTINUED) 

1.  DIRECTORS AND OFFICERS (CONTINUED) 

Paul Harris 

Independent Non-Executive Director and Lead Independent Director 

Mr  Harris  has  more  than  26  years’  experience  in  financial  markets  and  investment  banking,  including  advising 

mining corporates on strategy, mergers and acquisitions, and capital markets, including as Managing Director  - 

Head of Metals and Mining at Citi. Mr Harris has a Master of Engineering (Mining) and a Bachelor of Commerce 

(Finance) and is a graduate of the Australian Institute of Company Directors. 

Mr Harris is the non-executive Chairman of Aeon Metals Limited (ASX: AML). 

Mr  Harris  was  appointed  as  a  Director  of  the  Company  on  17  December  2018  and  appointed,  during  the 

leadership  transition  phase  associated  with  the  departure  of  the  former  Managing  Director  &  CEO,  as  Lead 

Independent Director from 1 May 2019. 

Michael Menzies 

Executive Director & Acting Chief Operating Officer 

Mr  Menzies  is  a  law  graduate  who  has  over  35  years  of  experience  in  a  variety  of  industrial,  operational  and 

managerial roles within the mining industry in Australia and off- shore, in base metals, gold, mineral sands and 

coal. He has worked with Renison Goldfields, CRA Limited and MIM Holdings where he was Executive General 

Manager  Mining. Following  a period  employed in  Private  Equity  in project  evaluation and  investment advice, in 

recent  times  Mr  Menzies  has  been  engaged  in  mining  consultancy  work  primarily  consulting  to  Glencore.  Mr 

Menzies  is  a  former  Director  of  Australian  Mines  and  Metals  Association  and  former  Vice-President  of  the 

Queensland Mining Council. 

Mr Menzies was appointed as a Director of the Company on 15 December 2015. He was previously a Director of 

the Company from 26 March 2013 to 26 June 2015. 

Due to the departure of the Company’s former Managing Director and CEO, Mr Menzies assumed an interim role 

in an executive capacity as Executive Director and Acting Chief Operating Officer from 1 May 2019. 

Timothy Churcher 

Chief Financial Officer and Company Secretary 

Mr Churcher is a senior finance professional with over 30 years’ experience in the mining industry in a range of 

financial and technical disciplines. 

His finance experience includes roles as Chief Financial Officer of Evolution Mining Limited and Chief Financial 

Officer  &  Company  Secretary  of  Unity  Mining  Limited.  Prior  to  this,  Tim  was  employed  in  private  equity 

investment with Renaissance Capital Limited and prior to that in stockbroking with Goldman Sachs (formerly JB 

Were  &  Son  Limited).  He  is  an  Associate  of  CPA  Australia  and  has  a  Masters  degree  from  Imperial  College 

London and an MBA from the Cranfield School of Management in the UK. 

Mr Churcher was appointed as the Company’s Chief Financial Officer on 30 September 2014 and was appointed 

as Company Secretary on 20 December 2016. 

Gillian Nairn 

Company Secretary 

in private practice. 

Ms Nairn has over 20 years legal and governance experience in various listed and public companies, as well as 

Ms  Nairn  is  an  employee  of Company  Matters  Pty  Ltd,  a  company  secretarial service  provider.  Prior  to  joining 

Company Matters, Ms Nairn held various company secretarial roles, predominantly with listed entities, in a variety 

of sectors including manufacturing, oil and gas, professional services and education. 

Ms  Nairn  holds  a  Bachelor  of  Laws  and  a  Bachelor  of  Arts,  a  Graduate  Diploma  in  Applied  Corporate 

Governance and is  an  Associate  of  the  Governance Institute  of  Australia  and  a member of  the Law  Society  of 

NSW. 

Ms Nairn was appointed as a Company Secretary on 3 June 2019. 

DIRECTORS' REPORT (CONTINUED) 

1.  DIRECTORS AND OFFICERS (CONTINUED) 

Directors and Officers who no longer held office at the end of the year are as follows: 

James Simpson (resigned) 
Managing Director and Chief Executive Officer 

Mr Simpson is a Mining Engineer with over 30 years’ experience, specialising in underground metalliferous 
mining. 

Mr  Simpson  was  appointed  as  Managing  Director  of  the  Company  on  1  August  2016  and  appointed  as  Chief 
Executive  Officer  on  1  September  2016.  Mr  Simpson  ceased  as  Chief  Executive  Officer  on  1  May  2019  and 
resigned as a Director on 22 May 2019. 

Clifford Tuck (resigned) 
Non- Executive Director 

Mr Tuck is a corporate and transactional lawyer, and governance professional, with more than fifteen years’ 
experience in the resources sector. 

Mr Tuck was appointed as a Director of the Company on 24 May 2018 and resigned on 30 September 2018. 

2. 

DIRECTORS' INTERESTS 

At 30 June 2019 the interests of the Directors in the shares and other equity securities of the Company were: 

Directors 
Johnstone,Colin 
Conway,Lawrence 
Corlett, Susan 
Espie, Paul 
Harris, Paul 
Menzies, Michael 
Total 

Ordinary Shares 
1,000,001 
171,429 
33,731 
150,000 
- 
633,929 
1,989,090 

Options 

Performance 
Rights 

- 
- 
- 
- 
- 
- 
- 

- 
- 
- 
- 
- 
- 
- 

3.  MEETINGS OF DIRECTORS 

The number of meetings of Directors (including meetings of committees of Directors) held during the year and the 
number of meetings attended by each Director were as follows: 

Colin Johnstone 
James Simpson 
Lawrence Conway 
Susan Corlett 
Paul Espie 
Paul Harris 
Michael Menzies 
Clifford Tuck 

Directors' Meetings  
(i) 
12 
7 
11 
10 
12 
7 
12 
2 

(ii) 
12 
10 
12 
10 
12 
7 
12 
2 

                       Committees of the Board 

Audit 
(i) 
4 
- 
4 
2 
- 
- 
- 
2 

Remuneration & 
Nomination 
(i) 
3 
- 
- 
1 
4 
1 
3 
- 

(ii) 
3 
- 
- 
1 
4 
1 
3 
- 

(ii) 
4 
- 
4 
2 
- 
- 
- 
2 

(i) Attended - Number of Meetings attended 

(ii) Eligible - Number of Meetings held which were eligible to be attended 

The members of the Board’s Committees at 30 June 2019 are: 

Audit Committee: Lawrence Conway, Susan Corlett, Paul Harris 
Remuneration & Nomination Committee: Paul Espie, Susan Corlett, Paul Harris 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  15

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  16

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTORS' REPORT (CONTINUED) 

DIRECTORS' REPORT (CONTINUED) 

4. 

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND  OFFICERS 

9. 

PERFORMANCE RIGHTS (CONTINUED) 

During  the  financial  year,  the  Company  paid  a  premium  in  respect  of  a  contract  insuring  the  Directors  of  the 
Company, the Company Secretary and all executive officers of the Company and of any related body corporate 
against  a  liability  incurred  as  such  a  Director,  secretary  or  executive  officer  to  the  extent  permitted  by  the 
Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount 
of the premium. 

The Company has entered into a Deed of Indemnity, Insurance and Access with each Director. In Summary, the 
Deed  provides  for access  to corporate  records for  each  Director for  a  period after ceasing  to hold  office  in the 
Company;  the  provision  of  Directors  and  Officers  Liability  Insurance;  and  Indemnity  for  legal  costs  incurred  by 
Directors in carrying out the business affairs of the Company. 

Except  for  the above the  Company has  not  otherwise,  during or since the  financial  year,  except  to  the  amount 
permitted by law, indemnified or agreed to indemnify an officer or auditor of the Company or of any related body 
corporate against a liability incurred as such an officer or auditor. 

5. 

INDEMNIFICATION OF AUDITORS 

To the extent permitted by law, the Company has agreed to indemnify its auditor as part of the terms of its audit 
engagement  agreement  against  claims  by  third  parties  arising  from  the  audit  (for  an  unspecified  amount).  No 
payment has been made to indemnify the auditor during or since the financial year. 

Refer to the Operations and Financial Review for information on future prospects of the Company. 

11. 

ENVIRONMENTAL REGULATION AND PERFORMANCE 

6. 

DIVIDENDS 

Since year end, the Directors have recommended the payment of a maiden fully franked dividend of 2.0 cents per 
fully paid ordinary share (30 June 2018: Nil). The aggregate amount of the proposed dividend is expected to be 
paid on 2 October 2019. 

7. 

CORPORATE STRUCTURE 

Aurelia Metals Limited is a company limited by shares that is incorporated and domiciled in Australia. Aurelia has 
five wholly owned subsidiaries, Defiance Resources Pty Ltd (incorporated 15 May 2007), Hera Resources Pty Ltd 
(incorporated 20 August 2009), Nymagee Resources Pty Ltd (incorporated 7 November 2011), Peak Gold Asia 
Pacific Ltd (incorporated 31 October 1977) and Peak Gold Mines Pty Ltd (incorporated 26 February 2003). 

8. 

SHARE OPTIONS 

As at the date of this report, there are no issued share options. Unlisted options which were exercised during the 
year are set out below: 

The  performance  rights  have  various  share  price  and  operational  performance  measures.  Refer  to  the 

Remuneration Report for further details. No performance right holder has any right under the performance right to 

participate in any other share issue of the Company or any other entity. 

A total of 2,250,000 Performance Rights listed above were tested at 30 June 2019 and 92% were vested after 

balance date. The vesting event will be recorded in the next reporting period. 

Of the issued but untested Performance Rights, a total of 4,041,964 Performance Rights are held by the former 

Managing  Director  &  CEO.  As  part  of  the  termination  agreement  with  the  executive,  the  Board  has  agreed  to 

exercise  its  discretion  under  the  Performance  Plan  Rules  and  waive  all  performance  conditions  on  these 

Performance Rights. The Performance Rights will vest into shares upon the resignation of the executive from the 

Company,  on  31  August  2019.  Of  the  shares  issued,  upon  the  vesting  of  the  Performance  Rights,  a  total  of 

2,541,964  shares  will  have  an  agreed  12  month  holding  lock  from  31  August  2019  to  prevent  trading  of  these 

securities by the executive. 

10. 

FUTURE DEVELOPMENTS 

The Directors are not aware of any environmental incident during the year  which would have a material adverse 

impact on the Company. The Company was issued three notices by the NSW Environmental Protection Agency 

(EPA) and received an administrative Penalty Notice from the Resources Regulator during the year. The notices 

from  the  EPA  relate  to  two  separate  incidents  at  the  Hera  Mine  and  the  Peak  Gold  Mine.  The  Hera  Mine  was 

issued  with  a  Clean  Up  Notice  and  a  Show  Cause  Notice.  The  notices  relate  to  an  incident  at  the  Hera  Mine 

whereby the synthetic liner in the settling ponds was punctured and process water leaked from the settling ponds 

into  the  surrounding  mine  site.  The  process  water  was  contained  onsite  and  no  water  was  released  to  the 

environment. 

The Peak Gold Mine was issued with an S193 Notice Request for Additional Information. The notice related to an 

incident whereby mine dewatering water was discharged to a non-licence discharge point. The mine dewatering 

water bypassed a settling dam (the licenced discharge point) designed to settle out the solids prior to reporting to 

a series of dams. The mine dewatering water did not enter the environment and remained in the series of dams 

designed to contain mine dewatering water. 

The Penalty Notice related to an administrative issue and was issued to Peak Gold Mines. The notice related to 

the late payment of an increase to the Environmental Bond. 

There  were  a  number  of  minor  non-compliances  to  Project  Approval  and  Environmental  Protection  Licence 

conditions  during  the  year.  The  minor  non-compliances  predominately  related  to  dust  (elevated  throughout  the 

year due to the prolonged drought) and process water sampling regimes and elevated analytes. All minor non-

compliances  were  reported  to  the  relevant  authorities  (e.g.  Environmental  Protection  Authority,  Department  of 

Planning  and  Environment)  without  delay  and  immediate  actions  were  taken  to  return  the  operation  to 

compliance.  No  regulator  action  or  fines  have  been  received  by  the  Company  in  response  to  these  minor 

incidents and due to the minor nature of the incidents, no such action is anticipated. 

12. 

CURRENCY AND ROUNDING OF AMOUNTS 

All references to dollars are a reference to Australian dollars ($A) unless otherwise stated. ($A) is occasionally 

used for clarity. 

Aurelia  Metals  Limited  is  a  company  of  the  kind  referred  to  in  ASIC  Corporations  (Rounding    in 

Financial/Directors’  Reports)  Instrument  2016/191  and  in  accordance  with  that  instrument,  amounts  in  the 

Financial/Directors’ Reports are rounded to the nearest thousand dollars, except where indicated otherwise. Due 

to rounding, numbers presented throughout this document may not add up precisely to the totals provided. 

As at the date of this report, there were 9,197,171 unissued ordinary shares subject to Performance Rights. The 
Performance Rights are unlisted and have terms as set out below: 

Grant 
Date 
28-11-16 
28-11-16 
28-11-16 
04-12-18 
04-12-18 
Total 

Expiry or 
Test Date 
30-06-18 
30-06-19 
30-06-20 
30-06-20 
30-06-21 

Exercise 
Price 
nil 
nil 
nil 
nil 
nil 

Balance at 
start of year 
2,000,000 
2,250,000 
2,250,000 
- 
- 
6,500,000 

Granted 
during 
the year 
- 
- 
- 
2,041,875 
2,655,296 
4,697,171 

Vested during 
the year 
(2,000,000) 
- 
- 
- 
- 
(2,000,000) 

Expired 
during 
the year 
- 
- 
- 
- 
- 
- 

Balance at 
year end 
- 
2,250,000 
2,250,000 
2,041,875 
2,655,296 
9,197,171 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  17

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  18

Granted 
during 
Price/Share    start of year    the year  
 1.25 cents 

Weighted average exercise price 

9. 

PERFORMANCE RIGHTS 

Grant 
Date 
30-11-15 
Total 

Expiry 
  Date 
28-09-20 

Exercised 
Expired 
during 
during 
the year    the year 

Balance at 
year end 
- 
- 

(10,000,000) 
(10,000,000) 
1.25 cents 

10,000,000 
10,000,000 
1.25 cents 

Balance at 

Exercise 

- 
- 

- 
- 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTORS' REPORT (CONTINUED) 

DIRECTORS' REPORT (CONTINUED) 

4. 

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND  OFFICERS 

9. 

PERFORMANCE RIGHTS (CONTINUED) 

During  the  financial  year,  the  Company  paid  a  premium  in  respect  of  a  contract  insuring  the  Directors  of  the 

Company, the Company Secretary and all executive officers of the Company and of any related body corporate 

against  a  liability  incurred  as  such  a  Director,  secretary  or  executive  officer  to  the  extent  permitted  by  the 

Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount 

of the premium. 

The Company has entered into a Deed of Indemnity, Insurance and Access with each Director. In Summary, the 

Deed  provides  for access  to corporate  records for  each  Director for  a  period after ceasing  to hold  office  in the 

Company;  the  provision  of  Directors  and  Officers  Liability  Insurance;  and  Indemnity  for  legal  costs  incurred  by 

Directors in carrying out the business affairs of the Company. 

Except  for  the above the  Company has  not  otherwise,  during or since the  financial  year,  except  to  the  amount 

permitted by law, indemnified or agreed to indemnify an officer or auditor of the Company or of any related body 

corporate against a liability incurred as such an officer or auditor. 

The  performance  rights  have  various  share  price  and  operational  performance  measures.  Refer  to  the 
Remuneration Report for further details. No performance right holder has any right under the performance right to 
participate in any other share issue of the Company or any other entity. 

A total of 2,250,000 Performance Rights listed above were tested at 30 June 2019 and 92% were vested after 
balance date. The vesting event will be recorded in the next reporting period. 

Of the issued but untested Performance Rights, a total of 4,041,964 Performance Rights are held by the former 
Managing  Director  &  CEO.  As  part  of  the  termination  agreement  with  the  executive,  the  Board  has  agreed  to 
exercise  its  discretion  under  the  Performance  Plan  Rules  and  waive  all  performance  conditions  on  these 
Performance Rights. The Performance Rights will vest into shares upon the resignation of the executive from the 
Company,  on  31  August  2019.  Of  the  shares  issued,  upon  the  vesting  of  the  Performance  Rights,  a  total  of 
2,541,964  shares  will  have  an  agreed  12  month  holding  lock  from  31  August  2019  to  prevent  trading  of  these 
securities by the executive. 

5. 

INDEMNIFICATION OF AUDITORS 

10. 

FUTURE DEVELOPMENTS 

To the extent permitted by law, the Company has agreed to indemnify its auditor as part of the terms of its audit 

engagement  agreement  against  claims  by  third  parties  arising  from  the  audit  (for  an  unspecified  amount).  No 

payment has been made to indemnify the auditor during or since the financial year. 

Refer to the Operations and Financial Review for information on future prospects of the Company. 

11. 

ENVIRONMENTAL REGULATION AND PERFORMANCE 

Since year end, the Directors have recommended the payment of a maiden fully franked dividend of 2.0 cents per 

fully paid ordinary share (30 June 2018: Nil). The aggregate amount of the proposed dividend is expected to be 

6. 

DIVIDENDS 

paid on 2 October 2019. 

7. 

CORPORATE STRUCTURE 

Aurelia Metals Limited is a company limited by shares that is incorporated and domiciled in Australia. Aurelia has 

five wholly owned subsidiaries, Defiance Resources Pty Ltd (incorporated 15 May 2007), Hera Resources Pty Ltd 

(incorporated 20 August 2009), Nymagee Resources Pty Ltd (incorporated 7 November 2011), Peak Gold Asia 

Pacific Ltd (incorporated 31 October 1977) and Peak Gold Mines Pty Ltd (incorporated 26 February 2003). 

8. 

SHARE OPTIONS 

year are set out below: 

As at the date of this report, there are no issued share options. Unlisted options which were exercised during the 

Grant 

Date 

Expiry 

  Date 

Exercise 

Balance at 

during 

during 

during 

Balance at 

Price/Share    start of year    the year  

the year    the year 

year end 

30-11-15 

28-09-20 

 1.25 cents 

10,000,000 

Total 

Weighted average exercise price 

10,000,000 

1.25 cents 

- 

- 

(10,000,000) 

(10,000,000) 

1.25 cents 

- 

- 

- 

- 

Granted 

Exercised 

Expired 

9. 

PERFORMANCE RIGHTS 

As at the date of this report, there were 9,197,171 unissued ordinary shares subject to Performance Rights. The 

Performance Rights are unlisted and have terms as set out below: 

Grant 

Date 

28-11-16 

28-11-16 

28-11-16 

04-12-18 

04-12-18 

Total 

Expiry or 

Test Date 

Exercise 

Balance at 

Price 

start of year 

30-06-18 

30-06-19 

30-06-20 

30-06-20 

30-06-21 

nil 

nil 

nil 

nil 

nil 

2,000,000 

2,250,000 

2,250,000 

- 

- 

Granted 

during 

the year 

- 

- 

- 

2,041,875 

2,655,296 

4,697,171 

Expired 

Vested during 

during 

the year 

the year 

Balance at 

year end 

(2,000,000) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

2,250,000 

2,250,000 

2,041,875 

2,655,296 

9,197,171 

6,500,000 

(2,000,000) 

The Directors are not aware of any environmental incident during the year  which would have a material adverse 
impact on the Company. The Company was issued three notices by the NSW Environmental Protection Agency 
(EPA) and received an administrative Penalty Notice from the Resources Regulator during the year. The notices 
from  the  EPA  relate  to  two  separate  incidents  at  the  Hera  Mine  and  the  Peak  Gold  Mine.  The  Hera  Mine  was 
issued  with  a  Clean  Up  Notice  and  a  Show  Cause  Notice.  The  notices  relate  to  an  incident  at  the  Hera  Mine 
whereby the synthetic liner in the settling ponds was punctured and process water leaked from the settling ponds 
into  the  surrounding  mine  site.  The  process  water  was  contained  onsite  and  no  water  was  released  to  the 
environment. 

The Peak Gold Mine was issued with an S193 Notice Request for Additional Information. The notice related to an 
incident whereby mine dewatering water was discharged to a non-licence discharge point. The mine dewatering 
water bypassed a settling dam (the licenced discharge point) designed to settle out the solids prior to reporting to 
a series of dams. The mine dewatering water did not enter the environment and remained in the series of dams 
designed to contain mine dewatering water. 

The Penalty Notice related to an administrative issue and was issued to Peak Gold Mines. The notice related to 
the late payment of an increase to the Environmental Bond. 

There  were  a  number  of  minor  non-compliances  to  Project  Approval  and  Environmental  Protection  Licence 
conditions  during  the  year.  The  minor  non-compliances  predominately  related  to  dust  (elevated  throughout  the 
year due to the prolonged drought) and process water sampling regimes and elevated analytes. All minor non-
compliances  were  reported  to  the  relevant  authorities  (e.g.  Environmental  Protection  Authority,  Department  of 
Planning  and  Environment)  without  delay  and  immediate  actions  were  taken  to  return  the  operation  to 
compliance.  No  regulator  action  or  fines  have  been  received  by  the  Company  in  response  to  these  minor 
incidents and due to the minor nature of the incidents, no such action is anticipated. 

12. 

CURRENCY AND ROUNDING OF AMOUNTS 

All references to dollars are a reference to Australian dollars ($A) unless otherwise stated. ($A) is occasionally 
used for clarity. 

Aurelia  Metals  Limited  is  a  company  of  the  kind  referred  to  in  ASIC  Corporations  (Rounding    in 
Financial/Directors’  Reports)  Instrument  2016/191  and  in  accordance  with  that  instrument,  amounts  in  the 
Financial/Directors’ Reports are rounded to the nearest thousand dollars, except where indicated otherwise. Due 
to rounding, numbers presented throughout this document may not add up precisely to the totals provided. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  17

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  18

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTORS' REPORT (CONTINUED) 

Signed in accordance with a resolution of the Directors. 

Colin Johnstone 
Executive Chairman & Acting Chief Executive Officer 
23 August 2019 

OPERATIONS AND FINANCIAL REVIEW 

1.  OVERVIEW 

Aurelia Metals Limited (the Company) is an Australian gold, silver, lead, zinc and copper mining and exploration 

company. The Company operates two wholly-owned gold and base metal mines at Peak and Hera and holds a 

dominant land position in the highly prospective Cobar Basin of central New South Wales. 

The Company aims to deliver an attractive high cash margin over long life assets and to achieve this requires a 

dual strategy of operational and exploration excellence. 

The operating strategy is to increase efficiencies in underground mining and mineral processing, combined with a 

focus  on selectively  mining high  margin ore.  In support of  this strategy,  a  $53  million  investment in  processing 

infrastructure  is  underway  at  Peak  to  increase  its  capacity  to  treat  a  variety  of  base  metal  ores  at  optimal 

throughput rates. 

The  Company  has  begun  to  unlock  the  exceptional  prospectivity  of  its  land  in  the  Cobar  Basin  with  the 

commencement  of  significant  exploration  this  year.  Results  to  date  are  promising  and  may  yet  deliver  the 

Company’s  next  mine.  The  Company  is  committed  to  accelerating  this  program  with  a  major  $15  million 

commitment to near-mine and regional exploration in the next financial year. 

Key results for the year included: 

Group gold production of 117,521 oz at an AISC/oz of $1,045/oz, representing a 21% increase in 

production on the prior year but at a higher unit cost (FY18 gold production of 97,374 oz at $509/oz). 

• 

• 

Hera contributed 58,025 oz at an AISC/oz of $809/oz. 

Peak contributed 59,496 oz at an AISC/oz of $1,143/oz. 

Revenue increased by 19% to $295.0 million largely due to 13% increase in gold sales, a 152% increase 

in copper sales, a 39% increase in lead sales, offset by a 24% reduction in zinc sales (2018: $248.6 

million). The commodity contribution to revenue was approximately 70% precious metals and 30% base 

metals. 

EBITDA reduced by 25% to $103.1 million (2018: $136.7 million). 

Net profit after tax decreased by 64% to $36.0 million (2018: $99.1 million). 

Operating cash flow reduced by 30% to $106.8 million (2018: $151.8 million). 

At balance date, the Company held available cash of $104.3 million (2018: $66.9 million) with no debt. 

The A$ gold price increased by 19% over the year, comparing the average June 2018 price of A$1,694/oz to an 

average June 2019 price of $2,009/oz. However, with 60% of gold sales occurring in the first half of the year (at 

an  average  price  of  A$1,680/oz)  and  40%  occurring  in  the  second  half  of  the  year  (at  an  average  price  of 

A$1,847/oz), the average gold price received over the year was only 3% higher than the prior year at A$1,748/oz. 

Base metal prices have been volatile, but in general have declined during the year with spot A$ lead down 15%, 

A$  zinc  down  6%  and  A$  copper  down  4%  (comparing  average  June  2018  spot  prices  to  average  June  2019  

spot prices). Actual prices received from base metal sales were similar, with A$ lead price received down 13% on 

the prior year, A$ zinc down 9% and A$ copper down 9%. 

Reduced  base  metal  prices,  combined  with  historically  high  zinc  treatment  charges  for  the  second  half  of  the 

financial year, reduced base metal credits and increased the Company’s reported AISC/oz. 

Net  profit  for the  year  of $36.0  million,  reduced by  approximately  $63.1  million  relative  to  the prior  year  largely 

due to the following key variances: 

A $63.6 million increase in site costs and a $15.3 million increase in D&A from the inclusion of a full year of 

costs from the Peak Mine (prior year having only 2.7 months of costs included due to the acquisition date 

of Peak being 10 April 2018). 

A $21.8 million increase in Income Tax expense, with the position changing from a $6.8 million tax benefit 

in the prior year to a tax expense of $15.0 million in the current year. 

• 

• 

• 

• 

• 

• 

• 

• 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  19

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTORS' REPORT (CONTINUED) 

Signed in accordance with a resolution of the Directors. 

Executive Chairman & Acting Chief Executive Officer 

Colin Johnstone 

23 August 2019 

OPERATIONS AND FINANCIAL REVIEW 

1.  OVERVIEW 

Aurelia Metals Limited (the Company) is an Australian gold, silver, lead, zinc and copper mining and exploration 
company. The Company operates two wholly-owned gold and base metal mines at Peak and Hera and holds a 
dominant land position in the highly prospective Cobar Basin of central New South Wales. 

The Company aims to deliver an attractive high cash margin over long life assets and to achieve this requires a 
dual strategy of operational and exploration excellence. 

The operating strategy is to increase efficiencies in underground mining and mineral processing, combined with a 
focus  on selectively  mining high  margin ore.  In support of  this strategy,  a  $53  million  investment in  processing 
infrastructure  is  underway  at  Peak  to  increase  its  capacity  to  treat  a  variety  of  base  metal  ores  at  optimal 
throughput rates. 

The  Company  has  begun  to  unlock  the  exceptional  prospectivity  of  its  land  in  the  Cobar  Basin  with  the 
commencement  of  significant  exploration  this  year.  Results  to  date  are  promising  and  may  yet  deliver  the 
Company’s  next  mine.  The  Company  is  committed  to  accelerating  this  program  with  a  major  $15  million 
commitment to near-mine and regional exploration in the next financial year. 

Key results for the year included: 

• 

• 

• 

• 

• 

• 

Group gold production of 117,521 oz at an AISC/oz of $1,045/oz, representing a 21% increase in 
production on the prior year but at a higher unit cost (FY18 gold production of 97,374 oz at $509/oz). 

• 

• 

Hera contributed 58,025 oz at an AISC/oz of $809/oz. 

Peak contributed 59,496 oz at an AISC/oz of $1,143/oz. 

Revenue increased by 19% to $295.0 million largely due to 13% increase in gold sales, a 152% increase 
in copper sales, a 39% increase in lead sales, offset by a 24% reduction in zinc sales (2018: $248.6 
million). The commodity contribution to revenue was approximately 70% precious metals and 30% base 
metals. 

EBITDA reduced by 25% to $103.1 million (2018: $136.7 million). 

Net profit after tax decreased by 64% to $36.0 million (2018: $99.1 million). 

Operating cash flow reduced by 30% to $106.8 million (2018: $151.8 million). 

At balance date, the Company held available cash of $104.3 million (2018: $66.9 million) with no debt. 

The A$ gold price increased by 19% over the year, comparing the average June 2018 price of A$1,694/oz to an 
average June 2019 price of $2,009/oz. However, with 60% of gold sales occurring in the first half of the year (at 
an  average  price  of  A$1,680/oz)  and  40%  occurring  in  the  second  half  of  the  year  (at  an  average  price  of 
A$1,847/oz), the average gold price received over the year was only 3% higher than the prior year at A$1,748/oz. 

Base metal prices have been volatile, but in general have declined during the year with spot A$ lead down 15%, 
A$  zinc  down  6%  and  A$  copper  down  4%  (comparing  average  June  2018  spot  prices  to  average  June  2019  
spot prices). Actual prices received from base metal sales were similar, with A$ lead price received down 13% on 
the prior year, A$ zinc down 9% and A$ copper down 9%. 

Reduced  base  metal  prices,  combined  with  historically  high  zinc  treatment  charges  for  the  second  half  of  the 
financial year, reduced base metal credits and increased the Company’s reported AISC/oz. 

Net  profit  for the  year  of $36.0  million,  reduced by  approximately  $63.1  million  relative  to  the prior  year  largely 
due to the following key variances: 

• 

• 

A $63.6 million increase in site costs and a $15.3 million increase in D&A from the inclusion of a full year of 
costs from the Peak Mine (prior year having only 2.7 months of costs included due to the acquisition date 
of Peak being 10 April 2018). 

A $21.8 million increase in Income Tax expense, with the position changing from a $6.8 million tax benefit 
in the prior year to a tax expense of $15.0 million in the current year. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  19

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

1.  OVERVIEW (CONTINUED) 

• 

• 

A $16.5 million increase in loss from commodity derivatives with the position changing from a $0.6 million 
gain in the prior year to a $15.9 million loss in the current year, being loss on gold forward contracts of 
$16.9 million offset by a gain on foreign exchange transactions of $1.0 million. 

A$3.0 million increase in exploration costs expensed and other expenses.       

Offset by: 

• 

• 

• 

A $46.4 million increase in revenue associated with increased production and sales. 

A $7.7 million reduction in finance costs, with the prior year recording a $3.2 million finance cost 
associated with the expensing of debt arrangement fees associated with the Peak acquisition debt facility. 

A $3.1 million reduction in corporate and acquisition & integration costs, with the prior year including $6.8 
million expense associated with the purchase of Peak Mines. 

Peak  saw  significant  fluctuation  in  gold  grades  during  the  year  from  the  high-grade  Chronos  orebody.  The 
operational  focus  was  on  successfully  transitioning  the  mine  to  contractor-operated  strategy  from  1  February 
2019. The move to contract mining is aimed at increasing underground productivity and reducing operating costs. 
The  site  also  commenced  a  large-scale  upgrade  of  the  processing  circuit  to  enable  the production  of  separate 
lead and zinc concentrates from the processing of high grade lead zinc ores at throughput rates of up to 800,000 
tpa.  This  major  upgrade,  forecast  to  cost  $53  million,  with  $38  million  to  be  invested  during  the  next  financial  
year,  is  planned  for  completion  in  the  March  2020  quarter.  These  activities  are  planned  to  set  the  mine  up  for  
long term consistent production. 

Hera  had  a  strong  year  but  was  impacted  by  reduced  metal  grades.  Countering  reduced  grades,  was  a  15% 
increase in throughput levels, relative to the prior year, and an increase in gold recovery to 90.9%. 

The  commencement  of  significant  exploration  during  the  year  has  delivered  results,  with  the  discovery  of  high 
grade lead-zinc mineralisation 10 km south of Hera (Federation discovery) and a new zone of high grade gold, 
lead, zinc mineralisation at Peak (Kairos discovery). 

2.  OPERATING AND FINANCIAL  PERFORMANCE 

2.1 Key Results 

Group net profit after tax for the year ended 30 June 2019 was $36.0 million (30 June 2018: $99.1 million). 

Group  revenue  of  $295.0  million  represented  a  19%  increase  on  the  prior  year  and  reflects  the  full  year  of 
ownership of the Peak operation (prior year reflected financial results from the 10 April 2018). Of the total Group 
revenue, Hera contributed $133.9 million and Peak contributed $161.1 million. 

Gold  sold  for  the  year  was  113,142oz  (dore  and  payable  gold  in  concentrate)  generating  revenue  of  $197.9 
million. Hera contributed $97.0 million of gold revenue (49% of total gold revenue) and Peak contributed $100.9 
million  of gold  revenue  (51% of  total  gold  revenue).  The  Company  had approximately  4,400  oz  of  gold  in  dore 
and concentrate unsold at year end due to the timing of production versus sales. At year end prices, this reflects 
approximately $8-9 million of revenue deferred to the following year. 

Base metal revenue of $92.3 million was derived from the sale of 3,832 t of copper, 15,801 t of lead and 8,321 t 
of  zinc.  Hera  contributed  $35.8  million  of  base  metal  revenue  (40%  of  total  base  metal  revenue)  and  Peak 
contributed $56.5 million (60% of total base metal revenue). 

Total  cost  of  sales  for  the  year  increased  to  $215.0  million  (30  June  2018:  $136.1  million),  largely  due  to  the 
inclusion of 12 months of operating costs and depreciation and amortisation from Peak Mines. 

Total  operating  costs  (before  depreciation  and  amortisation)  at  Hera  increased  by  around  4%  during  the  year, 
largely  associated  with  increased  variable  costs  from  a  15%  increase  in  ore  throughput  during  the  year.  With 
increased  costs  and  reduced  base  metal  revenue,  Hera’s  EBITDA  reduced  by  29%  during  the  year  to  $61.6 
million (30 June 2018: $86.4 million). 

Total operating costs (before depreciation and amortisation) at Peak increased by 208% during the year, largely 
associated with the inclusion of 12 months of costs (whereas in the year to 30 June 2018, around 2.7 months of 
costs  were  included).  With  the  depletion  of  the  extremely  high  gold  grade  Chronos  ore  last  financial  year, 
together with reduced base metal prices, Peak’s EBITDA, which included 12 months of performance, increased 
by 9% during the year to $68.1 million (30 June 2018: $62.6M). 

2.  OPERATING AND FINANCIAL PERFORMANCE (CONTINUED) 

2.1  Key Results (continued) 

Key Group performance metrics for the year are tabulated below. 

Performance indicators 

Sales revenue 

Profit/(Loss) for the period 

EBITDA 

Cash and cash equivalents 

Net operating cash flow 

Gold production 

Silver production - contained metal 

Copper production - contained metal 

Lead production - contained metal 

Zinc production - contained metal 

Sales 

Gold dore & gold in Conc sold 

Silver dore & Silver in Conc sold 

Payable Copper sold 

Payable Lead sold 

Payable Zinc sold 

Prices 

Gold price achieved 

Silver price achieved 

Copper price achieved 

Lead price achieved 

Zinc price achieved 

All in sustaining cost ($/oz) 

(b) 

(a) 

2019 

$000 

295,002 

36,017 

103,061 

104,152 

106,781 

117,521 

413,778 

4,267 

17,847 

13,485 

113,142 

237,613 

3,832 

15,801 

8,321 

2018 

$000 

248,599 

99,105 

136,717 

66,925 

151,758 

97,374 

239,460 

1,968 

11,160 

13,282 

103,456 

123,057 

1,462 

10,356 

9,757 

oz 

oz 

t 

t 

t 

t 

t 

t 

oz 

oz 

Variance 

19% 

(64)% 

(25)% 

56% 

(30)% 

21% 

73% 

117% 

60% 

2% 

9% 

93% 

162% 

53% 

(15)% 

3% 

(5)% 

(9)% 

(13)% 

(9)% 

A$/oz 

A$/oz 

A$/t 

A$/t 

A$/t   

$/oz   

1,748 

21 

8,495 

2,712 

3,679    

1,045    

1,698 

22 

9,308 

3,133 

4,052    

509    

105% 

All-in Sustaining Cost (AISC) is a non-IFRS measure and is not audited. Group AISC includes Site Costs (mining, 

processing,  administration,  changes  in  inventory),  royalty,  transport  and  smelter  expenses,  by-product  credits 

(silver, copper, lead & zinc sales), sustaining capital, corporate costs, divided by gold sold during the year. 

(a) 

(b) 

Net operating cashflow excludes growth and sustaining capital costs. 

EBITDA is a non-IFRS measure. The table below reconciles EBITDA to reported Profit for the year: 

Profit/(loss) for the year 

Net interest cost 

Tax (benefit)/expense 

Depreciation and amortisation 

EBITDA 

2019 

$000 

36,017 

72 

15,001 

51,972    

103,062    

2018 

$000 

99,105 

7,804 

(6,799) 

36,607 

136,717 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  21

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  22

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

Offset by: 

• 

• 

• 

• 

• 

1.  OVERVIEW (CONTINUED) 

A $16.5 million increase in loss from commodity derivatives with the position changing from a $0.6 million 

gain in the prior year to a $15.9 million loss in the current year, being loss on gold forward contracts of 

$16.9 million offset by a gain on foreign exchange transactions of $1.0 million. 

A$3.0 million increase in exploration costs expensed and other expenses.       

A $46.4 million increase in revenue associated with increased production and sales. 

A $7.7 million reduction in finance costs, with the prior year recording a $3.2 million finance cost 

associated with the expensing of debt arrangement fees associated with the Peak acquisition debt facility. 

A $3.1 million reduction in corporate and acquisition & integration costs, with the prior year including $6.8 

million expense associated with the purchase of Peak Mines. 

Peak  saw  significant  fluctuation  in  gold  grades  during  the  year  from  the  high-grade  Chronos  orebody.  The 

operational  focus  was  on  successfully  transitioning  the  mine  to  contractor-operated  strategy  from  1  February 

2019. The move to contract mining is aimed at increasing underground productivity and reducing operating costs. 

The  site  also  commenced  a  large-scale  upgrade  of  the  processing  circuit  to  enable  the production  of  separate 

lead and zinc concentrates from the processing of high grade lead zinc ores at throughput rates of up to 800,000 

tpa.  This  major  upgrade,  forecast  to  cost  $53  million,  with  $38  million  to  be  invested  during  the  next  financial  

year,  is  planned  for  completion  in  the  March  2020  quarter.  These  activities  are  planned  to  set  the  mine  up  for  

long term consistent production. 

Hera  had  a  strong  year  but  was  impacted  by  reduced  metal  grades.  Countering  reduced  grades,  was  a  15% 

increase in throughput levels, relative to the prior year, and an increase in gold recovery to 90.9%. 

The  commencement  of  significant  exploration  during  the  year  has  delivered  results,  with  the  discovery  of  high 

grade lead-zinc mineralisation 10 km south of Hera (Federation discovery) and a new zone of high grade gold, 

lead, zinc mineralisation at Peak (Kairos discovery). 

2.  OPERATING AND FINANCIAL  PERFORMANCE 

2.1 Key Results 

Group net profit after tax for the year ended 30 June 2019 was $36.0 million (30 June 2018: $99.1 million). 

Group  revenue  of  $295.0  million  represented  a  19%  increase  on  the  prior  year  and  reflects  the  full  year  of 

ownership of the Peak operation (prior year reflected financial results from the 10 April 2018). Of the total Group 

revenue, Hera contributed $133.9 million and Peak contributed $161.1 million. 

Gold  sold  for  the  year  was  113,142oz  (dore  and  payable  gold  in  concentrate)  generating  revenue  of  $197.9 

million. Hera contributed $97.0 million of gold revenue (49% of total gold revenue) and Peak contributed $100.9 

million  of gold  revenue  (51% of  total  gold  revenue).  The  Company  had approximately  4,400  oz  of  gold  in  dore 

and concentrate unsold at year end due to the timing of production versus sales. At year end prices, this reflects 

approximately $8-9 million of revenue deferred to the following year. 

Base metal revenue of $92.3 million was derived from the sale of 3,832 t of copper, 15,801 t of lead and 8,321 t 

of  zinc.  Hera  contributed  $35.8  million  of  base  metal  revenue  (40%  of  total  base  metal  revenue)  and  Peak 

contributed $56.5 million (60% of total base metal revenue). 

Total  cost  of  sales  for  the  year  increased  to  $215.0  million  (30  June  2018:  $136.1  million),  largely  due  to  the 

inclusion of 12 months of operating costs and depreciation and amortisation from Peak Mines. 

Total  operating  costs  (before  depreciation  and  amortisation)  at  Hera  increased  by  around  4%  during  the  year, 

largely  associated  with  increased  variable  costs  from  a  15%  increase  in  ore  throughput  during  the  year.  With 

increased  costs  and  reduced  base  metal  revenue,  Hera’s  EBITDA  reduced  by  29%  during  the  year  to  $61.6 

million (30 June 2018: $86.4 million). 

Total operating costs (before depreciation and amortisation) at Peak increased by 208% during the year, largely 

associated with the inclusion of 12 months of costs (whereas in the year to 30 June 2018, around 2.7 months of 

costs  were  included).  With  the  depletion  of  the  extremely  high  gold  grade  Chronos  ore  last  financial  year, 

together with reduced base metal prices, Peak’s EBITDA, which included 12 months of performance, increased 

by 9% during the year to $68.1 million (30 June 2018: $62.6M). 

2.  OPERATING AND FINANCIAL PERFORMANCE (CONTINUED) 

2.1  Key Results (continued) 

Key Group performance metrics for the year are tabulated below. 

Performance indicators 

Sales revenue 
Profit/(Loss) for the period 
EBITDA 
Cash and cash equivalents 
Net operating cash flow 

Gold production 
Silver production - contained metal 
Copper production - contained metal 
Lead production - contained metal 
Zinc production - contained metal 

Sales 
Gold dore & gold in Conc sold 
Silver dore & Silver in Conc sold 
Payable Copper sold 
Payable Lead sold 
Payable Zinc sold 

Prices 
Gold price achieved 
Silver price achieved 
Copper price achieved 
Lead price achieved 
Zinc price achieved 

All in sustaining cost ($/oz) 

(b) 

(a) 

2019 
$000 
295,002 
36,017 
103,061 
104,152 
106,781 

117,521 
413,778 
4,267 
17,847 
13,485 

113,142 
237,613 
3,832 
15,801 
8,321 

oz 
oz 
t 
t 
t 

oz 
oz 
t 
t 
t 

A$/oz 
A$/oz 
A$/t 
A$/t 
A$/t   

$/oz   

1,748 
21 
8,495 
2,712 
3,679    

1,045    

2018 
$000 
248,599 
99,105 
136,717 
66,925 
151,758 

97,374 
239,460 
1,968 
11,160 
13,282 

103,456 
123,057 
1,462 
10,356 
9,757 

1,698 
22 
9,308 
3,133 
4,052    

Variance 

19% 
(64)% 
(25)% 
56% 
(30)% 

21% 
73% 
117% 
60% 
2% 

9% 
93% 
162% 
53% 
(15)% 

3% 
(5)% 
(9)% 
(13)% 
(9)% 

509    

105% 

All-in Sustaining Cost (AISC) is a non-IFRS measure and is not audited. Group AISC includes Site Costs (mining, 
processing,  administration,  changes  in  inventory),  royalty,  transport  and  smelter  expenses,  by-product  credits 
(silver, copper, lead & zinc sales), sustaining capital, corporate costs, divided by gold sold during the year. 

(a) 

(b) 

Net operating cashflow excludes growth and sustaining capital costs. 

EBITDA is a non-IFRS measure. The table below reconciles EBITDA to reported Profit for the year: 

Profit/(loss) for the year 
Net interest cost 
Tax (benefit)/expense 
Depreciation and amortisation 
EBITDA 

2019 
$000 

36,017 
72 
15,001 
51,972    
103,062    

2018 
$000 

99,105 
7,804 
(6,799) 
36,607 
136,717 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  21

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  22

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

2.  OPERATING AND FINANCIAL PERFORMANCE (CONTINUED) 

2.  OPERATING AND FINANCIAL PERFORMANCE (CONTINUED) 

2.2  Hera Mine 

The key performance metrics for the Hera Mine are tabulated below: 

Hera Mine 

Sales revenue ($'000's) 
Site EBITDA 
Sustaining capital ($000's) 
Growth capital ($000's) 
Ore processed (kt) 

Gold grade g/t 
Silver grade g/t 

Lead grade % 
Zinc grade % 

Gold Recovery % 
Silver Recovery % 
Lead Recovery % 
Zinc Recovery % 

Gold production (oz) 
Silver production (oz) 
Lead production (t) 
Zinc production (t) 
AISC $/oz (All in sustaining cost) 

AISC is a non-IFRS measure 

(a) Operations 

FY19 

FY18 

Variance 

133,893 
61,636 
7,610 
6,776    

468,358 

155,767 
86,448 
16,519 

386    

407,131 

(14)% 
(29)% 
(54)% 
1,655% 
15% 

4.2 
10.9 

1.6% 
2.4% 

90.9% 
83.6% 
85.5% 
89.0% 

5.1 
13.4 

2.6% 
3.6% 

89.4% 
88.2% 
89.5% 
89.8% 

58,025 
145,554 
6,599 
10,129    
809    

59,822 
154,645 
9,609 
13,031    
430    

(17)% 
(19)% 

(38)% 
(33)% 

2% 
(5)% 
(4)% 
(1)% 

(3)% 
(6)% 
(31)% 
(22)% 
88% 

The  Hera  mine  performed  strongly  during  the  year  despite  a  decrease  in  gold  and  base  metal  grades.  Gold 
production  was  maintained  with  a  reduced  gold  head  grade,  through  increased  rates  of  ore  throughput  and 
increased gold recovery of 90.9%. Gold production was 58,025 oz at AISC of $809/oz, compared to the prior year 
of 59,822 oz at ASIC of $430/oz. The AISC increased largely due to the reduced gold head grade but also as a 
consequence of reduced by-product credits, from lower base metal production and lower base metal prices. 

Mining at Hera has shifted focus from lateral mine development to ore stoping, with a continued reduction in unit 
operating costs. As a consequence of the changing mine plan, sustaining capital reduced by 54% in the period to 
$7.6 million, with the majority of this spend on mine development and the remainder on processing infrastructure. 

With  reduced  costs,  the  mine  has  scheduled  future  ore  sources  using  a  lower  cut-off  grade.  This  strategy  is 
planned to maintain the existing high margin at Hera and deliver increased mine life. 

Hera’s future is a declining gold grade (subject to further exploration success) countered by increased lead and 
zinc  grades.  Operating  costs  are  expected  to  continue  to  reduce  along  with  a  reduction  in  the  amount  of 
sustaining capital required. 

Growth  capital  in  the  period  of  $6.8  million  relates  to  exploration  growth  capital  (see  Discovery  for  further 
discussion on exploration targets). 

The key performance metrics for the Peak Mine are tabulated below. Note that FY18 includes performance from 

the date of acquisition only (10 April 2018 to 30 June 2018). 

