ANNUAL REPORT
30 JUNE 2017
All figures reported in USD
1
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 2
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 CONTENTS
Corporate Directory ............................................................ 4
Chairman’s Letter ................................................................. 6
Review of Activities .............................................................. 8
Directors’ Report ............................................................... 20
Financial Statements ......................................................... 35
Directors’ Declaration ....................................................... 68
Independent Auditor’s Report .......................................... 70
Additional Information ...................................................... 78
3
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 CORPORATE
DIRECTORY
4
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 CORPORATE DIRECTORY
Directors:
Eduardo Elsztain
Saul Zang
Pablo Vergara del Carril
Stabro Kasaneva
Wayne Hubert
Robert Trzebski
Ben Jarvis
Chairman & Non-Executive Director
Non-Executive Director
Non-Executive Director
Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Company Secretary:
Registered Principal Office:
Andrew Bursill
Franks & Associates
Suite 2, Level 10
70 Phillip Street
Sydney NSW 2000
Suite 203, 80 William Street
Sydney NSW 2011
Tel: +61 2 9380 7233
Email: info@australgold.com.au
Web: www.australgold.com.au
Buenos Aires, Argentina Office: Bolivar 108
Chile Offices:
Share Registries:
Auditors:
Principal Bankers:
Solicitors:
Listed:
Buenos Aires (1066) Argentina
Tel: +54 (11) 4323 7500
Fax: +54 (11) 4323 7591
Antofagasta Office
14 de Febrero 2065, of. 1103
Antofagasta, Chile
Tel: +56 (55) 2892 241
Fax: +56 (55) 2893 260
Santiago Office
Lo Fontecilla 201 of. 334
Santiago, Chile
Tel: +56 (2) 2374 8560
Computershare Investor Services
Australia
GPO Box 2975
Melbourne VIC 3001
Tel:
Tel: +61 3 9415 5000 (outside Australia)
1300 850 505 (within Australia)
Computershare Investor Services
Canada
510 Burrard Street, 2nd Floor
Vancouver, BC V6C 3B9
Tel: +1 604 661 9400
Fax: +1 604 661 9549
KPMG
www.kpmg.com.au
National Australia Bank Limited
www.nab.com.au
David Selig
Level 12, 60 Carrington Street
Sydney NSW 2000 Australia
Australian Securities Exchange
ASX: AGD
TSX Venture Exchange
TSXV: AGLD
Place of Incorporation:
Western Australia
Other offices:
Vancouver, Canada Office
1630-609 Granville Street
Vancouver, BC V7Y 1A1
Tel: +1 604 568 2496
Tel: +1 778 987 1929
5
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
CHAIRMAN’S
LETTER
Dear Shareholders,
The 2017 financial year (‘FY17’) has been another year of significant progress for Austral Gold. We
expanded our asset base, constructed a new processing facility at our flagship Guanaco mine in Chile and
strengthened our team. Combined, these put us in a solid position as we look to continue to grow and
seek value enhancing opportunities.
Austral Gold continued to deliver stable production and FY17 was the fifth consecutive year where we met
or exceeded production guidance. We expect to be able to grow future production as Austral Gold realises
the benefits from the investment we have made in expanding production capacity in Chile, and from the
increase in our ownership of the Casposo mine in Argentina from 51% to 70%.
The Board is proud of some key milestones Austral Gold achieved in FY17 and early FY18:
•
•
We commenced open pit mining operations on the Central Vein at Amancaya, which is a high grade
gold and silver vein hosted deposit approximately 70 kilometres from the Guanaco mine.
The pre-feasibility study completed for the combined operation of both Guanaco and Amancaya has
demonstrated robust economics and a life of mine of five years from current reserves. The Amancaya
ore is being trucked to the nearby plant at Guanaco, which has greatly reduced the capital expenditure.
We expect Amancaya to be a platform for long term production in Chile, with significant exploration
opportunity to potentially expand mining operations on the property, which we consider to represent a
significant vein camp.
• We completed construction of the 1,500 tonnes per day agitation leach and Merrill-Crowe processing
plant in Chile to process production from our Guanaco and Amancaya mining operations.
• We connected to the Taltal Wind Farm and commenced a power supply agreement with the northern
Chile power grid. This grid connection should not only decrease current power consumption costs by
more than 50%, but it should also significantly reduce the carbon footprint of the Guanaco operation by
avoiding the diesel consumption that is currently used to generate power at the on-site power plant.
• Following the acquisition of our initial interest in the Casposo mine from Troy Resources in FY16, we
exercised the option to acquire a further 19% in March 2017. There have now been three full quarters of
production at Casposo and Austral Gold personnel have acted quickly to enhance the operations and
spearhead the resumption of gold and silver production.
6
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
• We ramped up exploration activities throughout the year with the most prospective results realised to
date including the discovery of a new high grade gold vein at the Amancaya property.
• Our CEO, Stabro Kasaneva structured and strengthened the corporate and technical teams to manage
the scale up of our operations, and to lead efforts to continuously improve operations and pursue
further value adding opportunities.
• Major work was done to establish a platform of long term reserves at our operations. During FY17,
a maiden reserve and resource estimate, in accordance with both NI 43-101 and JORC2012, for both the
Guanaco and Amancaya mines was completed. Similarly, for the re-commissioned Casposo mine, a new
resource and reserve estimate was completed by independent consultants in September 2016 which
coincided with the relaunch of production at the Casposo mine.
• We completed the acquisition of Argentex Mining Corporation in August 2016, which owns the
Pingüino Project, an advanced stage Silver-Gold-Zinc-Lead-Indium development project located in
Santa Cruz, Argentina. In the last 15 years, 6 mines have been constructed in Santa Cruz, making it one
of the most prolific precious metal provinces in the world, including world class deposits such as Cerro
Vanguardia and Cerro Negro.
• Lastly, we successfully dual listed on the TSX-V, a key exchange for resource stocks, under the ticker
AGLD. The Company now trades on both the ASX (AGD) and the TSX-V.
We continue to invest in value-accretive projects. On 13 July 2017, we entered into a binding Letter of
Intent to acquire the San Guillermo and Reprado projects in Chile from Revelo Resources Corporation.
These projects are strategically located around and along strike to the Amancaya property, which we
believe is prospective for further exploration discovery of additional precious metals mineralisation.
Safety is a key focus for our Company. We are working at integrating this culture across our new operation
at Casposo, Argentina, the new open pit operation at Amancaya and the new processing plant at Guanaco.
We remain committed to the well-being of our employees and the communities in which we operate and
continue to promote the highest health, safety and environmental standards. We are committed to
supporting the local communities in which we operate through local hiring of personnel and community
and education initiatives.
Austral Gold is well placed for FY18. Our strategic acquisitions, backed by an experienced management
team, strong technical team with a proven operational and exploration track record, exceptional
networking in Chile and Argentina and a deep knowledge of the mining industry in both countries provide
the platform for continued growth. We anticipate this will be a landmark year of growth and development
as we ramp up processing at the new agitation leach plant from the combined Guanaco mine and
Amancaya mine in Chile, continue to streamline and enhance production at Casposo in Argentina, secure
further brownfield opportunities in both Chile and Argentina and explore new strategic opportunities.
Stabro Kasaneva and his team are to be commended for their efforts this year. I can assure fellow
shareholders that we indeed have one of the best exploration and mine development teams in South
America and this gives us a major strategic advantage as we continue to build Austral Gold into a leading
precious metals company. Our Board is committed to this stated vision.
I also believe gold and silver prices have begun a new, long-term bull market and I expect Austral Gold to
deliver value to investors by increasing both our revenues and the capital value of our mineral resources.
I would like to thank our shareholders for their continued support, all of our employees and contractors,
and our Board members for their hard work and dedication throughout the year.
Eduardo Elsztain
Chairman
7
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
REVIEW OF
ACTIVITIES
Austral Gold Limited (‘the Company’ or ‘Austral’) and its subsidiaries
(‘the Group’) is a growing precious metals mining and exploration
company building a portfolio of assets in South America. The Company’s
flagship Guanaco and Amancaya mines in Chile are low-cost gold and silver
producing mines with further exploration upside. The Company is also operator
and 70% owner of the Casposo mine in San Juan, Argentina, which has had several
quarters of production since being recommissioned in September 2016. With an
experienced and highly regarded major shareholder, Austral Gold is strengthening its
asset base by investing in new precious metals projects in Chile and Argentina that have
near-term development potential.
8
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 CHILE
Guanaco Gold and Silver Mine,
(100% interest)
The 100% owned Guanaco mine has been producing gold
since the first doré bar was poured in October 2010 and
remains the Company’s flagship asset. Guanaco is located
approximately 220km SE of Antofagasta in Northern Chile at
an elevation of 2,700m and 45km from the Pan American
Highway. Guanaco is located in the Paleocene/Eocene belt,
a structural trend which runs north/south through the centre
of Chile, and hosts several large gold and copper mining
operations including Zaldivar, El Peñon and Escondida.
Currently, the majority of the ore processed from the
Guanaco operation comes from the Cachinalito
underground system and nearby vein systems with higher
average grades. Gold mineralisation at Guanaco is
controlled by pervasively silicified, E/NE trending sub-
vertical zones with related hydrothermal breccias.
Silicification grades outward into advanced argillic alteration
and further into zones with propylitic alteration. In the
Cachinalito vein system, most of the gold mineralisation is
concentrated between depths of 75m and 200m and is
contained in elongated shoots. High grade ore shoots (up
to 180 g/t Au), 0.5m to 3.0m wide, have been exploited, but
the lower grade halos, below 3 g/t Au, can reach up to 20m
in width. The alteration pattern and the mineralogical
composition of the Guanaco ores have led to the
classification as a high-sulfidation epithermal deposit.
Operations
(Guanaco/Amancaya
& Casposo)
Projects
(Pingüino)
Guanaco/Amancaya
Antofagasta Province, Chile
Casposo
San Juan Province, Argentina
Pingüino
Santa Cruz Province, Argentina
9
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 Amancaya Gold and Silver Mine
(100% interest)
In July 2014, the Group acquired the Amancaya Project
(‘Amancaya’) from Yamana Gold Inc which is located
approximately 60km south-west of the Guanaco mine.
Amancaya is a low sulphidation epithermal gold-silver
deposit consisting of eight mining exploration concessions
covering 1,755 hectares (and a further 1,390 hectares of
second layer mining claims).
Prestripping was finalised and open-pit mining operations
began in April 2017. The Amancaya ore is being trucked to
the new plant at Guanaco for processing where it is being
stockpiled until the new agitation leach plant is fully
commissioned.
New Plant and Technical Report
on Combined Resources
Construction of a new agitation leach plant at Guanaco
mine site has been completed with processing currently in a
commissioning phase. The Company released the results of
an independent resource and reserve estimate in
accordance with the CIM Definitions 2014 in National
Instrument (“NI”) 43-101 and Joint Ore Reserves Committee
Code, 2012 (JORC12) on 8 June 2017. Highlights from the
estimate confirms the high-grade nature of the Amancaya
project:
Amancaya:
Total Indicated resource of 804,690 tonnes at 9.64 g/t
gold and 80.7 g/t silver for 277,352 Gold Equivalent
(“AuEq”) ounces, including a maiden probable reserve of
948,053 tonnes grading 6.77 g/t gold and 63.2 g/t silver
for 232,074 AuEq ounces which includes a maiden open
pit probable reserve of 254,596 tonnes grading 7.56 g/t
gold and 119.5 g/t silver for 74,993 AuEq ounces; and
Total Inferred resource of 959,554 tonnes at 6.79 g/t gold
and 36.1 g/t Ag for 220,000 AuEq ounces.
Guanaco:
Measured and Indicated resource of 2,193,000 tonnes
grading 2.9 g/t gold and 13.0 g/t silver for 217,000 AuEq
ounces, including;
Total reserves of 489,635 tonnes grading 2.99 g/t gold
and 3.6 g/t silver for 47,907 AuEq ounces, including
Proven reserves of 189,613 tonnes grading 3.41 g/t gold
and 4.1 g/t silver for 21,106 AuEq ounces and Probable
reserves of 300,022 tonnes grading 2.73 g/t gold and
3.4 g/t silver for 26,801 AuEq ounces.
Inferred resource: 1,200,000 tonnes grading 2.6 g/t gold
and 12.9 g/t silver for 110,000 AuEq ounces.
10
In addition, the Company recently announced the discovery
of high grade gold mineralisation along the Nueva Vein at
Amancaya. Results have indicated the presence of high
grade gold hosted by quartz veining along this 2.8km
structure.
San Guillermo and Reprado Properties
As announced on 18 July 2017, Austral Gold executed a
binding letter to acquire the San Guillermo and Reprado
projects from Revelo Resources Corp. (‘Revelo’; TSX-V: RVL)
for consideration of up to ten million Austral Gold ordinary
shares (capped at US$0.21/share) and subject to existing
Net Smelter Royalties (‘NSR’) and an additional NSR of up to
1%. The offer is subject to due diligence, entering into a
definitive agreement and customary regulatory and
exchange approvals.
The San Guillermo properties consist of concessions
totalling 12,175 hectares that surround the Company’s high
grade gold and silver Amancaya project, which Austral
began mining via open pit operations this year.
The Reprado project consists of concessions totalling 3,960
hectares situated approximately 20km north of the
Company’s Amancaya project. Historical drilling undertaken
by Teck Resources Ltd. intersected gold in low sulphidation
quartz veins trending essentially E-W.
Revelo and Austral Gold had previously signed an Option
and Sale agreement dated 8 February 2016 over the San
Guillermo project. Under this agreement total payments and
work commitments of US$5.1m would have been due. This
agreement will be terminated upon entering a definitive
agreement with Revelo.
Austral Gold concessions in northern Chile after the agreement with Revelo
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
Production
Total production from the heap-leach process reached a
total of 44,275 gold ounces and 58,832 silver ounces for the
12-month period ended 30 June 2017.
For the 12-month period ended 30 June 2016, the average
operating cash cost was US$759/AuEq oz.
Mining
During the year mining was focused mainly at the
Cachinalito and Dumbo underground areas with a total of
548,309 tonnes mined. The crushed and leached ore
totalled 505,711 tonnes for the quarter at an average grade
of 3.96 g/t Au and 8.44 g/t Ag.
During the year ended 30 June 2017, a total of 8,330 metres
of underground mine development was advanced, of which
2,312 metres related to developments and accesses and
6,018 metres to advances in production.
Guanaco Operational
Performance
12 months ending
30 June
2017
2016
Total Ore Processed (t)
505,711
502,257
Average Plant grade (g/t Au)
Average Plant grade (g/t Ag)
Gold produced (oz)
Silver produced (oz)
C1 Cash Cost (US$/AuEq oz)
All-in Sustaining Cost (US$/Au oz)
3.96
8.44
2.82
8.24
44,275
39,776
58,832
47,667
759
908
761
914
Realised gold price (US$/Au oz)
1,251
1,160
Realised silver price (US$/Ag oz)
17
16
Safety
Six (6) lost-time accidents (LTAs) occurred and eight (8)
nil-lost-time accidents (NLTAs) were reported involving
employees and third party contractors of the Group during
the year ended 30 June 2017. All accidents were investigated
and corrective actions were identified and implemented to
prevent recurrence. Safety and environmental protection are
core values of the Group. The implementation of safety best
practices along with a sound risk management program are
key priorities for Austral Gold.
Mine Exploration Program
Exploration activities in the first half of 2017 were focused on
resource drilling and exploration at Amancaya to enable the
Company to complete a Mineral Resource and Ore Reserve
estimate in accordance with NI 43-101 and JORC2012. This
supported a robust financial return from the project with a
four year life of mine plan via an initial open pit operation on
the Central Vein to be followed by an underground
operation. Subsequently the Company focussed on a short
drill program on the San Guillermo property, focussing on
veining previously identified to the south of the Company’s
Central Vein. Drilling identified a number of narrow veins
with anomalous mineralisation. Given the narrowness and
geology further review of this area of the property is
expected to be required before any additional work is
considered.
Brownfield activities during the year at Amancaya have seen
the majority of exploration activity. This entailed an initial
gradient IP test over the Central Vein to determine a
signature for this vein hosted mineralisation, as well as
ground magnetics and Very Low Frequency (VLF) surveys.
Following positive results in terms of these methods
identifying structures and potential mineralisation a broader
program of ground magnetics and VLF surveying
commenced over the Amancaya property. A significant
amount of vein like structures were identified and trenches
were excavated on the structures defined in these surveys,
targeting float geochemistry anomalies. A total of 136
trenches were excavated. Mapping and sampling
commenced and results were released in August 2017, most
notably the discovery of high grade gold mineralisation
along the Nueva Vein. This area is a priority exploration
target for the Company, with a program of infill trenching
and geophysics expected to be completed to help define
initial drill targets. Subject to results the Company expects
to commence a preliminary drilling campaign during the year.
Trench geochemistry results at Amancaya property (including high grade
discovery at Nueva Vein)
11
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 ARGENTINA
Casposo Mine, San Juan
(70% interest)
The Casposo mine consists of an underground mining
operation and processing plant. The mine and plant are
located 10km NW of the township of Calingasta, 150km
from San Juan, capital of San Juan province.
The Casposo gold–silver mineralisation occurs in both the
rhyolite and underlying andesite, where it is associated with
banded quartz–chalcedony veins, typical of low sulphidation
epithermal environments.
Mineralisation at Casposo occurs along a 10km long W–NW
to E-SE-trending regional structural corridor, with the main
Kamila Vein system forming a sigmoidal set 500m-long near
the centre. The Mercado Vein system is the northwest
continuation of Kamila, and is separated by an E–W fault
from the Kamila Deposit. The Casposo Norte deposit is
located on a parallel structure approximately two kilometres
north of Kamila.
Gold Equivalent Long Section of Casposo Block Model
Underground Mine
The Casposo Mine consists of a number of narrow steeply
dipping ore bodies known as Aztec, B-Vein, B-Vein1, Inca0,
Inca1, Inca2A, Inca2B, Mercado, and Julieta. The main
production from the underground mine to date has been
from Inca1, Aztec, and Inca2A.
The mining method used at the Casposo Mine is
Longitudinal Longhole Retreat. Mine production is made up
12
of a combination of ore development through sill drifts
(34%) and stope production (66%).
The processing and recovery method is well known and
widespread throughout the gold and silver mining industry
namely Merrill Crowe. Gold Recovery from the plant is ~91%
and 83% for silver.
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 Production and Safety
The table below summarises the latest three quarter results since the recommissioning of the mine.
Casposo Operational Performance
Total Ore processed (t)
Gold recovery (%)
Silver recovery (%)
Average Plant Grade (g/t Au)
Average Plant Grade (g/t Ag)
Gold produced (oz)*
Share of Gold produced (oz)**
Silver produced (oz)*
Share of Silver produced (oz)**
C1 Cash Cost (US$/AuEq oz)
All-in Sustaining Cost (US$/AuEq oz)
Realised gold price (US$/Au oz)
Realised silver price (US$/Ag oz)
June
Quarter 2017
March
Quarter 2017
December
Quarter 2016
65,124
48,602
66,328
89%
86%
2.4
224
4,360
3,052
374,583
262,208
981
1,311
1,254
17
89%
86%
2.5
217.75
3,487
2,008
288,327
167,777
1,058
1,353
1,214
17
91%
84%
2.3
241.37
4,489
2,289
434,607
221,650
969
1,200
1,212
16
* Production on 100% basis
** Calculation of production on a prorata basis following the % ownership interest of Austral Gold in Casposo (70% share) March 2017 quarter production (51%
share to 5 March; 70% share to 31 March) and December 2016 quarter production (51% share)
of the area between the Julieta resource and current
operations, known as “The Gap” was also undertaken. The
Cerro Norte vein area was selected as the most prospective
near mine target and initial trenching was planned to
supplement sporadic work done to date.
Expected production for the calendar year 2017 is 50,000
gold equivalent ounces with a goal of reaching an AISC of
US$957 per ounce, as per the Casposo Gold-Silver Mine
Technical Report, dated 7 September 2016, with an effective
date of 30 of June 2016 and available on SEDAR under the
Company’s profile.
From a safety perspective, there were eight (8) lost-time
accidents (LTA) and eight (8) nil-lost-time accidents (NLTA)
involving employees of Casposo and third party contractors
since recommissioning of the mine. Safety and
environmental protection are core values of the Company.
The implementation of best practice safety standards along
with a sound risk management program are key priorities for
Austral Gold.
Exploration Activities
Exploration activity in FY17 has focused on brownfield
exploration at Casposo mine. This commenced with the
consolidation of the previous owner’s database. There are
numerous high grade grab, trench and drilling samples from
structures and veins within the mine properties and a review
and prioritisation of these was commenced. Follow up work
on the Julieta resource, which is 8km to the NW from the
underground operations, was also undertaken, and review
13
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
Argentex Properties, Santa Cruz
and Rio Negro (100% interest)
The Company completed the acquisition of TSX Venture
Exchange listed company, Argentex Mining Corporation
(‘Argentex’) on 22 August 2016.
Argentex had assembled an impressive land portfolio in
Argentina’s Santa Cruz and Rio Negro provinces. In total,
Argentex owns 100% mineral rights of more than 21
properties with over 166,598 acres (67,420 hectares) of land.
These properties are located within two prominent
geographical features, the Deseado and Somuncura
Massifs, both of which have proven to host significant
epithermal precious metal deposits. The large epithermal
vein swarm at Pingüino contains Argentex’s discovery of
indium-enriched vein-hosted base metal mineralisation,
which represented a new deposit type for the region, as well
as low sulphidation precious metal vein mineralisation. The
combination of these two types of mineralisation within the
same property is unique for the province of Santa Cruz and
a significant asset for the Company.
The Silver-Gold-Zinc-Lead-Indium Pingüino Project is an
advanced stage development project located in south-
central Argentina, 300km southwest of the city of Comodoro
Rivadavia and 220km northwest of Puerto San Julián. In the
last 15 years, six mines have been constructed in Santa Cruz,
making it one of the most prolific precious metal provinces
in the world, including world class deposits such as Cerro
Vanguardia and Cerro Negro.
