ACN 116 221 740
Annual Report
30 June 2017
Australian Vanadium Limited 2017 Annual Report
Contents
Corporate Directory
Letter from the Chairman
Directors’ Report
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Auditors’ Independence Declaration
Independent Auditors’ Report
Annual Mineral Resource Statement
ASX Additional Information
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Australian Vanadium Limited 2017 Annual Report
Corporate Directory
Directors
Vincent Algar (Managing Director)
Leslie Ingraham (Executive Director)
Brenton Lewis (Non-Executive Chairman)
Daniel Harris (Non-Executive Director
Company Secretary
Neville Bassett
Registered Office
Level 1, 85 Havelock Street
West Perth WA 6005
Telephone
08 9321 5594
Facsimile
08 6268 2699
Share Registry
Computershare Investor Services Pty Ltd
Level 11
172 St Georges Terrace
Perth WA 6000
Telephone 08 9323 2000
08 9323 2033
Facsimile
Auditors
Armada Audit & Assurance Pty Ltd
3 Alvan Street
Mount Lawley WA 6050
Securities Exchange Listing
Australian Vanadium Limited shares (AVL) and options (2 cents/expiring 31 December 2018) (AVLO)
are listed on the Australian Securities Exchange (ASX).
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Australian Vanadium Limited 2017 Annual Report
Letter from the Chairman
Dear Fellow Shareholders,
On behalf of your Board of Directors, I have pleasure in presenting the 2017 Annual Report and Financial
Statements of Australian Vanadium Limited (“AVL” or the “Company”) for the 30 June 2017 financial year.
The last 12 months have seen the Company achieve several important milestones on its flagship Gabanintha
vanadium project in Western Australia, positioning the Company to take advantage of the recent significant
increase in global vanadium prices.
Important achievements include the completion of a major resource upgrade at Gabanintha, cementing the
project as a world-class vanadium resource in size, quality and grade. The resource update announced on 5
September 2017, confirmed a Mineral Resource at Gabanintha comprising 179.6Mt at 0.75% vanadium
pentoxide (V2O5), made up of a Measured Mineral Resource of 10.2Mt at 1.06% V2O5, an Indicated Mineral
Resource of 25.4Mt at 0.62% V2O5, and an Inferred Mineral Resource of 144Mt at 0.75% V2O5.
The updated Mineral Resource provides strong support for advancing the project towards detailed feasibility.
The team at AVL has been advancing key activities in the areas of environmental approvals and negotiations
with Native Title groups. These steps will ensure the all-important environmental and community support
for the timely approval of a mining lease over Gabanintha.
The ongoing shortage of supply, and consistently increasing demand for vanadium steel products, coupled
with the rapidly growing needs of vanadium energy storage applications, has seen a greater than 100%
increases in the price of vanadium in the last 12 months. An ongoing level of higher pricing and high demand
will be highly supportive of the Company’s efforts in moving the Gabanintha project towards development
in the shortest possible timeframe.
I wish to thank shareholders for their continuing support throughout the year and extend my sincere thanks
to the Board, management and staff for their contributions and efforts.
Yours faithfully
Brenton Lewis
Chairman
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Australian Vanadium Limited 2017 Annual Report
Directors’ Report
CORPORATE HIGHLIGHTS
The past year has seen Australian Vanadium Ltd make progress in its key strategic areas. A summary of key
events follows:
Gabanintha Vanadium Project
• An updated Mineral Resource estimation represented a 96% increase in the overall mineral
resource.
• The Mineral Resource at Gabanintha comprises 179.6Mt at 0.75% vanadium pentoxide (V2O5),
made up of a Measured Mineral Resource of 10.2Mt at 1.06% V2O5, an Indicated Mineral Resource
of 25.4Mt at 0.62% V2O5, and an Inferred Mineral Resource of 144Mt at 0.75% V2O5.
• Engineering concept study was expanded for additional mining and processing scenarios including
concentrate-only and co-production of vanadium battery electrolyte opportunities.
• New exploration licences acquired, increasing the Company’s strategic holding.
• Key environmental surveys commenced focused on flora, fauna and stygofauna/troglofauna
identification.
• Mining Agreement discussions commenced with the Yugunga-Nya Native Title Claimant Group.
• Significant cobalt identified in existing Gabanintha drilling with metallurgical test work indicating a
by-product opportunity during vanadium processing.
• The Neomet mineral recovery process is to be tested through Sedgman Engineering.
VSUN Energy
• Successful installation and operation of first Vanadium Redox Flow Battery (VRB) in Western
Australia. Successful ongoing operation for over 11 months.
• Electrolyte pilot plant successfully installed at the University of Western Australia.
• VSUN Energy investigating residential VRB opportunities and potential manufacture in Australia.
• Substantial marketing effort to increase awareness of vanadium flow battery technology and
applications.
• VRB sales expanded to include new products from other suppliers, offering greater flexibility of
pricing and sizing for potential customers.
Blesberg Project, South Africa
• Rights secured to acquire up to 50.03% interest in South African Blesberg lithium-tantalum project.
• Drilling and exploration activity undertaken on main pegmatite zones.
• Drilling results identify significant zones of feldspar with commercial exploitation potential.
Bryah Resources Limited
• AVL agreed to sell the base metal and gold rights over the Gabanintha Project to Bryah Resources
Limited.
• Shareholders received a priority offer in the Bryah Resources Initial Public Offering.
Corporate Matters
• Daniel Harris appointed as non-Executive Director, strengthening AVL’s vanadium credentials.
• Recent placements raise $2.505 million before costs.
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Australian Vanadium Limited 2017 Annual Report
REVIEW OF OPERATIONS
Gabanintha Vanadium Project
The Gabanintha Vanadium Project is located approximately 40km south of Meekatharra within the
northern Murchison region of Western Australia. Access from Perth is via the Great Northern Highway and
the Meekatharra-Sandstone Road (Figure 1).
Figure 1 - Location of Gabanintha Vanadium Project and adjacent vanadium deposits
The following is a summary of activities undertaken on the Gabanintha Vanadium Project during the period
up to the date of this report.
Mineral Resource Estimate Upgrade
In September 2017, the Company announced a significant resource upgrade for the Gabanintha Vanadium
Project. The updated Measured, Indicated and Inferred Mineral Resource is 179.6 million tonnes (Mt) at
0.75% V2O5 which includes a Measured and Indicated Mineral Resource of 35.5Mt grading 0.75% V2O5.
This updated estimation represented a 96% increase in the overall Resource, a 46% increase in the
Measured Resource, a 43% increase in the Indicated Resource and a 116% increase in the Inferred Resource
categories for the Project compared to the 2015 estimation.
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Australian Vanadium Limited 2017 Annual Report
There is extensive potential to convert Inferred Resources to the Measured and Indicated categories at
Gabanintha with additional targeted drilling.
The revised estimate was conducted following a major revision of the geological interpretation for the
Gabanintha mafic layered intrusion. The revision was based on the collection of additional density
information; a major review of geological logging and zone coding; extensive consideration of geophysics
and a review of the geological continuity along-strike and down-dip.
The result helps underpin the Company’s aim to become Australia’s next new vanadium producer,
commencing with an extensive metallurgical test work program and beneficiation circuit design to be
undertaken on the company’s existing diamond core. This will be followed by the completion of a
Preliminary Feasibility Study into an early-start, concentrate-only production option for Gabanintha.
Figure 2 - Cross Section at Northing 7015735m Showing Drill Intercepts, High Grade and
Low Grade Domains and Weathering Profiles.
Pit Optimisation
Pit optimisation modelling which was conducted as part of an updated Concept Study earlier in 2017
recorded very positive results including:
o
o
o
a preliminary open pit shell extending for approximately 4.3 kilometres long within the northern
part of the resource area;
an estimated 45.3 Mt of Mineral Resources falling within the open pit shell, and
100% of Measured and 99% of Indicated Mineral Resources captured within the open pit shell.
Further pit optimisation work will be undertaken on the updated resource using the results of the
revised resource model and metallurgical test work results.
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Australian Vanadium Limited 2017 Annual Report
Hydrometallurgical study
In June 2017, the Company engaged with Sedgman to undertake a review of the behaviour of certain
mineralised materials from Gabanintha using the low cost, high polymetallic recovery proprietary
hydrometallurgical Neomet process.
The Company has sent sample materials to be initially tested through a standard Neomet bench scale
testing facility in Sedgman’s Montreal laboratory. The initial tests will be conducted free-of-charge to the
Company.
The proprietary process has demonstrated its ability to extract and recover over 95% of secondary metals
at a commercial grade, with a metal purity of over 99.5%. The process enables the extraction of V2O5, TiO2
and Fe3O2 from TVM (titaniferous vanadiferous magnetite) ores such as Gabanintha. The process seeks to
generate maximum value of in-situ metal credits. A unique closed Hydrochloric acid (HCl) leaching circuit
for acid regeneration and reuse/recycle is used in the process.
Environmental
The environmental approval process that must occur as part of any project development has the potential
to delay project timelines due to the substantial information needed by regulators. Accordingly, the
Company commenced baseline environmental studies during the year which are ongoing with flora, fauna,
stygofauna and troglofauna field sampling programs undertaken.
An initial field sampling study of subterranean fauna study was completed. Vertebrate and short-range
endemic invertebrate fauna studies and a two-season level 2 flora and vegetation study were also
completed during the year.
Native Title
Discussions in relation to a Mining Agreement have commenced with the Yugunga-Nya Native Title claimant
group. Once the Mining Agreement is finalised the mining lease application process can be completed.
Tenement acquisition
The Company acquired two exploration licences adjacent to the Gabanintha Project. The tenements were
acquired 100% from an unrelated private third party with no encumbrances, for a consideration of
$100,000 which was payable in shares. The licences (E51/1694 and E51/1695) lie immediately to the west
of the Company’s Gabanintha Project (Figure 3).
Nowthanna Hill Project
During the year, the Company successfully negotiated a mining project agreement with the Yugunga-Nya
people. As a result of this agreement, mining lease M51/771 was granted in August 2017.
Coates Project
In July 2017, the Company added to its vanadium portfolio with the acquisition of exploration licence
E70/4924-I over the Coates Vanadium deposit. The deposit is situated approximately 35km east of the
Perth metropolitan area in the Shire of Wundowie, Western Australia.
The geology of the Coates deposit is unique and shows that vanadiferous magnetite is developed from the
weathering profile of an underlying gabbro in a laterite outcrop on a ridge. The Coates vanadium deposit
occurs in magnetite lenses at the core of the layered Coates Gabbro. The gabbro is poorly exposed in an
area of extensive lateritization, but appears to be between two granitic bodies. The Coates Gabbro is about
1 km long and up to 600 m wide.
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Australian Vanadium Limited 2017 Annual Report
Figure 3 - Gabanintha Location Map showing new tenement acquisitions
Blesberg Project
In late 2016 the Company secured rights to a controlling stake in the Blesberg Project in South Africa
through the acquisition of South African Lithium Pty Ltd.
In 2017 the Company completed 41 holes (3128m) of Reverse Circulation (RC) drilling, designed to allow
the calculation and reporting of a mineral resource estimate in accordance with the 2012 JORC Code.
