BULLETIN RESOURCES LIMITED
A.C.N. 144 590 858
ANNUAL REPORT
for the year ended 30 June 2015
BULLETIN RESOURCES LIMITED
CORPORATE INFORMATION
FOR THE YEAR ENDED 30 JUNE 2015
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Commonwealth Bank of Australia
Level 14A
300 Murray Street
PERTH WA 6000
DIRECTORS
Paul Poli
Robert Martin
Franciscus Sibbel
COMPANY SECRETARY
Andrew Chapman
REGISTERED OFFICE
Suite 11, 139 Newcastle Street
PERTH WA 6000
POSTAL ADDRESS
PO Box 376
NORTHBRIDGE WA 6865
AUDITORS
BDO Audit (WA) Pty Ltd
38 Station Street
SUBIACO WA 6008
BANKERS
Westpac Banking Corporation
Level 6
109 St Georges Terrace
PERTH WA 6000
SOLICITORS
King & Wood Mallesons
Level 30, QV1 Building
250 St Georges Terrace
Perth WA 6000
WEBSITE
www.bulletinresources.com
SHARE REGISTRY
Level 11
172 St Georges Terrace
Perth WA 6000
Enquiries (within Australia) 1300 850 505
(outside Australia) 61 3 9415 4000
www.investorcentre.com/contact
HOME STOCK EXCHANGE
Australian Securities Exchange Ltd
Level 40, Central Park
152-158 St George's Terrace
Perth WA 6000
ASX Code: BNR
1
BULLETIN RESOURCES LIMITED
CONTENTS
FOR THE YEAR ENDED 30 JUNE 2015
CONTENTS
Chairman’s Letter
Operations Review
Directors’ Report
Corporate Governance Statement
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to and Forming Part of the Financial Statements
Directors’ Declaration
Independent Audit Report to the Members
Auditor’s Independence Declaration
Additional ASX Information
Schedule of Interests in Mining Tenements
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BULLETIN RESOURCES LIMITED
CHAIRMAN’S LETTER
FOR THE YEAR ENDED 30 JUNE 2015
Dear Shareholder,
I have an enormous amount of pride to state that post year end we are now a gold producer.
We commenced gold production at the Nicolsons Gold Project late September 2015 and with the recent
higher gold prices, all bodes very well for us. It’s going to be an exciting chapter.
The year has seen the Company consolidate its finances and affairs through careful management and
a disciplined approach to the end objective of commencing production. Importantly, it was able to fund
its share of capital for commencement of mining activities with only a modest dilution to existing
shareholders. Furthermore, the Company was able to retain virtually all of its investment in Pacific
Niugini Resources Ltd which we expect to bear fruit as the Nicholsons Gold Project develops into full
production.
The project is anticipated to produce upwards of 30,000 oz. of gold per annum and we are very confident
that new gold discoveries will significantly extend the life of the Nicholsons Gold mine. Higher than
anticipated ore grades, are already providing bonuses.
The operator of the mine, Halls Creek Mining Pty Ltd, a subsidiary of Pacific Niugini has displayed high
acumen and determination to deliver the production of gold on time and within anticipated budgets, a
task that is not easily accomplished. For this we thank Mr Paul Cmrlec and his team, including our
former director Mr Mick Fitzgerald who we believe was also part of this achievement despite the mine
already having its share of challenges.
Our Company will now further consolidate its financial strength by the accumulation of profits from
operations and carefully managing expenditure whilst developing a considered strategy to generate
new quality projects to create shareholder wealth. Whilst patience will be adopted in our search for our
next project, we have already energetically commenced determining the parameters of implementing
the next step of our company.
It is most interesting that many experts are predicting higher prices for gold in Australian dollar terms,
and accordingly, gold producers like Bulletin will benefit substantially from this positive environment.
It is always important to thank all shareholders of the Company for their continued support and keen
interest in talking to us, sharing both wisdom and experiences for the benefit of all. We appreciate the
interest and hope to deliver shareholder wealth to all.
Warm wishes with an anticipation to a much higher gold price!
Yours Sincerely
Paul Poli
Non-Executive Chairman
30 September 2015
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BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2015
REVIEW OF OPERATIONS
NICOLSONS GOLD PROJECT
BULLETIN 20%, PNR 80% (PNR – PROJECT MANAGER)
Summary
There have been a number of significant advancements in the development of the Nicolsons Gold
Project (formerly known as the Lamboo Project) during the financial year highlighted by commencement
of gold production in September 2015, subsequent to the end of the financial year.
In November 2014 Bulletin acknowledged that Pacific Niugini Limited (PNR) had earned a further 15%
interest by spending $1.2 million on the project giving PNR a 65% interest.
In December 2014 Bulletin executed a Heads of Agreement (HOA) with PNR to advance the financing
of the Nicolsons Project. A formal agreement was agreed and executed in January 2015. Under the
agreement, PNR would assist Bulletin by seeking to secure 100% of the financing requirements for the
Nicolsons Project and to extend the same financing terms to Bulletin. The agreement also provided for
PNR making any relevant equity requirements on behalf of Bulletin as a loan to Bulletin repayable after
CBA loan draw down occurs.
In return, Bulletin transferred to PNR a further 15% interest in the Nicolsons Project (taking PNR’s share
of the project from 65% to 80%) immediately upon availability of drawdown from the CBA loan. PNR
continued to sole fund project expenditure until 1 January 2015, after which Bulletin contributed pro-
rata to project costs in accordance with its 20% interest.
In February 2015 Bulletin executed a Mandate Letter with the Commonwealth Bank of Australia (CBA)
which sets out the terms and conditions for CBA to arrange finance for Bulletin’s share of the Nicolsons
Gold Project. The funding proposal mandated CBA to complete a Senior Secured Gold Prepaid Forward
and Mandatory Hedge Facility (Facility) to allow Bulletin to contribute to its interest in the refurbishment
and development of the Nicolsons Gold Project. The value of the Facility is up to A$2.3 million based
on Bulletin owning a 20% interest in the Project.
As part of the proposal PNR agreed to fund Bulletin’s share of equity in the Project which equated up
to approximately $700,000 as required while Bulletin completed its financing
Project Work Carried Out
Summary
The project region has been sporadically explored over a number of years. Prospecting has shown
significant potential in the immediate area, which remains sparsely explored with minimal drill testing of
targets outside of the existing resources (beneath and immediately adjacent to the existing open pits).
Once the Nicolsons mine is in production, the Joint Venture’s exploration objective is to increase the
near mine resources at Nicolsons while developing and extending the current resource base
immediately beneath and down plunge of the existing open pit.
PNR completed an eleven hole, approximately 2,500m diamond drilling program at the Nicolson’s
Project aimed at confirming the existing resource and to provide additional information for use in
subsequent mine planning activities.
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BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2015
Halls Creek Project Location
Highlights of the drilling program included the following gold assays:
NRCD14005 - 3.0m @ 20.43g/t, inc 1.6m @ 34g/t
NRCD14007 – 1.2m @ 102.92g/t, inc 0.8m @ 149.17g/t
NRCD14003 - 3.4m @ 13.21g/t, inc 0.36m @ 121g/t
NRCD14008 – 2.0m @ 43.4g/t, inc 1.4m @ 61.1g/t
In November 2014 PNR announced that it had completed its restart estimate for the Nicolsons Gold
Project and that the estimate demonstrated a robust project with modest capital requirements and
strong operational cashflows targeting production of 30,000oz gold per annum. PNR also declared a
maiden probable reserve of 433,455 tonnes at 6.17g/t Au for 86,362 ounces of gold for the project
during the quarter. Regulatory project permitting for mining and environment approvals at Nicolson’s
were granted during January 2015, allowing PNR to commence mining activities.
Bulletin estimated the project will provide positive cash flow to BNR of $11M after tax over 4.5 years at
a gold price of $A1,400 oz.
Mine dewatering and remediation of the open pit commenced in January 2015 along with mine
development, tailings construction and processing plan refurbishment. The joint venture operator, Halls
Creek Mining Pty Ltd (HCM), continued rapid development of the Nicolsons mine during 2015 with
underground mining activities commencing in April, first ore level access in July and the first gold pour
in September, subsequent to year end. Processing recoveries to date are 96 to 98%, and average feed
grade (excluding low grade commission ore) has been consistently above 5 g/t. The operation is well
positioned to continue to ramp up into full production in accordance with the mine plan.
Underground Mining
Underground mining commenced late March, and was advanced on a 24 hour per day basis from mid-
April. Challenging ground conditions caused by a deeper than expected weathering profile caused
decline development advance to be below expectations in the first 40m of vertical development. Fresh
rock was encountered in the main decline subsequent to the end of the March quarter, and development
conditions improved substantially.
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BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2015
Meshing decline backs at Nicolson’s underground operation
Subsequent to the end of the year, development reached the first level access, and ore mining
commenced in mid-July with outstanding grades encountered in the initial ore access (Figure 1). The
grades were particularly pleasing given that the ore was accessed at the southern end of the current
reserve where grade and overall width of ore was expected to be relatively weak relative to the overall
reserve.
Figure 1: 2220 Level Development as at 2/8/2015
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BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2015
Face assays (uncut) in the 2220 level development include (Figure 1):
•
•
•
•
•
0.3m @ 682g/t
3.1m @ 42.1g/t, including 0.3m @ 244g/t
3.5m @ 12.1g/t, including 0.4m @ 172g/t
3.9m @ 7.23g/t, including 0.35m @ 27.1g/t and 0.3m @ 25.3g/t
4.6m @ 5.15g/t including 0.3m at 48.7g/t
Additional faces developed have continued to indicate high grades, similar to those above in the site-
based laboratory.
Existing drilling results indicate that thicker, high-grade mineralisation is expected in the continuation of
the north drive over the next 150m of development. It is intended to complete development on the initial
two levels when the overall characteristics of the orebody will be understood, prior to finalising stoping
methods and widths.
In addition to the main ore zone, the decline has intersected previously unidentified quartz zones in two
positions. One vein intersected is approximately 30m from the portal entrance, striking sub parallel to
the main ore zone, returning grades of 0.5m @ 40.0g/t. The second vein was intersected approximately
40m before the 2220 level access drive, approximately perpendicular to the main ore zone and returning
grades of 0.33m @ 5.95 g/t. Due to the orientation of this vein relative to existing drilling, it was not
encountered in the exploration phase, and it may represent an additional ore source for the mine. The
intention is to further develop this vein when mine scheduling permits.
During August, the material near the first level continued to deteriorate in the first level cross-cut and
works on the first level ceased. The majority of remedial works have been completed and works to re-
access the first level ore are continuing.
Decline development is now continuing in fresh rock with no further issues and ore development is
underway in the second (2210) level with the decline advancing towards the third level.
Processing Plant
The processing plant refurbishment is complete and the plant is operational. The installation of new mill
bearings and the re-commissioning of the mill circuit was completed by the end of July 2015. Other
extensive works completed include a full upgrade of plant guarding to comply with current standards,
upgrading of the gravity recover circuit including installation of a new Knelson Concentrator and Acacia
Reactor, refurbishment of the leaching circuit, including installation of new agitators and gear boxes and
carbon screens.
The mill was re-lined, and the bearings were removed and sent to Perth for re-manufacture and
subsequently re-installed in July as the final major task undertaken.
All processing pumps were either refurbished or replaced with new units, and plant buildings including
the mill control room, the CIP hut, and the crusher MCC were either refurbished or replaced as
appropriate.
The permanent power station has also been installed and is operational.
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BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2015
Refurbished and operational processing plant
Crushing circuit refurbished and operational
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BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2015
Refurbished tailings dam
First gold pour
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BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2015
First dore bars produced in September 2015, subsequent to year end
Reserve and Resources
HALLS CREEK RESERVE STATEMENT 2015
Reserve Category
Tonnes
Proven
Probable
Total Reserves
-
435,455
435,455
Gold
grade
(g/t)
-
6.17
6.17
Ounces
gold
2015
Ounces
gold
2014
-
86,362
86,362
-
-
-
Variance
2015 -
2014 (%)
-
-
-
HALLS CREEK RESOURCE STATEMENT 2015
Deposit
Resource Category
Tonnes
Gold
grade
(g/t)
Ounces
gold
2015
Ounces
gold
2014
Variance
Au oz
2015 -
2014 (%)
Nicolson's
Wagtail/Wagtail North
Rowdies
Total Resources
Indicated
Inferred
Total Nicolson's
Indicated
Inferred
Total Wagtail
Indicated
Inferred
Total Rowdies
573,610
195,042
768,652
236,000
17,000
253,000
52,000
13,000
65,000
1,086,652
6.55
6.75
6.60
120,795 144,000
42,328
70,000
163,123 214,000
-16
-39
-24
4.6
3.4
4.5
4.4
4.7
4.5
6.0
35,000
35,000
2,000
2,000
37,000
37,000
7,000
2,000
9,000
7,000
2,000
9,000
-
-
-
-
-
-
209,130 260,000
-20
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BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2015
Notes to Nicolson’s Gold Mineral Resource table:
1 Nicolson’s 2015 Resource estimate based on underground mining scenario with a lower cut-
off grade of 2.5g/t Au. Rowdies and Wagtail Resource estimates have a lower cut-off grade of
0.6g/t Au. Rounding errors may be included in the table. Please refer to ASX announcement
dated 10 November 2014 for details.
2 Estimate reported as at 1 July 2015.
3 Bulletin Resources currently holds a 20% interest in the Halls Creek Project and as such has
an equitable interest in 20% of the Mineral Resource
The historical Golden Crown 2004 Resource estimate has been removed from current Mineral
Resource statements until such time it has been reviewed and updated to JORC 2012 standards.
Summary of Governance Arrangements and Internal Controls
The Ore Reserve and Mineral Resource estimates are subject to governance arrangements and internal
controls as described in Table 1. The Ore Reserve is estimated by suitably qualifies employees and
external consultants in accordance with the JORC Code, using industry standard techniques and
internal guidelines for the estimation and reporting of Ore Reserves and Mineral Resources. The
consultants have also carries out reviews of the quality and suitability of the data underlying the
estimates, including a site visit of the project.
Financial
During the year the Company executed loan documentation with the Commonwealth Bank of Australia
(CBA) to provide the loan finance required by Bulletin towards meeting its share of the redevelopment
of the Nicolsons mine.
The loan finance has been structured as a gold prepayment facility as follows:
• A gold prepay facility of $2.3 million repayable by the delivery of 1,705 ounces of gold.
• A hedge facility with the CBA for 3,695 ounces at a fixed price of $1,568 per ounce.
• The prepayment facility and the hedge facility are for a period of 22 months commencing in
November 2015 and will be satisfied by the delivery of physical gold.
The Halls Creek Project includes the Nicolsons Mine, (35km South West of Halls Creek) and the Golden
Crown Project located east of Halls Creek in the Kimberly Region of Western Australia.
Due to the delays in the decline development as noted above and the requirements of the finance
package (gold pre-pay) in place with the Commonwealth Bank of Australia the Company has assessed
its cash requirements and is finalising funding in order to meet its joint venture commitments until full
production is achieved in late 2015.
Subsequent to the end of the financial year Bulletin announced that in a move designed to pre-empt
any temporary shortfall in immediate cash flow prior to receiving gold sales revenue from production, it
entered into an agreement for additional funding via a loan. The facility helped secure Bulletin’s share
of joint venture funding of the Nicolsons Gold Project as it enters the production phase. This pre-emptive
move was designed to specially provide a buffer for its current cash and liquid assets and as a measure
to eradicate any requirement of a capital raising.
To ensure sufficient capital, Bulletin entered into a loan agreement with an independent party for an
additional $600,000 in funding. The details of the loan are as follows:
Principal Amount:
Interest Rate:
Interest Payments:
$600,000
12% per annum if loan repaid prior to or on the due date otherwise the rate
increases to 18% in the event of a default
Every 6 months from loan drawdown
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BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2015
Repayment Date:
Security:
31 December 2017
Unsecured
As a measure of commitment the entire board of Bulletin will not draw down any remuneration until
such time as the loan has been repaid. Furthermore, major shareholder Matsa Resources Limited has
also entered into a Deed of Guarantee and Indemnity with the lender to guarantee repayment of the
loan to a maximum of $350,000.
While Bulletin’s immediate focus will be on the restart of production at the Nicolsons mine it will continue
the search for new projects it believes have the potential to substantially add value for shareholders.
Warrego North Project
During the year Bulletin executed a Terms Sheet with Meteoric to earn a 70% interest in Meteoric’s
Warrego North Project located near Tennant Creek in the Northern Territory via a farm-in arrangement
by spending $750,000 within a two (2) year period. Meteoric will be free-carried during the earn-in
period.
The Warrego North project consists of three granted and one application exploration licences near the
historical Warrego copper-gold mine (1.3M ozs gold, 91,000t copper), the largest mine in the Tennant
Creek mineral field. Previous exploration results have identified several large high magnetic
susceptibility targets some with pronounced coincident gravity anomalies similar in character to quartz-
magnetite-chlorite
ironstones associated with high-grade copper-gold-bismuth mineralisation
elsewhere in the mineral field.
Bulletin has withdrawn from the joint venture and has no residual interest.
Competent Persons Statements and JORC table
The information in this report that relates to exploration and mineral resources is based on information compiled by Mr. Ben
Pollard (B.Sc. Mineral Exploration and Mining Geology)) MAusIMM who is a consultant to Pacific Niugini Limited. Mr. Pollard
has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a competent person as described by the 2012 Edition of the “Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Pollard consents to the inclusion in this report
of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Mineral Reserves is based on information compiled by Mr. Paul Cmrlec (B. Eng
(Mining) (Hons)), MAusIMM who is the Managing Director of Pacific Niugini Limited. Mr. Cmrlec has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is
undertaking to qualify as a competent person as described by the 2012 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”. Mr. Cmrlec consents to the inclusion in this report of the matters
based on his information in the form and context in which it appears.
12
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2015
Your Directors present their report on the entity Bulletin Resources Limited (“Bulletin” or the “Company”)
for the year ended 30 June 2015.
DIRECTORS
The names and details of the company’s directors in office during the financial year and until the date
of this report are as follows. Directors were in Office for the entire year unless otherwise stated.
Paul Poli - Non-Executive Chairman
Paul has over 25 years experience in general management/business, contract negotiations, taxation,
corporate and business advisory. He completed a bachelor degree at the University of Western
Australia in 1984, and after gaining experience with Duesburys Chartered Accountants, he became a
partner in a private practice in 1989.
He is a fellow of the Australian Society of Certified Practising Accountants he also holds a diploma in
Financial Services and was a registered Securities Trader.
He founded Matsa Resources Pty Ltd which has developed and become Matsa Resource Ltd, a
prosperous and well-funded exploration company with a pipeline of quality projects in Australia and
Thailand, and where he has held the position of Executive Chairman Ltd since 2009.
Mr Poli is particularly well qualified to contribute to the growth of entities in the mining and exploration
sector.
During the past three years Mr Poli has also served as a director of the following listed companies:
Matsa Resources Limited
Interest in shares and options of the Company:
625,000 ordinary shares
1,000,000 unlisted options exercisable at 3 cents each expiring 30 November 2017
Robert Martin - Non- Executive Director
Mr Martin has over 40 years experience in the management and operation of resource projects and
other commercial undertakings. He is also a significant shareholder of the company, through his entity
Goldfire Enterprises Pty Ltd.
During the past three years Mr Martin has not served as a director of any other listed companies.
Interest in shares and options of the Company:
34,646,755 ordinary shares
500,000 unlisted options exercisable at 3 cents each expiring 30 November 2017
Franciscus (Frank) Sibbel - Non- Executive Director
B.E. (Hons) Mining, F.Aus.IMM
Frank is a Mining Engineer who has over 40 years of extensive operational and management
experience in overseeing large and small scale mining projects from development through to successful
production. He was formerly the Operations Director of Tanami Gold NL until his resignation on 30 June
2008, and has worked as the Principal in his own established mining consultancy firm where he has
undertaken numerous projects for both large and small mining companies.
During the past three years Mr Sibbel has also served as a director of the following listed companies:
Matsa Resources Limited
13
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2015
Interest in shares and options of the Company:
250,000 ordinary shares
2,000,000 unlisted options exercisable at 3 cents each expiring 30 November 2017
Michael (Mick) Fitzgerald - Non-Executive Director
Resigned on 12 January 2015
Mick is a contract miner and has 39 years of hands-on practical experience in the mining industry. Mick
is a qualified diesel mechanic with a WA Shift Supervisors Certificate and also a Senior Site Executive
Certificate of Queensland. Most recently, Mick ran his own mining contracting company, Alliance Mining
Pty Ltd, working in the Northern Territory operating two mine sites. Prior to forming his own company,
Mick operated various WA mining operations in the capacity of site manager and also as contract miner,
including as an area manager for Barminco Limited for two and a half years. Mick also worked overseas
in a continuous improvement role for Barrick Gold Corporation in Tanzania and has over 15 years of
direct mining experience in underground airleg/jumbo mining in all facets including rising, stope
development production and blasting.