2.3  Peak Mine 

Peak Mine 

Sales Revenue ($000's) 

Site EBITDA 

Sustaining capital ($000's) 

Growth capital ($000's) 

Ore Processed (kt) 

Gold grade g/t 

Silver grade g/t 

Copper grade % 

Lead grade % 

Zinc grade % 

Gold Recovery % 

Silver Recovery % 

Copper Recovery % 

Lead Recovery % 

Zinc Recovery % 

Gold production (oz) 

Silver production (oz) 

Copper production (t) 

Lead production (t) 

Zinc production (t) 

FY19 

FY18 

Variance 

161,109 

68,095 

33,806 

17,844    

452,501 

92,832 

62,623 

13,619 

414    

135,345 

73% 

9% 

148% 

4,210% 

234% 

4.2 

23.1 

1.0% 

3.1% 

1.7% 

96.9% 

79.8% 

92.5% 

81.1% 

44.8% 

59,496 

268,224 

4,267 

11,248 

3,356    

1,143    

8.8 

25.7 

1.6% 

1.5% 

0.6% 

97.7% 

75.9% 

93.1% 

76.2% 

29.6% 

37,552 

84,815 

1,968 

1,551 

(52)% 

(10)% 

(38)% 

107% 

183% 

(1)% 

5% 

(1)% 

6% 

51% 

58% 

216% 

117% 

625% 

251    

1,237% 

517    

121% 

AISC $/oz (All In Sustaining Cost) 

(a) Operations 

Peak delivered 59,496 oz of gold at an AISC of $1,143/oz. The significant increase in AISC was largely the result 

of a 52% decrease in gold head grades, with the transition during the year from the very high gold grade Chronos 

zone into lower gold, higher base metal Chronos mineralisation. 

Process  throughout  rates  during  the  year  were  restricted  due  to  the  processing  of  high  grade  gold  and  lead 

Chronos mineralisation, but also due to limitation on available ore sources during the year. 

To resolve issues associated with ore availability and to provide access to higher grade stoping areas, there is a 

significant focus on increasing underground development rates. During the first quarter of the year, lateral mine 

development  of  821  m  was  achieved,  whilst  in  the  last  quarter  of  the  year,  1,363  m  was  achieved.  Sustaining 

capital increased to $33.8 million and was largely related to increased mine development, with minor processing 

and administration capital. 

To improve underground productivities, the mine shifted  to a contractor-operated mining strategy on 1 February 

2019. The contractor, Pybar Pty Ltd, has successfully delivered mining services at the Company’s Hera Mine for 

the past six years. The Company is working with Pybar to achieve the required mine physicals to build flexibility 

into the Peak mine plan. 

To capture the value of increased base metals now and into the future, the Company is investing $53 million in a 

major upgrade of the lead and zinc capacity of the processing plant to enable the processing of high grade base 

metals at throughput rates of up to 800,000 tpa. Commissioning of the new circuit is planned for the March 2020 

quarter.  Once  complete,  a  shift  to  increased  lead  and  zinc  production  is  planned  for  the  second  half  of  next 

financial year. 

The $17.8 million of growth capital in the period is largely related to the lead zinc upgrade project. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  23

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  24

 
 
 
 
  
 
  
 
 
 
 
  
  
 
 
 
 
 
  
 
  
 
 
 
 
  
  
 
 
 
 
 
 
Hera Mine 

Sales revenue ($'000's) 

Site EBITDA 

Sustaining capital ($000's) 

Growth capital ($000's) 

Ore processed (kt) 

Gold grade g/t 

Silver grade g/t 

Lead grade % 

Zinc grade % 

Gold Recovery % 

Silver Recovery % 

Lead Recovery % 

Zinc Recovery % 

Gold production (oz) 

Silver production (oz) 

Lead production (t) 

Zinc production (t) 

AISC $/oz (All in sustaining cost) 

AISC is a non-IFRS measure 

(a) Operations 

FY19 

FY18 

Variance 

133,893 

61,636 

7,610 

6,776    

155,767 

86,448 

16,519 

386    

468,358 

407,131 

(14)% 

(29)% 

(54)% 

1,655% 

15% 

4.2 

10.9 

1.6% 

2.4% 

90.9% 

83.6% 

85.5% 

89.0% 

5.1 

13.4 

2.6% 

3.6% 

89.4% 

88.2% 

89.5% 

89.8% 

58,025 

145,554 

6,599 

10,129    

809    

59,822 

154,645 

9,609 

13,031    

430    

(17)% 

(19)% 

(38)% 

(33)% 

2% 

(5)% 

(4)% 

(1)% 

(3)% 

(6)% 

(31)% 

(22)% 

88% 

The  Hera  mine  performed  strongly  during  the  year  despite  a  decrease  in  gold  and  base  metal  grades.  Gold 

production  was  maintained  with  a  reduced  gold  head  grade,  through  increased  rates  of  ore  throughput  and 

increased gold recovery of 90.9%. Gold production was 58,025 oz at AISC of $809/oz, compared to the prior year 

of 59,822 oz at ASIC of $430/oz. The AISC increased largely due to the reduced gold head grade but also as a 

consequence of reduced by-product credits, from lower base metal production and lower base metal prices. 

Mining at Hera has shifted focus from lateral mine development to ore stoping, with a continued reduction in unit 

operating costs. As a consequence of the changing mine plan, sustaining capital reduced by 54% in the period to 

$7.6 million, with the majority of this spend on mine development and the remainder on processing infrastructure. 

With  reduced  costs,  the  mine  has  scheduled  future  ore  sources  using  a  lower  cut-off  grade.  This  strategy  is 

planned to maintain the existing high margin at Hera and deliver increased mine life. 

Hera’s future is a declining gold grade (subject to further exploration success) countered by increased lead and 

zinc  grades.  Operating  costs  are  expected  to  continue  to  reduce  along  with  a  reduction  in  the  amount  of 

sustaining capital required. 

discussion on exploration targets). 

Growth  capital  in  the  period  of  $6.8  million  relates  to  exploration  growth  capital  (see  Discovery  for  further 

OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

2.  OPERATING AND FINANCIAL PERFORMANCE (CONTINUED) 

2.  OPERATING AND FINANCIAL PERFORMANCE (CONTINUED) 

2.2  Hera Mine 

The key performance metrics for the Hera Mine are tabulated below: 

2.3  Peak Mine 

The key performance metrics for the Peak Mine are tabulated below. Note that FY18 includes performance from 
the date of acquisition only (10 April 2018 to 30 June 2018). 

Peak Mine 

Sales Revenue ($000's) 
Site EBITDA 
Sustaining capital ($000's) 
Growth capital ($000's) 
Ore Processed (kt) 

Gold grade g/t 
Silver grade g/t 

Copper grade % 
Lead grade % 
Zinc grade % 

Gold Recovery % 
Silver Recovery % 
Copper Recovery % 
Lead Recovery % 
Zinc Recovery % 

Gold production (oz) 
Silver production (oz) 
Copper production (t) 
Lead production (t) 
Zinc production (t) 

AISC $/oz (All In Sustaining Cost) 

FY19 

FY18 

Variance 

161,109 
68,095 
33,806 
17,844    
452,501 

92,832 
62,623 
13,619 

414    

135,345 

73% 
9% 
148% 
4,210% 
234% 

4.2 
23.1 

1.0% 
3.1% 
1.7% 

96.9% 
79.8% 
92.5% 
81.1% 
44.8% 

8.8 
25.7 

1.6% 
1.5% 
0.6% 

97.7% 
75.9% 
93.1% 
76.2% 
29.6% 

(52)% 
(10)% 

(38)% 
107% 
183% 

(1)% 
5% 
(1)% 
6% 
51% 

59,496 
268,224 
4,267 
11,248 
3,356    

37,552 
84,815 
1,968 
1,551 

251    

58% 
216% 
117% 
625% 
1,237% 

1,143    

517    

121% 

(a) Operations 
Peak delivered 59,496 oz of gold at an AISC of $1,143/oz. The significant increase in AISC was largely the result 
of a 52% decrease in gold head grades, with the transition during the year from the very high gold grade Chronos 
zone into lower gold, higher base metal Chronos mineralisation. 

Process  throughout  rates  during  the  year  were  restricted  due  to  the  processing  of  high  grade  gold  and  lead 
Chronos mineralisation, but also due to limitation on available ore sources during the year. 

To resolve issues associated with ore availability and to provide access to higher grade stoping areas, there is a 
significant focus on increasing underground development rates. During the first quarter of the year, lateral mine 
development  of  821  m  was  achieved,  whilst  in  the  last  quarter  of  the  year,  1,363  m  was  achieved.  Sustaining 
capital increased to $33.8 million and was largely related to increased mine development, with minor processing 
and administration capital. 

To improve underground productivities, the mine shifted  to a contractor-operated mining strategy on 1 February 
2019. The contractor, Pybar Pty Ltd, has successfully delivered mining services at the Company’s Hera Mine for 
the past six years. The Company is working with Pybar to achieve the required mine physicals to build flexibility 
into the Peak mine plan. 

To capture the value of increased base metals now and into the future, the Company is investing $53 million in a 
major upgrade of the lead and zinc capacity of the processing plant to enable the processing of high grade base 
metals at throughput rates of up to 800,000 tpa. Commissioning of the new circuit is planned for the March 2020 
quarter.  Once  complete,  a  shift  to  increased  lead  and  zinc  production  is  planned  for  the  second  half  of  next 
financial year. 

The $17.8 million of growth capital in the period is largely related to the lead zinc upgrade project. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  23

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  24

 
 
 
 
  
 
  
 
 
 
 
  
  
 
 
 
 
 
  
 
  
 
 
 
 
  
  
 
 
 
 
 
 
OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

2. OPERATING AND FINANCIAL PERFORMANCE (CONTINUED) 

2.  OPERATING AND FINANCIAL PERFORMANCE (CONTINUED) 

2.3 Peak Mine (continued) 

The lead zinc upgrade was originally justified on the high grade Chronos lead zinc mineralisation and the Great 
Cobar  base  metal  mineralisation.  However,  the  discovery  this  year  of  the  high  grade  gold-lead-zinc  zone  at 
Kairos  (see  Discovery  section  for  further  details)  provides  further  support  for  the  major  upgrade  of  the  Peak 
processing plant. 

The other major project at Peak is the exploration decline to access further drilling programs at Great Cobar. The 
Great Cobar zone (gold/copper and lead/zinc lodes) comprises a total Indicated and Inferred Mineral Resource of 
5.3  million  tonnes  at  0.7  g/t  Au,  2.1%  Cu,  0.1  %  Pb,  0.4%  Zn  and  6  g/t  Ag  (for  further  details  please  refer  to 
Mineral Resource and Ore Reserve Statement - June 2019, released to ASX on 19 July 2019). 

The primary regulatory approval (Review of Environmental Factors) for the exploration decline has been received 
during  the  year,  with  ancillary  approvals  pending,  the  most  significant  being  a  groundwater  work  approval  to 
enable dewatering. 

In  the  year  ahead,  a  continued  investment  in  underground  development  is  planned,  with  a  particular  focus  on 
accelerating development to the bottom of the currently defined Kairos zone. 

Once the mill upgrade is complete, increased ore throughput should reduce unit operating costs, but this will be 
countered  by  the  impact  of  a significant  increase in operating  mine development  (to  build  flexibility  in  the mine 
plan).  The  AISC/oz  is  expected  to  be  somewhat  higher  next  financial  year,  before  reducing  with  the  expected 
delivery of high margin Kairos mineralisation. 

2.4 Discovery 

With  enhanced  financial  capacity  and  growing  geological  understanding,  the  Company  commenced  significant 
exploration programs this financial year. Exploration capital in the year was $6.8 million  with the majority of this 
invested at Hera in regional and near mine targets. 

The  results  have  been  significant,  with  the  discovery  of  a  large-scale  polymetallic  zone  of  mineralisation  at 
Federation, only 10 km south of the Hera Mine and the discovery of high-grade gold-lead-zinc mineralisation at 
Kairos (at depth below the existing Peak Mine). 

The planned exploration spend for the next financial year has increased to $15 million to support the testing of 
multiple near-mine and regional targets. 

Federation 

(a) 
In  early  May  2019,  the  Company  announced  the  discovery  of  high-grade  base  metal  mineralisation  at  the 
Federation  prospect,  10  kilometres  south-southwest  of  the  Hera  Mine  (ASX  release  6  May  2019).  Initial 
exploration  focused on  the  upper  parts  of  the  prospect and  returned  encouraging  lead  and  zinc mineralisation. 
However, the results of a deeper test of the system (ASX release 26 June 2019) highlight the significant potential 
of this prospect. Drilling more than 500 m below the surface, returned semimassive to massive zinc-lead sulphide 
breccias with a best intercept of 26 metres at 16.4% Pb+Zn & 0.3% Cu, including 11.5 metres at 31.1% Pb+Zn, 
0.2%  Cu. Work  is  ongoing  to understand  the  controls of mineralisation  and  to assess  the  resource  potential  of 
this prospect. 

(b) 

Kairos (formerly Peak Deeps) 

The Company announced in February 2019 the discovery of high grade gold and base metals below the existing 
Peak  Mine  workings,  further  supported  by  another  round  of  results  announced  on  16  April  2019  (ASX  release 
Peak Mine Exploration Update). Drill intercepts included 16 metres at 71.6 g/t gold and 8.5% Pb+Zn, 14 metres 
at 42.9 g/t gold and 13.4% Pb+Zn and 23 metres at 25.9 g/t gold and 33.2% Pb+Zn. The results highlight the high 
grade potential of the Kairos system, with mineralisation open at depth. 

The  setting  of  Kairos  has  a  strong  geological  association  with  the  high-grade  Chronos  zone  (within  the 
Perseverance Mine workings). The Kairos zone is at a similar depth to the currently mined Chronos Zone, but is 
around 700 metres to the north, below the Peak Mine workings. A decline from the Perseverance Mine workings 
is planned to access the bottom of the Kairos Zone to enable infill drilling and ore development, towards the end 
of the financial year. 

2.4  Discovery (continued) 

(c) 

Chronos 

during the following year. 

2.5  Nymagee 

revisited. 

2.6  Corporate 

costs (Discovery). 

(a)  Balance sheet 

Drilling during the year to extend the Chronos zone upwards successfully returned high grade base metal results, 

with a best intercept of 24 metres at 29.6% Pb+Zn, 0.4g/t Au & 44g/t Ag (ASX release 27 May 2019). High grade 

mineralisation was extended more than 100 metres above current resource limits, but with lower gold and higher 

base metals  prevalent.  The upper  Chronos  area  remains  open up-dip  with  further  underground  drilling  planned 

During the year, the Nymagee Pre-feasibility Study was deferred based on metallurgical testwork which indicated 

a reduction in economically recoverable resource tonnes (ASX release 4 June 2019). The Company may rescope 

the  project  on  the  basis  of  the  reduction  in  tonnes  and  the  potential  impact  of  any  future  exploration  success. 

Should  future  exploration  increase  resources  significantly,  the  development  potential  of  Nymagee  may  be 

Corporate costs for the period were $6.9 million and include an accrual of costs associated with the departure of 

the former CEO & Managing Director of $1 million. Corporate general and administration costs are forecast to be 

in the order  of $6-7 million in the following financial year, excluding costs associated with corporate exploration 

Total  assets  increased  during  the  year  to  $321.1  million  (30  June  2018:  $266.5  million),  representing  a  20% 

increase. This increase is primarily due to increased cash (increase of $37.4 million in the year to a total position 

of $104.3 million at 30 June 2019) and inventory, together with increased mine assets (net of depreciation) and 

the capitalisation of exploration costs (due to successful results received to date). 

Group capital expenditure in the period was $66 million, consisting of $37 million of mine development (Peak: 

$31  million;  Hera:  $6  million),  $22  million  of  PP&E  (Peak:  $21  million;  Hera:  $1  million)  and  $7  million  of 

exploration capital. 

Depreciation and amortisation expense during the year was $51.9 million and the depreciation and amortisation 

on  a  like-for-like  basis  in  the  next  financial  year  is  expected  to  range  some  10-20%  higher.  Additional  

depreciation in the order of $5-6 million is estimated to be associated with the Right-of-Use assets under the new 

lease accounting standard AASB 16 (see detail below). As discussed in detail below, the increased depreciation 

associated with the Right-of-Use assets will be largely offset by a reduction in operating costs. 

Total liabilities for the Group increased to $99.6 million at 30 June 2019, a  19% increase on the prior year (30 

June  2018:  $83.5  million).  The  increase  was  largely  the  result  of  the  recognition  of  a  $12  million  liability  at  30 

June 2019 (nil at 30 June 2018) associated with gold hedging. This liability is the marked-to-market position of 

56,000 oz of gold forwards at an average close out price at 30 June 2019 of A$1,797/oz and the spot price at 30 

June 2019 of A$2,012/oz. It should be noted that as the gold forwards were not closed out on 30 June 2019, the 

average delivery price to June 2020 is expected to average A$1,809/oz. 

The  other  significant  increase  is  the  $11.1  million  increase  in  non-current  provisions  to  $47.7  million,  which 

largely reflects an increase in the fair value estimate of future mine rehabilitation obligations. 

• 

Impact of new AASB16 - Leases 

The  revised  accounting  standard  on  leases  (AASB  16)  becomes  effective  for  the  Company  from  1  July  2019.  

This standard requires the Company to review each supply contract that it holds to determine if there is a right to 

control  the  use  of  an  ‘identified  asset’  within  supply  contracts.  For  each  ‘identified  asset’  the  Company  must 

recognise a “Right of Use Asset” which is in simple terms is the present value of future lease payments implicit in 

the  lease  associated  with  the  identified  asset,  and  a  “Lease  Liability”  which  is  essentially  the  present  value  of 

future  lease  payments.  The  Right  of  Use  Asset  is  amortised  over  the  term  of  the  lease  (increasing  reported 

depreciation)  and  the  lease  payment  is  removed  from  operating  costs  and  is  applied  against  the  lease  liability 

(reducing reported Cost of Goods Sold). The ‘unwinding’ of the present value of the lease liability is taken as a 

finance charge, increasing reported finance costs. This treatment is similar to the current accounting for finance 

leases. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  25

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  26

 
 
 
 
 
 
 
 
 
OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

2. OPERATING AND FINANCIAL PERFORMANCE (CONTINUED) 

2.  OPERATING AND FINANCIAL PERFORMANCE (CONTINUED) 

2.3 Peak Mine (continued) 

The lead zinc upgrade was originally justified on the high grade Chronos lead zinc mineralisation and the Great 

Cobar  base  metal  mineralisation.  However,  the  discovery  this  year  of  the  high  grade  gold-lead-zinc  zone  at 

Kairos  (see  Discovery  section  for  further  details)  provides  further  support  for  the  major  upgrade  of  the  Peak 

processing plant. 

The other major project at Peak is the exploration decline to access further drilling programs at Great Cobar. The 

Great Cobar zone (gold/copper and lead/zinc lodes) comprises a total Indicated and Inferred Mineral Resource of 

5.3  million  tonnes  at  0.7  g/t  Au,  2.1%  Cu,  0.1  %  Pb,  0.4%  Zn  and  6  g/t  Ag  (for  further  details  please  refer  to 

Mineral Resource and Ore Reserve Statement - June 2019, released to ASX on 19 July 2019). 

The primary regulatory approval (Review of Environmental Factors) for the exploration decline has been received 

during  the  year,  with  ancillary  approvals  pending,  the  most  significant  being  a  groundwater  work  approval  to 

enable dewatering. 

In  the  year  ahead,  a  continued  investment  in  underground  development  is  planned,  with  a  particular  focus  on 

accelerating development to the bottom of the currently defined Kairos zone. 

Once the mill upgrade is complete, increased ore throughput should reduce unit operating costs, but this will be 

countered  by  the  impact  of  a significant  increase in operating  mine development  (to  build  flexibility  in  the mine 

plan).  The  AISC/oz  is  expected  to  be  somewhat  higher  next  financial  year,  before  reducing  with  the  expected 

delivery of high margin Kairos mineralisation. 

2.4 Discovery 

With  enhanced  financial  capacity  and  growing  geological  understanding,  the  Company  commenced  significant 

exploration programs this financial year. Exploration capital in the year was $6.8 million  with the majority of this 

invested at Hera in regional and near mine targets. 

The  results  have  been  significant,  with  the  discovery  of  a  large-scale  polymetallic  zone  of  mineralisation  at 

Federation, only 10 km south of the Hera Mine and the discovery of high-grade gold-lead-zinc mineralisation at 

Kairos (at depth below the existing Peak Mine). 

The planned exploration spend for the next financial year has increased to $15 million to support the testing of 

multiple near-mine and regional targets. 

(a) 

Federation 

In  early  May  2019,  the  Company  announced  the  discovery  of  high-grade  base  metal  mineralisation  at  the 

Federation  prospect,  10  kilometres  south-southwest  of  the  Hera  Mine  (ASX  release  6  May  2019).  Initial 

exploration  focused on  the  upper  parts  of  the  prospect and  returned  encouraging  lead  and  zinc mineralisation. 

However, the results of a deeper test of the system (ASX release 26 June 2019) highlight the significant potential 

of this prospect. Drilling more than 500 m below the surface, returned semimassive to massive zinc-lead sulphide 

breccias with a best intercept of 26 metres at 16.4% Pb+Zn & 0.3% Cu, including 11.5 metres at 31.1% Pb+Zn, 

0.2%  Cu. Work  is  ongoing  to understand  the  controls of mineralisation  and  to assess  the  resource  potential  of 

this prospect. 

(b) 

Kairos (formerly Peak Deeps) 

The Company announced in February 2019 the discovery of high grade gold and base metals below the existing 

Peak  Mine  workings,  further  supported  by  another  round  of  results  announced  on  16  April  2019  (ASX  release 

Peak Mine Exploration Update). Drill intercepts included 16 metres at 71.6 g/t gold and 8.5% Pb+Zn, 14 metres 

at 42.9 g/t gold and 13.4% Pb+Zn and 23 metres at 25.9 g/t gold and 33.2% Pb+Zn. The results highlight the high 

grade potential of the Kairos system, with mineralisation open at depth. 

The  setting  of  Kairos  has  a  strong  geological  association  with  the  high-grade  Chronos  zone  (within  the 

Perseverance Mine workings). The Kairos zone is at a similar depth to the currently mined Chronos Zone, but is 

around 700 metres to the north, below the Peak Mine workings. A decline from the Perseverance Mine workings 

is planned to access the bottom of the Kairos Zone to enable infill drilling and ore development, towards the end 

of the financial year. 

2.4  Discovery (continued) 

(c) 

Chronos 

Drilling during the year to extend the Chronos zone upwards successfully returned high grade base metal results, 
with a best intercept of 24 metres at 29.6% Pb+Zn, 0.4g/t Au & 44g/t Ag (ASX release 27 May 2019). High grade 
mineralisation was extended more than 100 metres above current resource limits, but with lower gold and higher 
base metals  prevalent.  The upper  Chronos  area  remains  open up-dip  with  further  underground  drilling  planned 
during the following year. 

2.5  Nymagee 

During the year, the Nymagee Pre-feasibility Study was deferred based on metallurgical testwork which indicated 
a reduction in economically recoverable resource tonnes (ASX release 4 June 2019). The Company may rescope 
the  project  on  the  basis  of  the  reduction  in  tonnes  and  the  potential  impact  of  any  future  exploration  success. 
Should  future  exploration  increase  resources  significantly,  the  development  potential  of  Nymagee  may  be 
revisited. 

2.6  Corporate 

Corporate costs for the period were $6.9 million and include an accrual of costs associated with the departure of 
the former CEO & Managing Director of $1 million. Corporate general and administration costs are forecast to be 
in the order  of $6-7 million in the following financial year, excluding costs associated with corporate exploration 
costs (Discovery). 

(a)  Balance sheet 
Total  assets  increased  during  the  year  to  $321.1  million  (30  June  2018:  $266.5  million),  representing  a  20% 
increase. This increase is primarily due to increased cash (increase of $37.4 million in the year to a total position 
of $104.3 million at 30 June 2019) and inventory, together with increased mine assets (net of depreciation) and 
the capitalisation of exploration costs (due to successful results received to date). 

Group capital expenditure in the period was $66 million, consisting of $37 million of mine development (Peak: 
$31  million;  Hera:  $6  million),  $22  million  of  PP&E  (Peak:  $21  million;  Hera:  $1  million)  and  $7  million  of 
exploration capital. 

Depreciation and amortisation expense during the year was $51.9 million and the depreciation and amortisation 
on  a  like-for-like  basis  in  the  next  financial  year  is  expected  to  range  some  10-20%  higher.  Additional  
depreciation in the order of $5-6 million is estimated to be associated with the Right-of-Use assets under the new 
lease accounting standard AASB 16 (see detail below). As discussed in detail below, the increased depreciation 
associated with the Right-of-Use assets will be largely offset by a reduction in operating costs. 

Total liabilities for the Group increased to $99.6 million at 30 June 2019, a  19% increase on the prior year (30 
June  2018:  $83.5  million).  The  increase  was  largely  the  result  of  the  recognition  of  a  $12  million  liability  at  30 
June 2019 (nil at 30 June 2018) associated with gold hedging. This liability is the marked-to-market position of 
56,000 oz of gold forwards at an average close out price at 30 June 2019 of A$1,797/oz and the spot price at 30 
June 2019 of A$2,012/oz. It should be noted that as the gold forwards were not closed out on 30 June 2019, the 
average delivery price to June 2020 is expected to average A$1,809/oz. 

The  other  significant  increase  is  the  $11.1  million  increase  in  non-current  provisions  to  $47.7  million,  which 
largely reflects an increase in the fair value estimate of future mine rehabilitation obligations. 

• 

Impact of new AASB16 - Leases 

The  revised  accounting  standard  on  leases  (AASB  16)  becomes  effective  for  the  Company  from  1  July  2019.  
This standard requires the Company to review each supply contract that it holds to determine if there is a right to 
control  the  use  of  an  ‘identified  asset’  within  supply  contracts.  For  each  ‘identified  asset’  the  Company  must 
recognise a “Right of Use Asset” which is in simple terms is the present value of future lease payments implicit in 
the  lease  associated  with  the  identified  asset,  and  a  “Lease  Liability”  which  is  essentially  the  present  value  of 
future  lease  payments.  The  Right  of  Use  Asset  is  amortised  over  the  term  of  the  lease  (increasing  reported 
depreciation)  and  the  lease  payment  is  removed  from  operating  costs  and  is  applied  against  the  lease  liability 
(reducing reported Cost of Goods Sold). The ‘unwinding’ of the present value of the lease liability is taken as a 
finance charge, increasing reported finance costs. This treatment is similar to the current accounting for finance 
leases. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  25

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  26

 
 
 
 
 
 
 
 
 
OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

2.  OPERATING AND FINANCIAL PERFORMANCE (CONTINUED) 

2.  OPERATING AND FINANCIAL PERFORMANCE (CONTINUED) 

2.6  Corporate (continued) 
The  Company  has  completed  an  extensive  assessment  of  contracts  with  suppliers  to  determine  whether  they 
may  contain  ‘leases’  for  assets  within  the  scope  of  AASB  16,  based  on  the  definitions  outlined  in  the  new 
standard. 

The  determined  lease  amount  to  be  recognised  on  the  balance  sheet,  as  a  long-term  ‘lease  liability’  and 
corresponding  ‘Right  Of  Use’  lease  asset  (“ROUA”),  is  $18  million.  More  than  60%  of  the  ROUA  balance 
comprises  underground  mining  equipment  and  some  30%  relates  to  power  generation  and  mine  refrigeration 
equipment. 

The estimated financial impacts of adopting AASB16 in FY20 is as follows: 

• Reduced operating costs Yrs 1-2 $6-7 million/y, then $1-4 million/y over following 3yrs 
• Increased D&A on ROUA Yrs 1-2 $5-6 million/y, then $1-3 million/y over following 3yrs 
• Increased finance charge Yrs 1-5 $0.3-0.6 million/y 

These numbers will change with any change in underlying contracts or changes in identified assets or changes in 
estimates of implied interest rates associated with existing or new supply contracts. 

(b)  Cash flow 
Net cash inflows for the year amounted to $37.4 million (30 June 2018: $32.1 million). 

Group summary of cash flows 

Net cash flows from operating activities 
Investing activities 
Financing activities 
Net movement in cash 

Cash at the beginning of the year 
Cash at the end of the year 

FY19 
$000  
106,783  
(68,653)  
(753)  
37,377  

FY18 
$000  
151,759  
(89,749)  
(29,948)     
32,062  

66,925 
104,302     

34,863 
66,925     

Variance 

The profile of this hedge position is: 

(30)% 
24% 
97% 
17% 

92% 
56% 

Net  cash  inflow  from  operating  activities  was  $106.8  million,  a  decrease  of  $45  million  from  prior  year.  The 
reduction  in  operating  cash  flows  was  largely  a  result  of  the  transition  from  extremely  high  margin  Chronos 
production at Peak into more normalised production activities in the current year. 

Included in the operating cash inflow are income tax payments totalling $17.3 million (30 June 2018: $8.9 million). 

Net  cash  outflow  from  investing  activities  was  $68.6  million,  a  $21.1  million  decrease  on  the  prior  year  which 
included  cash  outflows  associated  with  the  Peak  Mine  acquisition.  The  key  investing  activities  this  year 
comprised  $37  million  of  sustaining  mine  and  processing  capital  and  $22  million  of  processing  and  discovery 
growth capital ($6.8 million was invested in exploration capital). 

Net  cash  outflow  from  financing  activities  was  $0.8  million  outflow,  an  decrease  of  $29  million  from  prior  year.  
The  prior  year  cash outflows reflected  the  net  proceeds of equity  raisings  associated  with  the  Peak  acquisition 
and the repayment of all debt facilities. 

(c)  Equity 
Pacific  Road  Capital,  a  former  significant  shareholder,  exercised  10  million  options  at  $0.0125/share  in 
September 2018 and subsequently sold the 10 million shares to institutional investors. 

In  February  2019,  former  substantial  shareholder,  Glencore  sold  its  entire  5.4%  interest  in  the  Company  to  a 
range of institutional investors. 

(d)  Taxation 
The tax expense for the year, which is the aggregate of current tax and deferred tax, is $15.0 million. This is a 
$21.8 million negative variance relative to the prior year as the business moved into a tax payable position. The 
tax expense reflects a 29% effective tax rate on pre-tax profit, with the utilisation of prior year tax losses netted off 
against the reduction in the deferred tax asset at 30 June 2019. 

2.6  Corporate (continued) 

A  review  of  allowable  tax-deductible  expenses  was  conducted  during  the  year.  This  work  has  resulted  in  a 

restatement of the FY18 tax return, with change being the restatement of carry forward losses of approximately 

$8 million at 30 June 2018, as opposed to the prior position of full utilisation of all available losses. At 30 June 

2019, the Group had utilised all tax losses against the current year taxable profit. 

(e)  Hedging 

revenue. 

At  30  June  2019,  the  total  gold  forward  sales  position  was  56,000  oz  gold  at  an  average  delivery  price  of 

A$1,809/oz. This level of gold hedging protects some 59-66% of gold revenue next year (based on FY20 outlook 

production  of  85-95,000  oz),  but  due  to  the  contribution  from  base  metals,  represents  30%-40%  of  group 

The A$ gold price averaged A$1,668/oz during the first five months of the year, a price not dissimilar to the prior 

financial year. However, a sustained increase in the US$ gold price in December 2018 combined with continued 

low A$/US$ exchange rate has caused a continued rise in A$ gold prices, culminating in a June 2019 average 

price  of  A$2,008/oz.  The increased  gold  price  has benefited  revenue, particularly during the second  half of the 

year, but the impact has been reduced by losses recorded on the Company’s gold hedge book. 

The Company’s commodity derivative position, which is substantially related to gold hedging, moved from a gain 

in the prior year to a net loss of $15.9 million in the current year. Approximately $12.0 million of this recorded loss 

is  unrealised  and  the  actual  gain  or  loss  will  depend  on  the  price  of  gold  when  the  gold  forwards  are  actually 

closed out according to the delivery schedule over the next 12 months to 30 June 2020. 

• For the first five months of the year (to November 2019), a total of 35,000 oz gold is deliverable at an average 

price of A$1,748/oz; and 

• From December 2019 to June 2020, a total of 21,000 oz gold is deliverable at an average price of A$1,911/oz. 

The Company continues to monitor its hedge position and will manage the position based on  the future financial 

and operating risk profile of the business and the prevailing spot gold price. 

3.  MATERIAL BUSINESS RISKS 

Aurelia  Metals  prepares  its  business  plan  using  estimates  of  production  and  financial  performance  based  on a 

range  of  assumptions  and  forecasts.  There  is  uncertainty  in  these  assumptions  and  forecasts,  and  risk  that 

variation  from  them  could  result  in  actual  performance being  different  to  expected outcomes.  The  uncertainties 

arise  from  a  range  of  factors,  including  the  nature  of  the  mining  industry,  and  general  economic  factors.  The 

material business risks faced by the Group that may have an impact on the operating and financial prospects of 

the Group at period end include: 

3.1 Fluctuations in commodity prices 

The Group’s revenues are exposed to fluctuations in the US$ price of gold, silver, lead, zinc and copper. Volatility 

in  metal  prices  creates  revenue  uncertainty,  and  requires  careful  management  of  business  performance  to 

ensure that operating cash margins are maintained despite volatile metal prices. 

Metal prices are denominated in US$, hence the Company has a foreign exchange price risk when the US$ price 

of a particular commodity is translated back to A$ amounts. 

During the financial year, gold sales were 113,142 ounces. The effect on the income statement with an A$50/oz 

increase/decrease in gold price would have been an increase/decrease in gold revenue of $5.7 million. 

The  Company  has  hedged  approximately  60-65%  of its  forecast  gold  production  in  FY20.  A minimum  effective 

price for hedged production is approximately A$1,809/oz, regardless of the future spot price of gold. 

During the financial year, the company sold base metal concentrates containing payable lead of 15,801 tonnes, 

payable zinc of 8,321 tonnes, and payable copper of 3,832 tonnes. An increase/decrease of US$50/t in the price 

of lead, zinc and copper would increase/decrease revenue by $2.1 million. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  27

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  28

 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
  
 
OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

2.  OPERATING AND FINANCIAL PERFORMANCE (CONTINUED) 

2.  OPERATING AND FINANCIAL PERFORMANCE (CONTINUED) 

2.6  Corporate (continued) 

The  Company  has  completed  an  extensive  assessment  of  contracts  with  suppliers  to  determine  whether  they 

may  contain  ‘leases’  for  assets  within  the  scope  of  AASB  16,  based  on  the  definitions  outlined  in  the  new 

The  determined  lease  amount  to  be  recognised  on  the  balance  sheet,  as  a  long-term  ‘lease  liability’  and 

corresponding  ‘Right  Of  Use’  lease  asset  (“ROUA”),  is  $18  million.  More  than  60%  of  the  ROUA  balance 

comprises  underground  mining  equipment  and  some  30%  relates  to  power  generation  and  mine  refrigeration 

standard. 

equipment. 

The estimated financial impacts of adopting AASB16 in FY20 is as follows: 

• Reduced operating costs Yrs 1-2 $6-7 million/y, then $1-4 million/y over following 3yrs 

• Increased D&A on ROUA Yrs 1-2 $5-6 million/y, then $1-3 million/y over following 3yrs 

• Increased finance charge Yrs 1-5 $0.3-0.6 million/y 

These numbers will change with any change in underlying contracts or changes in identified assets or changes in 

estimates of implied interest rates associated with existing or new supply contracts. 

(b)  Cash flow 

Net cash inflows for the year amounted to $37.4 million (30 June 2018: $32.1 million). 

Group summary of cash flows 

Net cash flows from operating activities 

Investing activities 

Financing activities 

Net movement in cash 

Cash at the beginning of the year 

Cash at the end of the year 

FY19 

$000  

106,783  

(68,653)  

(753)  

37,377  

FY18 

$000  

151,759  

(89,749)  

(29,948)     

32,062  

66,925 

104,302     

34,863 

66,925     

(30)% 

24% 

97% 

17% 

92% 

56% 

Net  cash  inflow  from  operating  activities  was  $106.8  million,  a  decrease  of  $45  million  from  prior  year.  The 

reduction  in  operating  cash  flows  was  largely  a  result  of  the  transition  from  extremely  high  margin  Chronos 

production at Peak into more normalised production activities in the current year. 

Included in the operating cash inflow are income tax payments totalling $17.3 million (30 June 2018: $8.9 million). 

Net  cash  outflow  from  investing  activities  was  $68.6  million,  a  $21.1  million  decrease  on  the  prior  year  which 

included  cash  outflows  associated  with  the  Peak  Mine  acquisition.  The  key  investing  activities  this  year 

comprised  $37  million  of  sustaining  mine  and  processing  capital  and  $22  million  of  processing  and  discovery 

growth capital ($6.8 million was invested in exploration capital). 

Net  cash  outflow  from  financing  activities  was  $0.8  million  outflow,  an  decrease  of  $29  million  from  prior  year.  

The  prior  year  cash outflows reflected  the  net  proceeds of equity  raisings  associated  with  the  Peak  acquisition 

and the repayment of all debt facilities. 

(c)  Equity 

range of institutional investors. 

(d)  Taxation 

Pacific  Road  Capital,  a  former  significant  shareholder,  exercised  10  million  options  at  $0.0125/share  in 

September 2018 and subsequently sold the 10 million shares to institutional investors. 

In  February  2019,  former  substantial  shareholder,  Glencore  sold  its  entire  5.4%  interest  in  the  Company  to  a 

The tax expense for the year, which is the aggregate of current tax and deferred tax, is $15.0 million. This is a 

$21.8 million negative variance relative to the prior year as the business moved into a tax payable position. The 

tax expense reflects a 29% effective tax rate on pre-tax profit, with the utilisation of prior year tax losses netted off 

against the reduction in the deferred tax asset at 30 June 2019. 

2.6  Corporate (continued) 
A  review  of  allowable  tax-deductible  expenses  was  conducted  during  the  year.  This  work  has  resulted  in  a 
restatement of the FY18 tax return, with change being the restatement of carry forward losses of approximately 
$8 million at 30 June 2018, as opposed to the prior position of full utilisation of all available losses. At 30 June 
2019, the Group had utilised all tax losses against the current year taxable profit. 

(e)  Hedging 
At  30  June  2019,  the  total  gold  forward  sales  position  was  56,000  oz  gold  at  an  average  delivery  price  of 
A$1,809/oz. This level of gold hedging protects some 59-66% of gold revenue next year (based on FY20 outlook 
production  of  85-95,000  oz),  but  due  to  the  contribution  from  base  metals,  represents  30%-40%  of  group 
revenue. 

The A$ gold price averaged A$1,668/oz during the first five months of the year, a price not dissimilar to the prior 
financial year. However, a sustained increase in the US$ gold price in December 2018 combined with continued 
low A$/US$ exchange rate has caused a continued rise in A$ gold prices, culminating in a June 2019 average 
price  of  A$2,008/oz.  The increased  gold  price  has benefited  revenue, particularly during the second  half of the 
year, but the impact has been reduced by losses recorded on the Company’s gold hedge book. 

The Company’s commodity derivative position, which is substantially related to gold hedging, moved from a gain 
in the prior year to a net loss of $15.9 million in the current year. Approximately $12.0 million of this recorded loss 
is  unrealised  and  the  actual  gain  or  loss  will  depend  on  the  price  of  gold  when  the  gold  forwards  are  actually 
closed out according to the delivery schedule over the next 12 months to 30 June 2020. 

Variance 

The profile of this hedge position is: 

• For the first five months of the year (to November 2019), a total of 35,000 oz gold is deliverable at an average 
price of A$1,748/oz; and 

• From December 2019 to June 2020, a total of 21,000 oz gold is deliverable at an average price of A$1,911/oz. 

The Company continues to monitor its hedge position and will manage the position based on  the future financial 
and operating risk profile of the business and the prevailing spot gold price. 

3.  MATERIAL BUSINESS RISKS 

Aurelia  Metals  prepares  its  business  plan  using  estimates  of  production  and  financial  performance  based  on a 
range  of  assumptions  and  forecasts.  There  is  uncertainty  in  these  assumptions  and  forecasts,  and  risk  that 
variation  from  them  could  result  in  actual  performance being  different  to  expected outcomes.  The  uncertainties 
arise  from  a  range  of  factors,  including  the  nature  of  the  mining  industry,  and  general  economic  factors.  The 
material business risks faced by the Group that may have an impact on the operating and financial prospects of 
the Group at period end include: 

3.1 Fluctuations in commodity prices 
The Group’s revenues are exposed to fluctuations in the US$ price of gold, silver, lead, zinc and copper. Volatility 
in  metal  prices  creates  revenue  uncertainty,  and  requires  careful  management  of  business  performance  to 
ensure that operating cash margins are maintained despite volatile metal prices. 

Metal prices are denominated in US$, hence the Company has a foreign exchange price risk when the US$ price 
of a particular commodity is translated back to A$ amounts. 

During the financial year, gold sales were 113,142 ounces. The effect on the income statement with an A$50/oz 
increase/decrease in gold price would have been an increase/decrease in gold revenue of $5.7 million. 

The  Company  has  hedged  approximately  60-65%  of its  forecast  gold  production  in  FY20.  A minimum  effective 
price for hedged production is approximately A$1,809/oz, regardless of the future spot price of gold. 

During the financial year, the company sold base metal concentrates containing payable lead of 15,801 tonnes, 
payable zinc of 8,321 tonnes, and payable copper of 3,832 tonnes. An increase/decrease of US$50/t in the price 
of lead, zinc and copper would increase/decrease revenue by $2.1 million. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  27

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  28

 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
  
 
OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

3.  MATERIAL BUSINESS RISKS (CONTINUED) 

3.1  Fluctuations in commodity prices (continued) 

Declining  metal  prices  can  also  impact  operations  by  requiring  a  reassessment  of  the  feasibility  of  a  particular 
exploration or development project. Even if a project is ultimately determined to be economically viable, the need 
to conduct such a reassessment could cause substantial delays and/or may interrupt operations, which may have 
a material adverse effect on our results of operations and financial position. 

3.2  Ore reserves and resources 

Company ore reserves and mineral resources are estimates, and no assurance can be given that the estimated 
reserves and resources are accurate or that the indicated level of metal or other mineral will be produced. Such 
estimates  are,  in  large  part,  based  on  interpretations  of  geological  data  obtained  from  drill  holes  and  other 
sampling  techniques.  Actual  mineralisation  or  geological  conditions  may  be  different  from  those  predicted.  No 
assurance can be given that any part or all of the Company’s mineral resources constitute or will be converted 
into reserves. 

Market price fluctuations of metal prices as well as increased production and capital costs may render some of 
the  Company’s  ore  reserves  unprofitable  to  develop  for  periods  of  time  or  may  render  some  low  margin  ore 
reserves uneconomic. Reserves may have to be re-estimated based on actual production and cost experience. 
Any of these factors may require the Company to modify its ore reserves, which could have either a positive or 
negative impact on the Company’s financial results. 

3.3  Replacement of depleted reserves 

The  Company  must  continually  replace  reserves  depleted  by  production  to  maintain  production  levels  over  the 
long-term.  Reserves  can  be  replaced  by  expanding  known  ore  bodies,  locating  new  deposits,  acquiring  new 
assets or achieving higher levels of conversion from resource to reserve with improvements in production costs 
and or metal prices. Exploration is highly speculative in nature and as such, the Company’s exploration projects 
involve many risks and can often be unsuccessful. Once a prospect with mineralisation is discovered, it may take 
several years from the initial discovery phase until production is possible. 

As a result, there is no assurance that current or future exploration programs will be successful. There is a risk 
that depletion of reserves will not be offset by discoveries or acquisitions, or that divestures of assets will lead to 
a  lower  reserve  base.  The  mineral  base  of  the  Company  may  decline  if  reserves  are  mined  without  adequate 
replacement  and  the  Company  may  not  be  able  to  sustain  production  beyond  the  current  mine  life,  based  on 
current production rates. 

3.4  Management skills and depth 

The  mining  industry  in  general  is  subject  to  a  shortage  of  suitably  experienced  and  qualified  personnel  in  key 
technical roles. Attracting and retaining key persons with specific knowledge and skills are critical to the viability 
and growth of the Company. The Company maintains a suitably structured remuneration strategy to assist with 
the attraction and retention of key employees. However, the risk of loss of key employees is always prevalent and 
typically is out of the control of the Company. This risk is managed through having active and broad recruitment 
channels and the ability to rely upon suitably qualified external contractors when required to backfill vacancies. 

3.5  Water scarcity 

Water is a scarce commodity in western NSW. Water is a significant input into processing activities and access to 
sufficient  water  to  support  current  and  future  activities  is  critical.  The  impact  of  drought  conditions  serves  to 
increase this risk. 

Hera currently relies on ground water accessed by bores for its water needs. The mine is assessing a range of 
options  to  mitigate  the  long  term  risk  of  water  shortages,  including  the  installation  of  a  water  pipeline  from  the 
historic  Nymagee  workings,  improving  water  efficiency  within  existing  operations,  assessing  ground  water 
availability from current mine workings and assessing nearby ground water resources. 

Peak currently utilises a range of water sources which include a water allocation from the Cobar Water Board. To 
mitigate the risk of reduced water allocations, the mine has implemented a water recycling program to improve 
the  efficiency  of  its  water use  and  it  is  currently  progressing  through  a permitting  process  to  allow  utilisation  of 
significant volumes of ground water in old mine workings within the Company’s mining lease. 

3.  MATERIAL BUSINESS RISKS (CONTINUED) 

3.6  Community relations 

The  Company  has  operations  near  established  communities.  The  Company  recognises  that  a  failure  to 

appropriately manage local community stakeholder expectations may lead to dissatisfaction with the Company, 

which has the potential to disrupt production and exploration activities and delay the approval timelines for key 

development activities. The Company has an active community engagement program to understand stakeholders 

needs to help mitigate this risk. 

3.7  Environmental, health and safety regulations, permits 

The  Company’s  mining  and  processing  operations  and  exploration  activities  are  subject  to  extensive  laws  and 

regulations  governing  the  protection  of  the  environment,  including:  waste  disposal,  worker  safety,  mine 

development  and  protection  of  endangered  and  other  special  status  species.  The  Company’s  ability  to  obtain 

permits and approvals and to successfully operate may be adversely impacted by real or perceived detrimental 

events  associated  with  the  Company’s  activities  or those  of  other mining companies  affecting  the environment, 

human  health  and  safety  or  the  surrounding  communities.  Delays  in  obtaining  or  failure  to  obtain  government 

permits and approvals may adversely affect the Company’s operations, including its ability to continue operations. 

While  the  Company  has  implemented  health,  safety  and  community  initiatives  at  its  operations  to  ensure  the 

health and safety of its employees, contractors and members of the community affected by its operations, there is 

no guarantee that such measures will eliminate the occurrence of accidents or other incidents which may result in 

personal  injuries,  damage  to  property,  and  in  certain  instances  such  occurrences  could  give  rise  to  regulatory 

fines and/or civil liability. 

3.8  Mining risks and insurance risks 

The  mining  industry  is  subject  to  significant  risks  and  hazards,  including  environmental  hazards,  industrial 

accidents, unusual or unexpected geological conditions, unavailability of materials and equipment, rock failures, 

cave-ins,  and  weather  conditions  (including  flooding  and  bushfires),  most  of  which  are  beyond  the  Company’s 

control.  These  risks  and  hazards  could  result  in  significant  costs  or  delays  that  could  have  a  material  adverse 

effect on the Company’s financial performance, liquidity and operations results. 

The  Company  maintains  insurance  to  cover  some  of  these  risks  and  hazards.  The  insurance  is  maintained  in 

amounts  that  are  believed  to  be  reasonable  depending  on  the  circumstances  surrounding  each  identified  risk. 

However, property, liability and other insurance may not provide sufficient coverage for losses related to these or 

other risks or hazards. 

3.9  Production and cost estimates 

The Company, from time to time, prepares internal estimates of future production, cash costs and capital costs of 

production.  The  Company  has  developed  business  plans  which  forecast  metal  recoveries,  ore  throughput  and 

operating costs at the Hera and Peak operation. While these assumptions are considered reasonable, there can 

be no guarantee that forecast rates will be achieved. Failure to achieve production or cost estimates could have 

an adverse impact on the Company’s future cash flow, profitability and financial solvency. 