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Australian Vanadium Limited 2017 Annual Report
The programme was designed to achieve a drill intersection spacing of 50m, sufficient to allow good
resolution of the pegmatite geometry and mineral distribution and to assess the value of the Lithium-
Caesium-Tantalum (LCT) pegmatites at Blesberg, including the volume of ceramic grade feldspar and of high
value by-products of spodumene, beryl and tantalite.
The Company is working with a local South African consultancy with relationships and expertise in feldspar
sales and initial samples have been taken for evaluation. The consultancy has a division dedicated to the
permitting of mines by assisting in the environmental approval and mining right process. AVL and the group
are advancing the collaboration towards a MOU regarding assistance with development of the site at
Blesberg.
High quality commercial feldspars used in the ceramic and glass industry attracts prices ranging from US$60
to US$120 per tonne of product material. Extraction is normally by open cut mining and physical mineral
processing methods to produce a specified product sizing. Differences in the physical characteristics of
minor accessory minerals such as spodumene, tantalum and beryl offer an opportunity for their extraction
using a range of methods.
VSUN Energy
VSUN Energy Pty Ltd is a 100% owned subsidiary with the sole focus of the development of the Australian
market for vanadium flow batteries. Public and business interest in energy storage, from domestic through
to large network scale, has accelerated globally throughout 2017, and is expected to grow further in 2018
and beyond.
Company branding
To provide clarity around branding, VSUN changed its name to VSUN Energy and adopted a new logo and
website to further educate the market about its strategies and capabilities in the energy storage market.
Vanadium Redox Flow Battery
VSUN Energy’s initial installation of a 10kW-100kWh VRB at a native tree nursery in Busselton, Western
Australia has been performing as expected since October 2016. Despite some cloudy periods where less
solar energy was generated, the site has not needed to take power from the grid during this period,
meaning that it has in effect been providing an off-grid solution.
Residential VRB
VSUN Energy believes that the existence of a residential VRB product in developing markets, particularly
Australia with its extremely high levels of residential rooftop generated solar energy, will have a
consequential impact on the sales of larger VRB systems, as people become more comfortable and familiar
with the robustness of the VRB technology. Small scale VRBs are also ideally suited for small scale
standalone applications such as powering remote telecommunications facilities and irrigation pumping
facilities.
VSUN Energy has commissioned initial market reviews and partner discussions and intends to undertake a
feasibility study into developing a residential VRB product in Australia in due course. Manufacturing
locations within Australia are being considered, which would enable VSUN Energy to build Australian
expertise in this growing technology. Local manufacturing will also reduce the cost of transportation and
therefore the cost of batteries to Australian customers.
Until manufacturing in Australia can be established, VSUN Energy intends to utilise products from around
the world that are already commercially available.
VRB marketing
The company employed a technical sales representative for a short period of time, but has reverted to sub-
agency agreements to develop a larger sales footprint and build the lead generation potential. Tenders and
quotes have been submitted for projects ranging from the smallest system of 5kW-15kWh to a 40MW-
160MWh solution. Successful social media, print marketing and conference attendance has built a solid
reputation within the energy market.
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Australian Vanadium Limited 2017 Annual Report
Leads for battery sales continue to be developed and followed up. Price and perception in the market about
future developments in energy storage are key hurdles to overcome. Hundreds of potential sales leads
have been pursued and both outgoing lead generation and incoming queries are steady. This indicates the
large potential market of VRB systems within the Australian market, after less than one year of lead
generation by a small team at VSUN Energy.
Leads include projects from sectors including mining, industrial, agricultural, multi-residential, hotels,
educational, commercial and tender responses.
Vanitec
Vanitec is the not-for-profit international organisation representing the interests of all members of the
vanadium market worldwide. Membership of the organisation ensures that the company has access to a
wide range of information and contacts within the industry. In 2016, Vincent Algar was appoint as Chair of
the newly formed Vanitec Energy Storage Committee.
Electrolyte Pilot Plant
At the end of 2016 the vanadium electrolyte pilot plant purchased from C-Tech Innovation was successfully
installed at the University of Western Australia. The installation of the pilot plant has enabled the Company
to develop vanadium electrolyte production expertise and capability within Australia. The pilot plant is
being used to test and verify the production of vanadium electrolyte products that are suitable for use in
third party VRB (see Figures 5 & 6). Plans for a larger commercial plant are continuing to be evaluated by
the Company as part of a Concept Study. Technology options, plant sizing and location are being assessed
to determine the ideal commercial model, capital and operating costs for the commercial plant.
Figure 4 - Initial Vanadium dosing of Acid
Figure 5 - Balanced Vanadium electrolyte
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Australian Vanadium Limited 2017 Annual Report
Bryah Resources Limited
In January 2017, the Company agreed to sell the precious and base metal rights in the Gabanintha Project,
as well as 100% equity in the Peak Hill Project tenement (E52/3349) to Bryah Resources Limited.
Under the agreement, the Company retains all mineral rights to vanadium, titanium, chromium, cobalt,
uranium, lithium, tantalum, iron ore and manganese within the Gabanintha Project area and retains
primary title over the licences.
Bryah Resources Limited is a public company with a focus on gold and copper exploration and is undertaking
an Initial Public Offering (IPO) on the ASX. The sale of the Gabanintha Project mineral rights is conditional
upon Bryah Resources successfully completing its IPO and listing on the ASX. The transaction represents an
opportunity for the Company to realise value for the gold and base metals’ potential of its Gabanintha and
Peak Hill Projects, whilst it continues to pursue its strategic focus on vanadium.
The Company has taken a significant equity position of between 7% and 9% in Bryah Resources Limited,
meaning that the Company will benefit from any Cu/Au exploration success at Gabanintha or on their Bryah
Basin tenements which are in an area of significant economic mineral deposits.
PLACEMENTS
On 25 July 2017, the Company completed a placement to sophisticated investors, raising $750,000 before
costs. Under the placement 50 million new shares were issued at a price of $0.015/share, together with 50
million free attaching listed options exercisable at $0.02 each on or before 31 December 2018. The
Securities were issued under the Company’s available placement capacity under ASX Listing Rules 7.1.
On 7 August 2017, the Company completed a placement in two tranches to sophisticated investors, raising
$750,000 before costs. Under Tranche 1 of the placement 50 million new shares were issued at a price of
$0.015/share, together with 25 million free attaching listed options (“Options”) exercisable at $0.02 each
on or before 31 December 2018. The Securities were issued under the Company’s available placement
capacity under ASX Listing Rules 7.1. Under Tranche 2 a further 25,000,000 Options are to be issued subject
to shareholder approval.
On 18 September 2017, the Company completed a placement in two tranches to sophisticated investors,
raising $1,005,000 before costs. Under Tranche 1 of the placement 67 million new shares were issued at a
price of $0.015/share. The Securities were issued under the Company’s available placement capacity under
ASX Listing Rules 7.1A. Under Tranche 2 a further 67,000,000 listed options exercisable at $0.02 each on or
before 31 December 2018 are to be issued subject to shareholder approval.
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Australian Vanadium Limited 2017 Annual Report
DIRECTORS
The names of the Directors of the Company in office during or since the end of the financial year and up to
the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.
Name
Vincent Algar
Leslie Ingraham
Brenton Lewis
Daniel Harris
Position
Appointed/Retired
Managing Director
Executive Director
Non-Executive Chairman
Non-Executive Director
Appointed 1 February 2017
The qualifications, experience and special responsibilities of each Director are as follows:
VINCENT ALGAR BSC (Hons) Geology MAusIMM
Mr Vincent Algar is a geologist by profession with over 25 years’ experience in the mining industry spanning
underground and open cut mining operations, greenfields exploration, project development and mining
services in Western Australia and Southern Africa. He has significant experience in the management of
publicly listed companies, which includes the entire compliance, marketing and management process and
encompasses the development of internal geological and administrative systems, exploration planning and
execution, plus project acquisition and deal completion.
Mr Algar was Managing Director of Shaw River Manganese Limited from 2006 to 2012 and was instrumental
in the $20 million acquisition of a 75.5% stake in the Otjo Manganese Project in Namibia in 2011. Mr Algar
has worked on a wide range of commodities, most recently in base metals and uranium.
During the past three years, Mr Algar was also a director of the following ASX listed companies: Nil.
LESLIE INGRAHAM
Mr Ingraham has been in private business for over 25 years and is an experienced mineral prospector and
professional investor. He has successfully worked as a consultant for both private companies and
companies listed on the ASX. Core competencies include capital raising and shareholder liaison.
During the past three years, Mr Ingraham was also a director of the following ASX listed companies: Nil.
BRENTON LEWIS BBSc (Hons), MBSc
Mr Lewis is an academic who has spent the past 20 years in the tertiary education sector. He has held
management positions including Head of Department and Head of Post-Graduate Studies. He has published,
taught and researched in areas including ethics and psychopathology. He has been a consultant to various
health agencies including the Hong Kong Hospital Authority and the WA Health Department. He has served
on numerous boards of management including academic and non-government organisations.
During the past three years, Mr Lewis was also a director of the following ASX listed companies: Nil.
DANIEL HARRIS
Mr Harris brings with him a vast amount of expertise in the vanadium industry and an understanding of
the resource sector from both a technical and financial perspective.
Recent roles include the interim CEO and Managing Director at Atlas Iron Limited; CEO & Chief Operating
Officer at Atlantic Ltd; Vice President & Head of Vanadium Assets at Evraz Group; Managing Director at
Vametco Alloys; General Manager of Vanadium Operations at Strategic Minerals Corporation and as an
independent technical and executive consultant to GSA Environmental Limited in the United Kingdom.
During the past three years, Mr Harris was a director of the following ASX listed companies:
Atlas Iron Limited - appointed 6 May 2016.
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Australian Vanadium Limited 2017 Annual Report
COMPANY SECRETARY
NEVILLE BASSETT
Mr Bassett is a Chartered Accountant with over 30 years of experience. He has been involved with a diverse
range of Australian public listed companies in directorial, company secretarial and financial roles.
Interests in the shares and options of the company and related bodies corporate
As at the date of this report, the interests of the Directors and executives in the shares and options of
Australian Vanadium Limited were:
Vincent Algar1
Leslie Ingraham2
Brenton Lewis3
Daniel Harris
Number of
Number of Options
Ordinary Shares over Ordinary Shares
692,307
5,571,129
25,478,774
8,778,600
-
10,000,000
2,694,650
-
1 Mr Algar also holds 5,000,000 performance rights. Refer to the Remuneration Report for further details.
2 Mr Ingraham also holds 5,000,000 performance rights. Refer to the Remuneration Report for further details.
3 Mr Lewis also holds 2,000,000 performance rights. Refer to the Remuneration Report for further details.
MEETINGS OF DIRECTORS
The number of meetings of Directors (including meetings of committees of Directors) held during the year
and the number of meetings attended by each Director were as follows:
Board of Directors
Number eligible to attend
Number attended
Vincent Algar
Leslie Ingraham
Brenton Lewis
Daniel Harris
4
4
4
2
4
4
4
2
INSURANCE OF OFFICERS
The Company has in place an insurance policy insuring Directors and Officers of the Company against any
liability arising from a claim brought by a third party against the Company or its Directors and Officers, and
against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of
their conduct whilst acting in their capacity as a Director or Officer of the Company, other than conduct
involving a wilful breach of duty in relation to the Company.