Interest in shares and options of the Company:
Not applicable at date of this report
COMPANY SECRETARY
Mr Andrew Chapman – Appointed 1 October 2014
CA F Fin
Mr Chapman is a chartered accountant with over 20 years’ experience with publicly listed companies
where he has held positions as Company Secretary and Chief Financial Officer and has experience in
the areas of corporate acquisitions, divestments and capital raisings. He has worked for a number of
public companies in the mineral resources, oil and gas and technology sectors. He is currently a director
of Matsa Resources Limited and Carnavale Resources Limited.
Mr Chapman is an associate member of the Institute of Chartered Accountants (ICAA) and a Fellow of
the Financial Services Institute of Australasia (Finsia).
Craig Nelmes - Resigned 1 October 2014
B. Bus (Accounting and Finance)
Mr Nelmes is an Accountant with over 20 years of experience in the mining sector in Australia and
overseas, as well as seven years with International Accounting firm Deloitte. Since 2007, Mr. Nelmes
has been employed as a Manager with Corporate Consultants Pty Ltd, a Company providing
accounting, secretarial and administrative services to ASX and TSX listed entities. Mr. Nelmes is also
Company Secretary to ASX listed De Grey Mining Limited.
14
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2015
PRINCIPAL ACTIVITIES
Bulletin Resources Limited is a gold exploration company based in Perth, Western Australia.
During the year the principal activities of the Group was the development of the Nicolsons Gold Project
in which the Group holds a 20% interest.
There were no significant changes in the nature of these activities during the year.
FINANCIAL RESULTS AND FINANCIAL POSITION
The Group’s net loss for the year after income tax is $636,207 (2014: Profit of $926,802).
The Group’s net loss for the year includes the following items:
• Total corporate and administrative expenses of $354,866 (2014: $556,937) and director
fees/employee benefits expense of $223,239 (2014: $499,506) were incurred for the year.
• The write-off of exploration expenditure of $20,158 (2014: $375,619).
• Share based payments expense of $45,358 (2014: Nil)
• Revenue for the previous financial year of $2,508,881 consisted primarily of the gain on partial
•
sale of the Halls Creek Gold Project, being $2,374,002.
Income for the previous financial year of $71,159 relating to a tax refund for eligible research
and development expenditure.
Review of Financial Condition
As at 30 June 2015 the Group had net assets of $2,129,619 (2014: $2,450,783).
The Company raised $682,129 (2014: $2,860,500) before costs from the issue of shares during the
financial year.
Cash reserves at 30 June 2015 were $857,951 compared to $847,070 in the previous financial year.
DIVIDENDS
No dividend was paid or declared by Bulletin in the period since the end of the previous financial year,
and up to the date of this report. The Directors do not recommend that any amount be paid by way of
dividend.
CORPORATE STRUCTURE
Bulletin is a company limited by shares, which is incorporated and domiciled in Australia.
EMPLOYEES
The Group had no full time employees, three directors and one part time employee as at 30 June 2015
and in the previous financial year.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
In the opinion of the Directors there were no significant changes in the state of affairs of the Group that
occurred during the year under review that has not already been disclosed in this report or in the
financial statements.
15
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2015
EVENTS SUBSEQUENT TO THE REPORTING DATE
On 7 September 2015 the Group announced that the first gold pour had occurred at the Nicolsons Gold
Project following successful completion of mine development and processing plant commissioning in
the prior month.
On 7 August 2015 the Group announced that it had entered into a separate loan funding agreement for
a sum of $600,000 to aid the Group in funding its share of the remaining development costs of the
Nicolsons Gold Project as it entered the production phase. The loan attracts an interest rate of 12% per
annum and is repayable no later than 31 December 2017.
In conjunction with this loan, the Groups major shareholder Matsa Resources Limited, has also entered
into a Deed of Guarantee and Indemnity with the lender to guarantee repayment of the loan to a
maximum of $350,000.
Since the end of the financial year the Group has disposed of 4.58 million shares in Pacific Niugini
Limited for gross proceeds of $264,016.
There have been no other matters or circumstances that have arisen since the end of the financial year
which have significantly affected or may significantly affect the operations of the group, the results of
those operations, or the state of affairs of the group in future financial years.
FUTURE DEVELOPMENTS
As described above there are no further likely developments.
ENVIRONMENTAL REGULATIONS AND PERFORMANCE
The group’s exploration activities are subject to various environmental laws and regulations under
Australian Legislation. The Group has adequate systems in place for the management of its
environmental obligations. The directors are not aware of any breaches of the legislation during the
financial year which are material in nature.
The Directors have considered the recently enacted National Greenhouse and Energy Reporting Act
2007 (the NGER Act) which introduces a single national reporting framework for the reporting and
dissemination of information about greenhouse gas emissions, greenhouse gas projects, and energy
use and production of corporations. At the current stage of development, the directors have determined
that the NGER Act will have no effect on the Group for the current, nor subsequent, financial year. The
directors will reassess this position as and when the need arises.
MEETINGS OF DIRECTORS
The number of meetings of directors held during the year and the number of meetings attended by each
director were as follows:
Directors
Eligible
Attended
Paul Poli
Robert Martin
Frank Sibbel
Mike Fitzgerald (resigned 12 January 2015)
8
8
8
5
8
7
8
4
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BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2015
DIRECTORS’ INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY
As at the date of this report, the interests of the directors in the shares and options of Bulletin Resources
Limited were:
Paul Poli
Frank Sibbel
Robert Martin
Number of Ordinary
Shares
Number of $0.03
Options
2,625,000
250,000
34,646,755
1,000,000
2,000,000
500,000
Options granted to directors and officers of the Company
During or since the end of the financial year, the Company granted the following options over unissued
ordinary shares for no consideration in the Company to the following directors and officers of the
Company as part of their remuneration:
Key Management
Personnel
Paul Poli
Frank Sibbel
Robert Martin
Michael Fitzgerald
Andrew Chapman
Number of Options
Granted
1,000,000
2,000,000
500,000
1,000,000
250,000
Exercise Price
Expiry Date
$0.03
$0.03
$0.03
$0.03
$0.03
30 November 2017
30 November 2017
30 November 2017
30 November 2017
30 November 2017
SHARE OPTIONS
As at the date of this report the unissued ordinary shares of Bulletin Resources Limited under option
are as follows:
Date of Expiry
Exercise Price
Number under Option
30 November 2017
$0.03
5,250,000
Option holders do not have any right, by virtue of the option, to participate in any share issue of the
Company or any related body corporate.
Shares Issued on Exercise of Options
During or since the end of the financial year, the Company has issued no ordinary shares as a result of
the exercise of options.
17
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2015
REMUNERATION REPORT (Audited)
Principles of Compensation
This remuneration report for the year ended 30 June 2015 outlines the remuneration arrangements of
the Company and the Group in accordance with the requirements of the Corporations Act 2001 (“the
Act”) and its regulations. This information has been audited as required by section 308(3C) of the Act.
The remuneration report details the remuneration arrangements for Key Management Personnel
(“KMP”) who 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, and includes the four executives in the parent and the
Group receiving the highest remuneration.
For the purposes of this remuneration report, the term ‘executive’ includes the Executive Directors,
Senior Executives and Secretary of the Parent and the Group.
The prescribed details for each person covered by this report are detailed below under the following
headings:
A. Key Management Personnel
B. Remuneration Policy
C. Remuneration of Key Management Personnel
D. Key Terms of Service Agreements
E. Other Information
A. Key Management Personnel
Names and positions held of the Company’s key management personnel (“Key Management
Personnel”) in office at any time during the financial year are:
Key Management Personnel
Mr Paul Poli
Mr Robert Martin
Mr Frank Sibbel
Mr Michael Fitzgerald
Mr Andrew Chapman
Position
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Non-Executive Director (resigned 1 January 2015)
Company Secretary (appointed 1 October 2014)
Mr Craig Nelmes
Company Secretary (resigned 1 October 2014)
Except as noted, the named persons held their current position for the whole of the financial year.
There were no other changes to key management personnel after reporting date and before the date
the financial report was authorised for issue.
B. REMUNERATION POLICY
Board Oversight of Remuneration
Remuneration Committee
In the opinion of the directors the Company is not of sufficient size to warrant the formation of a
remuneration committee. It is the board of directors’ responsibility for determining and reviewing
compensation arrangements for the directors and the senior executives.
18
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2015
The Board assesses the appropriateness of the nature and amount of remuneration of Non-Executive
Directors and Executives on a periodic basis by reference to relevant employment market conditions
with the overall objective of ensuring maximum stakeholder benefit from the retention of a high
performing Director and executive team.
Remuneration Approval Process
The Board approves the remuneration arrangements of the Executive Directors and Executives and all
awards made under the long-term incentive plan. The Board also sets the aggregate remuneration of
non-executive directors which is then subject to shareholder approval.
Remuneration Strategy
The Company’s remuneration strategy is designed to attract, motivate and retain employees and non-
executive directors by identifying and rewarding high performers and recognising the contribution of
each employee to the continued growth and success of the Group.
To this end, the Company embodies the following principles in its remuneration framework:
• retention and motivation of key executives;
• attraction of quality management to the Company; and
• performance incentives which allow executives to share the rewards of the success of the Company.
Remuneration Structure
In accordance with best practice corporate governance, the structure of Non-Executive Director and
Senior Management remuneration is separate and distinct.
Non-Executive Director Remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the Company with the ability
to attract and retain Directors of the highest calibre, whilst incurring a cost which is acceptable to
shareholders.
Remuneration Policy
The Constitution and the ASX Listing Rules specify that the aggregate remuneration 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 current aggregate
remuneration is $350,000 per year.
The amount of aggregate remuneration 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. Each Director receives a fee for being a Director of the
Company. No external advice was received during the year.
Non-Executive Directors are encouraged by the Board to hold shares in the Company (purchased by
the Director on market). It is considered good governance for Directors to have a stake in the Company
on whose Board he or she sits.
19
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2015
Structure
The remuneration of Non-Executive Directors consists of directors’ fees. Non-Executives are entitled to
receive retirement benefits and to participate in any incentive programs. There are currently no specific
incentive programs.
The non-executive directors received a base fee of $36,000 per annum during the financial year for
being a director of the Group.
There are no additional fees for serving on any board committees. Non-executive directors can receive
additional fees for work conducted for the Company outside the scope of their normal duties subject to
being authorised by the Board.
The remuneration report for the Non-Executive Directors for the year ending 30 June 2015 and 30 June
2014 is detailed in this report.
Executive Remuneration Structure
Remuneration Policy
The Company aims to reward executives with a level and mix of remuneration commensurate with their
position and responsibilities within the Company. The current remuneration policy adopted is that no
element of any executive package be directly related to the Company’s financial performance. Indeed
there are no elements of any executive remuneration that are dependent upon the satisfaction of any
specific condition. Remuneration is not linked to the performance of the Company but rather to the
ability to attract and retain executives of the highest calibre. The overall remuneration policy framework
however is structured in an endeavour to advance/create shareholder wealth.
Structure
In determining the level and make-up of executive remuneration, the Board engages external
consultants as needed to provide independent advice.
Remuneration consists of the following key elements:
•
Fixed remuneration (base salary and superannuation); and
• Variable remuneration (short and long term incentives).
The proportion of fixed remuneration and variable remuneration for each executive for the period ended
30 June 2015 and 30 June 2014 is detailed in this report.
Fixed Remuneration
Executive contracts of employment do not include any guaranteed base pay increase. Fixed
remuneration is reviewed annually by the Board. The process consists of a review of the Company,
business unit and individual performance, relevant comparative remuneration internally and externally
and, where appropriate, external advice independent of management.
Executives are given the opportunity to receive their fixed (primary) remuneration in a variety of forms
including cash and fringe benefits such as motor vehicles. It is intended that the manner of payment
chosen will be optimal for the recipient without creating undue cost for the Company.
The fixed remuneration component for executives for the period ending 30 June 2015 and 30 June
2014 is detailed in this report.
Variable Remuneration – Short Term Incentive (STI)
The objective of the STI is to link the increase in shareholder value over the year with the remuneration
received by the Executives charged with achieving that increase. The total potential STI available is set
at a level so as to provide sufficient incentive to the Executives to achieve the performance goals and
such that the cost to the Group is reasonable in the circumstances.
20
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2015
Annual STI payments granted to each Executive depend on their performance over the preceding year
and are based on recommendations from the Executive Chairman following collaboration with the
Board. Typically included are measures such as contribution to strategic initiatives, risk management
and leadership/team contribution.
The aggregate of annual STI payments available for Executives across the Group is subject to the
approval of the Board. Payments are usually delivered as a cash bonus. During the year there were
no STI payments as no performance measures set.
Variable Remuneration – Long Term Incentive (LTI)
The objective of the LTI plan 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 Group’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 Group.
LTI grants to Executives are delivered in the form of employee share options. These options are issued
at an exercise price determined by the Board at the time of issue.
Typically, the grant of LTI’s 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. However, under certain circumstances, including breach of employment
conditions, the Directors may cause the options to expire prior to their vesting date.
The Group does have a policy to prohibit executives or directors from entering into arrangements to
protect the value of unvested LTI awards. No performance measurements were set during the year as
there are no executives.
Other Benefits
Key management personnel can receive additional benefits as non-cash benefits as part of the terms
and conditions of their appointment. Non-cash benefits typically include car parking and expenses
where the Company pays fringe benefits tax on these benefits.
Company Performance and the Link to Remuneration
Remuneration is not linked to the performance of the Company, but based on the ability to attract and
retain executives of the highest calibre. The overall remuneration policy framework however is
structured in an endeavour to advance/create shareholder wealth.
The table below shows the performance of the Group as measured by share price.
As at 30 June
Closing share price
Net comprehensive
income/(loss) per year ended
2015
$0.02
2014
$0.014
2013
$0.017
2012
$0.075
2011
$0.12
(1,007,455)
926,802
(3,831,844)
(5,917,132)
(2,959,099)
21
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2015
C. REMUNERATION OF DIRECTORS AND KEY MANAGEMENT PERSONNEL - 2015
Details of the nature and amount of the remuneration of the Directors and Key Management Personnel are as follows:
2015
Non-executive Directors
P Poli
R Martin
F Sibbel
M Fitzgerald (i)
Other Key Management Personnel
A Chapman (ii)
C Nelmes (iii)
Total Key Management Personnel
Salary &
Fees
$
36,000
36,000
36,000
18,100
50,828
-
176,928
Short Term
Post Employment Benefits
Share Based
Payments
Termination
Consulting
Superannuation
Retirement
Options
$
$
$
$
$
Total
$
Performance
Related
%
-
-
-
-
-
-
-
30,240
9,000
3,660
-
-
-
42,900
-
-
-
-
3,411
-
3,411
-
-
-
-
-
-
-
8,640
4,320
17,280
8,640
74,880
49,320
56,940
26,740
2,160
-
41,040
56,399
-
264,279
-
-
-
-
-
-
(i) Mr Fitzgerald resigned on 12 January 2015
(ii) Mr Chapman was appointed as Company Secretary on 1 October 2014
(iii) Mr Nelmes (Company Secretary) resigned on 1 October 2014
22
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2015
C. REMUNERATION OF DIRECTORS AND KEY MANAGEMENT PERSONNEL - 2014
Short Term
Post Employment Benefits
Share Based
Payments
Termination
Consulting
Superannuation
Retirement
Options
$
$
$
$
$
2014
Non-executive Directors
P Poli (i)
R Martin (i)
F Sibbel (ii)
M. Fitzgerald (ii)
A Beckwith (ii) (iii)
P. Retter (iv)
S. Robinson (iv)
Executive Directors
M. Philips (iv)
Other Key Management Personnel
M. Csar (v)
Craig Nelmes (vi)
Susan Hunter (vii)
Total Key Management Personnel
Salary &
Fees
$
-
-
27,500
27,500
27,500
7,702
4,783
-
-
-
-
20,000
-
-
-
-
26,380
27,300
128,875
-
-
-
-
-
-
-
-
442
50,163
68,750
-
4,501
126,925
-
-
272,073
-
-
-
88,750
-
23,343
205,898
10,982
-
-
15,925
-
-
-
-
-
-
-
-
-
-
-
-
(i) Mr Poli and Mr Martin were appointed on 24 June 2014.
(ii) Mr. Sibbel, Mr Fitzgerald and Mr Beckwith were all appointed on 13 August 2013
(iii) Mr Beckwith resigned on 24 June 2014
(iv) Mr. Retter, Mr Robinson and resigned as directors and Mr Philips was terminated 13 August 2013
(v) Mr Csar (Exploration Manager) was terminated on 23 January 2014
(vi) Mr Nelmes was appointed as Company Secretary and CFO on 1 December 2013
(vii) Ms Hunter (Company Secretary) resigned on 1 December 2013
Total
$
-
-
53,880
54,800
176,375
7,702
5,225
123,414
137,907
-
23,343
582,646
-
-
-
-
-
-
-
-
-
-
-
-
Performance
Related
%
-
-
-
-
-
-
-
-
-
-
-
23
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2015
D. KEY TERMS OF SERVICE AGREEMENTS
Non-executive directors
Each of the non-executive directors has an agreement with the Company which dictates the level of
remuneration they receive as a non-executive director. Non-executive directors are paid $36,000 per
annum. Each of the directors is able to receive additional fees for work conducted outside the normal
scope of their duties.
Other Key management personnel
Company Secretary
Mr Andrew Chapman, with effect from 1 October 2014, is employed as a casual employee with the
Company and is remunerated on an hourly basis for the provision of company secretarial services. Mr
Chapman has a formal service agreement with the Company. Termination can be made by either party
with a two month notice period.
Fees of $34,498 (2014: $64,852) were paid to Corporate Consultants Pty Ltd, a consulting firm of which
Craig Nelmes is a employee, for CFO, bookkeeping and administration services from 1 October 2013
and Company Secretarial services from 1 December 2013 until his resignation on 1 October 2014.
E. OTHER INFORMATION
Compensation Options and Performance Rights Granted and Vested during the year
The table below sets out options granted during the year to Directors and Executives. There were no
options that were granted in previous years that vested during the year. The options were issued free
of charge and entitle the holder to subscribe for one fully paid ordinary share in the Company.
2015
Vested
Granted
Grant
Date
Value per
Security
at Grant
Date
Exercise
Price
First
Exercise
Date
Expiry
Date
No.
No.
Cents
Cents
P Poli
F Sibbel
R Martin
M Fitzgerald
A Chapman
1,000,000 1,000,000 26.11.14
26.11.14
2,000,000 2,000,000
500,000 26.11.14
1,000,000 1,000,000 26.11.14
250,000 26.11.14
500,000
250,000
0.086
0.086
0.086
0.086
0.086
3
3
3
3
3
26.11.14 30.11.17
26.11.14 30.11.17
26.11.14 30.11.17
26.11.14 30.11.17
26.11.14 30.11.17
There were no alterations to the terms and conditions of options granted as remuneration since their
grant date.
The maximum value of the award is equal to the number of options granted multiplied by the fair value
at the grant date. The minimum value of the award in the event of forfeiture is zero.
There were no shares issued on exercise of compensation options during the year.
24
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2015
REMUNERATION REPORT (Continued)
Value of Options and Performance Rights granted as part of remuneration
2015
P Poli
F Sibbel
R Martin
M Fitzgerald
A Chapman
Value of options
granted during
the year
Value of options
exercised
during the year
Value of options
lapsed during the
year
$
$
$
Remuneration
consisting of
options during the
year
%
8,640
17,279
4,320
8,640
2,160
-
-
-
-
-
-
-
-
13.32
30.35
8.76
32.31
3.83
Shareholdings of Key Management Personnel
Year Ended 30 June 2015
Paul Poli
Robert Martin
Frank Sibbel
Michael Fitzgerald
Craig Nelmes
Andrew Chapman
TOTAL
Balance
1 July 2014
-
18,814,549
-
2,761,288
-
-
21,575,837
as
Granted
Remuneration
-
-
-
-
-
-
-
Option Holdings of Key Management Personnel
Options
Exercised
Other
Changes
-
-
-
-
-
-
-
625,000
15,832,206
250,000
(2,761,288)
-
266,666
14,212,584
Balance
30 June 2015
625,000
34,646,755
250,000
-
-
266,666
35,788,421
Year Ended 30 June 2015
Balance
1
2014
July
Granted
as
Remuneration
Options
Exercised
Net Change
Other
Balance 30
June 2015
Vested and
Exercisable
Paul Poli
Robert Martin
Frank Sibbel
Michael Fitzgerald
Andrew Chapman
TOTAL
-
-
-
-
-
-
1,000,000
500,000
2,000,000
1,000,000
250,000
4,750,000
-
-
-
-
-
-
-
-
-
(1,000,000)
-
(1,000,000)
500,000
1,000,000 1,000,000
500,000
2,000,000 2,000,000
-
250,000
3,750,000 3,750,000
-
250,000
Shares provided on exercise of remuneration options
During the financial year ended 30 June 2015, no remuneration options were exercised.
Other transactions and balances with Key Management Personnel
During the financial year the Company executed a services agreement with Matsa Resources Limited
whereby Matsa would provide accounting and administrative services to the Company on a monthly
arms-length basis and on commercial terms. Messrs Poli and Sibbel are directors of Matsa.
In the current period $78,741 has been charged to Bulletin for these services (2014: nil). At 30 June
2015 there was an outstanding balance of $12,482 (2014: nil) owing to Matsa.