The Company’s actual production and costs may vary from estimates for a variety of reasons, including: 

actual ore processed varying from estimates of grade, tonnage, dilution and metallurgical and other 

characteristics; 

short-term operating factors relating to the ore reserves, such as the need for sequential development of 

ore bodies and the processing of new or different ore grades; 

revisions to mine plans; 

risks and hazards associated with mining; natural phenomena, such as inclement weather conditions, 

water availability, floods; and unexpected labour shortages or strikes. 

Costs of production may also be affected by a variety of factors, including: ore grade, metallurgy, labour costs, 

consumable costs, commodity costs, general inflationary pressures and currency exchange rates. 

• 

• 

• 

• 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  29

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  30

 
 
 
 
 
 
 
OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

3.  MATERIAL BUSINESS RISKS (CONTINUED) 

3.1  Fluctuations in commodity prices (continued) 

Declining  metal  prices  can  also  impact  operations  by  requiring  a  reassessment  of  the  feasibility  of  a  particular 

exploration or development project. Even if a project is ultimately determined to be economically viable, the need 

to conduct such a reassessment could cause substantial delays and/or may interrupt operations, which may have 

a material adverse effect on our results of operations and financial position. 

3.2  Ore reserves and resources 

Company ore reserves and mineral resources are estimates, and no assurance can be given that the estimated 

reserves and resources are accurate or that the indicated level of metal or other mineral will be produced. Such 

estimates  are,  in  large  part,  based  on  interpretations  of  geological  data  obtained  from  drill  holes  and  other 

sampling  techniques.  Actual  mineralisation  or  geological  conditions  may  be  different  from  those  predicted.  No 

assurance can be given that any part or all of the Company’s mineral resources constitute or will be converted 

into reserves. 

Market price fluctuations of metal prices as well as increased production and capital costs may render some of 

the  Company’s  ore  reserves  unprofitable  to  develop  for  periods  of  time  or  may  render  some  low  margin  ore 

reserves uneconomic. Reserves may have to be re-estimated based on actual production and cost experience. 

Any of these factors may require the Company to modify its ore reserves, which could have either a positive or 

negative impact on the Company’s financial results. 

3.3  Replacement of depleted reserves 

The  Company  must  continually  replace  reserves  depleted  by  production  to  maintain  production  levels  over  the 

long-term.  Reserves  can  be  replaced  by  expanding  known  ore  bodies,  locating  new  deposits,  acquiring  new 

assets or achieving higher levels of conversion from resource to reserve with improvements in production costs 

and or metal prices. Exploration is highly speculative in nature and as such, the Company’s exploration projects 

involve many risks and can often be unsuccessful. Once a prospect with mineralisation is discovered, it may take 

several years from the initial discovery phase until production is possible. 

As a result, there is no assurance that current or future exploration programs will be successful. There is a risk 

that depletion of reserves will not be offset by discoveries or acquisitions, or that divestures of assets will lead to 

a  lower  reserve  base.  The  mineral  base  of  the  Company  may  decline  if  reserves  are  mined  without  adequate 

replacement  and  the  Company  may  not  be  able  to  sustain  production  beyond  the  current  mine  life,  based  on 

current production rates. 

3.4  Management skills and depth 

The  mining  industry  in  general  is  subject  to  a  shortage  of  suitably  experienced  and  qualified  personnel  in  key 

technical roles. Attracting and retaining key persons with specific knowledge and skills are critical to the viability 

and growth of the Company. The Company maintains a suitably structured remuneration strategy to assist with 

the attraction and retention of key employees. However, the risk of loss of key employees is always prevalent and 

typically is out of the control of the Company. This risk is managed through having active and broad recruitment 

channels and the ability to rely upon suitably qualified external contractors when required to backfill vacancies. 

3.5  Water scarcity 

increase this risk. 

Water is a scarce commodity in western NSW. Water is a significant input into processing activities and access to 

sufficient  water  to  support  current  and  future  activities  is  critical.  The  impact  of  drought  conditions  serves  to 

Hera currently relies on ground water accessed by bores for its water needs. The mine is assessing a range of 

options  to  mitigate  the  long  term  risk  of  water  shortages,  including  the  installation  of  a  water  pipeline  from  the 

historic  Nymagee  workings,  improving  water  efficiency  within  existing  operations,  assessing  ground  water 

availability from current mine workings and assessing nearby ground water resources. 

Peak currently utilises a range of water sources which include a water allocation from the Cobar Water Board. To 

mitigate the risk of reduced water allocations, the mine has implemented a water recycling program to improve 

the  efficiency  of  its  water use  and  it  is  currently  progressing  through  a permitting  process  to  allow  utilisation  of 

significant volumes of ground water in old mine workings within the Company’s mining lease. 

3.  MATERIAL BUSINESS RISKS (CONTINUED) 

3.6  Community relations 

The  Company  has  operations  near  established  communities.  The  Company  recognises  that  a  failure  to 
appropriately manage local community stakeholder expectations may lead to dissatisfaction with the Company, 
which has the potential to disrupt production and exploration activities and delay the approval timelines for key 
development activities. The Company has an active community engagement program to understand stakeholders 
needs to help mitigate this risk. 

3.7  Environmental, health and safety regulations, permits 
The  Company’s  mining  and  processing  operations  and  exploration  activities  are  subject  to  extensive  laws  and 
regulations  governing  the  protection  of  the  environment,  including:  waste  disposal,  worker  safety,  mine 
development  and  protection  of  endangered  and  other  special  status  species.  The  Company’s  ability  to  obtain 
permits and approvals and to successfully operate may be adversely impacted by real or perceived detrimental 
events  associated  with  the  Company’s  activities  or those  of  other mining companies  affecting  the environment, 
human  health  and  safety  or  the  surrounding  communities.  Delays  in  obtaining  or  failure  to  obtain  government 
permits and approvals may adversely affect the Company’s operations, including its ability to continue operations. 

While  the  Company  has  implemented  health,  safety  and  community  initiatives  at  its  operations  to  ensure  the 
health and safety of its employees, contractors and members of the community affected by its operations, there is 
no guarantee that such measures will eliminate the occurrence of accidents or other incidents which may result in 
personal  injuries,  damage  to  property,  and  in  certain  instances  such  occurrences  could  give  rise  to  regulatory 
fines and/or civil liability. 

3.8  Mining risks and insurance risks 

The  mining  industry  is  subject  to  significant  risks  and  hazards,  including  environmental  hazards,  industrial 
accidents, unusual or unexpected geological conditions, unavailability of materials and equipment, rock failures, 
cave-ins,  and  weather  conditions  (including  flooding  and  bushfires),  most  of  which  are  beyond  the  Company’s 
control.  These  risks  and  hazards  could  result  in  significant  costs  or  delays  that  could  have  a  material  adverse 
effect on the Company’s financial performance, liquidity and operations results. 

The  Company  maintains  insurance  to  cover  some  of  these  risks  and  hazards.  The  insurance  is  maintained  in 
amounts  that  are  believed  to  be  reasonable  depending  on  the  circumstances  surrounding  each  identified  risk. 
However, property, liability and other insurance may not provide sufficient coverage for losses related to these or 
other risks or hazards. 

3.9  Production and cost estimates 

The Company, from time to time, prepares internal estimates of future production, cash costs and capital costs of 
production.  The  Company  has  developed  business  plans  which  forecast  metal  recoveries,  ore  throughput  and 
operating costs at the Hera and Peak operation. While these assumptions are considered reasonable, there can 
be no guarantee that forecast rates will be achieved. Failure to achieve production or cost estimates could have 
an adverse impact on the Company’s future cash flow, profitability and financial solvency. 

The Company’s actual production and costs may vary from estimates for a variety of reasons, including: 

• 

• 

• 

• 

actual ore processed varying from estimates of grade, tonnage, dilution and metallurgical and other 
characteristics; 

short-term operating factors relating to the ore reserves, such as the need for sequential development of 
ore bodies and the processing of new or different ore grades; 

revisions to mine plans; 

risks and hazards associated with mining; natural phenomena, such as inclement weather conditions, 
water availability, floods; and unexpected labour shortages or strikes. 

Costs of production may also be affected by a variety of factors, including: ore grade, metallurgy, labour costs, 
consumable costs, commodity costs, general inflationary pressures and currency exchange rates. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  29

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  30

 
 
 
 
 
 
 
OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

REMUNERATION REPORT (AUDITED) 

3. MATERIAL BUSINESS RISKS (CONTINUED) 

3.10  Financial solvency 

The Company has eliminated all bank debt at balance date and maintains a significant cash balance. Maintaining 
sufficient liquidity to operate the business is impacted by the operational and financial risk factors identified in this 
section “Material Business Risks”. 

With two operating assets and the production of multiple commodities (gold, lead, zinc and copper), the Company 
has a reduced risk exposure relative to prior years, where it owned one producing asset. Asset diversification can 
help with reducing financial risk, but it cannot be guaranteed that events or circumstances may cause financial 
solvency  risk  to  increase.  The  Board  monitors  solvency  at  all  times  and  aims  to  manage  the  business  with  an 
acceptable level of working capital to mitigate solvency risk. 

4. 

SIGNIFICANT CHANGES IN THE STATE OF  AFFAIRS 

Apart from the items as noted elsewhere in this report, there were no significant changes in the state of affairs of 
the Company during the financial year. 

5. 

SIGNIFICANT EVENTS AFTER THE BALANCE  DATE 

The following significant events occurred after 30 June 2019: 

• 

• 

17 July 2019: ASX release of 2019 Mineral Resource and Ore Reserve Statement 

26 July 2019: ASX release of FY20 Operating Outlook 

6. 

FUTURE DEVELOPMENTS 

Other  likely  developments  in  the  operations  of  the  Company  and  the  expected  results  of  those  operations  in 
future financial years have not been included in this report as the inclusion of such information is likely to result in 
unreasonable prejudice to the Company. Accordingly, this information has not been disclosed in this report. 

7. 

ENVIRONMENTAL REGULATIONS 

The  Company  is  subject  to  significant  environmental  regulation  in  respect  to  its  exploration,  mining  and 
processing activities. The Company aims to ensure the appropriate standard of environmental care is achieved, 
and  in  doing  so  it  is  aware  of,  and  is  in  compliance,  with  all  environmental  legislation.  The  Directors  of  the 
Company are not aware of any material breach of environmental legislation for the year under review. 

This remuneration report outlines the remuneration arrangements for the Group’s key management personnel in 

accordance  with  the  requirements  of  the  Corporations  Act  2001  and  its  Regulations.  For  the  purposes  of  this 

report,  key  management  personnel  (KMP)  of  the  Group  are  defined  as  those  persons  having  authority  and 

responsibility  for  planning,  directing  and  controlling  the  activities  of  the  Company  and  the  Group,  directly  or 

indirectly, including any Director (whether executive or otherwise) of the Company. 

1. 

KEY MANAGEMENT PERSONNEL (KMP) 

Non-Executive Directors  Position 

Term 

Colin Johnstone 

Lawrence Conway 

Susan Corlett 

Paul Espie 

Paul Harris 

Michael Menzies 

Clifford Tuck 

Executive Directors 

Colin Johnstone 

Independent Non-Executive 

Chairman 

From 1 Jul 2018 to 1 May 2019 

Independent Non-Executive Director  Full year 

Independent Non-Executive Director  From 3 Oct 2018 

Non-Executive Director 

Non-Executive Director 

Lead Independent Director 

Non-Executive Director 

Non-Executive Director 

Full year 

From 17 Dec 2018 

From 1 May 2019 

From 1 Jul 2018 to 1 May 2019 

1 Jul 2018 to 30 Sep 2018 

Michael Menzies 

Operating Officer 

From 1 May 2019 

Interim Executive Chairman & CEO 

From 1 May 2019 

Interim Executive Director & Chief 

James Simpson 

Managing Director & CEO 

to 1 May 2019 (CEO) 

Other Key Management 

Personnel 

Timothy Churcher 

Secretary 

Full year 

Chief Financial Officer & Company 

2. 

REMUNERATION POLICY AND STRATEGY 

From 1 Jul 2018 to 22 May 2019 

(Managing Director) and from 1 July 2018 

As  part  of  its  Corporate  Governance  framework,  the  Board  has  established  a  Remuneration  &  Nomination 

Committee to assist the Board in discharging its responsibilities in relation to the Company’s remuneration and 

selection and appointment policies and practices. The Remuneration & Nomination Committee is responsible for 

reviewing the compensation arrangements, and development and succession plans for the KMP,  and reporting 

its findings and recommendations to the Board. The Committee assesses the appropriateness of the nature and 

amount of emoluments of the KMP on a periodic basis by reference to relevant employment market conditions 

and the Company’s best interests with the overall objective of fairly and responsibly compensating Directors and 

other KMPs for the contribution they make to the Company and attracting and retaining talented and experienced 

personnel. 

2.1  Executive Remuneration 

(i) 

(ii) 

experienced employees; 

remuneration; 

The principles underlying the Company's Executive remuneration strategy are: 

Total Remuneration is to be appropriate, market competitive and structured to retain talented and 

Total Remuneration is to comprise an appropriate mix of fixed and performance linked at risk variable 

(iii) 

Variable remuneration is to consist of short-term incentives and long-term incentives which align Board 

and management performance with the interests of shareholders by aligning performance targets under 

the variable incentive plans with the Company’s short and long term objectives; 

(iv) 

Total Fixed Remuneration (base salary + superannuation) (TFR) is targeted at the median (P50) range 

compared to the industry benchmark McDonald Gold & General Mining Industries Remuneration Report. 

Exceptions may exist depending on the supply and demand of particular roles or skills or for individuals 

who are recognised as high achievers within the Company; 

(v) 

Total Remuneration for strong business and personal performance is targeted within the P50-P75 range 

compared to the industry benchmark. For exceptional business and personal performance, Total 

Remuneration may exceed the P75 level. 

(vi) 

Performance linked at risk remuneration is to encourage and reward high performance aligned with 

corporate objectives that create strategic or economic value; and 

(vii) 

The remuneration review process is to deliver fair and equitable results. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  31

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  32

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3. MATERIAL BUSINESS RISKS (CONTINUED) 

3.10  Financial solvency 

The Company has eliminated all bank debt at balance date and maintains a significant cash balance. Maintaining 

sufficient liquidity to operate the business is impacted by the operational and financial risk factors identified in this 

section “Material Business Risks”. 

With two operating assets and the production of multiple commodities (gold, lead, zinc and copper), the Company 

has a reduced risk exposure relative to prior years, where it owned one producing asset. Asset diversification can 

help with reducing financial risk, but it cannot be guaranteed that events or circumstances may cause financial 

solvency  risk  to  increase.  The  Board  monitors  solvency  at  all  times  and  aims  to  manage  the  business  with  an 

acceptable level of working capital to mitigate solvency risk. 

4. 

SIGNIFICANT CHANGES IN THE STATE OF  AFFAIRS 

Apart from the items as noted elsewhere in this report, there were no significant changes in the state of affairs of 

the Company during the financial year. 

5. 

SIGNIFICANT EVENTS AFTER THE BALANCE  DATE 

The following significant events occurred after 30 June 2019: 

• 

• 

17 July 2019: ASX release of 2019 Mineral Resource and Ore Reserve Statement 

26 July 2019: ASX release of FY20 Operating Outlook 

6. 

FUTURE DEVELOPMENTS 

Other  likely  developments  in  the  operations  of  the  Company  and  the  expected  results  of  those  operations  in 

future financial years have not been included in this report as the inclusion of such information is likely to result in 

unreasonable prejudice to the Company. Accordingly, this information has not been disclosed in this report. 

7. 

ENVIRONMENTAL REGULATIONS 

The  Company  is  subject  to  significant  environmental  regulation  in  respect  to  its  exploration,  mining  and 

processing activities. The Company aims to ensure the appropriate standard of environmental care is achieved, 

and  in  doing  so  it  is  aware  of,  and  is  in  compliance,  with  all  environmental  legislation.  The  Directors  of  the 

Company are not aware of any material breach of environmental legislation for the year under review. 

OPERATIONS AND FINANCIAL REVIEW (CONTINUED) 

REMUNERATION REPORT (AUDITED) 

This remuneration report outlines the remuneration arrangements for the Group’s key management personnel in 
accordance  with  the  requirements  of  the  Corporations  Act  2001  and  its  Regulations.  For  the  purposes  of  this 
report,  key  management  personnel  (KMP)  of  the  Group  are  defined  as  those  persons  having  authority  and 
responsibility  for  planning,  directing  and  controlling  the  activities  of  the  Company  and  the  Group,  directly  or 
indirectly, including any Director (whether executive or otherwise) of the Company. 

1. 

KEY MANAGEMENT PERSONNEL (KMP) 

Non-Executive Directors  Position 

Term 

Colin Johnstone 
Lawrence Conway 
Susan Corlett 
Paul Espie 
Paul Harris 

Michael Menzies 
Clifford Tuck 
Executive Directors 
Colin Johnstone 

Michael Menzies 

James Simpson 
Other Key Management 
Personnel 

Timothy Churcher 

From 1 Jul 2018 to 1 May 2019 

Independent Non-Executive 
Chairman 
Independent Non-Executive Director  Full year 
Independent Non-Executive Director  From 3 Oct 2018 
Non-Executive Director 
Non-Executive Director 
Lead Independent Director 
Non-Executive Director 
Non-Executive Director 

Full year 
From 17 Dec 2018 
From 1 May 2019 
From 1 Jul 2018 to 1 May 2019 
1 Jul 2018 to 30 Sep 2018 

Interim Executive Chairman & CEO 
Interim Executive Director & Chief 
Operating Officer 

Managing Director & CEO 

From 1 May 2019 

From 1 May 2019 
From 1 Jul 2018 to 22 May 2019 
(Managing Director) and from 1 July 2018 
to 1 May 2019 (CEO) 

Chief Financial Officer & Company 
Secretary 

Full year 

2. 

REMUNERATION POLICY AND STRATEGY 

As  part  of  its  Corporate  Governance  framework,  the  Board  has  established  a  Remuneration  &  Nomination 
Committee to assist the Board in discharging its responsibilities in relation to the Company’s remuneration and 
selection and appointment policies and practices. The Remuneration & Nomination Committee is responsible for 
reviewing the compensation arrangements, and development and succession plans for the KMP,  and reporting 
its findings and recommendations to the Board. The Committee assesses the appropriateness of the nature and 
amount of emoluments of the KMP on a periodic basis by reference to relevant employment market conditions 
and the Company’s best interests with the overall objective of fairly and responsibly compensating Directors and 
other KMPs for the contribution they make to the Company and attracting and retaining talented and experienced 
personnel. 

2.1  Executive Remuneration 

The principles underlying the Company's Executive remuneration strategy are: 

(i) 

(ii) 

(iii) 

(iv) 

(v) 

(vi) 

(vii) 

Total Remuneration is to be appropriate, market competitive and structured to retain talented and 
experienced employees; 
Total Remuneration is to comprise an appropriate mix of fixed and performance linked at risk variable 
remuneration; 
Variable remuneration is to consist of short-term incentives and long-term incentives which align Board 
and management performance with the interests of shareholders by aligning performance targets under 
the variable incentive plans with the Company’s short and long term objectives; 
Total Fixed Remuneration (base salary + superannuation) (TFR) is targeted at the median (P50) range 
compared to the industry benchmark McDonald Gold & General Mining Industries Remuneration Report. 
Exceptions may exist depending on the supply and demand of particular roles or skills or for individuals 
who are recognised as high achievers within the Company; 
Total Remuneration for strong business and personal performance is targeted within the P50-P75 range 
compared to the industry benchmark. For exceptional business and personal performance, Total 
Remuneration may exceed the P75 level. 
Performance linked at risk remuneration is to encourage and reward high performance aligned with 
corporate objectives that create strategic or economic value; and 
The remuneration review process is to deliver fair and equitable results. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  31

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  32

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT (AUDITED) (CONTINUED) 

REMUNERATION REPORT (AUDITED) (CONTINUED) 

2. 

REMUNERATION POLICY AND STRATEGY  (CONTINUED) 

3. 

FINANCIAL PERFORMANCE  (CONTINUED) 

2.1  Executive Remuneration (continued) 
The  remuneration  strategy  is  designed  to  align  the  Executive’s  Total  Remuneration  with  shareholder  and 
business  objectives  by  providing  a  TFR  component  and  variable  short  and  long  term  at  risk  components.  The 
awarding  of  variable  remuneration  is  based  on  the  Company's  and  individual's  achievement  of  certain 
performance indicators which are judged to most affect the Company's overall performance and long term value 
creation. 

2.2  Non-Executive Directors 
The  Company’s  remuneration  strategy  for  Non-Executive  Directors  is  to  remunerate  at  market  rates  for 
comparable  companies,  for  the  time,  commitment  and  responsibilities  involved  in  being  a  Director.  The 
Remuneration  &  Nomination  Committee  is  responsible  for  reviewing  and  advising  the  Board  on  Director 
remuneration. 

Guidance is obtained as required from independent industry surveys and other sources to ensure that Directors’ 
fees are appropriate and in line with the market. The Chairman’s fees reflect the additional responsibilities of the 
role and are based on comparative positions in the industry. 

The annual fee for Non-Executive Directors, inclusive of statutory superannuation contributions, is $100,000 and 
for the Chairman $160,000. No fees are paid for membership of a Board Committee. The total aggregate amount 
of directors’ fees which may be paid to the Company’s non-executive directors, approved by shareholders at the 
Company’s 2018 Annual General Meeting, is $750,000 per year. 

2.3  Directors Acting in an Interim Executive Capacity 
Due  to  the  interim  executive  roles  performed  by  Messrs  Johnstone  and  Menzies,  the  Board’s  Remuneration 
Committee  was  reconstituted  on  1  May  2019  to  be  comprised  solely  of  three  independent  Non-Executive 
Directors  -  Paul  Espie  (Committee  Chair),  Susan  Corlett  and  Paul  Harris.  The  Board  of  Directors,  with  the 
assistance of the reconstituted Remuneration Committee, finalised the remuneration arrangements for the interim 
executive appointments of Messrs Johnstone and Menzies. 

For the period of their interim executive appointments, Colin Johnstone will receive a monthly salary of $59,167 
(inclusive  of  compulsory  superannuation  payments)  in  addition  to  his  usual  Director  fees  and  Michael  Menzies 
will  receive  a  monthly  salary  of  $40,000  (inclusive  of  compulsory  superannuation  payments)  in  addition  to  his 
usual  Director  fees.  Messrs  Johnstone  and  Menzies  will  not  participate  in  the  Company’s  variable  incentive 
arrangements. 

2.4  Remuneration Consultants 

Remuneration  consultant,  Guerdon  Associates,  was  engaged  during  the  period  to  benchmark  remuneration  for 
the interim roles, during the Company’s leadership transition, of Executive Chairman/Chief Executive Officer and 
Executive  Director/Chief  Operating  Officer  and  special  exertion  fees  in  respect  of  work  performed  by  non-
executive directors. No remuneration recommendations, as defined in section 9B of the Corporations Act 2001, 
were made by Guerdon Associates. 

3. 

FINANCIAL PERFORMANCE 

The  following table  displays  the  key  financial performance metrics  for  the  Group.  The  prior  year  (financial  year 
2018) reflects the successful acquisition of Peak Mines and the short-term impact of high gold grades delivered 
from the Chronos orebody at Peak. The performance in the current year reflects a return to more normalised gold 
grades  at  Peak  and  transitional  issues  related  to  a change  in  mining  strategy  adopted  by  the  Company  (move 
from  owner-mining  to  contract-mining).  The  Company’s  Hera  operation  delivered  a  consistent  result  relative  to 
the prior year, with increased throughput offsetting reduced gold grades during the year. Refer to the Operations 
and Finance Review for further details. 

Performance Indicators 
Sales revenue 
Profit/(loss) for the year 
EBITDA 
Net Debt (nominal value) (i) 
Profit/(Loss) Per Share (cents) 
Share Price (cents) 

2019 
$000 
295,002 
36,017 
103,061 
104,302 
4.16 
49.5 

2018 
$000 
248,599 
99,105 
136,717 
66,925 
15.50 
57.0 

2017 
$000 
109,298 
19,333 
48,507 
(74,750) 
4.80 
18.5 

2016 
$000 
91,945 
10,943 
41,139 
(91,759) 
2.80 
13.5 

2015 
$000 
13,220 
(118,158) 
(109,123) 
(109,804) 
(33.00) 
21.5 

(i) Net Debt is available cash less Nominal (undiscounted) debt 

EBITDA is a non-IFRS measure. Reconciliation to Profit/(loss) for the year is: 

Performance Indicators 

EBITDA 

Net interest cost 

Tax benefit/(expense) 

Depreciation & Amortisation 

Profit/(Loss) for the year 

2019 

$000 

103,061 

(71) 

(15,001) 

(51,972) 

36,017 

2018 

$000 

136,717 

(7,805) 

6,799 

(36,607) 

99,105 

2017 

$000 

48,507 

(7,712) 

- 

(21,462) 

19,333 

2016 

$000 

41,139 

(6,526) 

- 

(23,669) 

10,944 

2015 

$000 

(109,123) 

(2,376) 

- 

(6,659) 

(118,158) 

4. 

VARIABLE INCENTIVE PLANS 

The  primary  objective  of  the  Company’s  variable  incentive  plans  is  to  deliver  superior  shareholder  returns  by 

aligning  the  Company’s  short  and  long  term  objectives  with  the  performance  targets  for  the  Company’s 

Executives under the variable incentive plans. 

The  Board  retains  absolute  discretion  in  relation  to  payments  under  the  Company's  Short  Term  Incentive  and 

Long Term Incentive Plans, regardless of the achievement of targets. The Board considers the achievement of 

targets  together  with  overall  business  performance  and  individual  performance  when  deciding  on  the  actual 

payment or allocation of variable remuneration. 

4.1  Short Term Incentive Plan ("STIP") 

The Board has adopted an STIP whereby if the Company exceeds its targets, taking into consideration a range of 

financial  and  non-financial  metrics,  the  Board  may  consider  the  payment  of  a  STI  cash  bonus  to  selected 

employees.  The  maximum  STI  payment  for  the  Managing  Director  &  CEO  is  50%  of  TFR  and  for  the  Chief 

Financial Officer and Company Secretary is 30% of TFR. 

Entitlement  to  an  STI  payment  is  assessed  at  the  end  of  the  financial  year  and,  if  applicable,  paid  after  the 

Remuneration  &  Nomination Committee  has  reviewed  the businesses  performance  and individual  performance 

and made recommendations to the Board. 

4.1(a) FY19 STIP Outcomes 

For FY19, the corporate measures for the STIP related to: 

(i)  Safety - Group TRIFR (Total Recordable Injury Frequency Rate) to be less than FY18 TRIFR 

(ii)  Human Resources - Approved Site Management Teams implemented and assessed to Board’s 

satisfaction 

(iii)  Unit Costs - Meet budgeted Hera unit cost ($/t) and Peak unit costs to show significant reduction 

(iv)  Mine Inventories - Develop optimal underground mining inventories to ensure production flexibility 

(v)  Peak Pb/Zn upgrade - Deliver the Peak Pb/Zn upgrade on time and budget 

(vi)  Resource Inventory - Focus on replacing high value inventory to the Peak mine plan 

The total FY19 STIP award was weighted against the above measures, with 40% of the weighting attached to the 

Human Resources Measure, 20% to Unit Costs and the rest each weighted at 10%. 

The Board noted that performance has not exceeded all targeted levels and was the result of a difficult transition 

to  contract  mining  at  Peak  offset  somewhat  by  steady  performance  of  the  Hera  operation.  Countering  this 

performance was the enhanced exploration upside achieved during the year at Hera (Federation discovery) and 

Peak (Kairos discovery). 

The Board determined that for FY19, taking into consideration the performance in financial and operating metrics, 

below target STIP payments were justified to senior executives. 

The  Board  determined  that  the  former  Managing  Director  and  CEO  would  receive,  as  part  of  his  severance 

package,  a  STIP  payment  equal  to  50%  of  FY19  TFR  (100%  of  the  maximum  opportunity)  and  the  Chief 

Financial Officer & Company Secretary would receive a STIP payment equal to 15% of FY19 TFR (50% of the 

maximum opportunity). The STIP amounts payable for FY19 are disclosed in this remuneration report, however 

these amounts will be paid in FY20. 

The total remuneration mix for FY19 for the Managing Director & CEO was 34% fixed, 66% variable; and for the 

Chief Financial Officer & Company Secretary the total remuneration mix was 70% fixed and 30% variable. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  33

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  34

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT (AUDITED) (CONTINUED) 

REMUNERATION REPORT (AUDITED) (CONTINUED) 

2. 

REMUNERATION POLICY AND STRATEGY  (CONTINUED) 

3. 

FINANCIAL PERFORMANCE  (CONTINUED) 

2.1  Executive Remuneration (continued) 

The  remuneration  strategy  is  designed  to  align  the  Executive’s  Total  Remuneration  with  shareholder  and 

business  objectives  by  providing  a  TFR  component  and  variable  short  and  long  term  at  risk  components.  The 

awarding  of  variable  remuneration  is  based  on  the  Company's  and  individual's  achievement  of  certain 

performance indicators which are judged to most affect the Company's overall performance and long term value 

creation. 

2.2  Non-Executive Directors 

The  Company’s  remuneration  strategy  for  Non-Executive  Directors  is  to  remunerate  at  market  rates  for 

comparable  companies,  for  the  time,  commitment  and  responsibilities  involved  in  being  a  Director.  The 

Remuneration  &  Nomination  Committee  is  responsible  for  reviewing  and  advising  the  Board  on  Director 

remuneration. 

Guidance is obtained as required from independent industry surveys and other sources to ensure that Directors’ 

fees are appropriate and in line with the market. The Chairman’s fees reflect the additional responsibilities of the 

role and are based on comparative positions in the industry. 

The annual fee for Non-Executive Directors, inclusive of statutory superannuation contributions, is $100,000 and 

for the Chairman $160,000. No fees are paid for membership of a Board Committee. The total aggregate amount 

of directors’ fees which may be paid to the Company’s non-executive directors, approved by shareholders at the 

Company’s 2018 Annual General Meeting, is $750,000 per year. 

2.3  Directors Acting in an Interim Executive Capacity 

Due  to  the  interim  executive  roles  performed  by  Messrs  Johnstone  and  Menzies,  the  Board’s  Remuneration 

Committee  was  reconstituted  on  1  May  2019  to  be  comprised  solely  of  three  independent  Non-Executive 

Directors  -  Paul  Espie  (Committee  Chair),  Susan  Corlett  and  Paul  Harris.  The  Board  of  Directors,  with  the 

assistance of the reconstituted Remuneration Committee, finalised the remuneration arrangements for the interim 

executive appointments of Messrs Johnstone and Menzies. 

For the period of their interim executive appointments, Colin Johnstone will receive a monthly salary of $59,167 

(inclusive  of  compulsory  superannuation  payments)  in  addition  to  his  usual  Director  fees  and  Michael  Menzies 

will  receive  a  monthly  salary  of  $40,000  (inclusive  of  compulsory  superannuation  payments)  in  addition  to  his 

usual  Director  fees.  Messrs  Johnstone  and  Menzies  will  not  participate  in  the  Company’s  variable  incentive 

arrangements. 

2.4  Remuneration Consultants 

were made by Guerdon Associates. 

3. 

FINANCIAL PERFORMANCE 

Remuneration  consultant,  Guerdon  Associates,  was  engaged  during  the  period  to  benchmark  remuneration  for 

the interim roles, during the Company’s leadership transition, of Executive Chairman/Chief Executive Officer and 

Executive  Director/Chief  Operating  Officer  and  special  exertion  fees  in  respect  of  work  performed  by  non-

executive directors. No remuneration recommendations, as defined in section 9B of the Corporations Act 2001, 

The  following table  displays  the  key  financial performance metrics  for  the  Group.  The  prior  year  (financial  year 

2018) reflects the successful acquisition of Peak Mines and the short-term impact of high gold grades delivered 

from the Chronos orebody at Peak. The performance in the current year reflects a return to more normalised gold 

grades  at  Peak  and  transitional  issues  related  to  a change  in  mining  strategy  adopted  by  the  Company  (move 

from  owner-mining  to  contract-mining).  The  Company’s  Hera  operation  delivered  a  consistent  result  relative  to 

the prior year, with increased throughput offsetting reduced gold grades during the year. Refer to the Operations 

and Finance Review for further details. 

Performance Indicators 

Sales revenue 

Profit/(loss) for the year 

EBITDA 

Net Debt (nominal value) (i) 

Profit/(Loss) Per Share (cents) 

Share Price (cents) 

2019 

$000 

295,002 

36,017 

103,061 

104,302 

4.16 

49.5 

2018 

$000 

248,599 

99,105 

136,717 

66,925 

15.50 

57.0 

2017 

$000 

109,298 

19,333 

48,507 

(74,750) 

4.80 

18.5 

2016 

$000 

91,945 

10,943 

41,139 

(91,759) 

2.80 

13.5 

2015 

$000 

13,220 

(118,158) 

(109,123) 

(109,804) 

(33.00) 

21.5 

(i) Net Debt is available cash less Nominal (undiscounted) debt 

EBITDA is a non-IFRS measure. Reconciliation to Profit/(loss) for the year is: 

Performance Indicators 
EBITDA 
Net interest cost 
Tax benefit/(expense) 
Depreciation & Amortisation 
Profit/(Loss) for the year 

2019 
$000 
103,061 
(71) 
(15,001) 
(51,972) 
36,017 

2018 
$000 
136,717 
(7,805) 
6,799 
(36,607) 
99,105 

2017 
$000 
48,507 
(7,712) 
- 
(21,462) 
19,333 

2016 
$000 
41,139 
(6,526) 
- 
(23,669) 
10,944 

2015 
$000 
(109,123) 
(2,376) 
- 
(6,659) 
(118,158) 

4. 

VARIABLE INCENTIVE PLANS 

The  primary  objective  of  the  Company’s  variable  incentive  plans  is  to  deliver  superior  shareholder  returns  by 
aligning  the  Company’s  short  and  long  term  objectives  with  the  performance  targets  for  the  Company’s 
Executives under the variable incentive plans. 

The  Board  retains  absolute  discretion  in  relation  to  payments  under  the  Company's  Short  Term  Incentive  and 
Long Term Incentive Plans, regardless of the achievement of targets. The Board considers the achievement of 
targets  together  with  overall  business  performance  and  individual  performance  when  deciding  on  the  actual 
payment or allocation of variable remuneration. 

4.1  Short Term Incentive Plan ("STIP") 

The Board has adopted an STIP whereby if the Company exceeds its targets, taking into consideration a range of 
financial  and  non-financial  metrics,  the  Board  may  consider  the  payment  of  a  STI  cash  bonus  to  selected 
employees.  The  maximum  STI  payment  for  the  Managing  Director  &  CEO  is  50%  of  TFR  and  for  the  Chief 
Financial Officer and Company Secretary is 30% of TFR. 

Entitlement  to  an  STI  payment  is  assessed  at  the  end  of  the  financial  year  and,  if  applicable,  paid  after  the 
Remuneration  &  Nomination Committee  has  reviewed  the businesses  performance  and individual  performance 
and made recommendations to the Board. 

4.1(a) FY19 STIP Outcomes 

For FY19, the corporate measures for the STIP related to: 

(i)  Safety - Group TRIFR (Total Recordable Injury Frequency Rate) to be less than FY18 TRIFR 
(ii)  Human Resources - Approved Site Management Teams implemented and assessed to Board’s 

satisfaction 

(iii)  Unit Costs - Meet budgeted Hera unit cost ($/t) and Peak unit costs to show significant reduction 
(iv)  Mine Inventories - Develop optimal underground mining inventories to ensure production flexibility 
(v)  Peak Pb/Zn upgrade - Deliver the Peak Pb/Zn upgrade on time and budget 
(vi)  Resource Inventory - Focus on replacing high value inventory to the Peak mine plan 

The total FY19 STIP award was weighted against the above measures, with 40% of the weighting attached to the 
Human Resources Measure, 20% to Unit Costs and the rest each weighted at 10%. 

The Board noted that performance has not exceeded all targeted levels and was the result of a difficult transition 
to  contract  mining  at  Peak  offset  somewhat  by  steady  performance  of  the  Hera  operation.  Countering  this 
performance was the enhanced exploration upside achieved during the year at Hera (Federation discovery) and 
Peak (Kairos discovery). 

The Board determined that for FY19, taking into consideration the performance in financial and operating metrics, 
below target STIP payments were justified to senior executives. 

The  Board  determined  that  the  former  Managing  Director  and  CEO  would  receive,  as  part  of  his  severance 
package,  a  STIP  payment  equal  to  50%  of  FY19  TFR  (100%  of  the  maximum  opportunity)  and  the  Chief 
Financial Officer & Company Secretary would receive a STIP payment equal to 15% of FY19 TFR (50% of the 
maximum opportunity). The STIP amounts payable for FY19 are disclosed in this remuneration report, however 
these amounts will be paid in FY20. 

The total remuneration mix for FY19 for the Managing Director & CEO was 34% fixed, 66% variable; and for the 
Chief Financial Officer & Company Secretary the total remuneration mix was 70% fixed and 30% variable. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  33

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  34

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT (AUDITED) (CONTINUED) 

REMUNERATION REPORT (AUDITED) (CONTINUED) 

4. 

VARIABLE INCENTIVE PLANS (CONTINUED) 

4.2  Long Term Incentive Plan ("LTIP") 

The LTIP is provided by way of allocation of Performance Rights which carry an entitlement to a share subject to 
satisfaction  of  performance  criteria  and/or  vesting  conditions  (if  any).  To  the  extent  performance  criteria  and/or 
vesting  conditions  are  satisfied,  the  Performance  Rights  are  taken  to  have  vested  and  been  exercised  at  nil 
exercise price and the number of ordinary shares equal to the number of vested Performance Rights is issued. 

Performance Rights under the LTIP are generally granted each year. The LTIP hurdles are agreed prior to the 
commencement  of  a  new  financial  year,  or  as  close  to  the  end  of  the  year  as  practical.  The  LTIP  hurdles  are 
determined at the discretion of the Board. The test date for each issue of Performance Rights is typically three 
years from Grant Date, but may be two years in exceptional circumstances. 

In  accordance  with  the  Company's  Remuneration  Strategy  and  standard  industry  practice,  the  number  of 
Performance Rights granted to the KMP is based on a multiple of the KMP’s Total Fixed Remuneration divided  
by  the  30-day  VWAP  of  shares  in  the  Company  at  a  date  determined  by  the  Remuneration  and  Nomination 
Committee. 

The  quantum  of  Performance  Rights  granted  in  FY18  was  based  on  100%  of  the  Managing  Director  &  CEO’s 
TFR and 65% of the CFO & Company Secretary’s TFR. 

Subject to the Rules of the Performance Rights Plan, Performance Rights will only vest on a relevant date if the 
participant remains an employee of the Company, up to and including the relevant date. 

4.2(a)  FY19 LTIP Performance Rights Issues 

On  4  December  2018,  4,697,171  Performance  Rights  were  granted  to  KMP,  with  Class  2018A  (2,041,875 
Performance  Rights)  being  subject  to  testing  in  two  years  and  Class  2018B  (2,655,296  Performance  Rights) 
subject to testing in three years. 

The  first  grant  in  2018  (Class  2018A)  was  made  in  recognition  of  the  outstanding  completion  of  the  Peak 
acquisition. The grant was primarily designed to incentivise management to drive Company aligned goals at the 
Peak Mine given that there is an urgency to drive further improvement at this operation over the next two years, 
and to drive long term value to the shareholders. The LTIP targets reflect this objective. These grants should be 
viewed as a maximum with an expectation that testing would normally result in a lower amount. 

The vesting conditions for the 2018A and 2018B Performance Rights will be based on the factors outlined below: 

• 

• 

2018 Issue Class 18A the Performance Measures are Absolute TSR (Target 35%), Relative TSR (Target 
100%ile), Peak Unit Costs (Target <$150/t), Peak Process Rates (Target 800ktpa) and Ore Reserves 
(Target Peak Reserves of 2.5Mt at cash operating margin of at least $100/t). 
2018 Issue Class 18B the Performance Measures are Absolute TSR (Target 35%), Relative TSR (Target 
100%ile), Ore Reserves (5 year reserve life at each operation) and Growth (Target is at board discretion 
but will include the Board’s consideration of exploration success, replacement of high value reserves or a 
value adding transaction). 

4.2(b)  Performance Rights on Issue at year end 

The  total  number  of  Performance  Rights  on  issue  at  the  date  of  this  report  in  each  Class,  and  the  number  of 
Performance Rights in each Class held by the former Managing Director & CEO, are listed in the table below. 

Performance Rights Tranches 
2016 Issue - Class 16B 
2016 Issue - Class 16C 
2018 Issue - Class 18A 
2018 Issue - Class 18B 
Maximum number of Rights 

Total Number 
Issued 
2,250,000 
2,250,000 
2,041,875 
2,655,296 
9,197,171 

Total Number held 
by former MD & 
CEO 
1,500,000 
1,500,000 
1,270,982 
1,270,982 
5,541,964 

Relevant Date or 
Testing Date (1) 
30-Jun-19 
30-Jun-20 
30-Jun-20 
30-Jun-21 

The  effective  testing  date  for  the  Performance  Rights  is  the  Relevant  date,  with  the  testing  to  occur  within  90  
days after that date. Performance Rights will lapse after testing if they do not vest. There is no re-testing. 
(1) the Class 16C, Class 18A and Class 18B Performance Rights held by the former Managing Director & CEO 
will 100% vest on 31 August 2019 (see 4.2(c) below). 

4. 

VARIABLE INCENTIVE PLANS (CONTINUED) 

4.2  Long Term Incentive Plan ("LTIP") (continued) 

4.2(c)  FY19 LTIP Outcomes 

The 2,250,000 Class 16B Performance Rights were tested against  the applicable vesting conditions at 30 June 

2019. The vesting conditions were determined by the Board in its discretion based on the factors outlined below, 

with the testing horizon being a three-year period from 30 June 2016 to 30 June 2019: 

Relative TSR: Absolute TSR of 267% for the period. Relative TSR 100%ile. 

Process Throughput: A 52% increase in Hera process throughput delivered. 

Mine Inventory: A 25% decrease in Hera mine inventory recorded. 

Balance Sheet Restructure: Balance sheet restructure completed (Net Cash up 213%) 

Based  on  a  review  of  the  measures  and  outcomes  achieved,  the  Board  decided  to  vest  100%  of  the  former 

Managing  Director  and  CEO’s  performance  rights  (1,500,000  performance  rights),  and  75%  of  the  remaining 

Class16B  performance  rights  held  by  the  Chief  Financial  Officer  &  Company  Secretary  (562,500  performance 

rights).  In  total 2,062,500  Performance  Rights  associated  with  the  Class  16B  Performance  Rights  will  vest  into 

ordinary shares after balance date. 

In relation to the former Managing Director & CEO, the Board exercised its discretion under the Performance 

Rights Plan Rules to deliver the following outcomes to the former Managing Director & CEO: 

A total of 5,541,964 Performance rights will vest 100% into ordinary shares, consisting of: 

a. 1,500,000 Class 16B Performance Rights (as discussed above) 

b. 1,500,000 Class 16C Performance Rights 

c. 1,270,982 Class 18A Performance Rights 

d. 1,270,982 Class 18B Performance Rights 

The shares issued on conversion of the Class 18A and Class 18B Performance Rights (2,541,964 

Performance Rights in total) will be subject to an agreed 12 month holding lock from 31 August 2019 to 

prevent trading of these securities by the former Managing Director & CEO. 

The Board has deemed that the primary service condition associated with the issue of the Performance 

Rights was met at balance date, accordingly, the cost of these performance rights have been fully 

expensed in the current period and included in the former executive's remuneration (Section 8.0). 

• 

• 

• 

• 

• 

• 

• 

5. 

DETAILS OF PERFORMANCE RIGHTS WHICH REMAIN UNTESTED 

Excluding the Performance Rights held by the former Managing Director & CEO (which will be dealt with subject 

to the terms described in 4.2.(c) above), the total number of Performance Rights that will undergo normal vesting 

rules and testing dates, are tabulated below: 

Performance Rights Tranches 

2016 Issue - Class 16C 

2018 Issue - Class 18A 

2018 Issue - Class 18B 

Maximum number of Rights 

Total Number Issued 

(excluding former MD 

Relevant Date or 

& CEO) 

750,000 

770,893 

1,384,313 

2,905,206 

Testing Date 

30-Jun-20 

30-Jun-20 

30-Jun-21 

The terms and conditions of each grant of performance rights affecting remuneration in a future reporting period 

are as follows: 

5.1  Class 16C Performance Rights 

On 28 November 2016, the Company granted 2,250,000 Performance Rights to Key Management Personnel. Of 

the total, 750,000 Performance Rights are held by the Chief Financial Officer & Company Secretary, these are 

structured to vest based on a variety of performance measures as outlined below and remain untested at balance 

date. Post balance date, as discussed in 4.2.(c), the Board determined that 75% of the Performance Rights held 

by the Chief Financial Officer & Company Secretary would vest into shares. This movement will be displayed in 

the next reporting period, however the expense has been reported at balance date. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  35

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT (AUDITED) (CONTINUED) 

REMUNERATION REPORT (AUDITED) (CONTINUED) 

4. 

VARIABLE INCENTIVE PLANS (CONTINUED) 

4.2  Long Term Incentive Plan ("LTIP") 

The LTIP is provided by way of allocation of Performance Rights which carry an entitlement to a share subject to 

satisfaction  of  performance  criteria  and/or  vesting  conditions  (if  any).  To  the  extent  performance  criteria  and/or 

vesting  conditions  are  satisfied,  the  Performance  Rights  are  taken  to  have  vested  and  been  exercised  at  nil 

exercise price and the number of ordinary shares equal to the number of vested Performance Rights is issued. 

Performance Rights under the LTIP are generally granted each year. The LTIP hurdles are agreed prior to the 

commencement  of  a  new  financial  year,  or  as  close  to  the  end  of  the  year  as  practical.  The  LTIP  hurdles  are 

determined at the discretion of the Board. The test date for each issue of Performance Rights is typically three 

years from Grant Date, but may be two years in exceptional circumstances. 

In  accordance  with  the  Company's  Remuneration  Strategy  and  standard  industry  practice,  the  number  of 

Performance Rights granted to the KMP is based on a multiple of the KMP’s Total Fixed Remuneration divided  

by  the  30-day  VWAP  of  shares  in  the  Company  at  a  date  determined  by  the  Remuneration  and  Nomination 

Committee. 

The  quantum  of  Performance  Rights  granted  in  FY18  was  based  on  100%  of  the  Managing  Director  &  CEO’s 

TFR and 65% of the CFO & Company Secretary’s TFR. 

Subject to the Rules of the Performance Rights Plan, Performance Rights will only vest on a relevant date if the 

participant remains an employee of the Company, up to and including the relevant date. 

4.2(a)  FY19 LTIP Performance Rights Issues 

On  4  December  2018,  4,697,171  Performance  Rights  were  granted  to  KMP,  with  Class  2018A  (2,041,875 

Performance  Rights)  being  subject  to  testing  in  two  years  and  Class  2018B  (2,655,296  Performance  Rights) 

subject to testing in three years. 

The  first  grant  in  2018  (Class  2018A)  was  made  in  recognition  of  the  outstanding  completion  of  the  Peak 

acquisition. The grant was primarily designed to incentivise management to drive Company aligned goals at the 

Peak Mine given that there is an urgency to drive further improvement at this operation over the next two years, 

and to drive long term value to the shareholders. The LTIP targets reflect this objective. These grants should be 

viewed as a maximum with an expectation that testing would normally result in a lower amount. 