The Pingüino Project lies in a vein field similar but smaller to
Cerro Vanguardia some 35kms north-west along the same
controlling structure as Pingüino deposit (225km strike
length of veins vs 115 km strike length of veins).
The project has year round access, is close to major
infrastructure, has no nearby communities and more than
70% of surface land is owned by the Company.
In FY17, a camp has been re-opened at the project site.
Analysis of the project continues with a view to establishing
a development strategy that would allow the project to be
profitable.
8 de Julio
(100% owned)
Argentex Properties
including Pinguino
Project
(100% owned)
14
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 8 de Julio Project, Santa Cruz
(100% interest)
Mineral Resources and Ore
Reserves Statement
The Group holds “manifestations of discovery” over more
than 17,000 hectares in the Deseado Massif corridor in the
Province of Santa Cruz (the “8 de Julio Project”). Activity
during the year related to continued filing of base
geological reports and other activities for compliance with
local regulations.
Tables 1 and 2 are the Company’s Mineral Reserves and
Resource Estimates as at 30 June 2017 compared to Tables
3 and 4 which are the Company’s Mineral Reserves and
Resource Estimates as at 30 June 2016.
Please note that numbers in the tables are subject to
rounding differences.
Table 1: Ore Reserves Estimate
30 June 2017
Location
Proven Reserves
Probable Reserves
Total Ore Reserves
Ore Reserves (JORC 2012 and NI 43-101 Compliant)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal (koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal (koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal (koz)
Total Combined
126
3.9
16
1,148
126
126
-
-
-
3.9
3.9
-
-
-
16
16
-
-
-
200
200
255
693
948
27
27
153
2.0
2.0
3.6
2.0
2.0
18
792
792
1,940
3.2
3.2
7.6
6.5
6.8
6.2
2.6
2.6
4.7
21
21
62
145
207
228
66
66
294
326
326
255
693
948
1,274
819
819
2,093
3.5
3.5
7.6
6.5
6.8
5.9
2.6
2.6
4.6
36
36
62
145
207
244
68
68
311
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal (koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal (koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal (koz)
126
126
-
-
-
4.8
4.8
-
-
-
19
19
-
-
-
200
200
255
693
948
Total Combined
126
4.8
19
1,148
CASPOSO
Underground
Total Casposo
Total
27
27
153
320.0
320.0
60.4
278
278
297
792
792
1,940
3.7
3.7
119.5
42.5
63.2
52.8
227.0
227.0
123.9
24
24
980
946
1,926
1,950
5,780
5,780
7,730
326
326
255
693
948
1,274
819
819
2,093
4.1
4.1
119.5
42.5
63.2
48.1
230.1
230.1
119.3
43
43
980
946
1,926
1,969
6,058
6,058
8,027
15
Gold (Au)
GUANACO
Underground
Total Guanaco
AMANCAYA
Open Pit
Underground
Total Amancaya
CASPOSO
Underground
Total Casposo
Total
Silver (Ag)
GUANACO
Underground
Total Guanaco
AMANCAYA
Open Pit
Underground
Total Amancaya
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 Table 2: Mineral Resources Estimate
30 June 2017
Mineral Resources (JORC 2012 and NI 43-101 Compliant)
Location
Measured (Me)
Indicated (Ind)
Total (Me + Ind)
Inferred (Inf)
Gold (Au)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
GUANACO
Underground
Total Guanaco
AMANCAYA
Open Pit
Underground
Total Amancaya
583
583
3.0
3.0
-
-
-
-
-
-
57
57
-
-
-
1,436
1,436
172
633
805
Total Combined
583
3.0
57
2,241
CASPOSO
Underground
Total Casposo
Total
176
176
759
2.7
2.7
2.9
15
15
72
1,186
1,186
3,427
2.9
2.9
11.2
9.2
9.6
5.3
3.0
3.0
4.5
132
132
62
187
250
382
114
114
496
2,019
2,019
172
633
805
2,824
1,362
1,362
4,186
2.9
2.9
11.2
9.2
9.6
4.8
3.0
3.0
4.2
189
189
62
187
250
438
130
130
568
1,165
1,165
60
900
960
2,125
1,052
1,052
3,177
2.6
2.6
7.6
6.7
6.8
4.5
4.2
4.2
4.4
97
97
15
194
209
306
142
142
448
Silver (Ag)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
GUANACO
Underground
Total Guanaco
AMANCAYA
Open Pit
Underground
Total Amancaya
583
583
13.7
13.7
257
257
1,436
13.4
1,436
13.4
619
619
2,019
13.5
2,019
13.5
875
875
-
-
-
-
-
-
-
-
-
172
633
177.5
982
54.5
1,109
172
633
177.5
982
54.5
1,109
805
37.9
2,091
805
80.8
2,091
1,165
1,165
60
900
960
Total Combined
583
13.7
257
2,241
37.6
2,709
2,824
32.7
2,966
2,125
CASPOSO
Underground
Total Casposo
Total
176
176
759
251.0
1,420
1,186
218.2
8,320
1,362
222.4
9,740
251.0
1,420
1,186
218.2
8,320
1,362
222.4
9,740
68.7
1,677
3,427
100.1
11,030
4,186
94.4
12,707
1,052
1,052
3,177
13.0
13.0
110.0
31.0
35.9
23.4
137.0
137.0
61.0
487
487
212
897
1,109
1,596
4,634
4,634
6,230
Notes to the Mineral Resources
and Ore Reserves Statement
Casposo Mine
The RPA Qualified Persons (‘QP’) for the Casposo Reserve
and Resource Estimate include: Jason J. Cox, P.Eng.
(Mineral Reserves) and Chester M. Moore, P.Eng., (Mineral
Resources). The Mineral Resources and Reserves are
classified and reported in accordance with Canadian
Institute of Mining, Metallurgy and Petroleum Definition
Standards for Mineral Resources and Ore Reserves dated
May 10, 2014 (‘CIM’) definitions as incorporated in
NI 43-101, as well as JORC2012, within the Technical Report
on the Casposo Gold-Silver Mine, Department of
Calingasta, San Juan Province, Argentina dated
7 September 2016.
16
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 Mineral resources have been updated to account for
depletion from mining activities by Nicolas Pizarro, P.Eng, an
Austral Gold employee and a QP as per NI-43-101 and a
Competent Person (‘CP’) as per JORC2012. Ore reserves
have been updated to account for depletion from mining
activities by Dr Robert Trzebski, who is an Independent
Director of Austral Gold, and a QP as per NI-43-101 and a
CP as per JORC2012.
The information is extracted from the news release
published on the ASX website (www.asx.com.au) on 27
September 2016. The Company confirms that it is not aware
of any new information or data that materially affects the
information included in the original market announcement
and, in the case of estimates of Mineral Resources or Ore
Reserves, that all material assumptions and technical
parameters underpinning the estimates in the relevant
market announcement continue to apply and have not
materially changed. The Company confirms that the form
and context in which the CP’s findings are presented have
not been materially modified from the original market
announcement.
Guanaco and Amancaya Mines
The RPA Qualified Persons (QPs) for the Amancaya and
Guanaco Reserve and Resource Estimate include: Kathleen
Ann Altman, P.E., Ph.D. (Metallurgy); Jason J. Cox, P.Eng.
(Mineral Reserves); Ian Weir, P.Eng. (Mineral Reserves);
Chester M. Moore, P.Eng., (Mineral Resources). The Mineral
Resources and Reserves are classified and reported in
accordance with CIM definitions as incorporated in
NI 43-101, as well as JORC 2012, within the Guanaco and
Amancaya Gold Project, Region II, Chile, dated 16 June,
2017, with an effective date of 31 December 2016. Mineral
resources have been updated to account for depletion from
mining activities by Nicolas Pizarro, P.Eng, an Austral Gold
employee and a QP as per NI-43-101 and a CP as per
JORC2012. Ore reserves have been updated to account for
depletion from mining activities by Dr Robert Trzebski, who
is an Independent Director of Austral Gold, and a QP as per
NI-43-101 and a CP as per JORC2012.
The information is extracted from the news release
published on the ASX website (www.asx.com.au) on 13 June
2017. The Company confirms that it is not aware of any new
information or data that materially affects the information
included in the original market announcement and, in the
case of estimates of Mineral Resources or Ore Reserves, that
all material assumptions and technical parameters
underpinning the estimates in the relevant market
announcement continue to apply and have not materially
changed. The Company confirms that the form and context
in which the CP’s findings are presented have not been
materially modified from the original market announcement.
Table 3: Ore Reserves Estimate
30 June 2016
Location
Proven Reserves
Probable Reserves
Total Ore Reserves
Ore Reserves (JORC 2012 and NI 43-101 Compliant)
Gold (Au)
CASPOSO
Underground
Total Casposo
Silver (Ag)
CASPOSO
Underground
Total Casposo
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal (koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal (koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal (koz)
115
115
1.8
1.8
7
7
857
857
2.6
2.6
72
72
972
972
2.5
2.5
78,293
78,293
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal (koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal (koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal (koz)
115
115
169.9
169.9
628
628
857
857
239.2
239.2
6,591
6,591
972
972
231.0
231.0
7,219
7,219
17
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 Table 4: Mineral Resources Estimate
30 June 2016
Mineral Resources (JORC 2012 and NI 43-101 Compliant)
Resources
Measured (Me)
Indicated (Ind)
Total (Me + Ind)
Inferred (Inf)
Gold (Au)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
GUANACO
Underground
Open Pit
869
360
Heap Leach
7,988
Total Guanaco
9,217
CASPOSO
Underground
Total Casposo
178
178
Total Combines
9,395
2.9
1.8
0.5
0.8
2.7
2.7
0.8
80
21
136
237
15
15
253
2,314
419
-
2,733
1,237
1,237
3,970
2.5
1.5
-
2.4
3.0
3.0
2.6
190
20
-
3,183
779
7,988
2.6
1.6
0.5
210
11,950
1.2
119
119
329
1,415
1,415
13,365
3.0
3.0
1.4
270
41
136
447
135
135
582
2,217
15
2,777
5,009
1,085
1,085
6,094
24
1.7
0.6
1.4
5.0
5.0
2.0
168
1
49
218
174
174
392
Silver (Ag)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
Tonnes
(Kt)
Grade
(g/t)
Contained
Metal
(koz)
GUANACO
Underground
Open Pit
869
360
Heap Leach
7,988
Total Guanaco
9,217
CASPOSO
9.8
18.5
2.7
3.9
273
214
683
2,314
419
-
12.0
13.4
-
897
180
-
3,183
779
7,988
1,170
2,733
12.3
1,077
11,950
11.4
15.7
2.7
5.8
Underground
178
255.0
1,459
1,237
235.2
9,354
1,415
237.7
10,813
Total Casposo
178
255.0
1,459
1,237
235.2
9,354
1,415
237.7
10,813
Total Combined
9,395
8.71
2,630
3,970
81.7
10,431
13,365
30.4
13,060
1,170
2,217
394
683
2,247
15
2,777
5,009
1,085
1,085
6,094
12.0
10.6
2.6
6.8
143.4
143.4
31.1
858
5
235
1,098
5,002
5,002
6,100
The Company ensures that the Ore Reserves and Mineral
Resource Estimates are subject to appropriate levels
of governance and internal controls.
Governance of the Company’s Ore Reserves and Mineral
Resources development and the estimation process is a key
responsibility of the Executive Management of the Company.
The Chief Executive Officer of the Company overseas the
review and technical evaluations of the Ore Reserves
and Mineral Resource estimates.
Competent Persons Statements
The information in the report to which this statement is
attached that relates to Mineral Resources is based upon
information compiled by Nicolas Pizarro, a Competent
Person who is a registered member of The Association of
Professional Engineers and Geoscientists of BC. Nicolas
Pizarro is a fulltime employee of the company and has
sufficient experience that is relevant to the style of
mineralisation and the type of deposit under consideration
and to the activity being undertaken 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’. Nicolas Pizarro
consents to the inclusion in the report of matters based on
his information in the form and context in which it appears.
The information in the report to which this statement is
attached that relates to Ore Reserves is based upon
information compiled by Dr Robert Trzebski, a Competent
Person who is a fellow of the Australian Institute of Mining
and Metallurgy (AUSIMM). Dr Robert Trzebski is a Non-
Executive Director of the Company and has sufficient
experience that is relevant to the style of mineralisation and
the type of deposit under consideration and to the activity
being undertaken 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’. Dr Robert Trzebski consents to the inclusion
in the report of matters based on his information in the form
and context in which it appears.
18
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
DIRECTORS’
REPORT
20
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 DIRECTORS’ REPORT
Austral Gold Limited and its Subsidiaries
For the Year Ended 30 June 2017
Your Directors present the following report for the financial year ended 30 June 2017 together with the consolidated financial
report of Austral Gold Limited (the Company) and its subsidiaries, (referred to hereafter as the Group) for the year ended 30 June
2017 and the auditor’s report thereon.
Principal Activities
The principal activities of the Group during the course of the financial year were exploration, evaluation of mineral properties, and
gold and silver production as described in the Review of Activities. There were no significant changes in the nature of those
activities during the year.
Review and Results of Operations
Operating Results and Dividends
The Group’s net loss attributable to shareholders for the year ended 30 June 2017 (FY17) was US$4.4m (FY16: net profit
US$25.1m).
The Group earned revenue of US$104m in FY17 (FY16: US$55.9m) as production increased to 81,591 AuEq oz (FY16: 40,395 AuEq
oz). The increase of US$48m was due to (i) the re-commissioning of the Casposo mine during the period (+US$38m increase vs.
FY16); (ii) the sales volume and average gold price achieved at Guanaco (+ US$7m), and (iii) the US$2.5m revenue from collection
of silver tax credits at Casposo.
FY17 Production Summary
Ore Processed (t)
Average plant grade (g/t Au)
Average plant grade (g/t Ag)
Gold produced (oz)
Silver produced (oz)
Gold-Equivalent (oz)
C1 Cash Cost (US$/AuEq oz)
All-in Sustaining Cost (US$/Au oz)
Guanaco
505,711
3.96
8.44
44,275
58,832
45,098
759
908
Casposo*
248,109
2.55
215.49
16,793
1,411,292
36,493
998
1,280
Net to Austral**
Total Group
148,144
2.55
215.49
9,622
811,662
20,952
998
1,280
753,820
3.5
76.59
61,068
1,470,124
81,591
849
1,049
* Casposo production includes the last three Quarters of FY17 and also includes production during recommissioning.
** Austral Gold owned 51% of Casposo from commissioning until February 2017, when it increased its stake in Casposo to 70%
***AuEq is based on a gold:silver ratio of 1:72
Cost of production increased by 79% which is attributable to the start-up of the Casposo mine. Casposo averaged cash cost of
US$998/AuEq oz in the three quarters of production during FY17. Guanaco mine maintained its cash cost levels (US$759/AuEq oz
in FY17 compared to US$761/AuEq oz in FY16).
The Group earned a gross profit of US$12.6m or 12.1% (including US$30.0m of depreciation) during FY17 (FY16: US$4.6m or 8.3%
and US$14.6m respectively). Excluding depreciation, the group earned a gross profit of US$42.6m or 40.9% (FY16: US$19.3m or
34.5%)
FY17 administration expenses increased by 87% to US$15.5m (FY16: US$8.3m) while costs remained constant as a percentage of
revenue at 15%. Higher administration costs were mainly due to additions to the corporate team to manage the expansion of
operations, restructuring of operations at Casposo, costs related to the acquisition of Argentex, the cost of technical reports and
21
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
DIRECTORS’ REPORT
higher public company costs resulting from the Company’s listing on the TSX-V. The loss in the fair value of financial assets of
US$2.3m in FY17 was due to a decrease in the number and fair value of the Fortuna shares and warrants held during the period.
Finance costs increased by US$237k in FY17 to US$729k mainly due to an increase in borrowings during the period used to finance
operations and the building of the new agitation leach plant at Guanaco mine site.
An interim unfranked dividend of A$0.009 (US$0.006) per ordinary share or A$4,670,849 (US$3,361,656) was paid on
1 February 2017. The total distribution was based on the number of ordinary shares on issue as at 18 January 2017.
FY17 EBITDA was US$24.5m (FY16: US$42.8m). Excluding the gain/(loss) on movements in financial assets and the gain on the
acquisition of the 51% interest in the Casposo mine resulted in adjusted EBITDA of US$26.8m (FY16: US$10.6m).
30-Jun-17
30-Jun-16
Revenue
Gross profit
Gross profit %
Adjusted gross profit (excluding depreciation)
Adjusted gross profit %
EBITDA
EBITDA per share (basic)
Adjusted EBITDA*
Adjusted EBITDA per share (basic)
(Loss)/profit attributed to shareholders
(Loss)/profit attributed to non-controlling interests
(Loss)/earnings per share (Basic)
(Loss) /earnings per share (Diluted)
Comprehensive loss/(income)
US$000
104,008
12,569
12.10%
42,562
40.90%
24,490
4.80c
26,752
5.20c
-4,380
-100
(0.85)c
(0.85)c
-3,905
US$000
55,865
4,648
8.30%
19,263
34.50%
42,818
8.9c
10,595
2.20c
25,130
-724
5.25c
5.25c
33,146
*excluding gain/(loss) on movements in financial assets and gain on acquisition of subsidiary
Note: Readers are cautioned that net/(loss) profit before finance costs, income tax expense and depreciation (‘Adjusted EBITDA’) do not have standardised
meanings as prescribed by IFRS and may not be comparable to similar measures presented by other companies. Further, readers are cautioned that Adjusted
EBITDA should not replace profit or loss or cash flows from operating, investing and financing activities (as determined in accordance with IFRS), as an indicator of
the Company’s performance.
Financial Position
The net assets of the Group have decreased by US$4.5m since 30 June 2016 to US$103.4m at 30 June 2017 (2016: US$107.9m).
The decrease in financial assets is mainly explained by the sale of the Fortuna shares during FY17 and the 19.9% investment in
Argentex through a private placement no longer classified as a financial asset as a result of the transaction to acquire the remaining
shares of Argentex not held by Austral in August 2016.
The increase in inventory is mainly explained by (i) the stock pile of Amancaya (partially offset by the reduction of the stock pile at
Casposo); and (ii) the higher gold/silver in process in Guanaco due to production cut-off dates. Materials and spare parts remain at
similar levels as previous year despite an increase in the allowance for inventory obsolescence (increased by US$~800K at
Casposo).
Non-current assets increased by US$26.7m in FY17 compared to the prior year primarily due to an increase in capital expenditures
at Guanaco as a result of the construction of the new agitation leach plant.
22
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 DIRECTORS’ REPORT
Provisions increased by US$4.5m in FY17 due to an increase in the mine closure provision for Guanaco.
The increase in liabilities by US$24.4m in FY17 is mainly due to financing required to construct the agitation leach plant at Guanaco
and for short-term working capital at both Casposo and Guanaco.
As at 30 June 2017, the Group had a current ratio equal to 1.4x along with US$6m cash and cash equivalents. The Group used part
of its FY17 operating cashflows of US$27.7m (FY16: US$15.2m), proceeds from the sale of financial assets and increase in short-term
credit facilities to meet its final commitments regarding deferred consideration for the acquisitions of Cachinalito and Amancaya
and for capital expenditures to support production and construction of the new plant at Guanaco and support the work on
recommissioning the Casposo mine.
Therefore, the Directors are confident the Company is in a position to maintain its current operations.
Significant Changes in the State of Affairs
There were no significant changes in the state of affairs of the Group during the financial year other than those disclosed in the
Review and Results of Operations above.
Future Developments, Prospects and Business Strategies
Since its incorporation, Austral Gold has been an explorer for precious metals. First production of gold from Guanaco occurred in
late 2010, with gold production steady since that time. The Guanaco gold mine remains the Company’s key asset in Chile, which
has been strengthened following commencement of mining operations at nearby Amancaya and the construction of a new
processing plant at Guanaco. In Argentina, Austral operates and owns 70% of the Casposo mine and a number of high quality
early exploration assets.
In terms of organic growth, exploration is a key activity for the Company. Activity will be focused primarily on Casposo and
Amancaya. Austral Gold is working on advancing organisational and technical changes at its 70% owned and operated Casposo
mine, with a goal of increasing production and reducing costs. Discovery of additional ounces to feed the mill is a key goal to
potentially improve production efficiency. Brownfield exploration is ongoing and there are numerous indications of mineralisation
that are currently being investigated and are the ongoing focus for exploration activities at Casposo. Located to the north of the
open pit operation at Amancaya, the recent discovery of high grade mineralisation from trenching, the Nueva Vein, is a potentially
significant discovery given its closeness to Guanaco and Amancaya. Exploration by Austral Gold has already doubled the strike
length of known veins on the property and delineation of drill targets and continued greenfield exploration will be a high priority
for the Company. The Company is also looking to advance it’s silver-zinc-gold-lead-indium Pingüino project in Santa Cruz
Argentina, given the current outlook for zinc and the significant potential of untested veins on the project.
The expertise and proven track record in precious metal underground mining, agitation leaching, exploration and strong local
networks is a considerable competitive advantage for Austral Gold. The Company hopes to leverage these capabilities in
identifying and securing new projects in Latin America to create value for shareholders and is very active in searching and
evaluating such opportunities.
Events Subsequent to Balance Date
On 13 July 2017 Austral Gold executed a binding letter to acquire the San Guillermo and Reprado projects from Revelo Resources
Corporation (‘Revelo’, TSX-V: RVL) for consideration of up to ten million Austral Gold ordinary shares (capped at US$0.21/share)
and subject to existing Net Smelter Royalties (‘NSR’) and an additional NSR of up to 1%. The offer is subject to due diligence,
entering into a definitive agreement and customary regulatory and exchange approvals.
Performance In Relation to Environmental Regulation
The Group has no exploration activities in Australia and is therefore not subject to any particular and significant environmental
regulations under a law of the Commonwealth or of a State or Territory.
In relation to the Group’s mineral exploration operations in Chile, licence requirements relating to “Bases Generales de Medio
Ambiente” exist under the Chilean Law No.19,300. The Directors are not aware of any breaches during the period covered by this
report. Moreover, all exploration activities performed so far have been approved by the Environmental Authority, Comisión
Nacional de Medio Ambiente (CONAMA).