25
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2015
There have been no loans made to Key Management Personnel during the 2015 reporting period (2014:
nil).
2014 Annual General Meeting
The result of voting at the 2014 AGM for the adoption of the Remuneration Report was:
For – 39,175,727
Against – 2,059,807
Abstain – 19,614,549
Discretion – 3,465,000
End of Audited Remuneration Report
INDEMNIFICATION
During the year $6,044 (2014: $6,044) was incurred as an expense for Directors and officeholders
insurance which covers all Directors and officeholders. A policy has been entered into for the year
ended 31 August 2016.
The liabilities insured are costs and expenses that may be incurred in defending civil or criminal
proceedings that may be brought against the officers in their capacity as officers of the Company.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in
any proceedings to which the company is a party for the purpose of taking responsibility on behalf of
the company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the year.
AUDITOR’S INDEPENDENCE
A copy of the auditor’s independence declaration as required under section 307C of the Corporations
Act 2001 is set out on page 83.
Signed in accordance with a resolution of the Directors dated this 30th day of September 2015.
NON-AUDIT SERVICES
The Company may decide to employ the auditor on assignments additional to their statutory audit duties
where the auditor’s expertise and experience with the Company is important. There have been no non-
audit services provided by the Company’s auditor during the year (2014: Nil).
Signed in accordance with a resolution of the directors.
_____________________________
Mr. Paul Poli
Chairman
30 September 2015
26
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2015
The Board is responsible for the corporate governance of the Company. The Board guides and monitors
the business and affairs of the Company on behalf of the shareholders by whom they are elected and
to whom they are accountable. The Company’s governance approach aims to achieve exploration,
development and financial success while meeting stakeholders’ expectations of sound corporate
governance practices by proactively determining and adopting the most appropriate corporate
governance arrangements.
ASX Listing Rule 4.10.3 requires listed companies to disclose in their Annual Report the extent to which
they have complied with the ASX Best Practice Recommendations of the ASX Corporate Governance
Council in the reporting period. A description of the Company’s main corporate governance practices
is set out below. The Corporate Governance Statement is current as at 30 June 2015, and has been
approved by the Board of Directors. Where a recommendation has not been followed, that fact is
disclosed, together with the reasons for the departure. All these practices, unless otherwise stated,
were in place for the entire year. They comply with the ASX Corporate Governance Principles and
Recommendations (3rd edition).
For further information on corporate governance policies adopted by the Company, refer to the
corporate governance section of our website: www.bulletinresources.com.
1.
Compliance with Best Practice Recommendations
The table below summaries the Company’s compliance with the Corporate Governance Council’s
Recommendations:
Principle # ASX Corporate Governance Council Recommendations
Reference
Comply
Principle 1 Lay solid foundations for management and oversight
1.1 A listed entity should disclose:
2(a)
Yes
(a) the respective roles and responsibilities of its board and
management; and
(b) those matters expressly reserved to the board and those
delegated to management.
1.2 A listed entity should:
2(b), 3(b)
Yes
(a) undertake appropriate checks before appointing a person,
or putting forward to security holders a candidate for election,
as a director; and
(b) provide security holders with all material information in its
possession relevant to a decision on whether or not to elect
or re-elect a director.
1.3 A listed entity should have a written agreement with each
director and senior executive setting out the terms of their
appointment.
1.4 The company secretary of a listed entity should be
accountable directly to the board, through the chair, on all
matters to do with the proper functioning of the board.
1.5 A listed entity should:
(a) have a diversity policy which includes requirements for the
board or a relevant committee of the board to set measurable
objectives for achieving gender diversity and to assess
annually both the objectives and the entity’s progress in
achieving them;
3(b)
2(e)
6(c)
Yes
Yes
Yes
27
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2015
Principle # ASX Corporate Governance Council Recommendations
Reference
Comply
6(c)
Yes
1.5
(b) disclose that policy or a summary of it; and
(c) disclose as at the end of each reporting period the
measurable objectives for achieving gender diversity set by
the board or a relevant committee of the board in accordance
with the entity’s diversity policy and its progress towards
achieving them, and either:
(1) the respective proportions of men and women on the
board, in senior executive positions and across the whole
organisation (including how the entity has defined “senior
executive” for these purposes); or
(2) if the entity is a “relevant employer” under the Workplace
Gender Equality Act, the entity’s most recent “Gender
Equality Indicators”, as defined in and published under that
Act.
1.6 A listed entity should:
2(h), 3(b)
Yes
(a) have and disclose a process for periodically evaluating
the performance of the board, its committees and individual
directors; and
(b) disclose, in relation to each reporting period, whether a
performance evaluation was undertaken in the reporting
period in accordance with that process.
1.7 A listed entity should:
(a) have and disclose a process for periodically evaluating
the performance of its senior executives; and
(b) disclose, in relation to each reporting period, whether a
performance evaluation was undertaken in the reporting
period in accordance with that process.
3(b),
Remuneration
report
Yes
Principle 2 Structure the Board to add value
2.1 The board of a listed entity should:
3(b)
No
(a) have a nomination committee which:
(1) has at least three members, a majority of whom are
independent directors; and
(2) is chaired by an independent director,
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period, the number of times
the committee met throughout the period and the individual
attendances of the members at those meetings; or
(b) if it does not have a nomination committee, disclose that
fact and the processes it employs to address board
succession issues and to ensure that the board has the
appropriate balance of skills, knowledge, experience,
independence and diversity to enable it to discharge its duties
and responsibilities effectively.
2.2 A listed entity should have and disclose a board skills matrix
setting out the mix of skills and diversity that the board
currently has or is looking to achieve in its membership.
2(b)
Yes
28
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2015
Principle # ASX Corporate Governance Council Recommendations
Reference
Comply
2.3 A listed entity should disclose:
2(b), 2(d)
Yes
(a) the names of the directors considered by the board to be
independent directors;
(b) if a director has an interest, position, association or
relationship of the type described in Box 2.3 (which appears
on page 16 of the ASX Recommendations and is entitled
“Factors relevant to assessing the independence of a
director”) but the board is of the opinion that it does not
compromise the independence of the director, the nature of
the interest, position, association or relationship in question
and an explanation of why the board is of that opinion; and
(c) the length of service of each director.
2.4 A majority of the board of a listed entity should be
2(d)
independent directors.
2.5 The chair of the board of a listed entity should be an
independent director and, in particular, should not be the
same person as the CEO of the entity.
2.6 A listed entity should have a program for inducting new
directors and provide appropriate professional development
opportunities for directors to develop and maintain the skills
and knowledge needed to perform their role as directors
effectively.
Principle 3 Act ethically and responsibly
3.1 A listed entity should:
(a) have a code of conduct for its directors, senior executives
and employees; and
(b) disclose that code or a summary of it.
Principle 4 Safeguard integrity in financial reporting
4.1 The board of a listed entity should:
(a) have an audit committee which:
(1) has at least three members, all of whom are non-
executive directors and a majority of whom are independent
directors; and
(2) is chaired by an independent director, who is not the chair
of the board,
and disclose:
(3) the charter of the committee;
(4) the relevant qualifications and experience of the members
of the committee; and
(5) in relation to each reporting period, the number of times
the committee met throughout the period and the individual
attendances of the members at those meetings; or
(b) if it does not have an audit committee, disclose that fact
and the processes it employs that independently verify and
safeguard the integrity of its corporate reporting, including the
processes for the appointment and removal of the external
auditor and the rotation of the audit engagement partner.
2(b), 2(c), 2(d)
No
No
3(b)
Yes
6(a)
Yes
3(a)
No
29
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2015
Principle # ASX Corporate Governance Council Recommendations
Reference
Comply
4.2 The board of a listed entity should, before it approves the
entity’s financial statements for a financial period, receive
from its CEO and CFO a declaration that, in their opinion, the
financial records of the entity have been properly maintained
and that the financial statements comply with the appropriate
accounting standards and give a true and fair view of the
financial position and performance of the entity and that the
opinion has been formed on the basis of a sound system of
risk management and internal control which is operating
effectively.
4.3 A listed entity that has an AGM should ensure that its external
auditor attends its AGM and is available to answer questions
from security holders relevant to the audit.
Principle 5 Make timely and balanced disclosure
5.1 A listed entity should:
(a) have a written policy for complying with its continuous
disclosure obligations under the Listing Rules; and
(b) disclose that policy or a summary of it.
Principle 6 Respect the rights of security holders
5(c)
Yes
4(a)
Yes
4(b)
Yes
6.1 A listed entity should provide information about itself and its
4(a), 4(b)
governance to investors via its website.
6.2 A listed entity should design and implement an investor
5(a), 5(b)
Yes
Yes
relations program to facilitate effective two-way
communication with investors.
6.3 A listed entity should disclose the policies and processes it
has in place to facilitate and encourage participation at
meetings of security holders.
4(a), 4(b)
Yes
6.4 A listed entity should give security holders the option to
4(a), 4(b)
Yes
receive communications from, and send communications to,
the entity and its security registry electronically.
Principle 7 Recognise and manage risk
7.1 The board of a listed entity should:
3(a)
No
(a) have a committee or committees to oversee risk, each of
which:
(1) has at least three members, a majority of whom are
independent directors; and
(2) is chaired by an independent director,
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period, the number of times
the committee met throughout the period and the individual
attendances of the members at those meetings; or
(b) if it does not have a risk committee or committees that
satisfy (a) above, disclose that fact and the processes it
the entity’s risk management
employs
framework.
for overseeing
30
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2015
Principle # ASX Corporate Governance Council Recommendations
Reference
Comply
7.2 The board or a committee of the board should:
(a) review the entity’s risk management framework at least
annually to satisfy itself that it continues to be sound; and
(b) disclose, in relation to each reporting period, whether such
a review has taken place.
7.3 A listed entity should disclose:
(a) if it has an internal audit function, how the function is
structured and what role it performs; or
(b) if it does not have an internal audit function, that fact and
the processes it employs for evaluating and continually
improving the effectiveness of its risk management and
internal control processes.
7.4 A listed entity should disclose whether it has any material
exposure
social
sustainability risks and, if it does, how it manages or intends
to manage those risks.
to economic, environmental and
5(a), 5(b), 5(d)
Yes
3(a)
No
5(a)
Yes
Principle 8 Remunerate fairly and responsibly
8.1 The board of a listed entity should:
3(b)
No
(a) have a remuneration committee which:
(1) has at least three members, a majority of whom are
independent directors; and
(2) is chaired by an independent director,
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period, the number of times
the committee met throughout the period and the individual
attendances of the members at those meetings; or
(b) if it does not have a remuneration committee, disclose that
fact and the processes it employs for setting the level and
for directors and senior
composition of remuneration
executives and ensuring
is
appropriate and not excessive.
remuneration
that such
8.2 A listed entity should separately disclose its policies and
practices regarding the remuneration of non-executive
directors and the remuneration of executive directors and
other senior executives.
8.3 A listed entity which has an equity-based remuneration
into
scheme should:
(a) have a policy on whether participants are permitted to
enter
the use of
derivatives or otherwise) which limit the economic risk of
participating in the scheme; and
(b) disclose that policy or a summary of it.
transactions (whether
through
3(b),
Remuneration
Report
3(b),
Remuneration
Report
Yes
Yes
2.
THE BOARD OF DIRECTORS
2(a) Roles and Responsibilities of the Board
The role of the Board is to be accountable to the shareholders and investors for the overall
performance of the Company and takes responsibility for monitoring the Company’s business
and affairs and setting its strategic direction, establishing and overseeing the Company’s financial
position provide leadership for and the supervision of the Company’s senior management.
31
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2015
2.
THE BOARD OF DIRECTORS (continued)
The Board is responsible for:
•
Appointing, evaluating, rewarding and if necessary the removal of the Chief Executive
Officer ("CEO") and senior management;
•
•
•
•
•
•
•
•
•
Development of corporate objectives and strategy with management and approving plans,
new investments, major capital and operating expenditures and major funding activities
proposed by management;
Monitoring actual performance against defined performance expectations and reviewing
operating information to understand at all times the state of the health of the Company;
Assessing the effectiveness of senior management’s implementation of systems and the
management of business risks, safety and occupational health, environmental issues and
community development;
Satisfying itself that the financial statements of the Company fairly and accurately set out
the financial position and financial performance of the Company for the period under
review;
Satisfying itself that there are appropriate reporting systems and controls in place to assure
the Board that proper operational, financial, compliance, risk management and internal
control process are in place and functioning appropriately.
Approving and monitoring financial and other reporting;
Assuring itself that appropriate audit arrangements are in place;
Ensuring that the Company acts legally and responsibly on all matters and approving the
Company’s policies on risk oversight and management, internal compliance and control,
Code of Conduct, and legal compliance and assuring itself that the Company practice is
consistent with that Code; and other policies; and
Reporting to and advising shareholders.
Other than as specifically reserved to the Board, responsibility for the day-to-day management
of the Company’s business activities is delegated to the Chief Executive Officer and Executive
Management.
2(b) Board Composition
The Directors determine the composition of the Board employing the following principles:
•
the Board, in accordance with the Company’s constitution must comprise a minimum of
three Directors;
•
•
•
•
the roles of the Chairman of the Board and of the Chief Executive Officer should be
exercised by different individuals;
the majority of the Board should comprise Directors who are non-executive;
the Board should represent a broad range of qualifications, experience and expertise
considered of benefit to the Company; and
the Board must be structured in such a way that it has a proper understanding of, and
competency in, the current and emerging issues facing the Company, and can effectively
review management’s decisions.
The Board is currently comprised of three non-executive Directors, two of which are also directors
of the major shareholder, Matsa Resources Limited, and the remaining director is also the second
largest shareholder. Details of the members of the Board, their experience, expertise,
qualifications, terms of office and independent status are set out in the Directors’ Report of the
Annual Report under the heading “Directors”. The Board composition is such that the Company
does not comply with Recommendation 2.1 as there are no independent non-executive directors.
On 12 January 2015 Mr Michael Fitzgerald, a non-executive director, resigned from the Board.
The Company’s constitution requires one-third of the Directors (or the next lowest whole number)
to retire by rotation at each Annual General Meeting (AGM). The Directors to retire at each AGM
32
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2015
2.
THE BOARD OF DIRECTORS (continued)
are those who have been longest in office since their last election. Where Directors have served
for equal periods, they may agree amongst themselves or determine by lot who will retire. A
Director must retire in any event at the third AGM since he or she was last elected or re-elected.
Retiring Directors may offer themselves for re-election.
A Director appointed as an additional or casual Director by the Board will hold office until the next
AGM when they may be re-elected.
The Chief Executive Officer is not subject to retirement by rotation and, along with any Director
appointed as an additional or casual Director, is not to be taken into account in determining the
number of Directors required to retire by rotation. The Company does not have a Chief Executive
Officer.
2(c) Chairman and Chief Executive Officer
leadership of the Board;
The Chairman is responsible for:
•
•
•
the efficient organisation and conduct of the Board’s functions;
the promotion of constructive and respectful relations between Board members and
between the Board and management;
•
•
•
contributing to the briefing of Directors in relation to issues arising at Board meetings;
facilitating the effective contribution of all Board members; and
committing the time necessary to effectively discharge the role of the Chairman.
The Board does not comply with the ASX Recommendations 2.2 and 2.3 in that the Chairman is
not an independent Director (refer to 2(d) Independent Directors). Any executive duties are
carried out by the Chairman or other board members as required. The Board has considered this
matter and decided that the non-compliance does not effect the operation of the Company.
The Chief Executive Officer is responsible for:
•
•
implementing the Company’s strategies and policies; and
running the affairs of the Company under the delegated authority from the Board.
The roles of the Chairman and the Chief Executive Officer are not separate with any executive
duties being undertaken by the Chairman.
2(d)
Independent Directors
The Company recognises that independent directors are important in assuring shareholders that
the Board is properly fulfilling its role and is diligent in holding senior management accountable
for its performance. The Board assesses each of the directors against specific criteria to decide
whether they are in a position to exercise independent judgment.
Directors of Buletin Resources Limited are considered to be independent when they are
independent of management and free from any business or other relationship that could
materially interfere with, or could reasonably be perceived to materially interfere with, the exercise
of their unfettered and independent judgement.
In making this assessment, the Board considers all relevant facts and circumstances.
Relationships that the Board will take into consideration when assessing independence are
whether a Director:
•
•
is a substantial shareholder of the Company or an officer of, or otherwise associated directly
with, a substantial shareholder of the Company;
is employed, or has previously been employed in an executive capacity by the Company or
another Company member, and there has not been a period of at least three years between
ceasing such employment and serving on the Board;
33
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2015
2.
THE BOARD OF DIRECTORS (continued)
•
•
•
has within the last three years been a principal of a material professional advisor or a
material consultant to the Company or another Company member, or an employee
materially associated with the service provided;
is a material supplier or customer of the Company or other Company member, or an officer
of or otherwise associated directly or indirectly with a material supplier or customer; or
has a material contractual relationship with the Company or another Company member
other than as a Director.
The Company does not comply with ASX Recommendation 2.4. The Company has two executive
Directors and one non-executive Director. In accordance with the definition of independence
above the Company is considered to have no independent directors.
The Board believes that the Company is not of sufficient size to warrant the appointment of more
independent non-executive Directors in order to meet the ASX recommendation of maintaining a
majority of independent non-executive Directors. The Company maintains a mix of Directors from
different backgrounds with complementary skills and experience.
2(e) Company Secretary
The appointment, performance, review, and where appropriate, the removal of the Company
Secretary is a key responsibility of the Board. All directors have access to the Company Secretary
who is accountable directly to the Board, through the Chairman, on all matters to do with the
proper functioning of the Board.
2(f) Avoidance of conflicts of interest by a Director
In order to ensure that any interests of a Director in a particular matter to be considered by the
Board are known by each Director, each Director is required by the Company to disclose any
relationships, duties or interests held that may give rise to a potential conflict. Directors are
required to adhere strictly to constraints on their participation and voting in relation to any matters
in which they may have an interest.
2(g) Board access to information and independent advice
Directors are able to access members of the management team at any time to request relevant
information.
There are procedures in place, agreed by the Board, to enable Directors, in furtherance of their
duties, to seek independent professional advice at the company’s expense.
2(h) Review of Board performance
The performance of the Board is reviewed regularly by the Chairman. The Chairman conducts
performance evaluations which involve an assessment of each Board member’s performance
against specific and measurable qualitative and quantitative performance criteria. The
performance criteria against which directors and executives are assessed is aligned with the
financial and non-financial objectives of Bulletin Resources Limited. Directors whose
performance is consistently unsatisfactory may be asked to retire.
3.
BOARD COMMITTEES
3(a) Audit Committee
Given the size and scale of the Company’s operations the full Board undertakes the role of the
Audit Committee. The Audit Committee does not comply with ASX Recommendation 4.1 as all
directors are non-executive and none are considered to be independent Directors (refer 2(d)).
The role and responsibilities of the Audit Committee are summarised below.
The Audit Committee is responsible for reviewing the integrity of the Company’s financial
reporting and overseeing the independence of the external auditors. The Board sets aside time
to deal with issues and responsibilities usually delegated to the Audit Committee to ensure the
34
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2015
3.
BOARD COMMITTEES (continued)
integrity of the financial statements of the Consolidated Entity and the independence of the
auditor.
The Board reviews the audited annual and half-year financial statements and any reports which
accompany published financial statements and recommends their approval to the members. The
Board also reviews annually the appointment of the external auditor, their independence and their
fees.
The Board is also responsible for establishing policies on risk oversight and management. The
Company has not formed a separate Risk Management Committee due to the size and scale of
its operations.
External Auditors
The Company’s policy is to appoint external auditors who clearly demonstrate quality and
independence. The performance of the external auditor is reviewed annually and applications for
tender of external audit services are requested as deemed appropriate, taking into consideration
assessment of performance, existing value and tender costs. It is BDO Audit (WA) Pty Ltd’s policy
to rotate engagement partners on listed companies at least every five years.
An analysis of fees paid to the external auditors, including a break-down of fees for non-audit
services, is provided in the notes to the financial statements in the Annual Report.
There is no indemnity provided by the Company to the auditor in respect of any potential liability
to third parties.
The external auditor is requested to attend the annual general meeting and be available to answer
shareholder questions about the conduct of the audit and preparation and content of the audit
report.
3(a) Audit Committee
The directors are satisfied that the provision of any non-audit services during the year by the
auditors is compatible with the general standard of independence for auditors imposed by the
Corporations Act.
The directors are satisfied that the provision of any non-audit services does not compromise the
auditor’s independence requirements of the Corporations Act because the services were
provided by persons who were not involved in the audit.
3(b) Remuneration and Nomination Committee
The role of a Remuneration Committee is to assist the Board in fulfilling its responsibilities in
respect of establishing appropriate remuneration levels and incentive policies for employees.
The Board has not established a separate Remuneration Committee due to the size and scale of
its operations. This does not comply with Recommendation 2.1 however the Board as a whole
takes responsibility for such issues.