The vesting conditions for the 2018A and 2018B Performance Rights will be based on the factors outlined below: 

• 

• 

2018 Issue Class 18A the Performance Measures are Absolute TSR (Target 35%), Relative TSR (Target 

100%ile), Peak Unit Costs (Target <$150/t), Peak Process Rates (Target 800ktpa) and Ore Reserves 

(Target Peak Reserves of 2.5Mt at cash operating margin of at least $100/t). 

2018 Issue Class 18B the Performance Measures are Absolute TSR (Target 35%), Relative TSR (Target 

100%ile), Ore Reserves (5 year reserve life at each operation) and Growth (Target is at board discretion 

but will include the Board’s consideration of exploration success, replacement of high value reserves or a 

value adding transaction). 

4.2(b)  Performance Rights on Issue at year end 

The  total  number  of  Performance  Rights  on  issue  at  the  date  of  this  report  in  each  Class,  and  the  number  of 

Performance Rights in each Class held by the former Managing Director & CEO, are listed in the table below. 

Total Number 

by former MD & 

Total Number held 

Performance Rights Tranches 

2016 Issue - Class 16B 

2016 Issue - Class 16C 

2018 Issue - Class 18A 

2018 Issue - Class 18B 

Maximum number of Rights 

Issued 

2,250,000 

2,250,000 

2,041,875 

2,655,296 

9,197,171 

CEO 

1,500,000 

1,500,000 

1,270,982 

1,270,982 

5,541,964 

Relevant Date or 

Testing Date (1) 

30-Jun-19 

30-Jun-20 

30-Jun-20 

30-Jun-21 

The  effective  testing  date  for  the  Performance  Rights  is  the  Relevant  date,  with  the  testing  to  occur  within  90  

days after that date. Performance Rights will lapse after testing if they do not vest. There is no re-testing. 

(1) the Class 16C, Class 18A and Class 18B Performance Rights held by the former Managing Director & CEO 

will 100% vest on 31 August 2019 (see 4.2(c) below). 

4. 

VARIABLE INCENTIVE PLANS (CONTINUED) 

4.2  Long Term Incentive Plan ("LTIP") (continued) 

4.2(c)  FY19 LTIP Outcomes 

The 2,250,000 Class 16B Performance Rights were tested against  the applicable vesting conditions at 30 June 
2019. The vesting conditions were determined by the Board in its discretion based on the factors outlined below, 
with the testing horizon being a three-year period from 30 June 2016 to 30 June 2019: 

• 
• 
• 
• 

Relative TSR: Absolute TSR of 267% for the period. Relative TSR 100%ile. 
Process Throughput: A 52% increase in Hera process throughput delivered. 
Mine Inventory: A 25% decrease in Hera mine inventory recorded. 
Balance Sheet Restructure: Balance sheet restructure completed (Net Cash up 213%) 

Based  on  a  review  of  the  measures  and  outcomes  achieved,  the  Board  decided  to  vest  100%  of  the  former 
Managing  Director  and  CEO’s  performance  rights  (1,500,000  performance  rights),  and  75%  of  the  remaining 
Class16B  performance  rights  held  by  the  Chief  Financial  Officer  &  Company  Secretary  (562,500  performance 
rights).  In  total 2,062,500  Performance  Rights  associated  with  the  Class  16B  Performance  Rights  will  vest  into 
ordinary shares after balance date. 

In relation to the former Managing Director & CEO, the Board exercised its discretion under the Performance 
Rights Plan Rules to deliver the following outcomes to the former Managing Director & CEO: 

• 

• 

• 

A total of 5,541,964 Performance rights will vest 100% into ordinary shares, consisting of: 
a. 1,500,000 Class 16B Performance Rights (as discussed above) 
b. 1,500,000 Class 16C Performance Rights 
c. 1,270,982 Class 18A Performance Rights 
d. 1,270,982 Class 18B Performance Rights 

The shares issued on conversion of the Class 18A and Class 18B Performance Rights (2,541,964 
Performance Rights in total) will be subject to an agreed 12 month holding lock from 31 August 2019 to 
prevent trading of these securities by the former Managing Director & CEO. 

The Board has deemed that the primary service condition associated with the issue of the Performance 
Rights was met at balance date, accordingly, the cost of these performance rights have been fully 
expensed in the current period and included in the former executive's remuneration (Section 8.0). 

5. 

DETAILS OF PERFORMANCE RIGHTS WHICH REMAIN UNTESTED 

Excluding the Performance Rights held by the former Managing Director & CEO (which will be dealt with subject 
to the terms described in 4.2.(c) above), the total number of Performance Rights that will undergo normal vesting 
rules and testing dates, are tabulated below: 

Performance Rights Tranches 
2016 Issue - Class 16C 
2018 Issue - Class 18A 
2018 Issue - Class 18B 
Maximum number of Rights 

Total Number Issued 
(excluding former MD 
& CEO) 
750,000 
770,893 
1,384,313 
2,905,206 

Relevant Date or 
Testing Date 
30-Jun-20 
30-Jun-20 
30-Jun-21 

The terms and conditions of each grant of performance rights affecting remuneration in a future reporting period 
are as follows: 

5.1  Class 16C Performance Rights 

On 28 November 2016, the Company granted 2,250,000 Performance Rights to Key Management Personnel. Of 
the total, 750,000 Performance Rights are held by the Chief Financial Officer & Company Secretary, these are 
structured to vest based on a variety of performance measures as outlined below and remain untested at balance 
date. Post balance date, as discussed in 4.2.(c), the Board determined that 75% of the Performance Rights held 
by the Chief Financial Officer & Company Secretary would vest into shares. This movement will be displayed in 
the next reporting period, however the expense has been reported at balance date. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  35

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT (AUDITED) (CONTINUED) 

REMUNERATION REPORT (AUDITED) (CONTINUED) 

5. 

DETAILS OF PERFORMANCE RIGHTS WHICH REMAIN UNTESTED (CONTINUED) 

7. 

DETAILS OF SHARE BASED COMPENSATION TO KMP (CONTINUED) 

5.1  Class 16C Performance Rights (continued) 
• 

2016 Issue Class 16C Performance Measures are: Relative TSR (Total Shareholder Return); Hera 
Process Throughput; Hera Mine Inventory; and Balance Sheet Restructure. 

5.2  Class 18A Performance Rights 

On 4 December 2018, the Company granted 2,041,875 Performance Rights to the Key Management Personnel. 
Of  the  total,  770,893  Performance  Rights  are  held  by  KMP  other  than  the  former  Managing  Director  &  CEO, 
these  are  structured  to  vest  based  on  a  variety  of  performance  measures  (refer  section  4.2(a))  and  remain 
untested at balance date. 

5.3  Class 18B Performance Rights 

On 4 December 2018, the Company granted 2,655,296 Performance Rights to the Key Management Personnel. 
Of  the  total,  1,384,313  Performance  Rights  are  held  by  senior  management  and  KMP  other  than  the  former 
Managing  Director  &  CEO,  these  are  structured  to  vest  based  on  a  variety  of  performance  measures  (refer 
section 4.2(a)) and remain untested at balance date. 

6. 

SUMMARY OF MOVEMENTS IN PERFORMANCE RIGHTS DURING THE YEAR 

A summary of movements of Performance Rights within the various plans are tabulated below. 

FY 19 

Grant 
date 

Test 
Date 

2016 Class16A  28-11-16  30-06-18 
2016 Class16B  28-11-16  30-06-19 
2016 Class16C  28-11-16  30-06-20 
2018 Class18A  04-12-18  30-06-20 
2018 Class18B  04-12-18  30-06-21 

Total 

Balance 
Exercise at start of 
the year 
2,000,000 
2,250,000 
2,250,000 
- 
- 

Granted 
during the 
year 
- 
- 
- 
2,041,875 
2,655,296 
6,500,000  4,697,171 

Price 
nil 
nil 
nil 
nil 
nil 

Vested 
during the 
year 
(2,000,000) 
- 
- 
- 
- 
(2,000,000) 

Expired 
during 
the year 
- 
- 
- 
- 
- 
- 

Balance 
at year 
end 
- 
2,250,000 
2,250,000 
2,041,875 
2,655,296 
9,197,171 

Note: Post balance date, the Board determined that 6,104,464 of the Performance Rights on Issue at year end, 
will vest into ordinary shares. The movement will be displayed in the next reporting period. 

7. 

DETAILS OF SHARE BASED COMPENSATION TO  KMP 

Details on Rights over ordinary shares in the Company that were granted as compensation to members of the 
Key Management Personnel and details on Rights that vested during the reporting period are as follows: 

Test 
Date 

Number 
Granted 

Grant 
Date 

Fair 
Value at 
Grant 
Date 
$/Right 

Fair 
Value at 
Vesting 
Date 
$/Right 

Number of 
Rights 
Vested 

Balance at 
year end 

30-06-18 
30-06-19 
30-06-20 
30-06-20 
30-06-21 

30-06-18 
30-06-19 
30-06-20 
30-06-20 
30-06-21 

1,500,000 
1,500,000 
1,500,000 
1,270,982 
1,270,982 
7,041,964 

500,000 
750,000 
750,000 
508,393 
508,393 
3,016,786 

28-11-16 
28-11-16 
28-11-16 
04-12-18 
04-12-18 

20-12-16 
20-12-16 
20-12-16 
04-12-18 
04-12-18 

0.145 
0.145 
0.145 
0.210 
0.300 
0.180 

0.150 
0.150 
0.150 
0.210 
0.300 
0.190 

0.715 
- 
- 
- 
- 

0.715 
- 
- 
- 
- 

(1,500,000) 
- 
- 
- 
- 
(1,500,000) 

(500,000) 
- 
- 
- 
- 
(500,000) 

- 
1,500,000 
1,500,000 
1,270,982 
1,270,982 
5,541,964 

- 
750,000 
750,000 
508,393 
508,393 
2,516,786 

Class (i) 

FY19 
Executives 
Simpson, James 
Class 16A 
Class 16B 
Class 16C 
Class 18A 
Class 18B 

(ii) 
(ii) 
(ii) 
(ii) 

Churcher, Timothy 
Class 16A 
Class 16B 
Class 16C 
Class 18A 
Class 18B 

(i) 
(ii) 

All classes of Performance Rights that Vest into Ordinary Shares, vest at a nil exercise price. 
As part of the former Managing Director & CEO’s termination conditions, the performance rights issued 
will vest on 31 August 2019. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  37

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  38

The Performance Rights have been measured at Fair Value (refer to Note 19. (d) of the Financial Report). The 

fair  value  adjustment  expensed  during  the  period  for  Mr  Simpson  was  $2,183,322  and  for  Mr  Churcher  was 

$129,645. 

As  noted  previously,  based  on  the  testing  of  the  Class  16B  Performance  Rights  at  30  June  2019,  the  Board 

decided to vest 92% of the Class16B performance rights after balance date. The vesting event will be recorded in 

the next reporting period. 

8. 

REMUNERATION OF DIRECTORS AND KEY MANAGEMENT  PERSONNEL 

The following tables show details of the remuneration received by Directors and KMP of the Company for the 

current and previous financial year. 

20,393  533,957  355,875  45,833  2,183,322  3,826,130 

Fees for 

Non - 

Termi

Directors 

executive 

Monetary 

nation 

services 

Benefits 

(viii) 

LTIP 

STIP 

(vii) 

Superan- 

nuation 

Amor - 

tisation 

FY19 

2019 - Directors 

Johnstone,Colin (i) 

Conway,Lawrence 

Corlett,Susan (ii) 

Espie,Paul 

Harris,Paul (iii) 

Menzies,Michael (iv) 

Simpson,James (v) 

Tuck,Clifford (vi) 

2019 - Executives 

Churcher,Timothy 

134,750 

118,333 

Base 

salary/ 

fees 

$ 

78,163 

61,912 

79,706 

52,966 

85,588 

686,750 

17,794 

413,000 

$ 

- 

- 

- 

- 

- 

48,000 

80,000 

$ 

- 

- 

- 

- 

- 

- 

- 

$ 

- 

- 

- 

- 

- 

- 

- 

- 

$ 

- 

- 

- 

- 

- 

- 

- 

$ 

- 

7,425 

5,882 

5,882 

- 

- 

- 

Total 

$ 

253,083 

85,588 

67,794 

85,588 

100,966 

165,588 

17,794 

Total 

1,610,629  246,333 

34,344  533,957  421,575  90,022  2,312,967  5,249,827 

13,951 

65,700  25,000 

129,645 

647,296 

(i) 

(ii) 

(iii) 

Appointed as Interim Executive Chairman & CEO from 1 May 19 

Appointed 3 Oct 18 

Appointed as Director 17 Dec 18 & as Lead Independent from 1 May 19 

(iv)  Appointed as Interim Executive Director & COO from 1 May 19 

(v) 

Resigned 22 May 19 

(vi)  Resigned 30 Sep 18, provided executive advisory services from 1 Oct 18 

(vii)  The FY19 STIP amounts relate to the performance in the current financial year, but will actually be paid in 

FY20 

(viii)  The termination payment has been provided in the current financial year and will be paid 31 Aug 19. 

FY18 

2018 - Directors 

Johnstone,Colin 

Conway,Lawrence 

Espie,Paul (ix) 

Menzies,Michael 

Symann, Rune (x) 

Simpson,James 

Tuck,Clifford (xi) 

2018 - Executives 

Churcher,Timothy 

Total 

Base 

salary/ 

fees 

$ 

109,500 

65,000 

71,175 

71,175 

59,313 

438,948 

7,491 

Fees for 

Non - 

LTIP 

Directors 

executive 

Monetary 

Term - 

services 

Benefits 

ination 

STIP 

(xii) 

Superan- 

Amor - 

nuation 

tisation 

$ 

$ 

$ 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

$ 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

6,175 

$ 

- 

- 

- 

- 

- 

-  20,393 

-  344,247  20,052  1,702,200  2,525,840 

Total 

$ 

109,500 

71,175 

71,175 

71,175 

59,313 

7,491 

353,024 

1,175,626 

-  13,951 

34,344 

- 

-  189,012  25,000 

720,156  1,301,143 

- 

533,259  51,227  2,422,356  4,216,812 

(ix)  Paul Espie was a Pacific Road board nominee and his fees were paid to the account of Pacific Road 

Resources Fund II until the sale of their shares 

(x) 

Resigned 30 Apr 18 

(xi)  Appointed 24 May 18 

(xii)  The FY18 STIP amounts relate to the performance in FY18 but were paid in FY19 

$ 

- 

- 

- 

- 

- 

- 

- 

$ 

- 

- 

- 

- 

- 

- 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT (AUDITED) (CONTINUED) 

REMUNERATION REPORT (AUDITED) (CONTINUED) 

5. 

DETAILS OF PERFORMANCE RIGHTS WHICH REMAIN UNTESTED (CONTINUED) 

7. 

DETAILS OF SHARE BASED COMPENSATION TO KMP (CONTINUED) 

The Performance Rights have been measured at Fair Value (refer to Note 19. (d) of the Financial Report). The 
fair  value  adjustment  expensed  during  the  period  for  Mr  Simpson  was  $2,183,322  and  for  Mr  Churcher  was 
$129,645. 

As  noted  previously,  based  on  the  testing  of  the  Class  16B  Performance  Rights  at  30  June  2019,  the  Board 
decided to vest 92% of the Class16B performance rights after balance date. The vesting event will be recorded in 
the next reporting period. 

8. 

REMUNERATION OF DIRECTORS AND KEY MANAGEMENT  PERSONNEL 

The following tables show details of the remuneration received by Directors and KMP of the Company for the 
current and previous financial year. 

Base 
salary/ 
Directors 
fees 
$ 
134,750 
78,163 
61,912 
79,706 
52,966 
85,588 
686,750 
17,794 

Fees for 
executive 
services 
$ 
118,333 
- 
- 
- 
48,000 
80,000 
- 

413,000 
1,610,629  246,333 

- 

FY19 
2019 - Directors 
Johnstone,Colin (i) 
Conway,Lawrence 
Corlett,Susan (ii) 
Espie,Paul 
Harris,Paul (iii) 
Menzies,Michael (iv) 
Simpson,James (v) 
Tuck,Clifford (vi) 
2019 - Executives 
Churcher,Timothy 
Total 

Non - 
Monetary 
Benefits 
$ 
- 
- 
- 
- 
- 
- 

Total 
$ 
253,083 
85,588 
67,794 
85,588 
100,966 
165,588 
20,393  533,957  355,875  45,833  2,183,322  3,826,130 

Superan- 
nuation 
$ 
- 
7,425 
5,882 
5,882 
- 
- 

STIP 
(vii) 
$ 
- 
- 
- 
- 
- 
- 

LTIP 
Amor - 
tisation 
$ 
- 
- 
- 
- 
- 
- 

Termi
nation 
(viii) 
$ 
- 
- 
- 
- 
- 
- 

- 

- 

- 

- 

- 

17,794 

13,951 
647,296 
34,344  533,957  421,575  90,022  2,312,967  5,249,827 

65,700  25,000 

129,645 

- 

Appointed as Interim Executive Chairman & CEO from 1 May 19 
Appointed 3 Oct 18 
Appointed as Director 17 Dec 18 & as Lead Independent from 1 May 19 

(i) 
(ii) 
(iii) 
(iv)  Appointed as Interim Executive Director & COO from 1 May 19 
(v) 
(vi)  Resigned 30 Sep 18, provided executive advisory services from 1 Oct 18 
(vii)  The FY19 STIP amounts relate to the performance in the current financial year, but will actually be paid in 

Resigned 22 May 19 

FY20 

(viii)  The termination payment has been provided in the current financial year and will be paid 31 Aug 19. 

5.1  Class 16C Performance Rights (continued) 

• 

2016 Issue Class 16C Performance Measures are: Relative TSR (Total Shareholder Return); Hera 

Process Throughput; Hera Mine Inventory; and Balance Sheet Restructure. 

5.2  Class 18A Performance Rights 

On 4 December 2018, the Company granted 2,041,875 Performance Rights to the Key Management Personnel. 

Of  the  total,  770,893  Performance  Rights  are  held  by  KMP  other  than  the  former  Managing  Director  &  CEO, 

these  are  structured  to  vest  based  on  a  variety  of  performance  measures  (refer  section  4.2(a))  and  remain 

untested at balance date. 

5.3  Class 18B Performance Rights 

On 4 December 2018, the Company granted 2,655,296 Performance Rights to the Key Management Personnel. 

Of  the  total,  1,384,313  Performance  Rights  are  held  by  senior  management  and  KMP  other  than  the  former 

Managing  Director  &  CEO,  these  are  structured  to  vest  based  on  a  variety  of  performance  measures  (refer 

section 4.2(a)) and remain untested at balance date. 

6. 

SUMMARY OF MOVEMENTS IN PERFORMANCE RIGHTS DURING THE YEAR 

A summary of movements of Performance Rights within the various plans are tabulated below. 

Balance 

Granted 

Vested 

Expired 

Balance 

FY 19 

Grant 

date 

Test 

Date 

Exercise at start of 

during the 

during the 

Price 

the year 

year 

year 

during 

the year 

at year 

end 

2016 Class16A  28-11-16  30-06-18 

2016 Class16B  28-11-16  30-06-19 

2016 Class16C  28-11-16  30-06-20 

2018 Class18A  04-12-18  30-06-20 

2018 Class18B  04-12-18  30-06-21 

nil 

nil 

nil 

nil 

nil 

2,000,000 

2,250,000 

2,250,000 

- 

- 

- 

- 

- 

2,041,875 

2,655,296 

- 

- 

- 

- 

(2,000,000) 

Total 

6,500,000  4,697,171 

(2,000,000) 

- 

- 

- 

- 

- 

- 

- 

2,250,000 

2,250,000 

2,041,875 

2,655,296 

9,197,171 

Note: Post balance date, the Board determined that 6,104,464 of the Performance Rights on Issue at year end, 

will vest into ordinary shares. The movement will be displayed in the next reporting period. 

7. 

DETAILS OF SHARE BASED COMPENSATION TO  KMP 

Details on Rights over ordinary shares in the Company that were granted as compensation to members of the 

Key Management Personnel and details on Rights that vested during the reporting period are as follows: 

Test 

Date 

Number 

Granted 

Grant 

Date 

Fair 

Fair 

Value at 

Value at 

Grant 

Date 

Date 

$/Right 

$/Right 

Vesting 

Number of 

Rights 

Vested 

Balance at 

year end 

FY19 

Class (i) 

Executives 

Simpson, James 

Class 16A 

Class 16B 

Class 16C 

Class 18A 

Class 18B 

30-06-18 

30-06-19 

30-06-20 

30-06-20 

30-06-21 

(ii) 

(ii) 

(ii) 

(ii) 

Churcher, Timothy 

Class 16A 

Class 16B 

Class 16C 

Class 18A 

Class 18B 

30-06-18 

30-06-19 

30-06-20 

30-06-20 

30-06-21 

0.715 

(1,500,000) 

(1,500,000) 

0.715 

(500,000) 

1,500,000 

28-11-16 

1,500,000 

28-11-16 

1,500,000 

28-11-16 

1,270,982 

04-12-18 

1,270,982 

04-12-18 

7,041,964 

500,000 

20-12-16 

750,000 

20-12-16 

750,000 

20-12-16 

508,393 

04-12-18 

508,393 

04-12-18 

3,016,786 

0.145 

0.145 

0.145 

0.210 

0.300 

0.180 

0.150 

0.150 

0.150 

0.210 

0.300 

0.190 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

1,500,000 

1,500,000 

1,270,982 

1,270,982 

5,541,964 

- 

750,000 

750,000 

508,393 

508,393 

(500,000) 

2,516,786 

(i) 

(ii) 

All classes of Performance Rights that Vest into Ordinary Shares, vest at a nil exercise price. 

As part of the former Managing Director & CEO’s termination conditions, the performance rights issued 

will vest on 31 August 2019. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  37

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  38

(ix)  Paul Espie was a Pacific Road board nominee and his fees were paid to the account of Pacific Road 

Resources Fund II until the sale of their shares 
Resigned 30 Apr 18 

(x) 
(xi)  Appointed 24 May 18 
(xii)  The FY18 STIP amounts relate to the performance in FY18 but were paid in FY19 

- 
- 
- 
- 
- 
-  344,247  20,052  1,702,200  2,525,840 
- 

FY18 
2018 - Directors 
Johnstone,Colin 
Conway,Lawrence 
Espie,Paul (ix) 
Menzies,Michael 
Symann, Rune (x) 
Simpson,James 
Tuck,Clifford (xi) 
2018 - Executives 
Churcher,Timothy 
Total 

353,024 
1,175,626 

-  13,951 
34,344 

- 

-  189,012  25,000 

720,156  1,301,143 
533,259  51,227  2,422,356  4,216,812 

- 

Non - 
Monetary 
Benefits 
$ 
- 
- 
- 
- 
- 

- 
- 
- 
- 
- 
-  20,393 
- 

Base 
salary/ 
Directors 
fees 
$ 
109,500 
65,000 
71,175 
71,175 
59,313 
438,948 
7,491 

Superan- 
nuation 
$ 
- 
6,175 
- 
- 
- 

LTIP 
Amor - 
tisation 
$ 
- 
- 
- 
- 
- 

Total 
$ 
109,500 
71,175 
71,175 
71,175 
59,313 

STIP 
(xii) 
$ 
- 
- 
- 
- 
- 

Fees for 
executive 
services 
$ 

Term - 
ination 
$ 

7,491 

- 

- 

- 

- 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
All  equity  transactions  with  KMPs  other  than  those  arising  from  exercise  of  remuneration  options  and 

performance  rights  have  been  entered  into  under  terms  and  agreements  no  more  favourable  than  those  the 

Company would have adopted if dealing at arm's length. 

   AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES 

During the year the Company’s auditor, Ernst & Young Australia provided non-audit services. The directors are 

satisfied  that  the  provision  of  non-audit  services  is  compatible  with  the  general  standard  of  independence  for 

auditors imposed by the Corporations Act 2001. The nature and scope of each type of non-audit service provided 

means that auditor independence was not compromised. 

The Company has obtained an independence declaration from its auditor, Ernst and Young, which forms part of 

this report. A copy of that declaration is included on the following page. 

Signed on behalf of the Board in accordance with a resolution of the Directors. 

Note 24. 

Mr Colin Johnstone 

Executive Chairman & Acting Chief Executive Officer 

23 August 2019 

REMUNERATION REPORT (AUDITED) (CONTINUED) 

REMUNERATION REPORT (AUDITED) (CONTINUED) 

8. 

REMUNERATION OF DIRECTORS AND KEY MANAGEMENT PERSONNEL (CONTINUED) 

9. 

SHAREHOLDINGS OF DIRECTORS AND KEY MANAGEMENT PERSONNEL (CONTINUED) 

Executives are employed under executive employment agreements with the Company. James Simpson, former 
Managing Director (until 22 May 2019) & CEO (until 1 May 2019), was paid a TFR (Total Fixed Remuneration 
which is base salary plus superannuation) of $711,750, with a 3 month notice period for either party. The former 
Managing Director and CEO was contractually entitled, in most circumstances, to a termination benefit of 12 
months TFR plus accrued entitlements. 

Timothy Churcher, Chief Financial Officer & Company Secretary, is paid a TFR (Total Fixed Remuneration which 
is  base  salary  plus  superannuation)  of  $438,000,  with  a  3  month  notice  period  for  either  party.  The  Chief 
Financial Officer & Company Secretary is contractually entitled, in most circumstances, to a termination benefit of 
12 months TFR plus accrued entitlements. The former Managing Director and CEO and Chief Financial Officer & 
Company Secretary are entitled to the private use of a company vehicle as part of their remuneration package. 

9. 

SHAREHOLDINGS OF DIRECTORS AND KEY MANAGEMENT  PERSONNEL 

The amounts received or due to be received by Ernst & Young Australia for non-audit services are contained in 

The shareholdings of Directors and KMPs presented below include shares held directly, indirectly, and 
beneficially by the Directors and other KMPs. 

FY19 
2019 - Directors 
Johnstone,Colin 
Simpson,James (i) 
Conway,Lawrence 
Corlett,Susan (ii) 
Espie,Paul 
Harris,Paul (iii) 
Menzies,Michael 
Tuck,Clifford (iv) 
2019 - Executives 
Churcher,Timothy 
Total 

Balance at the 
start of the 
year 

Vesting of 
Performance 
Rights 

On 
Exercise 
of share 
options 

Other changes 
during the year 

Balance at 
year end 

1,000,001 
602,429 
171,429 
- 
- 
- 
533,929 
- 

371,429 
2,679,217 

- 
1,500,000 
- 
- 
- 
- 
- 
- 

500,000 
2,000,000 

- 
- 
- 
- 
- 
- 
- 
- 

- 
- 

- 
(2,102,429) 
- 
33,731 
150,000 
- 
100,000 
- 

(871,429) 
(2,690,127) 

1,000,001 
- 
171,429 
33,731 
150,000 
- 
633,929 
- 

- 
1,989,090 

Resigned 22 May 19 
(i) 
Appointed 3 Oct 18 
(ii) 
(iii) 
Appointed 17 Dec18 
(iv)  Resigned 30 Sep 18 

FY18 
Directors 
Johnstone,Colin 
Simpson,James 
Conway,Lawrence 
Espie,Paul (v) 
Menzies,Michael 
Symann, Rune (vi) 
Tuck,Clifford (vii) 
2018 - Executives 
Churcher,Timothy 
Total 

Balance at the 
start of the 
year 

Vesting of 
Performance 
Rights 

On 
Exercise 
of share 
options 

Other changes 
during the year 

Balance at 
year end 

800,000 
331,000 
100,000 
- 
462,500 
- 
- 

300,000 
1,993,500 

- 
- 
- 
- 
- 
- 
- 

- 
- 

- 
- 
- 
- 
- 
- 
- 

- 
- 

200,001 
271,429 
71,429 
- 
71,429 
- 
- 

71,429 
685,717 

1,000,001 
602,429 
171,429 
- 
533,929 
- 
- 

371,429 
2,679,217 

(v) 

(vi) 
(vii) 

Paul Espie was a Pacific Road board nominee and as such was restricted from purchasing shares on his 
own account. 
Resigned 30 Apr 18 
Appointed 24 May 18 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  39

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  40

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT (AUDITED) (CONTINUED) 

REMUNERATION REPORT (AUDITED) (CONTINUED) 

8. 

REMUNERATION OF DIRECTORS AND KEY MANAGEMENT PERSONNEL (CONTINUED) 

9. 

SHAREHOLDINGS OF DIRECTORS AND KEY MANAGEMENT PERSONNEL (CONTINUED) 

All  equity  transactions  with  KMPs  other  than  those  arising  from  exercise  of  remuneration  options  and 
performance  rights  have  been  entered  into  under  terms  and  agreements  no  more  favourable  than  those  the 
Company would have adopted if dealing at arm's length. 

   AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES 

During the year the Company’s auditor, Ernst & Young Australia provided non-audit services. The directors are 
satisfied  that  the  provision  of  non-audit  services  is  compatible  with  the  general  standard  of  independence  for 
auditors imposed by the Corporations Act 2001. The nature and scope of each type of non-audit service provided 
means that auditor independence was not compromised. 

The amounts received or due to be received by Ernst & Young Australia for non-audit services are contained in 
Note 24. 

The Company has obtained an independence declaration from its auditor, Ernst and Young, which forms part of 
this report. A copy of that declaration is included on the following page. 

Signed on behalf of the Board in accordance with a resolution of the Directors. 

Mr Colin Johnstone 

Executive Chairman & Acting Chief Executive Officer 
23 August 2019 

Executives are employed under executive employment agreements with the Company. James Simpson, former 

Managing Director (until 22 May 2019) & CEO (until 1 May 2019), was paid a TFR (Total Fixed Remuneration 

which is base salary plus superannuation) of $711,750, with a 3 month notice period for either party. The former 

Managing Director and CEO was contractually entitled, in most circumstances, to a termination benefit of 12 

months TFR plus accrued entitlements. 

Timothy Churcher, Chief Financial Officer & Company Secretary, is paid a TFR (Total Fixed Remuneration which 

is  base  salary  plus  superannuation)  of  $438,000,  with  a  3  month  notice  period  for  either  party.  The  Chief 

Financial Officer & Company Secretary is contractually entitled, in most circumstances, to a termination benefit of 

12 months TFR plus accrued entitlements. The former Managing Director and CEO and Chief Financial Officer & 

Company Secretary are entitled to the private use of a company vehicle as part of their remuneration package. 

9. 

SHAREHOLDINGS OF DIRECTORS AND KEY MANAGEMENT  PERSONNEL 

The shareholdings of Directors and KMPs presented below include shares held directly, indirectly, and 

beneficially by the Directors and other KMPs. 

Balance at the 

Vesting of 

start of the 

Performance 

year 

Rights 

On 

Exercise 

of share 

options 

Other changes 

during the year 

Balance at 

year end 

FY19 

2019 - Directors 

Johnstone,Colin 

Simpson,James (i) 

Conway,Lawrence 

Corlett,Susan (ii) 

Espie,Paul 

Harris,Paul (iii) 

Menzies,Michael 

Tuck,Clifford (iv) 

2019 - Executives 

Churcher,Timothy 

Total 

(i) 

(ii) 

(iii) 

Resigned 22 May 19 

Appointed 3 Oct 18 

Appointed 17 Dec18 

(iv)  Resigned 30 Sep 18 

FY18 

Directors 

Johnstone,Colin 

Simpson,James 

Conway,Lawrence 

Espie,Paul (v) 

Menzies,Michael 

Symann, Rune (vi) 

Tuck,Clifford (vii) 

2018 - Executives 

Churcher,Timothy 

Total 

own account. 

(vi) 

(vii) 

Resigned 30 Apr 18 

Appointed 24 May 18 

1,000,001 

602,429 

171,429 

- 

- 

- 

- 

533,929 

800,000 

331,000 

100,000 

462,500 

- 

- 

- 

300,000 

1,993,500 

1,500,000 

(2,102,429) 

1,000,001 

171,429 

33,731 

150,000 

33,731 

150,000 

100,000 

633,929 

371,429 

2,679,217 

500,000 

2,000,000 

(871,429) 

(2,690,127) 

1,989,090 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

200,001 

271,429 

71,429 

1,000,001 

602,429 

171,429 

71,429 

533,929 

71,429 

685,717 

371,429 

2,679,217 

Balance at the 

Vesting of 

start of the 

Performance 

year 

Rights 

On 

Exercise 

of share 

options 

Other changes 

during the year 

Balance at 

year end 

(v) 

Paul Espie was a Pacific Road board nominee and as such was restricted from purchasing shares on his 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  39

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  40

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 the financial report of Aurelia Metals Limited for the financial year 
ended 30 June 2019, 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 audit. 

This declaration is in respect of Aurelia Metals Limited and the entities it controlled during the financial 
year. 

Ernst & Young 

Scott Jarrett 
Partner 
23 August 2019 

STATEMENT OF COMPREHENSIVE INCOME 

For the year ended 30 June 2019 

Revenue from contracts with customers 

Cost of sales 

Gross profit 

Corporate administration expenses 

Acquisition and integration expenses 

Share based expense 

Exploration and evaluation costs written off 

Gain/(loss) on commodity derivatives 

Other expenses 

Profit before interest and income tax 

Finance income 

Finance costs 

Profit before income tax 

Income tax (expense)/benefit 

Profit after income tax 

Note 

5.1 

5.2 

5.3 

5.4 

19 

10 

5.6 

5.7 

5.8 

6.1 

2019 

$000 

2018 

$000 

295,002 

(215,024)    

79,978 

248,599 

(136,093) 

112,506 

(6,874) 

- 

(2,397) 

(2,473) 

(15,887) 

(1,257)    

51,090 

1,634 

(1,706)    

51,018 

(15,001)    

36,017    

(3,136) 

(6,770) 

(2,427) 

(679) 

633 

(16) 

100,111 

772 

(8,577) 

92,306 

6,799 

99,105 

Total comprehensive profit for the year 

36,017    

99,105 

Earnings per share for Profit attributable to the ordinary equity holders of the parent 

Basic earnings per share (cents per share) 

Diluted earnings per share (cents per share) 

3 

3 

4.2 

4.1 

15.5 

15.1 

The above Statement should be read in conjunction with the accompanying notes. 

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  42

 
 
 
 
 
 
 
  
 
  
 
  
 
 
  
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 the financial report of Aurelia Metals Limited for the financial year 

ended 30 June 2019, 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 audit. 

This declaration is in respect of Aurelia Metals Limited and the entities it controlled during the financial 

year. 

Ernst & Young 

Scott Jarrett 

Partner 

23 August 2019 

STATEMENT OF COMPREHENSIVE INCOME 

For the year ended 30 June 2019 

Revenue from contracts with customers 
Cost of sales 
Gross profit 

Corporate administration expenses 
Acquisition and integration expenses 
Share based expense 
Exploration and evaluation costs written off 
Gain/(loss) on commodity derivatives 
Other expenses 
Profit before interest and income tax 

Finance income 
Finance costs 
Profit before income tax 

Income tax (expense)/benefit 
Profit after income tax 

Note 

5.1 
5.2 

5.3 
5.4 
19 
10 
5.6 
5.7 

5.8 

6.1 

2019 
$000 

2018 
$000 

295,002 
(215,024)    
79,978 

248,599 
(136,093) 
112,506 

(6,874) 
- 
(2,397) 
(2,473) 
(15,887) 
(1,257)    
51,090 

1,634 
(1,706)    
51,018 

(15,001)    
36,017    

(3,136) 
(6,770) 
(2,427) 
(679) 
633 
(16) 
100,111 

772 
(8,577) 
92,306 

6,799 
99,105 

Total comprehensive profit for the year 

36,017    

99,105 

Earnings per share for Profit attributable to the ordinary equity holders of the parent 
Basic earnings per share (cents per share) 
Diluted earnings per share (cents per share) 

3 
3 

4.2 
4.1 

15.5 
15.1 

The above Statement should be read in conjunction with the accompanying notes. 

A member firm of Ernst & Young Global Limited 

Liability limited by a scheme approved under Professional Standards Legislation 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  42

 
 
 
 
 
 
 
  
 
  
 
  
 
 
  
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF FINANCIAL POSITION 

STATEMENT OF CHANGES IN EQUITY 

For the year ended 30 June 2019 

Transactions with owners in their capacity as 

Balance at 1 July 2017 

Total profit for the period 

owners 

Shares issued for the period 

Cost of share issue 

Share-based payments 

Balance at 30 June 2018 

Issued 

Share 

based 

Retained 

earnings/  

share payments  Accumulated  

capital 

reserve 

Note 

$000 

$000 

100,466 

4,231 

losses 

$000 

Total 

$000 

(108,476) 

(3,779) 

99,105       99,105 

89,254 

(3,967) 

15 

15 

19 

   185,753    

2,427    

6,658    

- 

- 

- 

89,254 

(3,967) 

2,427 

(9,371)     183,040 

Balance at 1 July 2018 

185,753 

6,658 

(9,371) 

183,040 

Total profit for the period 

36,017 

36,017 

Transactions with owners in their capacity as 

owners 

Shares issued for the period 

Share-based payments 

Balance at 30 June 2019 

15 

19 

125 

- 

   185,878    

2,397    

9,055    

- 

- 

125 

2,397 

26,646     221,579 

The above Statement should be read in conjunction with the accompanying notes. 

- 

- 

- 

- 

- 

- 

- 

- 

As at 30 June 2019 

Assets 
Current assets 
Cash and cash equivalents 
Trade and other receivables 
Inventories 
Prepayments 
Derivative financial instruments 
Total current assets 

Non-current assets 
Mine properties 
Property, plant and equipment 
Exploration and evaluation assets 
Deferred tax assets 
Financial assets 
Total non-current assets 

Total assets 

Liabilities 
Current liabilities 
Trade and other payables 
Current tax liabilities 
Provisions 
Borrowings 
Derivative financial instruments 
Total current liabilities 

Non-current liabilities 
Provisions 
Total non-current liabilities 

Total liabilities 

Net assets 

Equity 
Contributed equity 
Reserves 
Retained earnings/(retained loss) 
Total equity 

Note 

2019 
$000 

2018 
$000 

11 
12 

13 

8 
9 
10 
6.3 
13 

14 

20 
18 
13 

20 

15 
16 
17 

104,302 
7,285 
23,316 
1,444 
- 
136,347 

87,748 
85,351 
5,878 
5,123 

700    
184,800    

66,925 
5,828 
18,345 
1,378 
1,650 
94,126 

68,310 
91,504 
289 
7,487 
4,822 
172,412 

321,147    

266,538 

29,789 
- 
10,029 
- 
12,041    
51,859 

47,710 
47,710 

99,569    

29,691 
1,053 
15,287 
878 
- 
46,909 

36,589 
36,589 

83,498 

221,579 

183,040 

185,878 
9,055 
26,646    
221,579    

185,753 
6,658 
(9,370) 
183,041 

The above Statement should be read in conjunction with the accompanying notes. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  43

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  44

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
  
 
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
  
 
 
 
  
 
  
 
 
  
 
 
 
 
 
 
 
 
  
 
  
 
 
STATEMENT OF FINANCIAL POSITION 

STATEMENT OF CHANGES IN EQUITY 

Total 
$000 

Share 
based 

reserve 
$000 

Retained 
earnings/  
Issued 
share payments  Accumulated  
losses 
capital 
$000 
$000 

Note 

2019 

$000 

2018 

$000 

For the year ended 30 June 2019 

Note 

As at 30 June 2019 

Assets 

Current assets 

Cash and cash equivalents 

Trade and other receivables 

Inventories 

Prepayments 

Derivative financial instruments 

Total current assets 

Non-current assets 

Mine properties 

Property, plant and equipment 

Exploration and evaluation assets 

Deferred tax assets 

Financial assets 

Total non-current assets 

Total assets 

Liabilities 

Current liabilities 

Trade and other payables 

Current tax liabilities 

Provisions 

Borrowings 

Derivative financial instruments 

Total current liabilities 

Non-current liabilities 

Provisions 

Total non-current liabilities 

Total liabilities 

Net assets 

Equity 

Contributed equity 

Reserves 

Retained earnings/(retained loss) 

Total equity 

11 

12 

13 

8 

9 

10 

6.3 

13 

14 

20 

18 

13 

20 

15 

16 

17 

321,147    

266,538 

104,302 

7,285 

23,316 

1,444 

- 

136,347 

87,748 

85,351 

5,878 

5,123 

700    

184,800    

29,789 

10,029 

- 

- 

12,041    

51,859 

47,710 

47,710 

99,569    

66,925 

5,828 

18,345 

1,378 

1,650 

94,126 

68,310 

91,504 

289 

7,487 

4,822 

172,412 

29,691 

1,053 

15,287 

878 

- 

46,909 

36,589 

36,589 

83,498 

221,579 

183,040 

185,878 

9,055 

26,646    

221,579    

185,753 

6,658 

(9,370) 

183,041 

The above Statement should be read in conjunction with the accompanying notes. 

Balance at 1 July 2017 
Total profit for the period 
Transactions with owners in their capacity as 
owners 
Shares issued for the period 
Cost of share issue 
Share-based payments 
Balance at 30 June 2018 

100,466 
- 

4,231 
- 

(108,476) 

(3,779) 
99,105       99,105 

15 
15 
19 

89,254 
(3,967) 
- 

   185,753    

- 
- 
2,427    
6,658    

- 
- 
- 

89,254 
(3,967) 
2,427 
(9,371)     183,040 

Balance at 1 July 2018 

185,753 

6,658 

(9,371) 

183,040 

Total profit for the period 

- 

- 

36,017 

36,017 

Transactions with owners in their capacity as 
owners 
Shares issued for the period 
Share-based payments 
Balance at 30 June 2019 

15 
19 

125 
- 

   185,878    

- 
2,397    
9,055    

- 
- 

125 
2,397 
26,646     221,579 

The above Statement should be read in conjunction with the accompanying notes. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  43

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  44

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
  
 
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
  
 
 
 
  
 
  
 
 
  
 
 
 
 
 
 
 
 
  
 
  
 
 
CASH FLOW STATEMENT 

For the year ended 30 June 2019 

Cash flows from operating activities 
Receipts from customers 
Payments to suppliers and employees 
Interest received 
Interest paid 
Income tax paid 
Net cash flows from operating activities 

Cash flows from investing activities 
Purchase of property, plant and equipment 
Proceeds from the sale of property, plant and equipment 
Mine capital 
Purchase cost of acquisition of business combination/stamp duty 
Cash acquired through business combination 
(Payments) Receipts from settlement of gold forwards 
Release/(payments) of security deposits 
Deferred acquisition (Hera royalty) 
Profit/(loss) on foreign exchange 
Proceeds from sale of investments 
Exploration costs 
Net cash flows used in investing activities 

Cash flows from financing activities 
Proceeds from issue of shares 
Cost of issuing shares 
Repayment of Glencore borrowings 
Drawdown of Investec syndicated facility 
Repayment of Investec syndicated facility 
Repayment of other borrowings 
Debt arrangement and service costs 
Other finance costs - withholding tax 
Net cash flows used in financing activities 

Net increase in cash and cash equivalents 
Cash and cash equivalents at beginning of the year 
Cash and cash equivalents at end of the year 

Note 

2019 
$000 

21 

4.2(a) 

15 
15 

295,945 
(172,367) 
1,634 
(1,159) 
(17,270)    
106,783    

(22,648) 
4,839 
(37,101) 
(5,387) 
- 
(3,648) 
4,742 
(3,592) 
997 
- 

(6,855)    
(68,653)    

125 
- 
- 
- 
- 
(878) 
- 
- 
(753)    

37,377 
66,925    
104,302 

2018 
$000 

258,467 
(97,660) 
762 
(846) 
(8,964) 
151,759 

(8,541) 
- 
(17,942) 
(94,554) 
34,397 
654 
(1,232) 
(2,885) 
540 
200 
(386) 
(89,749) 

89,254 
(3,967) 
(109,614) 
45,000 
(45,000) 
(343) 
(3,173) 
(2,105) 
(29,948) 

32,062 
34,863 
66,925 

The above Statement should be read in conjunction with the accompanying notes. 

Corporate includes share-based expenses and other corporate expenditures supporting the business during the 

NOTES TO FINANCIAL STATEMENTS 

Business Performance 

1. 

CORPORATE INFORMATION 

This section highlights the key indicators on how the Group performed during the year. 

The financial report of Aurelia Metals Limited and its subsidiaries for the year ended 30 June 2019 was 

authorised for issue in accordance with a resolution of the Directors on 22 August 2019. 

Aurelia Metals Limited is a company limited by shares incorporated in Australia whose shares are publicly traded 

on the Australian Stock Exchange. The Company is a for-profit entity. 

Aurelia has five wholly owned subsidiaries, Defiance Resources Pty Ltd (incorporated 15 May 2007), Hera 

Resources Pty Ltd (incorporated 20 August 2009), Nymagee Resources Pty Ltd (incorporated 7 November 

2011), Peak Gold Asia Pacific Ltd (incorporated 26 February 2003) and Peak Gold Mines Pty Ltd (incorporated 

31 October 1977). Peak Gold Asia Pacific Ltd which owns 100% of Peak Gold Mines Pty Ltd, was acquired by 

Defiance Resources Pty Ltd on 10 April 2018. 

The current nature of the operations and principal activities of the Group are gold, copper, lead and zinc 

production and mineral exploration. 

OPERATING SEGMENTS 

2. 

(a) 

Identification and description of segments 

An  operating  segment  is  a  component  of  an  entity  that  engages  in  business  activities  from  which  it  may  earn 

income  and  incur  expenses  (including  income  and  expenses  relating  to  transactions  with  other  components  of  

the same entity), whose operating results are regularly reviewed by the entity's chief operating decision makers, 

to  determine  how  resources  are  to  be  allocated  to  the segment,  and assess its  performance.  Management  will 

also consider other factors in determining operating segments such as the existence of a line manager and the 

level of segment information presented to the Board of Directors. 

The Consolidated Entity has identified its operating segments based on the internal reports that are reviewed and 

used  by  the  Managing  Director  and  the  Board  of  Directors  (the  chief  operating  decision  makers)  in  assessing 

performance and in determining the allocation of resources. 

The  Consolidated  Entity  operates  entirely  in  the  industry  of  exploration  for  and  development  of  minerals  in 

Australia.  The  reportable  segments  are  split  between  the  Hera,  Peak  Mines  project  and  Corporate.  Financial 

information  about  each  of  these  segments  is  reported  to  the  Managing  Director  and  Board  of  Directors  on  a 

Corporate office activities are not allocated to operating segments and form part of the reconciliation to net loss 

monthly basis. 

after tax. 

period. 

(EBITDA). 

operations of any segment: 

- Interest and other income; 

- Share based payment expense; 

Segment performance is evaluated based on earnings before interest, tax, depreciation and amortisation 

The following items are not allocated to operating segments, as they are not considered part of the core 

 -  Gain/(Loss) recorded on the sale of financial assets, investment revaluations, debt restructuring,foreign         

exchange and commodity derivative transactions. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  45

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  46

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
  
  
 
  
 
 
  
 
  
 
Note 

2019 

$000 

CASH FLOW STATEMENT 

For the year ended 30 June 2019 

Cash flows from operating activities 

Receipts from customers 

Payments to suppliers and employees 

Interest received 

Interest paid 

Income tax paid 

Net cash flows from operating activities 

21 

Cash flows from investing activities 

Purchase of property, plant and equipment 

Proceeds from the sale of property, plant and equipment 

Mine capital 

Purchase cost of acquisition of business combination/stamp duty 

Cash acquired through business combination 

(Payments) Receipts from settlement of gold forwards 

Release/(payments) of security deposits 

Deferred acquisition (Hera royalty) 

Profit/(loss) on foreign exchange 

Proceeds from sale of investments 

Exploration costs 

Net cash flows used in investing activities 

Cash flows from financing activities 

Proceeds from issue of shares 

Cost of issuing shares 

Repayment of Glencore borrowings 

Drawdown of Investec syndicated facility 

Repayment of Investec syndicated facility 

Repayment of other borrowings 

Debt arrangement and service costs 

Other finance costs - withholding tax 

Net cash flows used in financing activities 

Net increase in cash and cash equivalents 

Cash and cash equivalents at beginning of the year 

Cash and cash equivalents at end of the year 

The above Statement should be read in conjunction with the accompanying notes. 