In accordance with a confidentiality clause under the insurance policy, the amount of the premium paid to
the insurers has not been disclosed. This is permitted under Section 300(9) of the Corporations Act 2001.
ENVIRONMENTAL REGULATIONS
The Group’s operations are subject to various environmental laws and regulations under government
legislation. The exploration tenements held by the Group are subject to these regulations and there have
not been any known breaches of any environmental regulations during the year under review and up until
the date of this report.
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Australian Vanadium Limited 2017 Annual Report
CORPORATE INFORMATION
Nature of Operations and Principal Activities
The principal continuing activities during the year of entities within the consolidated entity were
exploration for vanadium/titanium and other economic resources, the development of vanadium
electrolyte production and the sale of VRB systems.
Corporate Structure
Australian Vanadium Limited is a limited liability company that is incorporated and domiciled in Australia.
The Company has prepared a consolidated financial report incorporating the entities that it controlled
during the financial year as follows:
Australian Vanadium Limited -
VSUN Energy Pty Ltd -
(formerly Australian Vanadium Resources Pty Ltd)
South African Lithium Pty Ltd -
Australian Uranium Pty Ltd -
Cabe Resources Limited -
OPERATING AND FINANCIAL REVIEW
Operating Review
parent entity
100% owned controlled entity
100% owned controlled entity
100% owned controlled entity
100% owned controlled entity
A review of operations for the financial year is contained within this Directors’ Report. The consolidated
loss after income tax for the financial year was $2,077,633 (2016: $1,285,100).
Financial Position
At 30 June 2017, the Group had cash reserves of $1,524,171 (2016: $3,196,659). The net assets of the Group
have increased by $1,261,428. The increase is largely due to the following factors:
•
the conversion of 115,365,615 unlisted options into new shares at 1.4712 cents per share, raising
$1,697,259;
ongoing exploration and evaluation of the Gabanintha Vanadium and Blesberg Projects;
advancement of the vanadium in energy storage strategy;
incurring overheads and running costs consistent with operating a listed company; and
remuneration of key management personnel essential to the continued success of the Group.
•
•
•
•
Dividends
No dividends were paid during the year and no recommendation is made as to dividends.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Significant changes in the state of affairs of the Company during the financial year are detailed in the
Company’s review of operations. In the opinion of the Directors, there were no other significant changes in
the state of affairs of the Company that occurred during the financial year under review not otherwise
disclosed in this Annual Report.
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Australian Vanadium Limited 2017 Annual Report
EVENTS SUBSEQUENT TO REPORTING DATE
No matters or circumstances have arisen since the end of the financial year which significantly affected, or
may significantly affect, the operations of the Company, the results of those operations, or the state of
affairs of the Company in subsequent financial years, other than as outlined in the Company’s review of
operations which is contained in this Annual Report.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Company will continue to pursue its principal activity of exploration and evaluation, and associated
activities as outlined in the Company’s review of operations. The Company will also continue to pursue
other potential investment opportunities to enhance shareholder value.
REMUNERATION REPORT (AUDITED)
This report details the nature and amount of remuneration for each director and executive of Australian
Vanadium Limited. The information provided in the remuneration report includes remuneration disclosures
that are audited as required by section 308(3C) of the Corporations Act 2001.
For the purposes of this report Key Management Personnel of the Group are defined as those persons
having authority and responsibility for planning, directing and controlling the major activities of the Group,
directly or indirectly, including any director (whether executive or otherwise) of the parent company.
For the purposes of this report the term “executive” includes those key management personnel who are
not Directors of the parent company.
Remuneration Committee
The full Board carries out the role and responsibilities of the Remuneration Committee and is responsible
for determining and reviewing the compensation arrangements for the Directors themselves, the Managing
Director and any Executives.
Executive remuneration is reviewed annually having regard to individual and business performance,
relevant comparative remuneration and internal and independent external advice.
Remuneration Policy
The board policy is to remunerate Directors at market rates for time, commitment and responsibilities. The
board determines payments to the Directors and reviews their remuneration annually, based on market
practice, duties and accountability. Independent external advice is sought when required. The maximum
aggregate amount of Directors’ fees that can be paid is subject to approval by shareholders in a general
meeting, from time to time. Fees for non-executive directors are not linked to the performance of the
consolidated entity. However, to align Directors’ interests with shareholders’ interests, the Directors are
encouraged to hold shares in the Company.
The Company’s aim is to remunerate at a level that will attract and retain high-calibre directors and
employees. Company Directors and officers are remunerated to a level consistent with the size of the
Company.
The executive Directors and full time executives receive a superannuation guarantee contribution required
by the government, which is currently 9.5%, and do not receive any other retirement benefits. Some
individuals, however, may choose to sacrifice part of their salary to increase payments towards
superannuation.
All remuneration paid to Directors and executives is valued at the cost to the Company and expensed.
The Board believes that it has implemented suitable practices and procedures that are appropriate for an
organisation of this size and maturity.
The Company did not pay any performance-based component of remuneration during the year.
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Australian Vanadium Limited 2017 Annual Report
Remuneration Structure
In accordance with best practice corporate governance, the structure of non-executive director and
executive compensation is separate and distinct.
Non-executive Director Compensation
Objective
The Board seeks to set aggregate compensation at a level that provides the company with the ability to
attract and retain directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
Structure
The Constitution and the ASX Listing Rules specify that the aggregate compensation of non-executive
directors shall be determined from time to time by a general meeting. An amount not exceeding the
amount determined is then divided between the Directors as agreed. The latest determination approved
by shareholders was an aggregate compensation of $500,000 per year.
The amount of aggregate compensation sought to be approved by shareholders and the manner in which
it is apportioned amongst Directors is reviewed annually. The Board considers advice from external
consultants as well as the fees paid to non-executive directors of comparable companies when undertaking
the annual review process. Non-Executive Directors’ remuneration may include an incentive portion
consisting of options, as considered appropriate by the Board, which may be subject to Shareholder
approval in accordance with ASX Listing Rules.
Separate from their duties as Directors, the Non-Executive Directors may undertake work for the Company
directly related to the evaluation and implementation of various business opportunities, including mineral
exploration/evaluation and new business ventures, for which they receive a daily rate. These payments are
made pursuant to individual agreement with the non-executive Directors and are not taken into account
when determining their aggregate remuneration levels.
Executive Compensation
Objective
The entity aims to reward executives with a level and mix of compensation commensurate with their
position and responsibilities within the entity so as to:
•
reward executives for company and individual performance against targets set by appropriate
benchmarks;
• align the interests of executives with those of shareholders;
•
• ensure total compensation is competitive by market standards.
link rewards with the strategic goals and performance of the company; and
Structure
In determining the level and make-up of executive remuneration, the Board negotiates a remuneration to
reflect the market salary for a position and individual of comparable responsibility and experience. Due to
the limited size of the Company and of its operations and financial affairs, the use of a separate
remuneration committee is not considered appropriate. Remuneration is regularly compared with the
external market by participation in industry salary surveys and during recruitment activities generally. If
required, the Board may engage an external consultant to provide independent advice in the form of a
written report detailing market levels of remuneration for comparable executive roles.
16
Australian Vanadium Limited 2017 Annual Report
Remuneration consists of a fixed remuneration and a long term incentive portion as considered appropriate.
Compensation may consist of the following key elements:
• Fixed Compensation;
• Variable Compensation;
• Short Term Incentive (STI); and
•
Long Term Incentive (LTI).
Fixed Remuneration
The level of fixed remuneration is set so as to provide a base level of remuneration which is both
appropriate to the position and is competitive in the market. Fixed remuneration is reviewed annually by
the Board having regard to the Company and individual performance, relevant comparable remuneration
in the mining exploration sector and external advice.
The fixed remuneration is a base salary or monthly consulting fee.
Variable Pay - Long Term Incentives
The objective of long term incentives is to reward Directors/executives in a manner which aligns this
element of remuneration with the creation of shareholder wealth. The incentive portion is payable based
upon attainment of objectives related to the director’s/executive’s job responsibilities. The objectives vary,
but all are targeted to relate directly to the Company’s business and financial performance and thus to
shareholder value.
Long term incentives (LTIs) granted to Directors and executives are delivered in the form of options or
performance rights. LTI grants to executives are delivered in the form of employee share options or
performance rights. Options are issued at an exercise price determined by the Board at the time of issue.
The employee share options generally vest over a selected period.
The objective of the granting of options or rights is to reward executives in a manner which aligns the
element of remuneration with the creation of shareholder wealth. As such LTI’s are made to executives
who are able to influence the generation of shareholder wealth and thus have an impact on the Company’s
performance.
The level of LTI granted is, in turn, dependent on the Company’s recent share price performance, the
seniority of the executive, and the responsibilities the executive assumes in the Company.
Typically, the grant of LTIs occurs at the commencement of employment or in the event that the individual
receives a promotion and, as such, is not subsequently affected by the individual’s performance over time.
Employment contracts of directors and senior executives
The employment arrangements of the non-executive chairman and executive directors are not formalised
in a contract of employment.
Remuneration and other terms of employment for the Chief Executive Officer / Managing Director are
formalised in an employment contract. Major provisions are set out below.
Vincent Algar, Managing Director:
•
• Notice period required to be given by the Company or employee for termination of one month, except
Annual base salary of $225,000 plus superannuation
in the case of gross misconduct
•
•
Payment of termination benefit on termination by either party equal to the amount in lieu of the notice
period
10,000,000 performance rights (granted on 29 May 2015) that will each convert into one ordinary share
upon the satisfaction of the following milestones:
17
Australian Vanadium Limited 2017 Annual Report
In respect to 5,000,000 performance rights (subsequently converted to ordinary shares on 19 August
2016):
(i) upon the Company releasing a Mineral Resource Statement containing a 2012 JORC Code
Compliant Resource; and
(ii) the Company’s shares trading at a volume weighted average market price of greater than 1.9
cents per share calculated over 20 consecutive trading days on which the Company’s shares have
actually traded; and
In respect to 5,000,000 performance rights:
(i) upon the Company releasing a Mineral Resource Statement containing a 2012 JORC Code
Compliant Resource that includes Resources in the Measured Category; and
(ii) the Company’s shares trading at a volume weighted average market price of greater than 3.0
cents per share calculated over 20 consecutive trading days on which the Company’s shares have
actually traded.
The performance rights expire on 2 February 2020 and contain standard terms and conditions relevant
to lapse of entitlement or right to conversion on cessation of employment.
Compensation options granted to Key Management Personnel
No options were granted to Directors or executives during the year ended 30 June 2017.
Shares issued to Key Management Personnel on exercise of compensation
options
No shares were issued to Directors or executives on exercise of compensation options during the year.
Compensation options lapsed during the year
No options previously issued to Key Management Personnel lapsed during the year.
18
Australian Vanadium Limited 2017 Annual Report
Details of remuneration for year
Details of the remuneration of Directors and specified executives of Australian Vanadium Limited are
set out in the following table. There are no other employees who are required to have their
remuneration disclosed in accordance with the Corporations Act 2001.