The responsibilities include setting policies for senior officers remuneration, setting the terms and
conditions for the CEO, reviewing and making recommendations to the Board on the Company’s
incentive schemes and superannuation arrangements, reviewing the remuneration of both
executive and non-executive directors and undertaking reviews of the CEO’s performance. There
is currently no CEO or any senior officers for the Company and the structure outlined reflects the
general nature of how the Board would make such appointments.
The Company has structured the remuneration of its senior executives such that it comprises a
fixed salary and statutory superannuation. From time to time senior executives are issued options.
The Company believes that by remunerating senior executives in this manner it rewards them for
performance and aligns their interests with those of shareholders and increases the Company’s
performance.
35
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2015
3.
BOARD COMMITTEES (continued)
Non-executive directors are paid their fees out of the maximum aggregate amount approved by
shareholders for non-executive director remuneration.
The remuneration received by directors and executives in the current period is contained in the
“Remuneration Report” within the Directors’ Report of the Annual Report.
4.
TIMELY AND BALANCED DISCLOSURE
4(a) Shareholder communication
The Company believes that all shareholders should have equal and timely access to material
information about the Company including its financial situation, performance, ownership and
governance. The Company’s “ASX Disclosure Policy” encourages effective communication with
its shareholders by requiring that Company announcements:
•
•
•
•
be expressed in a clear and objective manner to allow investors to assess the impact of
the information when making investment decisions;
be factual and subject to internal vetting and authorisation before issue;
not omit material information;
be made in a timely manner;
•
•
be in compliance with ASX Listing Rules continuous disclosure requirements; and
be placed on the Company’s website promptly following release.
Shareholders are encouraged to participate in general meetings. Copies of addresses by the
Chairman or Chief Executive Officer are disclosed to the market and posted on the Company’s
website. The Company’s external auditor attends the Company’s annual general meeting to
answer shareholder questions about the conduct of the audit, the preparation and content of the
audit report, the accounting policies adopted by the Company and the independence of the
auditor in relation to the conduct of the audit.
4(b) Continuous disclosure policy
The Company is committed to ensuring that shareholders and the market are provided with full
and timely information and that all stakeholders have equal opportunities to receive externally
available information issued by the Company. The Company’s “ASX Disclosure Policy” described
in 4(a) reinforces the Company’s commitment to continuous disclosure and outline management’s
accountabilities and the processes to be followed for ensuring compliance.
The policy also contains guidelines on information that may be price sensitive. The Company
Secretary has been nominated as the person responsible for communications with the ASX. This
role includes responsibility for ensuring compliance with the continuous disclosure requirements
with the ASX Listing Rules and overseeing and coordinating information disclosure to the ASX.
5.
RECOGNISING AND MANAGING RISK
The Board is responsible for ensuring there are adequate policies in relation to risk management,
compliance and internal control systems. The Company’s policies are designed to ensure
strategic, operational, legal, reputation and financial risks are identified, assessed, effectively and
efficiently managed and monitored to enable achievement of the Company’s business objectives.
A written policy in relation to risk oversight and management has been established (“Risk
Management Policy”). Considerable importance is placed on maintaining a strong control
environment. There is an organisation structure with clearly drawn responsibilities.
5(a) Board oversight of the risk management system
The Board considers risks and discusses risk management at each Board meeting. Review of
the risk management framework is an on-going process rather than an annual formal review. The
Company’s main areas of risk include:
36
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2015
5.
RECOGNISING AND MANAGING RISK (continued)
5(a) Board oversight of the risk management system (continued)
joint venture management;
• exploration;
• security of tenure including native title risk;
•
• new project acquisitions;
• environment;
• occupational health and safety;
• government policy changes;
•
• commodity prices;
•
•
• continuous disclosure obligations.
retention of key staff;
financial reporting; and
funding;
The principle aim of the system of internal control is the management of business risks, with a
view to enhancing the value of shareholders' investments and safeguarding assets. Although no
system of internal control can provide absolute assurance that the business risks will be fully
mitigated, the internal control systems have been designed to meet the Company's specific
needs and the risks to which it is exposed.
The Board is also responsible for identifying and monitoring areas of significant business risk.
Internal control measures currently adopted by the Board include:
a.
regular reporting to the Board in respect of operations and the Company’s financial position;
and
regular reports to the Board by appropriate members of the management team and/or
independent advisers, outlining the nature of particular risks and highlighting measures
which are either in place or can be adopted to manage or mitigate those risks.
b.
The Company’s risk management system is evolving. It is an on-going process and it is
recognised that the level and extent of the risk management system will evolve commensurate
with the development and growth of the Company’s activities.
5(b) Risk management roles and responsibilities
The Board is responsible for approving and reviewing the Company’s risk management strategy
and policy. Executive management is responsible for implementing the Board approved risk
management strategy and developing policies, controls, processes and procedures to identify
and manage risks in all of the Company’s activities.
The Board is responsible for satisfying itself that management has developed and implemented
a sound system of risk management and internal control.
5(c) Chief Executive Officer and Chief Financial Officer Certification
The Chief Executive Officer and Chief Financial Officer provide to the Board written certification
that in all material respects:
(a)
The Company’s financial statements present a true and fair view of the Company’s
financial condition and operational results and are in accordance with relevant accounting
standards;
(b) The statement given to the Board on the integrity of the Company’s financial statements is
founded on a sound system of risk management and internal compliance and controls
which implements the policies adopted by the Board; and
The Company’s risk management an internal compliance and control system is operating
efficiently and effectively in all material respects.
(c)
As there is currently no CEO appointed the Chairman fulfills this role.
37
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2015
5.
RECOGNISING AND MANAGING RISK (continued)
5(d)
Internal review and risk evaluation
Assurance is provided to the Board by executive management on the adequacy and
effectiveness of management controls for risk on a regular basis.
6. ETHICAL AND RESPONSIBLE DECISION MAKING
6(a) Code of Ethics and Conduct
The Board endeavours to ensure that the Directors, officers and employees of the Company act
with integrity and observe the highest standards of behaviour and business ethics in relation to
their corporate activities. The “Code of Conduct” sets out the principles, practices, and standards
of personal behaviour the Company expects people to adopt in their daily business activities.
All Directors, officers and employees are required to comply with the Code of Conduct. Senior
managers are expected to ensure that employees, contractors, consultants, agents and partners
under their supervision are aware of the Company’s expectations as set out in the Code of
Conduct.
All Directors, officers and employees are expected to:
(i) Comply with the law;
(ii) Act in the best interests of the Company;
(iii) Be responsible and accountable for their actions; and
(iv) Observe the ethical principles of fairness, honesty and truthfulness, including prompt
disclosure of positional conflicts.
6(b) Policy concerning trading in Company securities
The Company’s “Securities Trading Policy” applies to all directors, officers and employees. The
Securities Trading Policy adopted by the Board prohibits trading in shares by a Director, officer
or employee during certain blackout periods (in particular, prior to release of quarterly, half
yearly or annual results) except in exceptional circumstances and subject to procedures set out
in the Policy.
Outside of these blackout periods, a Director, officer or employee must first obtain clearance in
accordance with the Guidelines before trading in shares. For example:
• A Director must receive clearance from the Chairman before he may buy or sell shares.
•
If the Chairman wishes to buy or sell shares he must first obtain clearance from the Board.
• Other officers and employees must receive clearance from the Managing Director before
they may buy or sell shares.
Directors, officers and employees must observe their obligations under the Corporations Act
2001 not to buy or sell shares if in possession of price sensitive non-public information and that
they do not communicate price sensitive non-public information to any person who is likely to
buy or sell shares or communicate such information to another party.
The Securities Trading Policy is available in the Corporate Governance Plan on the Company’s
website at www.bulletinresources.com.
6(c) Policy concerning diversity
The Company encourages diversity in employment throughout the Company and in the
composition of the Board, as a mechanism to ensure that the Company is able to draw on a
variety of skill, talent and previous experiences in order to maximise the Company’s performance.
38
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2015
6.
ETHICAL AND RESPONSIBLE DECISION MAKING (CONTINUED)
The Company’s “Diversity Policy” has been implemented to ensure the Company has the benefit
of a diverse range of employees with different skills, experience, age, gender, race and cultural
backgrounds, and that the Company reports its results on an annual basis in achieving
measurable targets which are set by the Board as part of implementation of the Diversity Policy.
The Diversity Policy is available on the Corporate Governance section of the Company’s website.
Given the size of the Company, the Company has no employees other than the Board and the
Company Secretary/CFO and as such no measurable objectives or strategies have been set.
However the Company has disclosed below the number of female employees in the Company,
in senior executive positions and on the Board.
The Company currently has no females in senior executive positions or on the Board.
39
BULLETIN RESOURCES LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2015
NOTES
2015
$
2
7
21
9
Revenue from continuous operations
Listing and share registry expense
Depreciation
Professional fees
Directors fees
Directors termination payments
Exploration cost written off
Contract break fee
Legal fees
Administration expenses
Employee benefit expense
Share based payments expense
Audit fees & other services
Expenses from operations
Profit/(loss) from operations before income tax
expense
Income tax expense
Profit/(loss) after income tax expense
Other comprehensive income
Items that may be reclassified subsequently through
profit or loss
Net change in fair value of available-for-sale financial
assets
Total comprehensive loss for the year
Total comprehensive income/(loss) for the year
attributable to members of Bulletin Resources
Limited
Basic earnings/(loss) per share (cents)
18
Diluted earnings/(loss) per share (cents)
2014
$
2,508,881
2,508,881
(19,499)
(150,017)
(118,612)
(332,646)
(88,750)
(375,619)
(100,000)
(112,372)
(182,478)
(78,110)
-
(23,976)
(1,582,079)
27,727
27,727
(28,750)
(20,313)
(13,887)
(169,000)
-
(20,158)
-
(158,042)
(127,079)
(54,239)
(45,358)
(29,108)
(663,934)
(636,207)
926,802
-
(636,207)
-
926,802
(371,248)
(371,248)
-
-
(1,007,455)
926,802
(0.45)
(0.45)
0.70
0.70
The above statement of profit or loss and other comprehensive income should be read in conjunction
with the accompanying notes.
40
BULLETIN RESOURCES LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 30 JUNE 2015
NOTES
2015
$
2014
$
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Available-for-sale financial assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Mine property and development
Plant & equipment
Exploration expenditure capitalised
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Finance lease
Deferred revenue
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Provisions
Deferred revenue
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
3
4
5
6
8
7
10
11
12
13
14
12
14
15
16
17
857,951
810,652
8,986
883,924
2,561,513
1,059,136
1,690,719
299,463
3,049,318
5,610,831
790,441
9,305
21,985
567,642
1,389,283
359,570
1,732,358
2,091,928
3,481,211
2,129,620
847,070
4,750
-
1,255,172
851,820
-
209,256
259,635
1,724,063
2,575,883
56,250
-
-
-
56,250
68,850
-
68,850
125,100
2,450,783
14,490,189
(323,440)
(12,037,129)
2,129,620
13,849,255
2,450
(11,400,922)
2,450,783
The above statement of financial position should be read in conjunction with the accompanying notes.
41
BULLETIN RESOURCES LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2015
Issued Capital Accumulated
Reserves
Total
$
Losses
$
$
$
Balance at 1 July 2013
13,347,704
(12,715,524)
390,250
1,022,430
Profit attributable to members
Total comprehensive income for
the year
Transactions with owners in their
capacity as owners
Issue of shares
Share issue costs
Share based payments
Transfer of reserve on expiry of
options
-
-
926,802
926,802
516,417
(14,866)
-
-
-
-
-
387,800
(387,800)
-
-
-
-
-
926,802
926,802
516,417
(14,866)
-
-
Balance at 30 June 2014
13,849,255
(11,400,922)
2,450
2,450,783
Issued Capital Accumulated
Reserves
Total
$
Losses
$
$
$
Balance at 1 July 2014
13,849,255
(11,400,922)
2,450
2,450,783
Loss attributable to members
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners
-
-
(636,207)
(371,248)
(1,007,455)
(636,207)
(371,248)
(1,007,455)
Issue of shares
Share issue costs
Share based payments
682,130
(41,196)
-
-
-
-
-
-
45,358
682,130
(41,196)
45,358
Balance at 30 June 2015
14,490,189
(12,037,129)
(323,440)
2,129,620
The above statement of changes in equity should be read in conjunction with the accompanying notes.
42
BULLETIN RESOURCES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and related debtors
Payments to suppliers and employees
Return of Rehabilitation and tenement bonds
Research & development and other tax refunds
Interest received
Contract break fee
Net cash outflows in operating activities (Note 3b)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
Payments for exploration expenditure
Partial sale of Halls Creek Gold Project (49% interest) (Note 2b)
Payments for other joint venture activities
Payments to joint venture for plant and equipment
Payments to joint venture for exploration
Payments to joint venture for mine properties
Net cash Inflows(outflows) by investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Capital raising costs
Gold loan (Note 14)
Net cash inflows by financing activities
INCREASE/(DECREASE)
IN CASH AND CASH
NET
EQUIVALENTS
Net Increase in cash equivalent held
Cash and cash equivalents at the beginning of the financial year (Note
3)
Cash and cash equivalents at the end of the financial year (Note 3)
2015
47
(575,211)
-
-
25,815
-
(549,349)
2014
$
46,750
(1,618,035)
153,142
75,406
9,106
(100,000)
(1,433,631)
-
(14,373)
-
(56,312)
(1,501,775)
(8,743)
(799,501)
(2,380,704)
-
-
1,500,000
-
-
-
-
1,500,000
682,130
(41,196)
2,300,000
2,940,934
516,417
(14,866)
-
501,551
10,881
567,920
847,070
279,150
857,951
847,070
The above statement of cash flow should be read in conjunction with the accompanying notes.
43
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The financial report is a general purpose financial report that has been prepared in accordance with
Australian Accounting Standards, Australian Accounting
Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
Bulletin Resources Limited is a for-profit entity for the purpose of preparing the financial statements.
Bulletin Resources Limited is a listed public company, incorporated and domiciled in Australia.
The financial statements of Bulletin Resources Limited also comply with International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
The following is a summary of the material accounting policies adopted by the Company in the
preparation of the financial report. The accounting policies have been consistently applied, unless
otherwise stated.
Basis of Preparation
The accounting policies set out below have been consistently applied to all years presented.
Reporting Basis and Conventions
The financial report has been prepared on an accruals basis and is based on historical costs modified
by the revaluation of selected financial assets for which the fair value basis of accounting has been
applied.
Statement of Compliance
The financial report complies with Australian Accounting Standards as issued by the Australian
Accounting Standards Board which include International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board.
Adoption of new accounting 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 annual reporting periods beginning on 1 July 2014. The adoption of these new and revised
Standards and Interpretations did not have any effect on the financial position or performance of the
Group.
The Australian Standards and Interpretations mandatory for reporting periods beginning on or after 1
July 2014, adopted include the following. Adoption of these Standards and Interpretations did not have
any effect on the financial position or the performance of the Group.
44
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Reference
Title
Summary
Application Date of
Standard *
Application Date for
Consolidated Entity *
1 January 2014
1 July 2014
AASB 2012-3
AASB 2013-3
Amendments to
Australian
Accounting
Standards –
Offsetting
Financial Assets
and Financial
Liabilities
Amendments to
AASB 136 –
Recoverable
Amount
Disclosures for
Non-Financial
Assets
AASB 1031
Materiality
.AASB 2014-1
Part A - Annual
Improvements
2010 – 2012
Cycle
Amendments to
Australian
Accounting
Standards - Part
A
Annual
Improvements to
IFRSs 2010 –2012
Cycle
Instruments:
Presentation
AASB 2012-3 adds application guidance to AASB 132
Financial
address
inconsistencies identified in applying some of the offsetting
criteria of AASB 132, including clarifying the meaning of
“currently has a legally enforceable right of set-off” and that
some gross settlement systems may be considered
equivalent to net settlement.
to
AASB 2013-3 amends the disclosure requirements in AASB
136 Impairment of Assets. The amendments include the
requirement to disclose additional information about the
fair value measurement when the recoverable amount of
impaired assets is based on fair value less costs of disposal.
1 January 2014
1 July 2014
The revised AASB 1031 is an interim standard that cross-
references to other Standards and the Framework (issued
December 2013) that contain guidance on materiality.
AASB 1031 will be withdrawn when references to AASB
1031 in all Standards and Interpretations have been
removed.
AASB 2014-1 Part C issued in June 2014 makes amendments
to eight Australian Accounting Standards to delete their
references to AASB 1031. The amendments are effective
from 1 July 2014*.
Standards arising from the issuance by the International
Accounting Standards Board
International
Annual
Financial
Improvements to IFRSs 2010–2012 Cycle and Annual
Improvements to IFRSs 2011–2013 Cycle.
(IASB) of
Standards
Reporting
(IFRSs)
Annual Improvements to IFRSs 2010–2012 Cycle addresses
the following items:
• AASB 2 - Clarifies the definition of 'vesting conditions'
and 'market condition' and introduces the definition of
'performance condition' and 'service condition'.
• AASB 3 - Clarifies the classification requirements for
contingent consideration in a business combination by
removing all references to AASB 137.
• AASB 8 - Requires entities to disclose factors used to
identify the entity's reportable segments when
operating segments have been aggregated. An entity is
also required to provide a reconciliation of total
reportable segments' asset to the entity's total assets.
• AASB 116 & AASB 138 - Clarifies that the determination
of accumulated depreciation does not depend on the
selection of the valuation technique and that it is
calculated as the difference between the gross and net
carrying amounts.
• AASB 124 - Defines a management entity providing
KMP services as a related party of the reporting entity.
The amendments added an exemption from the
detailed disclosure requirements in paragraph 17 of
AASB 124 for KMP services provided by a management
entity. Payments made to a management entity in
respect of KMP services should be separately disclosed.
1 January 2014
1 July 2014
1 January 2014
1 July 2014
45
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Reference
Title
Summary
AASB 2013-9
AASB 2014-1
Part A - Annual
Improvements
2011–2013
Cycle
Amendments to
Australian
Accounting
Standards –
Conceptual
Framework,
Materiality and
Financial
Instruments
Amendments to
Australian
Accounting
Standards - Part
A
Annual
Improvements to
IFRSs 2011–2013
Cycle
Interpretation
21
Levies
The Standard contains three main parts and makes
amendments to a number Standards and Interpretations.
Part B makes amendments to particular Australian
Accounting Standards to delete references to AASB 1031
and also makes minor editorial amendments to various
other standards.
Part C makes amendments to a number of Australian
Accounting Standards, including incorporating Chapter 6
Hedge Accounting into AASB 9 Financial Instruments.
Annual Improvements to IFRSs 2011–2013 Cycle addresses
the following items:
• AASB13 - Clarifies that the portfolio exception in
paragraph 52 of AASB 13 applies to all contracts within
the scope of AASB 139 or AASB 9, regardless of whether
they meet the definitions of financial assets or financial
liabilities as defined in AASB 132.
• AASB140 - Clarifies that judgment
is needed to
determine whether an acquisition of
investment
property is solely the acquisition of an investment
property or whether it is the acquisition of a group of
assets or a business combination in the scope of AASB
3 that includes an investment property. That judgment
is based on guidance in AASB 3.
This Interpretation confirms that a liability to pay a levy is
only recognised when the activity that triggers the payment
occurs. Applying the going concern assumption does not
create a constructive obligation.
Application Date of
Standard *
Application Date for
Consolidated Entity *
1 January 2014
1 July 2014
1 January 2014
1 July 2014
1 January 2014
1 July 2014
The following standards and interpretations have been issued by the AASB, but are not yet effective
and have not been adopted by the Group for the period ending 30 June 2015. The Directors have not
yet determined the impact of new and amended accounting standards and interpretations applicable
1 July 2015.
46
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Reference
Title
Summary
AASB 9
Financial
Instruments
On 24 July 2014 The IASB issued the final version of IFRS 9
which replaces IAS 39 and includes a logical model for
classification and measurement, a single, forward-looking
‘expected
impairment model and a substantially-
reformed approach to hedge accounting.
loss’
IFRS 9 is effective for annual periods beginning on or after 1
January 2018. However, the Standard is available for early
application. The own credit changes can be early applied in
isolation without otherwise changing the accounting for
financial instruments.
Application Date of
Standard *
1 January 2018
Application Date
for Consolidated
Entity *
1 July 2018
The final version of IFRS 9 introduces a new expected-loss
impairment model that will require more timely recognition of
expected credit losses. Specifically, the new Standard requires
entities to account for expected credit losses from when
financial instruments are first recognised and to recognise full
lifetime expected losses on a more timely basis.
included
The AASB is yet to issue the final version of AASB 9. A revised
version of AASB 9 (AASB 2013-9) was issued in December
the new hedge accounting
2013 which
requirements, including changes to hedge effectiveness
testing, treatment of hedging costs, risk components that can
be hedged and disclosures.
AASB 9 includes requirements for a simplified approach for
classification and measurement of financial assets compared
with the requirements of AASB 139.
The main changes are described below.
a. Financial assets that are debt instruments will be classified
based on (1) the objective of the entity's business model
for managing the financial assets; (2) the characteristics of
the contractual cash flows.
b. Allows an irrevocable election on initial recognition to
in equity
losses on
present gains and
investments
instruments that are not held for trading
in other
comprehensive income. Dividends in respect of these
investments that are a return on investment can be
recognised in profit or loss and there is no impairment or
recycling on disposal of the instrument.
c. Financial assets can be designated and measured at fair
value through profit or loss at initial recognition if doing so
eliminates or significantly reduces a measurement or
recognition inconsistency that would arise from measuring
assets or liabilities, or recognising the gains and losses on
them, on different bases.