2018 

$000 

258,467 

(97,660) 

762 

(846) 

(8,964) 

151,759 

(8,541) 

- 

(17,942) 

(94,554) 

34,397 

654 

(1,232) 

(2,885) 

540 

200 

(386) 

(89,749) 

89,254 

(3,967) 

(109,614) 

45,000 

(45,000) 

(343) 

(3,173) 

(2,105) 

(29,948) 

32,062 

34,863 

66,925 

295,945 

(172,367) 

1,634 

(1,159) 

(17,270)    

106,783    

(22,648) 

4,839 

(37,101) 

(5,387) 

- 

(3,648) 

4,742 

(3,592) 

997 

- 

(6,855)    

(68,653)    

125 

- 

- 

- 

- 

- 

- 

(878) 

(753)    

37,377 

66,925    

104,302 

4.2(a) 

15 

15 

NOTES TO FINANCIAL STATEMENTS 

Business Performance 
This section highlights the key indicators on how the Group performed during the year. 

1. 

CORPORATE INFORMATION 

The financial report of Aurelia Metals Limited and its subsidiaries for the year ended 30 June 2019 was 
authorised for issue in accordance with a resolution of the Directors on 22 August 2019. 

Aurelia Metals Limited is a company limited by shares incorporated in Australia whose shares are publicly traded 
on the Australian Stock Exchange. The Company is a for-profit entity. 

Aurelia has five wholly owned subsidiaries, Defiance Resources Pty Ltd (incorporated 15 May 2007), Hera 
Resources Pty Ltd (incorporated 20 August 2009), Nymagee Resources Pty Ltd (incorporated 7 November 
2011), Peak Gold Asia Pacific Ltd (incorporated 26 February 2003) and Peak Gold Mines Pty Ltd (incorporated 
31 October 1977). Peak Gold Asia Pacific Ltd which owns 100% of Peak Gold Mines Pty Ltd, was acquired by 
Defiance Resources Pty Ltd on 10 April 2018. 

The current nature of the operations and principal activities of the Group are gold, copper, lead and zinc 
production and mineral exploration. 

2. 

(a) 

OPERATING SEGMENTS 

Identification and description of segments 

An  operating  segment  is  a  component  of  an  entity  that  engages  in  business  activities  from  which  it  may  earn 
income  and  incur  expenses  (including  income  and  expenses  relating  to  transactions  with  other  components  of  
the same entity), whose operating results are regularly reviewed by the entity's chief operating decision makers, 
to  determine  how  resources  are  to  be  allocated  to  the segment,  and assess its  performance.  Management  will 
also consider other factors in determining operating segments such as the existence of a line manager and the 
level of segment information presented to the Board of Directors. 

The Consolidated Entity has identified its operating segments based on the internal reports that are reviewed and 
used  by  the  Managing  Director  and  the  Board  of  Directors  (the  chief  operating  decision  makers)  in  assessing 
performance and in determining the allocation of resources. 

The  Consolidated  Entity  operates  entirely  in  the  industry  of  exploration  for  and  development  of  minerals  in 
Australia.  The  reportable  segments  are  split  between  the  Hera,  Peak  Mines  project  and  Corporate.  Financial 
information  about  each  of  these  segments  is  reported  to  the  Managing  Director  and  Board  of  Directors  on  a 
monthly basis. 

Corporate office activities are not allocated to operating segments and form part of the reconciliation to net loss 
after tax. 

Corporate includes share-based expenses and other corporate expenditures supporting the business during the 
period. 

Segment performance is evaluated based on earnings before interest, tax, depreciation and amortisation 
(EBITDA). 

The following items are not allocated to operating segments, as they are not considered part of the core 
operations of any segment: 

- Interest and other income; 
- Share based payment expense; 

 -  Gain/(Loss) recorded on the sale of financial assets, investment revaluations, debt restructuring,foreign         

exchange and commodity derivative transactions. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  45

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  46

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
  
  
 
  
 
 
  
 
  
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

2. 

(b) 

OPERATING SEGMENTS (CONTINUED) 

Segment information 

The segment information for the reportable segments is as follows: 

Year ended 30 June 2019 

Revenue 
Site EBITDA 

   Peak Mines 
$000 

161,109 
68,095 

Hera 
$000 

133,893 
61,636 

Reconciliation of profit before income tax expense 
Depreciation and amortisation 
Corporate costs 
Interest (net) 
Share based expenses 
Exploration costs expensed 
Other income/(expense) 
Gain/(loss) on foreign exchange/gold forwards 
Profit before income tax 

Year ended 30 June 2018 

Revenue 
Site EBITDA 

   Peak Mines 
$000 

92,832 
62,623 

Hera 
$000 

155,767 
86,448 

Reconciliation of profit before income tax expense 
Depreciation and amortisation 
Corporate costs 
Acquisition and integration costs from business combination 
Interest (net) 
Share based expenses 
Exploration costs expensed 
Other income/(expense) 
Gain/(loss) on foreign exchange/gold forwards 
Profit before income tax 

3. 

EARNINGS PER SHARE (EPS) 

Total 
$000 

295,002 
129,731 

(51,973) 
(6,753) 
(72) 
(2,397) 
(2,473) 
843 
(15,887) 
51,018 

Total 
$000 

248,599 
149,071 

(36,605) 
(3,097) 
(6,770) 
(7,805) 
(2,427) 
(679) 
(16) 
633 
92,305 

Profit used in calculating basic and diluted earnings per share 
Weighted average number of ordinary shares outstanding during the period 
used in the calculation of basic EPS 
Weighted average number of ordinary shares outstanding during the period 
used in the calculation of diluted EPS 

Basic earnings per share (cents per share) 
Diluted earnings per share (cents per share) 

2019 
000's 

36,017 

2018 
000's 

99,105 

865,052 

639,759 

872,905 

656,300 

4.16 
4.13 

15.5 
15.1 

3. 

EARNINGS PER SHARE (EPS)  (CONTINUED) 

Basic earnings per share 

Basic earnings per share is calculated by dividing the net profit for the year attributable to equity holders of the 

parent company, by the weighted average number of ordinary shares outstanding during the year. 

Diluted earnings per share 

Diluted  earnings  per  share  amounts  are  calculated  by  dividing  the  net  profit  for  the  year  attributable  to  equity 

holders of the parent company, by the weighted average number of ordinary shares outstanding during the  year, 

plus  the  weighted  average  number  of  ordinary  shares  that  would  be  issued  on  conversion  of  all  the  dilutive 

potential ordinary shares into ordinary shares. 

4. 

SIGNIFICANT ITEMS 

4.1  Gold Forward Contracts 

Significant items are those items where their nature or amount is considered material to the financial report. 

The  Company’s  gold  forward  trading  activity  does  not  meet  the  definition  of  hedging  under  AASB  9:  Financial 

Instruments, and is accounted for as a derivative financial instrument, with all realised and unrealised gains and 

losses on forwards taken to the profit and loss statement. 

The Company’s financial results for the year include a loss from gold forward trading of $16.9 million due to the 

significant gold price increase in the later part of the year. This comprises a realised loss on settled gold forward 

contracts  over  the  year  of  $4.9  million,  and  an  unrealised  mark-to-market  loss  on  future  gold  forward 

At 30 June 2019, the gold forward position was 56,000ozs at an average delivery price of A$1,809/oz, with 

commitments of $12.0 million. 

delivery dates to 30 June 2020. 

4.2  Acquisitions in 2018 

Business combination - Acquisition of Peak Gold Asia Pacific 

The  Group  acquired  100%  of  the  shares  in  Peak  Gold  Asia  Pacific  Pty  Ltd  ('PGAP'),  which  through  its  wholly 

owned subsidiary Peak Gold Mines Pty Ltd ('Peak Mines'), owns and operates the Peak gold, copper, lead and 

zinc mine in Cobar, New South Wales. 

The acquisition was completed on 10 April 2018, and consisted of a base acquisition price of $76.7 million and an 

agreed Net Cash and Working Capital Amount of $16.7 million, bringing the total acquisition consideration paid to 

$93.4 million (or $59.0 million netting off the cash acquired with the business). 

The provisional fair values of identifiable assets acquired and liabilities assumed of Peak at the date of  

(a) Acquisition date fair values 

acquisition were as follows: 

Cash 

Trade and other receivables 

Property, plant & equip (PP&E) 

Inventory 

Mine properties 

Trade and other payables 

Income tax payable 

Provisions 

Net assets acquired 

Fair value 

$000 

34,397 

16,300 

55,611 

14,989 

37,817 

(18,640) 

(10,017) 

(37,037) 

93,420 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  47

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  48

 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
  
 
 
  
 
  
 
  
 
  
  
  
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

OPERATING SEGMENTS (CONTINUED) 

2. 

(b) 

Segment information 

The segment information for the reportable segments is as follows: 

Year ended 30 June 2019 

Revenue 

Site EBITDA 

   Peak Mines 

$000 

161,109 

68,095 

Hera 

$000 

133,893 

61,636 

Reconciliation of profit before income tax expense 

Depreciation and amortisation 

Corporate costs 

Interest (net) 

Share based expenses 

Exploration costs expensed 

Other income/(expense) 

Gain/(loss) on foreign exchange/gold forwards 

Profit before income tax 

Year ended 30 June 2018 

Revenue 

Site EBITDA 

Depreciation and amortisation 

Corporate costs 

Interest (net) 

Share based expenses 

Exploration costs expensed 

Other income/(expense) 

Reconciliation of profit before income tax expense 

Acquisition and integration costs from business combination 

Gain/(loss) on foreign exchange/gold forwards 

Profit before income tax 

3. 

EARNINGS PER SHARE (EPS) 

   Peak Mines 

$000 

92,832 

62,623 

Hera 

$000 

155,767 

86,448 

Total 

$000 

295,002 

129,731 

(51,973) 

(6,753) 

(72) 

(2,397) 

(2,473) 

843 

(15,887) 

51,018 

Total 

$000 

248,599 

149,071 

(36,605) 

(3,097) 

(6,770) 

(7,805) 

(2,427) 

(679) 

(16) 

633 

92,305 

3. 

EARNINGS PER SHARE (EPS)  (CONTINUED) 

Basic earnings per share 

Basic earnings per share is calculated by dividing the net profit for the year attributable to equity holders of the 
parent company, by the weighted average number of ordinary shares outstanding during the year. 

Diluted earnings per share 

Diluted  earnings  per  share  amounts  are  calculated  by  dividing  the  net  profit  for  the  year  attributable  to  equity 
holders of the parent company, by the weighted average number of ordinary shares outstanding during the  year, 
plus  the  weighted  average  number  of  ordinary  shares  that  would  be  issued  on  conversion  of  all  the  dilutive 
potential ordinary shares into ordinary shares. 

4. 

SIGNIFICANT ITEMS 

Significant items are those items where their nature or amount is considered material to the financial report. 

4.1  Gold Forward Contracts 

The  Company’s  gold  forward  trading  activity  does  not  meet  the  definition  of  hedging  under  AASB  9:  Financial 
Instruments, and is accounted for as a derivative financial instrument, with all realised and unrealised gains and 
losses on forwards taken to the profit and loss statement. 

The Company’s financial results for the year include a loss from gold forward trading of $16.9 million due to the 
significant gold price increase in the later part of the year. This comprises a realised loss on settled gold forward 
contracts  over  the  year  of  $4.9  million,  and  an  unrealised  mark-to-market  loss  on  future  gold  forward 
commitments of $12.0 million. 

At 30 June 2019, the gold forward position was 56,000ozs at an average delivery price of A$1,809/oz, with 
delivery dates to 30 June 2020. 

4.2  Acquisitions in 2018 

Business combination - Acquisition of Peak Gold Asia Pacific 
The  Group  acquired  100%  of  the  shares  in  Peak  Gold  Asia  Pacific  Pty  Ltd  ('PGAP'),  which  through  its  wholly 
owned subsidiary Peak Gold Mines Pty Ltd ('Peak Mines'), owns and operates the Peak gold, copper, lead and 
zinc mine in Cobar, New South Wales. 

The acquisition was completed on 10 April 2018, and consisted of a base acquisition price of $76.7 million and an 
agreed Net Cash and Working Capital Amount of $16.7 million, bringing the total acquisition consideration paid to 
$93.4 million (or $59.0 million netting off the cash acquired with the business). 

(a) Acquisition date fair values 
The provisional fair values of identifiable assets acquired and liabilities assumed of Peak at the date of  
acquisition were as follows: 

Profit used in calculating basic and diluted earnings per share 

Weighted average number of ordinary shares outstanding during the period 

used in the calculation of basic EPS 

Weighted average number of ordinary shares outstanding during the period 

used in the calculation of diluted EPS 

Basic earnings per share (cents per share) 

Diluted earnings per share (cents per share) 

2019 

000's 

36,017 

2018 

000's 

99,105 

865,052 

639,759 

872,905 

656,300 

4.16 

4.13 

15.5 

15.1 

Cash 
Trade and other receivables 
Property, plant & equip (PP&E) 
Inventory 
Mine properties 
Trade and other payables 
Income tax payable 
Provisions 
Net assets acquired 

Fair value 
$000 

34,397 
16,300 
55,611 
14,989 
37,817 
(18,640) 
(10,017) 
(37,037) 
93,420 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  47

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  48

 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
  
 
 
  
 
  
 
  
 
  
  
  
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

4. 

SIGNIFICANT ITEMS (CONTINUED) 

4.2  Acquisitions in 2018 (continued) 

Business combination - Acquisition of Peak Gold Asia Pacific (continued) 

(b) Acquisition date fair value of consideration transferred 

Cash paid 
Consideration transferred 

Direct costs relating to the acquisition 
Stamp duty payable on the acquisition 
Total acquisition costs 

$000 

93,420 
93,420 

1,133 
5,637 
6,770 

Management has not identified any material adjustments and the final Purchase Price Allocation at 30 June 2018 
remains consistent at 30 June 2019. 

5. 

REVENUE AND EXPENSES (CONTINUED) 

5.1  Revenue from contracts with customers (continued) 

Recognition and measurement 

Revenue  is  recognised  when  control  has  passed  to  the customer,  at  an  amount  that  reflects  the  consideration 

which the Group expects to be entitled in exchange for transferring goods and services to a customer. The Group 

is principally engaged in the business of producing gold bullion and base metal concentrate. 

The Group has generally concluded that it is the principal in its revenue contracts because it typically controls the 

goods or services before transferring them to the customer. 

Gold and Silver Bullion Sales 

Revenue from gold and silver bullion sales is recognised when control has transferred to the customer at delivery 

of  the  product,  being  at  the  respective  sites’  gold  room,  and  selling  prices  are  known  or  can  be  reasonably 

4.3 

Investec debt facility 

Zinc, Lead, Copper and Silver in Concentrate Sales 

During  the  prior  financial  year,  the  Group  entered  into  a  Senior  Debt  facility  of  $45  million  and  a  $30  million 
guarantee facility, with Investec Group, which were used to settle the acquisition of Peak Gold Asia Pacific Ltd 
and provided flexibility to restructure its current debt obligations. 

Recognition  of  revenue  from  metal  in  concentrate  sales  contracts  with  customers  is  dependent  upon  the 

individual  contracts  for  each  site.  Contracts  with  customers  are  generally  on  the  basis  of  Cost,  Insurance  and 

Freight  (CIF)  Incoterms  for  the  Hera  mine,  and  on  Carriage  and  Insurance  Paid  (CIP)  Incoterms  for  the  Peak 

estimated. 

mine. 

On 28 June 2018, following strong operational performance and significant increase in cash flow during the June 
2018 quarter, Aurelia fully repaid the $45 million Senior Debt Facility. 

At 30 June 2018, there had been no draw down on the $30 million guarantee facility with Investec. 

During the current year, the Group drew down the full Guarantee facility of $30 million and Investec provided 
guarantees in favour of various government authorities with respect to site rehabilitation. 

At 30 June 2019, the Facility is non-cash backed. The first cash-backing payment of $4.5 million is payable on 31 
December 2019. 

Interest and fees of $0.694 million have been incurred during the year on the Guarantee Facility. 

5. 

REVENUE AND EXPENSES 

Profit before income tax includes the following revenues, other income and expenses whose disclosure is 
relevant in explaining the performance of the Group. 

5.1  Revenue from contracts with customers 

Gold 
Copper 
Lead 
Zinc 
Silver 
Total revenue from contracts with customers 

2019 
$000 

197,861 
30,517 
37,823 
23,925 
4,876    
295,002    

2018 
$000 

175,236 
12,127 
27,178 
31,430 
2,628 
248,599 

The  Group  generates  concentrate  sales  revenue  primarily  from  the  obligation  to  transfer  concentrate  to  the 

customer. As the Group sells concentrate on CIF and CIP Incoterms, the freight/shipping services provided (as 

principal)  under  these  contracts  with  customers  to  facilitate  the  sale  of  concentrate  represent  a  secondary 

performance obligation. 

Revenue  is  allocated  between  the  performance  obligations  and  recognised  as  each  performance  obligation  is 

met, which for the primary obligation occurs when the concentrate is delivered to a vessel or location, and for the 

secondary obligation, if applicable, when the concentrate is delivered to the location specified by the customer. 

Revenue arising  from the  secondary  obligation,  if  assessed  as  immaterial to the  Group,  is  aggregated  with  the 

primary performance obligation for disclosure purposes. 

As  is  industry  practice,  the  terms  of  metal  in  concentrate  sales  contracts  with  third  parties  contain  provisional 

pricing arrangements whereby the selling price for metal in concentrate is determined based on the market price 

prevailing at a future date (quotation period). Revenue for the primary performance obligation is measured based 

on  the  fair  value  of  the  consideration  specified  in  a  contract  with  the  customer  at  the  time  of  settling  the 

performance obligation, and is determined by reference to forward market prices. Provisional pricing adjustments, 

which occur between the fair value at the time of settling the primary performance obligation and the final price, 

have been assessed as immaterial, and as such are recorded within revenue from concentrate sales rather than 

other income as would be required under AASB 9. 

5.2  Cost of sales 

Site production costs 

Transport and refining 

Royalty 

Inventory movement 

Depreciation and amortisation 

Total cost of sales 

2019 

$000 

147,819 

12,567 

9,135 

(6,348)    

163,173 

51,851    

215,024    

2018 

$000 

80,931 

8,206 

7,234 

3,156 

99,527 

36,566 

136,093 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  49

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  50

 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
  
 
 
 
 
 
 
 
 
  
  
  
  
 
 
 
 
 
  
 
  
  
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

4. 

SIGNIFICANT ITEMS (CONTINUED) 

4.2  Acquisitions in 2018 (continued) 

Business combination - Acquisition of Peak Gold Asia Pacific (continued) 

(b) Acquisition date fair value of consideration transferred 

$000 

93,420 

93,420 

1,133 

5,637 

6,770 

Cash paid 

Consideration transferred 

Direct costs relating to the acquisition 

Stamp duty payable on the acquisition 

Total acquisition costs 

remains consistent at 30 June 2019. 

4.3 

Investec debt facility 

Management has not identified any material adjustments and the final Purchase Price Allocation at 30 June 2018 

During  the  prior  financial  year,  the  Group  entered  into  a  Senior  Debt  facility  of  $45  million  and  a  $30  million 

guarantee facility, with Investec Group, which were used to settle the acquisition of Peak Gold Asia Pacific Ltd 

and provided flexibility to restructure its current debt obligations. 

On 28 June 2018, following strong operational performance and significant increase in cash flow during the June 

2018 quarter, Aurelia fully repaid the $45 million Senior Debt Facility. 

At 30 June 2018, there had been no draw down on the $30 million guarantee facility with Investec. 

During the current year, the Group drew down the full Guarantee facility of $30 million and Investec provided 

guarantees in favour of various government authorities with respect to site rehabilitation. 

At 30 June 2019, the Facility is non-cash backed. The first cash-backing payment of $4.5 million is payable on 31 

December 2019. 

Interest and fees of $0.694 million have been incurred during the year on the Guarantee Facility. 

Profit before income tax includes the following revenues, other income and expenses whose disclosure is 

5. 

REVENUE AND EXPENSES 

relevant in explaining the performance of the Group. 

5.1  Revenue from contracts with customers 

Gold 

Copper 

Lead 

Zinc 

Silver 

Total revenue from contracts with customers 

2019 

$000 

197,861 

30,517 

37,823 

23,925 

4,876    

295,002    

2018 

$000 

175,236 

12,127 

27,178 

31,430 

2,628 

248,599 

5. 

REVENUE AND EXPENSES (CONTINUED) 

5.1  Revenue from contracts with customers (continued) 

Recognition and measurement 

Revenue  is  recognised  when  control  has  passed  to  the customer,  at  an  amount  that  reflects  the  consideration 
which the Group expects to be entitled in exchange for transferring goods and services to a customer. The Group 
is principally engaged in the business of producing gold bullion and base metal concentrate. 

The Group has generally concluded that it is the principal in its revenue contracts because it typically controls the 
goods or services before transferring them to the customer. 

Gold and Silver Bullion Sales 

Revenue from gold and silver bullion sales is recognised when control has transferred to the customer at delivery 
of  the  product,  being  at  the  respective  sites’  gold  room,  and  selling  prices  are  known  or  can  be  reasonably 
estimated. 

Zinc, Lead, Copper and Silver in Concentrate Sales 

Recognition  of  revenue  from  metal  in  concentrate  sales  contracts  with  customers  is  dependent  upon  the 
individual  contracts  for  each  site.  Contracts  with  customers  are  generally  on  the  basis  of  Cost,  Insurance  and 
Freight  (CIF)  Incoterms  for  the  Hera  mine,  and  on  Carriage  and  Insurance  Paid  (CIP)  Incoterms  for  the  Peak 
mine. 

The  Group  generates  concentrate  sales  revenue  primarily  from  the  obligation  to  transfer  concentrate  to  the 
customer. As the Group sells concentrate on CIF and CIP Incoterms, the freight/shipping services provided (as 
principal)  under  these  contracts  with  customers  to  facilitate  the  sale  of  concentrate  represent  a  secondary 
performance obligation. 

Revenue  is  allocated  between  the  performance  obligations  and  recognised  as  each  performance  obligation  is 
met, which for the primary obligation occurs when the concentrate is delivered to a vessel or location, and for the 
secondary obligation, if applicable, when the concentrate is delivered to the location specified by the customer. 
Revenue arising  from the  secondary  obligation,  if  assessed  as  immaterial to the  Group,  is  aggregated  with  the 
primary performance obligation for disclosure purposes. 

As  is  industry  practice,  the  terms  of  metal  in  concentrate  sales  contracts  with  third  parties  contain  provisional 
pricing arrangements whereby the selling price for metal in concentrate is determined based on the market price 
prevailing at a future date (quotation period). Revenue for the primary performance obligation is measured based 
on  the  fair  value  of  the  consideration  specified  in  a  contract  with  the  customer  at  the  time  of  settling  the 
performance obligation, and is determined by reference to forward market prices. Provisional pricing adjustments, 
which occur between the fair value at the time of settling the primary performance obligation and the final price, 
have been assessed as immaterial, and as such are recorded within revenue from concentrate sales rather than 
other income as would be required under AASB 9. 

5.2  Cost of sales 

Site production costs 
Transport and refining 
Royalty 
Inventory movement 

Depreciation and amortisation 
Total cost of sales 

2019 
$000 

147,819 
12,567 
9,135 
(6,348)    
163,173 

51,851    
215,024    

2018 
$000 

80,931 
8,206 
7,234 
3,156 
99,527 

36,566 
136,093 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  49

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  50

 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
  
 
 
 
 
 
 
 
 
  
  
  
  
 
 
 
 
 
  
 
  
  
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

5. 

REVENUE AND EXPENSES (CONTINUED) 

5.3  Corporate administration expenses 

Corporate expenses 
Corporate depreciation 
Total corporate administration expenses 

5.4  Acquisition and integration expenses 

Acquisition and integration expenses 
Stamp duty 
Total acquisition and integration expenses 

2019 
$000 

6,753 

121    
6,874    

2019 
$000 
- 
-  
-  

2018 
$000 

3,097 
39 
3,136 

2018 
$000 
1,133 
5,637 
6,770 

FY18 acquisition and integration costs of $6.8 million relate to the acquisition of 100% of the shares in Peak Gold 
Asia Pacific Ltd, on 10 April 2018. 

The Group is a tax consolidated group at balance date. Peak Gold Asia Pacific Pty Ltd joined the tax 

5.5  Share based expenses 

Share based expense 
Total share based expenses 

2019 
$000 
2,397    
2,397    

2018 
$000 

2,427 
2,427 

Current tax on profits for the year 

Adjustments in respect of current income tax of previous year 

Deferred tax movements for the year 

Income tax expense/(benefit) reported in the statement of comprehensive 

income 

Being performance rights issued to Key Management Personnel. See Remuneration Report and note 19 for 
further details. 

6.2  Numerical reconciliation of income tax expense to prima facie tax payable 

5.6  Gain/(Loss) on commodity derivatives 

Gain on foreign exchange 
Loss on gold forward contracts (i) 
Total (loss)/gain on commodity derivatives 

(i) Refer to note 4.1 Significant Items for further details on gold forward contracts. 

5.7  Other income/(expense) 

Loss on disposal/impairment of plant and equipment 
Sundry income 
Gain on disposal/revaluation of financial assets 
Total other income/(expense) 

2019 
$000 

997 
(16,884)    
(15,887)    

2018 
$000 

985 
(352) 
633 

2019 
$000 

(2,337) 
460 
620    
(1,257)    

2018 
$000 

(1,144) 
987 
141 
(16) 

Accounting profit before income tax 

Tax effect of amounts which are not deductible/(taxable) in calculating 

taxable income: 

Tax at the Australian tax rate of 30% 

Share based payments and other non-assessable items 

Previously unrecognised tax benefit now recognised 

Deferred tax assets recognised 

Prior year over provisions 

Income tax expense/(benefit) 

6.3  Deferred tax balances 

comprised of the following: 

The net Deferred tax asset/liability of $5,123 million(2018: $7,565 million), classified as a non-current asset, is 

5. 

REVENUE AND EXPENSES  (CONTINUED) 

5.8  Finance costs 

Interest expense 

Debt arrangement and service fees 

Unwinding of discount 

Total finance costs 

Ltd. 

6. 

INCOME TAX 

consolidated group on 10 April 2018. 

6.1 

Income tax expense 

FY19 Interest paid includes fees for the Guarantee Facility ($30  million). FY18 debt arrangement and servicing 

fees of $3.168 million relate to the Investec Debt Facility used to settle the acquisition of Peak Gold Asia Pacific 

2019 

$000 

932 

- 

774    

1,706    

2018 

$000 

5,268 

3,168 

141 

8,577 

2019 

$000 

13,612 

(1,053) 

2,442    

2018 

$000 

30,926 

- 

(37,725) 

15,001 

(6,799) 

2019 

$000 

51,018    

15,305 

749 

- 

- 

(1,053)    

15,001    

2018 

$000 

92,305 

27,692 

3,663 

(26,137) 

(12,017) 

- 

(6,799) 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  51

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  52

 
 
 
 
 
 
 
 
  
  
 
 
  
 
  
 
  
 
  
 
 
  
 
  
 
 
 
 
  
  
 
 
 
 
 
 
 
 
  
 
  
  
 
 
  
 
  
  
 
 
 
 
  
 
  
  
 
 
 
 
  
 
  
  
 
 
 
 
 
  
 
  
  
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

5. 

REVENUE AND EXPENSES (CONTINUED) 

5.3  Corporate administration expenses 

Corporate expenses 

Corporate depreciation 

Total corporate administration expenses 

5.4  Acquisition and integration expenses 

Acquisition and integration expenses 

Stamp duty 

Total acquisition and integration expenses 

Asia Pacific Ltd, on 10 April 2018. 

5.5  Share based expenses 

Share based expense 

Total share based expenses 

5.6  Gain/(Loss) on commodity derivatives 

Gain on foreign exchange 

Loss on gold forward contracts (i) 

Total (loss)/gain on commodity derivatives 

5.7  Other income/(expense) 

Loss on disposal/impairment of plant and equipment 

Sundry income 

Gain on disposal/revaluation of financial assets 

Total other income/(expense) 

FY18 acquisition and integration costs of $6.8 million relate to the acquisition of 100% of the shares in Peak Gold 

Being performance rights issued to Key Management Personnel. See Remuneration Report and note 19 for 

further details. 

(i) Refer to note 4.1 Significant Items for further details on gold forward contracts. 

2019 

$000 

6,753 

121    

6,874    

2019 

$000 

- 

-  

-  

2018 

$000 

3,097 

39 

3,136 

2018 

$000 

1,133 

5,637 

6,770 

2019 

$000 

2,397    

2,397    

2018 

$000 

2,427 

2,427 

2019 

$000 

997 

(16,884)    

(15,887)    

2018 

$000 

985 

(352) 

633 

2019 

$000 

(2,337) 

460 

620    

(1,257)    

2018 

$000 

(1,144) 

987 

141 

(16) 

5. 

REVENUE AND EXPENSES  (CONTINUED) 

5.8  Finance costs 

Interest expense 
Debt arrangement and service fees 
Unwinding of discount 
Total finance costs 

2019 
$000 

932 
- 
774    
1,706    

2018 
$000 

5,268 
3,168 
141 
8,577 

FY19 Interest paid includes fees for the Guarantee Facility ($30  million). FY18 debt arrangement and servicing 
fees of $3.168 million relate to the Investec Debt Facility used to settle the acquisition of Peak Gold Asia Pacific 
Ltd. 

6. 

INCOME TAX 

The Group is a tax consolidated group at balance date. Peak Gold Asia Pacific Pty Ltd joined the tax 
consolidated group on 10 April 2018. 

6.1 

Income tax expense 

Current tax on profits for the year 
Adjustments in respect of current income tax of previous year 
Deferred tax movements for the year 
Income tax expense/(benefit) reported in the statement of comprehensive 
income 

2019 
$000 

13,612 
(1,053) 

2,442    

2018 
$000 

30,926 
- 
(37,725) 

15,001 

(6,799) 

6.2  Numerical reconciliation of income tax expense to prima facie tax payable 

Accounting profit before income tax 
Tax effect of amounts which are not deductible/(taxable) in calculating 
taxable income: 
Tax at the Australian tax rate of 30% 
Share based payments and other non-assessable items 
Previously unrecognised tax benefit now recognised 
Deferred tax assets recognised 
Prior year over provisions 
Income tax expense/(benefit) 

6.3  Deferred tax balances 

2019 
$000 
51,018    

15,305 
749 
- 
- 

(1,053)    
15,001    

2018 
$000 

92,305 

27,692 
3,663 
(26,137) 
(12,017) 
- 
(6,799) 

The net Deferred tax asset/liability of $5,123 million(2018: $7,565 million), classified as a non-current asset, is 
comprised of the following: 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  51

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  52

 
 
 
 
 
 
 
 
  
  
 
 
  
 
  
 
  
 
  
 
 
  
 
  
 
 
 
 
  
  
 
 
 
 
 
 
 
 
  
 
  
  
 
 
  
 
  
  
 
 
 
 
  
 
  
  
 
 
 
 
  
 
  
  
 
 
 
 
 
  
 
  
  
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

6. 

INCOME TAX (CONTINUED) 

6.4  Tax losses (continued) 

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is 

no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be 

utilised.  Unrecognised  deferred  tax  assets  are  re-assessed  at  each  reporting  date  and  are  recognised  to  the 

extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. 

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the 

asset  is  realised  or  the  liability  is  settled,  based  on  tax  rates  (and  tax  laws)  that  have  been  enacted  or 

substantively enacted at the reporting date. 

Income  taxes  relating  to  items  recognised  directly  in  equity  are  recognised  in  equity  and  not  in  the  income 

statement. 

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current 

tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity 

and the same taxation authority. 

7. 

DIVIDENDS 

$17.358 million 

2018: $19 million) 

Since year end, the Directors have recommended the payment of a fully franked dividend of 2.0 cents per fully 

paid ordinary share (30 June 2018: Nil). The aggregate amount of the proposed dividend is expected to be paid 

on 2 October 2019 out of current earnings at 30 June 2019, but not recognised as a liability at period end is 

The  final  dividend  recommended  after  30 June  2019  will  be  fully  franked  out of  franking  credits  balance at  the  

end of  the  financial  year.  The  franking account balance  at  the  end  of  the  financial  year  is  $36 million  (30 June 

6. 

INCOME TAX (CONTINUED) 

6.3  Deferred tax balances (continued) 

Balance at  
Movement in deferred tax balances                  1 July 2018 

Inventories 
Provisions 
Property, plant & equipment 
Mine properties 
Exploration and evaluation expenditure 
Tax losses carried forward 
Other 
Net Deferred Tax Asset/(Liability) 

6.4  Tax losses 

Recognised in 
profit or loss 
$000 

$000 

Balance at 30 
June 19 
$000 

Utilised to 
reduce tax 
liability 
$000 

-  
-  
-  
-  
-  
(2,454)  
-  

656  
131  
1,706  
(7,177)  
(1,464)  
2,454  
3,706  

12     

(2,454)     

(1,606) 
16,423 
317 
(13,892) 
(1,589) 
- 
5,470 
5,123 

(2,262)  
16,292  
(1,389)  
(6,715)  
(125)  
-  
1,764  
7,565     

Tax losses of $8.1 million (tax effective $2.454 million) carried forward from 30 June 2018, have been utilised 
against the current taxable income. 

Deferred  tax  assets  are  recognised  for  the  carry-forward  of  unused  tax  losses  and  unused  tax  credits  to  the 
extent  that  it  is  probable  that  taxable  profits  will  be  available  in  the  future  against  which  the  unused  tax 
losses/credits can be utilised. All available tax losses have been recognised at 30 June 2019. 

Recognition and measurement 
Current income tax 
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be 
recovered from or paid to the taxation authorities based on the current period’s taxable income. The tax rates 
and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance 
sheet date. 

Deferred tax 
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and 
liabilities and their carrying amounts for financial reporting purposes at the reporting date. 

Deferred tax liabilities are recognised for all taxable temporary differences, except: 

•  When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a 
transaction that is not a business combination and, at the time of the transaction, affects neither the 
accounting profit nor taxable profit or loss 

• 

In respect of taxable temporary differences associated with investments in subsidiaries, associates and 
interests in joint arrangements, when the timing of the reversal of the temporary differences can be 
controlled and it is probable that the temporary differences will not reverse in the foreseeable future 

Deferred  tax  assets  are  recognised  for  all  deductible  temporary  differences,  the  carry  forward  of  unused  tax 
credits  and  any  unused  tax  losses.  Deferred  tax  assets  are  recognised  to  the  extent  that  it  is  probable  that 
taxable  profit  will  be  available  against  which  the  deductible  temporary  differences,  and  the  carry  forward  of 
unused tax credits and unused tax losses can be utilised, except: 

•  When the deferred tax asset relating to the deductible temporary difference arises from the initial 

recognition of an asset or liability in a transaction that is not a business combination and, at the time of 
the transaction, affects neither the accounting profit nor taxable profit or loss 

• 

In respect of deductible temporary differences associated with investments in subsidiaries, associates 
and interests in joint arrangements, deferred tax assets are recognised only to the extent that it is 
probable that the temporary differences will reverse in the foreseeable future and taxable profit will be 
available against which the temporary differences can be utilised 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  53

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  54

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

6. 

INCOME TAX (CONTINUED) 

6.4  Tax losses (continued) 

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is 
no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be 
utilised.  Unrecognised  deferred  tax  assets  are  re-assessed  at  each  reporting  date  and  are  recognised  to  the 
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. 

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the 
asset  is  realised  or  the  liability  is  settled,  based  on  tax  rates  (and  tax  laws)  that  have  been  enacted  or 
substantively enacted at the reporting date. 

Income  taxes  relating  to  items  recognised  directly  in  equity  are  recognised  in  equity  and  not  in  the  income 
statement. 

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current 
tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity 
and the same taxation authority. 

Tax losses of $8.1 million (tax effective $2.454 million) carried forward from 30 June 2018, have been utilised 

7. 

DIVIDENDS 

Since year end, the Directors have recommended the payment of a fully franked dividend of 2.0 cents per fully 
paid ordinary share (30 June 2018: Nil). The aggregate amount of the proposed dividend is expected to be paid 
on 2 October 2019 out of current earnings at 30 June 2019, but not recognised as a liability at period end is 
$17.358 million 

The  final  dividend  recommended  after  30 June  2019  will  be  fully  franked  out of  franking  credits  balance at  the  
end of  the  financial  year.  The  franking account balance  at  the  end  of  the  financial  year  is  $36 million  (30 June 
2018: $19 million) 

6. 

INCOME TAX (CONTINUED) 

6.3  Deferred tax balances (continued) 

Movement in deferred tax balances                  1 July 2018 

Balance at  

Recognised in 

profit or loss 

$000 

$000 

Utilised to 

reduce tax 

liability 

$000 

Balance at 30 

June 19 

$000 

(2,262)  

16,292  

(1,389)  

(6,715)  

(125)  

-  

1,764  

7,565     

656  

131  

1,706  

(7,177)  

(1,464)  

2,454  

3,706  

-  

-  

-  

-  

-  

-  

(2,454)  

12     

(2,454)     

(1,606) 

16,423 

317 

(13,892) 

(1,589) 

- 

5,470 

5,123 

Inventories 

Provisions 

Property, plant & equipment 

Mine properties 

Exploration and evaluation expenditure 

Tax losses carried forward 

Other 

Net Deferred Tax Asset/(Liability) 

6.4  Tax losses 

against the current taxable income. 

Recognition and measurement 

Current income tax 

sheet date. 

Deferred tax 

Deferred  tax  assets  are  recognised  for  the  carry-forward  of  unused  tax  losses  and  unused  tax  credits  to  the 

extent  that  it  is  probable  that  taxable  profits  will  be  available  in  the  future  against  which  the  unused  tax 

losses/credits can be utilised. All available tax losses have been recognised at 30 June 2019. 

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be 

recovered from or paid to the taxation authorities based on the current period’s taxable income. The tax rates 

and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance 

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and 

liabilities and their carrying amounts for financial reporting purposes at the reporting date. 

Deferred tax liabilities are recognised for all taxable temporary differences, except: 

•  When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a 

transaction that is not a business combination and, at the time of the transaction, affects neither the 

accounting profit nor taxable profit or loss 

In respect of taxable temporary differences associated with investments in subsidiaries, associates and 

interests in joint arrangements, when the timing of the reversal of the temporary differences can be 

controlled and it is probable that the temporary differences will not reverse in the foreseeable future 

Deferred  tax  assets  are  recognised  for  all  deductible  temporary  differences,  the  carry  forward  of  unused  tax 

credits  and  any  unused  tax  losses.  Deferred  tax  assets  are  recognised  to  the  extent  that  it  is  probable  that 

taxable  profit  will  be  available  against  which  the  deductible  temporary  differences,  and  the  carry  forward  of 

unused tax credits and unused tax losses can be utilised, except: 

•  When the deferred tax asset relating to the deductible temporary difference arises from the initial 

recognition of an asset or liability in a transaction that is not a business combination and, at the time of 

the transaction, affects neither the accounting profit nor taxable profit or loss 

In respect of deductible temporary differences associated with investments in subsidiaries, associates 

and interests in joint arrangements, deferred tax assets are recognised only to the extent that it is 

probable that the temporary differences will reverse in the foreseeable future and taxable profit will be 

available against which the temporary differences can be utilised 

• 

• 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  53

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  54

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

Long Term Assets and Liabilities 
This section provides information that is relevant to understanding the composition and management of the 
Group's assets and liabilities. 

8. 

MINE PROPERTIES 

Mine properties at cost 
Accumulated depreciation and impairment 

Carrying value at beginning of year 
Addition from business combination 
Transfer from exploration and evaluation assets 
Development expenditure during the year 
Transfer from property, plant and equipment 
Amortisation for the year 

Recognition and Measurement 

2019 
$000 

167,342 
(79,594)    
87,748    

2019 
$000 

68,310 
- 
74 
50,047 
1,385 
(32,068)    
87,748    

2018 
$000 

119,181 
(50,872) 
68,309 

2018 
$000 

28,559 
37,129 
1,365 
22,063 
1,162 
(21,968) 
68,310 

The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to 
bringing the asset into operation, the initial estimate of the rehabilitation obligation, and, for qualifying assets 
(where relevant), borrowing costs. The purchase price or construction cost is the aggregate amount paid and the 
fair value of any other consideration given to acquire the asset. 

Mine properties also consist of the fair value attributable to mineral reserves and the portion of mineral resources 
considered to be probable of economic extraction at the time of an acquisition. When a mine construction project 
moves  into  the  production  phase,  the  capitalisation  of  certain  mine  construction  costs  ceases,  and  costs  are 
either  regarded  as  part  of  the  cost  of  inventory  or  expensed,  except  for  costs  which  qualify  for  capitalisation 
relating  to  mining  asset  additions,  improvements  or  new  developments,  underground  mine  development  or 
mineable reserve development. 

Depreciation/amortisation 

Accumulated mine development costs are depreciated/amortised on a unit-of-production basis over the 
economically recoverable reserves and the portion of mineral resources considered to be probable of economic 
extraction, except in the case of assets whose useful life is shorter than the life of the mine, in which case the 
straight-line method is applied. The unit of account for run of mines (ROM) costs is Gold Metal Equivalent 
units mined (measured in ounces), whereas the unit of account for post-ROM costs is Gold Metal Equivalent  
units processed (measured in ounces). Rights and concessions are depleted on the unit-of-production (UOP) 
basis over the economically recoverable reserves of the relevant area. The unit-of-production rate calculation for 
the depreciation/amortisation of mine development costs takes into account expenditures incurred to date, 
together with planned future mine development expenditure. 

The estimated fair value attributable to the mineral reserves and the portion of mineral resources considered to 
be probable of economic extraction at the time of the acquisition is amortised on a UOP basis whereby the 
denominator is the proven and probable reserves and the portion of resources expected to be extracted 
economically. The estimated fair value of the mineral resources that are not considered to be probable of 
economic extraction at the time of the acquisition is not subject to amortisation, until the resource becomes 
probable of economic extraction in the future and is recognised in exploration and evaluation assets. 

8. 

MINE PROPERTIES (CONTINUED) 

Impairment 

At each reporting date, the Company assesses whether there is any indication that an asset may be impaired. 

Indicators  reviewed  include,  but  are  not  limited  to,  the  operating  performance  of  the  Cash  Generating  Unit 

(“CGU”), future business plans, assumptions around future commodity prices, exchange rates, production rates 

and  production  costs.  Where  an  indicator  of  impairment  exists,  the  Company  makes  a  formal  estimate  of 

recoverable  amount.  Where  the  carrying  amount  of  an  asset  or  CGU  exceeds  its  recoverable  amount,  the 

carrying amount is reduced to the recoverable amount and the impairment loss recognised in the Statement of 

Profit or Loss. 

The  recoverable  amount  is  the  greater  of  fair  value  less  costs  to  sell  (FVLCD)  and  value  in  use  (VIU).  It  is 

determined for an individual asset, unless the asset's VIU cannot be estimated to be close to its FVLCD and it 

does not generate cash inflows that are largely independent of those from other assets or groups of assets, in 

which case, the recoverable amount is determined for the cash-generating unit to which the asset belongs. 

The Group considers each of it's mine sites to be a separate CGU. 

The  FVLCD  for  each  CGU  is  estimated  based  on  discounted  future  estimated  cash  flows  (expressed  in  real 

terms) expected to be generated from the continued use of the CGUs, using market-based commodity price and 

exchange  assumptions,  estimated  quantities  of  recoverable  minerals,  production  levels,  operating  costs  and 

capital requirements, including expansion projects, based on the  latest life of mine plans. These cash flows are 

discounted using a real post-tax discount rate that reflect current market assessments of the time value of money 

and the risks specific to the CGU. 

The determination of FVLCD for each CGU are considered to be Level 3 fair value measurements, as they are 

derived from valuation techniques that include inputs that are not based on observable market data. The Group 

considers the inputs and the valuation approach to be consistent with the approach taken by market participants. 

The impairment review conducted at 30 June 2019 concluded that there were no indicators for impairment. 

Accounting estimates and assumptions 

Units of production method of depreciation/amortisation 

The Company uses the unit-of-production basis where depreciating/amortising specific assets which results in a 

depreciation/amortisation charge proportional to the depletion of the anticipated remaining life of mine 

production. Each item’s economic life, which is assessed annually, has due regard to both its physical life 

limitations and to present assessments of economically recoverable reserves of the mine property at which it is 

located. These calculations require the use of estimates and assumptions. 

Impairment 

amount. 

required. 

The Company assesses each Cash-Generating Unit (GGU), at each reporting period to determine whether there 

is any indication of impairment or reversal. Where an indicator of impairment or reversal exists, a formal 

estimate  of  the  recoverable  amount  is  made,  which  is  deemed  as  being  the  higher  of  the  fair  value  costs  of 

disposal and value in use. These assessments require the use of estimates and assumptions such as discount 

rates,  exchange  rates,  commodity  prices,  gold  multiple  values,  future  operating  development  and  sustaining 

capital  requirements  and  operating  performance.  A  change  in  one  or  more  of  these  assumptions  used  to 

determine the fair value in use or fair value less costs of disposal could result in a change in a CGU's recoverable 

The  Group  has  considered  whether  past  impairment  losses  recorded  at  the  Hera  mine  should  be  reversed. 

Management's  assessment  included  consideration  of  Hera's  CGU's  grade  variability,  short  remaining  life, 

sensitivity to prices and risk of increased mine costs, and concluded a reversal of past impairment losses is not 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  55

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  56

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
  
 
  
 
  
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

Long Term Assets and Liabilities 

This section provides information that is relevant to understanding the composition and management of the 

Group's assets and liabilities. 

8. 

MINE PROPERTIES 

Mine properties at cost 

Accumulated depreciation and impairment 

Carrying value at beginning of year 

Addition from business combination 

Transfer from exploration and evaluation assets 

Development expenditure during the year 

Transfer from property, plant and equipment 

Amortisation for the year 

Recognition and Measurement 

2019 

$000 

167,342 

(79,594)    

87,748    

2019 

$000 

68,310 

- 

74 

50,047 

1,385 

(32,068)    

87,748    

2018 

$000 

119,181 

(50,872) 

68,309 

2018 

$000 

28,559 

37,129 

1,365 

22,063 

1,162 

(21,968) 

68,310 

The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to 

bringing the asset into operation, the initial estimate of the rehabilitation obligation, and, for qualifying assets 

(where relevant), borrowing costs. The purchase price or construction cost is the aggregate amount paid and the 

fair value of any other consideration given to acquire the asset. 

Mine properties also consist of the fair value attributable to mineral reserves and the portion of mineral resources 

considered to be probable of economic extraction at the time of an acquisition. When a mine construction project 

moves  into  the  production  phase,  the  capitalisation  of  certain  mine  construction  costs  ceases,  and  costs  are 

either  regarded  as  part  of  the  cost  of  inventory  or  expensed,  except  for  costs  which  qualify  for  capitalisation 

relating  to  mining  asset  additions,  improvements  or  new  developments,  underground  mine  development  or 

mineable reserve development. 