23
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 DIRECTORS
& OFFICERS
The Directors and Officers of the Company
throughout and since the end of the financial
year are:
Stabro Kasaneva
Executive Director, Chief Executive Officer
Appointed 7 Oct 2009
Re-elected by shareholders on 26 Nov 2015
Mr. Kasaneva is a Geologist with a degree from the Universidad
Católica del Norte, Chile and has over 30 years of experience in
production geology, exploration and management of precious metal
mining operations.
Since Mr. Kasaneva joined Austral Gold in 2009, he has been
instrumental in transforming the Company by consolidating the
operation of Guanaco Mine in Chile, restarting operations at the
Casposo Mine in Argentina as well as identifying a number of
opportunities that represent the growth potential for Austral Gold.
Throughout his career as a geologist, he worked on exploration and
production gaining vast experience in grade control, QA/QC,
modeling and geological resources estimation.
Mr. Kasaneva led Business Development Departments for several
years evaluating a number of mining business opportunities in South
America, Central America and North America. He has held the roles
of General Manager of Mining Operations, Vice-President of
Operations and COO.
Mr. Kasaneva has not held any other Directorships with listed
companies in the last three years.
Eduardo Elsztain
Chairman
Appointed Director 29 Jun 2007
Re-elected by shareholders on 26 Nov 2015
Appointed Chairman on 2 Jun 2011
Mr. Eduardo Elsztain is Chairman of IRSA Inversiones y
Representaciones S.A. (NYSE:IRS; BASE:IRSA), one of Argentina's
largest and most diversified real estate companies; and IRSA
Commercial Properties (NASDAQ:IRCP; BASE: IRCP), with 16
shopping centres in Argentina, premium office buildings, five-star
hotels and residential developments. These investments are also
extended into the US real estate market.
He also serves as Chairman of Cresud (NASDAQ:CRESY; BASE:
CRES) and BrasilAgro (NYSE:LND; BVMF: AGRO3), leading Latin
American agricultural companies that own directly and indirectly
almost one million hectares of farmland.
Mr Elsztain is also Chairman of Banco Hipotecario S.A. (BASE:BHIP)
and of BACS, a leading Argentinean bank specialised in providing
innovative financial solutions to local companies.
He is Chairman of IDB Development, a leading conglomerate in
Israel which directly and indirectly owns Discount Investment
Corporation Ltd. (TASE: DISI); Property & Building Corp. (TASE:
PTBL); Elron Electronic Industries (TASE: ELRN); Clal Insurance
Enterprises Holdings (TASE: CLIS); Shufersal (TASE: SAE); and
Cellcom (NYSE: CEL; TASE: CEL), among others.
Mr. Elsztain has not held any other Directorships with listed
companies in the last three years.
Mr. Elsztain is also a member of the World Economic Forum, the
Council of the Americas, the Group of 50 and Argentina’s Business
Association (AEA).
He is President of Fundacion IRSA, which promotes education
among children and young people, including “Puerta 18”, a
program that provides free computing and technology education for
young people from low-income backgrounds in order to develop
their scientific, artistic and professional talents.
24
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
Saul Zang
Non-Executive Director
Appointed 29 Jun 2007
Re-elected by shareholders on 16 Dec 2014
Mr. Zang obtained a law degree from Universidad de Buenos Aires.
He is a founding member of the law firm Zang, Bergel & Viñes.
Mr Zang is an adviser and Member of the Board of Directors of the
Buenos Aires Stock Exchange and provides legal advice to national
and international companies. Mr Zang currently holds:
(i) Vice-Chairmanships on the Boards of IRSA (NYSE: IRS, BASE:
IRSA), IRSA Commercial Properties (NASDAQ: IRCP, BASE:
IRCP), Cresud (NASDAQ: CRESY, BASE: CRES) and
(ii) Directorships with Banco Hipotecario (BASE: BHIP),
BrasilAgro (NYSE: LND, BVMF:AGRO3), IDB Development
– a leading conglomerate in the State of Israel which directly
and indirectly owns Clal Insurance Enterprises Holdings (TASE:
CLIS), Shufersal (TASE: SAE), Cellcom (NYSE & TASE: CEL),
Properties & Building Corp. (TASE: PTBL), ADAMA Agricultural
Solutions, Elron Electronic Industries (TASE: ELRN) among
others.
Mr Zang has not held any other Directorships with listed companies
in the last three years.
Wayne Hubert
Non-Executive Director
Member of the Audit Committee
Appointed 18 Oct 2011
Re-elected by shareholders on 16 Dec 2014
Mr Hubert is a mining executive with over 15 years’ experience
working in the South American resources sector. From 2006 until
2010 he was the Chief Executive Officer of ASX-listed Andean
Resources Limited and led the team that increased Andean’s value
from $70 million to $3.5 billion in four years. Andean was developing
a world-class silver and gold mine in Argentina with a resource of
over 5 million ounces of gold when it was acquired by Goldcorp Inc.
of Canada.
Mr Hubert holds a degree in Engineering and a Master of Business
Administration and has held executive roles for Meridian Gold with
experience in operations, finance and investor relations. In addition
to his role at Austral Gold Limited, Mr Hubert is a Director of InZinc
Mining Limited (TSX-V: IZN).
25
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
DIRECTORS
& OFFICERS
Ben Jarvis
Non-Executive Director
Appointed 2 Jun 2011
Re-elected by shareholders on 16 Dec 2014
Mr Jarvis is the Managing Director of Six Degrees Investor Relations,
an Australian advisory firm that provides investor relations services
to a broad range of companies listed on the Australian Securities
Exchange.
Mr Jarvis was educated at the University of Adelaide where he
majored in Politics.
Mr Jarvis has not held any other Directorships with listed companies
in the last three years.
Pablo Vergara del Carril
Non-Executive Director
Member of the Audit Committee
Appointed 18 May 2006
Re-elected by shareholders on 30 Nov 2016
Mr Vergara del Carril is a lawyer and is professor of Postgraduate
Degrees for Capital Markets, Corporate Law and Business Law at the
Argentine Catholic University.
He is a member of the International Bar Association, the American
Bar Association and the AMCHAM, among other legal and business
organisations. He is a founding Board member of the recently
incorporated Australian-Argentinean Chamber of Commerce. He is
a Board member of the Argentine Chamber of Corporations and
also an officer of its Legal Committee. He is recognised as a leading
lawyer in Corporate, Real Estate, M&A, Banking & Finance and Real
Estate Law by international publications such as Chamber &
Partners, Legal 500, International Financial Law Review, Latin Lawyer
and Best Lawyer.
He is a Director of Banco Hipotecario SA. (BASE: BHIP), Nuevas
Fronteras (owner of the Intercontinental Hotel in Buenos Aires), IRSA
Commercial Properties (NASDAQ: IRCP, BASE: APSA) and
Emprendimiento Recoleta SA (owner of the Buenos Aires Design
Shopping Centre), among other companies. Mr Vergara del Carril is
also a Director of Guanaco Mining Company Limited and Guanaco
Capital Holding Corp.
Mr Vergara del Carril has not held any other Directorships with listed
companies in the last three years.
26
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 Robert Trzebski
Non-Executive Director
Chairman of the Audit Committee
Appointed 10 Apr 2007
Re-elected by shareholders on 30 Nov 2016
Andrew Bursill
(Franks & Associates)
Company Secretary
Appointed 10 Jan 2014
Dr Trzebski holds a degree in Geology, PhD in Geophysics, Masters
in Project Management and has over 20 years of professional
experience in mineral exploration, project management and mining
services.
He is currently Chief Operating Officer of Austmine Ltd. As a fellow
of the Australian Institute of Mining and Metallurgy, Dr Trzebski
has acted as the Competent Person (CP) for the Company’s
ASX releases.
Mr. Bursill holds a Bachelor of Agricultural Economics from the
University of Sydney and is a Chartered Accountant, qualifying with
PricewaterhouseCoopers (formerly Price Waterhouse).
Since commencing his career as an outsourced CFO and Company
Secretary in 1998, Mr Bursill has been CFO, Company Secretary and/
or Director for numerous ASX listed, unlisted public and private
companies, in a range of industries covering mineral exploration, oil
and gas exploration, biotechnology, technology, medical devices,
retail, venture capital and wine manufacture and distribution.
Dr Trzebski has not held any other Directorships with listed
companies in the last three years.
In addition to his role at Austral Gold Limited, Mr Bursill is currently
a Director of Argonaut Resources Limited.
27
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
28
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 Directors’ Meetings
The number of Directors’ meetings (including meetings of
Committees of Directors) and number of meetings attended
by each of the Directors of the Company during the financial
year are:
Directors’
meetings
Audit
Committee
meetings
Director
Pablo Vergara del Carril
Robert Trzebski
Wayne Hubert
Eduardo Elsztain
Saul Zang
Stabro Kasaneva
Ben Jarvis
A
2
2
2
2
2
2
2
B
2
2
2
2
2
2
2
A
3
3
3
N/A
N/A
N/A
N/A
B
3
3
3
N/A
N/A
N/A
N/A
A: Number of meetings attended
B: Number of meetings held during the time the Director held office
during the year
Board and Audit Committee Meetings held from July 2016 - June
2017
Shares and Options
At the date of this report there are no options over the
Company’s ordinary shares.
During or since the end of the financial year, the Company
has not granted options over its ordinary shares.
Indemnity and Insurance of Officers
Under a deed of access, indemnity and insurance, the
Company indemnifies each person who is a Director or
secretary of Austral Gold Limited against:
• any liability (other than for legal costs) incurred by a
Director or secretary in his or her capacity as an officer of
the Company or of a subsidiary of the Company; and
• reasonable legal costs incurred in defending an
action for a liability incurred or allegedly incurred by a
secretary in his or her capacity as an officer of the
Company or of a subsidiary of the Company.
The above indemnities:
• apply only to the extent the Company is permitted by
law to indemnify a Director or secretary;
• are subject to the Company’s constitution and the
prohibitions in section 199A of the Corporations Act; and
• apply only to the extent and for the amount that a
Director or secretary is not otherwise entitled to be
indemnified and is not actually indemnified by another
person (including a related body corporate or an insurer).
Indemnity and Insurance of Auditor
• The Company has not, during or since the end of the
financial year, indemnified or agreed to indemnify the
auditor of the Company or any related entity against a
liability incurred by the auditor.
• During the financial year, the Company has not paid a
premium in respect of a contract to insure the auditor of
the Company or any related entity.
Interests of Directors
• The relevant interest of each Director (directly or
indirectly) in the share capital of the Company, as notified
by the Directors to the Australian Securities Exchange in
accordance with S205G(1) of the Corporations Act 2001,
at the date of this report is as follows:
Director
P Vergara del Carril
R Trzebski
E Elsztain
S Zang
S Kasaneva
B Jarvis
W Hubert
Ordinary Shares
68,119
-
450,741,567
1,435,668
1,691,398
-
1,750,000
It is also noted:
1. P Vergara del Carril, E Elsztain and S Zang are Directors
of Guanaco Capital Holding Corp which holds 31,386,890
shares according to the last substantial holder notice
lodged in February 2017.
2. E Elsztain and S Zang are Directors of IFISA which holds
414,440,857 shares according to the last substantial
holder notice lodged in February 2017.
E Elsztain is the ultimate beneficial owner of IFISA.
Remuneration Report (Audited)
Remuneration Policy
The full Board of Austral Gold is responsible for determining
remuneration policies in respect of executives and Key
Management Personnel (KMP).
The Company has a Remuneration Policy that aims to
ensure the remuneration packages of Directors and senior
executives properly reflect the person’s duties, responsibili-
ties and level of performance, as well as ensuring that
remuneration is competitive in attracting, retaining and
motivating people of the highest quality.
29
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
Link Between Remuneration and Performance
The Group aims to align its executive remuneration to its
strategic and business objectives and the creation of
shareholder wealth. The table below shows the measures of
the Group’s financial performance over the last 5 years as
required by the Corporations Act 2001. However, these are
not necessarily consistent with the measures used in
determining the variable amounts of remuneration to be
awarded to KMP. As a consequence, there may not always
be a direct correlation between the statutory key perfor-
mance measure and the variable remuneration awarded.
2013
2014
2015
2016
2017
64,209 66,376 62,465 55,865 104,008
(4,755)
(8,966)
(3,088) 27,711
(6,232)
(4.50)
(6.82)
(1.58)
5.25
(0.85)
9.9
7.6
14.2
15.6
15.0
Sales Revenue
(US$'000)
Profit/(loss)
before tax
(US$'000)
Basic EPS (US
cents per share)
Share price
(cents AUD)
The level of remuneration for non-executive Directors is
considered with regard to the practices of other public
companies and the aggregate amount of fees paid to
non-executive Directors approved by shareholders.
At this stage, the level of remuneration is based on market
rates and is not directly linked to shareholders’ wealth.
The Key Management Personnel (KMP) during or since
the end of the financial year were:
The Directors of the Group during or since the end of the
financial year:
Non-Executive Chairman
• Eduardo Elsztain
• Saul Zang
Non-Executive Director
• Pablo Vergara de Carril Non-Executive Director
Non-Executive Director
• Wayne Hubert
Non-Executive Director
• Robert Trzebski
Non-Executive Director
• Ben Jarvis
Chief Executive Officer
• Stabro Kasaneva
The Senior Executive KMP during or since the end of the
financial year:
• José Bordogna
• Michael Brown
Vice President Corporate
Chief Financial Officer
Development
• Diego Guido
• Juan Andres Morel Chief Operating Officer
Vice President Exploration
• Rodrigo Ramirez
(appointed 7 August 2017)
Vice President Technical Services
(appointed 7 August 2017)
Remuneration of KMP
The Group has employment agreements with all executive
KMP in accordance with the laws in the jurisdiction in which
the KMP is employed.
Remuneration of executive KMP is made up of a fixed
component and a variable component comprising short-
term and long-term goals. Performance against pre-deter-
mined targets (KPIs) are used to determine the portion of
the variable component paid annually.
The KPIs are based on financial and non-financial indicators
and include production, safety, cash flow generation
and new business and value accretive investments.
30
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
Details of Remuneration
Details of the nature and amount of each major element of the remuneration of each Directors of the Group and each of the
KMP of the Group during the financial year are:
YEAR ENDED 30 JUNE 2017
PRIMARY
POST-EMPLOYMENT
SHARE-BASED
TOTAL
Cash Salary and
Fees
Cash Bonus
Non-monetary
benefits
Superannuation
Retirement
benefits
Shares
Options
US$
US$
US$
US$
US$
US$
US$
US$
Directors
E Elsztain
S Zang
80,000
40,000
-
-
S Kasaneva
353,880
490,377
W Hubert
R Trzebski
B Jarvis
48,000
27,681
27,681
P Vergara del Carril
40,000
-
-
-
-
Total Directors
617,242
490,377
-
-
-
-
-
-
-
-
Executive KMP
D Guido*
M Brown*
J Bordogna#
144,562
20,905
-
167,817
117,737
6,963
99,912
99,249
-
Total Executive KMP
412,291
237,891
6,963
-
-
-
-
2,630
2,630
-
5,260
-
-
-
-
Total 2017
1,029,533
728,268
6,963
5,260
* KMP was not employed by the Group for the full financial year.
#J Bordogna became a KMP on 1 July 2016 and hence is not included in the 2016 KMP remuneration table.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
80,000
40,000
844,257
48,000
30,311
30,311
40,000
-
1,112,879
-
-
-
-
-
165,467
292,517
199,161
657,145
1,770,024
YEAR ENDED 30 JUNE 2016
PRIMARY
POST-EMPLOYMENT
SHARE-BASED
TOTAL
Cash Salary and
Fees
Cash Bonus
Non-monetary
benefits
Superannuation
Retirement
benefits
Shares
Options
E Elsztain
S Zang
US$
80,000
40,000
US$
-
-
S Kasaneva
310,371
163,398
W Hubert
R Trzebski
B Jarvis
48,000
26,668
26,668
P Vergara del Carril
40,000
-
-
-
-
Total Directors
571,707
163,398
Total 2016
571,707
163,398
US$
US$
US$
US$
US$
US$
-
-
-
-
-
-
-
-
-
-
-
-
-
2,517
2,517
-
5,034
5,034
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
80,000
40,000
473,769
48,000
29,185
29,185
40,000
740,139
740,139
31
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 Contractual Arrangement with Executive KMP
Name
Term of Agreement
and notice period
Base salary
Stabro Kasaneva
Chief Executive Officer
No fixed term
30 days notice
Jose Bordogna
Chief Financial Officer
No fixed term
30 days notice
235,511,082 Chilean pesos annually
(US$353,880 at USD:CLP exchange
rate 1:625)
1,580,942 Argentine pesos annually
(US$99,912 at ARS:USD exchange
rate 16:1)
Termination payments
Pro rata bonus accrued
Pro rata bonus accrued
Michael Brown
VP Corporate
Development
No fixed term
30 days notice
250,000 Canadian dollars annually
(US$204,918 at USD:CAD exchange
rate 1:1.22)
i. a lump sum payment equivalent to nine (9)
months’ Annual Base Salary, less applicable deduc-
tions, plus one additional month’s Base Salary for
each full year of service completed after August
1, 2012, up to a maximum of 18 months;
ii. all Annual Base Salary and vacation pay accrued
and owing, less applicable deductions;
iii. if applicable, a pro-rata bonus payment in ac-
cordance with Article III.02; and
iv. continuation of the Employer’s contributions
necessary to maintain the Employee’s participation
for the minimum period prescribed by the applica-
ble employment standard legislation in all group
insurance and benefit or pension plans or programs
provided to the Employee by the Employer immedi-
ately prior to the termination of the Employee’s em-
ployment. The Employee agrees that the Employer
may deduct from any payments hereunder the
Employee’s benefit plan contributions which were
regularly made during the term of this Agreement
and the Employee’s employment in accordance with
the terms of all plans or programs.
Diego Guido
VP Exploration
No fixed term
30 days notice
3,152,667 Argentine pesos annually
(US$200,000 at ARS:USD exchange
rate 16:1)
Pro rata bonus accrued
Relative Proportion of Fixed vs Variable Remuneration Expense
The following table shows the relative proportions of executive remuneration that are linked to performance and those that are
fixed, based on the amounts disclosed as statutory remuneration expense in the tables above.
FIXED REMUNERATION
AT RISK - SHORT-TERM INCENTIVE AT RISK - LONG-TERM INCENTIVE
NAME
2017
2016
2017
2016
2017
2016
Executive Directors
Stabro Kasaneva
42%
66%
KMP
Diego Guido
Michael Brown
Jose Bordogna
67%
60%
50%
0%
0%
0%
End of Remuneration Report (Audited)
58%
33%
40%
50%
34%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
32
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 Other transactions with KMP
Zang, Bergel & Viñes Abogados is a related party since two Directors, Saul Zang and Pablo Vergara del Carril have significant
influence over this law firm based in Buenos Aires, Argentina. Legal fees charged to the Company for the year ended 30 June
2017 amounted to US$129,532 (2016: US$89,888). This concludes the remuneration report, which has been audited.
Auditors
During the year, KPMG were appointed as auditors, and the appointment will be put to shareholders in a resolution at the
upcoming general meeting. This is in accordance with the requirements of the Corporations Act 2001.
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor are
outlined in note 6 to the financial statements.
The Directors are satisfied that the provision of non-audit services during the financial year by the auditor (or by another person
or firm on the auditor’s behalf), is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001.
The Directors are of the opinion that the services as disclosed in note 6 to the financial statements do not compromise the
external auditor’s independence requirements of the Corporations Act 2001 for the following reasons:
• all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the
auditor; and
• none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of
Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including reviewing
or auditing the auditor’s own work, acting in a management or decision-making capacity for the company, acting as advocate
for the company or jointly sharing economic risks and rewards.
Proceedings on Behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to
which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or part of those
proceedings.
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the year ended 30 June 2017 has been received and is included in this report.
Signed in accordance with a resolution of Directors at Sydney.
Rounding of Amounts
The Company is a company of the kind referred to in ASIC Instrument 2016/191, dated 1 April 2016, and in accordance with that
Instrument amounts in the Directors’ Report and the financial report are rounded off to the nearest thousand dollars, unless
otherwise indicated.
Signed in accordance with a resolution of Directors made pursuant to s.298(2) of the Corporations Act 2001.
For and on behalf of the board
Robert Trzebski
Director
29 September 2017
33
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Austral Gold Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of Austral Gold Limited for
the financial year ended 30 June 2017 there have been:
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
i.
ii.
KPM_INI_01
PAR_SIG_01
PAR_NAM_01
PAR_POS_01
PAR_DAT_01
PAR_CIT_0
KPMG
Daniel Camilleri
Partner
Sydney
29 September 2017
34
KPMG, an Australian partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under
Professional Standards Legislation.
FINANCIAL
STATEMENTS
35
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Austral Gold Limited and its Subsidiaries
For the year ended 30 June 2017
All figures are reported in US$
Consolidated
Notes
30 June 2017
US$’000
30 June 2016
US$’000
CONTINUING OPERATIONS
Revenue
Cost of sales
Gross profit
Administration expenses
Loss from foreign exchange
Gain/(loss) on movements in financial assets
Gain on acquisition of subsidiary
Finance costs
(Loss)/Profit before income tax
Income tax (expense) / Benefit
(Loss)/Profit after income tax expense
(Loss)/Profit attributable to:
Owners of the Company
Non-controlling interests
OTHER COMPREHENSIVE INCOME/(LOSS)
Items that may not be classified subsequently to profit or loss
Profit/(Loss) arising on revaluation of financial assets, net of tax
Items that may be classified subsequently to profit or loss
Foreign currency translation
Total comprehensive (loss)/income for the year
Comprehensive (loss)/income attributable to:
Owners of the Company
Non-controlling interests
EARNINGS PER SHARE (cents per share):
Basic earnings per share
Diluted earnings per share
4
5
5
22
7
22
24
24
8
8
104,008
(91,439)
12,569
(15,498)
(312)
(2,262)
-
(729)
(6,232)
1,752
(4,480)
(4,380)
(100)
(4,480)
55,865
(51,217)
4,648
(8,306)
(362)
4,888
27,335
(492)
27,711
(3,305)
24,406
25,130
(724)
24,406
824
8,753
(249)
(3,905)
(3,805)
(100)
(3,905)
(0.85)c
(0.85)c
(13)
33,146
33,870
(724)
33,146
5.25c
5.25c
The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.