•
d. Where the fair value option is used for financial liabilities
the change in fair value is to be accounted for as follows:
The change attributable to changes in credit risk
are presented in other comprehensive income
(OCI).
The remaining change is presented in profit or loss.
•
47
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Application Date of
Standard *
1 January 2018
Application Date
for Consolidated
Entity *
1 July 2018
1 January 2016
1 July 2016
1 January 2016
1 July 2016
Reference
Title
Summary
AASB 9 (cont.)
Financial
Instruments
AASB 2014-3
AASB 2014-4
Amendments to
Australian
Accounting
Standards –
Accounting for
Acquisitions of
Interests in Joint
Operations
[AASB 1 & AASB
11]
Clarification of
Acceptable
Methods of
Depreciation
and
Amortisation
(Amendments
to
AASB 116 and
AASB 138)
AASB 9 also removes the volatility in profit or loss that was
caused by changes in the credit risk of liabilities elected to be
measured at fair value. This change in accounting means that
gains caused by the deterioration of an entity’s own credit risk
on such liabilities are no longer recognised in profit or loss.
Consequential amendments were also made to other
standards as a result of AASB 9, introduced by AASB 2009-11
and superseded by AASB 2010-7, AASB 2010-10 and AASB
2014-1 – Part E.
AASB 2014-7 incorporates the consequential amendments
arising from the issuance of AASB 9 in Dec 2014.
AASB 2014-8 limits the application of the existing versions of
AASB 9 (AASB 9 (December 2009) and AASB 9 (December
2010)) from 1 February 2015 and applies to annual reporting
periods beginning on after 1 January 2015.
AASB 2014-3 amends AASB 11 to provide guidance on the
accounting for acquisitions of interests in joint operations in
which the activity constitutes a business. The amendments
require:
(a) the acquirer of an interest in a joint operation in which the
activity constitutes a business, as defined in AASB 3 Business
Combinations, to apply all of the principles on business
combinations accounting in AASB 3 and other Australian
Accounting Standards except for those principles that conflict
with the guidance in AASB 11; and
(b) the acquirer to disclose the information required by AASB
3 and other Australian Accounting Standards for business
combinations.
This Standard also makes an editorial correction to AASB 11.
AASB 116 and AASB 138 both establish the principle for the
basis of depreciation and amortisation as being the expected
pattern of consumption of the future economic benefits of an
asset.
The IASB has clarified that the use of revenue-based methods
to calculate the depreciation of an asset is not appropriate
because revenue generated by an activity that includes the
use of an asset generally reflects factors other than the
consumption of the economic benefits embodied in the asset.
The amendment also clarified that revenue is generally
presumed to be an inappropriate basis for measuring the
consumption of the economic benefits embodied in an
intangible asset. This presumption, however, can be rebutted
in certain limited circumstances.
48
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Reference
Title
Summary
AASB 15
Revenue from
Contracts with
Customers
AASB 2014-10 Amendments to
Australian
Accounting
Standards – Sale
or Contribution
of Assets
between an
Investor and its
Associate or
Joint Venture
In May 2014, the IASB issued IFRS 15 Revenue from Contracts
with Customers, which replaces
IAS 11 Construction
Contracts, IAS 18 Revenue and related Interpretations (IFRIC
13 Customer Loyalty Programmes, IFRIC 15 Agreements for
the Construction of Real Estate, IFRIC 18 Transfers of Assets
from Customers and SIC-31 Revenue—Barter Transactions
Involving Advertising Services).
The core principle of IFRS 15 is that an entity recognises
revenue to depict the transfer of promised goods or services
to customers in an amount that reflects the consideration to
which the entity expects to be entitled in exchange for those
goods or services. An entity recognises revenue in accordance
with that core principle by applying the following steps:
(a) Step 1: Identify the contract(s) with a customer
(b) Step 2: Identify the performance obligations in the
contract
(c) Step 3: Determine the transaction price
(d) Step 4: Allocate the transaction price to the performance
obligations in the contract
(e) Step 5: Recognise revenue when (or as) the entity satisfies
a performance obligation
Early application of this standard is permitted.
AASB 2014-5 incorporates the consequential amendments to
a number Australian Accounting Standards
(including
Interpretations) arising from the issuance of AASB 15.
The International Accounting Standards Board (IASB) in its
July 2015 meeting decided to confirm its proposal to defer the
effective date of IFRS 15 (the international equivalent of AASB
15) from 1 January 2017 to 1 January 2018. The amendment
to give effect to the new effective date for IFRS 15 is expected
to be issued in September 2015. At this time, it is expected
that the AASB will make a corresponding amendment to AASB
15, which will mean that the application date of this standard
for the Group will move from 1 July 2017 to 1 July 2018.
AASB 2014-10 amends AASB 10 Consolidated Financial
Statements and AASB 128 to address an inconsistency
between the requirements in AASB 10 and those in AASB 128
(August 2011), in dealing with the sale or contribution of
assets between an investor and its associate or joint venture.
The amendments require:
(a) a full gain or loss to be recognised when a transaction
involves a business (whether it is housed in a subsidiary or
not); and
(b) a partial gain or loss to be recognised when a transaction
involves assets that do not constitute a business, even if these
assets are housed in a subsidiary.
AASB 2014-10 also makes an editorial correction to AASB 10.
AASB 2014-10 applies to annual reporting periods beginning
on or after 1 January 2016. Early adoption permitted.
Application Date of
Standard *
Application Date
for Consolidated
Entity *
1 January 2018
1 July 2018
1 January 2016
1 July 2016
49
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Reference
Title
Summary
AASB 2015-1
Amendments to
Australian
Accounting
Standards –
Annual
Improvements
to Australian
Accounting
Standards 2012–
2014 Cycle
AASB 2015-2
Amendments to
Australian
Accounting
Standards –
Disclosure
Initiative:
Amendments to
AASB 101
is
The subjects of the principal amendments to the Standards
are set out below:
AASB 5 Non-current Assets Held for Sale and Discontinued
Operations:
• Changes in methods of disposal – where an entity
reclassifies an asset (or disposal group) directly from being
held for distribution to being held for sale (or visa versa), an
entity shall not follow the guidance in paragraphs 27–29 to
account for this change.
AASB 7 Financial Instruments: Disclosures:
• Servicing contracts - clarifies how an entity should apply the
guidance in paragraph 42C of AASB 7 to a servicing contract
to decide whether a servicing contract
‘continuing
involvement’ for the purposes of applying the disclosure
requirements in paragraphs 42E–42H of AASB 7.
• Applicability of the amendments to AASB 7 to condensed
interim financial statements - clarify that the additional
disclosure required by the amendments to AASB 7
Disclosure–Offsetting Financial Assets and Financial Liabilities
is not specifically required for all interim periods. However,
the additional disclosure is required to be given in condensed
interim financial statements that are prepared in accordance
with AASB 134 Interim Financial Reporting when its inclusion
would be required by the requirements of AASB 134.
AASB 119 Employee Benefits:
• Discount rate: regional market issue - clarifies that the high
quality corporate bonds used to estimate the discount rate
for post-employment benefit obligations
should be
denominated in the same currency as the liability. Further it
clarifies that the depth of the market for high quality
corporate bonds should be assessed at the currency level.
AASB 134 Interim Financial Reporting:
• Disclosure of information ‘elsewhere in the interim financial
report’ -amends AASB 134 to clarify the meaning of disclosure
of information ‘elsewhere in the interim financial report’ and
to require the inclusion of a cross-reference from the interim
financial statements to the location of this information.
The Standard makes amendments to AASB 101 Presentation
of Financial Statements arising from the IASB’s Disclosure
Initiative project. The amendments are designed to further
encourage companies to apply professional judgment in
determining what information to disclose in the financial
statements. For example, the amendments make clear that
materiality applies to the whole of financial statements and
that the inclusion of immaterial information can inhibit the
usefulness of financial disclosures. The amendments also
clarify that companies should use professional judgment in
determining where and
is
presented in the financial disclosures.
in what order
information
Application Date
of Standard *
Application Date
for Consolidated
Entity *
1 January 2016
1 July 2016
1 January 2016
1 July 2016
50
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Reference
Title
Summary
The Standard completes the AASB’s project to remove
Australian guidance on materiality from Australian
Accounting Standards.
AASB 2015-3
Amendments to
Australian
Accounting
Standards
arising from the
Withdrawal of
AASB 1031
Materiality
*
Designates the beginning of the applicable annual reporting period unless otherwise stated.
Application Date of
Standard *
Application Date
for Consolidated
Entity *
1 July 2015
1 July 2015
Going Concern
At 30 June 2015, Bulletin Resources Limited has cash and cash equivalent assets and available-for-
sale financial assets of $1,741,875 (30 June 2014: $2,102,242). It incurred an operating loss of $636,207
for the year ended 30 June 2015 (30 June 2014: profit of $926,802).
As at 30 June 2015, the Company had a 20% interest in the Nicolsons Gold Project in which it is a
participating party.
Subsequent to 30 June 2015, the following events have occurred:
(i) On 7 September 2015 the Group announced that the first gold pour had occurred at the Nicolsons
Gold Project following successful completion of mine development and processing plant
commissioning in the prior month.
(ii) On 7 August 2015 the Group announced that it had entered into a separate loan funding agreement
for a sum of $600,000 to aid the Group in funding its share of the remaining development costs of
the Nicolsons Gold Project as it entered the production phase. The loan attracts an interest rate of
12% per annum and is repayable no later than 31 December 2017.
(iii) In conjunction with this loan, the Groups major shareholder Matsa Resources Limited, has also
entered into a Deed of Guarantee and Indemnity with the lender to guarantee repayment of the
loan to a maximum of $350,000.
Based on the above the preparation of these financial statements on a going concern basis is
appropriate.
Should the cost of the Nicolsons Gold Project redevelopment and ramp-up of production be greater than
expected or there are delays in commencement of production and sale of product the Company will be
required to raise additional finance through debt or equity in order to meet its commitments under its
current debt facility and/or for working capital. If the Company is unable to do so there is a material
uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern and
therefore whether it will realise its assets and extinguish its liabilities in the normal course of business
and at the amounts stated in this annual report.
51
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Accounting Policies
(a) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured. The following specific recognition criteria must
also be met before revenue is recognised:
Interest Income
Interest income is recognised as it accrues.
Asset sales
The gross proceeds of asset sales not originally purchased for the intention of resale are included
as revenue at the date an unconditional contract of sale is signed.
(b) Exploration and Evaluation Expenditure
Exploration and evaluation costs are written off in the year they are incurred apart from acquisition
costs which are carried forward where right of tenure of the area of interest is current and they are
expected to be recouped through sale or successful development and exploitation of the area of
interest or, where exploration and evaluation activities in the area of interest have not reached a
stage that permits reasonable assessment of the existence of economically recoverable reserves.
Where an area of interest is abandoned or the Directors decide that it is not commercial, any
accumulated acquisition costs in respect of that area are written off in the financial period the
decision is made. Each area of interest is also reviewed at the end of each accounting period and
accumulated costs are written off to the extent that they will not be recoverable in the future.
(c) Financial Instruments
Recognition
Financial instruments are initially measured at cost on trade date, which includes transaction costs,
when the related contractual rights or obligations exist. Subsequent to initial recognition these
instruments are measured as set out below.
Financial assets at fair value through profit and loss
A financial asset is classified in this category if acquired principally for the purpose of selling in the
short term or if so designated by management and within the requirements of AASB 139:
Recognition and Measurement of Financial Instruments. Derivatives are also categorised as held
for trading unless they are designated as hedges. Realised and unrealised gains and losses arising
from changes in the fair value of these assets are included in the income statement in the period in
which they arise.
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 other category. 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.
52
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
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 balance 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.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market and are stated at amortised cost using the effective interest rate
method.
Financial liabilities
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less
principal payments and amortisation.
Fair value
Due to short term nature of receivables and payables disclosed in the financial statements, their
carrying amount is assumed to approximate their fair value.
Impairment of Financial Assets
The Group assesses at each balance date whether a financial asset or group of financial assets is
impaired.
Available-for-sale investments
If there is objective evidence that an available-for-sale investment is impaired, an amount
comprising the difference between its cost and its current fair value, less any impairment loss
previously recognised in profit or loss, is transferred from equity to the statement of comprehensive
income. Reversals of impairment losses for equity instruments classified as available-for-sale are
not recognised in profit. Reversals of impairment losses for debt instruments are reversed through
profit or loss if the increase in an instrument’s fair value can be objectively related to an event
occurring after the impairment loss was recognised in profit or loss.
Loans and receivables
Trade receivables, loans, and other receivables are recorded at amortised cost less impairment.
(d) Impairment of Assets
At each reporting date, the Company reviews the carrying values of its tangible and intangible
assets to determine whether there is any indication that those assets have been impaired. If such
an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value
less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the
asset’s carrying value over its recoverable amount is expensed to the income statement.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
Where it is not possible to estimate the recoverable amount of an individual asset, the Company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
53
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
(e) Cash and Cash Equivalents
Cash and short-term deposits in the statement of financial position comprise cash at bank and in
hand, and short-term deposits.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and cash
equivalents as defined above, net of outstanding bank overdrafts.
(f) Earnings per Share
Basic earnings per share is determined by dividing the operating profit or loss after income tax by
the weighted average number of ordinary shares outstanding during the financial year, adjusted for
bonus elements in ordinary shares issued during the year.
Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted
for:
• costs of servicing equity (other than dividends) and preference share dividends;
•
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 revenue 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.
(g) Property, Plant and Equipment
Plant and equipment is stated at historical cost less accumulated depreciation and any impairment
in value.
Capital work-in-progress is stated at cost and comprises all costs directly attributable to bringing
the assets under construction ready to their intended use. Capital work-in-progress is transferred
to property, plant and equipment at cost on completion.
Depreciation is calculated on a straight-line basis over the estimated useful life of the asset, or
where appropriate, over the estimated life of the mine.
Plant and equipment, office furniture and computer equipment is depreciated using the diminishing
value method at rates between 10% and 67%.
Impairment
The carrying value of plant and equipment are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable.
For an asset that does not generate largely independent cash inflows, the recoverable amount is
determined for the cash-generating unit to which the asset belongs.
If any such indication exists and where the carrying values exceed the estimated recoverable
amount, the assets or cash-generating units are written down to their recoverable amount. The
recoverable amount of plant and equipment is the greater 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
54
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
value using pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset.
An item of property, plant and equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset.
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 item) is included in the income statement in the
period the item is derecognised.
(h) Mine Properties and Development
Expenditure on the acquisition and development of mine properties within an area of interest are
carried forward at cost separately for each area of interest. Accumulated expenditure is amortised
over the life of the area of interest to which such costs relate on a production output basis.
A regular review is undertaken of each area of interest to determine the appropriateness of
continuing to carry forward costs in relation to that area of interest.
Impairment
The carrying value of capitalised mine properties and development expenditure is assessed for
impairment whenever facts and circumstances suggest that the carrying amount of the asset may
exceed its recoverable amount.
Recoverable amount 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. When the
carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.
(i)
Income Tax
Current Tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in
respect of the taxable profit or tax loss for the period. It is calculated using tax rates and tax laws
that have been enacted or substantively enacted by reporting date. Current tax for current and prior
periods is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).
Deferred Tax
Deferred tax is accounted for using the comprehensive balance sheet liability method in respect of
temporary differences arising from differences between the carrying amount of assets and liabilities
in the financial statements and the corresponding tax base of those items.
In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred
tax assets are recognised to the extent that it is probable that sufficient taxable amounts will be
available against which deductible temporary differences or unused tax losses and tax offsets can
be utilised. However, deferred tax assets and liabilities are not recognised if the temporary
differences giving rise to them arise from the initial recognition of assets and liabilities (other than
as a result of a business combination) which affects neither taxable income nor accounting profit.
Furthermore, a deferred tax liability is not recognised in relation to taxable temporary differences
arising from goodwill.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in
subsidiaries, branches, associates and joint ventures except where the consolidated entity is able
to control the reversal of the temporary differences and it is probable that the temporary differences
will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary
55
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
differences associated with these investments and interests are only recognised to the extent that
it is probable that there will be sufficient taxable profits against which to utilise the benefits of the
temporary differences and they are expected to reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the
period(s) when the asset and liability giving rise to them are realised or settled, based on tax rates
(and tax laws) that have been enacted or substantively enacted by reporting date. The
measurement of deferred tax liabilities and assets reflects the tax consequences that would follow
from the manner in which the Company expects, at the reporting date, to recover or settle the
carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same
taxation authority and the Company intends to settle its current tax assets and liabilities on a net
basis.
Current and Deferred Tax for the Period
Current and deferred tax is recognised as an expense or income in the income statement, except
when it relates to items credited or debited directly to equity, in which case the deferred tax is also
recognised directly in equity, or where it arises from the initial accounting for a business
combination, in which case it is taken into account in the determination of goodwill or excess.
(j) Employee Entitlements
Provision is made for the Company’s liability for employee benefits arising from services rendered
by employees to Reporting Date. Employee benefits that are expected to be settled within 1 year
have been measured at the amounts expected to be paid when the liability is settled, plus related
on-costs. Employee benefits payable later than 1 year have been measured at the present value of
the estimated future cash outflows to be made for those benefits.
(k) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the
amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances
the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the
expense. Receivables and payables in the statement of financial position are shown inclusive of
GST. Cash flows are stated on a gross basis.
(l) Provisions
Provisions are recognised when the Company has a present obligation, the future sacrifice of
economic benefits is probable, and the amount of the provision can be measured reliably.
The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at reporting date, taking into account the risks and uncertainties surrounding
the obligation. Where a provision is measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, the receivable is recognised as an asset if it is virtually certain that
recovery will be received and the amount of the receivable can be measured reliably.
Provision for Rehabilitation Costs
The Group is required to decommission and rehabilitate mines and processing sites at the end of
their producing lives to a condition acceptable to the relevant authorities.
56
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
The expected cost of any approved decommissioning or rehabilitation programme, discounted to
its net present value, is provided when the related environmental disturbance occurs. The cost is
capitalised when it gives rise to future benefits, whether the rehabilitation activity is expected to
occur over the life of the operation or at the time of closure. The capitalised cost is amortised over
the life of the operation and the increase in the net present value of the provision for the expected
cost is included in financing expenses. Expected decommissioning and rehabilitation costs are
based on the discounted value of the estimated future cost of detailed plans prepared for each site.
Where there is a change in the expected decommissioning and restoration costs, the value of the
provision and any related asset are adjusted and the effect is recognised in profit or loss on a
prospective basis over the remaining life of the operation.
The estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for changes
in legislation, technology or other circumstances. Cost estimates are not reduced by potential
proceeds from the sale of assets or from plant clean up at closure.
(m) Share Based Payments
Equity settled transactions
The Company provides benefits to employees (including senior executives) of the Company in the
form of share-based payments, whereby employees render services in exchange for shares or
rights over shares (equity-settled transactions).
The cost of these equity-settled transactions with employees is measured by reference to the fair
value of the equity instruments at the date at which they are granted. The fair value is determined
by using the Black-Scholes option pricing model, further details of which are given in the
remuneration report.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of Bulletin Resources Limited.
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:
the extent to which the vesting period has expired; and
(i)
(ii) the Company’s best estimate of the number of equity instruments that will ultimately vest. 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 income
statement charge or credit 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.
57
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
(n) Comparatives
Certain comparatives have been reclassified to be consistent with the current year’s disclosures.
(o) 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 Bulletin Resources Limited.
(p) Contributed Equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds. Incremental
costs directly attributable to the issue of new shares or options are deducted from equity.
(q) Leases
Finance Leases
Leases which effectively transfer substantially all the risks and benefits incidental to ownership of
the leased item to the Group are capitalised at the inception of the lease at the fair value of the
leased property or, if lower, at the present value of the minimum lease payments.
Lease payments are apportioned between the finance charges and reduction of the lease liability
so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges
are charged directly to profit and loss.
Capitalised leased assets are depreciated over the estimated useful life of the asset or where
appropriate, over the estimated life of the mine.
The cost of improvements to or on leasehold property is capitalised, disclosed as leasehold
improvements, and amortised over the unexpired period of the lease or the estimated useful lives
of the improvements, whichever is the shorter.
Operating Leases
Lease payments for operating leases, where substantially all the risks and benefits remain with the
lessor, are charged as expenses in the periods in which they are incurred.
Lease incentives under operating leases are recognized as a liability. Lease payments received
reduce the liability.
(r) Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is
based on the first-in, first-out principle.
(s) Gold Loan
The own use exemption included in AASB 139 Financial Instruments: Recognition and
Measurement has been used and this facility has been recognised as deferred revenue and as
such will be repaid by the physical delivery of gold in accordance with the loan conditions and
required delivery profile. Physical deliveries contracted to occur for a period in excess of 12 months
from balance date have been disclosed as non-current.