Depreciation/amortisation 

Accumulated mine development costs are depreciated/amortised on a unit-of-production basis over the 

economically recoverable reserves and the portion of mineral resources considered to be probable of economic 

extraction, except in the case of assets whose useful life is shorter than the life of the mine, in which case the 

straight-line method is applied. The unit of account for run of mines (ROM) costs is Gold Metal Equivalent 

units mined (measured in ounces), whereas the unit of account for post-ROM costs is Gold Metal Equivalent  

units processed (measured in ounces). Rights and concessions are depleted on the unit-of-production (UOP) 

basis over the economically recoverable reserves of the relevant area. The unit-of-production rate calculation for 

the depreciation/amortisation of mine development costs takes into account expenditures incurred to date, 

together with planned future mine development expenditure. 

The estimated fair value attributable to the mineral reserves and the portion of mineral resources considered to 

be probable of economic extraction at the time of the acquisition is amortised on a UOP basis whereby the 

denominator is the proven and probable reserves and the portion of resources expected to be extracted 

economically. The estimated fair value of the mineral resources that are not considered to be probable of 

economic extraction at the time of the acquisition is not subject to amortisation, until the resource becomes 

probable of economic extraction in the future and is recognised in exploration and evaluation assets. 

8. 

MINE PROPERTIES (CONTINUED) 

Impairment 

At each reporting date, the Company assesses whether there is any indication that an asset may be impaired. 
Indicators  reviewed  include,  but  are  not  limited  to,  the  operating  performance  of  the  Cash  Generating  Unit 
(“CGU”), future business plans, assumptions around future commodity prices, exchange rates, production rates 
and  production  costs.  Where  an  indicator  of  impairment  exists,  the  Company  makes  a  formal  estimate  of 
recoverable  amount.  Where  the  carrying  amount  of  an  asset  or  CGU  exceeds  its  recoverable  amount,  the 
carrying amount is reduced to the recoverable amount and the impairment loss recognised in the Statement of 
Profit or Loss. 

The  recoverable  amount  is  the  greater  of  fair  value  less  costs  to  sell  (FVLCD)  and  value  in  use  (VIU).  It  is 
determined for an individual asset, unless the asset's VIU cannot be estimated to be close to its FVLCD and it 
does not generate cash inflows that are largely independent of those from other assets or groups of assets, in 
which case, the recoverable amount is determined for the cash-generating unit to which the asset belongs. 

The Group considers each of it's mine sites to be a separate CGU. 

The  FVLCD  for  each  CGU  is  estimated  based  on  discounted  future  estimated  cash  flows  (expressed  in  real 
terms) expected to be generated from the continued use of the CGUs, using market-based commodity price and 
exchange  assumptions,  estimated  quantities  of  recoverable  minerals,  production  levels,  operating  costs  and 
capital requirements, including expansion projects, based on the  latest life of mine plans. These cash flows are 
discounted using a real post-tax discount rate that reflect current market assessments of the time value of money 
and the risks specific to the CGU. 

The determination of FVLCD for each CGU are considered to be Level 3 fair value measurements, as they are 
derived from valuation techniques that include inputs that are not based on observable market data. The Group 
considers the inputs and the valuation approach to be consistent with the approach taken by market participants. 

The impairment review conducted at 30 June 2019 concluded that there were no indicators for impairment. 

Accounting estimates and assumptions 

Units of production method of depreciation/amortisation 

The Company uses the unit-of-production basis where depreciating/amortising specific assets which results in a 
depreciation/amortisation charge proportional to the depletion of the anticipated remaining life of mine 
production. Each item’s economic life, which is assessed annually, has due regard to both its physical life 
limitations and to present assessments of economically recoverable reserves of the mine property at which it is 
located. These calculations require the use of estimates and assumptions. 

Impairment 

The Company assesses each Cash-Generating Unit (GGU), at each reporting period to determine whether there 
is any indication of impairment or reversal. Where an indicator of impairment or reversal exists, a formal 
estimate  of  the  recoverable  amount  is  made,  which  is  deemed  as  being  the  higher  of  the  fair  value  costs  of 
disposal and value in use. These assessments require the use of estimates and assumptions such as discount 
rates,  exchange  rates,  commodity  prices,  gold  multiple  values,  future  operating  development  and  sustaining 
capital  requirements  and  operating  performance.  A  change  in  one  or  more  of  these  assumptions  used  to 
determine the fair value in use or fair value less costs of disposal could result in a change in a CGU's recoverable 
amount. 

The  Group  has  considered  whether  past  impairment  losses  recorded  at  the  Hera  mine  should  be  reversed. 
Management's  assessment  included  consideration  of  Hera's  CGU's  grade  variability,  short  remaining  life, 
sensitivity to prices and risk of increased mine costs, and concluded a reversal of past impairment losses is not 
required. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  55

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  56

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
  
 
  
 
  
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

9. 

PROPERTY, PLANT AND EQUIPMENT 

10.  EXPLORATION AND EVALUATION ASSETS  (CONTINUED) 

Plant and equipment at cost 
Property at cost 
Accumulated depreciation 

Movement in property, plant & equipment 

Carrying value at the beginning of the year 
Additions acquired from business combination 

Additions/expenditure during the year 
Assets scrapped/written off 
Disposals of assets 
Reclassifications 
Depreciation for the year 

Closing balance 

Recognition and Measurement 

2019 
$000 

137,645 
764 
(53,058)    
85,351    

91,504 
- 
23,325 
(2,342) 
(5,170) 
(2,062) 
(19,904)    
85,351    

2018 
$000 

128,670 
764 
(37,931) 
91,503 

44,796 
55,611 
8,076 
(1,132) 
(44) 
(1,163) 
(14,640) 
91,504 

4.2 

Items of property, plant and equipment and producing mines are stated at cost, less accumulated depreciation, 
amortisation  and  accumulated  impairment  losses.The  initial  cost  of  an  asset  comprises  its  purchase  price  or 
construction  cost,  any  costs  directly  attributable  to  bringing  the  asset  into  operation,  and,  for  qualifying  assets 
(where relevant), borrowing costs. The purchase price or construction cost is the aggregate amount paid and the 
fair value of any other consideration given to acquire the asset. The capitalised value of a finance lease is also 
included in property, plant and equipment. 

Derecognition 

Items  of  property,  plant  and  equipment  are  derecognised  upon  disposal  or  when  no  further  future  economic 
benefits are expected from its use or disposal. Any gain or loss from derecognising the asset is included in the 
statement of profit or loss in the period the item is derecognised. 

Depreciation 

Depreciation  of  plant  and  equipment  is  calculated  using  either  the  straight-line  basis  or  units  of  production 
method to allocate their cost, net of residual values, over their estimated useful lives. The rates for the straight 
line method vary between 10% and 33% per annum. Land is not depreciated. 

Refer to note 8 for further details regarding accounting policies and significant estimates and assumptions. 

10.  EXPLORATION AND EVALUATION ASSETS 

At cost 
Accumulated write offs 
Disposal of assets 

2019 
$000 
33,288 
(27,410) 
- 
5,878    

2018 
$000 
25,298 
(24,961) 
(48) 
289 

2019 

$000 

289 

7,459 

(2,473) 

- 

- 

603    

5,878    

2018 

$000 

1,581 

800 

(679) 

(1,365) 

(48) 

- 

289 

Opening balance 

Expenditure during the year 

Expenditure written off during the year 

Exploration capital transferred to mine development 

Disposal of assets (i) 

Reclassification 

(i) 

Security deposits on EL 6699 and EL 6258 relinquished as a result of the sale of Stannum Pty Ltd. 

Recognition and measurement 

Expenditure on acquisition, exploration and evaluation relating to an area of interest is carried forward where 

rights to tenure of the area of interest are current and; 

• 

• 

It is expected that expenditure will be recouped through successful development and exploitation of the 

area of interest or alternatively by its sale and/or; 

Exploration and evaluation activities are continuing in an area of interest but at balance date have not yet 

reached a stage which permits a reasonable assessment of the existence or otherwise of 

economically recoverable reserves. 

The recoverability of the carrying amount of the deferred exploration and evaluation expenditure is dependent on 

successful development and commercial exploitation, or alternatively the sale, of the respective areas of interest. 

If facts and circumstances suggest that the carrying amount of any recognised exploration and evaluation assets 

may be impaired, the entity must perform impairment tests on those assets in accordance with AASB 

136 ‘Impairment of Assets’. Impairment of exploration and evaluation assets is to be assessed at a cash 

generating unit or group of cash generating units level provided this is no larger than an area of interest. Any 

impairment loss is to be recognised as an expense in accordance with AASB 136. Accumulated costs in relation 

to an abandoned area are written off to the income statement in the period in which the decision to abandon 

An impairment charge of $2.5 million was recognised in 2019 (2018: $0.7 million). 

When the technical feasibility and commercial viability of extracting a mineral resource have been  demonstrated 

then any capitalised exploration and evaluation expenditure is reclassified as capitalised ‘Mine properties under 

construction’.  Prior  to  reclassification,  capitalised  exploration  and  evaluation  expenditure  is  assessed  for 

the area is made. 

Mines under construction 

impairment. 

Producing mines 

‘Mine Properties’. 

Upon completion of the mine construction phase, assets are transferred into ‘Property, Plant and Equipment’ or 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  57

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  58

 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
  
  
 
  
Plant and equipment at cost 

Property at cost 

Accumulated depreciation 

Movement in property, plant & equipment 

Carrying value at the beginning of the year 

Additions acquired from business combination 

Additions/expenditure during the year 

Assets scrapped/written off 

Disposals of assets 

Reclassifications 

Depreciation for the year 

Closing balance 

Recognition and Measurement 

2019 

$000 

137,645 

764 

(53,058)    

85,351    

91,504 

- 

23,325 

(2,342) 

(5,170) 

(2,062) 

(19,904)    

85,351    

2018 

$000 

128,670 

764 

(37,931) 

91,503 

44,796 

55,611 

8,076 

(1,132) 

(44) 

(1,163) 

(14,640) 

91,504 

4.2 

Items of property, plant and equipment and producing mines are stated at cost, less accumulated depreciation, 

amortisation  and  accumulated  impairment  losses.The  initial  cost  of  an  asset  comprises  its  purchase  price  or 

construction  cost,  any  costs  directly  attributable  to  bringing  the  asset  into  operation,  and,  for  qualifying  assets 

(where relevant), borrowing costs. The purchase price or construction cost is the aggregate amount paid and the 

fair value of any other consideration given to acquire the asset. The capitalised value of a finance lease is also 

included in property, plant and equipment. 

Derecognition 

Items  of  property,  plant  and  equipment  are  derecognised  upon  disposal  or  when  no  further  future  economic 

benefits are expected from its use or disposal. Any gain or loss from derecognising the asset is included in the 

statement of profit or loss in the period the item is derecognised. 

Depreciation 

Depreciation  of  plant  and  equipment  is  calculated  using  either  the  straight-line  basis  or  units  of  production 

method to allocate their cost, net of residual values, over their estimated useful lives. The rates for the straight 

line method vary between 10% and 33% per annum. Land is not depreciated. 

Refer to note 8 for further details regarding accounting policies and significant estimates and assumptions. 

At cost 

Accumulated write offs 

Disposal of assets 

2019 

$000 

33,288 

(27,410) 

- 

5,878    

2018 

$000 

25,298 

(24,961) 

(48) 

289 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

9. 

PROPERTY, PLANT AND EQUIPMENT 

10.  EXPLORATION AND EVALUATION ASSETS  (CONTINUED) 

Opening balance 
Expenditure during the year 
Expenditure written off during the year 
Exploration capital transferred to mine development 
Disposal of assets (i) 
Reclassification 

2019 
$000 

289 
7,459 
(2,473) 
- 
- 
603    
5,878    

2018 
$000 

1,581 
800 
(679) 
(1,365) 
(48) 
- 
289 

(i) 

Security deposits on EL 6699 and EL 6258 relinquished as a result of the sale of Stannum Pty Ltd. 

Recognition and measurement 

Expenditure on acquisition, exploration and evaluation relating to an area of interest is carried forward where 
rights to tenure of the area of interest are current and; 

• 

• 

It is expected that expenditure will be recouped through successful development and exploitation of the 
area of interest or alternatively by its sale and/or; 
Exploration and evaluation activities are continuing in an area of interest but at balance date have not yet 
reached a stage which permits a reasonable assessment of the existence or otherwise of 
economically recoverable reserves. 

The recoverability of the carrying amount of the deferred exploration and evaluation expenditure is dependent on 
successful development and commercial exploitation, or alternatively the sale, of the respective areas of interest. 

If facts and circumstances suggest that the carrying amount of any recognised exploration and evaluation assets 
may be impaired, the entity must perform impairment tests on those assets in accordance with AASB 
136 ‘Impairment of Assets’. Impairment of exploration and evaluation assets is to be assessed at a cash 
generating unit or group of cash generating units level provided this is no larger than an area of interest. Any 
impairment loss is to be recognised as an expense in accordance with AASB 136. Accumulated costs in relation 
to an abandoned area are written off to the income statement in the period in which the decision to abandon 
the area is made. 

An impairment charge of $2.5 million was recognised in 2019 (2018: $0.7 million). 

Mines under construction 

When the technical feasibility and commercial viability of extracting a mineral resource have been  demonstrated 
then any capitalised exploration and evaluation expenditure is reclassified as capitalised ‘Mine properties under 
construction’.  Prior  to  reclassification,  capitalised  exploration  and  evaluation  expenditure  is  assessed  for 
impairment. 

10.  EXPLORATION AND EVALUATION ASSETS 

Producing mines 

Upon completion of the mine construction phase, assets are transferred into ‘Property, Plant and Equipment’ or 
‘Mine Properties’. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  57

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  58

 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
  
  
 
  
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

Working Capital and other Financial Assets/Liabilities 
This section provides information on the Group's capital and financial management activities. 

11.  TRADE AND OTHER RECEIVABLES 

Trade debtors 
Other receivables 
Closing balance 

Recognition and measurement 

2019 
$000 

1,445 
5,840    
7,285    

2018 
$000 

3,880 
1,948 
5,828 

All  of  the  above  are  non-interest  bearing  and  generally  receivable  on  30-90  day  terms.  At  balance  date,  no 
material amount of trade receivables were past due or impaired. 

Trade receivables comprising base metal concentrates and gold bullion awaiting settlement are initially recorded 
at  the  fair  value  of  contracted  sale  proceeds  expected  to  be  received  only  when  there  has  been  a  passing  of 
control  to  the  customer.  Collectability  of  debtors  is  reviewed  in  line  with  a  forward-looking  expected  credit  loss 
(ECL) approach. The Group has adopted AASB 9’s simplified approach and calculates ECL’s based on lifetime 
expected  credit losses,  and  takes  into  consideration  any  historical credit  loss  experience,  adjusted  for  forward-
looking factors specific to the debtors and the economic environment. 

Financial assets at amortised cost are subsequently measured using the effective interest rate (EIR) method and 
are subject to impairment. The Group’s financial assets at amortised cost include trade receivables (not subject  
to provisional pricing) and other receivables. 

Trade  receivables  (subject  to  provisional  pricing)  are  exposed  to  future  commodity  price  movements  over  the 
quotational period (QP) and are measured at fair value up until the date of settlement. Fair value is the price that 
would  be  received  to  sell  an  asset  or  paid  to  transfer  a  liability  in  an  orderly  transaction  between  market 
participants  at  the  measurement  date.  These  trade  receivables  are  initially  measured  at  the  amount  which  the 
Group expects to be entitled, being the estimate of the price expected to be received at the end of the QP. The 
QPs can range between one and three months post-shipment, and final payment is due within 30 days from the 
end of the QP. 

12. 

INVENTORIES 

Stores inventory (materials on hand) 
Ore stockpiles 
Metal in circuit 
Finished concentrate 
Finished gold dore 
Total current inventory 

Recognition and measurement 

2019 
$000 

6,491 
4,599 
3,907 
4,063 
4,256    
23,316    

2018 
$000 

7,867 
2,133 
2,011 
4,831 
1,503 
18,345 

Inventory is held at lower of cost or net realisable value. Adjustments to inventory are recognised through cost of 
sales. 

Gold bullion, metal in concentrate, metal in circuit and ore stockpiles are physically measured or estimated and 
valued at the lower of cost or net realisable value. Net realisable value is the estimated future sales price of 
the product the entity expects to realise when the product is processed and sold, less estimated costs to 
complete production and bring the product to sale. Where the time value of money is material, these future 
prices and costs to complete are discounted. Until mine properties are in production, any differences in cost and 
net realisable value are capitalised to the respective asset in development. 

12. 

INVENTORIES (CONTINUED) 

If the ore stockpile is not expected to be processed in 12 months after the reporting date, it is included in non-

current assets and the net realisable value is calculated on a discounted cash flow basis. 

Materials  and  supplies  on  hand  are  valued  at  the  lower  of  cost  or  net  realisable  value.  Any  provision  for 

obsolescence is determined by reference to specific items of stock. A regular review is undertaken to determine 

the extent of any provision for obsolescence. 

Cost  is  determined  by  using  the  weighted-average  method  and  comprises  direct  purchase  costs  and  an 

appropriate  portion  of  fixed  and  variable  overhead  costs,  including  depreciation  and  amortisation,  incurred  in 

converting  materials  into  finished  goods,  based  on  the  normal  production  capacity.  The  cost  of  production  is 

allocated to joint products using a ratio of spot prices by volume at each month end. Separately identifiable costs 

of conversion of each metal are specifically allocated. 

13.  FINANCIAL  ASSETS/(LIABILITIES) 

Current 

Gold Forwards - Financial Liability 

Gold Forwards - Financial Asset 

Non-current 

Investments (i) 

Term deposits 

Movement in carrying value 

Opening balance 

Investment in Big Sky Metals 

Investment in Sky Metals Limited (i) 

Sale of investments (i) 

Closing balance 

2019 

$000 

(12,041) 

- 

(12,041)    

2019 

$000 

700 

- 

700    

2019 

$000 

80 

- 

700 

(80)    

700    

2018 

$000 

- 

1,650 

1,650 

2018 

$000 

80 

4,742 

4,822 

2018 

$000 

115 

80 

- 

(115) 

80 

(i) On 20 June 2019, the Company’s equity investment, Big Sky Metals (‘BSM’), was acquired by a listed entity 

subsequently renamed Sky Metals Limited (‘Sky’). The transaction resulted in the Company being allotted 17.5M 

shares  in  Sky,  valued at  $0.7  million  based  on  the  IPO share  price,  and  representing  approximately  7%  of the 

equity in the company. At 30 June 2019 there is no material change in the fair value of the investment in Sky. The 

company was also allotted 5 million options in Sky at $0.08. 

For accounting purposes, the transactions trigger a disposal of AMI’s investment in BSM, and recognition of the 

initial investment in Sky. The net impact on the profit and loss for the year ending 30 June 2019 is $0.62 million, 

being  the  difference  between  the  non-cash  consideration  received  on  disposal  of  BSM  (representing  the  fair 

value of the investment in Sky), and the recognised value of the investment in BSM. 

These shares are classified as a non-current asset in the Company’s balance sheet as they are restricted for an 

escrow period of two years from the date of listing (1 July 2019). 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  59

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  60

 
 
 
 
 
  
 
 
 
  
  
 
  
 
  
 
  
  
 
  
 
  
 
 
 
  
  
 
 
 
 
 
 
 
  
 
  
  
 
 
 
 
 
 
 
  
 
  
  
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

Working Capital and other Financial Assets/Liabilities 

This section provides information on the Group's capital and financial management activities. 

11.  TRADE AND OTHER RECEIVABLES 

Trade debtors 

Other receivables 

Closing balance 

Recognition and measurement 

2019 

$000 

1,445 

5,840    

7,285    

2018 

$000 

3,880 

1,948 

5,828 

All  of  the  above  are  non-interest  bearing  and  generally  receivable  on  30-90  day  terms.  At  balance  date,  no 

material amount of trade receivables were past due or impaired. 

Trade receivables comprising base metal concentrates and gold bullion awaiting settlement are initially recorded 

at  the  fair  value  of  contracted  sale  proceeds  expected  to  be  received  only  when  there  has  been  a  passing  of 

control  to  the  customer.  Collectability  of  debtors  is  reviewed  in  line  with  a  forward-looking  expected  credit  loss 

(ECL) approach. The Group has adopted AASB 9’s simplified approach and calculates ECL’s based on lifetime 

expected  credit losses,  and  takes  into  consideration  any  historical credit  loss  experience,  adjusted  for  forward-

looking factors specific to the debtors and the economic environment. 

Financial assets at amortised cost are subsequently measured using the effective interest rate (EIR) method and 

are subject to impairment. The Group’s financial assets at amortised cost include trade receivables (not subject  

to provisional pricing) and other receivables. 

Trade  receivables  (subject  to  provisional  pricing)  are  exposed  to  future  commodity  price  movements  over  the 

quotational period (QP) and are measured at fair value up until the date of settlement. Fair value is the price that 

would  be  received  to  sell  an  asset  or  paid  to  transfer  a  liability  in  an  orderly  transaction  between  market 

participants  at  the  measurement  date.  These  trade  receivables  are  initially  measured  at  the  amount  which  the 

Group expects to be entitled, being the estimate of the price expected to be received at the end of the QP. The 

QPs can range between one and three months post-shipment, and final payment is due within 30 days from the 

end of the QP. 

12. 

INVENTORIES 

Stores inventory (materials on hand) 

Ore stockpiles 

Metal in circuit 

Finished concentrate 

Finished gold dore 

Total current inventory 

Recognition and measurement 

2019 

$000 

6,491 

4,599 

3,907 

4,063 

4,256    

23,316    

2018 

$000 

7,867 

2,133 

2,011 

4,831 

1,503 

18,345 

Inventory is held at lower of cost or net realisable value. Adjustments to inventory are recognised through cost of 

sales. 

Gold bullion, metal in concentrate, metal in circuit and ore stockpiles are physically measured or estimated and 

valued at the lower of cost or net realisable value. Net realisable value is the estimated future sales price of 

the product the entity expects to realise when the product is processed and sold, less estimated costs to 

complete production and bring the product to sale. Where the time value of money is material, these future 

prices and costs to complete are discounted. Until mine properties are in production, any differences in cost and 

net realisable value are capitalised to the respective asset in development. 

12. 

INVENTORIES (CONTINUED) 

If the ore stockpile is not expected to be processed in 12 months after the reporting date, it is included in non-
current assets and the net realisable value is calculated on a discounted cash flow basis. 

Materials  and  supplies  on  hand  are  valued  at  the  lower  of  cost  or  net  realisable  value.  Any  provision  for 
obsolescence is determined by reference to specific items of stock. A regular review is undertaken to determine 
the extent of any provision for obsolescence. 

Cost  is  determined  by  using  the  weighted-average  method  and  comprises  direct  purchase  costs  and  an 
appropriate  portion  of  fixed  and  variable  overhead  costs,  including  depreciation  and  amortisation,  incurred  in 
converting  materials  into  finished  goods,  based  on  the  normal  production  capacity.  The  cost  of  production  is 
allocated to joint products using a ratio of spot prices by volume at each month end. Separately identifiable costs 
of conversion of each metal are specifically allocated. 

13.  FINANCIAL  ASSETS/(LIABILITIES) 

Current 
Gold Forwards - Financial Liability 
Gold Forwards - Financial Asset 

Non-current 
Investments (i) 
Term deposits 

Movement in carrying value 
Opening balance 
Investment in Big Sky Metals 
Investment in Sky Metals Limited (i) 
Sale of investments (i) 
Closing balance 

2019 
$000 

(12,041) 
- 

(12,041)    

2019 
$000 

700 
- 
700    

2019 
$000 

80 
- 
700 
(80)    
700    

2018 
$000 

- 
1,650 
1,650 

2018 
$000 

80 
4,742 
4,822 

2018 
$000 

115 
80 
- 
(115) 
80 

(i) On 20 June 2019, the Company’s equity investment, Big Sky Metals (‘BSM’), was acquired by a listed entity 
subsequently renamed Sky Metals Limited (‘Sky’). The transaction resulted in the Company being allotted 17.5M 
shares  in  Sky,  valued at  $0.7  million  based  on  the  IPO share  price,  and  representing  approximately  7%  of the 
equity in the company. At 30 June 2019 there is no material change in the fair value of the investment in Sky. The 
company was also allotted 5 million options in Sky at $0.08. 

For accounting purposes, the transactions trigger a disposal of AMI’s investment in BSM, and recognition of the 
initial investment in Sky. The net impact on the profit and loss for the year ending 30 June 2019 is $0.62 million, 
being  the  difference  between  the  non-cash  consideration  received  on  disposal  of  BSM  (representing  the  fair 
value of the investment in Sky), and the recognised value of the investment in BSM. 

These shares are classified as a non-current asset in the Company’s balance sheet as they are restricted for an 
escrow period of two years from the date of listing (1 July 2019). 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  59

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  60

 
 
 
 
 
  
 
 
 
  
  
 
  
 
  
 
  
  
 
  
 
  
 
 
 
  
  
 
 
 
 
 
 
 
  
 
  
  
 
 
 
 
 
 
 
  
 
  
  
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

13.  FINANCIAL ASSETS/(LIABILITIES)  (CONTINUED) 

Recognition and measurement 

Financial assets and liabilities at fair value through profit or loss (FVPL) comprise derivative instruments and 
unquoted equity instruments. 

Investments  are  classified  as  financial  assets  and  comprise  of  unquoted  equity  instruments  which  the  Group 
intends to hold for the foreseeable future. The Group elects to measure investments at either fair value through 
the profit and loss or fair value through other comprehensive income on an investment by investment basis. 

14.  TRADE AND OTHER PAYABLES 

Trade payables and accruals 
Other payables 

Recognition and measurement 

2019 
$000 

28,396 
1,393    
29,789    

2018 
$000 

24,467 
5,224 
29,691 

Trade payables and other payables represent liabilities for goods and services provided to the Company prior to 
the  end  of  the  financial  year  that  are  unpaid  and  arise  when  the  Company  becomes  obliged  to  make  future 
payments in respect of the purchase of these goods and services. 

Trade payables are unsecured, non-interest bearing and generally payable on 7 to 30 day terms. Due to the short 
term nature of these payables their carrying value is assumed to approximate their fair value. 

This section discusses the Group's exposure to various risks and provides information on the Group's equity and 

Debt, Equity and Risk Management 

debt. 

15.  CONTRIBUTED EQUITY 

15.1  Movements in ordinary shares on issue 

2019 

Opening balance 

Issue of shares 

Issue of shares 

Closing balance 

2018 

Opening balance 

Issue of shares 

Issue of shares 

Issue of shares 

Cost of share issue 

Closing balance 

Date 

Number 

855,879,333 

10,000,000 

2,000,000 

(i) 

(ii) 

18-Sep-18 

30-Oct-18  

30-Jun-19     867,879,333 

185,878 

(iii) 

(iv) 

(v) 

Date 

Number 

01-Jul-17  430,858,188  

27-Nov-17  104,000,000  

12-Jan-18 

58,077,506  

15-Jan-18  262,943,639  

-  

30-Jun-18     855,879,333     

$000 

185,753 

125 

- 

$000 

100,465 

21,840 

12,196 

55,218 

(3,967) 

185,752 

(i) 

Exercise of 10,000,000 options, exercisable at 1.25c/share by Pacific Road Management Pty Ltd. There 

(ii) 

(iii) 

(iv) 

(v) 

are no remaining options on issue. 

Vesting of employee Performance Rights (Class 16A) 

Issue relates to Tranche 1 of the Share Placement agreement dated 27 November 2017 

Issue relates to Tranche 2 of the Share placement agreement (27 Nov 17) and is for the issue of shares 

to Glencore (18.2 million shares) and SPP issues (40 million shares) 

Issue relates to Tranche 2 of the Share Placement agreement (27 Nov 17) and is for the issue of shares 

to Pacific Road (168.7 million shares) and institutional placements (94.2 million shares). 

Recognition and measurement 

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or 

options are shown directly in equity as a deduction, net of tax, from proceeds. 

Ordinary shares which have no par value have the right to receive dividends as declared and, in the event of a 

winding up of the Parent, to participate in the proceeds from sale of all surplus assets in proportion to the number 

of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or proxy, 

The entity does not have a defined share buy-back plan or a dividend reinvestment plan. No dividends were paid 

at a meeting of the Company. 

15.2  Capital management 

in the year ending 30 June 2019. 

16.  RESERVES 

Share based payment reserve 

Opening balance 

Share based payment expense 

Closing balance 

2019 

$000 

6,658 

2,397    

9,055    

2018 

$000 

4,231 

2,427 

6,658 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  61

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  62

 
 
 
 
 
 
  
 
  
  
  
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

13.  FINANCIAL ASSETS/(LIABILITIES)  (CONTINUED) 

Recognition and measurement 

unquoted equity instruments. 

Financial assets and liabilities at fair value through profit or loss (FVPL) comprise derivative instruments and 

Debt, Equity and Risk Management 
This section discusses the Group's exposure to various risks and provides information on the Group's equity and 
debt. 

Investments  are  classified  as  financial  assets  and  comprise  of  unquoted  equity  instruments  which  the  Group 

intends to hold for the foreseeable future. The Group elects to measure investments at either fair value through 

the profit and loss or fair value through other comprehensive income on an investment by investment basis. 

15.  CONTRIBUTED EQUITY 

15.1  Movements in ordinary shares on issue 

14.  TRADE AND OTHER PAYABLES 

Trade payables and accruals 

Other payables 

Recognition and measurement 

2019 

$000 

28,396 

1,393    

29,789    

2018 

$000 

24,467 

5,224 

29,691 

Trade payables and other payables represent liabilities for goods and services provided to the Company prior to 

the  end  of  the  financial  year  that  are  unpaid  and  arise  when  the  Company  becomes  obliged  to  make  future 

payments in respect of the purchase of these goods and services. 

Trade payables are unsecured, non-interest bearing and generally payable on 7 to 30 day terms. Due to the short 

term nature of these payables their carrying value is assumed to approximate their fair value. 

2019 

Opening balance 
Issue of shares 
Issue of shares 
Closing balance 

2018 
Opening balance 
Issue of shares 
Issue of shares 
Issue of shares 
Cost of share issue 

Closing balance 

(i) 
(ii) 

(iii) 
(iv) 
(v) 

Date 

Number 
855,879,333 
10,000,000 
18-Sep-18 
2,000,000 
30-Oct-18  
30-Jun-19     867,879,333 

Date 

Number 
01-Jul-17  430,858,188  
27-Nov-17  104,000,000  
58,077,506  
12-Jan-18 
15-Jan-18  262,943,639  
-  

30-Jun-18     855,879,333     

$000 
185,753 
125 
- 
185,878 

$000 
100,465 
21,840 
12,196 
55,218 
(3,967) 
185,752 

(i) 

(ii) 
(iii) 
(iv) 

(v) 

Exercise of 10,000,000 options, exercisable at 1.25c/share by Pacific Road Management Pty Ltd. There 
are no remaining options on issue. 
Vesting of employee Performance Rights (Class 16A) 
Issue relates to Tranche 1 of the Share Placement agreement dated 27 November 2017 
Issue relates to Tranche 2 of the Share placement agreement (27 Nov 17) and is for the issue of shares 
to Glencore (18.2 million shares) and SPP issues (40 million shares) 
Issue relates to Tranche 2 of the Share Placement agreement (27 Nov 17) and is for the issue of shares 
to Pacific Road (168.7 million shares) and institutional placements (94.2 million shares). 

Recognition and measurement 

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or 
options are shown directly in equity as a deduction, net of tax, from proceeds. 

Ordinary shares which have no par value have the right to receive dividends as declared and, in the event of a 
winding up of the Parent, to participate in the proceeds from sale of all surplus assets in proportion to the number 
of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or proxy, 
at a meeting of the Company. 

15.2  Capital management 

The entity does not have a defined share buy-back plan or a dividend reinvestment plan. No dividends were paid 
in the year ending 30 June 2019. 

16.  RESERVES 

Share based payment reserve 

Opening balance 
Share based payment expense 
Closing balance 

2019 
$000 

6,658 
2,397    
9,055    

2018 
$000 

4,231 
2,427 
6,658 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  61

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  62

 
 
 
 
 
 
  
 
  
  
  
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

16.  RESERVES (CONTINUED) 

16.1  Movement in reserves 

The  Company  provides  benefits  to  employees  in  the  form  of  share-based  payment  transactions,  whereby 
employees render services in exchange for shares or rights over shares ("equity-settled transactions"). Refer to 
the Remuneration Report for further information. 

17.  RETAINED   EARNINGS/(LOSSES) 

Movements in retained earnings/(losses) were as follows: 

Retained earnings/(losses) 
Profit/(loss) 
Closing balance 

2019 
$000 

(9,371) 
36,017    
26,646    

2018 
$000 

(108,476) 
99,106 
(9,370) 

18.  FINANCIAL RISK MANAGEMENT OBJECTIVES AND  POLICIES 

The Group’s management of financial risk aims to ensure cash flows are sufficient to: 

• 

• 

Withstand significant changes in cash flow at risk scenarios and still meet all financial commitments as and 
when they fall due; and 

Maintain the capacity to fund project development, exploration and acquisition strategies. 

The Group continually monitors and tests its forecast financial position against these criteria. The key financial 
risk exposures are liquidity risk, credit risk, and market risk (including foreign exchange risk, commodity price 
risk and interest rate risk). 

The Directors are responsible for monitoring and managing financial risk exposures of the Group. The Group’s 
financial instruments consist mainly of borrowings, deposits with banks, derivatives, payables and receivables. 

The Group holds the following financial instruments: 

Financial assets 
Cash at bank 
Term deposits 
Receivables 
Derivative financial instruments 
Investments 
Balance at year end 

Financial liabilities 
Trade and other payables 
Borrowings (i) 
Deferred acquisition royalty 
Derivative financial instruments 
Balance at year end 

2019 
$000 

104,302 
- 
7,285 
- 
700    
112,287    

29,789 
- 
5,534 
12,041    
47,364    

2018 
$000 

66,925 
4,742 
5,829 
1,650 
80 
79,226 

29,693 
878 
7,860 
- 
38,431 

(i) Prior year borrowings consisted of finance leases ($0.285 million) and 
which have been settled in the current year. 

Insurance funding 

($0.593 million) 

Financial assets/liabilities 

The  Group  enters  into  derivative  financial  instruments  (commodity  contracts)  with  financial  institutions  with 
investment-grade  credit  ratings.  It  measures  financial  instruments,  such  as  derivatives  and  provisionally  priced 
trade receivables, at fair value at each reporting date. 

18.  FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) 

The Group’s principal financial assets, other than derivatives and provisionally priced trade receivables, comprise 

other receivables, cash and short-term deposits that arise directly from its operations, as well as investments. 

The Group’s principal financial liabilities other than derivatives, comprise trade and other payables, and deferred 

acquisition royalty. 

Accounting policies in respect of these financial assets and liabilities are documented within the relevant notes to 

the  financial  statements,  being  receivables  (Note  11),  derivatives  and  investments  (Note  13),  trade  and  other 

payables (Note 14), and deferred acquisition costs (Note 20). 

Offsetting of financial instruments 

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of 

financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an 

intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously. 

The Group has entered into the following derivative commodity contracts for the forward sale of gold that have 

18.1  Derivatives 

not been designated as hedges: 

Gold forwards contracts at 30 June - oz 

Gold forward contracts at fair value - $000's 

2019 

56,000  

12,041  

2018 

76,000 

1,650 

The  resulting  fair  value  financial  liability  of  $12.041  million  (2018:  financial  asset  of  $1.650  million)  of  these 

contracts has been recognised in the statement of financial position as  financial assets/(liabilities). The delivery 

dates differ per contract and range from 25 July 2019 to 30 June 2020. 

The change in the fair value of these contracts ($12.041 million) has been recognised in the statement of profit of 

loss as unrealised loss on commodities (2018: unrealised gain on commodities $1.650 million). 

18.2  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. At 30 June 2019, the Company had no debt (2018: nil) and 

held $104.3 million (2018: $66.9 million) of available cash. 

18.3  Maturities of financial liabilities 

The table below shows the Group’s financial liabilities at 30 June 2019 in their relevant contractual maturity 

groupings. There is no debt. Trade and other payables are expected to be settled within 12 months. 

Maturity profile of financial liabilities 

2019 

Equipment loans 

Insurance loan 

Derivative financial 

instruments 

Total 

1-2 Yrs 

2-3 Yrs 

3-4 Yrs 

>4 Yrs  of liability 

$000 

$000 

$000 

$000 

$000 

- 

- 

- 

- 

- 

- 

- 

- 

- 

1,496    

1,252    

386    

- 

- 

- 

- 

- 

Contracted 

Carrying 

cash flow 

value of 

liability 

$000 

- 

- 

- 

- 

12,041 

17,642    

12,041 

17,575 

<1 Yr 

$000 

- 

- 

12,041 

14,508    

Deferred acquisition costs 

2,467 

1,496 

1,252 

386 

5,601 

5,534 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  63

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  64

 
 
 
 
  
  
  
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
  
  
 
 
 
 
 
  
 
  
  
 
  
 
  
  
 
 
  
  
 
 
 
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

The  Company  provides  benefits  to  employees  in  the  form  of  share-based  payment  transactions,  whereby 

employees render services in exchange for shares or rights over shares ("equity-settled transactions"). Refer to 

16.  RESERVES (CONTINUED) 

16.1  Movement in reserves 

the Remuneration Report for further information. 

17.  RETAINED   EARNINGS/(LOSSES) 

Movements in retained earnings/(losses) were as follows: 

2019 

$000 

(9,371) 

36,017    

26,646    

2018 

$000 

(108,476) 

99,106 

(9,370) 

Retained earnings/(losses) 

Profit/(loss) 

Closing balance 

• 

• 

when they fall due; and 

18.  FINANCIAL RISK MANAGEMENT OBJECTIVES AND  POLICIES 

The Group’s management of financial risk aims to ensure cash flows are sufficient to: 

Withstand significant changes in cash flow at risk scenarios and still meet all financial commitments as and 

Maintain the capacity to fund project development, exploration and acquisition strategies. 

The Group continually monitors and tests its forecast financial position against these criteria. The key financial 

risk exposures are liquidity risk, credit risk, and market risk (including foreign exchange risk, commodity price 

risk and interest rate risk). 

The Directors are responsible for monitoring and managing financial risk exposures of the Group. The Group’s 

financial instruments consist mainly of borrowings, deposits with banks, derivatives, payables and receivables. 

The Group holds the following financial instruments: 

Financial assets 

Cash at bank 

Term deposits 

Receivables 

Derivative financial instruments 

Investments 

Balance at year end 

Financial liabilities 

Trade and other payables 

Borrowings (i) 

Deferred acquisition royalty 

Derivative financial instruments 

Balance at year end 

2019 

$000 

104,302 

7,285 

- 

- 

700    

112,287    

29,789 

- 

5,534 

12,041    

47,364    

2018 

$000 

66,925 

4,742 

5,829 

1,650 

80 

79,226 

29,693 

878 

7,860 

- 

38,431 

(i) Prior year borrowings consisted of finance leases ($0.285 million) and 

Insurance funding 

($0.593 million) 

which have been settled in the current year. 

Financial assets/liabilities 

The  Group  enters  into  derivative  financial  instruments  (commodity  contracts)  with  financial  institutions  with 

investment-grade  credit  ratings.  It  measures  financial  instruments,  such  as  derivatives  and  provisionally  priced 

trade receivables, at fair value at each reporting date. 

18.  FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) 

The Group’s principal financial assets, other than derivatives and provisionally priced trade receivables, comprise 
other receivables, cash and short-term deposits that arise directly from its operations, as well as investments. 

The Group’s principal financial liabilities other than derivatives, comprise trade and other payables, and deferred 
acquisition royalty. 

Accounting policies in respect of these financial assets and liabilities are documented within the relevant notes to 
the  financial  statements,  being  receivables  (Note  11),  derivatives  and  investments  (Note  13),  trade  and  other 
payables (Note 14), and deferred acquisition costs (Note 20). 

Offsetting of financial instruments 

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of 
financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an 
intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously. 

18.1  Derivatives 

The Group has entered into the following derivative commodity contracts for the forward sale of gold that have 
not been designated as hedges: 

Gold forwards contracts at 30 June - oz 
Gold forward contracts at fair value - $000's 

2019 

56,000  
12,041  

2018 

76,000 
1,650 

The  resulting  fair  value  financial  liability  of  $12.041  million  (2018:  financial  asset  of  $1.650  million)  of  these 
contracts has been recognised in the statement of financial position as  financial assets/(liabilities). The delivery 
dates differ per contract and range from 25 July 2019 to 30 June 2020. 

The change in the fair value of these contracts ($12.041 million) has been recognised in the statement of profit of 
loss as unrealised loss on commodities (2018: unrealised gain on commodities $1.650 million). 

18.2  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. At 30 June 2019, the Company had no debt (2018: nil) and 
held $104.3 million (2018: $66.9 million) of available cash. 

18.3  Maturities of financial liabilities 

The table below shows the Group’s financial liabilities at 30 June 2019 in their relevant contractual maturity 
groupings. There is no debt. Trade and other payables are expected to be settled within 12 months. 

Maturity profile of financial liabilities 

2019 

Equipment loans 
Insurance loan 
Deferred acquisition costs 
Derivative financial 
instruments 
Total 

<1 Yr 
$000 

- 
- 
2,467 

1-2 Yrs 
$000 

2-3 Yrs 
$000 

3-4 Yrs 
$000 

- 
- 
1,496 

- 
- 
1,252 

- 
- 
386 

12,041 
14,508    

- 
1,496    

- 
1,252    

- 
386    

Contracted 
cash flow 
>4 Yrs  of liability 
$000 

$000 

Carrying 
value of 
liability 
$000 

- 
- 
- 

- 
- 

- 
- 
5,601 

- 
- 
5,534 

12,041 
17,642    

12,041 
17,575 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  63

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  64

 
 
 
 
  
  
  
 
 
  
 
  
 
  
 
  
 
  
 
  
 
  
  
  
 
 
 
 
 
  
 
  
  
 
  
 
  
  
 
 
  
  
 
 
 
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

18.  FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) 

18.  FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) 

18.3  Maturities of financial liabilities (continued) 

18.5  Market risk exposures (continued) 

2019 

2018 

Equipment loans 
Insurance loan 
Deferred acquisition costs 
Total 

18.4  Credit risk exposures 

<1 Yr 
$000 

285 
593 
4,068    
4,946    

1-2 Yrs 
$000 

2-3 Yrs 
$000 

3-4 Yrs 
$000 

- 
- 
2,407    
2,407    

- 
- 
1,314    
1,314    

- 
- 
274    
274    

Contracted 
cash flow 
>4 Yrs  of liability 
$000 

$000 

Carrying 
value of 
liability 
$000 

- 
- 
- 
- 

285 
593 
8,063    
8,941    

285 
- 
7,860 
8,145 

Credit  risk  represents  the  loss  that  would  be  recognised  if  counterparties  failed  to  perform  as  contracted.  The 
credit  risk  on  financial  assets  of  the  entity  which  have  been  recognised  in  the  Consolidated  Statement  of 
Financial Position is the carrying amount, net of any provision for doubtful debts. Credit risk is managed through 
the  maintenance  of  procedures  which  ensure,  to  the  extent  possible,  that  counterparties  to  transactions  are  of 
sound creditworthiness. Such monitoring is used in assessing receivables for impairment. 

No receivables are considered past due or impaired. 

18.5  Market risk exposures 

(a)  Foreign currency risk 
The  Group  undertakes  transactions  impacted  by  foreign  currencies;  hence  exposures  to  exchange  rate 
fluctuations arise. Although the majority of the Group costs, including development expenditure, are in Australian 
dollars many of these costs are affected either directly or indirectly by movements in exchange rates. Revenue 
during the year from the sale of commodities is largely affected by movements in the USD:AUD exchange rate. 

Currently the Group does not hedge against this risk. The group considers the effects of foreign currency risk on 
its  financial  position  and  financial  performance  and  assesses  its  option  to  hedge  based  on  current  economic 
conditions and available market data. 

Generally the majority of US$ received from sales are converted to A$ soon after receipt, unless there are cash 
outflow commitments payable in US$. The foreign currency exposure to revenue not converted at time of sale in 
the period to a 5% change in US$ exchange rate was an approximately $0.3 million sensitivity in profit/loss and 
equity. 

The  cash  balance  at  year  end  includes  US$4.4  million  (2018:  US$9.9  million)  held  in  US$  bank  accounts.  An 
increase/decrease in AUD:USD foreign exchange rates of 5% will result in $0.3 million increase/decrease in US$ 
currency bank account balances. 

(b)  Commodity price risk 
The Group’s revenue is exposed to commodity price fluctuations, particularly gold, lead and zinc prices. Price risk 
relates to the risk that the fair value of future cash flows of commodity sales will fluctuate because of changes in 
market  prices  largely  due to supply  and  demand  factors  for  commodities.  The  Group is exposed  to  commodity 
price risk due to the sale of gold, lead, zinc and copper on physical prices determined by the market at the time of 
sale. 

Gold price risk is managed, from time to time and as required and deemed appropriate by the Board, with the use 
of hedging strategies through the purchase of forward sale contracts. These contracts can establish a minimum 
commodity price denominated in either US$ or A$ over part of the group’s future metal production. 

Gold forward sales were implemented during the year. At balance date, the Company’s gold forward position was 
56,000 oz of gold at an average price of A$1,809/oz with deliveries to June 2020. 

During the financial year, gold and gold in concentrate sales were 113,142 ounces. The effect on the income 
statement with an A$50/oz increase/decrease in gold price would have been an increase/decrease in profit/loss 
and equity of $5.7 million. 

During the financial year, the company sold bulk concentrate containing payable lead of 10,356 tonnes, payable 

zinc of 9,757 tonnes and payable copper of 1,462 tonnes. An increase/decrease of US$50/t in the price of lead, 

zinc and copper would increase/decrease profit/loss and equity by $2 million. 

(c)  Interest rate risk 

Exposure  to  interest  rate  risk  arises  on  financial  assets  and  liabilities  recognised  at  reporting  date  whereby  a 

future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. 

During the year, the group incurred interest and fees of $0.679 million of the Guarantee Facility. The group also 

holds cash and short term deposits on which it receives interest. 

The Group’s interest rate risk arises from variable interest rates on interest bearing liabilities. As at 30 June 2019, 

the Group held no variable interest rate debt (2018: nil). 

The Group continually analyses its exposure to interest rate risk. Consideration is given to alternative financing 

options, potential renewal of existing positions, alternative investments and the mix of fixed and variable interest 

rates. 

18.6  Capital risk management 

The  capital  management  strategy  is  to  maximise  shareholder  value  through  having  an  appropriate  balance  of 

debt and equity in recognition of the maturity and operational risk of the business. As at 30 June 2019, the Group 

had no debt and available cash balance of $104 million (30 June 2018: $66.9 million). 

The Group continues to monitor the capital by assessing the financial risks and adjusting the capital structure in 

response  to  changes  in  those  risks.  The  Group  is  continually  evaluating  its  sources  and  uses  of  capital.  The 

Group is not subject to any externally imposed capital requirements. 

The  Directors  consider  the  carrying  values  of  financial  assets  and  financial  liabilities  recorded  in  the  financial 

statements approximate their fair values. 

(a) Fair value hierarchy 

The following table provides the fair value measurement hierarchy of the Group’s financial assets and liabilities. 

The following financial instruments are carried at fair value in the statement of financial position, and measured at 

fair value through profit or loss. 