Short Term
Benefits
Post
Share Based
Employment Payments
Salary &
Fees
Super-
annuation
Options &
Rights
Total
Directors
Vincent Algar1
(appointed 29 April 2016)
Leslie Ingraham2
Brenton Lewis3
Daniel Harris
(Appointed 1 February 2017)
Brian Davis
(resigned 29 April 2016)
Total Directors
Year
2017
2016
-
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
Executives
Vincent Algar1
2017
(Remun as Chief Exec Officer to 29 April 2016) 2016
2017
Total
2016
Key Management Personnel
$
225,000
37,500
183,960
182,630
52,000
39,108
12,424
-
-
43,330
473,384
302,568
-
187,038
473,384
489,606
$
21,375
3,563
-
-
4,940
3,715
-
-
-
-
26,315
7,278
-
17,768
26,315
25,046
$
95,000
-
$
341,375
41,063
95,000
-
38,000
-
-
-
-
-
228,000
-
-
-
228,000
-
278,960
182,630
94,940
42,823
12,424
-
-
43,330
727,699
309,846
-
204,806
727,699
514,652
Performance
Based
Remuneration
%
28%
-
34%
-
40%
-
-
-
-
31%
-
-
-
31%
-
1 Mr Algar was granted 10,000,000 performance rights on 29 May 2015, which may convert into ordinary shares
upon the satisfaction of operating milestones. On 19 August 2016, Mr Algar converted 5,000,000 performance
rights into ordinary shares following the satisfaction of operating milestones. Refer to his employment contract
details in this Remuneration Report for further information.
2 Mr Ingraham was granted 10,000,000 performance rights on 20 November 2015, which may convert into ordinary
shares upon the satisfaction of operating milestones. On 19 August 2016, Mr Ingraham converted 5,000,000
performance rights into ordinary shares following the satisfaction of operating milestones.
3 Mr Lewis was granted 4,000,000 performance rights on 20 November 2015, which may convert into ordinary
shares upon the satisfaction of operating milestones. On 19 August 2016, Mr Lewis converted 2,000,000
performance rights into ordinary shares following the satisfaction of operating milestones.
No other performance-related payments were made during the year. Performance hurdles are not attached
to remuneration options if issued, however the Board determines appropriate vesting periods to provide
rewards over a period of time to Key Management Personnel.
19
Australian Vanadium Limited 2017 Annual Report
Share holdings of Key Management Personnel
Balance Received as Options Acquired/
1 July
Exercised (Disposed)
2016
Remun-
eration
Net
Change/
Other
Balance
30 June
2017
571,129
20,478,774
5,778,600
-
Directors
Vincent Algar1
-
Leslie Ingraham2
-
Brenton Lewis3
-
Daniel Harris
-
1 Mr Algar holds 5,000,000 performance rights (2016: 10,000,000) which may convert into ordinary shares upon the
satisfaction of operating milestones. On 19 August 2016, Mr Algar converted 5,000,000 performance rights into
ordinary shares following the satisfaction of operating milestones. Refer to his employment contract details in this
Remuneration Report for further information.
5,000,000
5,571,129
5,000,000 25,478,774
8,778,600
2,000,000
-
-
-
-
1,000,000
-
-
-
-
-
2 Mr Ingraham holds 5,000,000 performance rights (2016: 10,000,000) which may convert into ordinary shares upon
the satisfaction of operating milestones. On 19 August 2016, Mr Ingraham converted 5,000,000 performance rights
into ordinary shares following the satisfaction of operating milestones.
5Mr Lewis holds 2,000,000 performance rights (2016: 4,000,000) which may convert into ordinary shares upon the
satisfaction of operating milestones. On 19 August 2016, Mr Lewis converted 2,000,000 performance rights into
ordinary shares following the satisfaction of operating milestones.
3
Option holdings of Key Management Personnel
Balance Granted as Options
Remun-
1 July
eration
2016
Options
Exercised Expired /
Cancelled
Net
Change/
Other
Balance
Number
30 June vested and
2017 exercisable
Directors
Vincent Algar
Leslie Ingraham
Brenton Lewis
Daniel Harris
692,307
10,000,000
1,250,000
-
-
-
-
-
-
-
-
-
-
-
-
-
692,307
-
1,444,650
-
692,307
692,307
10,000,000 10,000,000
2,694,650 2,694,650
-
-
All equity transactions with Key Management Personnel have been entered into under terms and
conditions no more favourable than those the Group would have adopted if dealing at arm’s length.
Loans and other transactions with Key Management Personnel
There were no loans to or from, or other transactions with, key management personnel.
SHARE OPTIONS
At the date of this report options were outstanding for the following unissued ordinary shares:
• 141,960,353 unlisted options expiring 31 December 2017 at an exercise price of 1.4712 cents each
• 310,884,557 listed options expiring 31 December 2018 at an exercise price of 2.0 cents each
No person entitled to exercise these options had or has any right, by virtue of the option, to participate in
any share issue of any other body corporate.
20
Australian Vanadium Limited 2017 Annual Report
AUDITOR
Armada Audit & Assurance Pty Ltd continues in office in accordance with Section 327 of the Corporations
Act 2001.
NON-AUDIT SERVICES
No non-audit services were provided by our auditors, Armada Audit & Assurance Pty Ltd during the year.
AUDITOR’S DECLARATION OF INDEPENDENCE
The auditor’s independence declaration for the year ended 30 June 2017, as required under section 307C
of the Corporations Act 2001, has been received and is included within the financial report.
Signed in accordance with a resolution of Directors.
Brenton Lewis
Chairman
29 September 2017
21
Australian Vanadium Limited 2017 Annual Report
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
For the year ended 30 June 2017
Revenue
Exploration and evaluation expenditure
Impairment of exploration and evaluation
Depreciation
Directors’ fees and benefits expenses
Other expenses
Loss before income tax expense
Income tax expense
Net loss for year
Other comprehensive income
Consolidated
2017
$
2016
$
Note
2(a)
183,108
290,005
(42,191)
(45,828)
-
(10,514)
(40,337)
(3,371)
(727,699)
(309,846)
2(b)
(1,450,424)
(1,205,546)
(2,077,633)
(1,285,100)
3
-
-
(2,077,633)
(1,285,100)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive loss attributable to members of
Australian Vanadium Limited
(2,077,633)
(1,285,100)
Basic / diluted earnings per share
5
Cents
(0.18)
Cents
(0.16)
The accompanying notes form part of these financial statements.
22
Australian Vanadium Limited 2017 Annual Report
Statement of Financial Position
As at 30 June 2017
ASSETS
Current Assets
Cash and cash equivalent
Trade and other receivables
Total Current Assets
Non-Current Assets
Plant and equipment
Exploration and evaluation expenditure
Investments
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated Losses
TOTAL EQUITY
The accompanying notes form part of these financial statements.
Consolidated
2017
$
2016
$
Note
6
7
8
9
10
11
12
1,524,171
3,196,659
80,612
180,151
1,604,783
3,376,810
304,271
11,749
15,422,575
14,498,230
1,809,171
-
17,536,017
14,509,979
19,140,800
17,886,789
187,139
214,099
31,182
11,638
218,320
225,737
218,320
225,737
18,922,480
17,661,052
13
67,960,815
64,621,753
-
-
(49,038,335)
(46,960,701)
18,922,480
17,661,052
23
-
-
-
-
-
-
(1,285,100)
(1,285,100)
10,000
52,826
3,066,500
(214,049)
Australian Vanadium Limited 2017 Annual Report
Statement of Changes in Equity
For the year ended 30 June 2017
Consolidated
Issued
Capital
$
Accumulated
Losses
$
Other
Reserves
$
Total
$
Balance as at 1 July 2015
61,706,476
(68,219,908)
22,544,306
16,030,874
Loss for the year
Total comprehensive loss for the year
-
-
(1,285,100)
(1,285,100)
Shares issued as consideration
Shares issued on conversion of options
10,000
52,826
Securities issued pursuant to a Rights Issue
3,066,500
Capital raising costs
Reclassification of Reserve
(214,049)
-
-
-
-
-
22,544,306
(22,544,306)
-
Balance as at 30 June 2016
64,621,753
(46,960,702)
Loss for the year
Total comprehensive loss for the year
-
-
(2,077,633)
(2,077,633)
Shares issued as consideration
1,388,000
Shares issued on conversion of options
1,697,259
Securities issued on conversion of
Performance Rights
Capital raising costs
285,000
(31,197)
-
-
-
-
Balance as at 30 June 2017
67,960,815
(49,038,335)
The accompanying notes form part of these financial statements.
-
-
-
-
-
-
-
-
17,661,051
(2,077,633)
(2,077,633)
1,388,000
1,697,259
285,000
(31,197)
18,922,480
24
Australian Vanadium Limited 2017 Annual Report
Statement of Cash Flows
For the year ended 30 June 2017
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Net receipts from other entities
Expenditure on mining interests
Consolidated
2017
$
2016
$
Note
(1,984,454)
(1,418,986)
58,487
22,521
264
411,160
(42,843)
(48,628)
Net cash provided by / (used) in operating activities
6(a)
(1,968,546)
(1,033,933)
Cash flows from investing activities
Expenditure on mining interests
Payment for Investments
Payment for property plant & equipment
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payment of capital raising costs
Net cash provided by financing activities
(764,270)
(396,158)
(361,171)
-
(226,297)
(109,867)
(1,351,738)
(506,025)
1,697,259
3,119,327
(49,463)
(195,784)
1,647,796
2,923,543
Net increase in cash held
(1,672,488)
1,383,585
Cash at beginning of the financial year
Cash at end of financial year
3,196,659
1,813,074
1,524,171
3,196,659
The accompanying notes form part of these financial statements.
25
Australian Vanadium Limited 2017 Annual Report
Notes to the Financial Statements
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These consolidated financial statements and notes represent those of Australian Vanadium Limited (the
“Company”) and Controlled Entities (the “Consolidated Entity” or “Group”) for the year ended 30 June
2017.
Australian Vanadium Limited is a company limited by shares incorporated in Australia whose shares are
publicly traded on the Australian Securities Exchange. The Company is domiciled in Western Australia. The
nature of operations and principal activities of the Group are described in the Directors' Report.
1(a) Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in accordance
with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001.
The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards.
The financial statements have been prepared on an accruals basis and are based on historical costs
modified, where applicable, by the measurement at fair value of selected non-current assets, financial
assets and financial liabilities. Material accounting policies adopted in preparation of these financial
statements are presented below and have been consistently applied unless otherwise stated.
The Group’s financial statements are presented in Australian dollars.
1(b) Adoption of new and revised standards
In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued
by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective
for the current annual reporting period. The adoption of these new and revised Standards and
Interpretations has not resulted in a significant or material change to the Group’s accounting policies.
The Group has also reviewed all new Standards and Interpretations that have been issued but are not yet
effective for the year ended 30 June 2017. As a result of this review the Directors have determined that
there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its
business and, therefore, no change necessary to Group accounting policies.
1(c)
Statement of Compliance
The financial report was authorised for issue on 29 September 2017.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in
a financial report containing relevant and reliable information about transactions, events and conditions.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also
comply with International Financial Reporting Standards (IFRS).
1(d) Basis of consolidation
The consolidated financial statements comprise the financial statements of Australian Vanadium Limited
(“Company” or “Parent Entity”) and its subsidiaries as at 30 June each year (“Consolidated” or “Group”).