58
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Subsequent to initial recognition, the company will continue to assess the facility and determine if
any facts or circumstances have arisen that would require the treatment of this facility to be altered.
(t) Trade and other receivables
Trade and other receivables, which generally have 30-60 day terms, are recognised initially at fair
value and subsequently measured at amortised cost using the effective interest rate method, less
an allowance for impairment.
Collectability of trade and other receivables is reviewed on an ongoing basis. Individual debts that
are known to be uncollectible are written off when identified. An impairment allowance is
recognised when there is objective evidence that the Consolidated Entity will not be able to collect
the receivable. Financial difficulties of the debtor, default payments or debts more than 60 days
overdue are considered objective evidence of impairment. The amount of the impairment loss is
the receivable carrying amount compared to the present value of estimated future cash flows,
discounted at the original effective interest rate.
(u) Trade and other payables
Trade and other payables are carried at amortised cost. They 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 obligated to make future payments in respect of the purchase of these goods
and services. The amounts are unsecured and are usually paid within 30 days of recognition.
(v) Business Combinations
The acquisition method of accounting is used to account for all business combinations.
Consideration is measured at the fair value of the assets transferred, liabilities incurred and equity
interests issued by the Company on acquisition date. Consideration also includes the acquisition
date fair values of any contingent consideration arrangements, any pre-existing equity interests in
the acquiree and share-based payment awards of the acquiree that are required to be replaced in
a business combination. The acquisition date is the date on which the Company obtains control of
the acquiree. Where equity instruments are issued as part of the consideration, the value of the
equity instruments is their published market price at the acquisition date unless, in rare
circumstances it can be demonstrated that the published price at acquisition date is not fair value
and that other evidence and valuation methods provide a more reliable measure of fair value.
Identifiable assets acquired and liabilities and contingent liabilities assumed in business
combinations are, with limited exceptions, initially measured at their fair values at acquisition date.
Goodwill represents the excess of the consideration transferred and the amount of the non-
controlling interest in the acquiree over fair value of the identifiable net assets acquired. If the
consideration and non-controlling interest of the acquiree is less than the fair value of the net
identifiable assets acquired, the difference is recognised in profit or loss as a bargain purchase
price, but only after a reassessment of the identification and measurement of the net assets
acquired.
For each business combination, the Company measures non-controlling interests at either fair value
or at the non-controlling interest's proportionate share of the acquiree's identifiable net assets.
Acquisition-related costs are expensed when incurred. Transaction costs arising on the issue of
equity instruments are recognised directly in equity.
Where settlement of any part of the cash consideration is deferred, the amounts payable in future
are discounted to present value at the date of exchange using the entity's incremental borrowing
rate as the discount rate.
59
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
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 estimate 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:
Non-recognition of Deferred tax assets
The Company has applied judgement and has not yet recognised in the Statement of Financial Position
the potential benefit of deferred tax assets relating to tax losses based upon the uncertainty of
generating sufficient taxable profits as at 30 June 2015 to recoup these losses. The company will
continue to assess this moving forward as it starts to generate positive cash flows from its project from
production activities.
Recoverability of capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a
number of factors, including whether the Company decides to exploit the related lease itself, or, if not,
whether it successfully recovers the related exploration and evaluation asset through sale.
Factors that could impact the future recoverability include the level of reserves and resources, future
technological changes, costs of drilling and production, production rates, future legal changes (including
changes to environmental restoration obligations) and changes to commodity prices.
Impairment of available-for-sale investments
In determining the amount of impairment of financial assets, the Group has made judgements in
identifying financial assets whose decline in fair value below cost is considered “significant” or
“prolonged”. A significant decline is assessed based on the historical volatility of the share price.
The higher the historical volatility, the greater the decline in fair value required before it is likely to be
regarded as significant. A prolonged decline is based on the length of time over which the share price
has been depressed below cost. A sudden decline followed by immediate recovery is less likely to be
considered prolonged compared to a sustained fall of the same magnitude over a longer period.
The Group considers a less than a 10% decline in fair value is unlikely to be considered significant for
investments actively traded in a liquid market, whereas a decline in fair value of greater than 20% will
often be considered significant. For less liquid investments that have historically been volatile (standard
deviation greater than 25%), a decline of greater than 30% is usually considered significant.
Generally, the Group does not consider a decline over a period of less than three months to be
prolonged. However, where the decline in fair value is greater than six months for liquid investments
and 12 months for illiquid investments, it is usually considered prolonged.
Impairment of property, plant and equipment
Property, plant and equipment is reviewed for impairment if there is any indication that the carrying
amount may not be recoverable. Where a review for impairment is conducted, the recoverable amount
is assessed by reference to the higher of “value in use” (being net present value of expected future
cash flows of the relevant cash generating unit) and “fair value less costs to sell.”
In determining the value in use, future cash flows are based on:
• estimates of the quantities of ore reserves and mineral resources for which there is a high
degree of confidence of economic extraction;
• future production levels;
• future commodity prices; and
60
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
• future cash costs of production and capital expenditure.
Variations to the expected cash flows, and the timing thereof, could result in significant changes to any
impairment losses recognised, if any, which in turn could impact future financial results.
Mine rehabilitation provision
The Group assesses its mine rehabilitation provision on an annual basis in accordance with the
accounting policy stated in note 1(l). Significant judgement is required in determining the provision for
mine rehabilitation as there are many transactions and other factors that will affect the ultimate liability
payable to rehabilitate the mine site. Factors that will affect this liability include future development,
changes in technology and changes in interest rates. When these factors change or become known in
the future, such differences will impact the mine rehabilitation provision in the period in which they
change or become known.
Impairment of capitalised mine development expenditure
The future recoverability of capitalised mine development expenditure is dependent on a number of
factors, including the level of proved, probable and inferred mineral resources, future technological
changes, which could impact the cost, future legal changes (including changes to environmental
restoration obligations) and changes to commodity prices.
The Consolidated Entity regularly reviews the carrying values of its mine development assets in the
context of internal and external consensus forecasts for commodity prices and foreign exchange
rates, with the application of appropriate discount rates for the assets concerned.
To the extent that capitalised mine development expenditure is determined not to be recoverable in the
future, this will reduce profit in the period in which this determination is made. Capitalised mine
development expenditure is assessed for recoverability in a manner consistent with property, plant and
equipment as described below. Refer to Note 2(h) for further discussion on the impairment assessment
process undertaken by the Consolidated Entity.
Joint venture treatment
The Group accounts for their share of the Nicolson’s Project by taking up their 20% share of Project
assets, liabilities, revenue and expenses under each relevant accounting standard mentioned in Note
1. The Group is able to measure their share of assets, liabilities, revenue and expenses through the
accounts of the Project Manager.
61
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
2. REVENUE
Gain on partial sale – Halls Creek Gold Project (a)(b)
R&D Tax Refund
Interest income
Other income
2015
$
-
-
27,680
47
27,727
2014
$
2,374,002
71,159
9,106
54,614
2,508,881
(a) On 11 April 2014, the Halls Creek Sale & Joint Venture Agreement with Pacific Niugini
Limited (ASX: PNR) was executed. The consideration consisted of $1.5M cash
17,678,472 fully paid shares in PNR. PNR takes over responsibility for the sole funding
of the project for the next 4 years or until an aggregate of $4.0M expenditure, as well as
the day to day the management of the project.
Notes
(b) The Gain on sale consists of:
Cash proceeds on settlement
Listed securities in Pacific Niugini Limited
Less:
Partial disposal – Net PP&E
Partial disposal – Exploration acquisition costs
Partial write-back – Restoration provision
6
7
10
12
3. CASH & CASH EQUIVALENTS
Cash & cash equivalents (a)
2014
$
1,500,000
1,255,171
(197,866)
(249,453)
66,150
2,374,002
2015
$
857,951
857,951
2014
$
847,070
847,070
(a) Cash at bank earns interest at floating rates based on a daily bank deposit rates.
Short-term deposits are made for varying periods of between one day and three months, depending on
the immediate cash requirements of the Company, and earn interest at respective short-term deposit
rates.
(b) Reconciliation of net cash used in operating activities to (loss) after income tax.
Profit/(Loss) after income tax
Gain on partial sale – Halls Creek Gold Project
Share based payments expense
Other non-cash provisions
Depreciation
Return of Rehabilitation and tenement bonds
(Increase)/Decrease in trade and other receivables
Increase/(Decrease) in trade and other payables
Net cash used in operating activities
2015
$
2014
$
(636,207)
926,802
-
45,358
-
20,313
-
4,750
16,437
(549,349)
(2,374,002)
-
(2,199)
150,017
153,142
(4,100)
(283,291)
(1,433,631)
62
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
4. TRADE & OTHER RECEIVABLES
Other receivables
Cash held in joint venture (i)
Other receivables – joint venture
2015
$
-
763,874
46,778
810,652
2014
$
4,750
-
-
4,750
(i)
The Company has cash held in the Nicolsons Joint Venture. As the cash is not readily
available as for use in the joint venture it is treated as a receivable.
5. INVENTORIES
Stores and spares at cost – joint venture
6. AVAILABLE-FOR-SALE FINANCIAL ASSETS
2015
$
8,986
8,986
2014
$
-
-
2015
$
2014
$
Listed equity securities – carried at fair value (a)(b)
883,924
1,255,171
883,924
1,255,171
(a) The Company holds shares in Pacific Niugini Limited (PNR), which is involved in exploration of
gold and base metals in Australia and Papua New Guinea and is the Company’s joint venture
partner in the Nicolsons Gold Project. PNR is listed on the Australian Securities Exchange.
At the end of the period the fair value of the investment was lower than the carrying value, the
Company has therefore recognised a fair value adjustment of $371,248 which has been recorded
within equity (30 June 2014: Nil).
7. PLANT AND EQUIPMENT
Motor Vehicles
$
Office
Equipment
$
Plant &
Machinery
$
Capital Work
in Progress
$
-
1,501,775
-
-
Total
$
209,256
1,501,775
-
(20,313)
190,922
-
-
(17,904)
173,018
1,501,775
1,690,719
3,314
-
-
(531)
2,783
Year ended 30 June 2015
Opening Net Book Value
Additions
Disposal
Net
Depreciation Charge
Closing
Amount
At 30 June 2015
Cost or Fair Value
Book
Accumulated Depreciation
Net Book Value
15,020
-
-
(1,878)
13,142
32,517
(19,375)
13,142
9,454
(6,671)
2,783
375,452
1,501,775
1,919,198
(202,434)
-
(228,479)
173,018
1,501,775
1,690,719
63
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
7. PLANT AND EQUIPMENT (continued)
Year ended 30 June 2014
Opening Net Book Value
Additions
Disposal
Disposal 49% interest -
Halls Creek Project (Note
2(b))
Depreciation Charge
Closing
Amount
At 30 June 2014
Cost or Fair Value
Book
Net
Accumulated Depreciation
Net Book Value
Motor Vehicles
$
Office
Equipment
$
Plant &
Machinery
$
Capital Work
in Progress
$
38,542
36,332
482,265
-
-
-
-
-
-
(14,431)
(9,091)
-
(33,018)
(183,435)
(107,908)
15,020
3,314
190,922
32,517
(17,497)
15,020
9,454
(6,140)
3,314
375,452
(184,530)
190,922
-
-
-
-
-
-
-
-
-
Total
$
557,139
-
-
(197,866)
(150,017)
209,256
417,423
(208,167)
209,256
8. MINE PROPERTY AND DEVELOPMENT
Development areas at cost
- Mine site establishment
Net carrying amount
Mine capital development
Accumulated amortisation
Net carrying amount
2015
$
-
465,162
465,162
593,974
-
593,974
Total mine properties and development
1,059,136
Movement in mine property and development
Development areas at cost
At 1 July
Transfer from exploration expenditure capitalised
Additions
At 30 June
Mine capital development
At 1 July
Additions
Net carrying amount
2015
$
-
259,635
205,527
465,162
-
593,974
593,974
2014
$
2014
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
During the period the Nicolsons Gold Project commenced redevelopment. At the end of the financial
year the redevelopment had yet to be completed and therefore there was no amortisation or impairment
charge for the year.
64
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
9. INCOME TAX
(a) Numerical reconciliation of income tax expense
to prima facie tax payable
Profit/(Loss) from ordinary activities before income tax
expense
Prima facie tax expense/(benefit) on profit/(loss) from
ordinary activities
at 30% (2014: 30%)
Tax effect of amounts which are not deductible
(taxable) in calculating taxable income
Share based payments
R&D refundable offset
Entertainment
Movement in unrecognised temporary differences
Tax losses utilised previously not recognised
Income Tax Expense
(b) Unrecognised temporary differences
Deferred Tax Assets (at 30%)
Impairment
Formation costs
Assets held for sale
Capital raising costs
Legal Fees
Accruals
Provisions
Carry forward tax losses
Deferred Tax Liabilities (at 30%)
Mine property and development
Mineral exploration
2015
$
2014
$
(636,207)
926,802
(190,862)
278,041
13,607
-
-
(177,255)
177,255
-
-
-
-
111,374
38,824
-
2,792
110,518
3,984,755
4,248,263
-
(21,348)
48
256,741
17,926
(274,667)
-
3,000
-
-
75,170
14,721
5,250
21,740
3,687,962
3,807,843
77,891
89,838
167,729
-
77,891
77,891
Net Deferred Tax Assets (at 30%)
4,080,535
3,729,953
The potential tax benefit will only be obtained if the relevant company derives future assessable income of a
nature and an amount sufficient to enable the benefit to be realised; and
i.
the relevant company continues to comply with the conditions for deductibility imposed by the law; and
ii. no changes in tax legislation adversely affect the relevant company in realising the benefit.
65
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
10. EXPLORATION EXPENDITURE CAPITALISED
Opening Balance
Acquisition of assets – joint venture
Transfer to Mine Property and Development
Disposal 49% interest - Halls Creek Project
Note
2(b)
2015
$
259,635
299,463
(259,635)
-
299,463
2014
$
506,889
2,199
-
(249,453)
259,635
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on
successful development and commercial exploitation, or alternatively, sale of the area of interest.
11. TRADE & OTHER PAYABLES
Trade payables (a)
Sundry creditors and accruals (b)
Trade & other payables – joint venture (a)
Sundry creditors and accruals – joint venture (b)
2015
$
3,101
50,647
693,359
43,334
790,441
2014
$
38,750
17,500
-
-
56,250
(a) Trade creditors are non-interest bearing and generally on 30 day terms.
(b) Sundry creditors and accruals are non-interest bearing and generally on 30 day terms.
Due to the short term nature of these payables, their carrying value approximates their fair value.
12. PROVISIONS
Current
Provision for annual leave – joint venture
Non-Current
Provision for Rehabilitation Costs
Opening Balance
Disposal 49% interest - Halls Creek Project
Additions
13. INTEREST BEARING LOANS
Current
Finance lease liability (i)
Note
2(b)
Note
2015
$
9,305
9,305
68,850
-
290,720
359,570
2015
$
21,895
21,895
2014
$
-
-
135,000
(66,150)
-
68,850
2014
$
-
-
(i)
Represents the Group’s share of the finance leases which have repayment terms of less than
12 months over motor vehicles at the Nicolsons Gold Project.
66
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
14. DEFERRED REVENUE
Note
Current
Deferred revenue (i)
Non-Current
Deferred revenue (i)
2015
$
567,642
567,642
1,732,358
1,732,358
2014
$
-
-
-
-
(i)
During the year the Company executed loan documentation with the Commonwealth Bank
of Australia (CBA) to provide the loan finance required by Bulletin towards meeting its share
of the redevelopment of the Nicolsons mine.
The loan finance has been structured as a gold prepayment facility as follows:
A gold prepay facility of $2.3 million repayable by the delivery of 1,641 ounces of
gold.
A hedge facility with the CBA for 3,695 ounces at a fixed price of $1,568 per ounce.
The prepayment facility and the hedge facility are for a period of 22 months
commencing in January 2016 and will be satisfied by the delivery of physical gold.
The loan is secured by a fixed and floating charge over the Company’ share of the
Nicolsons Gold Project.
15. ISSUED CAPITAL
(a) Share capital
Ordinary Shares
Opening balance
Movement during the year
Less share issue costs
Closing balance
2015
No
2014
No
2015
$
2014
$
128,567,761 111,353,862 13,849,255
682,130
(41,196)
174,043,034 128,567,761 14,490,189
17,213,899
-
45,475,273
-
13,347,704
516,417
(14,866)
13,849,255
67
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
15. ISSUED CAPITAL (CONTINUED)
(a) Movement of ordinary share capital
Date
Details
February
End of 2013 financial year
Non-renounceable rights issue
Share Issue Cost
1 July 2013
2 Aug 2013
2 Aug 2013
30 June 2014 End of 2014 financial year
28
2015
18 March 2015 Share Issue Cost
26 March 2015 Share Issue Cost
26 March 2015 Non-renounceable rights issue
27 March 2015 Placement
30 June 2015 End of 2015 financial year
Share Issue Cost
(b) Movement in options on issue
Beginning of the financial year
Options issued
Expired during the financial year (Note 20)
Issue Price
($)
0.03
Number
111,353,862
17,213,899
128,567,761
32,141,940
13,333,333
174,043,034
0.015
0.015
$
13,347,704
516,417
(14,866)
13,849,255
(4,545)
(23,500)
(13,151)
482,129
200,000
14,490,189
2015
No
2014
No
175,000
5,250,000
(175,000)
8,875,000
-
(8,700,000)
End of financial year
5,250,000
175,000
(c) Capital risk management
The Company’s objective when managing capital is to safeguard their ability to continue as a going
concern and to provide returns for shareholders and benefits for other stakeholders and to maintain
capital structure to reduce the cost of capital.
The net assets of the Company are equivalent to capital. Net capital is obtained through capital raisings
on the Australian Securities Exchange.
The Board of Directors monitors capital on an ad-hoc basis. No formal targets are in place for return on
capital or gearing ratios, as the Company has not derived any income from its mineral exploration and
currently has no debt facilities in place.
16. RESERVES
Equity settled transaction
Available-for-sale-reserve
2015
$
47,808
(371,248)
(323,440)
2014
$
2,450
-
2,450
68
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
16. RESERVES (continued)
Movements in Reserves
Equity settled transaction reserve
Balance at beginning of financial year
Share based payment
Transfer to accumulated losses
Balance at end of financial year
2,450
45,358
-
47,808
390,250
-
(387,800)
2,450
The equity settled transaction reserve records share-based payment transactions.
Available-for-sale reserve
Balance at beginning of financial year
Net change in fair value of available-for-sale financial assets
Balance at end of financial year
-
(371,248)
(371,248)
-
-
-
This reserve records the movements in the fair value of available-for-sale investments.
17. ACCUMULATED LOSSES
Balance at the beginning of the year
Net Profit/(loss) for the year
Transfer from share based payments reserve
Balance at the end of the year
18. EARNINGS/(LOSS) PER SHARE
2015
$
(11,400,922)
(636,207)
-
(12,037,129)
2014
$
(12,715,524)
926,802
387,800
(11,400,922)
The loss and weighted average number of ordinary shares
used in the calculation of loss per share are as follows:
Profit/(loss)
Basic earnings/(loss) per share (cents per share)
Weighted average number of ordinary shares
2015
2014
(636,207)
926,802
(0.44)
0.73
142,957,534
127,058,597
Diluted loss per share
Diluted loss per share has not been calculated as the Company’s potential ordinary shares are not
considered dilutive and do not increase loss per share.
19. DIVIDENDS
No dividends were paid during the financial year. No recommendation for payment of dividends has
been made.
69
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
20. SHARE BASED PAYMENTS
(a) Employee Incentive Option Plan (EOP)
Shareholders approved the Bulletin Resources Limited EOP at the Annual General Meeting held on 3rd
December 2010. The EOP is designed to provide incentives, assist in the recruitment, reward, retention
of employees and key consultants, so as to provide opportunities (both present and future) to participate
directly in the equity of the Company.
Directors and full and part time employees of Bulletin Resources Limited are eligible to participate in
the Plan. Any issue of options to Directors under the Plan will be subject to Shareholder approval
pursuant to the provisions of the ASX Listing Rules and the Corporations Act 2001.
The Board may, at any time, grant options under the plan to any full or part time Employee or Director
of the Company or an associated body corporate. Each option issued under the Plan will be issued for
nil cash consideration and is exercisable into one share in the Company ranking equally in all respects
with the existing issued Shares in the Company. Options granted under the plan carry no dividend or
voting rights.
The exercise price and expiry date for options granted under the Plan will be determined by the Board
prior to the grant of the options. The options granted under the Plan may be subject to conditions on
exercise as may be fixed by the Directors prior to grant of the options (“Exercise Conditions”). The
contractual life of each option granted is at the discretion of the board but is normally in the range of
two to three years. There are no cash settlement alternatives.
Any restrictions imposed by the Directors must be set out in the offer for the options. An unexercised
option issued under the Plan will lapse (i) on its expiry date, (ii) if any Exercise Condition is unable to
be met and (iii) on the eligible participant ceasing employment with the Company, subject to certain
exceptions.
The following table summarises the number (No.) and the weighted average exercise price (WAEP) of,
and movements in, share options issued during the year to employees other than to key management
personnel which have been disclosed below.