36
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 STATEMENT OF FINANCIAL POSITION
Austral Gold Limited and its Subsidiaries
As at 30 June 2017
All figures are reported in US$
Consolidated
Notes
30 June 2017
US$’000
30 June 2016
US$’000
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Inventories
Total current assets
Non-current assets
Other receivables
Mine properties *
Property, plant and equipment *
Exploration and evaluation expenditure
Goodwill *
Deferred tax assets
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Employee entitlements
Borrowings
Total current liabilities
Non-current liabilities
Trade and other payables
Provisions
Borrowings
Deferred tax liability
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Accumulated losses**
Reserves**
Non-controlling interest
TOTAL EQUITY
10
12
13
11
12
14
15
16
7
17
18
20
17
19
20
7
21
22
24
23
6,094
14,781
975
19,347
41,197
626
15,942
80,554
14,175
926
2,935
115,158
156,355
16,933
1,733
10,880
29,546
8
10,195
11,649
1,578
23,430
52,976
103,379
99,050
(9,911)
39
14,201
11,878
13,928
8,142
14,202
48,150
341
18,699
54,207
12,247
926
2,016
88,436
136,586
12,914
1,336
1,879
16,129
39
5,697
2,071
4,676
12,483
28,612
107,974
93,537
235
(7,448)
21,650
103,379
107,974
* Goodwill, Mine properties, PPE and Exploration and evaluation expenditure for 30 June 2016 has been reclassified for comparability with current year
classifications and disclosures for these assets. Refer to Note 2.5.
** Accumulated losses and reserves at 30 June 2016 have been restated. Refer to Note 22.
37
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 STATEMENT OF CHANGES IN EQUITY
Austral Gold Limited and its Subsidiaries
For the year ended 30 June 2017
All figures are reported in US$
Note
Balance at 1 July 2015
Profit/(loss) for the year
Other comprehensive income for the year, net of income tax:
Revaluation of financial assets
Revaluation of financial assets transferred
to accumulated losses
Remeasurement of retained earnings
related to 51% acquisition of Casposo
Foreign exchange movements from translation
of financial statements to US dollars
Total comprehensive income/(loss) for the year
Acquisition of subsidiary with non-controlling interest
Transactions with owners in their capacity as owners:
Dividend distribution
Balance at 30 June 2016
Profit/(loss) for the year
Other comprehensive income for the year, net of income tax:
Revaluation of financial assets
Revaluation of financial assets transferred to accumulated
losses
Share options expired
Profits transferred to profit reserve
Foreign exchange movements from translation
of financial statements to US dollars
Total comprehensive income/(loss) for the year
Transfer of minority interest to retained earnings
Acquisition of additional 19% of Casposo with
non-controlling interest
Transactions with owners in their capacity as owners:
Shares issued
Dividend distribution
Balance at 30 June 2017
24
24
22
24
23
24
24, 22
24, 22
24, 22
24
22
24
21
26
Consolidated
Issued
capital
Accumulated
losses
Reserves
US$’000
US$’000
US$’000
Non-
controlling
interest
US$’000
Total
US$’000
93,537
(29,379)
(7,179)
1,557
58,536
-
-
-
-
-
-
-
25,130
-
(724)
24,406
-
8,753
3,504
(3,504)
980
-
-
(13)
-
-
-
8,753
-
980
(13)
29,614
5,236
(724)
34,126
-
-
(5,505)
20,955
15,450
-
(138)
(138)
93,537
235
(7,448)
21,650
107,974
-
-
-
-
-
-
-
-
(4,380)
-
(100)
(4,480)
-
824
(1,741)
1,741
13
(13)
(3,362)
3,362
-
(249)
-
-
-
-
824
-
-
(249)
(9,470)
5,665
(100)
(3,905)
(991)
-
991
-
315
5,184
(8,184)
(2,685)
5,513
-
-
-
-
-
5,513
(3,362)
(156)
(3,518)
99,050
(9,911)
39
14,201
103,379
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes
38
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 STATEMENT OF CASH FLOWS
Austral Gold Limited and its Subsidiaries
For the year ended 30 June 2017
All figures are reported in US$
Consolidated
Notes
30 June 2017
US$’000
30 June 2016
US$’000
Changes in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents, at the end of the period
10
Net increase / (decrease) in cash and cash equivalents
11,878
6,094
(5,784)
7,303
11,878
4,575
Causes of change in cash and cash equivalents
Operating activities
Profit/(Loss) after income tax
Non-cash items
Income tax expense recognised in profit or loss
Depreciation and amortisation
Loss from foreign exchange
Interest received
Recognition option to acquire further 10% of Casposo mine
Finance Charges
Expense recognised related to the mine closure provision
Expense recognised related to inventory obsolecence
Allowance for doubtful debts
Non-cash employee entitlements
(Gain)/loss in fair value of financial assets
Gain on acquisition of subsidiary
Write-off and disposal of plant and equipment
Net cash from operating activities before change
in assets and liabilities
Changes in working capital:
Decrease / (increase) in inventory
Decrease / (increase) in trade and other receivables
Increase / (decrease) in trade and other payables
Net cash provided through operating activities
(4,480)
24,406
(1,752)
29,993
312
(14)
(245)
532
170
949
97
397
2,262
-
-
28,220
(6,094)
(3,866)
9,426
3,305
14,616
362
(123)
-
-
-
-
-
-
(4,893)
(27,335)
194
10,532
4,726
7,859
(7,952)
27,687
15,165
Cash flows from investing activities
Acquistiion of subsidiary, net of cash acquired (Casposo 51%)
Exercise of option to acquire further 19% of Casposo
22
Net additions to plant and equipment
Net proceeds from sale of investment in listed shares
Deferred consideration for investment in subsidiaries (Cachinalito)
Final payment for Amancaya exploration and evaluation
-
(3,000)
(34,480)
1,907
(246)
(2,000)
1,129
-
(11,295)
7,547
(766)
(5,824)
39
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 STATEMENT OF CASH FLOWS
Austral Gold Limited and its Subsidiaries
For the year ended 30 June 2017
All figures are reported in US$
Cash acquired Argentex acquisition
Payment for investment in exploration and evaluation
Payment for investment in mine properties
Interest received
Net cash used in investing activities
Cash flows from financing activities
Net proceeds/(payments) from borrowings
Financial leases payments
Dividend distribution to shareholders
Dividend distribution to non-controlling interests
Repayment of loan issued to related party
Net cash provided by financing activities
Net increase / (decrease) in cash and cash equivalents
Consolidated
Notes
30 June 2017
US$’000
30 June 2016
US$’000
29
16
14
20
20
26
32
26
(1,008)
(2,536)
14
-
(2,329)
(814)
123
(41,323)
(12,228)
12,607
(4,052)
(3,362)
-
2,659
7,852
(5,784)
4,638
(3,082)
-
(270)
351
1,638
4,575
The above Statement of Cash Flows should be read in conjunction with the accompanying notes
40
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 NOTES TO THE FINANCIAL STATEMENTS
1.
BASIS OF PREPARATION
1.1 Reporting entity
Austral Gold Limited (“the Company”) is a company limited by shares that is incorporated and domiciled in
Australia, whose shares are publicly traded on the Australian Securities Exchange under the symbol AGD and on
the TSX Venture Exchange under the symbol AGLD.
These consolidated financial statements comprise the Company and its subsidiaries (‘the Group’) and are
presented in English. They were authorised for issue in accordance with a resolution of the Board of Directors on
29 September 2017.
The nature of the operations and principal activities of the Group are described in the Directors’ Report.
1.2 Basis of accounting
The consolidated financial statements are general purpose financial statements which have been prepared in
accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting
Standards Board (‘AASB’) and the Corporations Act 2001, as appropriate for for-profit oriented entities. The
consolidated financial statements also comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board.
The consolidated financial statements have been prepared under the historical cost convention, except for certain
financial assets and liabilities which are stated at fair value.
1.3 Presentation and functional currency
These consolidated financial statements are presented in United States dollars (US$), which is the presentation
and functional currency of the Group.
1.4 Rounding off
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument
191/2016 and in accordance with that Instrument, amounts in the financial report and Directors’ report have been
rounded off to the nearest thousand dollars, unless otherwise stated.
1.5 Use of estimates and judgements
In preparing these consolidated financial statements, management has made judgements, estimates and
assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised
prospectively. Information about assumptions and estimation uncertainties that have a significant risk of resulting
in a material adjustment in the year ending 30 June 2017 is detailed below:
Estimated impairment / reversal of impairment of mine properties
Where indicators of impairment or reversal of impairment are identified the recoverable amounts of the assets
are determined. The recoverable amounts of the assets have been determined using reports from independent
experts. The calculations require the use of assumptions. Refer to note 14 for details of these assumptions.
Estimated impairment of exploration and evaluation assets
The Group tests at each reporting date whether there are any indicators of impairment as identified by AASB
6 “Exploration for and Evaluation of Mineral Resources”. Where indicators of impairment are identified, the
recoverable amounts of the assets are determined. No indicators of impairment were identified in the current year.
Estimate of mine closure provisions
Obligations associated with exploration and mine properties are recognised when the Group has a present
obligation, the future sacrifice of the economic benefits is probable, and the provision can be measured reliably.
The provision is measured at the present value of the future expenditure and a corresponding rehabilitation asset
is also recognised.
On an ongoing basis, the rehabilitation will be remeasured in line with the changes in the time value of money
(recognised as an expense and an increase in the provision), and additional disturbances (recognised as additions to
a corresponding asset and rehabilitation liability).
41
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
Measurement of fair values
A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both
financial and non-financial assets and liabilities.
When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows:
• Level 1 – the instrument has quoted prices (unadjusted) in active markets for identical assets or liabilities
•
Level 2 – inputs other than quoted prices within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices), or indirectly (i.e. derived from prices)
• Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The Group holds listed equity securities at fair value, which are measured at the closing bid price at the end of the
reporting period. These financial assets held at fair value fall within Level 1 of the fair value hierarchy. The Group
also holds options (warrants) which rely on estimates and judgements to calculate a fair value for these financial
instruments using the Black Scholes model. These financial assets held at fair value fall within Level 2 of the fair
value hierarchy. The option to buy a further 10% in the Casposo mine is within Level 3 of the fair value hierarchy.
1.6 Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Group only.
Supplementary information about the parent entity is disclosed in note 30.
2.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the material accounting policies adopted by the Group in the preparation of the
consolidated financial statements. The accounting policies have been consistently applied, unless otherwise stated.
2.1 Basis of consolidation
A subsidiary is any entity over which the Group has control. The Group controls an entity when the Group is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is
transferred to the Group. They are de-consolidated from the date that control ceases.
A list of subsidiaries is contained in note 28 to the financial statements. The financial statements of the
subsidiaries are prepared for the same reporting periods as the parent company using consistent accounting
policies.
All intercompany balances and transactions between entities in the Group, including any unrealised profits or
losses, have been eliminated on consolidation.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting.
Non-controlling interests in the equity and results of the subsidiaries are shown separately in the statement of profit or
loss and other comprehensive income, statement of financial position and statement of changes in equity of the Group.
Business combinations
The Group accounts for business combinations using the acquisition method when control is transferred to the
Group. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable
net assets acquired. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase
is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the
issue of debt or equity securities.
2.2 Revenue recognition
Sale of minerals
Sale of minerals is recognised at the point of sale, which is when the customer has taken delivery of the goods,
the risks and rewards have been transferred to the customer and there is a valid contract.
42
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
Interest revenue
Interest revenue is recognised as it accrues, using the effective interest method. This is a method of calculating
the amortised cost of a financial asset and allocating the interest income over the relevant period using the
effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected
life of the financial asset to the net carrying amount of the financial asset.
2.3 Goods and services tax (GST)/ Value added tax (VAT)
Revenues, expenses and assets are recognised net of the amount of GST/VAT, except where the amount of GST/
VAT incurred is not recoverable from the tax authorities. In these circumstances the GST/VAT is recognised as part
of the cost of acquisition of the asset or as part of the expense.
Receivables and payables in the statement of financial position are shown inclusive of GST/VAT. Cash flows are
presented in the statement of cash flows on a gross basis, except for the GST/VAT component of investing and
financing activities, which are disclosed as operating cash flows.
2.4 Foreign currency translation
The financial statements are presented in United States Dollars (US$), which is the Group’s functional and
presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into US$ using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from
the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in profit or loss.
2.5 Mine Properties
Mines in production represent the aggregated exploration and evaluation expenditure and capitalised
development costs in respect of areas of interest in which mining is ready to or has commenced. Mine development
costs are deferred until commercial production commences, at which time they are depreciated on a units-of-
production basis over the mineable reserves. Once production commences, further development expenditure is
classified as part of the cost of production, unless substantial future economic benefits can be established.
Reclassifications were made to the comparative balances of Intangible Assets & Goodwill, Property, Plant &
Equipment and Exploration and Evaluation Expenditure to enable the increased transparency of disclosure of
Mine Properties. The impact of the reclassification is outlined in the table below:
Intangible Assets & Goodwill
Mine properties
Property, plant and equipment
Exploration and evaluation expenditure
Goodwill
Impact on Non-Current Assets
Consolidated
30 June 2016
Remeasured
US$’000
30 June 2016
Previously Reported
US$’000
-
18,699
54,207
12,247
926
19,017
-
51,453
15,609
-
Impact
US$’000
(19,017)
18,699
2,754
(3,362)
926
-
There was no impact on the comparative Statement of Profit or Loss and Other Comprehensive Income,
Statement of Changes in Equity or Statement of Cashflows of this reclassification.
Amortisation
Aggregated costs on productive areas are amortised over the life of the area of interest to which such costs relate
on the units-of-production basis.
43
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
Deferred stripping costs
Deferred stripping costs represent certain mining costs, principally those that relate to the stripping of waste, which
provides access so that future economically recoverable ore can be mined. Stripping (i.e. overburden and other
waste removal) costs incurred in the production phase of a surface mine are capitalised to the extent that they
improve access to an identified component of the ore body and are subsequently amortised on a systematic basis
over the expected useful life of the identified component of the ore body.
Capitalised stripping costs are disclosed as a component of Mine Properties. Components of an ore body are
determined with reference to life of mine plans and take account of factors such as the geographical separation of
mining locations and/or the economic status of mine development decisions. Capitalised stripping costs are initially
measured at cost and represent an accumulation of costs directly incurred in performing the stripping activity that
improves access to the identified component of the ore body, plus an allocation of directly attributable overhead
costs. The amount of stripping costs deferred is based on a relevant production measure which uses a ratio obtained
by dividing the tonnage of waste mined by the quantity of ore mined for an identified component of the ore body.
Stripping costs incurred in the period for an identified component of the ore body are deferred to the extent that
the current period ratio exceeds the expected waste to ratio for the life of the identified component of the ore body.
Such deferred costs are then charged against the statement of profit and loss when the stripping ratio falls below
the life of mine ratio. These are a function of the mine design and therefore any changes to the design will generally
result in changes to the ratio. Changes in other technical or economic parameters that impact on reserves may also
have an impact on the component ratio even though they may not impact the mine design. Changes to the life of
mine plan, identified components of an ore body, stripping ratios, units of production and expected useful life are
accounted for prospectively. Deferred stripping costs form part of the total investment in a cash generating unit,
which is reviewed for impairment if events or changes in circumstances indicate that the carrying value may not be
recoverable.
2.6 Exploration and evaluation expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest
and carried forward in the statement of financial position where:
2.6.1
2.6.2
rights to tenure of the area of interest are current; and
one of the following conditions is met:
i
such costs are expected to be recouped through successful development and exploitation of the
area of interest or alternatively, by its sales; or
exploration and/or evaluation activities in the area of interest have not, at reporting date, yet
reached a stage which permits a reasonable assessment of the existence or otherwise of
economically recoverable reserves and active and significant operations in the area are continuing.
ii
Expenditure relating to pre-exploration activities is written off to the profit or loss during the period in which the
expenditure is incurred.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest.
Accumulated expenditure on areas that have been abandoned, or are considered to be of no value, are written
off in the year in which such a decision is made.
When the technical and commercial feasibility of an undeveloped mining project has been demonstrated, the
project enters the construction phase. The cost of the project assets are transferred from exploration and
evaluation expenditure and reclassified into construction phase and include past exploration and evaluation costs,
development drilling and other subsurface expenditure. When full commercial operation commences, the
accumulated costs are transferred into Mine Properties or an appropriate class of property, plant and equipment.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life
of the area according to the production output basis.
2.7 Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment
losses.
44
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
Depreciation
The depreciated amount of property, plant and equipment is recorded either on a straight-line basis or on the production
output basis to the residual value of the asset over the lesser of mine life or estimated useful life of the asset.
Depreciation rates and methods are reviewed annually for appropriateness. When changes are made,
adjustments are reflected prospectively in current and future periods only. Depreciation is expensed, except
those that are included in the amount of exploration assets as an allocation of production overheads.
The depreciation rate used for fixed assets which are not used in mining production is between 10%-20%. The
depreciation rate used in mining production is provided for over the life of the area of interest on a production
output basis.
De-recognition and disposal
An item of property, plant and equipment is de-recognised upon disposal or when no further future economic
benefits are expected from its use or disposal.
Any gain or loss arising on de-recognition of the asset (calculated as the difference between net disposal proceeds and
the carrying amount of the asset) is included in the statement of profit or loss in the year the asset is de-recognised.
2.8 Cash and cash equivalents
For the purpose of the Statement of Cash Flows, cash includes:
i
ii
cash on hand and at call deposits with banks or financial institutions; and
other short-term highly liquid investments with original maturities of three months or less, and bank
overdrafts.
2.9
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. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted by reporting date.
Deferred income tax is provided on all temporary differences at reporting date between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
i
when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss; or
when the taxable temporary difference is associated with investments in subsidiaries, associates, or
interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled
and it is probable that the temporary difference will not reverse in the foreseeable future.
ii
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and unused tax losses, 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:
i
when the deferred income 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; or
when the deductible temporary difference is associated with investments in subsidiaries, associates, or
interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is
probable that the temporary difference will reverse in the foreseeable future and taxable profit will be
available against which the temporary difference can be utilised.
ii
The carrying amount of any deferred income tax assets recognised 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 income tax asset to be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply for the year
when the asset is realised or the liability is settled, based on tax laws that have been enacted or substantively
enacted at reporting date.
45
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
Income taxes relating to items recognised directly to equity are recognised in equity and not in profit or loss.
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.
2.10 Inventories
Materials and supplies are stated at the lower of cost and net realisable value on a ‘first in first out’ basis. Cost
comprises direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate
proportion of variable and fixed overhead expenditure based on normal operating capacity.
If the ore stockpile is not expected to be processed in 12 months after reporting date, it is included in non-current
assets and the net realisable value is calculated on a discounted cash flow basis. Stockpiles are measured by
estimating the number of tonnes added and removed from the stockpile, the number of contained ounces based on
assay data, and the estimated recovery percentage. Stockpile tonnages are verified to periodic surveys.
Gold bullion and gold-in-process are valued at the lower of cost and net realisable value. Net realisable
value is determined using the prevailing metal prices.
2.11 Trade and other receivables
Trade accounts receivable, amounts due from related parties and other receivables represent the principal
amounts due at balance date plus accrued interest and less, where applicable, any unearned income and
provisions for doubtful accounts.
2.12 Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial
year and which are unpaid. They are measured at amortised cost and are not discounted. The amounts are
unsecured and are usually paid within 30 days of recognition.
2.13 Interest bearing liabilities
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction
costs. They are subsequently measured at amortised cost using the effective interest method. Where there is an
unconditional right to defer settlement of the liability for at least 12 months after the reporting date, the loans or
borrowings are classified as non-current.
2.14 Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for
which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
If the effect of the time value of money is material, provisions are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market assessments of the time value of money and 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 a finance cost.
2.15 Leases
Assets held by the Group under leases that transfer to the Group substantially all of the risks and rewards of
ownership are classified as finance leases. The leased assets are measured initially at an amount equal to the
lower of their fair value and the present value of the minimum lease payments.
Lease payments for operating leases, where all the risks and benefits remain with the lessor, are recognised as an
expense in the profit or loss on a straight line basis over the lease term.
2.16 Impairment of non-financial assets
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable
amount of the asset, being the higher of the asset’s fair value less costs to sell or value in use, is compared to the
asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the
profit or loss. In assessing value in use, the estimated future cash flows are discounted to their present value using
a pre-tax rate.
46
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives or more
frequently if events or circumstances indicate that the carrying value may be impaired.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
2.17 De-recognition of financial assets and financial liabilities
Financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
derecognised when:
i
ii
the rights to receive cash flows from the asset have expired; or
the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay
them in full without material delay to a third party under a ‘pass- through’ arrangement; or
the Group has transferred its rights to receive cash flows from the asset and either;
(a) has transferred substantially all the risks and rewards of the asset; or
(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has
iii
transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset and has neither transferred nor
retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is
recognised to the extent of the Group’s continuing involvement in the asset. Continuing involvement that takes
the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the
asset and the maximum amount of consideration received that the Group could be required to repay.
Fair value through other comprehensive income
The Group’s investments in equity securities are classified as ‘fair value through Other Comprehensive Income’.
Subsequent to initial recognition fair value through other comprehensive income investments are measured at fair
value with gains or losses being recognised directly through Other Comprehensive Income in the Statement of
Profit or Loss and Other Comprehensive Income.
Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de
recognition of the original liability and the recognition of a new liability, and the difference in the respective
carrying amounts is recognised in profit or loss.
2.18 Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
2.19 Earnings per share
Basic earnings per share
Basic earnings per share is determined by dividing net profit after income tax attributable to members of the
parent, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of
ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued
during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares and weighted average number of shares assumed to have been issued for no consideration in relation to
dilutive potential ordinary shares.