Subsidiaries are all entities over which the Group has control. The Group controls an entity when it 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 to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease
to be consolidated from the date on which control is transferred out of the Group. Investments in
subsidiaries are accounted for at cost in the individual financial statements of Australian Vanadium
Limited.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent
company, using consistent accounting policies.
26
Australian Vanadium Limited 2017 Annual Report
In preparing the consolidated financial statements, all intercompany balances and transactions, income
and expenses and profit and losses resulting from intra-group transactions have been eliminated in full.
1(e) Revenue and other income
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group
and the revenue can be reliably measured. The following specific recognition criteria must also be met
before the revenue is recognised.
Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.
1(f) Cash and cash equivalents
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes
in value.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash
equivalents as described above, net of outstanding bank overdrafts.
1(g) Trade and other receivables
Trade receivables, which generally have 30-90 day terms, are recognised and carried at original invoice
amount less an allowance for any uncollectible amounts. An allowance for doubtful debts is made when
there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off
when identified.
1(h)
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 the reporting date.
Deferred income tax is provided on all temporary differences at the 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:
• 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.
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:
• 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.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised.
27
Australian Vanadium Limited 2017 Annual Report
Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be
recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the
year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in 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.
The amount of benefits brought to account or which may be realised in the future is based on the
assumption that no adverse change will occur in income legislation and the anticipation that the Group
will derive sufficient future assessable income to enable the benefit to be realised and comply with the
conditions of deductibility imposed by the law.
1(i)
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part
of the expense item as applicable; and
•
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash
flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation
authority are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the taxation authority.
1(j)
Financial assets
Financial assets within the scope of AASB 139 Financial Instruments: Recognition and Measurement are
classified as either financial assets at fair value through profit or loss, loans and receivables, held-to-
maturity investments, or available-for-sale investments, as appropriate. When financial assets are
recognised initially, they are measured at fair value, plus, in the case of investments not at fair value
through profit or loss are directly attributable as transactions costs. The Group determines the
classification of its financial assets after initial recognition and, when allowed and appropriate, re-
evaluates this designation at each financial year-end.
All regular purchases and sales of financial assets are recognised on the trade date i.e. the date that the
Group commits to purchase the asset. Regular purchases or sales are purchases or sales of financial assets
under contracts that require delivery of the assets within the period established generally by regulation
or convention in the marketplace.
(i) Financial assets at fair value through profit or loss
Financial assets classified as held for trading are included in the category ‘financial assets at fair value
through profit or loss’. Financial assets are classified as held for trading if they are acquired for the purpose
of selling in the near term. Derivatives are also classified as held for trading unless they are designated as
effective hedging instruments. Gains or losses on investments held for trading are recognised in the
statement of profit or loss and other comprehensive income.
28
Australian Vanadium Limited 2017 Annual Report
(ii)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market. Such assets are carried at amortised cost using the effective interest
method. Gains and losses are recognised in the statement of profit or loss and other comprehensive
income when the loans and receivables are derecognised or impaired, as well as through the amortisation
process.
(iii) Available-for-sale investments
Available-for-sale investments are those non-derivative financial assets that are designated as available-
for-sale or are not classified as any of the three preceding categories. After initial recognition, available-
for sale investments are measured at fair value with gains or losses being recognised as a separate
component of equity until the investment is derecognised or until the investment is determined to be
impaired, at which time the cumulative gain or loss previously reported in equity is recognised in profit or
loss.
The fair value of investments that are actively traded in organised financial markets is determined by
reference to quoted market bid prices at the close of business on the reporting date. For investments with
no active market, fair value is determined using valuation techniques. Such techniques include using
recent arm’s length market transactions; reference to the current market value of another instrument
that is substantially the same; discounted cash flow analysis and option pricing models.
1(k)
Exploration and evaluation expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are
satisfied:
(i)
the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
(a)
(b)
the exploration and evaluation expenditures are expected to be recouped through successful
development and exploitation of the area of interest, or alternatively, by its sale; or
exploration and evaluation activities in the area have not, at the reporting date, reached a
stage which permits a reasonable assessment of the existence, or otherwise, of economically
recoverable reserves and active and significant operations in, or relation to, the area of interest
are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching and sampling and associated activities and an allocation of
depreciation and amortisation of assets used in exploration and evaluation activities. General and
administrative costs are only included in the measurement of exploration and evaluation costs where they
are related directly to operational activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that
the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The
recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it
has been allocated being no larger than the relevant area of interest) is estimated to determine the extent
of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of
the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the
increased carrying amount does not exceed the carrying amount that would have been determined had
no impairment loss been recognised for the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest,
the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified
to development.
29
Australian Vanadium Limited 2017 Annual Report
1(l)
Impairment of assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
If any such indication exists, or when annual impairment testing for an asset is required, the Group makes
an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value
less costs to sell and its value in use and is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or groups of assets and the
asset’s value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for
impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset
or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered
impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. Impairment losses relating to continuing operations are recognised in those expense
categories consistent with the function of the impaired asset unless the asset is carried at a revalued
amount (in which case the impairment loss is treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the
recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has
been a change in the estimates used to determine the asset’s recoverable amount since the last
impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its
recoverable amount. That increased amount cannot exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.
Such reversal is recognised in profit or loss unless the asset is carried at a revalued amount, in which case
the reversal is treated as a revaluation increase. After such a reversal, the depreciation charge is adjusted
in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic
basis over its remaining useful life.
1(m) Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when the
Group becomes obliged to make future payments in respect of the purchase of these goods and services.
1(n)
Share-based payment transactions
The Group may provide benefits to employees (including senior executives) of the Group in the form of
share-based payments, whereby employees render services in exchange for shares or rights over shares
(equity-settled transactions).
When provided, the cost of these equity-settled transactions with employees is measured by reference
to the fair value of the equity instruments at the date at which they are granted. The fair value is
determined by an external valuer using a Black-Scholes model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of Australian Vanadium Limited (market conditions) if
applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity,
over the period in which the performance and/or service conditions are fulfilled, ending on the date on
which the relevant employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting
date reflects (i) the extent to which the vesting period has expired, and
(ii)
the Group’s best estimate of the number of equity instruments that will ultimately vest.
30
Australian Vanadium Limited 2017 Annual Report
No adjustment is made for the likelihood of market performance conditions being met as the effect of
these conditions is included in the determination of fair value at grant date. The amount charged or
credited to the statement of profit or loss and other comprehensive income for a period represents the
movement in cumulative expense recognised as at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only
conditional upon a market condition.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the
terms had not been modified. In addition, an expense is recognised for any modification that increases
the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee,
as measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. However, if a new award is
substituted for the cancelled award and designated as a replacement award on the date that it is granted,
the cancelled and new award are treated as if they were a modification of the original award, as described
in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the
computation of earnings per share.
1(o)
Issued capital
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.
1(p)
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 Board of Directors of
the Company. The Group operates in two segments, being mineral exploration within Australia and the
sale of VRB systems.
1(q)
Earnings per share
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to
exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by
the weighted average number of ordinary shares, adjusted for any bonus element.
costs of servicing equity (other than dividends) and preference share dividends;
Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for:
•
•
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that
have been recognised as expenses; and
•
other non-discretionary changes in revenues or expenses during the period that would result from
the dilution of potential ordinary shares; divided by the weighted average number of ordinary shares
and dilutive potential ordinary shares, adjusted for any bonus element.
1(r)
Investments in associates
An associate is an entity over which the consolidated entity has significant influence. Significant influence
is the power to participate in the financial and operating policy decisions of the investee, but is not control
or joint control over those policies.
31
Australian Vanadium Limited 2017 Annual Report
Investments in associates are accounted for in the parent entity using the cost method and in the
consolidated entity using the equity method of accounting. Under the equity method, the investment in
an associate is initially recorded at cost. The carrying amount of the investment is adjusted to recognise
changes in the consolidated entity's share of net assets of the associate since the acquisition date. The
consolidated entity’s share of post-acquisition profits or losses is recognised in the statement of profit or
loss and its share of post-acquisition movements in other comprehensive income is presented as part of
the consolidated entity's other comprehensive income.
Unrealised gains or transactions between the Group and its associates are eliminated to the extent of the
Group’s interests in the associates. Unrealised losses are also eliminated unless the transaction provides
evidence of an impairment of the asset transferred. Accounting policies of associates have been changed
where necessary to ensure consistency with the policies adopted by the Group.
1(s) Plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment
losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Plant and equipment
Motor vehicles
-
-
5 to 10 years
8 years
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if
appropriate, at each financial year end.
(i)
Impairment
The carrying values of property, plant and equipment are reviewed for impairment at each reporting date,
with recoverable amount being estimated when events or changes in circumstances indicate that the
carrying value may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset.
For an asset that does not generate largely independent cash inflows, recoverable amount is determined
for the cash-generating unit to which the asset belongs, unless the asset’s value in use can be estimated
to be close to its fair value.
An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount.
Impairment losses are recognised in the statement of profit or loss and other comprehensive income.
(ii)
Derecognition and disposal
An item of plant and equipment is derecognised upon disposal or when no further future economic
benefits are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss and
other comprehensive income in the year the asset is derecognised.
1(t)
Significant Accounting Estimates and Judgments
Significant accounting judgments
In the process of applying the Group’s accounting policies, management has made the following
judgments, apart from those involving estimations, which have the most significant effect on the amounts
recognised in the financial statements.
32
Australian Vanadium Limited 2017 Annual Report
Exploration and evaluation assets
The Group’s accounting policy for exploration and evaluation expenditure is set out at Note 1(l). The
application of this policy necessarily requires management to make certain estimates and assumptions as
to future events and circumstances. Any such estimates and assumptions may change as new information
becomes available. If, after having capitalised expenditure under the policy, it is concluded that the
expenditures are unlikely to be recovered by future exploitation or sale, then the relevant capitalised
amount will be written off to the statement profit or loss and other comprehensive income.
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and
assumptions of future events. The key estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of certain assets and liabilities within the next annual
reporting period are:
(i)
Impairment of assets
In determining the recoverable amounts of assets, in the absence of quoted market prices, estimations
are made regarding the present value of future cash flows using asset-specific discount rates and the
recoverable amount of the asset is determined. Value-in-use calculations performed in assessing
recoverable amounts incorporate a number of key estimates.
(ii) Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined from market
value.
33
Australian Vanadium Limited 2017 Annual Report
2.
REVENUE AND EXPENSES
2(a) Revenue
Interest received
Gain/(loss) on Asset Sale
Lease Income
R & D concession
2(b) Other Expenses
Salaries and wages
Superannuation
Stock Exchange and registry fees
Rent and office facility expenses
Legal fees
Auditor’s fees
Travel and accommodation
Other corporate and administration expenses
3.
INCOME TAX
3(a)
Income tax expense
Consolidated
2017
$
2016
$
55,205
127,122
690
-
183,018
27,855
-
-
262,150
290,005
283,036
295,840
19,617
78,379
103,137
33,964
15,500
138,292
778,499
28,393
63,783
79,818
26,285
13,500
79,369
618,558
1,450,424
1,205,546
The income tax expense for the year differs from the prima facie tax as follows:
Loss for the year
Prima facie income tax (benefit) @ 30% (2016: 30%)
Tax effect of non-deductible items
Deferred tax assets not brought to account
Total income tax expense
3(b)
Deferred tax assets
(2,077,633)
(1,285,100)
(623,290)
(385,530)
56,228
12,372
567,062
373,158
-
-
Deferred tax assets not brought to account arising from tax losses, the
benefits of which will only be realised if the conditions for deductibility
set out in Note 1(h) occur:
2,415,670
1,848,608
AUDITORS’ REMUNERATION
4.