2015
Number of
Options
2015
Weighted
Average
Exercise Price
$
2014
Number of
Options
2014
Weighted
Average
Exercise Price
$
Outstanding at the beginning of
the year
Granted
Exercised
Expired
Outstanding at year-end
Exercisable at year-end
175,000
-
-
(175,000)
-
-
All option issued under the EOP have now expired.
Directors and Executives Options
0.15
-
-
0.15
-
-
8,875,000
-
-
(8,700,000)
175,000
175,000
0.20
-
-
0.20
0.15
0.15
In addition to the EOP, the Company has issued options to Directors and Executives from time to time.
The terms and conditions of those options vary between option holders. There were 5,250,000 (2014:
nil) options issued to Directors or Executives during the financial year.
Options issued to the Chairman and Non-Executive Directors and Executives vest immediately.
70
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
20. SHARE BASED PAYMENT (CONTINUED)
Other relevant terms and conditions applicable to options granted as above include:
any Directors or Executives vested options that are unexercised by the anniversary of their grant
date will expire or, if they resigned, in accordance with their specific terms and conditions; and
upon exercise, these options and performance rights will be settled in ordinary shares of Bulletin
Resources Limited.
(a)
Summary of options issued to Directors and Executives
The following table illustrates the number (No.) and weighted average exercise prices (WAEP) of share
options issued.
Outstanding at 1 July
Granted during the year
Exercised during the year
Disposed of during the year
Expired during the year
Outstanding at 30 June
Exercisable at 30 June
2015
No.
-
5,250,000
-
-
-
5,250,000
5,250,000
2015
WAEP
$
-
0.03
-
-
-
0.03
0.03
2014
No.
-
-
-
-
-
-
-
2014
WAEP
$
-
-
-
-
-
-
-
The following options were issued during the year.
Directors
2015
4,500,000 options over ordinary shares with an exercise price of $0.03 each, exercisable upon
meeting the relevant conditions and until 30 November 2017.
Executives
2015
750,000 options over ordinary shares with an exercise price of $0.03 each exercisable upon meeting
the relevant conditions and until 30 November 2017.
(b) Valuation models of options issued to Directors and Executives
The fair value of the options is estimated at the date of grant using a Black & Scholes model. The
following table gives the assumptions made in determining the fair value of the options granted in the
year.
Dividend yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Expected life of options (years)
Option exercise price ($)
Share price at grant date ($)
Fair value at grant date (c)
2015
2014
Directors
Nil
115.15
2.40
3.00
0.03
0.015
Executives
Nil
115.15
2.40
3.00
0.03
0.015
Directors
-
-
-
-
-
-
Executives
-
-
-
-
-
-
8.63
8.63
-
-
71
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
20. SHARE BASED PAYMENT (CONTINUED)
The expected life of the options is based on historical data and is not necessarily indicative of exercise
patterns that may occur.
The expected volatility reflects the assumption that the historical volatility is indicative of future trends,
which may also not necessarily be the actual outcome.
2015
$
-
41,040
4,318
45,358
2015
$
2014
$
29,108
29,108
23,976
23,976
Employee Expenses
Share options granted in 2014
equity settled
-
Share options granted in 2015
- equity settled Key Management Personnel
- equity settled Other
Total expense recognised as employee costs
21. REMUNERATION OF AUDITOR
During the year, the following fees were received or due and
receivable by BDO for:
Audit and review of financial report
Other than their statutory audit duties, BDO Audit (WA) Pty Ltd
did not perform any other services for the Group during the
year.
22. RELATED PARTY TRANSACTIONS
(a) Directors
The names of persons who were Directors of Bulletin Resources Limited at any time during the financial
year were as follows: Paul Poli, Robert Martin, Frank Sibbel and Michael Fitzgerald.
(b) Other Related Party Transactions
Transactions between related parties are on commercial terms and conditions, no more favourable than
those available to other parties unless otherwise stated.
No amounts in addition to those disclosed in the remuneration report to the financial statements were
paid or payable to Directors of the Company in respect of the year ended 30 June 2015.
(c) Transactions with related parties
The following transactions occurred with related parties:
2015
During the financial year the Company executed a services agreement with Matsa Resources Limited
whereby Matsa would provide accounting and administrative services to the Company on a monthly
arms-length and commercial basis. Messrs Poli and Sibbel are directors of Matsa.
72
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
In the current period $78,741 has been charged to Bulletin for these services (2014: nil). At 30 June
2015 there was an outstanding balance of $12,482 (2014: nil) owing to Matsa.
2014
On 16 December 2013, the Company entered into a binding Sale and Joint Venture Term Sheet on the
Gold Projects with Matsa Resources Limited (“Matsa”). The term sheet terms included the Company
retaining the right to accept a superior offer, and if exercised a break fee of $100,000 being payable to
Matsa. On 10 February 2014, the Company formally terminated the agreement with Matsa and the
break fee became due and payable.
Compensation of Key Management Personnel
Short-term employment benefits
Post-employment benefits
Termination benefits
Share-based payment
2015
$
2014
$
219,828
3,411
-
41,040
264,279
477,971
15,925
88,750
-
582,646
The compensation disclosed above represents an allocation of the key management personnel’s
estimated compensation from the Group in relation to their services rendered to the Company.
23. SEGMENT REPORTING
The Group operates in the mineral exploration industry in Australia. For management purposes, the
Group is organised into one main operating segment which involves the exploration of minerals in
Australia. All of the Group’s activities are interrelated and discrete financial information is reported to
the Board (Chief Operating Decision Maker) as a single segment. Accordingly, all significant operating
decisions are based upon analysis of the Group as one segment. The financial results from this segment
are equivalent to the financial statements of the Group as a whole.
24. INVESTMENT IN CONTROLLED ENTITIES
Entity
Principal
Activity
Class of
Shares
Country of
incorporation
Equity holding
2014
2015
%
%
Lamboo
Operations Pty Ltd
Inactive
Ordinary
Australia
100
100
73
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s principal financial instruments comprise receivables, payables, unsecured loans, finance
lease contracts, cash and short-term deposits and available-for-sale investments.
Risk exposures and responses
The Group manages its exposure to key financial risks in accordance with the Group’s financial risk
management policy. The objective of the policy is to support the delivery of the Group’s financial targets
while protecting future financial security.
The Group enters into derivative transactions, principally gold hedges. The purpose is to manage the
commodity price risks arising from the Group’s operations. These derivatives provide economic hedges,
but do not qualify for hedge accounting and are based on limits set by the board. The main risks arising
from the Group’s financial instruments are interest rate risk, foreign currency risk, commodity risk, credit
risk, equity price risk and liquidity risk. The Group uses different methods to measure and manage
different types of risks to which it is exposed. These include monitoring levels of exposure to interest
rate, foreign exchange risk and assessments of market forecasts for interest rate, foreign exchange and
commodity prices. 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, financial liability and equity instrument are disclosed in note 1 to the
financial statements.
The accounting classification of each category of financial instruments as defined in note 1, and their
carrying amounts, are set out below:
a) Interest Rate Risk Exposures
The Group’s exposure to risks of changes in market interest rates relate primarily to the Group’s interest
bearing liabilities and cash balances. The level of debt is disclosed in note 14. The debt at 30 June
2015 is non-interest bearing but is a gold loan meaning repayments are in gold and therefore does not
attract an interest rate. The Group 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. The following sensitivity analysis is based on the interest rate
risk exposures in existence at the reporting date. The sensitivity analysis is for variable rate instruments.
The Group has performed a sensitivity analysis relating to its exposure to interest rate risk at 30 June
2015. This sensitivity analysis demonstrates the effect on the current year results and equity which
could result from a change in these risks. The effect on profit and equity as a result of changes in the
interest rate, with all other variables remaining constant would be as follows:
Change in Profit/(Loss)
- Increase in interest rate by 1%
- Decrease in interest rate by 1%
Change in equity
- Increase in interest rate by 1%
- Decrease in interest rate by 1%
2015
$
2014
$
6,362
(6,362)
6,362
(6,362)
4,068
(4,068)
4,068
(4,068)
74
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
The Group's exposure to interest rate risk and the effective weighted average interest rate for classes
of financial assets are set out below:
Financial Assets
Floating Interest
Rate
Fixed Interest
Less than 1 year
Non-interest
Bearing
Total
2015
$
2014
$
2015
$
2014
$
2015
$
2014
$
2015
$
2014
$
Cash
equivalents
and
Trade
receivables
and
cash
other
857,951
197,070
763,874
-
Total
Assets
Financial
1,621,825
197,070
-
-
-
650,000
-
-
857,951
847,070
-
46,778
4,750
810,652
4,750
650,000
46,778
4,750
1,668,603
851,820
The weighted average interest rate received on cash and cash equivalents by the Group was 2.10%
(2014: 2.24%).
b) Credit risk
The Group does not have any significant concentrations of credit risk. Credit risk is managed by the
Board and arises from cash and cash equivalents as well as credit exposure including outstanding
receivables and committed transactions. All cash balances held at banks are held at internationally
recognised institutions. The majority of receivables are immaterial to the Group. Given this, the credit
quality of financial assets that are neither past due or impaired can be assessed by reference to
historical information about default rates.
Credit risk arises from cash and cash equivalents and deposits with banks. The credit quality of financial
assets that are neither past due nor impaired can be assessed by reference to external credit ratings.
Financial assets that are neither past due and not impaired are as follows:
Cash and cash equivalents
Receivable - cash held in joint venture on behalf of
Bulletin
2015
$
857,951
763,874
2014
$
847,070
-
(c) Foreign currency risk
As a result of the price of gold being denominated in US dollars, the Group’s cash flows can be affected
by movements in the US dollar/Australian dollar exchange rate. The Consolidated Entity’s exposure to
foreign currency is however not considered to be significant.
(d) Commodity Price Risk
The Group’s revenues are exposed to commodity price fluctuations. The Group has entered into
derivative contracts to manage commodity price risk. The gold loan is not subject to fluctuation under
own use exemption. The Group has no exposure at the end of the financial year.
(e) Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash balances and access to equity
funding. The group’s exposure to the risk of changes in market interest rates relate primarily to cash
assets and floating interest rates. The Directors monitor the cash-burn rate of the Group on and on-
going basis against budget and the maturity profiles of financial assets and liabilities to manage its
liquidity risk.
75
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
As at the reporting date the Group had sufficient cash reserves to meet its requirements. The Group
has no access to credit standby facilities however, subsequent to the end of the financial year, it entered
into a loan funding arrangement with a third party.
The financial liabilities of the Group had at the reporting date were trade and other payables incurred in
the normal course of business as well as a secured gold loan with the Commonwealth Bank in respect
of the Group’s interest in the Nicolsons Gold Project.
Maturity analysis of financial assets and liabilities based on management’s expectation
The risk implied from the values shown in the table below, reflects a balanced view of cash inflows and
outflows. Leasing obligations, trade payables and other financial liabilities mainly originate from the
financing of assets used in ongoing operations such as property, plant, equipment and investments of
working capital e.g. inventories and trade receivables. To monitor existing financial assets and liabilities
as well as to enable effective controlling of future risks, management monitors its Group’s expected
settlement of financial assets and liabilities on an ongoing basis.
30 June 2015
Financial Assets
Cash and
equivalents
Trade and other
receivables
Other financial
assets
Financial Liabilities
Trade and other
payables
Finance lease
liabilities
Secured loan
Carrying
amount
Contractual
cash flows
6 mths or
less
6-12 mths
1-2 years 2-5 years
857,951
857,951
857,951
810,652
810,652
810,652
883,294
2,551,897
883,294
883,294
2,551,897 2,551,897
790,441
790,441
790,441
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21,895
2,300,000
3,112,336
21,895
2,300,000
3,112,336
10,948
-
801,389
10,947
-
567,642 1,293,662
578,589 1,293,662
-
438,696
438,696
76
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
30 June 2014
Financial Assets
Cash and
equivalents
Trade and other
receivables
Other financial
assets
Financial Liabilities
Trade and other
payables
Finance lease
liabilities
Secured loan
Equity Price Risk
Carrying
amount
Contractual
cash flows
6 mths or
less
6-12 mths
1-2 years 2-5 years
847,070
847,070
847,070
4,750
4,750
4,750
1,255,172
2,106,992
1,255,172 1,255,172
2,106,992 2,106,992
56,250
56,250
56,250
-
-
56,250
-
-
56,250
-
-
56,250
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other Equity price risk is the risk that the value of the instrument will fluctuate as a result of changes
in market prices (other than those arising from interest rate risk or currency risk), whether caused by
factors specific to an individual investment, its issuer or all factors affecting all instruments traded in
the market.
Investments are managed on an individual basis and material buy and sell decisions are approved by
the Board of Directors. The primary goal of the Group’s investment strategy is to maximise investment
returns.
The Group’s investments are solely in equity instruments. These instruments are classified as available-
for-sale and carried at fair value with fair value changes recognised directly in other comprehensive
income.
The following table details the breakdown of the investment assets and liabilities held by the Group:
Listed equities (Level 1 fair value
hierarchy)
Sensitivity analysis
Note
30 June 2015
$
30 June 2014
$
9
883,924
1,255,172
The Group’s equity investments are listed on the Australian Securities Exchange. A 10% increase in
stock prices at 30 June 2015 would have increased equity by $88,392 (2014: $125,517), an equal
change in the opposite direction would have decreased equity by an equal but opposite amount.
(f) Fair value measurements
For all financial assets and liabilities recognised in the statement of financial position, carrying amount
approximates fair value unless otherwise stated in the applicable notes.
77
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
Fair value hierarchy
The Group classifies assets and liabilities carried at fair value using a fair value hierarchy that reflects
the significance of the inputs used in determining that value. The following table analyses financial
instruments carried at fair value by the valuation method. The different levels in the hierarchy have
been defined as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (as prices) or indirectly (derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
Due to their short term nature, the carrying values of all of the Group’s financial assets and liabilities is
assumed to be their fair value. That is, there are no financial assets or financial liabilities measured
using the fair value hierarchy.
26. COMMITMENTS AND CONTINGENCIES
Bulletin has a commitment to maintaining its 20% interest in the Nicolsons Gold Project and must meet
monthly cash calls submitted by the Operator.
There are no further contingent assets or liabilities as at 30 June 2015 and no changes in the interval
between 30 June 2015 and the date of this report.
27. EVENTS SUBSEQUENT TO REPORTING DATE
On 7 September 2015 the Group announced that the first gold pour had occurred at the Nicolsons Gold
Project following successful completion of mine development and processing plant commissioning in
the prior month.
On 7 August 2015 the Group announced that it had entered into a separate loan funding agreement for
a sum of $600,000 to aid the Group in funding its share of the remaining development costs of the
Nicolsons Gold Project as it entered the production phase. The loan attracts an interest rate of 12% per
annum and is repayable no later than 31 December 2017.
In conjunction with this loan, the Groups major shareholder Matsa Resources Limited, has also entered
into a Deed of Guarantee and Indemnity with the lender to guarantee repayment of the loan to a
maximum of $350,000.
Since the end of the financial year the Group has disposed of 4.58 million shares in Pacific Niugini
Limited for gross proceeds of $264,016.
78
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
28. PARENT ENTITY INFORMATION
Current assets
Non-current assets
Total Assets
Current liabilities
Non-current liabilities
Total Liabilities
Issued capital
Reserves
Accumulated losses
Total Equity
2015
$
2,561,512
3,049,318
5,610,830
1,389,283
2,091,928
3,481,211
2014
$
851,820
1,724,063
2,575,883
56,250
68,850
125,100
14,490,189
323,440
(12,037,129)
2,129,619
13,849,255
2,450
(11,400,922)
2,450,783
Profit (loss) for the year
Other comprehensive income
Total comprehensive income (loss) for the year
(636,207)
(371,248)
(1,007,455)
926,802
-
926,802
Bulletin has a commitment to maintaining its 20% interest in the Nicolsons Gold Project and must meet
monthly cash calls submitted by the Operator.
79
BULLETIN RESOURCES LIMITED
DIRECTORS’ RECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
1. The financial statements and notes, as set out on pages 44 to 79 are in accordance with the
Corporations Act 2001 and:
(a) comply with Accounting Standards and the Corporations Regulations 2001 and other
mandatory professional reporting requirements;
(b) give a true and fair view of the financial position as at 30 June 2015 and of the performance
(c)
for the year ended on that date of the Company; and
the financial report also complies with International Financial Reporting Standards as
disclosed in Note 1.
2. The Chairman and Non-executive Director have each declared that:
(a) the financial records of the Company for the financial year have been properly maintained
in accordance with section 286 of the Corporations Act 2001;
(b) the financial statements and notes for the financial year comply with the Accounting
Standards; and
(c) the financial statements and notes for the financial year give a true and fair view.
3.
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.
This declaration is made in accordance with a resolution of the Board of Directors.
_____________________________
Paul Poli
Director - Chairman
Dated this 30th day of September 2015
80
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR’S REPORT
To the members of Bulletin Resources Limited
Report on the Financial Report
We have audited the accompanying financial report of Bulletin Resources Limited, which comprises the
consolidated statement of financial position as at 30 June 2015, the consolidated statement of profit or
loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, notes comprising a summary of
significant accounting policies and other explanatory information, and the directors’ declaration of the
consolidated entity comprising the company and the entity it controlled at the year’s end or from time
to time during the financial year.
Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101
Presentation of Financial Statements, that the financial statements comply with International
Financial Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our
audit in accordance with Australian Auditing Standards. Those standards require that we comply with
relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain
reasonable assurance about whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial report. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the company’s
preparation of the financial report that gives a true and fair view in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by the directors, as
well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which
has been given to the directors of Bulletin Resources Limited, would be in the same terms if given to
the directors as at the time of this auditor’s report.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN
77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK
company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under
Professional Standards Legislation, other than for the acts or omissions of financial services licensees.
Opinion
In our opinion:
(a)
the financial report of Bulletin Resources Limited is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2015
and of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b)
the financial report also complies with International Financial Reporting Standards as disclosed in
Note 1.
Emphasis of matter
Without modifying our opinion, we draw attention to Note 1 in the financial report, which indicates
that the ability of the consolidated entity to continue as a going concern is dependent upon successful
production and sale of product from the Nicolson’s gold project or on the raising of additional finance
in order to meet its commitments under its current debt facilities and/or for working capital. This
condition, along with other matters as set out in Note 1, indicate the existence of a material
uncertainty that may cast significant doubt about the consolidated entity’s ability to continue as a
going concern and therefore, the consolidated entity may be unable to realise its assets and discharge
its liabilities in the normal course of business.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2015. The directors of the company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
Opinion
In our opinion, the Remuneration Report of Bulletin Resources Limited for the year ended 30 June 2015
complies with section 300A of the Corporations Act 2001.
BDO Audit (WA) Pty Ltd
Phillip Murdoch
Director
Perth, 30 September 2015
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF BULLETIN
RESOURCES LIMITED
As lead auditor of Bulletin Resources Limited for the year ended 30 June 2015, I declare that, to the
best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Bulletin Resources Limited and the entity it controlled during the
period.
Phillip Murdoch
Director
BDO Audit (WA) Pty Ltd
Perth, 30 September 2015
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN
77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK
company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under
Professional Standards Legislation, other than for the acts or omissions of financial services licensees.
BULLETIN RESOURCES LIMITED
ADDITIONAL ASX INFORMATION
FOR THE YEAR ENDED 30 JUNE 2015
The following additional information is required by the Australian Securities Exchange. The information
is current as at 25th September 2015.
(a) Distribution schedule and number of holders of equity securities
Stock Exchange Listing – Listing has been granted for 174,043,074 ordinary fully paid shares of the
Company on issue on the Australian Securities Exchange.
1 – 1,000
1,001
5,000
–
5,001
10,000
–
10,001 –
100,000
100,001 –
and over
Total
Fully Paid Ordinary
Shares (BNR)
13
Unlisted Options –
3c 30/11/17
0
8
0
31
0
216
178
446
0
6
6
There were 89 shareholders holding less than a marketable parcel at 25th September 2015.
(b) 20 Largest holders of quoted equity securities as at 25th September 2015
The names of the twenty largest holders of fully paid ordinary shares (ASX code: BNR) are:
Rank
Name
Shares
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
15
20
Matsa Resources Limited
Goldfire Enterprises Pty Ltd
Temorex Pty Ltd
Mrs Sonya Kathleen Poli
Newmek Investments Pty Ltd
Mr. Jason Frank Madalena
Fat Prophets Pty Ltd
Goldfire Enterprises Pty Ltd
Mrs Susan Martin
Mr. Michael Fitzgerald & Mrs Joanna Margaret Fitzgerald (Fitzgerald F/Trust
A/C>
Mes Coleen Therese Harris
Mr Paul Poli & Mrs Sonya Kathleen Poli
JP Morgan Nominees Australia Limited
Mr Oliver Nikolovski
Mr Oliver Nikolovski & Mrs Suzanne Karine Nikolovski
Applied Solutions (Private) Limited
BNP Paribas Noms Pty Ltd
Berrimil Services Pty Ltd
Bedel & Sowa Corp Pty Ltd
Mr. Peter Andrew Smith
Mr. Thomas Aboud
TOTAL
% of Total
Shares
24.37
11.75
5.94
4.17
2.87
2.18
1.63
1.44
1.44
1.28
1.15
1.15
1.05
1.03
1.03
0.92
0.72
0.62
0.78
0.57
0.56
42,419,535
20,454,563
10,333,333
7,262,500
5,000,000
3,790,000
2,835,279
2,501,124
2,500,000
2,225,490
2,000,000
2,000,000
1,819,440
1,800,000
1,800,000
1,600,000
1,253,499
1,075,000
1,000,000
1,000,000
997,891
114,647,654
65.87
84
BULLETIN RESOURCES LIMITED
ADDITIONAL ASX INFORMATION
FOR THE YEAR ENDED 30 JUNE 2015
ADDITIONAL ASX INFORMATION (CONTINUED)
The unquoted securities on issue as at 25 September 2015 are detailed below in part (d).