47
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
2.20 Borrowing costs
Borrowing costs are recognised as an expense when incurred unless they are attributable to qualifying assets, in
which case they are then capitalised as part of the assets.
2.21 Employee leave benefits
Short-term employee benefits
Liabilities for employees’ entitlements to wages and salaries, annual leave and other employee entitlements
expected to be settled within 12 months of the reporting date are recognised in the current provisions in respect
of employees’ services up to reporting date and are measured at the amounts expected to be paid when the
liabilities are settled. Liabilities for non- accumulating sick leave are recognised when the leave is taken and
measured at the rates paid or payable.
Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the
present value of expected future payments to be made in respect of services provided by employees up to
the reporting date using the projected unit credit method. Consideration is given to expected future wage and
salary levels, experience of employee departures, and periods of service. Expected future payments are
discounted using market yields at the reporting date on national government bonds with terms to maturity and
currencies that match, as closely as possible, the estimated cash outflows.
Superannuation
The Company contributes to employee superannuation funds. Contributions made by the Company are legally
enforceable. Contributions are made in accordance with the requirements of the Superannuation Guarantee Legislation.
2.22 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker.
The chief operating decision maker, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Chief Executive Officer.
2.23 New, revised or amending Accounting Standards and Interpretations adopted
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by
the AASB that are mandatory for the current reporting period. The adoption of these Accounting Standards and
Interpretations did not have any significant impact on the financial performance or position of the Group.
3.
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS NOT YET MANDATORY OR EARLY ADOPTED
There are currently no AASB standards, amendments to standards and interpretations that have been identified as
those which may impact the entity in the period of initial application.
IFRS 15 Revenue from Contracts with Customers
The IASB has issued a new standard for the recognition of revenue with an effective date of 1 January 2018. This will
replace IAS 18 which covers contracts for goods and services and IAS 11 which covers construction contracts.
The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a
customer – so the notion of control replaces the existing notion of risks and rewards.
A new five-step process must be applied before revenue can be recognised:
•
•
•
•
•
identify contracts with customers
identify the separate performance obligation
determine the transaction price of the contract
allocate the transaction price to each of the separate performance obligations, and
recognise the revenue as each performance obligation is satisfied.
These accounting changes may have flow-on effects on the entity’s business practices regarding systems, processes
and controls, compensation and bonus plans, contracts, tax planning and investor communications.
AASB 16 Leases
AASB 16 removes the classification of leases as either operating or finance leases – for the lessee – effectively treating
all leases as finance leases. Short leases (less than 12 months) and leases of low-value assets (such as personal
48
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
computers) are exempt from the lease accounting requirements. There are also changes in accounting over the life
of a lease. In particular, companies will now recognise a front-loaded pattern of expenses for most leases, even when
they pay constant annual rentals. Lessor accounting remains similar to current practice – ie. Lessors continue to classify
leases as finance and operating leases.
AASB 16 is effective for annual reporting periods beginning on or after 1 January 2019. The Group does not forsee a
significant impact for its operations or its financial statement disclosures with regard to this new accounting standard
given that the majority of leases held by the Group are already classified as finance leases.
4.
REVENUE
Operating activities
Revenue from gold and silver sales
Interest revenue
Other revenue
Total revenue
5.
(LOSS)/PROFIT FOR THE YEAR
Profit before income tax includes the following specific expenses:
Production
Staff costs
Allowance for inventory obsolescence
Royalties
Mining Fees
Depreciation of plant and equipment
Depreciation of mine properties
Total cost of sales
Payroll costs within administration expenses
6.
AUDITORS’ REMUNERATION
Remuneration of the auditors of the parent entity for:
Auditing or reviewing the financial reports
Other services/ taxation
Total auditors’ remuneration – parent entity
Remuneration of auditors of subsidiaries for:
Auditing or reviewing the financial reports
Other services/taxation
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
101,025
18
2,965
104,008
54,693
1,097
75
55,865
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
28,829
28,156
26,919
7,929
634
-
3,814
1,741
13
13
18,386
8,863
11,607
5,752
91,439
7,172
51,217
4,515
Consolidated
30 June 2017
US$
30 June 2016
US$
76,260
22,350
98,610
206,750
40,497
53,269
11,737
65,006
113,393
48,428
Total auditors’ remuneration – subsidiaries
247,247
161,821
Note: KPMG acted as auditors of the parent entity and its subsidiaries for the current year. BDO acted as auditor for the parent entity in the prior year.
49
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
7.
INCOME TAX EXPENSE
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
(A) INCOME TAX EXPENSE COMPRISES:
Current tax payable
Deferred tax expense
Income tax (benefit)/expense
(B) RECONCILIATION OF EFFECTIVE INCOME TAX RATE
Profit/ (Loss) before tax
Prima facie income tax (benefit)/expense calculated at 30%
Difference due to blended overseas tax rate*
Difference due to change in tax rate
Allowance for doubtful carry forward tax losses
Non-deductible expenses
Temporary differences not brought into account
Non-assessable gain on acquisition
Income tax (benefit)/expense
* Chile tax rate: 25.5% (2016: 24%)
(C) DEFERRED TAX ASSETS AND LIABILITIES
Deferred tax assets
Inventory
Mining concessions
Accrual for mine closure
Purchase Price Allocation (Casposo)
Leasing assets
Tax losses carried forward
Property, plant and equipment
Other accrued expenses
Total deferred tax assets
Deferred tax liabilities
Other provisions
Mining concessions
Accrual for mine closure
Accrual for annual leave/payroll
Financial assets
Leasing assets
Total deferred tax liabilities
Net deferred tax assets/(liabilities)
Movement in deferred tax balances
Opening balance
Exchange rate difference
Charged to profit and loss
Closing balance
50
2,164
(3,916)
(1,752)
(6,232)
(1,870)
(375)
322
446
(968)
693
-
(1,752)
703
2,028
185
(419)
(3)
955
(518)
4
1,451
1,854
3,305
27,711
8,313
-
1,459
-
2,774
-
(9,241)
3,305
853
-
205
(606)
425
1,505
(856)
490
2,935
2,016
(144)
(1,597)
569
361
(125)
(642)
(1,578)
1,357
(2,660)
101
3,916
1,357
7
(3,451)
252
195
(1,370)
(309)
(4,676)
(2,660)
(805)
-
(1,855)
(2,660)
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 NOTES TO THE FINANCIAL STATEMENTS
8.
EARNINGS PER SHARE
Net profit attributable to owners
Weighted average number of shares used as the denominator
Number for basic earnings per share
Number for diluted earnings per share
Basic earnings per ordinary share (cents)
Diluted earnings per ordinary share (cents)
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
(4,380)
25,130
513,253,037
513,253,037
(0.85)c
(0.85)c
478,761,995
478,761,995
5.25c
5.25c
9.
OPERATING SEGMENTS
Management have determined the operating segments based on reports reviewed by the Chief Operating Decision
Maker (“CODM”). The CODM considers the business from both an operations and geographic perspective and
has identified two reportable segments, Guanaco and Casposo. The CODM monitors the performance in these two
regions separately. The two reportable segments have changed compared to the prior year with the addition
of the Casposo mine to Austral Gold operations. The comparative information for operating segments has been
restated to reflect this change.
Consolidated
30 June 2017
30 June 2016
Guanaco/
Amancaya
US$’000
Casposo
US$’000
Group and
unallocated
items
US$’000
Consolidated
US$’000
Guanaco/
Amancaya
US$’000
Casposo
US$’000
Group and
unallocated
items
US$’000
Consolidated
US$’000
101,025
48,575
6,118
-
54,693
Revenue from gold and
silver sales
57,316
43,708
Interest revenue
Other revenue
-
12
55
2,910
Total segment revenue
57,371
46,630
Cost of sales
(28,082)
(33,364)
1
6
-
7
-
18
2,965
882
17
194
-
104,008
49,474
6,312
(61,446)
(30,864)
(5,737)
Depreciation and
amortisation expense
(21,279)
(8,688)
(26)
(29,993)
(14,168)
(445)
Finance costs
(293)
(436)
Gain/(Loss) from
foreign exchange
Gain on acquisition
of a subsidiary
468
(793)
-
-
-
13
-
(729)
(393)
(50)
(49)
(312)
(413)
51
-
-
-
-
27,335
27,335
Administration expenses
(7,648)
(3,823)
(4,027)
(15,498)
(2,806)
(3,844)
(1,656)
(8,306)
Gain/ (loss) in fair value
of financial assets
-
-
(2,262)
(2,262)
-
-
4,888
4,888
Income tax expense
(144)
919
977
1,752
(2,252)
1,406
(2,459)
(3,305)
Segment profit/(loss)
393
445
(5,318)
(4,480)
(1,422)
(2,307)
28,135
24,406
Segment assets
88,929
58,664
11,781
159,374
67,899
51,625
17,062
136,586
Segment liabilities
42,502
12,680
Capital expenditure
37,607
11,700
813
19
55,995
17,576
8,501
2,535
49,326
14,094
285
59
28,612
14,438
51
21
58
79
-
(3)
1,097
75
55,865
(36,601)
(14,616)
(492)
(362)
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
Geographical information:
Revenue by geographic location
Chile
Argentina
Australia
Canada
Total revenue
Non-current assets by geographic location
Chile
Argentina
Australia
Canada
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
57,371
46,635
2
-
49,474
6,391
-
-
104,008
55,865
68,875
46,269
-
14
51,277
37,159
-
-
Total non-current assets
115,158
88,436
10.
CASH AND CASH EQUIVALENTS
Cash at call and in hand
Short-term bank deposits
Total cash and cash equivalents
Reconciliation of Cash
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
6,094
-
6,094
11,827
51
11,878
Cash at the end of the financial year as shown in the Statement of Cash Flows, is reconciled to items in the Statement of Financial Position as
follows:
Cash and cash equivalents
6,094
11,878
Risk Exposure
The Group’s exposure to interest rate risk is discussed in note 25. The maximum exposure to credit risk at the reporting date is the carrying
amount of each class of cash and cash equivalents mentioned above.
52
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
11.
INVENTORIES
Materials and supplies
Ore stocks*
Gold bullion and gold in process
Total inventories
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
7,637
3,592
8,118
8,688
2,443
3,071
19,347
14,202
* Ore stock inventories require estimates and assumptions most notably in regards to grades, volumes, densities, future completion costs and
ultimate sale price. Such estimates and assumptions may change as new information becomes available which may impact upon the carrying
value of inventory. The allowance for inventory obsolescence forming part of the above balance is US$949k (2016: US$257k).
12.
TRADE AND OTHER RECEIVABLES
CURRENT
Trade receivables
Other current receivables
Prepaid income tax
Loans receivable from related parties
GST/VAT receivable
Total current receivables
NON CURRENT
GST/VAT receivable
Other
Total non-current receivables
TRADE DEBTORS
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
1,865
1,586
4,245
-
7,085
3,077
2,695
-
2,659
5,497
14,781
13,928
265
361
626
133
208
341
The ageing of trade receivables is 0 – 30 days
1,865
3,077
12.1 Past due but not impaired
There were no receivables past due at 30 June 2017 (2016: nil).
12.2 Fair value and credit risk
Due to the short term nature of trade receivables, their carrying amount is assumed to approximate their fair
value.
The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivables
mentioned above. Refer to note 25 for more information on the risk management policy of the Group and the
credit quality of the receivables.
12.3 Key customers
The Company is not reliant on any one customer to sell gold and silver produced from the Guanaco and Casposo
mines.
53
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
13.
FINANCIAL ASSETS
CURRENT
Call option to buy a further 10% of Casposo - level 3
Options (warrants) - level 2
Listed equity securities - level 1
Total current financial assets at fair value
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
245
417
313
975
-
4,893
3,249
8,142
The table above sets out the Group’s assets and liabilities that are measured and recognised at fair value at 30 June
2017. The options (warrants) are those attaching to the shares of Fortuna Silver (TSE: FVI) and the fair value is based on
the Black Scholes method using the following assumptions:
• Spot Price: C$6.35 per share
• Volatility: 48.622%
• Strike Price: C$6.0105
• Maturity: October 2018
Listed equity securities as at 30 June 2017 are Fortuna Silver shares being held after the Group exercised warrants
during the year. The listed equity securities on hand as at 30 June 2016 relating to Goldrock Mines Corp were disposed
of during the period while those related to Argentex were eliminated as part of the acquisition (see Note 29 for further
details).
The Group has options to buy the remaining 30% of the Casposo mine with only the first 10% tranche option
considered to be ‘in the money’ as at 30 June 2017. The call options were valued by comparing the discounted future
cashflows related to each remaining 10% tranche and comparing against the contracted price for each 10% option.
Only the first 10% tranche was “in the money” for US$245k.
Fair value hierarchy
Refer to note 1.5 of these financial statements for details of the fair value hierarchy.
Transfers
During the year ended 30 June 2017 there were no transfers between the financial instrument levels of hierarchy.
54
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
14.
MINE PROPERTIES
Consolidated
Mine Properties - 30 June 2017
Cost
Guanaco/Amancaya
US$’000
Casposo
US$’000
Total
US$’000
58,849
8,661
67,510
Accumulated depreciation
(49,910)
(1,658)
(51,568)
Carrying value - Mine Properties
8,939
7,003
15,942
MOVEMENTS IN CARRYING VALUE
Carrying amount at beginning of the year
9,655
9,044
18,699
Additions for the year
1,556
47
1,603
Increase in mine closure provision
3,593
-
3,593
Transfers from Exploration and Evaluation Expenditure
6,274
-
6,274
Disposals for the year
Adjustment
Depreciation for the year
(2,657)
(3)
(2,660)
490
(450)
40
(9,972)
(1,635)
(11,607)
Carrying amount at end of the year
8,939
7,003
15,942
Mine Properties - 30 June 2016
Cost
49,593
9,067
58,660
Accumulated depreciation
(39,938)
(23)
(39,961)
Carrying value - Mine Properties
9,655
9,044
18,699
MOVEMENTS IN CARRYING VALUE
Carrying amount at beginning of the year
23,518
-
23,518
Additions for the year
2,801
12,142
14,943
Increase in mine closure provision
285
-
285
Transfers to Property, Plant and Equipment
(1,315)
(1,440)
(2,755)
Transfers to Exploration and Evaluation Expenditure
(9,905)
(1,635)
(11,540)
Depreciation
(5,729)
(23)
(5,752)
Carrying amount at end of the year
9,655
9,044
18,699
The comparative figures have been reclassified as Mine Properties whereas they were disclosed as Intangible assets in
financial statements for the year ended 30 June 2016.
Impairment – Guanaco/Amancaya
The Guanaco mine has been determined by Management, along with the Amancaya properties in the surrounding
areas, and including the small mining services on-site provider, to be a single cash generating unit (“CGU”). The mine
properties noted above and the property, plant and equipment that is an intrinsic part of the mine and its structure
(included in note 15) are included in determining the carrying value of the CGU for the purposes of assessing for
impairment.
Management have assessed the fair value and book value of the Guanaco project to be both within the acceptable
range of between US$84.2m and US$127.5m (preferred value US$105.9m) (2016: US$85.5m) and therefore no
impairment charge has been applied to the assets for the current year. The fair value is based on an independent
valuation using a discounted cash flow model and the following assumptions:
• Gold price: US$1,250/oz – US$1,310/oz (2016:
US$1,325/oz – US$1,207/oz)
•
Life of Mine: 8 years (Life of mine based on most recent
financial model used for impairment testing)
• Discount Rate (post-tax): 6.3% (2016: 5.7%)
55
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
Goodwill
Goodwill has arisen on the acquisition of a subsidiary, Ingenieria y Mineria Cachinalito Limitada. The recoverable
amount of the goodwill arising from the Cachinalito business has been determined by including it as part of the
combined Guanaco/Amancaya CGU described above.
In light of the results of the independent valuation, management has assessed the goodwill as not being impaired.
Impairment – Casposo
After the recent acquisition of and as part of the restart of full operations at the Casposo gold-silver mine (‘Casposo’)
an update to the Mineral Resource and Ore Reserve estimate was made. The estimates were reviewed by independent
consultants Roscoe Postle Associates (“RPA”), and are summarised in a National Instrument 43-101 (“NI 43-101”) and
JORC 2012 compliant Technical Report dated September 7, 2016.
Management have assessed the fair value and book value of Casposo to be both within the acceptable range of
between US$21.4m and US$43.4m (preferred value US$32.4m) and therefore no impairment charge has been
applied to the assets for the current year. The fair value is based on an independent valuation using a discounted cash
flow model and the following assumptions:
• Gold price: US$1,250/oz – US$1,310/oz
• Life of Mine: 5 years (Life of mine based on most recent financial model used for impairment testing)
• Discount Rate (post-tax): 8.3%
15.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment - at cost
Accumulated depreciation
Carrying amount at end of year
MOVEMENTS IN CARRYING VALUE
Carrying amount at beginning of the year
Additions for the year
Additions from a business combination
Transfers from Mining Properties
Write-off
Disposals for the year
Depreciation for the year
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
132,175
87,442
(51,621)
(33,235)
80,554
54,207
54,207
28,945
45,873
11,295
-
20,258
-
2,755
-
(194)
(1,140)
-
(18,386)
(8,852)
Carrying amount at end of year
80,554
54,207
The majority of the property, plant and equipment is included in either the Guanaco cash-generating unit or the
Casposo cash-generating unit. Refer to note 14 for discussion on impairment. Property, plant and equipment that does
not form part of the Guanaco or Casposo cash generating units are being carried at the lower of their book value and
recoverable amount.
The Group leases production equipment under a number of finance leases. At 30 June 2017, the net carrying amount of
lease equipment was US$17,347k (2016: US$5,855k).
56
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
16.
EXPLORATION AND EVALUATION EXPENDITURES
Costs carried forward in respect of areas of interest:
Carrying amount at the beginning of the year
Additions for the year
Transfers to Mining Properties
Carrying amount at end of the year
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
12,247
8,202
(6,274)
14,175
649
58
11,540
12,247
The recovery of the carrying amount of the exploration and evaluation assets is dependent on the successful
development and commercial exploration or sale of the areas of interest. This balance mainly relates to expenditure
Guanaco, Casposo and Pingüino exploration projects.
Additions for the year relate mainly to the Argentex acquisition. Refer to Note 29 for further details.
17.
TRADE AND OTHER PAYABLES
CURRENT
Trade payables
Accrued expenses
Royalty Payable
Income tax payable
Other payables
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
10,088
2,187
1,738
292
2,628
5,890
2,812
-
1,159
3,053
Total current trade and other payables
16,933
12,914
NON CURRENT
Other payables
Refer to note 25 for detailed information on financial instruments.
18.
EMPLOYEE ENTITLEMENTS
CURRENT
Employee entitlements
MOVEMENT IN CURRENT PROVISIONS
Opening balance
Charged to the profit and loss
Closing balance
8
39
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
1,733
1,336
1,336
397
1,733
692
644
1,336
The current provision for employee entitlements includes all unconditional entitlements in accordance with the
applicable legislation. The entire amount is presented as current, since the Group does not have an unconditional right
to defer payment. The entire balance of employee benefits is expected to be settled within the next 12 months.
57
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
19.
PROVISIONS
NON CURRENT
Mine closure
MOVEMENT IN NON CURRENT PROVISIONS
Opening balance
Additions
Present Value Adjustment
Closing balance
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
10,195
5,697
5,697
4,458
40
10,195
1,842
3,855
-
5,697
The mine closure (restoration) provision relates to the estimated costs of dismantling and restoring mining sites and
exploration tenements to their original condition at the end of the life of the mine or exploration drilling program.
The provision at year end represents the present value of the Directors’ best estimate of the future sacrifice of
economic benefits that will be required for meeting environmental obligations for existing tenements after activities
have been completed. The provision is reviewed annually by the Directors.
Concurrent reclamation, along with mining operations, is ongoing throughout the facility and continues to be a vital
part of the Company’s reclamation practices. The plans are developed taking into consideration all legal, regulatory,
governmental, and community requirements and compromises. Thus, the plan incorporates a number of assumptions
used to estimate closure and post-closure objectives.
As at 30 June 2017, the total restoration provision amounts to US$6.4m for Guanaco mine. The present value of
the restoration provision was determined based on the following assumptions:
• Undiscounted rehabilitation costs: US$6.9m; and
• Remaining life of Mine: 8 years (Life of mine based on most recent financial model used for impairment testing).
As at 30 June 2017, the total restoration provision amounts US$3.8m for the Casposo mine. The present value of
the restoration provision was determined based on the following assumptions:
• Undiscounted rehabilitation costs: US$4.2m; and
• Remaining life of Mine: 5 years (Life of mine based on most recent financial model used for impairment testing).
20.
BORROWINGS
CURRENT
Lease liability
Credit facilities
Total current borrowings
NON-CURRENT
Lease liability
Credit facilities
Total non-current borrowings
58
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
5,825
5,055
10,880
8,149
3,500
11,649
1,879
-
1,879
2,071
-
2,071
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
20.1 Lease liabilities
The Group leases production equipment under a number of finance leases. Refer to note 15 for further
information.
20.2 Current Credit facilities
The current Credit facilities consists of the following facilities:
• a US$1.5m pre-export facility for Casposo mine operation with Banco San Juan (180 days) at an annual
•
interest rate of 4%;
a US$2m pre-export facility for Guanaco mine operation with Santander Bank, Chile (240 days) at an
annual interest rate of 4%; and
the current portion of a US$5m credit facility with the BAF Latam Credit Fund, amounting to
•
US$1.5m. See below for more details.
20.3 Non-Current Credit facilities
The non-current borrowings of US$3.5m is part of a US$5m credit facility with the BAF Latam Credit Fund, an
unrelated third party lender. The credit facility is secured by a guarantee from the Company and a corresponding
proportion of the receipts of doré sales from the Guanaco mine in Chile. Amounts drawn against the credit facility
are to be repaid within eighteen months.
21.