Amounts, paid or due and payable to Armada Audit & Assurance Pty Ltd for:
- audit or review services
34
15,500
15,500
13,500
13,500
Australian Vanadium Limited 2017 Annual Report
5.
EARNINGS PER SHARE
Basic earnings per share
The earnings and weighted average number of ordinary shares used
in the calculation of basic earnings per share is as follows:
Net loss for the year
Consolidated
2017
$
2016
$
Cents
(0.18)
Cents
(0.16)
(2,077,633)
(1,285,100)
No.
No.
Weighted average number of ordinary shares used in the calculation of
basic EPS
1,140,007,472
807,803,189
6.
CASH AND CASH EQUIVALENTS
Cash at bank
Short term deposits
156,120
1,196,659
1,368,051
2,000,000
1,524,171
3,196,659
Cash at bank earns interest at floating rates based on daily deposit rates.
Cash and cash equivalents for the purpose of the statement of cash flows are comprised of cash at bank
and short term deposits.
6(a) Reconciliation of loss for the year to net cash flows from operating activities:
Loss for the year
Non-cash flows in profit/loss
Depreciation
Impairment of exploration and evaluation
Gain/(Loss on Sale of Asset
Share based payments
Changes in operating assets and liabilities
(Increase)/decrease in trade and other receivables
Increase/(decrease) in trade and other payables
Increase/(decrease) in provisions
Net cash flows from operating activities
(2,077,633)
(1,285,100)
40,337
-
(127,122)
3,371
10,514
-
285,000
10,000
(10,328)
(98,342)
19,544
138,615
77,029
11,638
(1,968,546)
(1,033,933)
6(b)
Non-cash financing and investing activities
In the year the following non-cash financing and investing activities occurred:
(i)
(ii)
In November 2016, an option to acquire 100% of South African Lithium Pty Ltd was announced.
Non-cash payments consisted of:
a.
b.
Option Fee of 7,000,000 shares – issued 15 November 2016, and
Consideration upon exercise of 70,000,000 shares, 40,000,000 Class A Performance
Rights and 40,000,000 Class B Performance Rights – issued 20 December 2016.
In March 2017, the Company acquired two exploration licences for a consideration of $100,000,
payable in shares. 6,250,000 shares were issued as consideration on 16 March 2017.
35
Australian Vanadium Limited 2017 Annual Report
7.
TRADE AND OTHER RECEIVABLES
Current
GST receivable
Other receivables
Partly Paid Share Receivable
Consolidated
2017
$
2016
$
36,921
43,691
-
43,802
136,349
-
80,612
180,151
Other receivables are non-interest bearing and generally repayable within 12 months. Due to the short term
nature of these receivables, their carrying value is assumed to approximate their fair value.
8.
PLANT & EQUIPMENT
PIant and Equipment
At cost
Accumulated depreciation
Motor Vehicles
At cost
Accumulated depreciation
Total
At cost
Accumulated depreciation
338,857
(48,495)
290,362
17,999
(11,185)
6,814
27,000
15,000
(13,091)
(10,065)
13,909
4,935
365,857
(61,586)
304,271
32,999
(21,250)
11,749
8(a) Movements in carrying amounts
Movements in the carrying amounts for each class of plant and equipment during the financial year:
Balance at 1 July 2015
Additions
Depreciation expense
Balance at 30 June 2016
Additions
Depreciation expense
Balance at 30 June 2017
36
Plant &
Motor
Equipment
Vehicles
Total
8,752
6,368
15,120
-
-
-
(1,938)
(1,433)
(3,371)
6,814
4,935
11,749
320,858
12,000
332,858
(37,310)
(3,026)
(40,336)
290,362
13,909
304,271
Australian Vanadium Limited 2017 Annual Report
9.
DEFERRED EXPLORATION EXPENDITURE
Expenditure brought forward
Less expenditure recouped on sale of asset
Expenditure incurred during the year
Impairment during the year
Expenditure carried forward
Consolidated
2017
$
2016
$
14,498,230
14,170,808
(32,878)
957,223
-
-
337,936
(10,514)
15,422,575
14,498,230
The expenditure above relates principally to the exploration and evaluation phase. The ultimate recoupment
of this expenditure is dependent upon the successful development and commercial exploration, or
alternatively, sale of the respective areas of interest, at amounts at least equal to the carrying value.
10. INVESTMENTS IN ASSOCIATES
Investments in associates at cost
Allowance for impairment
Investment in associate at fair value
Interest is held in the following associated companies:
Name
Principal Country of
Activities Incorporation Shares
4,359,171
2,550,000
(2,550,000)
(2,550,000)
1,809,171
-
Ownership Interest
2017
%
2016
%
Carrying amount of
investment
2017
$
2016
$
Exploration Australia
Exploration South Africa
Unlisted:
Apogei Pty Ltd
South African
Lithium Pty Ltd
Southern African Exploration South Africa
Lithium and
Tantalum Pty Ltd
Bryah Resources Exploration Australia
Limited
Ordinary
Ordinary
Ordinary
20
100
5
Ordinary
7.14
20
-
-
-
-
1,288,000
361,171
160,000
-
-
-
-
10(a) Equity accounted losses of associate are as follows:
Share of associates' loss before income tax
-
-
Share of associates' income tax
-
-
Share of associates' loss after income tax
-
-
11. TRADE AND OTHER PAYABLES
Current
Trade payables and accruals
187,139
187,139
214,099
214,099
Trade creditors are non-interest bearing and are normally settled on 30 day terms. Due to the short term
nature of trade payables and accruals, their carrying value is assumed to approximate their fair value.
37
Australian Vanadium Limited 2017 Annual Report
12. PROVISIONS
Current
Employee entitlements
13. ISSUED CAPITAL AND RESERVES
13(a)
Issued and paid up capital
Ordinary shares - fully paid
Ordinary shares - partly paid
Share issue costs written off against issued capital
Consolidated
2017
$
2016
$
31,182
31,182
11,638
11,638
68,678,931
65,308,672
8,000
8,000
(726,116)
(694,919)
67,960,815
64,621,753
2017
Number
2017
$
2016
Number
2016
$
13(b) Movement in ordinary shares on issue
(i) Ordinary shares - fully paid
Balance at beginning of year
1,002,118,601
65,308,672
761,283,723
62,179,345
Issue of ordinary shares
on conversion of options
Issue of ordinary shares via
Entitlement Issue
3,066,500
Issue of ordinary shares in lieu of
cash consideration
Issue of ordinary shares on conversion
of performance rights
115,365,615
1,697,259
3,521,750
52,826
-
-
235,884,557
83,250,000
1,388,000
1,428,571
10,000
15,000,000
285,000
-
-
Balance at end of year
1,215,734,216
68,678,931
1,002,118,601
65,308,672
(ii) Ordinary shares - partly paid ($0.0389 unpaid)
Balance at beginning of year
80,000,000
8,000
80,000,000
8,000
Issue of partly paid ordinary shares
Call on partly paid shares cancelled
-
-
-
-
-
-
-
-
Balance at end of year
80,000,000
8,000
80,000,000
8,000
Total issued shares
1,295,734,216
68,686,931
1,082,118,601
65,316,672
38
Australian Vanadium Limited 2017 Annual Report
Consolidated
2017
$
2016
$
13(c) Terms and conditions of issued capital
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company,
to participate in proceeds from the sale of all surplus assets in proportion to the number of and amounts
paid up on shares held.
Fully paid ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the
Company. Options and partly paid ordinary shares do not entitle their holder to any voting rights.
13(d) Share Options
141,960,353 unlisted options expiring 31 December 2017 at an exercise price of 1.4712 cents each
At 30 June 2017, the following options over unissued ordinary shares were outstanding:
•
•
13(e) Performance Rights
235,884,557 listed options expiring 31 December 2018 at an exercise price of 2.0 cents each
At 30 June 2017, the following performance rights were outstanding:
•
15,000,000 performance rights which will each convert into one ordinary share on achievement of
certain operating and share price milestones, expiring 2 February 2020,
•
•
40,000,000 Class A performance rights expiring 19 June 2018, and
40,000,000 Class B performance rights expiring 19 December 2019.
13(f)
Share-based payment reserve
The share-based payments reserve is used to recognise the fair value of options issued.
14. COMMITMENTS
14 (a) Exploration Commitments
The Group has certain obligations to perform minimum exploration work and to expend minimum amounts
of money on such work on mining tenements. These obligations may be varied from time to time subject to
approval and are expected to be fulfilled in the normal course of the operations of the Group. These
commitments have not been provided for in the accounts. The minimum expenditure commitment on the
tenements is:
Payable
- no later than 1 year
- between 1 year and 5 years
14(b) Operating Lease Commitments
254,380
415,400
669,780
244,280
503,880
748,160
Minimum lease payments payable for non-cancellable operating leases contracted for but not recognised in
the financial statements:
Payable
- no later than 1 year
- between 1 year and 5 years
117,238
151,217
268,455
39,945
-
39,945
The non-cancellable leases are for office premises and a storage unit. The office premises rental commenced
on 1 March 2017 and ends on 28 February 2020, with rent payable monthly in advance. The storage unit
rental commenced on 1 October 2016 and ends on 30 September 2018, with rent payable monthly in advance.
39
Australian Vanadium Limited 2017 Annual Report
15. CONTINGENT LIABILITIES
It is possible that native title, as defined in the Native Title Act 1993, might exist over land in which the Group
has an interest. It is impossible at this stage to quantify the impact (if any) that the existence of native title
may have on the operations of the Group. However, at the date of this report, the Directors are aware that
applications for native title claims have been accepted by the Native Title Tribunal over Group tenements.
16. SEGMENT INFORMATION
AASB 8 requires a ‘management approach’ under which segment information is presented on the same basis
as that used for internal reporting purposes. The Board as a whole will regularly review the identified
segments in order to allocate resources to the segment and to assess its performance.
The Group has identified two operating segments for 2017 being:
1.
2.
Exploration – consisting of the Gabanintha Vanadium Project and other exploration projects, and
Energy storage – VSUN Energy Pty Limited’s vanadium redox flow battery marketing and sales activities.
Segment revenues, assets and liabilities are those that are directly attributable to a segment and the relevant
portion that can be allocated to the segment on a reasonable basis. Segment assets include all assets used
by a segment and primarily consist of plant and equipment and project tenements. Segment Liabilities consist
primarily of trade and other creditors and employee benefits.
The following tables present revenue, expenditure and asset information regarding operating segments
for the year ended 30 June 2017.
Sales to External Customers
Other Revenue
Total Segment Revenue
Total Segment Results
Total Segment Assets
Total Segment Liabilities
Impairment of Assets
Depreciation and Amortisation
Interest Income
Exploration
$
-
127,122
127,122
Energy Storage Unallocated Consolidated
$
690
-
690
$
$
-
690
55,205
55,205
182,327
183,018
(227,708)
(305,707)
(1,544,218)
(2,077,633)
17,231,746
179,480
1,729,574
19,140,800
25,462
-
-
-
832
-
192,026
218,320
-
-
(19,705)
(20,632)
(40,337)
-
55,205
55,205
17. RELATED PARTY TRANSACTIONS
17(a) Subsidiaries
The consolidated financial statements include the financial statements of Australian Vanadium Limited and
the subsidiaries listed in the following table.