Investments in Sky Metals 

Liabilities 

Deferred acquisition costs 

Derivative financial instruments 

2019 

Assets 

2018 

Assets 

Derivative financial instruments 

Investment in Big Sky Metals 

Term deposits 

Liabilities 

Deferred acquisition costs 

Quoted prices 

in active 

markets 

Level 1 

$000 

700 

- 

(12,041) 

1,650 

4,742 

- 

- 

- 

Significant 

Significant 

observable 

unobservable 

inputs 

Level 2 

$000 

inputs 

Level 3 

$000 

- 

- 

- 

- 

- 

- 

- 

80 

(5,534) 

- 

- 

- 

- 

- 

- 

(7,860) 

Level 1 

$000 

Level 2 

$000 

Level 3 

$000 

The techniques and inputs used to value the financial assets and liabilities are as follows: 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  65

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  66

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

18.  FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) 

18.  FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) 

18.3  Maturities of financial liabilities (continued) 

18.5  Market risk exposures (continued) 

2019 

2018 

Equipment loans 

Insurance loan 

Deferred acquisition costs 

Total 

18.4  Credit risk exposures 

Contracted 

cash flow 

Carrying 

value of 

<1 Yr 

$000 

285 

593 

4,068    

4,946    

1-2 Yrs 

2-3 Yrs 

3-4 Yrs 

>4 Yrs  of liability 

liability 

$000 

$000 

$000 

$000 

- 

- 

- 

- 

2,407    

2,407    

1,314    

1,314    

- 

- 

274    

274    

- 

- 

- 

- 

$000 

285 

593 

8,063    

8,941    

$000 

285 

- 

7,860 

8,145 

Credit  risk  represents  the  loss  that  would  be  recognised  if  counterparties  failed  to  perform  as  contracted.  The 

credit  risk  on  financial  assets  of  the  entity  which  have  been  recognised  in  the  Consolidated  Statement  of 

Financial Position is the carrying amount, net of any provision for doubtful debts. Credit risk is managed through 

the  maintenance  of  procedures  which  ensure,  to  the  extent  possible,  that  counterparties  to  transactions  are  of 

sound creditworthiness. Such monitoring is used in assessing receivables for impairment. 

No receivables are considered past due or impaired. 

18.5  Market risk exposures 

(a)  Foreign currency risk 

The  Group  undertakes  transactions  impacted  by  foreign  currencies;  hence  exposures  to  exchange  rate 

fluctuations arise. Although the majority of the Group costs, including development expenditure, are in Australian 

dollars many of these costs are affected either directly or indirectly by movements in exchange rates. Revenue 

during the year from the sale of commodities is largely affected by movements in the USD:AUD exchange rate. 

Currently the Group does not hedge against this risk. The group considers the effects of foreign currency risk on 

its  financial  position  and  financial  performance  and  assesses  its  option  to  hedge  based  on  current  economic 

conditions and available market data. 

Generally the majority of US$ received from sales are converted to A$ soon after receipt, unless there are cash 

outflow commitments payable in US$. The foreign currency exposure to revenue not converted at time of sale in 

the period to a 5% change in US$ exchange rate was an approximately $0.3 million sensitivity in profit/loss and 

The  cash  balance  at  year  end  includes  US$4.4  million  (2018:  US$9.9  million)  held  in  US$  bank  accounts.  An 

increase/decrease in AUD:USD foreign exchange rates of 5% will result in $0.3 million increase/decrease in US$ 

The Group’s revenue is exposed to commodity price fluctuations, particularly gold, lead and zinc prices. Price risk 

relates to the risk that the fair value of future cash flows of commodity sales will fluctuate because of changes in 

market  prices  largely  due to supply  and  demand  factors  for  commodities.  The  Group is exposed  to  commodity 

price risk due to the sale of gold, lead, zinc and copper on physical prices determined by the market at the time of 

Gold price risk is managed, from time to time and as required and deemed appropriate by the Board, with the use 

of hedging strategies through the purchase of forward sale contracts. These contracts can establish a minimum 

commodity price denominated in either US$ or A$ over part of the group’s future metal production. 

Gold forward sales were implemented during the year. At balance date, the Company’s gold forward position was 

56,000 oz of gold at an average price of A$1,809/oz with deliveries to June 2020. 

During the financial year, gold and gold in concentrate sales were 113,142 ounces. The effect on the income 

statement with an A$50/oz increase/decrease in gold price would have been an increase/decrease in profit/loss 

and equity of $5.7 million. 

currency bank account balances. 

(b)  Commodity price risk 

equity. 

sale. 

During the financial year, the company sold bulk concentrate containing payable lead of 10,356 tonnes, payable 
zinc of 9,757 tonnes and payable copper of 1,462 tonnes. An increase/decrease of US$50/t in the price of lead, 
zinc and copper would increase/decrease profit/loss and equity by $2 million. 

(c)  Interest rate risk 
Exposure  to  interest  rate  risk  arises  on  financial  assets  and  liabilities  recognised  at  reporting  date  whereby  a 
future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. 
During the year, the group incurred interest and fees of $0.679 million of the Guarantee Facility. The group also 
holds cash and short term deposits on which it receives interest. 

The Group’s interest rate risk arises from variable interest rates on interest bearing liabilities. As at 30 June 2019, 
the Group held no variable interest rate debt (2018: nil). 

The Group continually analyses its exposure to interest rate risk. Consideration is given to alternative financing 
options, potential renewal of existing positions, alternative investments and the mix of fixed and variable interest 
rates. 

18.6  Capital risk management 

The  capital  management  strategy  is  to  maximise  shareholder  value  through  having  an  appropriate  balance  of 
debt and equity in recognition of the maturity and operational risk of the business. As at 30 June 2019, the Group 
had no debt and available cash balance of $104 million (30 June 2018: $66.9 million). 

The Group continues to monitor the capital by assessing the financial risks and adjusting the capital structure in 
response  to  changes  in  those  risks.  The  Group  is  continually  evaluating  its  sources  and  uses  of  capital.  The 
Group is not subject to any externally imposed capital requirements. 

The  Directors  consider  the  carrying  values  of  financial  assets  and  financial  liabilities  recorded  in  the  financial 
statements approximate their fair values. 

(a) Fair value hierarchy 
The following table provides the fair value measurement hierarchy of the Group’s financial assets and liabilities. 
The following financial instruments are carried at fair value in the statement of financial position, and measured at 
fair value through profit or loss. 

2019 

Assets 
Investments in Sky Metals 
Liabilities 
Deferred acquisition costs 
Derivative financial instruments 

2018 

Assets 

Derivative financial instruments 
Investment in Big Sky Metals 
Term deposits 
Liabilities 
Deferred acquisition costs 

Quoted prices 
in active 
markets 

Significant 
observable 
inputs 

Significant 
unobservable 
inputs 

Level 1 
$000 

700 

- 
(12,041) 

Level 2 
$000 

- 

- 
- 

Level 1 
$000 

Level 2 
$000 

- 
1,650 
- 
4,742 

- 

- 
- 
80 
- 

- 

Level 3 
$000 

- 

(5,534) 
- 

Level 3 
$000 

- 
- 
- 
- 

(7,860) 

The techniques and inputs used to value the financial assets and liabilities are as follows: 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  65

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  66

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

18.  FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) 

19.  SHARE BASED PAYMENT ARRANGEMENTS  (CONTINUED) 

18.6 Capital risk management (continued) 

19.1 Type of share based payment plan (continued) 

• 

• 

• 

Gold Forward Contracts - marked-to-market value based on spot gold prices at balance date and future 
delivery prices and volumes, as provided by trade counterparty. 

Term Deposits - Face value of cash deposits 

Deferred acquisition costs - revalued each period to fair value by using the discounted cash flow 
methodology. Inputs include forecast gravity gold production applicable to the royalty of 68,000 ounces. 
Future royalty revenue is estimated using an assumed future average gold price of A$1,650/oz. The 
discount rate used was the five year government bond rate of 0.893%. 

19.  SHARE BASED PAYMENT  ARRANGEMENTS 

Recognised share based payments expenses for employee services received in the reporting period is shown in 
the table below. 

Note:  Subsequent  to  balance  date,  the  Board  determined  that  2,062,500  of  the  2,250,000  2016  Class  16B 

Performance Rights (92%) would vest into shares (see Remuneration Report). The movement will be displayed  

2,250,000  Un-vested 

2,250,000  Un-vested 

2,041,875  Un-vested 

2,655,296  Un-vested 

9,197,171   

19.1  Type of share based payment plan 

Share based payments 

Expense from share based payments to employees 
Total 

2019 
$000 
2,397    
2,397    

2018 
$000 

2,427 
2,427 

The  assessed  value  of  the  2016  Class  B  &  Class  C  Performance  Rights  is  $2,027,953  (4,500,000  rights  at  a 

weighted average price of $0.495 each with vesting probabilities applied). These Performance Rights are valued 

at the spot price at reporting date (intrinsic method), consistent with prior periods. 

An independent expert provider estimated fair value using the Monte Carlo simulation and the assessed value for 

the  2018A  and  2018B  Rights  is  $2,091,090  (4,697,171  rights  at  a  weighted  average  cost  of  $0.58/each  with 

(a)  Employee share option plan and performance rights plan 
The  Company  has  established  a  Performance  Rights  Plan,  as  detailed  in  the  Remuneration  Report  to  these 
Financial  Statements.  The  objective  of  these  is  to  assist  in the  recruitment,  reward,  retention  and  motivation  of 
employees of Aurelia Metals. The plan is open to Directors and eligible employees of Aurelia Metals. 

(b)  Summary of movements of options on issue 
The following table illustrates the number and weighted average exercise price (“WAEP”) of, and movements in, 
share options during the year. 

30 June 2019 

30 June 2018 

Closing Balance 

2016 Class 16B Perf Rights (i) 

2016 Class 16C Perf Rights (iii) 

2018 Class 18A Perf Rights (iii) 

2018 Class 18B Perf Rights (iv) 

in the next reporting period. 

(d)  Fair value determination 

vesting probabilities applied). 

Recognition and measurement 

Options on issue 

Opening balance issued 
Exercised in the year 
Closing balance issued 
Exercisable at 30 June 

Number 

WAEP (c) 

Number 

WAEP (c) 

become fully entitled to the award (‘vesting date’). 

10,000,000 
    (10,000,000)    

- 
- 

1.25 
(1.25)    

10,000,000 
- 

-     10,000,000    
- 

10,000,000 

1.25 
- 
1.25 
1.25 

Exercise of 10,000,000 options at 1.25c/share by Pacific Road Capital Management Pty Ltd. 

(c)  Summary of movements of performance rights on issue 
The following table illustrates the number of, and movements in Performance Rights during the year. All 
Performance Rights have a zero weighted average exercise price. 

Refer to the Remuneration Report (section 4.2(a) for the vesting conditions of the performance rights issued 
during the year. 

Performance rights on issue 

Opening balance issued 
Granted during the year 
Vested during the year 
Lapsed during the year 
Closing balance issued 

30 June 2019   30 June 2018 

Number 

Number 

6,500,000 
4,697,171 
(2,000,000) 
-  
9,197,171  

6,570,000 
- 
- 
(70,000) 
6,500,000 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  67

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  68

The  Company  provides  benefits  to  employees  in  the  form  of  share-based  payment  transactions,  whereby 

employees render services in exchange for shares or rights over shares (‘equity-settled transactions’). 

The  cost  of  these  equity-settled  transactions  with  employees  is  measured  by  reference  to  the  fair  value  at  the 

date  at  which  they  are  granted.  The  fair  value  is  determined  by  an  external  independent  valuation  using  the 

Monte Carlo simulation. 

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the 

period in which the performance conditions are fulfilled, ending on the date on which the relevant employees 

The  cumulative  expense  recognised  for  equity-settled  transactions  at  each  reporting  date  until  vesting  date 

reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion 

of  the  Directors  of  the  Company,  will  ultimately  vest.  This  opinion  is  formed  based  on  the  best  available 

information at balance date. 

upon a market condition. 

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional 

Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms 

had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a 

result of the modification, as measured at the date of modification. 

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any 

expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for 

the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and 

new award are treated as if they were a modification of the original award, as described in the previous 

The  dilutive  effect,  if  any,  of  outstanding  options  is  reflected  as  additional  share  dilution  in  the  computation  of 

paragraph. 

earnings per share. 

 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
  
 
  
  
 
 
  
 
  
  
  
  
  
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

18.  FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) 

19.  SHARE BASED PAYMENT ARRANGEMENTS  (CONTINUED) 

18.6 Capital risk management (continued) 

19.1 Type of share based payment plan (continued) 

• 

• 

• 

Gold Forward Contracts - marked-to-market value based on spot gold prices at balance date and future 

delivery prices and volumes, as provided by trade counterparty. 

Term Deposits - Face value of cash deposits 

Deferred acquisition costs - revalued each period to fair value by using the discounted cash flow 

methodology. Inputs include forecast gravity gold production applicable to the royalty of 68,000 ounces. 

Future royalty revenue is estimated using an assumed future average gold price of A$1,650/oz. The 

discount rate used was the five year government bond rate of 0.893%. 

19.  SHARE BASED PAYMENT  ARRANGEMENTS 

Recognised share based payments expenses for employee services received in the reporting period is shown in 

the table below. 

19.1  Type of share based payment plan 

Share based payments 

Expense from share based payments to employees 

Total 

2019 

$000 

2,397    

2,397    

2018 

$000 

2,427 

2,427 

(a)  Employee share option plan and performance rights plan 

The  Company  has  established  a  Performance  Rights  Plan,  as  detailed  in  the  Remuneration  Report  to  these 

Financial  Statements.  The  objective  of  these  is  to  assist  in the  recruitment,  reward,  retention  and  motivation  of 

employees of Aurelia Metals. The plan is open to Directors and eligible employees of Aurelia Metals. 

(b)  Summary of movements of options on issue 

The following table illustrates the number and weighted average exercise price (“WAEP”) of, and movements in, 

share options during the year. 

Options on issue 

Opening balance issued 

Exercised in the year 

Closing balance issued 

Exercisable at 30 June 

30 June 2019 

30 June 2018 

Number 

WAEP (c) 

Number 

WAEP (c) 

10,000,000 

    (10,000,000)    

- 

- 

1.25 

(1.25)    

10,000,000 

- 

-     10,000,000    

- 

10,000,000 

1.25 

- 

1.25 

1.25 

Exercise of 10,000,000 options at 1.25c/share by Pacific Road Capital Management Pty Ltd. 

(c)  Summary of movements of performance rights on issue 

The following table illustrates the number of, and movements in Performance Rights during the year. All 

Performance Rights have a zero weighted average exercise price. 

Refer to the Remuneration Report (section 4.2(a) for the vesting conditions of the performance rights issued 

during the year. 

Performance rights on issue 

Opening balance issued 

Granted during the year 

Vested during the year 

Lapsed during the year 

Closing balance issued 

30 June 2019   30 June 2018 

Number 

Number 

6,500,000 

4,697,171 

(2,000,000) 

-  

9,197,171  

6,570,000 

- 

- 

(70,000) 

6,500,000 

Closing Balance 

2016 Class 16B Perf Rights (i) 
2016 Class 16C Perf Rights (iii) 
2018 Class 18A Perf Rights (iii) 
2018 Class 18B Perf Rights (iv) 

2,250,000  Un-vested 
2,250,000  Un-vested 
2,041,875  Un-vested 
2,655,296  Un-vested 
9,197,171   

Note:  Subsequent  to  balance  date,  the  Board  determined  that  2,062,500  of  the  2,250,000  2016  Class  16B 
Performance Rights (92%) would vest into shares (see Remuneration Report). The movement will be displayed  
in the next reporting period. 

(d)  Fair value determination 

The  assessed  value  of  the  2016  Class  B  &  Class  C  Performance  Rights  is  $2,027,953  (4,500,000  rights  at  a 
weighted average price of $0.495 each with vesting probabilities applied). These Performance Rights are valued 
at the spot price at reporting date (intrinsic method), consistent with prior periods. 

An independent expert provider estimated fair value using the Monte Carlo simulation and the assessed value for 
the  2018A  and  2018B  Rights  is  $2,091,090  (4,697,171  rights  at  a  weighted  average  cost  of  $0.58/each  with 
vesting probabilities applied). 

Recognition and measurement 

The  Company  provides  benefits  to  employees  in  the  form  of  share-based  payment  transactions,  whereby 
employees render services in exchange for shares or rights over shares (‘equity-settled transactions’). 

The  cost  of  these  equity-settled  transactions  with  employees  is  measured  by  reference  to  the  fair  value  at  the 
date  at  which  they  are  granted.  The  fair  value  is  determined  by  an  external  independent  valuation  using  the 
Monte Carlo simulation. 

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the 
period in which the performance conditions are fulfilled, ending on the date on which the relevant employees 
become fully entitled to the award (‘vesting date’). 

The  cumulative  expense  recognised  for  equity-settled  transactions  at  each  reporting  date  until  vesting  date 
reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion 
of  the  Directors  of  the  Company,  will  ultimately  vest.  This  opinion  is  formed  based  on  the  best  available 
information at balance date. 

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional 
upon a market condition. 

Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms 
had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a 
result of the modification, as measured at the date of modification. 

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any 
expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for 
the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and 
new award are treated as if they were a modification of the original award, as described in the previous 
paragraph. 

The  dilutive  effect,  if  any,  of  outstanding  options  is  reflected  as  additional  share  dilution  in  the  computation  of 
earnings per share. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  67

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  68

 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
  
 
  
  
 
 
  
 
  
  
  
  
  
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

Other 
This section covers additional financial information and mandatory disclosures. 

20.  PROVISIONS 

At 30 June 2019 

Current 
Rehabilitation 
Deferred acquisition costs 
Employee 
Other 
Total current provisions 
Non current 
Rehabilitation 
Deferred acquisition costs 
Employee 
Total non-current provisions 
Total provisions 

At 30 June 2019 

Deferred 

Rehabilitation  Acquisition  Employee 
(iii) 
$000 

Costs (ii) 
$000 

(i) 
$000 

Opening balance 
Re-measurement of provision 
Discount unwind charged to Income 
Statement 
Paid/utilised during the year 
Closing balance 

32,665 
10,357 

7,860 
1,196 

11,352 
3,097 

703 
(24)    
43,701    

70 
(3,592)    
5,534    

- 

(6,672)  
7,777  

At 30 June 2018 

Deferred 

Opening balance 
Provision assumed from business 
combination (Note: 4.2) 
Re-measurement of provision 
Discount unwind charged to Income 
Statement 
Paid/utilised during the year 
Closing balance 

Rehabilitation  Acquisition  Employee 
(iii) 
$000 
583 

Costs (ii) 
$000 
9,386 

(i) 
$000 
4,152 

24,948 
3,706 

- 
1,097 

(141) 
- 
32,665    

- 

(2,622)    
7,861    

12,088 
(596) 

- 

(724)  
11,351  

2019 
$000 

- 
1,995 
7,307 
727  
10,029 

43,701 
3,539 
470  
47,710  
57,739  

2018 
$000 

761 
3,428 
11,098 
- 
15,287 

31,904 
4,432 
253 
36,589 
51,876 

Other (iv) 
$000 

727 

- 
-  
727  

Total 
$000 

51,877 
15,377 

773 
(10,288) 
57,739 

Other (iv) 
$000 
2,115 

- 
(185) 

- 

(1,930)  
-  

Total 
$000 
16,236 

37,036 
4,022 

(141) 
(5,276) 
51,877 

20.  PROVISIONS (CONTINUED) 

(i) Site restoration costs include the dismantling and the removal of mining plant, equipment and building 

structures, waste removal and restoration, reclamation and revegetation of the affected areas of the sites in 

accordance with the mining permits. Rehabilitation provision represents the present value of the estimated future 

rehabilitation cost relating to the mine sites. Timing of rehabilitation is likely to depend on when the mine ceases 

to produce at economically viable rates. The Peak estimate has increased during the year , mainly due to 

increased costs related to the demolition of plant and waste dump rehabilitation. The Hera provision has 

increased during the year, and is primarily as a result of increased costs related to the demolition and removal of 

infrastructure. At 30 June 2019, the Letter of Credit Facility available under the Investec Syndicated Facility 

(Facility C) has been fully utilised ($30 million), and an additional security of $0.05 million is held as a cash term 

deposit with Westpac. 

(ii) Deferred acquisition costs are valued at fair value by using the discounted cash flow methodology based on 

the three year Australian government bond rate of 0.89%. 

(iii) The provision for employee benefits represent annual leave and long service leave entitlements for current 

employees, and also includes the annual leave and long service leave balance due to ex-employees who 

transferred from Aurelia to PYBAR as a result of the transition to contract mining. Aurelia is liable for the benefits 

earned by these employees up to the date of transfer (1 Feb 19). 

(iv) Other provisions represent electricity provisions (2019) and withholding tax paid on the full settlement of the 

Glencore debt (2018). 

Recognition and measurement 

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past 

event,  it  is  probable  that  an  outflow  of  resources  embodying  economic  benefits  will  be  required  to  settle  the 

obligation and a reliable estimate can be made of the amount of the obligation. 

Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a 

separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is 

presented in the income statement net of any reimbursement. 

Rehabilitation 

The Group makes a provision for the future cost of rehabilitating the respective mine sites and related production 

facilities at the time of developing the mine and installing and using those facilities. The rehabilitation provision 

represents the present value of the estimated future rehabilitation costs relating to mine sites. The discount rate 

used to determine the present value is a pre-tax rate reflecting the current market assessments. 

The unwinding of discounting the provision is included in finance costs in the profit or loss. 

When the liability is initially recorded, the present value of the estimated cost is capitalised as part of the carrying 

value  of  mine  properties,  which  is  amortised  on  a  units  of  use  basis.  Additional  disturbances  or  changes  in 

rehabilitation  costs  will  be  recognised  as  additions  or  changes  to  the  corresponding  asset  and  rehabilitation 

liability when incurred. 

Deferred acquisition costs in relation to Hera 

timing and possibility of payment. 

Employee benefits 

The Company measures the deferred acquisition costs by reference to the fair value of net present value of  

future cash outflows. The following assumptions have been taken into account: risk free bond rate, gold price, 

Annual leave liabilities are measured at the amounts expected to be paid when the liabilities are settled. 

Long service leave liabilities are measured at the present value of the estimated future cash outflows, discounted 

using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is 

used,  the  increase  in  the  provision  due  to  the  passage  of  time  is  recognised  as  part  of  finance  costs  in  the 

statement of profit or loss. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  69

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  70

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

This section covers additional financial information and mandatory disclosures. 

Other 

20.  PROVISIONS 

At 30 June 2019 

Current 

Rehabilitation 

Deferred acquisition costs 

Employee 

Other 

Non current 

Rehabilitation 

Total current provisions 

Deferred acquisition costs 

Employee 

Total non-current provisions 

Total provisions 

At 30 June 2019 

2019 

$000 

- 

1,995 

7,307 

727  

10,029 

43,701 

3,539 

470  

47,710  

57,739  

2018 

$000 

761 

3,428 

11,098 

- 

15,287 

31,904 

4,432 

253 

36,589 

51,876 

Opening balance 

Re-measurement of provision 

Discount unwind charged to Income 

Statement 

Paid/utilised during the year 

Closing balance 

At 30 June 2018 

Opening balance 

Provision assumed from business 

combination (Note: 4.2) 

Re-measurement of provision 

Discount unwind charged to Income 

Statement 

Paid/utilised during the year 

Closing balance 

Rehabilitation  Acquisition  Employee 

Deferred 

(i) 

Costs (ii) 

$000 

32,665 

10,357 

$000 

7,860 

1,196 

703 

(24)    

43,701    

70 

(3,592)    

5,534    

11,352 

3,097 

- 

(6,672)  

7,777  

(iii) 

$000 

Other (iv) 

$000 

Total 

$000 

51,877 

15,377 

773 

(10,288) 

57,739 

727 

- 

-  

727  

Rehabilitation  Acquisition  Employee 

Deferred 

(i) 

Costs (ii) 

$000 

4,152 

24,948 

3,706 

(141) 

- 

32,665    

$000 

9,386 

1,097 

- 

- 

(2,622)    

7,861    

(iii) 

$000 

583 

Other (iv) 

$000 

2,115 

12,088 

(596) 

- 

(724)  

11,351  

(185) 

- 

- 

-  

(1,930)  

Total 

$000 

16,236 

37,036 

4,022 

(141) 

(5,276) 

51,877 

20.  PROVISIONS (CONTINUED) 

(i) Site restoration costs include the dismantling and the removal of mining plant, equipment and building 
structures, waste removal and restoration, reclamation and revegetation of the affected areas of the sites in 
accordance with the mining permits. Rehabilitation provision represents the present value of the estimated future 
rehabilitation cost relating to the mine sites. Timing of rehabilitation is likely to depend on when the mine ceases 
to produce at economically viable rates. The Peak estimate has increased during the year , mainly due to 
increased costs related to the demolition of plant and waste dump rehabilitation. The Hera provision has 
increased during the year, and is primarily as a result of increased costs related to the demolition and removal of 
infrastructure. At 30 June 2019, the Letter of Credit Facility available under the Investec Syndicated Facility 
(Facility C) has been fully utilised ($30 million), and an additional security of $0.05 million is held as a cash term 
deposit with Westpac. 

(ii) Deferred acquisition costs are valued at fair value by using the discounted cash flow methodology based on 
the three year Australian government bond rate of 0.89%. 

(iii) The provision for employee benefits represent annual leave and long service leave entitlements for current 
employees, and also includes the annual leave and long service leave balance due to ex-employees who 
transferred from Aurelia to PYBAR as a result of the transition to contract mining. Aurelia is liable for the benefits 
earned by these employees up to the date of transfer (1 Feb 19). 

(iv) Other provisions represent electricity provisions (2019) and withholding tax paid on the full settlement of the 
Glencore debt (2018). 

Recognition and measurement 

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past 
event,  it  is  probable  that  an  outflow  of  resources  embodying  economic  benefits  will  be  required  to  settle  the 
obligation and a reliable estimate can be made of the amount of the obligation. 

Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a 
separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is 
presented in the income statement net of any reimbursement. 

Rehabilitation 

The Group makes a provision for the future cost of rehabilitating the respective mine sites and related production 
facilities at the time of developing the mine and installing and using those facilities. The rehabilitation provision 
represents the present value of the estimated future rehabilitation costs relating to mine sites. The discount rate 
used to determine the present value is a pre-tax rate reflecting the current market assessments. 

The unwinding of discounting the provision is included in finance costs in the profit or loss. 

When the liability is initially recorded, the present value of the estimated cost is capitalised as part of the carrying 
value  of  mine  properties,  which  is  amortised  on  a  units  of  use  basis.  Additional  disturbances  or  changes  in 
rehabilitation  costs  will  be  recognised  as  additions  or  changes  to  the  corresponding  asset  and  rehabilitation 
liability when incurred. 

Deferred acquisition costs in relation to Hera 

The Company measures the deferred acquisition costs by reference to the fair value of net present value of  
future cash outflows. The following assumptions have been taken into account: risk free bond rate, gold price, 
timing and possibility of payment. 

Employee benefits 

Annual leave liabilities are measured at the amounts expected to be paid when the liabilities are settled. 

Long service leave liabilities are measured at the present value of the estimated future cash outflows, discounted 
using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is 
used,  the  increase  in  the  provision  due  to  the  passage  of  time  is  recognised  as  part  of  finance  costs  in  the 
statement of profit or loss. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  69

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  70

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

20.  PROVISIONS (CONTINUED) 

Other 

The provision for electricity represents the total estimated liability at 30 June 2019. The liability is offset against 
electricity certificates bought in advance and included in current assets (prepayments). 

Reconciliation of profit after tax to net cash flows used in operating activities 

Accounting estimates and assumptions 

Rehabilitation 

Significant estimates and assumptions are required in determining the provision for mine rehabilitation as there 
are many transactions and other factors that will affect the ultimate liability payable to rehabilitate the mine sites. 
These  provisions  have  been  created  based  on  Aurelia’s  internal  estimates.  Assumptions  based  on  the  current 
economic  environment  have  been  made,  which  management  believes  are  a  reasonable  basis  upon  which  to 
estimate the future liability. These estimates are reviewed regularly to take into account any material changes to 
the  assumptions,  including  changes  in  regulations,  price  increases,  timing  of  cash  flows,  and  discount  rates. 
However,  actual  rehabilitation  costs  will  ultimately  depend  upon  future  market  prices  for  the  necessary 
rehabilitation  works  required  that  will  reflect  market  conditions  at  the  relevant  time.  Furthermore,  the  timing  of 
rehabilitation is likely to depend on when the mines cease to produce at economically viable rates. This, in turn, 
will depend upon future gold, lead and zinc prices, which are inherently uncertain. 

Deferred acquisition costs in relation to Hera 

On 18 June 2009, the Company reached agreement to purchase a 100% interest in the Hera Project and an 80% 
interest in the adjacent Nymagee Joint Venture from CBH Resources Limited (CBH). The total cost of the 
acquisition was an initial cash purchase price of $12,000,000 and a 5% gold royalty on gravity gold dore 
production from the Hera deposit, capped at 250,000 ounces gold. The royalty was commercially negotiated 
post acquisition down to 4.5%. 

The  Consolidated  Entity  has  recorded  deferred  consideration  of  $5.5  million  ($7.8  million  at  30  June  2018) 
representing the net present value of projected royalty payments due under the revised terms of the acquisition, 
calculated  based  on  information  available  as  at  30  June  2019.  The  deferred  consideration  is  revalued  at  each 
reporting  date  through  the  carrying  value  of  the  asset  (mine  properties)  in  accordance  with  the  transitional 
requirements of AASB 3 Business combinations. 

Assumptions  based on  the  current  economic  environment  and  updated life  of mine  plans,  have  been  made  by 
management. These estimates are reviewed regularly and factors considered include gold price, discount rates, 
timing of cash flows and forecast gold production. 

Employee benefits 

Management judgement is required in determining the future probability of employee departures and period of 
service used in the calculation of long service leave. 

21.  CASHFLOW STATEMENT 

Net profit after tax 

Adjustments for: 

Share based payments 

Acquisition and integration costs 

Exploration and evaluation assets written off 

Depreciation and amortisation 

(Gain)/Loss on sale of investments 

(Gain)/Loss on revaluation of commodity derivatives 

(Gain)/Loss on scrapping of plant and equipment 

Interest and amortisation of borrowing costs 

Debt arrangement costs 

Deferred tax recognised to income statement 

Income tax payments - Peak liability 

Changes in assets and liabilities: 

(Increase)/decrease in receivables 

(Increase)/decrease in prepayments 

Increase/(decrease) in trade and other payables 

Increase/(decrease) in provisions 

Movement in inventory 

Working capital inherited from business - other 

Cash acquired from business combination 

Net cash flows from operating activities 

The above Statement should be read in conjunction with the accompanying notes. 

22.  EXPENDITURE COMMITMENTS 

22.1  Operating contract commitments 

The Group has entered into commercial arrangements for certain services and items of plant and machinery. 

These contracts have an average life of between one and five years. 

There are no restrictions placed upon the Group by entering into these arrangements. 

Future minimum rentals payable under non-cancellable operating contracts as at 30 June 2019 are, as follows: 

Within one year 

Between one and five years 

22.2  Finance lease and hire purchase commitments 

As at 30 June 2019, all finance leases and hire purchase contracts for various items of plant and machinery had 

been fully paid by the Group. 

2019 

$000 

2018 

$000 

36,017 

99,105 

2,397 

- 

2,473 

51,973 

(620) 

15,886 

2,368 

774 

(2,270) 

549 

(66) 

5,120 

(2,847) 

(4,971) 

- 

- 

- 

- 

106,783    

2,427 

1,133 

679 

36,607 

(141) 

352 

1,144 

5,409 

3,168 

(6,799) 

(8,964) 

(2,794) 

(1,092) 

21,761 

10,769 

(12,254) 

35,646 

(34,397) 

151,759 

2019 

$000 

5,719 

10,788    

16,507    

2018 

$000 

1,924 

345 

2,269 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  71

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  72

 
 
 
 
 
 
 
  
 
 
 
 
 
  
  
  
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
20.  PROVISIONS (CONTINUED) 

Other 

Accounting estimates and assumptions 

Rehabilitation 

Significant estimates and assumptions are required in determining the provision for mine rehabilitation as there 

are many transactions and other factors that will affect the ultimate liability payable to rehabilitate the mine sites. 

These  provisions  have  been  created  based  on  Aurelia’s  internal  estimates.  Assumptions  based  on  the  current 

economic  environment  have  been  made,  which  management  believes  are  a  reasonable  basis  upon  which  to 

estimate the future liability. These estimates are reviewed regularly to take into account any material changes to 

the  assumptions,  including  changes  in  regulations,  price  increases,  timing  of  cash  flows,  and  discount  rates. 

However,  actual  rehabilitation  costs  will  ultimately  depend  upon  future  market  prices  for  the  necessary 

rehabilitation  works  required  that  will  reflect  market  conditions  at  the  relevant  time.  Furthermore,  the  timing  of 

rehabilitation is likely to depend on when the mines cease to produce at economically viable rates. This, in turn, 

will depend upon future gold, lead and zinc prices, which are inherently uncertain. 

Deferred acquisition costs in relation to Hera 

On 18 June 2009, the Company reached agreement to purchase a 100% interest in the Hera Project and an 80% 

interest in the adjacent Nymagee Joint Venture from CBH Resources Limited (CBH). The total cost of the 

acquisition was an initial cash purchase price of $12,000,000 and a 5% gold royalty on gravity gold dore 

production from the Hera deposit, capped at 250,000 ounces gold. The royalty was commercially negotiated 

post acquisition down to 4.5%. 

The  Consolidated  Entity  has  recorded  deferred  consideration  of  $5.5  million  ($7.8  million  at  30  June  2018) 

representing the net present value of projected royalty payments due under the revised terms of the acquisition, 

calculated  based  on  information  available  as  at  30  June  2019.  The  deferred  consideration  is  revalued  at  each 

reporting  date  through  the  carrying  value  of  the  asset  (mine  properties)  in  accordance  with  the  transitional 

requirements of AASB 3 Business combinations. 

Assumptions  based on  the  current  economic  environment  and  updated life  of mine  plans,  have  been  made  by 

management. These estimates are reviewed regularly and factors considered include gold price, discount rates, 

timing of cash flows and forecast gold production. 

Employee benefits 

Management judgement is required in determining the future probability of employee departures and period of 

service used in the calculation of long service leave. 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

The provision for electricity represents the total estimated liability at 30 June 2019. The liability is offset against 

electricity certificates bought in advance and included in current assets (prepayments). 

Reconciliation of profit after tax to net cash flows used in operating activities 
Net profit after tax 

36,017 

99,105 

21.  CASHFLOW STATEMENT 

2019 
$000 

2018 
$000 

Adjustments for: 
Share based payments 
Acquisition and integration costs 
Exploration and evaluation assets written off 
Depreciation and amortisation 
(Gain)/Loss on sale of investments 
(Gain)/Loss on revaluation of commodity derivatives 
(Gain)/Loss on scrapping of plant and equipment 
Interest and amortisation of borrowing costs 
Debt arrangement costs 
Deferred tax recognised to income statement 
Income tax payments - Peak liability 
Changes in assets and liabilities: 
(Increase)/decrease in receivables 
(Increase)/decrease in prepayments 
Increase/(decrease) in trade and other payables 
Increase/(decrease) in provisions 
Movement in inventory 
Working capital inherited from business - other 
Cash acquired from business combination 
Net cash flows from operating activities 

2,397 
- 
2,473 
51,973 
(620) 
15,886 
2,368 
774 
- 
(2,270) 
- 

549 
(66) 
5,120 
(2,847) 
(4,971) 
- 
- 

106,783    

2,427 
1,133 
679 
36,607 
(141) 
352 
1,144 
5,409 
3,168 
(6,799) 
(8,964) 

(2,794) 
(1,092) 
21,761 
10,769 
(12,254) 
35,646 
(34,397) 
151,759 

The above Statement should be read in conjunction with the accompanying notes. 

22.  EXPENDITURE COMMITMENTS 

22.1  Operating contract commitments 

The Group has entered into commercial arrangements for certain services and items of plant and machinery. 
These contracts have an average life of between one and five years. 

There are no restrictions placed upon the Group by entering into these arrangements. 

Future minimum rentals payable under non-cancellable operating contracts as at 30 June 2019 are, as follows: 

Within one year 
Between one and five years 

2019 
$000 

5,719 
10,788    
16,507    

2018 
$000 

1,924 
345 
2,269 

22.2  Finance lease and hire purchase commitments 

As at 30 June 2019, all finance leases and hire purchase contracts for various items of plant and machinery had 
been fully paid by the Group. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  71

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  72

 
 
 
 
 
 
 
  
 
 
 
 
 
  
  
  
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

22.  EXPENDITURE COMMITMENTS (CONTINUED) 

22.2  Finance lease and hire purchase commitments (continued) 

2019 
$000 

2018 
$000 

Minimum 
payments 
$000 

PV of 
payments 
$000 

Minimum 
payments 
$000 

PV of 
payments 
$000 

- 
- 
-  
- 
-  
-  

- 
- 
- 
- 
- 
- 

181 
293 
-  
474 
(21)  
453  

169 
285 
- 
454 
- 
454 

Within one year 
Between one and five years 
More than five years 
Total payments 
Less: Finance charges 
PV of lease payments 

Leases accounting policy 

The  determination  of  whether  an  arrangement  is,  or  contains,  a  lease  is  based  on  the  substance  of  the 
arrangement  at  the  inception  date.  The  arrangement  is  assessed  for  whether  fulfilment  of  the  arrangement  is 
dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset or assets, 
even if that right is not explicitly specified in an arrangement. 

Finance leases that transfer substantially all the risks and benefits incidental to ownership of the leased item to 
the Group, are capitalised at the commencement of the lease at the fair value of the leased property or, if lower, 
at the present value of the minimum lease payments. Lease payments are apportioned between finance charges 
and  reduction  of  the  lease  liability so  as  to  achieve a constant  rate of  interest  on  the  remaining  balance of  the 
liability. Finance charges are recognised in finance costs in the statement of profit or loss. 

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that 
the  Group  will  obtain  ownership  by  the  end  of  the  lease  term,  the  asset  is  depreciated  over  the  shorter  of  the 
estimated useful life of the asset and the lease term. 

Operating lease payments are recognised as an operating expense in the statement of profit or loss on a straight-
line basis over the lease term. 

22.3  Commitments 

At 30 June 2019, the Group had commitments of $4.185 million (2018: $4.591 million), relating to annual 
exploration/mining lease minimum annual expenditures. 

23.  SUBSEQUENT EVENTS 

The following significant events occurred after 30 June 2019: 

• 17 July 2019: ASX release of 2019 Mineral Resource and Ore Reserve Statement 
• 26 July 2019: ASX release of FY20 Operating Outlook 

24.  AUDITORS' REMUNERATION 

The auditor of Aurelia Metals Limited is Ernst & Young, who, from Acquisition date have also been appointed as 
the auditors of Peak Gold Asia Pacific (previously Deloitte). 

24.  AUDITORS' REMUNERATION (CONTINUED) 

Audit Services 

Audit and review work 

Non-Audit Services 

Tax compliance & out of scope work 

Tax reviews of the business combination 

Total Audit and Non-Audit Services 

There were no other services provided by Ernst & Young other than as disclosed above. 

25.  PARENT COMPANY INFORMATION 

Information relating to the parent entity of the Group, Aurelia Metals Limited: 

Current assets 

Non-current assets 

Total assets 

Current liabilities 

Non-current liabilities 

Total liabilities 

Net (liabilities)/assets 

Issued capital 

Reserves 

Accumulated losses 

Total shareholders' equity 

Profit/(Loss) for the year 

Commitments 

2019 

$000 

414 

81 

- 

495    

2018 

$000 

290 

23 

42 

355 

2019 

$000 

94,775 

8,400    

103,175    

75,641 

68    

75,709    

27,466 

2018 

$000 

43,531 

27,220 

70,751 

7,260 

- 

7,260 

63,491 

185,878 

9,055 

(167,467)    

27,466    

185,753 

6,658 

(128,920) 

63,491 

(38,547)    

(16,718) 

Parent 

2019 

$000 

48 

12    

60    

Parent 

2018 

$000 

54 

58 

112 

Commitments contracted for at reporting date but not recognised as liabilities are as follows: 

Within one year 

After one year but not longer than five years 

Commitments include lease of head office premises and lease of office equipment. 

26.  CONTINGENT LIABILITIES 

There are no contingent liabilities that require disclosure. 

27.  RELATED PARTY TRANSACTIONS 

detailed in the remuneration report. 

27.1 Transactions with other related parties 

Payments to Key Management Personnel during the year of $3.945 million (2018: $3.078 million) which is 

Directors fees in the amount of $134,750, and executive fees in the amount of $118,333, were paid to Lazy 7 Pty 

Ltd, a company of which Colin Johnstone is a Director, for services provided during the period (2018: Directors 

fees of $109,500). 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  73

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  74

 
 
 
 
 
 
 
  
 
 
 
 
 
  
  
  
 
 
  
 
  
  
  
  
  
  
  
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

22.  EXPENDITURE COMMITMENTS (CONTINUED) 

22.2  Finance lease and hire purchase commitments (continued) 

Minimum 

payments 

$000 

PV of 

payments 

$000 

Minimum 

payments 

$000 

PV of 

payments 

2019 

$000 

- 

- 

-  

- 

-  

-  

- 

- 

- 

- 

- 

- 

2018 

$000 

181 

293 

-  

474 

(21)  

453  

$000 

169 

285 

454 

- 

- 

454 

Within one year 

Between one and five years 

More than five years 

Total payments 

Less: Finance charges 

PV of lease payments 

Leases accounting policy 

The  determination  of  whether  an  arrangement  is,  or  contains,  a  lease  is  based  on  the  substance  of  the 

arrangement  at  the  inception  date.  The  arrangement  is  assessed  for  whether  fulfilment  of  the  arrangement  is 

dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset or assets, 

even if that right is not explicitly specified in an arrangement. 

Finance leases that transfer substantially all the risks and benefits incidental to ownership of the leased item to 

the Group, are capitalised at the commencement of the lease at the fair value of the leased property or, if lower, 

at the present value of the minimum lease payments. Lease payments are apportioned between finance charges 

and  reduction  of  the  lease  liability so  as  to  achieve a constant  rate of  interest  on  the  remaining  balance of  the 

liability. Finance charges are recognised in finance costs in the statement of profit or loss. 

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that 

the  Group  will  obtain  ownership  by  the  end  of  the  lease  term,  the  asset  is  depreciated  over  the  shorter  of  the 

estimated useful life of the asset and the lease term. 

Operating lease payments are recognised as an operating expense in the statement of profit or loss on a straight-

line basis over the lease term. 

22.3  Commitments 

At 30 June 2019, the Group had commitments of $4.185 million (2018: $4.591 million), relating to annual 

exploration/mining lease minimum annual expenditures. 

23.  SUBSEQUENT EVENTS 

The following significant events occurred after 30 June 2019: 

• 17 July 2019: ASX release of 2019 Mineral Resource and Ore Reserve Statement 

• 26 July 2019: ASX release of FY20 Operating Outlook 

24.  AUDITORS' REMUNERATION 

The auditor of Aurelia Metals Limited is Ernst & Young, who, from Acquisition date have also been appointed as 

the auditors of Peak Gold Asia Pacific (previously Deloitte). 

24.  AUDITORS' REMUNERATION (CONTINUED) 

Audit Services 
Audit and review work 
Non-Audit Services 
Tax compliance & out of scope work 
Tax reviews of the business combination 
Total Audit and Non-Audit Services 

2019 
$000 

414 

81 
- 
495    

2018 
$000 

290 

23 
42 
355 

There were no other services provided by Ernst & Young other than as disclosed above. 

25.  PARENT COMPANY INFORMATION 

Information relating to the parent entity of the Group, Aurelia Metals Limited: 

Current assets 
Non-current assets 
Total assets 
Current liabilities 
Non-current liabilities 
Total liabilities 
Net (liabilities)/assets 

Issued capital 
Reserves 
Accumulated losses 
Total shareholders' equity 

Profit/(Loss) for the year 

2019 
$000 

94,775 
8,400    
103,175    
75,641 

68    
75,709    
27,466 

2018 
$000 

43,531 
27,220 
70,751 
7,260 
- 
7,260 
63,491 

185,878 
9,055 
(167,467)    
27,466    

185,753 
6,658 
(128,920) 
63,491 

(38,547)    

(16,718) 

Commitments 
Commitments contracted for at reporting date but not recognised as liabilities are as follows: 

Within one year 
After one year but not longer than five years 

Parent 
2019 
$000 

48 
12    
60    

Parent 
2018 
$000 

54 
58 
112 

Commitments include lease of head office premises and lease of office equipment. 

26.  CONTINGENT LIABILITIES 

There are no contingent liabilities that require disclosure. 

27.  RELATED PARTY TRANSACTIONS 

Payments to Key Management Personnel during the year of $3.945 million (2018: $3.078 million) which is 
detailed in the remuneration report. 

27.1 Transactions with other related parties 

Directors fees in the amount of $134,750, and executive fees in the amount of $118,333, were paid to Lazy 7 Pty 
Ltd, a company of which Colin Johnstone is a Director, for services provided during the period (2018: Directors 
fees of $109,500). 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  73

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  74

 
 
 
 
 
 
 
  
 
 
 
 
 
  
  
  
 
 
  
 
  
  
  
  
  
  
  
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

27.  RELATED PARTY TRANSACTIONS  (CONTINUED) 

27.1 Transactions with other related parties (continued) 

Directors fees  in  the amount of  $85,588  and executive  fees  in  the  amount of $80,000, were  paid to  Kilorin  Pty  
Ltd, a company of which Mike Menzies is a Director, for services provided during the period (2018: Directors fees 
of $71,715). 

Directors fees in the amount of $52,966 and executive fees in the amount of $48,000 were paid to Hollach 
Services Pty Ltd, a company of which Paul Harris is a Director, for services provided during the period (2018: 
$nil). 

28.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

The significant accounting policies that have been adopted by Aurelia Metals Limited are as follows: 

Basis of preparation 

The  financial  report  is  a  general  purpose  financial  report,  which  has  been  prepared  in  accordance  with  the 
requirements  of  the  Corporations  Act  2001,  Australian  Accounting  Standards  and  other  authoritative 
pronouncements of the Australian Accounting Standards Board. 

The financial report also complies with the International Reporting Standards (IFRS) as issued by the 
International Accounting Standards Board. 

The financial report has been prepared on a historical cost basis, except for investments, derivative instruments, 
rehabilitation provisions and deferred acquisition costs which are measured at fair value. 

The financial report is presented in Australian dollars, which is the functional currency of the Company. 

Aurelia  Metals  Limited  is  a  company  of  the  kind  referred  to  in  ASIC  Corporations  (Rounding    in 
Financial/Directors’  Reports)  Instrument  2016/191  and  in  accordance  with  that  instrument,  amounts  in  the 
Financial/Directors’ Reports are rounded to the nearest thousand dollars, except where indicated otherwise. Due 
to rounding, numbers presented throughout this document may not add up precisely to the totals provided. 

Going concern 
The financial report has been prepared on the going concern basis which contemplates the continuity of normal 
business activities and the realisation of assets and the settlement of liabilities in the ordinary course of 
business. 

New accounting policies and interpretations 

Changes in accounting policy and disclosures 

The  accounting  policies  adopted  are  consistent  with  those  followed  in  the  preparation  of  the  Group’s  annual 
consolidated financial statements for the year ended 30 June 2018, except for the adoption of new and amended 
Australian Accounting Standards and AASB interpretations from 1 July 2018 as follows: 

28 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

(i) AASB 15: Revenue from Contracts with Customers, establishes a five-step model to account for revenue 

arising  from  contracts  with  customers  and  requires  that  revenue  is  recognised  at  an  amount  that  reflects  the 

consideration  to  which  an  entity  expects  to  be  entitled  in  exchange  for  transferring  goods  or  services  to  a 

customer. Under this new standard, the revenue recognition model has changed from one based on the transfer 

of  risk  and  reward  of  ownership  to  the  transfer  of  total  control.  The  standard  requires  entities  to  exercise 

judgement, taking into consideration all relevant facts and circumstances when applying each step of the model 

to contracts with customers, and requires extensive disclosures. 