ISSUED CAPITAL
Fully paid ordinary shares (US$'000)
Number of ordinary shares at year end
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
99,050
93,537
518,983,178
478,761,995
Movements in ordinary share capital
Date
Number of ordinary shares
Balance at 30 June 2015
No movement for the year
Balance at 30 June 2016
Shares issues to purchase Argentex
22 Aug 16
Balance at 30 June 2017
478,761,995
478,761,995
40,221,183
518,983,178
US$'000
93,537
93,537
5,513
99,050
During the year, Austral Gold issued 40,221,183 new ordinary shares valued at US$5,513k as consideration for the
remaining 80.1% of Argentex Mining Corporation not already owned by the Group. Further explanations are given in
Note 29.
Ordinary shares participate in dividends and the proceeds on winding up of the Parent Entity in proportion to the
number of shares held. At shareholders meetings each ordinary share is entitled to one vote when a poll is called,
otherwise each shareholder has one vote on a show of hands. The ordinary shares do not have any par value.
59
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
22.
ACCUMULATED LOSSES
Retained earnings/ (Accumulated losses) at beginning of year
Net profit/(loss) for the year
Profits transferred to profit reserve
Acquisition of subsidiary with non-controlling interests
Share options expired
Transfer to retained earnings realised gain on shares sold during the year
Retained earnings/ (Accumulated losses) at end of year
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
235
(4,380)
(3,362)
(676)
13
(1,741)
(9,911)
(29,379)
25,130
-
980
-
3,504
235
On 4 March 2016 the Group entered into an agreement with Troy Resources Limited (`Troy’) to acquire a 51% interest
in their Casposo silver-gold project (`Casposo’) in Argentina as well as takeover the day-to-day operations of Casposo.
The initial accounting for this business combination transaction was provisional at 30 June 2016. As part of the
finalisation of the fair value measurement process of the assets and liabilities acquired, the Group has remeasured
the net assets acquired by an additional US$2 million. A further remeasurement of the options asset to acquire
an additional 19% interest resulted in a US$5.5 million option value. As a result, the gain on bargain purchase has
increased to US$27,335,188 for the year ended 30 June 2016, (Original 30 June 2016 : $20,809,923). This is offset by an
option reserve of US$5.5 million and an increase in net assets acquired by US$2 million.
Liabilities acquired in business combination1
Accumulated losses1
Gain on bargain purchase2
Option reserve3
Consolidated
30 June 2016
Remeasured
US$’000
30 June 2016
Previously Reported
US$’000
12,914
980
27,335
(5,505)
14,914
-
20,810
-
Impact
US$’000
(2,000)
980
6,525
(5,505)
1 Impact on Statement of Financial Position
2 Impact on Statement of Profit or Loss and Other Comprehensive Income and non cash items in the Statement of Cash Flows
3 Impact on Statement of Changes in Equity
23.
NON-CONTROLLING INTEREST
Non controlling interest in subsidiaries comprise:
Acquired as part of subsidiary
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
14,201
21,650
60
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
24.
RESERVES
FOREIGN CURRENCY TRANSLATION RESERVE
Balance at beginning of year
Foreign exchange movements from translation of financial statements to US dollars
Balance at end of year
SHARE OPTION RESERVE
Balance at beginning of year
Options expired
Option reserve for the 19% purchase option on Casposo
Step acquisition of subsidiary with non-controlling interest
Balance at end of year
PROFIT APPROPRIATION RESERVE
Balance at beginning of year
Profits transferred to profit reserve
Dividend paid
Balance at end of year
ASSET REVALUATION RESERVE
Balance at beginning of year
Fair value movement during the year
Transfer to retained earnings realised gain on shares sold during the period
Balance at end of year
Total Reserves
NATURE AND PURPOSE OF RESERVES
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
609
(249)
360
(5,492)
(13)
-
5,184
(321)
-
3,362
(3,362)
-
(2,565)
824
1,741
-
39
622
(13)
609
13
-
(5,505)
-
(5,492)
-
-
-
-
(7,814)
8,753
(3,504)
(2,565)
(7,448)
Foreign Currency Translation Reserve
Exchange differences arising on translation of the non-US$ denominated non-monetary balances of Group Companies
are recognised in the foreign currency translation reserve. The reserve is recognised in profit or loss when the net
investment is disposed of.
Share Option Reserve
Options granted / issued as share-based payments are recognised in the share option reserve. These options expired
during the year ended 30 June 2017.
Asset Revaluation Reserve
The reserve is used to recognise increments and decrements in the fair value of equity securities.
61
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
25.
FINANCIAL INSTRUMENTS
Financial risk management objectives
The Group’s principal financial instruments comprise borrowings, receivables, listed equity securities, cash and short-
term deposits. These activities expose the Group to a variety of financial risks: market risk (interest rate risk and foreign
currency risk), credit risk, price risk and liquidity risk.
The Group recognises the importance of risk management, and has adopted a Risk Management and Internal
Compliance and Control policy which describes the role and accountabilities of management and of the Board.
The Directors manage the different types of risks to which the Group is exposed by considering risk and monitoring
levels of exposure to the main financial risks by being aware of market forecasts for interest rates, foreign exchange
rates, commodity and market prices. The Group does not have significant exposure to credit risk and liquidity risk is
monitored through general business budgets and forecasts.
Interest Rate Risk
The Group’s main interest rate risk arises from finance leases. The Group’s borrowings are at fixed rates and therefore
do not carry any variable interest rate risk.
Foreign Currency Risk
The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk
through foreign currency exchange rate fluctuations.
Foreign exchange rate risk arises from future commercial transactions and recognised financial assets and financial
liabilities denominated in a currency that is not the functional currency of the Group. The risk is measured using cash
flow forecasting. Foreign currency risk is minimal as most of the transactions are settled in US$.
Price Risk
The Group’s revenues are exposed to fluctuations in the price of gold, silver and other prices. Gold and silver produced
is sold at prevailing market prices in US$.
The Group has resolved that for the present time the production should remain unhedged. The Group considers
exposure to commodity price fluctuations within reasonable boundaries to be an integral part of the business.
Historical Evolution in the gold and silver commodity prices (US$)
2000
1800
1600
1400
1200
1000
800
600
400
200
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Gold
Silver
60
50
40
30
20
10
0
Sensitivity to Changes in Commodity Prices (Gold and Silver)
The below sensitivity analysis demonstrates the after tax effect on the profit/(loss) and equity which could result if there were changes
in the gold and silver commodity prices by +/- 10% of the actual commodity prices realised by the Group in 2016 and 2017.
Effect on profit/(loss)
Effect on equity
2017
US$’000
4,270
(4,270)
2016
US$’000
3,692
(3,692)
2017
US$’000
4,270
(4,270)
2016
US$’000
3,692
(3,692)
10% increase in gold and silver price
10% decrease in gold and silver price
62
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
Financial Market Risk
The financial market risk is the risk that the fair value or future cash flows of the financial instruments will fluctuate
because of changes in market prices, which occurs due to the Group’s investment in listed securities where share
prices can fluctuate over time. This risk however is not deemed to be significant as these investments are held for long
term strategic purposes and therefore movement in the market prices do not impact the short-term profit or loss or
cash flows of the Group.
Credit Risk
The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net
of any allowance for doubtful debts, as disclosed in the statement of financial position and notes to the financial
statements.
The Group trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it the
Group’s policy to securitise its other receivables.
In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad
debts is not significant. There are no significant concentrations of credit risk.
Liquidity Risk
The liquidity of the Group is managed to ensure sufficient funds are available to meet financial commitments in a
timely and cost effective manner.
Management continuously reviews the Group’s liquidity position through cash flow projections based upon the
current life of mine plan to determine the forecast liquidity position and maintain appropriate liquidity levels.
Maturities of financial liabilities
The tables below analyse the Group’s financial liabilities into relevant maturity groupings based on the remaining
period at the reporting date to the contractual maturity date.
The amounts disclosed in the table are the contractual undiscounted cash flows.
YEAR ENDED 30 JUNE 2017
FINANCIAL LIABILITIES
Trade and other payables
Lease liabilities
Total 2017 liabilities
YEAR ENDED 30 JUNE 2016
FINANCIAL LIABILITIES
Trade and other payables
Lease liabilities
Total 2016 liabilities
Consolidated
< 6 months
US$'000
6-12 months
US$'000
1-5 years
US$'000
> 5 years
US$'000
Total
US$'000
16,933
4,123
21,056
-
2,220
2,220
12,790
1,198
13,988
124
645
769
8
8,546
8,554
39
2,304
2,343
-
-
-
-
-
-
16,941
14,889
31,830
12,953
4,147
17,100
63
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
26.
DIVIDENDS
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
Dividends paid during the financial year were as follows:
Interim dividend for the year ended 30 June 2017 or A$0.009 per ordinary share
3,362
-
On 31 December 2016 the Directors declared an interim dividend of A$0.009 (US$0.006) per ordinary share. The
dividend was paid on 1 February 2017. The total distribution amounted to A$4,670,849 (US$3,361,656) based on the
number of ordinary shares on issue as at 18 January 2017. No dividends were paid or proposed during the previous
year.
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
6,343
8,546
14,889
(915)
13,974
5,825
8,149
1,843
2,304
4,147
(197)
3,950
1,879
2,071
Country of
30 June 2017
30 June 2016
Incorporation
% owned
% owned
Australia
British Virgin Islands
Chile
Argentina
Chile
Canada
Canada
Argentina
100.000
99.998
99.970
51.000
100.000
100.000
70.000
100.000
99.998
99.960
51.000
n/a
n/a
51.000
27.
COMMITMENTS
LEASE COMMITMENTS – FINANCE
Committed at the reporting date and recognised as liabilities, payable:
Within one year
One to five years
Total commitment
Less: Future finance charges
Net commitment recognised as liabilities
Representing:
Lease liability – current
Lease liability – non-current
28.
SUBSIDIARIES
PARENT ENTITY
Austral Gold Limited
SUBSIDIARIES
Guanaco Mining Company Limited
Guanaco Compañia Minera SpA
Austral Gold Argentina S.A.
Ingenieria y Mineria Cachinalito Limitada
Argentex Mining Corporation*
SCRN*
Casposo Project**
* Entity became a subsidiary during the year
** Additional 19% purchase in the Casposo Project in March 2017
64
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
29.
ACQUISITION ARGENTEX (ASSET ACQUISITION)
On 19 August 2016 the plan of arrangement (‘the Arrangement’) between Austral Gold and Argentex Mining
Corporation (‘Argentex’) was finalised with the dual listing of Austral Gold on the TSX Venture Exchange under
code AGLD. Under the terms of the Arrangement, Argentex shareholders received approximately 0.564676 of an
ordinary share of Austral for each Argentex common share held at that date. Austral Gold issued a total of 40,221,183
shares to Argentex shareholders and Argentex became a wholly-owned subsidiary of Austral.
At the time of acquisition, Argentex’s main asset was the Pingüino project with indicated and inferred resources but
no probable and proven resources. The Pingüino project was not in production and there was no mine plan to place it
into production. For these reasons, among others, the acquisition was accounted for as an acquisition of assets and
liabilities and not a business combination as defined under AASB3.
29.1 Consideration transferred
The fair value of the ordinary shares issued was based on the listed share price of the Company at the date of
issue on 22 August 2016, AUD$0.19 (US$0.137) per share, which valued the share consideration transferred at
US$5.5m. In addition, a previously owned 19.9% interest was treated as consideration at fair value of
US$1.37m at the date of acquisition.
29.2 Assets acquired and liabilities assumed
The following table summarises the recognised amounts of assets acquired and liabilities assumed at the date of
acquisition.
Cash & cash equivalent
Other current receivables
Property, plant and equipment
Exploration areas (Pingüino Project)
Accounts payable
Related party liabilities
Other non-current liabilities
Total identifiable net assets acquired
2017
US$'000
26
28
229
7,194
(98)
(482)
(13)
6,884
The Group incurred acquisition related costs of US$215,000 on legal fees and due diligence costs. These costs were
capitalised against the value of the net assets acquired.
65
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
30.
PARENT ENTITY INFORMATION
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Issued capital
Accumulated losses
Reserves
Total shareholders’ equity
Gain/(Loss) of the parent entity
Total comprehensive income/(loss) of the parent entity
Details of any guarantees entered into by the parent entity in relation to the debts of its
subsidiaries
Details of any contingent liabilities of the parent entity
Details of any contractual commitments by the parent entity for the acquisition of property,
plant or equipment.
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
71
66,964
12,066
12,066
54,898
99,050
(40,495)
(3,657)
54,898
3,328
3,328
A*
None
None
57
63,243
13,575
13,575
49,668
93,537
(43,824)
(45)
49,668
(704)
(704)
None
None
None
A* Austral Gold is guarantor for the credit facility of US$5m between BAF and Austral Gold subsidiary, Guanaco Compania Minera SpA.
31.
SUBSEQUENT EVENTS
On 13 July 2017 Austral Gold executed a binding letter to acquire the San Guillermo and Reprado projects from Revelo
Resources Corporation (‘Revelo’, TSX-V: RVL) for consideration of up to ten million Austral Gold ordinary shares
(capped at US$0.21/share) and subject to existing Net Smelter Royalties (‘NSR’) and an additional NSR of up to 1%.
The offer is subject to due diligence, entering into a definitive agreement and customary regulatory and exchange
approvals.
32.
RELATED PARTY TRANSACTIONS
32.1 KMP holdings of shares and share options
• Mr Eduardo Elsztain holds 450,741,567 shares indirectly in Austral Gold Limited.
• Mr Saul Zang holds 1,435,668 shares indirectly in Austral Gold Limited.
• Mr Pablo Vergara del Carril holds 68,119 shares directly in Austral Gold Limited.
• E Elsztain and S Zang are Directors of IFISA which holds 421,538,417 shares according to the last substantial
holder notice lodged in January 2017.
• P Vergara del Carril, E Elsztain and S Zang are Directors of Guanaco Capital Holding Corp which holds
31,386,890 shares according to the last substantial holder notice lodged in January 2017.
• Mr Stabro Kasaneva holds 1,691,398, shares indirectly in Austral Gold Limited.
• Mr Wayne Hubert holds 1,750,000 shares indirectly in Austral Gold Limited.
• Michael Brown holds 34,716 shares directly in Austral Gold Limited.
66
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
NOTES TO THE FINANCIAL STATEMENTS
32.2 Directors and Key Management Personnel Remuneration
The aggregate compensation made to Directors and other members of Key Management Personnel of the Group
is set out below:
Short-term employment benefits
Post-employment benefits
Total
Consolidated
30 June 2017
US$’000
30 June 2016
US$’000
1,765
5
1,770
735
5
740
Other transactions with related parties
Zang, Bergel & Viñes Abogados is a related party since two Directors, Saul Zang and Pablo Vergara del Carril have
significant influence over this law firm based in Buenos Aires, Argentina. Legal fees charged to the Company for
the year ended 30 June 2017 amounted to US$129,532 (2016: US$89,888).
32.3 Lending to majority shareholder
In May 2015, a short-term loan for US$3m was made to Inversiones Financieras del Sur SA, a related party, on
better than arm’s length terms. The loan balance outstanding of US$2,720,364 (Including accrued interest) was
fully repaid on 1 February 2017.
32.4 Ultimate parent entity
The Parent Entity is controlled by IFISA with a 81.62% interest in Austral Gold Limited and is incorporated in
Uruguay.
The ultimate beneficial owner of IFISA is Eduardo Elsztain.
33.
UNRECOGNISED DEFERRED TAX ASSETS
In certain entities of the Group, tax losses have not been recognised as deferred tax assets in respect of the following
items, because it is not probable that future taxable profit will be available against which the Group can use the
benefits therefrom.
Australia
Tax losses
Capital losses
Argentina
Capital losses
Canada
Tax losses
US$ ‘000
19,724
4,707
1,565
17,778
Expiry
No Expiry
No Expiry
2018
2017-2037
67
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
DIRECTORS’
DECLARATION
68
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 In the Directors’ opinion:
1 .
the attached consolidated financial statements and notes thereto comply with the Corporations Act 2001, the
Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements;
2 .
the attached consolidated financial statements and notes thereto comply with International Financial
Reporting Standards as issued by the International Accounting Standards Board as described in note 1 to the
consolidated financial statements;
3 .
the attached consolidated financial statements and notes thereto give a true and fair view of the Group’s
financial position as at 30 June 2017 and of its performance for the financial year ended on that date; and
4 .
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in
accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
Signed on behalf of the Directors by:
Robert Trzebski
Director
Sydney
29 September 2017
69
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 KPMG
INDEPENDENT
AUDIT REPORT
70
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 Independent Auditor’s Report
To the shareholders of Austral Gold Limited
Report on the audit of the Financial Report
Opinion
We have audited the Financial Report of
Austral Gold Limited (the Company).
In our opinion, the accompanying Financial
Report of the Company is in accordance
with the Corporations Act 2001, including:
•
•
giving a true and fair view of the
Groups financial position as at 30
June 2017 and of its financial
performance for the year ended on
that date; and
complying with Australian Accounting
Standards and the Corporations
Regulations 2001.
The Financial Report comprises:
• Consolidated statement of financial position as at 30
June 2017
• Consolidated statement of profit or loss and other
comprehensive income, Consolidated statement of
changes in equity, and Consolidated statement of
cash flows for the year then ended
• Notes including a summary of significant accounting
policies
• Directors’ Declaration.
The Group consists of the Company and the entities it
controlled at the year-end or from time to time during
the financial year.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 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 fulfilled our other ethical responsibilities in accordance with the Code.
KPMG, an Australian partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under
Professional Standards Legislation.
71
71
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
Key Audit Matters
The Key Audit Matters we identified are:
• Carrying value of mine assets and
plant & equipment
• Carrying value of exploration and
evaluation assets
• Argentex acquisition accounting
• Consolidation accounting
Key Audit Matters are those matters that, in our
professional judgement, were of most significance in
our audit of the Financial Report of the current period.
These matters were addressed in the context of our
audit of the Financial Report as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.
Carrying value of mine assets and plant & equipment ($96.5m)
Refer to Note 14 and 15 to the Financial Report
The key audit matter
How the matter was addressed in our audit
The Group’s mine assets and plant &
equipment were a significant portion (62%) of
the Group’s total assets, and their carrying
value was a key audit matter due to the high
level of judgement required by us to assess the
carrying value.
The key judgements involved in the carrying
value assessment are forward looking
assumptions, as used in the Group’s value in
use models. The key assumptions are forecast
production, gold and silver prices, discount
rates and reserve estimates. The Group
obtained a reserve report from a third party
expert to assist in their carrying value
assessment.
Our audit procedures included:
• We obtained the Group’s value in use models,
and:
•
•
•
In order to identify areas of increased
audit focus, we performed sensitivity
analysis on key assumptions in the value
in use models such as production
forecasts, gold and silver prices, discount
rates and reserve estimates. We also
compared historical production results
with the historical production forecast.
Compared the total forecast production
assumptions to board approved future
production forecasts and to the Group’s
third party expert report
Corroborated forecast production
assumptions and mine closure plans with
the key operational and finance personnel
• We assessed the competence, capability and
objectivity of the Group’s third party experts.
• We compared the forecast gold and silver price
assumptions against published forecast price
expectations of industry commentators and
investigated inconsistencies.
72
72
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
Carrying value of exploration and evaluation assets ($14.2m)
Refer to Note 16 to the Financial Report
The key audit matter
How the matter was addressed in our audit
The carrying value of exploration and evaluation
assets (E&E assets) is a key audit matter due
to:
•
•
the significance of the Group’s E&E asset
balance (being 9% of total assets); and
the greater level of audit effort to evaluate
the Group’s application of the requirements
of the industry specific accounting standard
AASB 6 Exploration for and Evaluation of
Mineral Resources, in particular the
conditions allowing capitalisation of relevant
expenditure and presence of impairment
indicators. The presence of impairment
indicators would necessitate a detailed
analysis by the Group of the value of E&E.
Therefore, given the criticality of this to the
scope and depth of our work, we involved
senior team members to challenge the
Group’s determination that no such
indicators existed.
In assessing the conditions allowing
capitalisation of relevant expenditure, we
focused on:
•
•
•
the determination of the areas of interest
(areas) in particular evaluating the results of
the external expert engaged by the Group;
documentation available regarding rights to
tenure, via licensing, and compliance with
relevant conditions, to maintain current
rights to an area of interest. Additional
complexity arose from the rights held in
Chile and Argentina and the Group’s
intention to continue the relevant E&E
activities;
the Group’s determination of whether the
E&E are expected to be recouped through
successful development and exploitation of
the area of interest, or alternatively, by its
sale.
In assessing the presence of impairment
indicators, we focused on those factors that
may draw into question the commercial
continuation of E&E activities for the areas of
Our audit procedures included:
•
Evaluating the Group’s accounting policy to
recognise exploration and evaluation assets
using the criteria in the accounting standard;
• We assessed the results of the external expert
and the Group’s determination of its areas of
interest for consistency with the definition in
the accounting standard;
•
For each area of interest, we assessed the
Group’s current rights to tenure by
corroborating the ownership of the relevant
license to government registries and
evaluating agreements in place with other
parties. We also tested for compliance with
conditions, such as minimum expenditure
requirements, on a sample of licenses;
• We tested the Group’s additions to E&E for
the year by evaluating a sample of recorded
expenditure for consistency to underlying
records, the capitalisation requirements of the
Group’s accounting policy and the
requirements of the accounting standard;
• We evaluated Group documents, such as
minutes of directors meetings and ASX market
announcements, for consistency with their
stated intentions for continuing E&E in certain
areas. We corroborated this through
interviews with key operational and finance
personnel;
• We analysed the Group’s determination of
recoupment through successful development
and exploitation of the area (or by its sale) by
evaluating the Group’s documentation of
planned future/continuing activities including
work programmes and project and corporate
budgets for a sample of areas;
• We assessed the impact of the changes in the
gold and silver prices to the Group’s modelling
underlying their decision for commercial
continuation of activities;
• We obtained project and corporate budgets
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
73
73
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
identifying areas with existing funding and
those requiring alternate funding sources. We
compared this for consistency with areas with
E&E, for evidence of the ability to fund
continued activities. We identified those areas
relying on alternate funding sources and
evaluated the capacity of the Group to secure
such funding.