Australian Uranium Pty Ltd
Cabe Resources Ltd
VSUN Energy Pty Ltd 1
South African Lithium Pty Ltd
Country of
Incorporation
Australia
Australia
Australia
South Africa
Equity Holding
2017
%
100
100
100
100
2016
%
100
100
100
-
Principal
Activities
Mineral exploration
Mineral exploration
Energy storage
Mineral exploration
1 Formerly Australian Vanadium Resources Pty Ltd.
40
Australian Vanadium Limited 2017 Annual Report
17(b) Director-related entities
The Group engaged the following entities during the financial year for the following services on normal
commercial terms:
Nil
18. PARENT ENTITY DISCLOSURES
18(a) Summary financial information
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Financial performance
Loss for the year
Other comprehensive income
Total comprehensive loss
18(b) Guarantees
Parent
2017
$
2016
$
1,567,018
16,775,789
18,342,808
3,376,810
14,509,979
17,886,789
183,055
183,055
225,737
225,737
67,960,815
-
(46,960,701)
21,000,114
64,621,753
-
(46,960,701)
17,661,052
(1,900,500)
-
(1,900,500)
(1,285,100)
-
(1,285,100)
Australian Vanadium Limited has not entered into any guarantees.
18(c) Other Commitments and Contingencies
Australian Vanadium Limited (parent entity) has exploration commitments and operating lease commitments
as described in Note 14(a). It has no contingent liabilities other than those discussed in note 15.
19. KEY MANAGEMENT PERSONNEL DISCLOSURES
19(a) Compensation of Key Management Personnel
Refer to the remuneration report contained in the Directors’ Report for details of the remuneration paid
or payable to each member of the Group’s key management personnel.
Director and Executive Disclosures
Compensation of key management personnel
Short-term personnel benefits
Post-employment benefits
Share Based Payments
Consolidated
2017
$
2016
$
473,384
26,315
228,000
727,699
489,606
25,046
-
514,652
41
Australian Vanadium Limited 2017 Annual Report
19(b)
Loans and Other Transactions with Key Management Personnel
There were no loans to key management personnel or their related entities during the financial year. Other
transactions with key management personnel are described in Note 17(b).
20. SHARE-BASED PAYMENTS
20(a) Share-based payments expensed
A total of $285,000 was expensed as share-based payments for the period ended 30 June 2017 (30 June 2016:
nil).
20(b) Summary of options granted as share-based payments
No options were issued as share-based payments during the year ended 30 June 2017 or 30 June 2016.
20(c) Performance Rights
No Performance Rights were granted to Directors during the year ended 30 June 2017 (30 June 2016:
20,000,000).
Refer to the Remuneration Report for the terms and conditions of previously issued rights.
21. FINANCIAL RISK MANAGEMENT
The consolidated entity’s principal financial instruments comprise receivables, payables, cash and short-term
deposits. The consolidated entity manages its exposure to key financial risks in accordance with the
consolidated entity’s financial risk management policy. The objective of the policy is to support the delivery
of the consolidated entity’s financial targets while protecting future financial security.
The main risks arising from the consolidated entity’s financial instruments are interest rate risk, credit risk
and liquidity risk. The consolidated entity does not speculate in the trading of derivative instruments. The
consolidated entity uses different methods to measure and manage different types of risks to which it is
exposed. These include monitoring levels of exposure to interest rates and assessments of market forecasts
for interest rates. Ageing analysis of and monitoring of receivables are undertaken to manage credit risk,
liquidity risk is monitored through the development of future rolling cash flow forecasts.
The Board reviews and agrees policies for managing each of these risks as summarised below.
Primary responsibility for identification and control of financial risks rests with the Board. The Board reviews
and agrees policies for managing each of the risks identified below, including for interest rate risk, credit
allowances and cash flow forecast projections.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the
basis of measurement and the basis on which income and expenses are recognised, in respect of each class
of financial asset and financial liability are disclosed in note 1 to the financial statements.
21(a)
Interest rate risk
The consolidated entity’s exposure to risks of changes in market interest rates relates primarily to the
consolidated entity’s cash balances. The consolidated entity constantly analyses its interest rate exposure.
Within this analysis consideration is given to potential renewals of existing positions, alternative financing
positions and the mix of fixed and variable interest rates. As the consolidated entity has no interest-bearing
borrowings its exposure to interest rate movements is limited to the amount of interest income it can
potentially earn on surplus cash deposits. The following sensitivity analysis is based on the interest rate risk
exposures in existence at the reporting date.
42
Australian Vanadium Limited 2017 Annual Report
Consolidated
2017
$
2016
$
At the reporting date, the consolidated entity had the following financial assets exposed to variable interest
rates that are not designated in cash flow hedges:
Financial Assets
Cash and cash equivalents (interest-bearing accounts)
1,524,171
3,196,659
1,524,171
3,196,659
The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting
date.
At the reporting date, if interest rates had moved as illustrated in the table below, with all other variables
held constant, post-tax profit and equity relating to financial assets of the consolidated entity would have
been affected as follows:
Estimates of reasonably possible movements:
Post tax profit - higher / (lower)
+0.5%
-0.5%
Equity - higher / (lower)
+0.5%
-0.5%
21(b)
Liquidity Risk
21,959
(21,959)
21,959
(21,959)
9,356
(9,356)
9,356
(9,356)
The consolidated entity has no significant exposure to liquidity risk as there is effectively no debt. The
consolidated entity manages liquidity risk by monitoring immediate and forecast cash requirements and
ensuring adequate cash reserves are maintained.
21(c) Credit risk
Credit risk arises from the financial assets of the consolidated entity, which comprise deposits with banks
and trade and other receivables. The consolidated entity’s exposure to credit risk arises from potential
default of the counter party, with the maximum exposure equal to the carrying amount of these instruments.
The carrying amounts of financial assets included in the statement of financial position represents the
consolidated entity’s maximum exposure to credit risk in relation to those assets.
The consolidated entity does not hold any credit derivatives to offset its credit exposure. The consolidated
entity trades only with recognised, creditworthy third parties and as such collateral is not requested nor is it
the consolidated entity’s policy to securitise its trade and other receivables.
Receivable balances are monitored on an ongoing basis with the result that the consolidated entity does not
have a significant exposure to bad debts.
There are no significant concentrations of credit risk within the consolidated entity.
21(d) Capital Management Risk
Management controls the capital of the consolidated entity in order to maximise the return to shareholders
and ensure that the Group can fund its operations and continue as a going concern.
Management effectively manages the Group’s capital by assessing the consolidated entity’s financial risks
and adjusting its capital structure in response to changes in these risks and in the market. These responses
include the management of expenditure and debt levels and share and option issues.
43
Australian Vanadium Limited 2017 Annual Report
The consolidated entity has no external loan debt facilities other than trade payables. There have been no
changes in the strategy adopted by management to control capital of the consolidated entity since the prior
year.
21(e) Commodity Price and Foreign Currency Risk
The consolidated entity’s exposure to price and currency risk is minimal given the consolidated entity is still
in the exploration phase.
21(f)
Fair Value
The methods of estimating fair value are outlined in the relevant notes to the financial statements. All
financial assets and liabilities recognised in the statement of financial position, whether they are carried at
cost or fair value, are recognised at amounts that represent a reasonable approximation of fair values unless
otherwise stated in the applicable notes.
22. EVENTS SUBSEQUENT TO THE REPORTING DATE
No matters or circumstances have arisen since the end of the financial year which significantly affected, or
may significantly affect, the operations of the Company, the results of those operations, or the state of affairs
of the Company in subsequent financial years, other than as outlined in the Company’s review of operations
which is contained in this Annual Report.
44
Australian Vanadium Limited 2017 Annual Report
Directors’ Declaration
The Directors of the Company declare that:
1.
the financial statements and notes set out on pages 26 to 44 are in accordance with the
Corporations Act 2001 including:
a.
complying with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements, and
b.
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2017
and of the performance for the year ended on that date, and;
2.
in the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to
pay its debts as and when they become due and payable.
The Directors have been given the declarations by the Managing Director and chief financial officer
pursuant to Section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
Brenton Lewis
Chairman
29 September 2017
45
Australian Vanadium Limited 2017 Annual Report
46
Australian Vanadium Limited 2017 Annual Report
47
Australian Vanadium Limited 2017 Annual Report
48
Australian Vanadium Limited 2017 Annual Report
49
Australian Vanadium Limited 2017 Annual Report
Annual Mineral Resource Statement
1.
GABANINTHA PROJECT - MINERAL RESOURCE STATEMENT
A summary of the Mineral Resources at the Gabanintha Project as at 30 June 2017 is shown in Table 1 below.
The updated Mineral Resource estimation was carried out Trepanier Pty Ltd, resulting in the estimation of
Measured, Indicated, and Inferred Mineral Resources. All mineralised domains, are reported above 0.4%
V2O5 for the low grade ore zones and above 0.7% V2O5 within the high grade zones.
The Mineral Resource estimate consists of:
•
•
•
•
179.6 million tonnes at 0.75% V2O5 containing 1.35 million tonnes of V2O5;
discrete high-grade zones of 92.8 million tonnes at 0.96% V2O5 containing 890,000 tonnes of V2O5;
discrete low-grade zones of 82.4 million tonnes at 0.51% V2O5 containing 420,000 tonnes of V2O5, and
combined Measured and Indicated Mineral Resources of 35.5 Million tonnes at 0.74% V2O5 in low and
high-grade zones containing 260,000t V2O5.
TABLE 1
GABANINTHA PROJECT
MINERAL RESOURCES STATEMENT
AS AT 30 JUNE 2017
JORC Resource
Class
Tonnes
Million
V2O5
%
Fe
%
High Grade Zone
Measured
Indicated
Inferred
Subtotal
Low Grade Zone
Indicated
Inferred
Subtotal
Transported Zone
Inferred
Subtotal
TOTAL
Measured
Indicated
Inferred
TOTAL
50
10.2
4.8
77.8
92.8
20.5
61.8
82.4
4.5
4.5
10.2
25.4
144.1
179.6
1.06
1.04
0.94
0.96
0.52
0.50
0.51
0.66
0.66
1.06
0.62
0.75
0.75
41.6
41.9
41.2
41.3
24.3
26.2
25.7
28.4
28.4
41.6
27.7
34.4
33.8
TiO2
%
12.0
11.5
10.7
10.9
7.1
7.0
7.0
7.2
7.2
12.0
7.9
9.0
9.0
SiO2
%
11.6
12.0
12.7
12.6
27.9
24.5
27.2
24.5
24.5
11.6
24.9
19.2
19.6
Al2O3
%
LOI
%
8.6
8.0
7.9
8.0
17.6
16.6
16.5
16.6
16.6
8.6
15.8
11.7
12.1
4.2
3.6
3.3
3.4
8.4
8.4
7.5
8.4
8.4
4.2
7.5
5.2
5.4
Australian Vanadium Limited 2017 Annual Report
2. MATERIAL CHANGES AND RESOURCE STATEMENT COMPARISON
A comparison between the 2016 and 2017 Mineral Resource Estimates for the Gabanintha Project is shown
in Table 2 below.