The  effective  application  date  of  the  standard  for  the  Group  was  1  July  2018,  and  the  Group  has  adopted  the 

modified  retrospective  approach  from  that  date.  The  Group  has  made  no  adjustment  to  opening  retained 

earnings,  as  the  adjustment  resulting  from  the  application  of  AASB  15  and  relating  to  the  identification  of  the 

separate performance obligation for provision of freight service, at 1 July 2018 was immaterial. The Group has 

not provided additional disclosure of financial statement line items as they would have been presented under the 

previous  standard  (AASB  118:  Revenue),  as  these  items  would  not  be  materially  different  to  presentation  in 

accordance with AASB 15. 

The Groups revenue is derived from bullion and base metal sales: 

Bullion sales: For the sale of bullion, ownership and control are passed onto the customer at delivery. The sales 

for the period are not impacted by the new standard. 

Base  metal  sales:  For  base  metal  sales,  the  point  of  revenue  recognition  is  dependent  on  the  sales  contract 

which is on Cost, Insurance and Freight (CIF) incoterms at the Hera mine, and on Carriage and Insurance Paid 

(CIP) Incoterms for the Peak mine. As the transfer of title passes to the Buyer upon date of the Holding and Title 

Certificate and risk passes onto the Buyer once the material has been loaded into the carrying vessel at the Load 

port, the timing and amount of revenue recognised for the sale of concentrate is not impacted. 

AASB  15  introduces  the  concept  of  performance  obligations  that  are  defined  as  “distinct”  promised  goods  or 

services. For current freight arrangements, the seller must contract for, and pay the costs and freight necessary 

to deliver the goods to the port of destination. Consequently, the freight service on export concentrate shipments 

represents  a separate  performance  obligation  as defined under the new  standard.  This  means a  portion  of the 

revenue earned under these contracts, proportionate to the cost of the freight services, has been deferred and 

will be recognised at the time the obligation is fulfilled, that is, when the concentrate reaches its destination. For 

the year ended 30 June 2019, the amount of revenue that would be deferred in respect of shipments not yet at 

disport is $0.6 million. This has not been adjusted in the financial statements as it is not considered material. 

Management have assessed that Aurelia is acting as a principle with regards to the provision of freight services  

in  all  contracts  with  customers,  and  therefore  revenue  is  presented  gross  of  costs.  There  is  no  material  net  

impact on the Group’s consolidated profit for the current period, as the revenue deferred in respect of the freight 

performance obligation is not materially different from the cost. 

Reference 
AASB 15 
AASB 9 

AASB 2016-5 
AASB Interpretation 
22 

Application date of 
standard 

Title 
Revenue from Contracts with Customers (i)  1 January 2018 
1 January 2018 
Financial Instruments (ii) 
Amendments to Australian Accounting 
Standards - Classification and 
Measurement of Share-based Payment 
Transactions (iii) 
Foreign Currency transactions and 
Advance Consideration (iii) 

1 January 2018 

1 January 2018 

Application date for 
Group 
1 July 2018 
1 July 2018 

1 July 2018 

1 July 2018 

Several other amendments and interpretations apply for the first time in 2018/19, but do not have an impact on 
the  consolidated  financial  statements  of  the  Group.  The  Group  has  not  early  adopted  any  standards, 
interpretations or amendments that have been issued but are not yet effective. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  75

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  76

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

27.  RELATED PARTY TRANSACTIONS  (CONTINUED) 

27.1 Transactions with other related parties (continued) 

Directors fees  in  the amount of  $85,588  and executive  fees  in  the  amount of $80,000, were  paid to  Kilorin  Pty  

Ltd, a company of which Mike Menzies is a Director, for services provided during the period (2018: Directors fees 

Directors fees in the amount of $52,966 and executive fees in the amount of $48,000 were paid to Hollach 

Services Pty Ltd, a company of which Paul Harris is a Director, for services provided during the period (2018: 

28.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

The significant accounting policies that have been adopted by Aurelia Metals Limited are as follows: 

of $71,715). 

$nil). 

Basis of preparation 

The  financial  report  is  a  general  purpose  financial  report,  which  has  been  prepared  in  accordance  with  the 

requirements  of  the  Corporations  Act  2001,  Australian  Accounting  Standards  and  other  authoritative 

pronouncements of the Australian Accounting Standards Board. 

The financial report also complies with the International Reporting Standards (IFRS) as issued by the 

International Accounting Standards Board. 

The financial report has been prepared on a historical cost basis, except for investments, derivative instruments, 

rehabilitation provisions and deferred acquisition costs which are measured at fair value. 

The financial report is presented in Australian dollars, which is the functional currency of the Company. 

Aurelia  Metals  Limited  is  a  company  of  the  kind  referred  to  in  ASIC  Corporations  (Rounding    in 

Financial/Directors’  Reports)  Instrument  2016/191  and  in  accordance  with  that  instrument,  amounts  in  the 

Financial/Directors’ Reports are rounded to the nearest thousand dollars, except where indicated otherwise. Due 

to rounding, numbers presented throughout this document may not add up precisely to the totals provided. 

Going concern 

business. 

The financial report has been prepared on the going concern basis which contemplates the continuity of normal 

business activities and the realisation of assets and the settlement of liabilities in the ordinary course of 

New accounting policies and interpretations 

Changes in accounting policy and disclosures 

The  accounting  policies  adopted  are  consistent  with  those  followed  in  the  preparation  of  the  Group’s  annual 

consolidated financial statements for the year ended 30 June 2018, except for the adoption of new and amended 

Australian Accounting Standards and AASB interpretations from 1 July 2018 as follows: 

Reference 

AASB 15 

AASB 9 

Title 

Revenue from Contracts with Customers (i)  1 January 2018 

Financial Instruments (ii) 

1 January 2018 

Group 

1 July 2018 

1 July 2018 

Application date of 

Application date for 

standard 

Amendments to Australian Accounting 

Standards - Classification and 

Measurement of Share-based Payment 

AASB 2016-5 

Transactions (iii) 

1 January 2018 

1 July 2018 

AASB Interpretation 

Foreign Currency transactions and 

22 

Advance Consideration (iii) 

1 January 2018 

1 July 2018 

Several other amendments and interpretations apply for the first time in 2018/19, but do not have an impact on 

the  consolidated  financial  statements  of  the  Group.  The  Group  has  not  early  adopted  any  standards, 

interpretations or amendments that have been issued but are not yet effective. 

28 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

(i) AASB 15: Revenue from Contracts with Customers, establishes a five-step model to account for revenue 
arising  from  contracts  with  customers  and  requires  that  revenue  is  recognised  at  an  amount  that  reflects  the 
consideration  to  which  an  entity  expects  to  be  entitled  in  exchange  for  transferring  goods  or  services  to  a 
customer. Under this new standard, the revenue recognition model has changed from one based on the transfer 
of  risk  and  reward  of  ownership  to  the  transfer  of  total  control.  The  standard  requires  entities  to  exercise 
judgement, taking into consideration all relevant facts and circumstances when applying each step of the model 
to contracts with customers, and requires extensive disclosures. 

The  effective  application  date  of  the  standard  for  the  Group  was  1  July  2018,  and  the  Group  has  adopted  the 
modified  retrospective  approach  from  that  date.  The  Group  has  made  no  adjustment  to  opening  retained 
earnings,  as  the  adjustment  resulting  from  the  application  of  AASB  15  and  relating  to  the  identification  of  the 
separate performance obligation for provision of freight service, at 1 July 2018 was immaterial. The Group has 
not provided additional disclosure of financial statement line items as they would have been presented under the 
previous  standard  (AASB  118:  Revenue),  as  these  items  would  not  be  materially  different  to  presentation  in 
accordance with AASB 15. 

The Groups revenue is derived from bullion and base metal sales: 

Bullion sales: For the sale of bullion, ownership and control are passed onto the customer at delivery. The sales 
for the period are not impacted by the new standard. 

Base  metal  sales:  For  base  metal  sales,  the  point  of  revenue  recognition  is  dependent  on  the  sales  contract 
which is on Cost, Insurance and Freight (CIF) incoterms at the Hera mine, and on Carriage and Insurance Paid 
(CIP) Incoterms for the Peak mine. As the transfer of title passes to the Buyer upon date of the Holding and Title 
Certificate and risk passes onto the Buyer once the material has been loaded into the carrying vessel at the Load 
port, the timing and amount of revenue recognised for the sale of concentrate is not impacted. 

AASB  15  introduces  the  concept  of  performance  obligations  that  are  defined  as  “distinct”  promised  goods  or 
services. For current freight arrangements, the seller must contract for, and pay the costs and freight necessary 
to deliver the goods to the port of destination. Consequently, the freight service on export concentrate shipments 
represents  a separate  performance  obligation  as defined under the new  standard.  This  means a  portion  of the 
revenue earned under these contracts, proportionate to the cost of the freight services, has been deferred and 
will be recognised at the time the obligation is fulfilled, that is, when the concentrate reaches its destination. For 
the year ended 30 June 2019, the amount of revenue that would be deferred in respect of shipments not yet at 
disport is $0.6 million. This has not been adjusted in the financial statements as it is not considered material. 

Management have assessed that Aurelia is acting as a principle with regards to the provision of freight services  
in  all  contracts  with  customers,  and  therefore  revenue  is  presented  gross  of  costs.  There  is  no  material  net  
impact on the Group’s consolidated profit for the current period, as the revenue deferred in respect of the freight 
performance obligation is not materially different from the cost. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  75

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  76

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

28 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

28 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

(ii) AASB 9: Financial Instruments  replaces AASB 139: Financial Instruments: Recognition and Measurement 
for  the  Group  from  1  July  2018,  bringing  together  all  three  aspects  of  accounting  for  financial  instruments: 
classification and measurement; impairment; and hedge accounting. 

The adoption of AASB 9 impacts the measurement of equity instruments in respect of Aurelia’s investment in Sky 
Metals Limited. Under AASB 9, equity instruments are required to be measured at fair value through profit or loss 
(FVTPL), or fair value through other comprehensive income. The Company measures the investment at fair value 
through profit and loss. There is no material impact of adoption of the new standard in respect of the Company’s 
investments. 

The  Group  has  also  changed  its  approach  to  consideration  of  impairment  losses  for  financial  assets,  as  the 
adoption  of  AASB  9  introduces  a  forward-looking  expected  credit  loss  (ECL)  approach,  replacing  AASB  139’s 
incurred loss approach. ECLs are based on the difference between the contractual cash flows due in accordance 
with the contract and all the cash flows that the Group expects to receive. For ‘Trade and other receivables’, the 
Group  has  adopted  the  standard’s  simplified  approach  and  has  calculated  ECLs  based  on  lifetime  expected 
credit losses. Aurelia has not booked a provision on trade receivables as it is not considered material, based on 
the Group’s historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the 
economic  environment.  Aurelia’s  trade  receivables  are  generated  from  a  small  number  of  key  contracts  with 
customers, all with minimal credit risk. 

The hedging element of the new Financial Instruments standard does not affect the Group, as the Group does 
not apply hedge accounting. However, this may be subject to change as new transactions arise, so the Group will 
continue to monitor any further developments that may be captured by AASB 9. 

(iii) AASB 2016-5 Classification and Measurement of Share-based Payment Transactions does not have a 
material impact on the Company. 

(iv) AASB  22  Foreign  Currency  transactions  and  Advance  Consideration  does not have a material impact 
on the Company. 

Accounting standards and interpretations issued but not yet effective 

The following table sets out new Australian Accounting Standards and Interpretations that have been issued but 
are not yet mandatory and which have not been early adopted by the Company for the annual reporting period 
ending 30 June 2019. The Company is the process of assessing the impact of the new standards. 

Reference 
AASB 16 
AASB Interpretations 
23 

Title 
Leases (i) 

Application date of 
standard 
1 January 2019 

Application date for 
Group 

1 July 2019 

Uncertainty Over Income Tax Treatments 

1 January 2019 

1 July 2019 

(i)  AASB  16:  Leases  set  out  the  principles  for  the  recognition,  measurement,  presentation  and  disclosure  of 

leases,  and  requires  lessees  to  account  for  all  leases  under  a  single  on-balance  sheet  model  similar  to  the 

accounting for finance leases under AASB 117: Leases. 

At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease 

liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the  right-of-

use asset). Lessees will be required to separately recognise the interest expense on the lease liability  and the 

depreciation expense on the right-of-use asset. 

Lessees  will  be  also  required  to  remeasure  the  lease  liability  upon  the  occurrence  of  certain  events  (e.g.,  a 

change in the lease term, a change in future lease payments resulting from a change in an index or rate used to 

determine those payments). The lessee will generally recognise the amount of the remeasurement of the lease 

liability as an adjustment to the right-of-use asset. 

Management have undertaken an extensive analysis of contracts, including mining, crushing, reagent and power 

supply contracts,  which may fall within the provisions of AASB 16. In particular, the arrangements between the 

Company  and  the  mining  contractor,  for  both  Peak  and  Hera  mines,  are  complex  and  require  significant 

judgement in assessing the implications of the new standard. 

Where supplier contracts (or elements thereof) are deemed to be classified as ‘leases’ under AASB 16, the value 

of those elements will be brought onto the Balance Sheet, and the profit or loss recognition pattern will change 

with  certain  operating  costs  associated  with  current  lease  contracts  being  replaced  with  an  interest  and 

depreciation charge in the statement of profit or loss. 

The detailed impact assessment confirms a number of supplier agreements (or elements thereof) will be brought 

onto  the  Group  balance  sheet  as  leases,  and  therefore  the  impact  is  expected  to  be  material.  Appropriate 

systems and procedures  have  been  established  to  capture  the necessary  information  from  contracts  within the 

scope of AASB 16 to enable compliance with the new standard prior to its effective date. 

The  Group  has  elected  to  adopt  AASB  16  retrospectively  with  the  cumulative  effect  of  initially  applying  the 

standard recognised at the date of initial application, and as such shall not restate comparative information. On 

adoption,  the  Group  will  measure  the  lease  liability  at  the  present  value  of  the  remaining  lease  payments, 

discounted using the Group’s incremental borrowing rate at the date of initial application. The Group will measure 

the right-of-use asset at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued 

lease  payments  relating  to  any  leases  recognised  in  the  statement  of  financial  position  immediately  before  the 

date of initial application. 

The lease liability and offsetting right-of-use asset to be recognised on the balance sheet is approximately $18 

million. 

standard. 

(ii)  AASB  Interpretation  23:  Uncertainty  over  Income  Tax  Treatments  provides  new  guidance  on  the 

application of AASB 112 Income Taxes in situations where there is uncertainty over the appropriate income tax 

treatment of a transaction or class of transactions. The Group is still in the process of assessing the impact of the 

All other new Australian Accounting Standards that have been issued but are not yet effective are not expected to 

have a material impact on the group. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  77

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  78

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

28 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

28 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

(ii) AASB 9: Financial Instruments  replaces AASB 139: Financial Instruments: Recognition and Measurement 

for  the  Group  from  1  July  2018,  bringing  together  all  three  aspects  of  accounting  for  financial  instruments: 

classification and measurement; impairment; and hedge accounting. 

The adoption of AASB 9 impacts the measurement of equity instruments in respect of Aurelia’s investment in Sky 

Metals Limited. Under AASB 9, equity instruments are required to be measured at fair value through profit or loss 

(FVTPL), or fair value through other comprehensive income. The Company measures the investment at fair value 

through profit and loss. There is no material impact of adoption of the new standard in respect of the Company’s 

investments. 

The  Group  has  also  changed  its  approach  to  consideration  of  impairment  losses  for  financial  assets,  as  the 

adoption  of  AASB  9  introduces  a  forward-looking  expected  credit  loss  (ECL)  approach,  replacing  AASB  139’s 

incurred loss approach. ECLs are based on the difference between the contractual cash flows due in accordance 

with the contract and all the cash flows that the Group expects to receive. For ‘Trade and other receivables’, the 

Group  has  adopted  the  standard’s  simplified  approach  and  has  calculated  ECLs  based  on  lifetime  expected 

credit losses. Aurelia has not booked a provision on trade receivables as it is not considered material, based on 

the Group’s historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the 

economic  environment.  Aurelia’s  trade  receivables  are  generated  from  a  small  number  of  key  contracts  with 

customers, all with minimal credit risk. 

The hedging element of the new Financial Instruments standard does not affect the Group, as the Group does 

not apply hedge accounting. However, this may be subject to change as new transactions arise, so the Group will 

continue to monitor any further developments that may be captured by AASB 9. 

(iii) AASB 2016-5 Classification and Measurement of Share-based Payment Transactions does not have a 

material impact on the Company. 

(iv) AASB  22  Foreign  Currency  transactions  and  Advance  Consideration  does not have a material impact 

on the Company. 

Accounting standards and interpretations issued but not yet effective 

The following table sets out new Australian Accounting Standards and Interpretations that have been issued but 

are not yet mandatory and which have not been early adopted by the Company for the annual reporting period 

ending 30 June 2019. The Company is the process of assessing the impact of the new standards. 

Reference 

AASB 16 

Title 

Leases (i) 

AASB Interpretations 

23 

Uncertainty Over Income Tax Treatments 

1 January 2019 

1 July 2019 

Application date of 

Application date for 

standard 

Group 

1 January 2019 

1 July 2019 

(i)  AASB  16:  Leases  set  out  the  principles  for  the  recognition,  measurement,  presentation  and  disclosure  of 
leases,  and  requires  lessees  to  account  for  all  leases  under  a  single  on-balance  sheet  model  similar  to  the 
accounting for finance leases under AASB 117: Leases. 

At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease 
liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the  right-of-
use asset). Lessees will be required to separately recognise the interest expense on the lease liability  and the 
depreciation expense on the right-of-use asset. 

Lessees  will  be  also  required  to  remeasure  the  lease  liability  upon  the  occurrence  of  certain  events  (e.g.,  a 
change in the lease term, a change in future lease payments resulting from a change in an index or rate used to 
determine those payments). The lessee will generally recognise the amount of the remeasurement of the lease 
liability as an adjustment to the right-of-use asset. 

Management have undertaken an extensive analysis of contracts, including mining, crushing, reagent and power 
supply contracts,  which may fall within the provisions of AASB 16. In particular, the arrangements between the 
Company  and  the  mining  contractor,  for  both  Peak  and  Hera  mines,  are  complex  and  require  significant 
judgement in assessing the implications of the new standard. 

Where supplier contracts (or elements thereof) are deemed to be classified as ‘leases’ under AASB 16, the value 
of those elements will be brought onto the Balance Sheet, and the profit or loss recognition pattern will change 
with  certain  operating  costs  associated  with  current  lease  contracts  being  replaced  with  an  interest  and 
depreciation charge in the statement of profit or loss. 

The detailed impact assessment confirms a number of supplier agreements (or elements thereof) will be brought 
onto  the  Group  balance  sheet  as  leases,  and  therefore  the  impact  is  expected  to  be  material.  Appropriate 
systems and procedures  have  been  established  to  capture  the necessary  information  from  contracts  within the 
scope of AASB 16 to enable compliance with the new standard prior to its effective date. 

The  Group  has  elected  to  adopt  AASB  16  retrospectively  with  the  cumulative  effect  of  initially  applying  the 
standard recognised at the date of initial application, and as such shall not restate comparative information. On 
adoption,  the  Group  will  measure  the  lease  liability  at  the  present  value  of  the  remaining  lease  payments, 
discounted using the Group’s incremental borrowing rate at the date of initial application. The Group will measure 
the right-of-use asset at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued 
lease  payments  relating  to  any  leases  recognised  in  the  statement  of  financial  position  immediately  before  the 
date of initial application. 

The lease liability and offsetting right-of-use asset to be recognised on the balance sheet is approximately $18 
million. 

(ii)  AASB  Interpretation  23:  Uncertainty  over  Income  Tax  Treatments  provides  new  guidance  on  the 
application of AASB 112 Income Taxes in situations where there is uncertainty over the appropriate income tax 
treatment of a transaction or class of transactions. The Group is still in the process of assessing the impact of the 
standard. 

All other new Australian Accounting Standards that have been issued but are not yet effective are not expected to 
have a material impact on the group. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  77

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  78

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED 

28 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

Aurelia  Metals  Limited  is  a  company  of  the  kind  referred  to  in  ASIC  Corporations  (Rounding    in 

Financial/Directors’  Reports)  Instrument  2016/191  and  in  accordance  with  that  instrument,  amounts  in  the 

Financial/Directors’ Reports are rounded to the nearest thousand dollars, except where indicated otherwise. Due 

to rounding, numbers presented throughout this document may not add up precisely to the totals provided. 

The financial report has been prepared on a historical cost basis, except for derivative instruments, rehabilitation 

provisions and deferred acquisition costs which are measured at fair value. 

28 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

Basis of consolidation 

The consolidated financial statements comprise the financial statements of Aurelia Metals Limited and its 
subsidiaries. 

Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the 
investee  and  has  the ability  to  affect  those  returns  through  its power  over  the  investee. Specifically,  the  Group 
controls an investee if and only if the Group has: 
• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the 
investee). 
• Exposure, or rights, to variable returns from its involvement with the investee, and 
• The ability to use its power over the investee to affect its returns 

When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all 
relevant facts and circumstances in assessing whether it has power over an investee, including: 
• The contractual arrangement with the other vote holders of the investee 
• Rights arising from other contractual arrangements 
• The Group’s voting rights and potential voting rights. 

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are 
changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group 
obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, 
income and  expenses  of a  subsidiary  acquired or  disposed  of  during  the  year  are  included  in  the  statement of 
comprehensive  income  from  the  date  the  Group  gains  control  until  the  date  the  Group  ceases  to  control  the 
subsidiary. 

The  financial  statements  of  subsidiaries  are  prepared  for  the  same  reporting  period  as  the  Company,  using 
consistent  accounting  policies.  Adjustments  are  made  to  bring  into  line  any  dissimilar  accounting  policies  that 
may  exist.  In  preparing  the  consolidated  financial  statements,  all  intercompany  balances  and  transactions, 
income and expenses and profit and losses resulting from intra-group transactions, have been eliminated in full. 

Foreign Currency 

Functional and Presentation Currency 
Both the functional and presentation currency of Aurelia Metals Limited and its controlled entities is Australian 
Dollars ($ or A$). 

Transactions and Balances 
Transactions in foreign currency are initially recorded in the foreign currency at the exchange rates ruling at the 
date of transaction. The subsequent payment of receipt of funds related to a transaction is translated at the rate 
applicable  on  the date  of  payment  or  receipt.  Monetary assets  and  liabilities  denominated  in  foreign currencies 
are re-translated at the rate of exchange ruling at the reporting date. All exchange differences in the consolidated 
financial statements are taken to the Income Statement as gain or loss on exchange. 

Cash and cash equivalents 

Cash and cash equivalents in the balance sheet comprise cash at bank and on hand. 

For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as 
defined above. 

Borrowing costs 

Borrowing  costs  directly  attributable  to  the  acquisition,  construction  or  production  of  an  asset  that  necessarily 
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the 
asset.  All  other  borrowing  costs  are  expensed  in  the  period  in  which  they  occur.  Borrowing  costs  consist  of 
interest and other costs that an entity incurs in connection with the borrowing of funds. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  79

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  80

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 

NOTES TO FINANCIAL STATEMENTS (CONTINUED 

28 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

Aurelia  Metals  Limited  is  a  company  of  the  kind  referred  to  in  ASIC  Corporations  (Rounding    in 
Financial/Directors’  Reports)  Instrument  2016/191  and  in  accordance  with  that  instrument,  amounts  in  the 
Financial/Directors’ Reports are rounded to the nearest thousand dollars, except where indicated otherwise. Due 
to rounding, numbers presented throughout this document may not add up precisely to the totals provided. 

The financial report has been prepared on a historical cost basis, except for derivative instruments, rehabilitation 
provisions and deferred acquisition costs which are measured at fair value. 

28 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

Basis of consolidation 

subsidiaries. 

The consolidated financial statements comprise the financial statements of Aurelia Metals Limited and its 

Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the 

investee  and  has  the ability  to  affect  those  returns  through  its power  over  the  investee. Specifically,  the  Group 

controls an investee if and only if the Group has: 

• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the 

investee). 

• Exposure, or rights, to variable returns from its involvement with the investee, and 

• The ability to use its power over the investee to affect its returns 

When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all 

relevant facts and circumstances in assessing whether it has power over an investee, including: 

• The contractual arrangement with the other vote holders of the investee 

• Rights arising from other contractual arrangements 

• The Group’s voting rights and potential voting rights. 

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are 

changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group 

obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, 

income and  expenses  of a  subsidiary  acquired or  disposed  of  during  the  year  are  included  in  the  statement of 

comprehensive  income  from  the  date  the  Group  gains  control  until  the  date  the  Group  ceases  to  control  the 

subsidiary. 

The  financial  statements  of  subsidiaries  are  prepared  for  the  same  reporting  period  as  the  Company,  using 

consistent  accounting  policies.  Adjustments  are  made  to  bring  into  line  any  dissimilar  accounting  policies  that 

may  exist.  In  preparing  the  consolidated  financial  statements,  all  intercompany  balances  and  transactions, 

income and expenses and profit and losses resulting from intra-group transactions, have been eliminated in full. 

Foreign Currency 

Functional and Presentation Currency 

Dollars ($ or A$). 

Transactions and Balances 

Both the functional and presentation currency of Aurelia Metals Limited and its controlled entities is Australian 

Transactions in foreign currency are initially recorded in the foreign currency at the exchange rates ruling at the 

date of transaction. The subsequent payment of receipt of funds related to a transaction is translated at the rate 

applicable  on  the date  of  payment  or  receipt.  Monetary assets  and  liabilities  denominated  in  foreign currencies 

are re-translated at the rate of exchange ruling at the reporting date. All exchange differences in the consolidated 

financial statements are taken to the Income Statement as gain or loss on exchange. 

Cash and cash equivalents 

Cash and cash equivalents in the balance sheet comprise cash at bank and on hand. 

For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as 

defined above. 

Borrowing costs 

Borrowing  costs  directly  attributable  to  the  acquisition,  construction  or  production  of  an  asset  that  necessarily 

takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the 

asset.  All  other  borrowing  costs  are  expensed  in  the  period  in  which  they  occur.  Borrowing  costs  consist  of 

interest and other costs that an entity incurs in connection with the borrowing of funds. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  79

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  80

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTORS' DECLARATION 

In accordance with a resolution of the Directors of Aurelia Metals Limited, I state that: 

In the opinion of the Directors: 

The financial statements and notes of the consolidated entity are in accordance with the Corporations Act 2001, 
including: 

• 

• 

Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2019 and of 
its performance for the year ended on that date; and 
Complying with Australian Accounting Standards (including the Australian Accounting 
Interpretations) and the Corporations Regulations 2001. 

The Financial Statements and notes also comply with International Financial Reporting Standards as disclosed in 
Note 28 and 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 has been made after receiving the declarations required to be made to the Directors in 
accordance with section 295A of the Corporations Act 2001 for the financial year ending 30 June 2019. 

On behalf of the Board, 

Colin Johnstone 
Executive Chairman & Acting Chief Executive Officer 

23 August 2019 

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 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 

2019, the consolidated statement of comprehensive income, consolidated statement of changes in equity 

and 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. 

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 

giving a true and fair view of the consolidated financial position of the Group as at 30 June 2019 

and of its consolidated financial performance for the year ended on that date; and 

complying with Australian Accounting Standards and the Corporations Regulations 2001. 

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under 

those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial 

Report section of our report. We are independent of the Group in accordance with the auditor 

independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting 

Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the 

Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other 

ethical responsibilities in accordance with the Code. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 

2001, including: 

a) 

b) 

Basis for Opinion 

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 report. 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. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  81

A member firm of Ernst & Young Global Limited 

Liability limited by a scheme approved under Professional Standards Legislation 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTORS' DECLARATION 

In accordance with a resolution of the Directors of Aurelia Metals Limited, I state that: 

In the opinion of the Directors: 

The financial statements and notes of the consolidated entity are in accordance with the Corporations Act 2001, 

including: 

• 

• 

Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2019 and of 

its performance for the year ended on that date; and 

Complying with Australian Accounting Standards (including the Australian Accounting 

Interpretations) and the Corporations Regulations 2001. 

they become due and payable. 

On behalf of the Board, 

This declaration has been made after receiving the declarations required to be made to the Directors in 

accordance with section 295A of the Corporations Act 2001 for the financial year ending 30 June 2019. 

Executive Chairman & Acting Chief Executive Officer 

Colin Johnstone 

23 August 2019 

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 Audit of the Financial Report 

The Financial Statements and notes also comply with International Financial Reporting Standards as disclosed in 

Note 28 and there are reasonable grounds to believe that the Company will be able to pay its debts as and when 

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 
2019, the consolidated statement of comprehensive income, consolidated statement of changes in equity 
and 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. 

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 
2001, including: 

a) 

b) 

giving a true and fair view of the consolidated financial position of the Group as at 30 June 2019 
and of its consolidated financial performance for the year ended on that date; and 

complying with Australian Accounting Standards and the Corporations Regulations 2001. 

Basis for Opinion 

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under 
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial 
Report section of our report. We are independent of the Group in accordance with the auditor 
independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting 
Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the 
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other 
ethical responsibilities in accordance with the Code. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 
our opinion. 

Key Audit Matters 

Key audit matters are those matters that, in our professional 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 report. 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. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  81

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carrying value of Mine Properties and Property, Plant and Equipment 
Refer to Note 8 and Note 9 in the financial report 

Mine rehabilitation and closure provisions 

Refer to Note 20 in the financial report 

Why significant 

How our audit addressed the key audit matter 

At 30 June 2019, the Group’s consolidated 
statement of financial position included $173m 
of Mine Properties and Property, Plant and 
Equipment. 

The Group considered that no indicators of 
impairment existed at 30 June 2019, which 
would require an impairment test to be 
performed in accordance with Australian 
Accounting Standards. 

The Group also considered whether there were 
indicators that past impairment losses recorded 
at the Hera mine should be reversed and 
therefore performed a test for impairment 
reversal. The results of the assessment 
concluded no reversal of previously recognized 
impairment was required. 

The carrying value of Mine Properties and 
Property, Plant and Equipment was considered a 
key audit matter, given the significant judgement 
and inherent uncertainty involved in the 
assessment of whether impairment indicators 
existed or reversal of previously recognised 
impairment was required. 

We assessed whether the methodology and principles 
applied by the Group met the requirements of 
Australian Accounting Standard. 

We considered the Group’s assessment of whether 
there were indicators of impairment by reference to 
the relevant commodity prices, exchange rates and 
reserves and resources estimates. 

We involved our valuation specialists in performing 
the following procedures relating to the test for an 
impairment reversal for the Hera mine: 

 We assessed the valuation methodology and 

the appropriateness of key assumptions such 
as the forecast commodity prices, exchanges 
rates, and discount rates to available 
external data; 

 We compared future production forecasts to 
estimates of reserves and resources; and 

 We assessed management’s sensitivity 

analysis and evaluated reasonably possible 
change in assumptions. 

We assessed the adequacy of the financial report 
disclosures contained in Note 8 and Note 9 of the 
financial report. 

Why significant 

How our audit addressed the key audit matter 

As a consequence of its operations, the Group 

Our audit procedures included the following: 

incurs obligations to restore and rehabilitate the 

environment. Rehabilitation activities are 

governed by a combination of legislative 

requirements and Group policies. 

Estimating the costs associated with 

rehabilitation activities requires considerable 

judgement in relation to factors such as when 

the rehabilitation will take place, the time period 

required for the rehabilitation to be effective, 

the extent and costs of rehabilitation activities, 

technological changes, regulatory changes, cost 

increases, and changes in economic assumptions 

including an appropriate rate to discount these 

future costs back to their net present value. 

This was considered to be a key audit matter due 

to the significant judgments and assumptions 

involved in the calculation of these mine 

rehabilitation and closure provisions. 

►  Assessment of the process applied in 

quantification, review and approval of the 

mine rehabilitation and closure provisions. 

►  Consideration of the reasonableness of cost 

rates applied and comparison to government 

specified cost rates. 

►  Consideration of the qualifications, 

competence and objectivity of experts, both 

internal and external to the Group, who were 

involved in the derivation and review of the 

mine rehabilitation and closure models. 

►  Testing the mathematical accuracy of the 

rehabilitation models to support the 

provision balance. 

►  Consideration of the discount rate applied by 

the Group. 

► 

Evaluation of the appropriateness of 

accounting treatment applied to changes in 

the rehabilitation provision, including 

whether the impact is expensed or 

capitalized. 

We assessed the adequacy of the financial report 

disclosures contained in Note 20 and of the financial 

report. 

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 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
Carrying value of Mine Properties and Property, Plant and Equipment 

Refer to Note 8 and Note 9 in the financial report 

Mine rehabilitation and closure provisions 
Refer to Note 20 in the financial report 

Why significant 

How our audit addressed the key audit matter 

At 30 June 2019, the Group’s consolidated 

statement of financial position included $173m 

We assessed whether the methodology and principles 

applied by the Group met the requirements of 

of Mine Properties and Property, Plant and 

Australian Accounting Standard. 

Equipment. 

The Group considered that no indicators of 

impairment existed at 30 June 2019, which 

would require an impairment test to be 

performed in accordance with Australian 

Accounting Standards. 

The Group also considered whether there were 

indicators that past impairment losses recorded 

at the Hera mine should be reversed and 

therefore performed a test for impairment 

reversal. The results of the assessment 

concluded no reversal of previously recognized 

impairment was required. 

The carrying value of Mine Properties and 

Property, Plant and Equipment was considered a 

key audit matter, given the significant judgement 

and inherent uncertainty involved in the 

assessment of whether impairment indicators 

existed or reversal of previously recognised 

impairment was required. 

We considered the Group’s assessment of whether 

there were indicators of impairment by reference to 

the relevant commodity prices, exchange rates and 

reserves and resources estimates. 

We involved our valuation specialists in performing 

the following procedures relating to the test for an 

impairment reversal for the Hera mine: 

 We assessed the valuation methodology and 

the appropriateness of key assumptions such 

as the forecast commodity prices, exchanges 

rates, and discount rates to available 

external data; 

 We compared future production forecasts to 

estimates of reserves and resources; and 

 We assessed management’s sensitivity 

analysis and evaluated reasonably possible 

change in assumptions. 

We assessed the adequacy of the financial report 

disclosures contained in Note 8 and Note 9 of the 

financial report. 

Why significant 

How our audit addressed the key audit matter 

As a consequence of its operations, the Group 
incurs obligations to restore and rehabilitate the 
environment. Rehabilitation activities are 
governed by a combination of legislative 
requirements and Group policies. 

Our audit procedures included the following: 

►  Assessment of the process applied in 

quantification, review and approval of the 
mine rehabilitation and closure provisions. 

Estimating the costs associated with 
rehabilitation activities requires considerable 
judgement in relation to factors such as when 
the rehabilitation will take place, the time period 
required for the rehabilitation to be effective, 
the extent and costs of rehabilitation activities, 
technological changes, regulatory changes, cost 
increases, and changes in economic assumptions 
including an appropriate rate to discount these 
future costs back to their net present value. 

This was considered to be a key audit matter due 
to the significant judgments and assumptions 
involved in the calculation of these mine 
rehabilitation and closure provisions. 

►  Consideration of the reasonableness of cost 
rates applied and comparison to government 
specified cost rates. 

►  Consideration of the qualifications, 

competence and objectivity of experts, both 
internal and external to the Group, who were 
involved in the derivation and review of the 
mine rehabilitation and closure models. 

►  Testing the mathematical accuracy of the 
rehabilitation models to support the 
provision balance. 

►  Consideration of the discount rate applied by 

the Group. 

► 

Evaluation of the appropriateness of 
accounting treatment applied to changes in 
the rehabilitation provision, including 
whether the impact is expensed or 
capitalized. 

We assessed the adequacy of the financial report 
disclosures contained in Note 20 and of the financial 
report. 

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 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
Information Other than the Financial Report and Auditor’s Report Thereon 

The directors are responsible for the other information. The other information comprises the information 
included in the Company’s 2019 Annual Report other than the financial report and our 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 and will not 
express any form of assurance conclusion thereon, with the exception of the Remuneration Report and 
our related assurance opinion. 

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 on the work we have performed on the other information obtained prior to the date of this 
auditor’s report, we conclude that there is a material misstatement of this other information, we are 
required to report that fact. We have nothing to report in this regard. 

Responsibilities of the Directors for the Financial Report 

The directors of the Company are responsible for the preparation of the financial report that gives a true 
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for 
such internal control as the directors determine is necessary to enable the preparation of the financial 
report that gives a true and fair view and is free from material misstatement, whether due to fraud or 
error. 

In preparing the financial report, the directors are responsible for assessing the Group’s ability to 
continue as a going concern, disclosing, as applicable, matters relating 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 the Australian Auditing Standards, we exercise professional 
judgment and maintain professional scepticism 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 Group’s internal control. 

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting 

estimates and related disclosures made by the directors. 

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. 

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 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Information Other than the Financial Report and Auditor’s Report Thereon 

The directors are responsible for the other information. The other information comprises the information 

included in the Company’s 2019 Annual Report other than the financial report and our 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 and will not 

express any form of assurance conclusion thereon, with the exception of the Remuneration Report and 

our related assurance opinion. 

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 on the work we have performed on the other information obtained prior to the date of this 

auditor’s report, we conclude that there is a material misstatement of this other information, we are 

required to report that fact. We have nothing to report in this regard. 

Responsibilities of the Directors for the Financial Report 

The directors of the Company are responsible for the preparation of the financial report that gives a true 

and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for 

such internal control as the directors determine is necessary to enable the preparation of the financial 

report that gives a true and fair view and is free from material misstatement, whether due to fraud or 

error. 

In preparing the financial report, the directors are responsible for assessing the Group’s ability to 

continue as a going concern, disclosing, as applicable, matters relating 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 the Australian Auditing Standards, we exercise professional 

judgment and maintain professional scepticism 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 Group’s internal control. 

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting 
estimates and related disclosures made by the directors. 

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. 

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 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Report on the Audit of the Remuneration Report 

Opinion on the Remuneration Report 

We have audited the Remuneration Report included in pages 20 to 28 of the directors' report for the year 
ended 30 June 2019. 

In our opinion, the Remuneration Report of Aurelia Metals Limited for the year ended 30 June 2019, 
complies with section 300A of the Corporations Act 2001. 

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 

Scott Jarrett 
Partner 
Sydney 
23 August 2019 

ADDITIONAL ASX INFORMATION AS AT 2 OCTOBER 2019 

Number of holders of each class of security 

There are 5,599 holders of ordinary shares in the Company (quoted) and 8 holders of performance 

rights (unquoted). These are the only classes of equity securities. 

20 largest holders of ordinary shares 

      Holder Name 

1    J P MORGAN NOMINEES AUSTRALIA 

Current Securities 

     218,145,551 

186,686,982 

2    HSBC CUSTODY NOMINEES 

3    CITICORP NOMINEES PL 

4    NATIONAL NOMINEES LTD 

5     BRISPOT NOMINEES PL 

6     UBS NOMINEES PL 

7     BUTTONWOOD NOMINEES PL 

8     CS THIRD NOMINEES PL 

9     BNP PARIBAS NOMS PL 

10   KERONGA DEVELOPMENTS PL* 

11   BNP PARIBAS NOMS PL 

12   KURRABA INV PL 

13   WARBONT NOMINEES PL 

14   BNP PARIBAS NOMINEES PL 

15   HSBC CUSTODY NOMINEES 

16   SANDHURST TRUSTEES LTD 

17   HSBC CUSTODY NOM AUST LTD 

18   BNP PARIBAS NOMS (NZ) LTD 

19   NAVIGATOR AUSTRALIA LTD 

20   CS FOURTH NOMINEES PL 

      TOP 20 TOTAL 

      OTHER SHAREHOLDERS 

      TOTAL ON ISSUE 

*Denotes merged holders 

Size of holding 

1 - 1,000 

1,001 - 5,000 

5,001 - 10,000 

Over 100,000 

TOTAL  

93,735,796 

41,932,111 

27,646,047 

25,605,290 

15,970,726 

7,338,878 

7,168,125 

7,041,964 

4,500,000 

3,984,412 

3,750,091 

2,919,623 

2,861,030 

2,541,964 

2,480,764 

2,365,396 

2,349,797 

2,049,398 

662,328,797 

211,092,500 

873,421,297 

% 

24,98 

21.37 

10.73 

4.80 

3.17 

2.93 

1.83 

0.84 

0.82 

0.81 

0.68 

0.46 

0.43 

0.33 

0.33 

0.28 

0.27 

0.27 

0.27 

0.23 

75.83 

24.20 

100% 

Number of 

holders 

Number of 

% of issued 

shares 

capital 

511 

243,171 

0.03% 

1,528 

4,493,387 

0.51% 

929 

7,641,477 

0.87% 

422 

783,097,982 

89.66% 

5,575 

873,421,297 

100% 

10,001 - 100,000 

2,185 

77,945,280 

8.92% 

Distribution Schedule of Holders of Ordinary Shares 

Unquoted Performance Rights 

The only class of unquoted equity securities on issue is Performance Rights. All of the Performance Rights on 

issue have been issued under the Company’s Performance Rights Plan. The number of Performance Rights on 

issue and the number of holders of Performance Rights is set out in the table below: 

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  88

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Report on the Audit of the Remuneration Report 

Opinion on the Remuneration Report 

In our opinion, the Remuneration Report of Aurelia Metals Limited for the year ended 30 June 2019, 

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 

ended 30 June 2019. 

Responsibilities 

Auditing Standards. 

Ernst & Young 

Scott Jarrett 

Partner 

Sydney 

23 August 2019 

We have audited the Remuneration Report included in pages 20 to 28 of the directors' report for the year 

20 largest holders of ordinary shares 

ADDITIONAL ASX INFORMATION AS AT 2 OCTOBER 2019 

Number of holders of each class of security 

There are 5,599 holders of ordinary shares in the Company (quoted) and 8 holders of performance 
rights (unquoted). These are the only classes of equity securities. 

      Holder Name 
1    J P MORGAN NOMINEES AUSTRALIA 
2    HSBC CUSTODY NOMINEES 
3    CITICORP NOMINEES PL 
4    NATIONAL NOMINEES LTD 
5     BRISPOT NOMINEES PL 
6     UBS NOMINEES PL 
7     BUTTONWOOD NOMINEES PL 
8     CS THIRD NOMINEES PL 
9     BNP PARIBAS NOMS PL 
10   KERONGA DEVELOPMENTS PL* 
11   BNP PARIBAS NOMS PL 
12   KURRABA INV PL 
13   WARBONT NOMINEES PL 
14   BNP PARIBAS NOMINEES PL 
15   HSBC CUSTODY NOMINEES 
16   SANDHURST TRUSTEES LTD 
17   HSBC CUSTODY NOM AUST LTD 
18   BNP PARIBAS NOMS (NZ) LTD 
19   NAVIGATOR AUSTRALIA LTD 
20   CS FOURTH NOMINEES PL 
      TOP 20 TOTAL 
      OTHER SHAREHOLDERS 
      TOTAL ON ISSUE 

*Denotes merged holders 

Current Securities 
     218,145,551 
186,686,982 
93,735,796 
41,932,111 
27,646,047 
25,605,290 
15,970,726 
7,338,878 
7,168,125 
7,041,964 
4,500,000 
3,984,412 
3,750,091 
2,919,623 
2,861,030 
2,541,964 
2,480,764 
2,365,396 
2,349,797 
2,049,398 
662,328,797 
211,092,500 
873,421,297 

% 
24,98 
21.37 
10.73 
4.80 
3.17 
2.93 
1.83 
0.84 
0.82 
0.81 
0.68 
0.46 
0.43 
0.33 
0.33 
0.28 
0.27 
0.27 
0.27 
0.23 
75.83 
24.20 
100% 

Distribution Schedule of Holders of Ordinary Shares 

Size of holding 

1 - 1,000 

1,001 - 5,000 

5,001 - 10,000 

Number of 
holders 

Number of 
shares 

% of issued 
capital 

511 

243,171 

0.03% 

1,528 

4,493,387 

0.51% 

929 

7,641,477 

0.87% 

10,001 - 100,000 

2,185 

77,945,280 

8.92% 

Over 100,000 

TOTAL  

422 

783,097,982 

89.66% 

5,575 

873,421,297 

100% 

Unquoted Performance Rights 

The only class of unquoted equity securities on issue is Performance Rights. All of the Performance Rights on 
issue have been issued under the Company’s Performance Rights Plan. The number of Performance Rights on 
issue and the number of holders of Performance Rights is set out in the table below: 

A member firm of Ernst & Young Global Limited 

Liability limited by a scheme approved under Professional Standards Legislation 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  88

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class 

Number of Holders 

Number of Performance 
Rights 

Class 16C 

Class 18A 

Class 18B 

Total 

1 

2 

5 

8 

750,000 

770,893 

1,384,314 

2,905,207 

Testing Date 

30 June 2020 

30 June 2020 

30 June 2021 

All holders of Performance Rights hold more than 100,001 Performance Rights. 

Substantial holders 

Substantial holders as disclosed in substantial holding notices given to the Company were as follows: 

Name of substantial holder 

Number of shares 

% of issued capital 

Mitsubishi UFJ Financial Group 

69,486,109 

AustralianSuper Pty Ltd 

52,970,645 

Van Eck Associates Corporation 

49,596,689 

8.01 

6.06 

5.71 

Note: Substantial holders are only required to notify the Company if there is a movement in their  interests of at 
least  1%.  As  a  result  of  movements  of  less  than  1%,  there  may  be  a  difference  between  the  details  in  a 
substantial holding notice and other disclosures in this report. 

Voting rights 

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Unmarketable parcels 

There are 561 holders of less than a marketable parcel of ordinary shares based on the closing price of the 
Company’s shares on 2 October 2019 of $0.45. 

Restricted Securities 

There are no restricted securities or securities subject to voluntary escrow on issue. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  89

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S

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class 

Number of Holders 

Number of Performance 

Class 16C 

Class 18A 

Class 18B 

Total 

1 

2 

5 

8 

Rights 

750,000 

770,893 

1,384,314 

2,905,207 

Testing Date 

30 June 2020 

30 June 2020 

30 June 2021 

All holders of Performance Rights hold more than 100,001 Performance Rights. 

Substantial holders 

Substantial holders as disclosed in substantial holding notices given to the Company were as follows: 

Name of substantial holder 

Number of shares 

% of issued capital 

Mitsubishi UFJ Financial Group 

69,486,109 

AustralianSuper Pty Ltd 

52,970,645 

Van Eck Associates Corporation 

49,596,689 

8.01 

6.06 

5.71 

Note: Substantial holders are only required to notify the Company if there is a movement in their  interests of at 

least  1%.  As  a  result  of  movements  of  less  than  1%,  there  may  be  a  difference  between  the  details  in  a 

substantial holding notice and other disclosures in this report. 

Voting rights 

Ordinary shares on issue carry voting rights on a one for one basis. 

Performance Rights on issue do not carry voting rights. 

Unmarketable parcels 

There are 561 holders of less than a marketable parcel of ordinary shares based on the closing price of the 

Company’s shares on 2 October 2019 of $0.45. 

Restricted Securities 

There are no restricted securities or securities subject to voluntary escrow on issue. 

AURELIA METALS LIMITED - ANNUAL REPORT 2019  –  89

)
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