• We compared the results from the external
third party expert engaged by the Group
regarding the existence of reserves and
resources for consistency to the treatment of
E&E and the requirements of the accounting
standard.
interest where significant capitalised E&E
exists.
In addition to the assessments above and given
the changes in the gold and silver prices, we
paid particular attention to:
•
•
The impact of changes in gold and silver
prices to the Group’s strategy and
intentions
The intention of the Group to fund the
continuation of activities
• Results from latest activities regarding the
existence or otherwise of economically
recoverable reserves/commercially viable
quantity of the reserves. The Group
engaged an external third party expert to
assist with these assessments.
Argentex acquisition accounting
Refer to Note 29 to the Financial Report
The key audit matter
How the matter was addressed in our audit
The Argentex acquisition accounting was a key
audit matter given the complexity in applying
the accounting standard requirements to the
specific terms and conditions of the acquisition,
and the potential significant magnitude of an
incorrect share price for measuring the fair
value of the existing interest in Argentex
previously equity accounted for.
We assessed whether the acquisition was a
business combination or asset acquisition.
These have differing accounting outcomes,
therefore the assessment is critical to our audit.
The specific conditions giving rise to the issue
and a focus of our procedures included reviewin
evidence of the presence or not of inputs,
processes and outputs at Argentex against
criteria in the business combinations accounting
standard, which would result in accounting as a
business combination.
We involved accounting specialists in these
considerations.
Our audit procedures included:
• Assessment of the Group’s determination of
the Argentex acquisition characteristics,
including the presence of the required inputs,
processes and outputs to constitute a
business, as per criteria in the accounting
standards. We evaluated the presence of
proven and probable resources purchased by
the Group.
• To assess the cost of acquisition recognised
by the Group:
•
•
We obtained from the TSX the closing
share price of Argentex prior to
acquisition by the Group and
recalculated the fair value of the
ownership interest held immediately
prior to the acquisition and compared
this to the amount recorded by the
Group.
We compared the Group’s share price
on date of acquisition to the amount
74
74
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
Additional audit effort was applied to assessing
the measurement of the acquisition. This
resulted from the complexity of also valuing the
previously equity accounted interest in
Argentex, on the basis of the fair value of the
interest immediately prior to the acquisition,
and the fair value of the Group’s shares issued
to Argentex shareholders under AASB 2 Share
Based Payments.
used to calculate the value of the
Group’s equity issued as consideration
under AASB 2 Share Based Payments in
order to determine the cost of
acquisition.
Consolidation accounting
The key audit matter
How the matter was addressed in our audit
The Group has operations in Argentina and
Chile, a corporate head office in Australia and
an entity registered in Canada. There are also
minority interests held in certain subsidiaries of
the Group, with other subsidiaries in a cross
ownership structure that are 100% owned on
consolidation.
As a result, the consolidation accounting
process is a key audit matter due to the
complexity of the manual consolidation process
and its susceptibility to error and the impacts of
the incorrect consolidation methodology are
significant.
Our audit procedures included:
• We held discussions with management, read
the minutes of directors meetings and ASX
announcements, and used this knowledge to
assess the consolidation journals are
appropriate given the facts and circumstances
of transactions entered into by the Group;
• Obtaining the Group’s manual consolidation
spreadsheet and testing:
•
•
•
•
•
the individual financial information for
entities included in the consolidation for
consistency with the reporting we
received from component auditors;
elimination of intercompany balances and
transactions;
elimination of investment ownership
percentages held at component level and
replacement with the Group ownership
percentages and Group accounting
treatment;
sources for each journal and relevance for
inclusion in the consolidation; and
recognition of minority interests journals
and compared these with the minority
interests held in the Group.
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
75
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
Other Information
Other Information is financial and non-financial information in Austral Gold Limited’s annual reporting
which is provided in addition to the Financial Report and the Auditor's Report. The Directors are
responsible for the Other Information.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not
express an audit opinion or any form of assurance conclusion thereon, with the exception of the
Remuneration Report.
In connection with our audit of the Financial Report, our responsibility is to read the Other
Information. In doing so, we 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.
We are required to report if we conclude that there is a material misstatement of this Other
Information, and based on the work we have performed on the Other Information that we obtained
prior to the date of this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
• preparing the Financial Report that gives a true and fair view in accordance with Australian
Accounting Standards and the Corporations Act 2001
•
•
implementing necessary internal control to enable the preparation of a Financial Report that gives
a true and fair view and is free from material misstatement, whether due to fraud or error
assessing the Group’s ability to continue as a going concern. This includes disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting
unless they 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 objective is:
•
•
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 Australian Auditing Standards will always detect a material misstatement when it
exists.
Misstatements can arise from fraud or error. They 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.
A further description of our responsibilities for the audit of the Financial Report is located at the
Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_files/ar2.pdf.
This description forms part of our Auditor’s Report.
76
76
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
Report on the Remuneration Report
Opinion
Directors’ responsibilities
In our opinion, the Remuneration Report
of Austral Gold Limited for the year ended
30 June 2017, complies with Section
300A of the Corporations Act 2001.
The Directors of the Company are responsible for the
preparation and presentation of the Remuneration
Report in accordance with Section 300A of the
Corporations Act 2001.
Our responsibilities
We have audited the Remuneration Report included in
pages 29 to 32 of the Directors’ report for the year
ended 30 June 2017.
Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
KPMG
Daniel Camilleri
Partner
Sydney
29 September 2017
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
77
77
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 ADDITIONAL INFORMATION
CORPORATE GOVERNANCE STATEMENT
Austral Gold Limited and its subsidiaries have adopted the corporate governance framework and practices set out in its
Corporate Governance Statement. The Corporate Governance Statement is available on the Company’s website at
www.australgold.com.
STATEMENT OF ISSUED CAPITAL
As at 31 August 2017 the total issued capital of Austral Gold Limited was 518,983,178 ordinary shares. 486,196,947 shares
were quoted on the Australian Securities Exchange under the code AGD. The only shares of the Company on issue are fully
paid ordinary shares. None of these shares are restricted securities or securities subject to voluntary escrow within the meaning
of the Listing Rules of the Australian Securities Exchange. 32,786,231 shares were quoted on the TSX Venture Exchange under
the code AGLD.
There are no restrictions on the voting rights attached to the fully paid ordinary shares. On a show of hands, every member
present in person, by proxy, by attorney or by representative shall have one vote. On a poll, every member present in person,
by proxy, by attorney or by representative shall have one vote for every share held.
DISTRIBUTION OF FULLY PAID ORDINARY SHARES
As at 31 August 2017
Size of Holding
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
>100,000
Holders
Shares Held
% of issued capital
607
273
96
90
32
237,584
745,547
798,275
3,180,110
514,021,662
1,098
518,983,178
0.05%
0.14%
0.15%
0.61%
99.04%
100%
The number of members holding less than a marketable parcel of 2,942 ordinary shares (based on a market price of AUD $0.17
on 31 August 2017) is 765. They hold a total of 534,645 ordinary shares.
SUBSTANTIAL SHAREHOLDERS
The Company has been notified of the following substantial shareholdings as at 31 August 2017:
Registered Holder
Citicorp Nominees
Beneficial Holder
Inversiones Financieras Del Sur SA (IFISA)
HSBC Custody Nominees
Inversiones Financieras Del Sur S.A. (IFISA)
HSBC Custody Nominees
Citicorp Nominees
Guanaco Capital Holding Corp
Eduardo Sergio Elsztain
Shares Held
413,665,357
775,500
31,386,890
4,913,820
450,741,567
78
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017
TOP TWENTY SHAREHOLDERS AS AT 31 AUGUST 2017
Rank
Name
No. of shares
% of issued capital
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
CITICORP NOMINEES PTY LIMITED
CANADIAN REGISTER CONTROL
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
FORSYTH BARR CUSTODIANS LTD
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
ASOCIACION ISRAELITA ARGENTINA TZEIRE AGUDATH JABAD
MR HAROLD JOSEPH FREIMAN
BNP PARIBAS NOMINEES PTY LTD
BNP PARIBAS NOMS PTY LTD
MR ZHEN DUO GUO
MR RODNEY DAVID JACKSON
JP MORGAN TRUST COMPANY LTD
LIMOL TRADING CORP
MR RUDOLF ALBERT SCHULZ
BIRCHALL PROJECTS LTD
MR MARCUS EINFELD
GREENFORD INVESTMENTS LIMITED
Total
Other
Total shares on issue
433,809,541
30,572,082
27,164,863
6,630,212
2,682,810
2,211,726
2,006,603
1,741,466
1,158,265
770,416
736,717
663,524
389,268
300,000
297,445
297,445
251,796
230,000
200,000
200,000
83.59%
5.89%
5.23%
1.28%
0.52%
0.43%
0.39%
0.34%
0.22%
0.15%
0.14%
0.13%
0.08%
0.06%
0.06%
0.06%
0.05%
0.03%
0.03%
0.03%
512,314,179
6,668,999
518,983,178
98.71%
1.29%
100.00%
Forward Looking Statements
Statements in this annual report that are not historical facts are forward-looking statements. Forward-looking statements are statements that are not historical, and
consist primarily of projections - statements regarding future plans, expectations and developments. Words such as “expects”, “intends”, “plans”, “may”, “could”,
“potential”, “should”, “anticipates”, “likely”, “believes” and words of similar import tend to identify forward-looking statements. All forward-looking statements are
subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied,
including, without limitation, business integration risks; uncertainty of production, development plans and cost estimates, commodity price fluctuations; political or
economic instability and regulatory changes; currency fluctuations, the state of the capital markets, uncertainty in the measurement of mineral reserves and resource
estimates, Austral’s ability to attract and retain qualified personnel and management, potential labour unrest, reclamation and closure requirements for mineral
properties; unpredictable risks and hazards related to the development and operation of a mine or mineral property that are beyond the Company’s control, the
availability of capital to fund all of the Company’s projects and other risks and uncertainties identified under the heading “Risk Factors” in the Company’s continuous
disclosure documents filed on SEDAR. You are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Austral
cannot assure you that actual events, performance or results will be consistent with these forward-looking statements, and management’s assumptions may prove to
be incorrect. Austral’s forward-looking statements reflect current expectations regarding future events and operating performance and speak only as of the date
hereof and Austral does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions should
change other than as required by applicable law. For the reasons set forth above, you should not place undue reliance on forward-looking statements.
79
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 MINING TENEMENTS
Tenement
Number
Tenement
name
Locality
Group
ownership
Tenement
Number
Tenement
name
Locality
Group
ownership
405.334/CID/05
Tranquilo 1
Pinguino/Santa Cruz
100%
420.152/AG/12
Juangui VI
Santa Cruz
405.335/CID/05
Tranquilo 2
Pinguino/Santa Cruz
100%
426.619/AG/11
Juangui II
Santa Cruz
405.336/CID/05
Cañadon
Pinguino/Santa Cruz
100%
424.416/AG/10
Juangui IV
Santa Cruz
414.409/CID/00
Pingüino
Pinguino/Santa Cruz
100%
429.333/AG/11
Juangui IV-A
Santa Cruz
423.542/SCRN/15
Plata Leon
Pinguino/Santa Cruz
100%
426.127/AG/13
Juangui IV-C
Santa Cruz
400.720/SCRN/07
Alto Condor
Other Santa Cruz
100%
426.126/AG/13
Juangui IV-D
Santa Cruz
414.085/CID/00
Condor
Manifestacion
de
Descubrimiento
Other Santa Cruz
100%
423.390/AG/13
Juangui IV-B
Santa Cruz
428.949/AGA/14
Juangui IV-E-1
Santa Cruz
407.929/CID/03
Diamante 1
Other Santa Cruz
100%
428.953/AGA/14
Juangui IV-E-2
Santa Cruz
407.928/CID/03
Diamante 2
Other Santa Cruz
100%
428.948/AGA/14
Juangui IV-E-3
Santa Cruz
424.987/SCRN/10
Contreras Oeste
Other Santa Cruz
100%
424.417/AG/10
Juangui V
Santa Cruz
424.988/SCRN/10
Contreras Este
Other Santa Cruz
100%
428.952/AGA/14
Juangui IV-E-4
Santa Cruz
407.934/CID/03
Nuevo Oro 2
Other Santa Cruz
100%
428.951/AGA/14
Juangui IV-E-5
Santa Cruz
28036M2003
Menucos 6
Rio Negro
100%
427.811/AG/13
Juangui IV-F
Santa Cruz
28037M2003
Menucos 7
Rio Negro
100%
429.335/AG/11
Juangui V-A
Santa Cruz
28038M2003
Menucos 8
Rio Negro
100%
422.958/AGA/12
Juangui V-B
Santa Cruz
28039M2003
Menucos 9
Rio Negro
100%
427.818/AGA/13
Juangui VI-D
Santa Cruz
28040M2003
Menucos 10
Rio Negro
100%
426.544/AG/13
Juangui VI-A
Santa Cruz
28041M2003
Menucos 11
Rio Negro
100%
427.815/AGA/13
Juangui VII-B
Santa Cruz
28042M2003
Menucos 12
Rio Negro
100%
426.545/AG/13
Juangui VII-A
Santa Cruz
28043M2003
Menucos 13
Rio Negro
100%
426.787/AG/13
Juangui VIII-A
Santa Cruz
428.950/AGA/14
8 de Julio IX
Santa Cruz
100%
431.875/AG/15
Barroso Chico I
Santa Cruz
406.843/GCHA/08
8 de Julio X
Santa Cruz
100%
431.874/AGA/15
Barroso Chico II
Santa Cruz
424.414/AG/10
Juangui I
Santa Cruz
420.324/AG/12
Juangui I-A
Santa Cruz
427.819/AGA/13
Juangui I-B
Santa Cruz
424.415/AG/10
Juangui III
Santa Cruz
420.150/AG/12
Juangui II-A
Santa Cruz
425.573/AG/13
Juangui II-B
Santa Cruz
425.571/AG/13
Juangui II-C
Santa Cruz
427.820/AGA/13
Juangui II-D
Santa Cruz
427.826/AGA/13
Juangui VI-C
Santa Cruz
100%
100%
100%
100%
100%
100%
100%
100%
100%
435.059/AGA/16
Cerro Contreras
Norte
Santa Cruz
5200438-M-1998
KAMILA
San Juan
4141348-I-2005
JULIETA
San Juan
11240189-I-2007
ALICIA I
San Juan
11240190-I-2007
MARÍA JOSÉ
San Juan
11240191-I-2007
Vallecito
San Juan
1124 59-T-2011
MARÍA PAZ
San Juan
1124 62-T-2011
Carolina
San Juan
1124 64-T-2011
MARÍA Luz
San Juan
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
70%
70%
70%
70%
70%
70%
70%
70%
80
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 MINING TENEMENTS
Tenement
Number
Tenement
name
Locality
Group
ownership
Tenement
Number
Tenement
name
Locality
Group
ownership
1124225-T-2013
PALOMA
San Juan
1124226-T-2013
JULIA
San Juan
1124220-T-2014
ALINA
San Juan
425315-C-2002
Sin nombre
San Juan
425120-C-2003
Sin nombre
San Juan
414299-I-2004
Sin nombre
San Juan
414375-I-2004
Sin nombre
San Juan
414501-I-2004
Sin nombre
San Juan
414504-I-2004
Sin nombre
San Juan
414717-I-2004
Sin nombre
San Juan
1124350-I-2007
Rosalía
San Juan
70%
70%
70%
70%
70%
70%
70%
70%
70%
70%
70%
02205-0016-0
Salvadora
TALTAL , GUANACO
100%
02205-0017-9
San Benito
TALTAL , GUANACO
100%
02205-0018-7
Sapiola
TALTAL , GUANACO
100%
02205-0019-5
San Manuel
TALTAL , GUANACO
100%
02205-0020-9
San Antonio
TALTAL , GUANACO
100%
02205-0030-6
Zelmira
TALTAL , GUANACO
100%
02205-0037-3
Ventura
TALTAL , GUANACO
100%
02205-0038-1
Veintiuno de
Mayo
TALTAL , GUANACO
100%
02205-0039-K
Wolney
TALTAL , GUANACO
100%
02205-0063-2
Unión
TALTAL , GUANACO
100%
02205-0064-0
Universal
TALTAL , GUANACO
100%
02205-0481-6
Estrella de Venus
Uno al Dos
TALTAL , GUANACO
100%
02205-0066-7
Verónica
TALTAL , GUANACO
100%
02202-1101-0
Blanca Estela
TALTAL , GUANACO
100%
02205-0069-1
Valparaíso
TALTAL , GUANACO
100%
02205-0240-6
Quillota
TALTAL , GUANACO
100%
02205-0070-5
Victoria ó
Victorina
TALTAL , GUANACO
100%
02205-0314-3
Inés 1 al 3
TALTAL , GUANACO
100%
02205-0071-3
Vallenarina
TALTAL , GUANACO
100%
02202-1132-0
Alfa Uno al Mil
TALTAL , GUANACO
100%
02205-0075-6
Talca
TALTAL , GUANACO
100%
02202-1134-7
Cristina 1 al 397
TALTAL , GUANACO
100%
02205-0080-2
Tropezón
TALTAL , GUANACO
100%
02202-1135-5
Dumbo 1 al 4
TALTAL , GUANACO
100%