TABLE 2
GABANINTHA PROJECT
COMPARISON BETWEEN 2016 & 2017 MINERAL RESOURCE ESTIMATES
Al2O3
JORC Resource
Class
%
ESTIMATE AS AT 30 JUNE 2017
Tonnes
Million
V2O5
%
SiO2
%
TiO2
%
Fe
%
Measured
10.2
1.06
41.6
12.0
11.6
8.6
Indicated
25.4
0.62
27.7
Inferred
TOTAL
144.1
0.75
34.4
179.6
0.75
33.8
ESTIMATE AS AT 30 JUNE 2016
Measured
Indicated
Inferred
TOTAL
7.0
1.09
17.8
0.68
66.7
0.83
91.4
0.82
43
28
37
35
7.9
9.0
9.0
12
8
10
10
24.9
19.2
15.8
11.7
19.6
12.1
10
23
17
18
8
16
11
11
LOI
%
4.2
7.5
5.2
5.4
3.4
7.7
4.1
4.8
There is a material change in the Mineral Resource Estimate between 2016 and 2017. The updated estimation
represented a 96% increase in the overall Resource, a 46% increase in the Measured Resource, a 43%
increase in the Indicated Resource and a 116% increase in the Inferred Resource categories for the Project
compared to the 2016 estimation.
The revised estimate was conducted following a major revision of the geological interpretation for the
Gabanintha mafic layered intrusion. The revision was based on the collection of additional density
information; a major review of geological logging and zone coding; extensive consideration of geophysics and
a review of the geological continuity along-strike and down-dip.
The Group is not aware of any new information or data that materially affects the information as previously
released and all material assumptions and technical parameters underpinning the estimates continue to
apply and have not materially changed.
3.
GOVERNANCE ARRANGEMENTS AND INTERNAL CONTROLS
The Group has appropriate systems in place and suitably qualified and competent geological consultants to
complete any resource estimation or review to the required standards as shown in the 2012 JORC Code
Guidelines. The Quality Assurance, Sampling Systems, Assay Procedures, Data Recording, Interpretation
Standards and Resource Estimation Methods and other parameters as set out in Table 1 of the JORC Code
2012 Guidelines are closely followed. The mineral resources reported have been generated by independent
external consultants where appropriate who are experienced in best practices in modelling and estimation
methods. The consultants have also undertaken reviews of the quality and suitability of the underlying
information used to determine the resource estimate. In addition, management carries out regular reviews
and audits of internal processes and external contractors that have been engaged by the group.
51
Australian Vanadium Limited 2017 Annual Report
The Company policy is that all steps are recorded during the resource drilling program and then the
estimation stage. All results from field logs and assays to database entries and modelling data are validated,
reviewed and checked by independent and qualified geological personnel.
Competent Person Statement – Mineral Resource Estimation
The information relating to the Gabanintha Project 2016 Mineral Resource estimate reported is based on
information compiled by Mr John Tyrrell. Mr Tyrrell is a Member of The Australian Institute of Mining and
Metallurgy (AusIMM) and a full time employee of AMC (Australian Mining Consultants Pty Ltd). Mr Tyrrell
has more than 25 years’ experience in the field of Mineral Resource Estimation. He has sufficient experience
relevant to the style of mineralisation and type of deposit under consideration and in resource model
development to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Mr. Tyrrell consents to the inclusion in the report of the matters based on the information made available to
him, in the form and context in which it appears.
The information in this report relating to the Gabanintha Project 2017 Mineral Resource estimate reported is
based on and fairly represents information compiled by Mr Lauritz Barnes, (Consultant with Trepanier Pty Ltd)
and Mr Brian Davis (Consultant with Geologica Pty Ltd). Mr Davis is a shareholder of Australian Vanadium
Limited. Mr Barnes and Mr Davis are members of the Australasian Institute of Mining and Metallurgy and
have sufficient experience of relevance to the styles of mineralisation and types of deposits under
consideration, and to the activities undertaken to qualify as Competent Persons as defined in the 2012 Edition
of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves. Specifically, Mr Barnes is the Competent Person for the estimation and Mr Davis
is the Competent Person for the database, geological model and site visits. Mr Barnes and Mr Davis consent
to the inclusion in this report of the matters based on their information in the form and context in which they
appear.
Competent Person Statement – Exploration Results and Exploration Targets
The information in this report that relates to Exploration Results and Exploration Targets is based on and fairly
represents information and supporting documentation prepared by Mr Brian Davis (Consultant with
Geologica Pty Ltd). Mr Davis is a shareholder of Australian Vanadium Limited. Mr Davis is a member of the
Australasian Institute of Mining and Metallurgy and has sufficient experience of relevance to the styles of
mineralisation and types of deposits under consideration, and to the activities undertaken to qualify as
Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Specifically, Mr Davis
consents to the inclusion in this report of the matters based on his information in the form and context in
which they appear.
52
Australian Vanadium Limited 2017 Annual Report
4.
SCHEDULE OF INTERESTS IN MINING TENEMENTS
AS AT 31 AUGUST 2017
PROJECT
TENEMENT
AREA
EQUITY
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Coates
Nowthanna Hill
TOTAL
E51/843
E51/1396
E51/1534
E51/1576
E51/1685
E51/1694
E51/1695
P51/2566
P51/2567
P51/2634
P51/2635
P51/2636
18 blocks
1 block
8 blocks
10 blocks
15 blocks
14 blocks
2 blocks
147.66 ha
111.66 ha
171.85 ha
123.53 ha
175.16 ha
MLA 51/878
3,563.0 ha
E70/4924
M51/771
1 block
301.0 ha
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
ANNUAL
EXPENDITURE
COMMITMENT
$70,000
$15,000
$20,000
$20,000
$20,000
$20,000
$15,000
$5,920
$4,480
$6,880
$4,960
$7,040
Application
$15,000
$30,100
$254,380
53
Australian Vanadium Limited 2017 Annual Report
ASX Additional Information
Additional information required by the ASX Listing Rules not disclosed elsewhere in this Annual Report is
set out below. The information is current as at 31 August 2017.
1.
DISTRIBUTION OF EQUITY SECURITIES
Analysis of numbers of equity security holders by size of holding:
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001+
Total
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001+
Total
Listed Shares,
Fully Paid Ordinary
No of Holders
112
159
184
1,749
1,519
3,723
Number of shares
25,261
486,120
1,615,261
96,262,848
1,218,344,726
1,316,734,216
Listed 2 cent Options
expiring 31 December 2018
No of Holders
15
24
14
136
259
448
Number of options
7,539
66,590
107,007
7,108,630
303,594,791
310,884,557
Unlisted Shares,
Partly Paid Ordinary
No of Holders
-
-
-
-
5
5
Number of shares
-
-
-
-
80,000,000
80,000,000
Unlisted 1.4712 cent Options
expiring 31 December 2017
No of Holders
3
15
20
60
83
181
Number of options
2,950
40,324
169,311
2,410,060
139,337,708
141,960,353
Unmarketable Parcels
There were 932 holders of less than a marketable parcel of ordinary shares.
2.
UNQUOTED SECURITIES
Holders of more than 20% of the abovementioned unquoted securities are:
Holder Name
Woolmaton Pty Ltd
Lisen Zhang
3.
RESTRICTED SECURITIES
Unlisted Shares,
Partly Paid
Ordinary
28,000,000
28,000,000
Unlisted Options,
expiring 31 Dec 17
Exercise Price 1.4712c
10,000,000
-
There are no restricted securities or securities subject to voluntary escrow as at 31 August 2017.
4.
SUBSTANTIAL SHAREHOLDERS
There were no substantial holders as at 31 August 2017.
5.
CORPORATE GOVERNANCE
The Company’s Corporate Governance Statement is located on its website at:
australianvanadium.com.au
54
Australian Vanadium Limited 2017 Annual Report
6.
TOP 20 SHAREHOLDERS
Name
Mr Marko Pasalich
Kimbriki Nominees Pty Ltd
J P Morgan Nominees Australia Limited
Sunarp Pty Ltd
Jalein Pty Ltd
Mr Neale Parsons
Mr Peter James Muir
Kelro Pty Ltd
Pershing Australia Nominees Pty Ltd
1
2
3
4
5
6
7
8
9
10 Mr John Henderson Manson + Mrs Karen Ann-Marie Manson
11 Mr Robert Glyn Salathiel + Mrs Danielle Louise Salathiel
12 Moray Holdings (Qld) Pty Ltd
13 Mr Neale Parsons
14 Mr Charles Michael Higgins
15
16 Mr Brenton David Witcombe
17
Harold Cripps Holdings Pty Ltd
18 Woolmaton Pty Ltd
19 Mr Brenton James Lewis
20
Toulon Pty Ltd
BNP Paribas Nominees Pty Ltd
Total
Total Remaining Holders Balance
7.
TOP 20 LISTED OPTIONHOLDERS
Name
Kimbriki Nominees Pty Ltd
Mr Peter Andrew Proksa
Kojen Pty Ltd
Gillam Super Investments Pty Ltd
Jekor Pty Ltd
Tradelink Food Brokers P/L
Mr Scott Alan Malone
Mr Peter Tsimilas
Mrs Joni Marie Jones
1
2
3
4
5
6
7
8
9
10 Mr Andrew Charles Alexander Mackenzie
11 Mr Luke Kukulj
12 Mr Ziyin Fang
13 Mr Henryk Klocek
14 Mr James Stati + Miss Kathie Lee Fletcher
15
16
17 Mr Peter James Muir
18 Mr Yuen Wai Lee + Mrs Teresa Siew Ing Ung
19 Mr Raymond Andrew Hegarty + Mrs Zoe Elizabeth Hegarty
20
BNP Paribas Nominees Pty Ltd
Sport & Health Allied Professionals & Executives (Shape) Pty Ltd
P A Shakespeare Investing Pty Ltd
Total
Total Remaining Holders Balance
Number of
Shares
40,000,000
29,666,666
28,470,830
24,000,000
20,000,000
20,000,000
18,417,675
14,800,000
12,500,000
12,000,001
11,045,424
11,000,000
10,500,000
10,000,000
9,900,000
9,713,007
9,066,667
9,046,412
8,778,600
8,492,444
317,397,726
999,336,490
Number of
Listed
Options
16,666,666
10,500,000
10,434,854
10,000,000
9,649,601
7,500,000
7,000,000
6,666,666
6,000,000
5,707,048
5,451,000
5,000,000
5,000,000
5,000,000
4,739,998
4,713,334
4,604,419
4,500,000
4,000,000
3,892,276
137,025,862
173,858,695
% of
Shares
3.04
2.25
2.16
1.82
1.52
1.52
1.40
1.12
0.95
0.91
0.84
0.84
0.80
0.76
0.75
0.74
0.69
0.69
0.67
0.64
24.10
75.90
% of
Listed
Options
5.36
3.38
3.36
3.22
3.10
2.41
2.25
2.14
1.93
1.84
1.75
1.61
1.61
1.61
1.52
1.52
1.48
1.45
1.29
1.25
44.08
55.92
55