02205-0081-0
Trinchera
TALTAL , GUANACO
100%
02202-1136-3
Florita 1 al 766
TALTAL , GUANACO
100%
02205-0082-9
Tulipan Negro
TALTAL , GUANACO
100%
02202-1138-K
Guanaco 1 al 168
TALTAL , GUANACO
100%
02205-0083-7
Teresa
TALTAL , GUANACO
100%
02202-1139-8
Los Pepes 7
TALTAL , GUANACO
100%
02205-0084-5
Talita
TALTAL , GUANACO
100%
02202-1238-6
Los Pepes 14
TALTAL , GUANACO
100%
02205-0085-3
Toribio
TALTAL , GUANACO
100%
02202-1239-4
Los Pepes 1 al 2
TALTAL , GUANACO
100%
02205-0090-K
Todos Santos
TALTAL , GUANACO
100%
02202-1240-8
02202-1241-6
Los Pepes 11
al 13
Los Pepes 18
al 19
TALTAL , GUANACO
100%
02205-0117-5
San Roberto
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
02205-0141-8
Santo Domingo
TALTAL , GUANACO
100%
02202-1242-4
Los Pepes 26
TALTAL , GUANACO
100%
02205-0142-6
Susana
TALTAL , GUANACO
100%
02202-1243-2
Los Pepes 3 al 5
TALTAL , GUANACO
100%
02205-0156-6
San Juan
TALTAL , GUANACO
100%
02205-0305-4
Inesperada 1 al 3
TALTAL , GUANACO
100%
02205-0162-0
San Andrés
TALTAL , GUANACO
100%
02202-1228-9
Resolución
TALTAL , GUANACO
100%
02205-0163-9
Sabina
TALTAL , GUANACO
100%
02205-0009-8
Santa Clara
TALTAL , GUANACO
100%
02205-0164-7
Sajonia
TALTAL , GUANACO
100%
02205-0010-1
Santa Rita
TALTAL , GUANACO
100%
02205-0176-0
Océano Pacífico
TALTAL , GUANACO
100%
02205-0012-8
Sol
TALTAL , GUANACO
100%
02205-0177-9
Oro Escapado
TALTAL , GUANACO
100%
81
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 MINING TENEMENTS
Tenement
Number
Tenement
name
Locality
Group
ownership
Tenement
Number
Tenement
name
Locality
Group
ownership
02205-0179-5
Oyama
TALTAL , GUANACO
100%
02205-0330-5
Juanita
TALTAL , GUANACO
100%
02205-0191-4
Panchita
TALTAL , GUANACO
100%
02205-0331-3
Juana Luisa
TALTAL , GUANACO
100%
02205-0194-9
Pique Wessel
TALTAL , GUANACO
100%
02205-0352-6
Lealtad
TALTAL , GUANACO
100%
02205-0195-7
Portales
TALTAL , GUANACO
100%
02205-0355-0
Lira
TALTAL , GUANACO
100%
02205-0196-5
Progreso
TALTAL , GUANACO
100%
02205-0356-9
Laguna
TALTAL , GUANACO
100%
02205-0198-1
Perseverancia
TALTAL , GUANACO
100%
02205-0360-7
Lucrecia
TALTAL , GUANACO
100%
02205-0201-5
Pensilvania Uno
al Dos
TALTAL , GUANACO
100%
02205-0364-K
Lilita
TALTAL , GUANACO
100%
02205-0216-3
Paraguaya
TALTAL , GUANACO
100%
02205-0368-2
Lucila
TALTAL , GUANACO
100%
02205-0242-2
Ricardo
TALTAL , GUANACO
100%
02205-0398-4
María Luisa
TALTAL , GUANACO
100%
02205-0243-0
Rosita
TALTAL , GUANACO
100%
02205-0401-8
Mister Meiggs
TALTAL , GUANACO
100%
02205-0244-9
Río Huasco
TALTAL , GUANACO
100%
02205-0402-6
Milagro
TALTAL , GUANACO
100%
02205-0250-3
Río Huasco
TALTAL , GUANACO
100%
02205-0403-4
Mapocho
TALTAL , GUANACO
100%
02205-0251-1
Rosario del Llano TALTAL , GUANACO
100%
02205-0252-K
Rosalbita
TALTAL , GUANACO
100%
02205-0405-0
02205-0407-7
Mercedes
Segunda
Manuel Antonio
Matta
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
02205-0256-2
Rita
TALTAL , GUANACO
100%
02205-0408-5
Mercedes
TALTAL , GUANACO
100%
02205-0257-0
02205-0259-7
02205-0260-0
Rosalbita
Segunda
Resguardo
Primera
Resguardo
Segunda
TALTAL , GUANACO
100%
02205-0410-7
María Teresa
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
02205-0413-1
Mercedes
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
02205-0415-8
María Lastenia
TALTAL , GUANACO
100%
02205-0274-0
Restauradora
TALTAL , GUANACO
100%
02205-0275-9
Rica
TALTAL , GUANACO
100%
02205-0296-1
Mauricio
TALTAL , GUANACO
100%
02205-0300-3
Altamira
TALTAL , GUANACO
100%
02205-0306-2
Isolina
TALTAL , GUANACO
100%
02205-0307-0
Imperial
TALTAL , GUANACO
100%
02205-0308-9
Isabel Antigua
TALTAL , GUANACO
100%
02205-0309-7
Ixora
TALTAL , GUANACO
100%
02205-0310-0
Istria
TALTAL , GUANACO
100%
02205-0311-9
Iliria
TALTAL , GUANACO
100%
02205-0323-2
Jenoveva
TALTAL , GUANACO
100%
02205-0324-0
Josefina
TALTAL , GUANACO
100%
02205-0325-9
Juana Maria
TALTAL , GUANACO
100%
02205-0329-1
J
TALTAL , GUANACO
100%
02205-0416-6
Mar Adriatico
TALTAL , GUANACO
100%
02205-0419-0
Mercedes
TALTAL , GUANACO
100%
02205-0447-6
Naciente
TALTAL , GUANACO
100%
02205-0449-2
Nebulosa
TALTAL , GUANACO
100%
02205-0526-K
Deslindante
TALTAL , GUANACO
100%
02205-0527-8
Domitila
TALTAL , GUANACO
100%
02205-0528-6
Don Eduardo
TALTAL , GUANACO
100%
02205-0529-4
Don Felipe
TALTAL , GUANACO
100%
02205-0531-6
Desdicha
TALTAL , GUANACO
100%
02205-0532-4
Dos Amigos
TALTAL , GUANACO
100%
02205-0533-2
Don Juan
TALTAL , GUANACO
100%
02205-0534-0
D
TALTAL , GUANACO
100%
02205-0535-9
Duilia
TALTAL , GUANACO
100%
02205-0536-7
Diamante
TALTAL , GUANACO
100%
82
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 MINING TENEMENTS
Tenement
Number
Tenement
name
Locality
Group
ownership
Tenement
Number
Tenement
name
Locality
Group
ownership
02205-0537-5
Dos Carmelos
TALTAL , GUANACO
100%
02205-0821-8
Amapola
TALTAL , GUANACO
100%
02205-0549-9
Defensa
TALTAL , GUANACO
100%
02205-0822-6
Amalia
TALTAL , GUANACO
100%
02205-0580-4
Escapada
TALTAL , GUANACO
100%
02205-0824-2
Amparo
TALTAL , GUANACO
100%
02205-0581-2
Esperanza
TALTAL , GUANACO
100%
02205-0825-0
Andacollo
TALTAL , GUANACO
100%
02205-0583-9
Emma Luisa
TALTAL , GUANACO
100%
02205-0826-9
Aurora
TALTAL , GUANACO
100%
02205-0584-7
E
TALTAL , GUANACO
100%
02205-0827-7
A
TALTAL , GUANACO
100%
02205-0585-5
Emma
TALTAL , GUANACO
100%
02205-0828-5
Alemania
TALTAL , GUANACO
100%
02205-0586-3
Elba
TALTAL , GUANACO
100%
02205-0829-3
Asturiana
TALTAL , GUANACO
100%
02205-0587-1
Estefanía
TALTAL , GUANACO
100%
02205-0830-7
Amistad
TALTAL , GUANACO
100%
02205-0588-K
Elquina
TALTAL , GUANACO
100%
02205-0831-5
Arco Iris
TALTAL , GUANACO
100%
02205-0619-3
Fortunata
TALTAL , GUANACO
100%
02205-0832-3
Angela
TALTAL , GUANACO
100%
02205-0620-7
F
TALTAL , GUANACO
100%
02205-0851-K
Augusto
TALTAL , GUANACO
100%
02205-0621-5
Fortuna
TALTAL , GUANACO
100%
02205-0892-7
Brillante
TALTAL , GUANACO
100%
02205-0622-3
Filomena
TALTAL , GUANACO
100%
02205-0894-3
Bio Bio
TALTAL , GUANACO
100%
02205-0623-1
Fraternidad
TALTAL , GUANACO
100%
02205-0896-K
Buenos
Muchachos
TALTAL , GUANACO
100%
02205-0624-K
Fresia
TALTAL , GUANACO
100%
02205-0897-8
Brilladora
TALTAL , GUANACO
100%
02205-0627-4
Fedra
TALTAL , GUANACO
100%
02205-0904-4
B
TALTAL , GUANACO
100%
02205-0628-2
Fides
TALTAL , GUANACO
100%
02205-0906-0
Bruna María
TALTAL , GUANACO
100%
02205-0645-2
Guanajuatos
TALTAL , GUANACO
100%
02205-0934-6
Cupido
TALTAL , GUANACO
100%
02205-0646-0
G
TALTAL , GUANACO
100%
02205-0936-2
Carolina
TALTAL , GUANACO
100%
02205-0647-9
Guillermo
TALTAL , GUANACO
100%
02205-0938-9
Convención
TALTAL , GUANACO
100%
02205-0649-5
Guicelda
TALTAL , GUANACO
100%
02205-0940-0
Cachapoal
TALTAL , GUANACO
100%
02205-0650-9
Graciela
TALTAL , GUANACO
100%
02205-0941-9
Crisomega
TALTAL , GUANACO
100%
02205-0667-3
Huascar
TALTAL , GUANACO
100%
02205-0942-7
California
TALTAL , GUANACO
100%
02205-0671-1
H
TALTAL , GUANACO
100%
02205-0943-5
Copiapina
TALTAL , GUANACO
100%
02205-0672-K
Herminia
TALTAL , GUANACO
100%
02205-0944-3
C
TALTAL , GUANACO
100%
02205-0674-6
Horacio
TALTAL , GUANACO
100%
02205-0945-1
Ciclón
TALTAL , GUANACO
100%
02205-0815-3
Aconcagua
TALTAL , GUANACO
100%
02205-0946-K
Cuncuna
TALTAL , GUANACO
100%
02205-0816-1
Angela
TALTAL , GUANACO
100%
02205-0947-8
Carolina
TALTAL , GUANACO
100%
02205-0818-8
Araucana
TALTAL , GUANACO
100%
02205-0950-8
Catalina
TALTAL , GUANACO
100%
02205-0819-6
Argentina
TALTAL , GUANACO
100%
02205-0951-6
Chacabuco
TALTAL , GUANACO
100%
02205-0820-K
Auristela
TALTAL , GUANACO
100%
02205-0954-0
Chinchosa
TALTAL , GUANACO
100%
83
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 MINING TENEMENTS
Tenement
Number
Tenement
name
Locality
Group
ownership
Tenement
Number
02205-0956-7
Complemento
TALTAL , GUANACO
100%
02202-6633-8
Tenement
name
Las Pailas XVI,
1 al 30
Locality
Group
ownership
TALTAL , GUANACO
100%
02205-1023-9
María Estela
TALTAL , GUANACO
100%
02205-0400-K
María Luisa
TALTAL , GUANACO
100%
02205-0955-9
Chile
TALTAL , GUANACO
100%
02205-0953-2
Chilena
TALTAL , GUANACO
100%
02202-3035-K
Paila Dos, 1 al 29
TALTAL , GUANACO
100%
02202-2480-5
Boa A
TALTAL , GUANACO
100%
02201-1327-2
Yolita 1 al 7
TALTAL , GUANACO
100%
02202-2481-3
Boa B
TALTAL , GUANACO
100%
02205-0029-2
Zunilda
TALTAL , GUANACO
100%
02202-2482-1
Boa C
TALTAL , GUANACO
100%
02205-0582-0
Elvira
TALTAL , GUANACO
100%
02202-2483-K
Boa D
TALTAL , GUANACO
100%
02205-0893-5
Barcelona
TALTAL , GUANACO
100%
02202-2484-8
Boa E
TALTAL , GUANACO
100%
02205-0590-1
Esperanza
Tercera
TALTAL , GUANACO
100%
02202-2485-6
Boa F
TALTAL , GUANACO
100%
02202-4588-8
Pancha 1 al 2
TALTAL , GUANACO
100%
02202-2486-4
Boa G
TALTAL , GUANACO
100%
02202-4696-8
Boa - K 1, 1 al 25
TALTAL , GUANACO
100%
02202-2487-2
Boa H
TALTAL , GUANACO
100%
02202-4697-3
Cata 5 - 1, 1 al 25
TALTAL , GUANACO
100%
02202-2489-9
Boa J
TALTAL , GUANACO
100%
02202-4698-1
G - 23 1, 1 al 25
TALTAL , GUANACO
100%
02202-2490-2
Boa K
TALTAL , GUANACO
100%
02202-4699-K
G - 101 1, 1 al 25
TALTAL , GUANACO
100%
02202-1134-7
02202-4700-7
G - 102 1, 1 al 25
TALTAL , GUANACO
100%
02202-4701-8
WE - 49 1, 1 al 25
TALTAL , GUANACO
100%
02202-4702-3
WE - 61 1, 1 al 25
TALTAL , GUANACO
100%
02202-4703-1
WE - 62 1, 1 al 25
TALTAL , GUANACO
100%
02202-4934-4
Diamante 1
TALTAL , GUANACO
100%
02202-5252-3
Rocío 1
TALTAL , GUANACO
100%
02202-6599-4
02202-6600-1
02202-6601-K
02202-6602-8
02202-6603-6
02202-5253-1
Rocío 2, 1 al 2
TALTAL , GUANACO
100%
02202-6604-4
02202-5254-K
Rocío 3, 1 al 2
TALTAL , GUANACO
100%
02202-6605-2
02202-5255-8
G-1, 1 al 40
TALTAL , GUANACO
100%
02202-5263-9
G-2, 1 al 40
TALTAL , GUANACO
100%
02202-5256-6
WE-64 B, 1 al 25
TALTAL , GUANACO
100%
02202-5264-7
Protector I, 1-40
TALTAL , GUANACO
100%
02202-5265-5
Protector II, 1-60
TALTAL , GUANACO
100%
02205-0347-K
K
TALTAL , GUANACO
100%
02202-6606-0
02202-6607-9
02202-6608-7
02202-6609-5
02202-6610-9
02202-6420-3
G-9, 1 al 10
TALTAL , GUANACO
100%
02202-6611-7
02202-6421-1
G-18, 1 al 10
TALTAL , GUANACO
100%
02202-6631-1
02202-6632-K
Las Pailas XIV, 1
al 30
Las Pailas XV, 1
al 30
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
02202-6612-5
02202-6613-3
02202-6595-1
Chancho 1, 1
al 20
Chancho 2, 1
al 20
Chancho 3, 1
al 20
Chancho 4, 1
al 20
Chancho 5, 1
al 20
Chancho 6, 1
al 20
Chancho 7, 1
al 20
Chancho 8, 1
al 20
Chancho 9, 1
al 20
Chancho 10, 1
al 20
Chancho 11, 1
al 30
Chancho 12, 1
al 20
Chancho 13, 1
al 20
Chancho 14, 1
al 30
Chancho 15, 1
al 30
Chancho 16, 1
al 30
Salvadora 1, 1
al 20
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
84
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 MINING TENEMENTS
Tenement
Number
02202-6596-K
02202-6597-8
02202-6794-6
02202-6795-4
02202-6796-2
02202-6797-0
02202-6798-9
02202-6799-7
02202-6800-4
02202-6801-2
02202-6802-0
02202-6803-9
02202-6804-7
02202-6805-5
02202-6806-3
Tenement
name
Salvadora 2, 1
al 20
Salvadora 3, 1
al 20
Las Pailas I, 1
al 30
Las Pailas II, 1
al 30
Las Pailas III, 1
al 30
Las Pailas IV, 1
al 30
Las Pailas V, 1
al 30
Las Pailas VI, 1
al 30
Las Pailas VII, 1
al 30
Las Pailas VIII, 1
al 30
Las Pailas IX, 1
al 30
Las Pailas X, 1
al 20
Las Pailas XI, 1
al 20
Las Pailas XII, 1
al 20
Las Pailas XIII, 1
al 20
Locality
Group
ownership
Tenement
Number
Tenement
name
Locality
Group
ownership
TALTAL , GUANACO
100%
02202-6958-2
G-20, 1 al 30
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
02202-6959-0
G-21, 1 al 30
TALTAL , GUANACO
100%
02202-6960-4
G-22, 1 al 30
TALTAL , GUANACO
100%
02202-6961-2
G-23, 1 al 30
TALTAL , GUANACO
100%
02202-6962-0
G-24, 1 al 30
TALTAL , GUANACO
100%
02202-6963-9
G-25, 1 al 20
TALTAL , GUANACO
100%
02202-6964-7
G-26, 1 al 30
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
02202-6965-5
G-27, 1 al 30
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
02202-6966-3
G-28, 1 al 20
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
02202-6967-1
G-29, 1 al 30
TALTAL , GUANACO
100%
02202-6968-K
G-30, 1 al 30
TALTAL , GUANACO
100%
02202-6969-8
G-31, 1 al 30
TALTAL , GUANACO
100%
02202-6970-1
G-32, 1 al 30
TALTAL , GUANACO
100%
022026971-K
G-33, 1 al 30
TALTAL , GUANACO
100%
02202-6972-8
G-34, 1 al 30
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
02202-6973-6
G-35, 1 al 30
TALTAL , GUANACO
100%
TALTAL , GUANACO
100%
02202-6974-4
G-36, 1 al 20
TALTAL , GUANACO
100%
02202-6807-4
G-3, 1 al 6
TALTAL , GUANACO
100%
02202-6975-2
G-37, 1 al 20
TALTAL , GUANACO
100%
02202-6808-K
G-4, 1 al 6
TALTAL , GUANACO
100%
02202-6976-0
G-38, 1 al 20
TALTAL , GUANACO
100%
02202-6809-8
G-5, 1 al 20
TALTAL , GUANACO
100%
02202-6977-9
G-39, 1 al 20
TALTAL , GUANACO
100%
02202-6810-1
G-6, 1 al 20
TALTAL , GUANACO
100%
02202-6978-7
G-40, 1 al 20
TALTAL , GUANACO
100%
02202-6811-K
G-7, 1 al 20
TALTAL , GUANACO
100%
02202-6812-8
G-8, 1 al 20
TALTAL , GUANACO
100%
02202-6813-6
G-9, 1 al 19
TALTAL , GUANACO
100%
02202-5397-K
Justicia 1 al 25
TALTAL , GUANACO
100%
02202-4509-8
Limbo Uno, 1
al 5
TALTAL , GUANACO
100%
02202-4510-1
Limbo Dos, 1 al 5
TALTAL , GUANACO
100%
02202-6814-4
G-10, 1 al 18
TALTAL , GUANACO
100%
02202-4511-K
02202-6815-2
G-11, 1 al 20
TALTAL , GUANACO
100%
02202-6979-5
02202-6816-0
G-12, 1 al 20
TALTAL , GUANACO
100%
02202-6980-9
02202-6817-9
G-13, 1 al 20
TALTAL , GUANACO
100%
02202-6818-7
G-14,1 al 20
TALTAL , GUANACO
100%
02202-6819-5
G-15, 1 al 20
TALTAL , GUANACO
100%
02202-6820-9
G-16, 1 al 20
TALTAL , GUANACO
100%
02202-6955-8
G-17, 1 al 20
TALTAL , GUANACO
100%
02202-6956-6
G-18, 1 al 20
TALTAL , GUANACO
100%
02202-6981-7
02202-6982-5
02202-6983-3
02202-6984-1
02202-7148-K
02202-6957-4
G-19, 1 al 30
TALTAL , GUANACO
100%
02202-7149-8
Limbo Tres, 1
al 5
FORTUNA I, 1
al 30
FORTUNA II, 1
al 30
FORTUNA III, 1
al 30
FORTUNA IV, 1
al 20
FORTUNA V, 1
al 20
FORTUNA VI, 1
al 20
FORTUNA VII,
1 al 30
FORTUNA VIII,
1 al 20
TALTAL , GUANACO
100%
TALTAL , FORTUNA
100%
TALTAL , FORTUNA
100%
TALTAL , FORTUNA
100%
TALTAL , FORTUNA
100%
TALTAL , FORTUNA
100%
TALTAL , FORTUNA
100%
TALTAL , FORTUNA
100%
TALTAL , FORTUNA
100%
85
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 MINING TENEMENTS
Tenement
Number
02202-7150-1
02202-7151-K
02202-7152-8
02202-7153-6
02202-7154-4
02202-7155-2
02202-7351-2
02201-8025-5
02201-8026-3
02201-8027-1
02202-7156-0
02201-8028-K
02201-8029-8
02201-8030-1
02201-8031-K
02201-8032-8
02202-7157-9
02202-7158-7
02202-7159-5
Tenement
name
FORTUNA IX, 1
al 30
FORTUNA X, 1
al 20
FORTUNA XI, 1
al 30
FORTUNA XII,
1 al 20
FORTUNA XIII,
1 al 30
FORTUNA XIV,
1 al 20
FORTUNA XV,
1 al 5
ESCONDIDA I,
1 al 30
ESCONDIDA II,
1 al 30
Locality
Group
ownership
Tenement
Number
Tenement
name
Locality
Group
ownership
TALTAL , FORTUNA
100%
02201-O936-5
Loreto II
TALTAL , FORTUNA
100%
02201-O937-3
Loreto III
TALTAL , FORTUNA
100%
02201-O938-1
Loreto IV
TALTAL , FORTUNA
100%
02202-4675-2
TALTAL , FORTUNA
100%
02202-4676-0
TALTAL , FORTUNA
100%
02202-4677-9
TALTAL , FORTUNA
100%
02202-4678-7
TALTAL ,
ESCONDIDA
TALTAL ,
ESCONDIDA
100%
02202-4679-5
100%
02202-4680-9
100%
02202-4681-7
Amancaya 1A,
1 al 20
Amancaya 1B,
1 al 30
Amancaya 2, 1
al 55
Amancaya 3, 1
al 60
Amancaya 4, 1
al 60
Amancaya 5, 1
al 60
Amancaya 6, 1
al 40
TALTAL , CERRO
PROVIDENCIA
TALTAL , CERRO
PROVIDENCIA
TALTAL , CERRO
PROVIDENCIA
100%
100%
100%
Taltal, Amancaya
100%
Taltal, Amancaya
100%
Taltal, Amancaya
100%
Taltal, Amancaya
100%
Taltal, Amancaya
100%
Taltal, Amancaya
100%
Taltal, Amancaya
100%
ESCONDIDA III,
1 al 30
TALTAL ,
ESCONDIDA
ESCONDIDA IV,
1 al 30
ESCONDIDA V,
1 al 30
TALTAL ,
ESCONDIDA
TALTAL ,
ESCONDIDA
ESCONDIDA VI,
1 al 30
TALTAL ,
ESCONDIDA
ESCONDIDA VII,
1 al 30
TALTAL ,
ESCONDIDA
ESCONDIDA
VIII, 1 al 30
TALTAL ,
ESCONDIDA
ESCONDIDA IX,
1 al 30
TALTAL ,
ESCONDIDA
ESCONDIDA X,
1 al 30
TALTAL ,
ESCONDIDA
ESCONDIDA XI,
1 al 20
TALTAL ,
ESCONDIDA
ESCONDIDA XII,
1 al 30
TALTAL ,
ESCONDIDA
100%
100%
100%
100%
100%
100%
100%
100%
100%
02202-4112-2
Janita 1 al 15
Taltal, Amancaya
100%
02202-5483-6
Sabina 1, 1 al 28
Taltal, Amancaya
100%
02202-5486-0
Sabina 4, 1 al 60
Taltal, Amancaya
100%
02202-5487-9
Sabina 5, 1 al 60
Taltal, Amancaya
100%
02202-5488-7
Sabina 6, 1 al 40
Taltal, Amancaya
100%
02202-5489-5
Sabina 7, 1 al 30
Taltal, Amancaya
100%
02202-5485-2
Sabina 3, 1 al 60
Taltal, Amancaya
100%
02202-7138-2
02202-4528-4
02202-4529-2
02202-4530-6
02202-5497-6
Sabina Dos, 1
al 18
BARBARA 1,
1-60
BARBARA 2,
1-30
BARBARA 3,
1-60
BARBARA 4,
1-60
BARBARA 5,
1-30
BARBARA 6,
1-60
BARBARA 7,
1-30
Taltal, Amancaya
100%
Taltal, Juncal
100%
Taltal, Juncal
100%
Taltal, Juncal
100%
Taltal, Juncal
100%
Taltal, Juncal
100%
Taltal, Juncal
100%
Taltal, Juncal
100%
100%
100%
100%
100%
02202-7346-6
Mateo I, 1 al 30
TALTAL , GUANACO
100%
02202-7347-4
Mateo II, 1 al 30
TALTAL , GUANACO
100%
02202-7348-2
Mateo III, 1 al 30
TALTAL , GUANACO
100%
02202-7356-3
Mateo IV, 1 al 21
TALTAL , GUANACO
100%
02202-4532-2
02202-7349-0
Mateo V, 1 al 30
TALTAL , GUANACO
100%
02202-7350-4
Mateo VI, 1 al 17
TALTAL , GUANACO
100%
02202-5742-8
Vino 2, 1 al 60
TALTAL , GUANACO
100%
02202-4533-0
02202-4534-9
02202-5743-6
Vino 3, 1 al 60
TALTAL , GUANACO
100%
02202-4835-6
FLORA 1, 1-20
Taltal, Juncal
02202-5744-4
Vino 4, 1 al 60
TALTAL , GUANACO
100%
02202-4836-4
FLORA 2, 1-30
Taltal, Juncal
02202-5746-0
Vino 6, 1 al 60
TALTAL , GUANACO
100%
02202-4837-2
FLORA 3, 1-30
Taltal, Juncal
02202-5747-9
Vino 7, 1 al 60
TALTAL , GUANACO
100%
02202-5749-5
Vino 9, 1 al 60
TALTAL , GUANACO
100%
02201-O935-7
Loreto I
TALTAL , CERRO
PROVIDENCIA
100%
02202-4838-0
FLORA 4, 1-30
Taltal, Juncal
86
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017 88
AUSTRAL GOLD LIMITED ANNUAL REPORT 2017