(c)
Substantial shareholders
Substantial shareholders in Bulletin Resources Ltd as disclosed in substantial holder notices provided
to the Company are detailed below -
Name
MATSA RESOURCES LIMITED
GOLDFIRE ENTERPRISES PTY LTD
(d) Unquoted Securities
Shares
% of Total
Shares
42,419,535
34,646,755
24.37
19.91
The number of unquoted securities on issue as at 20th September 2015:
Security
Unlisted options exercisable at 3 cents, on or before 30 November 2017.
Number on issue
5,250,000
(e) Names of persons holding more than 20% of a given class of unquoted securities (other than
employee options) as at 25th September 2015
Mr Frank Sibbel 2,000,000 unlisted options exercisable at 3 cents, on or before 30 November 2017
(38.1%)
(f) Restricted Securities as at 25th September 2015
There are no restricted securities on issue as at 25th September 2015.
(g) Voting Rights
All fully paid ordinary shares carry one vote per ordinary share without restriction.
Unquoted options have no voting rights.
(h) Company Secretary
The Company Secretary is Mr Andrew Chapman.
(i) Registered Office
The Company’s Registered Office is Level 1, Suite 11, 139 Newcastle Street, Northbridge WA 6000.
(j) Share Registry
The Company’s Share Registry is Computershare Investor Services Pty Ltd of Level 11, 172 St Georges
Terrace Perth WA 6000.
(k) On-Market Buy-back
The Company is not currently performing an on-market buy-back.
85
BULLETIN RESOURCES LIMITED
SCHEDULE OF INTERESTS IN MINING TENEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Tenement Holder
Lamboo Project
E80/2601
Bulletin
E80/3861
Bulletin
E80/4458
Bulletin
E80/4459
Bulletin
L80/0070
Bulletin
L80/0071
Bulletin
M80/0343
Bulletin
M80/0355
Bulletin
M80/0359
Bulletin
M80/0362
Bulletin
M80/0471
Bulletin
M80/0503
Bulletin
Biscay Project
E80/2394
Bulletin
Bulletin
Holding
%
Granted
Expiry
Status
Area
(Ha)
Area
(Blocks)
Annual
Expenditure
20
20
20
20
20
20
20
20
20
20
20
20
20
29/07/2002
28/07/2015 Granted
30/01/2008
29/01/2018 Granted
26/03/2012
25/03/2017 Granted
26/03/2012
25/03/2017 Granted
30/08/2012
29/08/2017 Granted
30/08/2012
29/08/2017 Granted
24/06/1992
23/06/2034 Granted
25/01/1993
24/01/2035 Granted
14.7
51.3
197.4
125.4
7/07/1993
6/07/2035
Granted
199.95
31/08/1993
30/08/2035 Granted
79.3
2/04/1998
1/04/2019
Granted
121.5
17/11/2000
16/11/2021 Granted
451.95
8
7
1
1
$70,000
$50,000
$10,000
$10,000
$19,800
$12,600
$20,000
$10,000
$12,200
$45,200
15/07/2002
14/07/2015 Granted
6
$70,000
86
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
Table 1: JORC checklist of assessment and reporting criteria
Section 1: Sampling Techniques and Data
Criteria
JORC Code explanation
Commentary
Sampling
techniques
Nature and quality of sampling (e.g.
cut channels, random chips, or
specific specialised industry
standard measurement tools
appropriate to the minerals under
investigation, such as down hole
gamma sondes, or handheld XRF
instruments, etc.). These examples
should not be taken as limiting the
broad meaning of sampling.
The Nicolson’s deposit has been sampled
predominantly by RC and minor historical
RAB about the Nicolson’s open pit area.
The Wagtails and Rowdies deposits were
sampled mainly by RC with follow-up
aircore. Holes were sampled on 1 m
increments, or 3 m increments above the
known mineralisation. Anomalous
intercepts from the 3 m increments were
re-split into 3 1 m increments.
Include reference to measures
taken to ensure sample
representivity and the appropriate
calibration of any measurement
tools or systems used.
Aspects of the determination of
mineralisation that are Material to
the Public Report. In cases where
‘industry standard’ work has been
done this would be relatively simple
(e.g. ‘reverse circulation drilling was
used to obtain 1 m samples from
which 3 kg was pulverised to
produce a 30 g charge for fire
assay’). In other cases more
explanation may be required, such
as where there is coarse gold that
has inherent sampling problems.
Unusual commodities or
mineralisation types (e.g. submarine
nodules) may warrant disclosure of
detailed information.
Samples from the current drill program
are RC collars with diamond drill tails. All
assays in this release are from diamond
drill core. Core was sampled in 1m
intervals, or in accordance with observed
geology for shorter runs.
For RC drilling, measures taken to
ensure sample representivity include the
presence of a geologist at the rig whilst
drilling, cleaning of the splitter at the end
of every 3 m drill string, confirmation that
drill depths match the accompanying
sample interval with the drilling crew and
the use of duplicate and lab/blank
standards in the drilling programme.
For diamond drilling, measures taken
include regular survey of drill holes,
cutting of core along the orientation line
where possible, and half core is
submitted to an accredited laboratory.
Industry standard blanks and standards
are also submitted and reported by the
laboratory. Drilling is completed in HQ3.
Historical holes - RC and aircore drilling
was used to obtain 1 m samples from
which 2 - 3 kg was crushed and sub-split
to yield 250 for pulverisation and then a
40 g aliquot for fire assay. Upper portions
of deeper holes were composited to 3m
sample intervals and sub-split to 1 m
intervals for further assay if an anomalous
composite assay result was returned. For
later drilling programs all intervals were
assayed.
2014 Program – HQ3 core is logged and
sampled according to geology, with only
selected samples assayed. Core is
halved, with one side assayed, and the
other half retained in core trays on site for
further analysis. Samples are a maximum
87
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
Criteria
JORC Code explanation
Commentary
Drilling
techniques
Drill type (e.g. core, reverse
circulation, open-hole hammer,
rotary air blast, auger, Bangka,
sonic, etc.) and details (e.g. core
diameter, triple or standard tube,
depth of diamond tails, face-
sampling bit or other type, whether
core is oriented and if so, by what
method, etc.
Drill sample
recovery
Method of recording and assessing
core and chip sample recoveries
and results assessed.
Measures taken to maximise
sample recovery and ensure
representative nature of the
samples
Whether a relationship exists
between sample recovery and
grade and whether sample bias may
have occurred due to preferential
loss/gain of fine/coarse material.
Logging
Whether core and chip samples
have been geologically and
geotechnically logged to a level of
detail to support appropriate Mineral
Resource estimation, mining studies
and metallurgical studies.
Whether logging is qualitative or
quantitative in nature. Core (or
costean, channel, etc.)
photography.
of 1m, with shorter intervals utilised
according to geology.
RC drilling was completed with several
rigs. All RC rigs used face sampling
hammers with bit size of 140 – 146mm.
Historical holes used a 130 mm bit size).
Aircore drilling was completed by the RC
rig with an aircore bit assembly. RAB
drilling (20 holes only in the Nicolson’s pit
area) is historical and details are
unknown.
HQ 3 Diamond drilling was conducted for
geotechnical and assay data. Holes from
the current program do not form part of
the current resource estimate. Diamond
holes were oriented using a Reflex
orientation tool. Diamond holes were
geologically and geotechnically logged.
All holes were logged at site by an
experienced geologist. Recovery and
sample quality were visually observed
and recorded. Recovery for older (pre
2011) holes is unknown.
All drilling was completed within rig
capabilities. Rigs used auxiliary air
boosters when appropriate to maintain
sample quality and representivity. Where
aircore drilling could not provide sufficient
penetration an RC drilling set-up was
used.
There is no known relationship between
recovery and grade. Diamond drilling of
oxide and transitional material in previous
campaigns noted high core loss in
mineralised zones. No core loss was
noted in fresh material. Good core
recovery has generally been achieved in
all sample types in the current drilling
program.
Geological logging parameters include:
depth from, depth to, condition,
weathering, oxidation, lithology, texture,
colour, alteration style, alteration
intensity, alteration mineralogy, sulphide
content and composition, quartz content,
veining, and general comments.
Geotechnical logging of diamond holes
included the recording of recovery, RQD,
structure type, dip, dip direction, alpha
and beta angles, shape, roughness and
fill material of fractures
All drill chips were logged on 1 m
increments, the minimum sample size. A
subset of all chip samples is kept on site
for reference.
88
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
Criteria
JORC Code explanation
Commentary
Sub-sampling
techniques and
sample
preparation
The total length and percentage of
the relevant intersections logged.
If core, whether cut or sawn and
whether quarter, half or all core
taken.
If non-core, whether riffled, tube
sampled, rotary split, etc. and
whether sampled wet or dry.
For all sample types, the nature,
quality and appropriateness of the
sample preparation technique.
Quality control procedures adopted
for all sub-sampling stages to
maximise representivity of samples.
Measures taken to ensure that the
sampling is representative of the in
situ material collected, including for
instance results for field
duplicate/second-half sampling.
Whether sample sizes are
appropriate to the grain size of the
material being sampled.
Quality of assay
data and
laboratory tests
The nature, quality and
appropriateness of the assaying and
laboratory procedures used and
whether the technique is considered
partial or total.
Diamond drilling was logged to geological
boundaries and is considered
quantitative. Core was photographed.
All drilling has been logged apart from
diamond drill pre-collars.
Core samples were saw in half with one
half used for assaying and the other half
retained in core trays on site for future
analysis.
RC drill chip samples were collected with
either a three-tier, rotary or stationary
cone splitter depending on the drill rig
used. Aircore drill samples were subset
using a 3 tier riffle splitter. Most (> 95%)
of samples are recorded as being dry.
All RC and aircore sample splitting was to
12.5 % of original sample size or 2 – 3 kg,
typical of standard industry practice.
Samples greater than 3 kg were split on
site before submission to the laboratory.
For core samples, core was separated
into sample intervals and separately
bagged for analysis at the certified
laboratory.
The cyclone and splitter were cleaned
every rod string and more frequently
when requested by the geologist. In the
case of spear sampling for re-splitting
purposes, several spears through the
entirety of the drill spoil bag were taken in
a systematic manner to minimise bias.
Core was cut under the supervision of an
experienced geologist, was routinely cut
on the orientation line.
Duplicate samples were taken every 20 m
from a second cut of the splitter in the
case of a cone splitter, or from a reject
split in the case of a riffle splitter.
Certified standards were inserted into the
sample batch at a rate of 1 in 20
throughout all drilling programs.
Gold at Hall’s Creek is fine- to medium-
grained and a sample size of 2 – 3 kg is
considered appropriate.
Half core is considered appropriate for
diamond drill samples.
The Bureau Veritas lab in Perth has ISO-
9001 and ISO14001 certification. Gold
assays are determined using fire assay
with 40g charge and AAS finish. Other
elements were assayed using acid digest
with ICP-MS finish. The methods used
approach total mineral consumption and
are typical of industry standard practice.
89
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
Criteria
JORC Code explanation
Commentary
For geophysical tools,
spectrometers, handheld XRF
instruments, etc., the parameters
used in determining the analysis
including instrument make and
model, reading times, calibrations
factors applied and their derivation,
etc.
Nature of quality control procedures
adopted (e.g. standards, blanks,
duplicates, external laboratory
checks) and whether acceptable
levels of accuracy (i.e. lack of bias)
and precision have been
established
Verification of
sampling and
assaying
The verification of significant
intersections by either independent
or alternative company personnel.
The use of twinned holes.
Documentation of primary data,
data entry procedures, data
verification, data storage (physical
and electronic) protocols.
Location of data
points
Discuss any adjustment to assay
data.
Accuracy and quality of surveys
used to locate drill holes (collar and
down-hole surveys), trenches, mine
workings and other locations used
in Mineral Resource estimation.
No geophysical logging of drilling was
performed. This is not relevant to the
style of mineralisation under exploration.
Lab standards, blanks and repeats are
included as part of the QAQC system. In
addition the laboratory had its own
internal QAQC comprising standards,
blanks and duplicates. Sample
preparation checks of pulverising at the
laboratory include tests to check that the
standards of 90% passing 75 micron is
being achieved. Follow-up re-assaying is
performed by the laboratory upon
company request following review of
assay data. Acceptable bias and
precision is noted in results given the
nature of the deposit and the level of
classification. Early drilling shows a
pronounced negative bias with several of
the external certified standards.
Significant intersections are noted in
logging and checked with assay results
by company personnel. Some significant
intersections have been resampled and
assayed to validate results. Diamond
drilling confirms the width of the
mineralised intersections.
The current drill program includes holes
testing the current resource and twinning
existing RC holes as shown on
announcement sections.
All primary data is logged on paper and
later entered into the database. Data is
visually checked for errors before being
sent to an external database manager for
further validation and uploaded into an
offsite database. Hard copies of original
drill logs are kept both onsite and in the
Perth office.
No adjustments have been made to
assay data.
Drilling is surveyed using DGPS with
accuracy of ± 0.3m. Downhole surveys
are conducted during drilling using single
shot cameras at 10 m then every 30 m
thereafter. Later drilling was downhole
surveyed using a Reflex survey tool. Mine
workings (open pits) were surveyed by
external surveyors using RTK survey
equipment. A subset of historical holes
90
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
Criteria
JORC Code explanation
Commentary
Specification of the grid system
used.
Quality and adequacy of
topographic control.
Data spacing
and distribution
Data spacing for reporting of
Exploration Results.
Whether the data spacing and
distribution is sufficient to establish
the degree of geological and grade
continuity appropriate for the
Mineral Resource and Ore Reserve
estimation procedure(s) and
classifications applied.
Whether sample compositing has
been applied.
Orientation of
data in relation
to geological
structure
Whether the orientation of sampling
achieves unbiased sampling of
possible structures and the extent to
which this is known, considering the
deposit type.
If the relationship between the
drilling orientation and the
orientation of key mineralised
structures is considered to have
introduced a sampling bias, this
should be assessed and reported if
material.
Sample security The measures taken to ensure
sample security
Audits or
reviews
The results of any audits or reviews
of sampling techniques and data
was surveyed to validate collar
coordinates.
The project lies in MGA 94, zone 52.
Local coordinates are derived by
conversion:
GDA94_EAST =NIC_EAST * 0.9983364
+ NIC_NORTH * 0.05607807 +
315269.176
GDA94_NORTH = NIC_EAST * (-
0.05607807) + NIC_NORTH * 0.9983364
+ 7944798.421
GDA94_RL =NIC-RL + 101.799
Topographic control uses DGPS collar
pickups and external survey RTK data
and is considered adequate for use.
Drill hole spacing at Nicolson’s is
generally between 10 m by 10 m and 30
m x 30 m in the upper areas of the
deposits and extends to 50 m x 50 m at
depths greater than 200 m. The drill
spacing at Wagtail and Rowdies is
generally 20 m x 20 m with some areas of
10 m x 20 m infill.
The Competent Person is of the view that
the drill spacing, geological interpretation
and grade continuity of the data supports
the resource categories assigned.
Sample compositing to 3m occurred in
holes above predicted mineralized zones.
Composite samples were re-assayed in
their 1 m increments if initial assay results
were anomalous.
Drilling is predominantly at 270o to local
grid at a dip of -60o. Local structures
strike north-south on the local grid and
dip at 60oE. No bias of sampling is
believed to exist through the drilling
orientation.
The chain of custody is managed by
Pacific Niugini employees and
consultants. Samples are stored on site
and delivered in bulk bags to the lab in
Perth. Samples are tracked during
shipping.
A review of the resource was carried out
by an independent consultancy firm when
91
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
Criteria
JORC Code explanation
Commentary
the project was acquired from Bulletin.
No significant issues were noted.
Section 2: Reporting of Exploration Results
JORC Code explanation
Criteria
Commentary
Mineral
tenement and
land tenure
status
Type, reference name/number,
location and ownership including
agreements or material issues with
third parties such as joint ventures,
partnerships, overriding royalties,
native title interests, historical sites,
wilderness or national park and
environmental settings.
The security of the tenure held at
the time of reporting along with any
known impediments to obtaining a
licence to operate in the area
Acknowledgment and appraisal of
exploration by other parties.
Exploration done
by other parties
Geology
Deposit type, geological setting and
style of mineralisation
Tenements containing Resources and
Reserves are 80% held by Pacific Niugini
subsidiary company Halls Creek Mining.
They are: M80/343, M80/355, M80/359,
M80/503 and M80/471.M80/362
Tenement transfers to HCM are yet to
occur as stamp duty assessments have
not been completed by the office of state
revenue. The tenements lie on a pastoral
lease with access and mining
agreements and predate native title
claims.
The tenements are in good standing and
no known impediments exist.
The deposits were discovered by
prospectors in the early 1990s. After an
8,500 m RC program, Precious Metals
Australia mined 23 koz at an estimated
7.7g/t Au from Nicolson’s Pit in 1995/96
before ceasing the operation. Rewah
mined the Wagtail and Rowdy pits (5 koz
at 2.7g/t Au) in 2002/3 before Terra Gold
Mines (TGM) acquired the project,
carried out 12,000 m of RC drilling and
produced a 100 koz resource estimate.
GBS Gold acquired TGM and drilled
4,000 m before being placed in
administration. Review of available
reports show work to follow acceptable to
standard industry practices.
Gold mineralisation in the Nicolson’s Find
area is structurally controlled within the
400 m wide NNE trending dextral strike
slip Nicolson’s Find Shear Zone (NFSZ)
and
folded and
turbiditic greywackes,
metamorphosed
felsic volcaniclastics, mafic volcanics and
laminated siltstones and mudstones. This
zone forms part of a regional NE-trending
strike slip fault system developed across
the Halls Creek Orogen (HCO).
The NFSZ comprises a NNE-trending
anastomosing system of brittle-ductile
shears, characterised by a predominantly
dextral sense of movement. The principal
shear structures trend NNE to N-S and
are linked by NW, and to a lesser extent,
is hosted within
92
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
Criteria
JORC Code explanation
Commentary
broad
by NE shears. Individual shears extend
up to 500m along strike and overprint the
earlier folding and penetrative cleavage of
the HCO.
The overall geometry of the system is
characterized by right step-overs and
bends/jogs in the shear traces, reflecting
refraction of the shears about the granite
contact. Within this system, the NW-
interpreted as
striking shears are
compressional structures and the NE-
striking shears formed within extensional
windows.
Mineralization is primarily focused along
NNE trending anastomosing systems of
NNE-SSW, NW-SE and NE-SW oriented
shears and splays. The NNE shears dip
moderately to the east, while the NW set
dips moderately to steeply to the NE. Both
sets display variations
in dip, with
flattening and steepening which result in a
complex pattern of shear intersections.
Mineralisation is strongly correlated with
discontinuous quartz veining and with Fe-
Si-K alteration halos developed in the wall
rocks to the veins. The NE shears are
of
associated with
silicification and thicker quartz veining
(typically white, massive quartz with less
fracturing and brecciation); however,
these are typically poorly mineralized.
The NW-trending shears are mineralized,
with the lodes most likely related to high
fluid pressures with over-pressuring and
failure leading to vein formation. Although
the NE structures formed within the same
shear system, the quartz veining is of a
different generation to the mineralized
veins.
the system
Individual shears within
display an increase in strain towards their
centres and comprise an anastomosing
shear fabric reminiscent of the pattern on
a larger scale.
(Adapted from Robertson(2003))
Drillholes used in the Nicolson’s Resource
estimate included 242 RC and 20 RAB
holes for a total of 1,338m within the
resource wireframes. Rowdies drilling
included 36 RC and 2 aircore holes (AC)
for a total of 241 m of intersection within
the resource wireframes. Wagtail North
comprised 84 RC and 6 AC holes for 553
m of
the resource
wireframes. Wagtail South comprised 23
RC and 20 AC holes for 203 m of
intersection with
zones
93
Drill hole
Information
A summary of all information
material to the understanding of the
exploration results including a
tabulation of the following
information for all Material drill
holes:
o easting and northing of the
drill hole collar
o elevation or RL (Reduced
Level – elevation above sea
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
Criteria
JORC Code explanation
Commentary
level in metres) of the drill
hole collar
intersection
wireframes.
within
the
resource
o dip and azimuth of the hole
o down hole length and
interception depth
o hole length
If the exclusion of this information
is justified on the basis that the
information is not Material and this
exclusion does not detract from the
understanding of the report, the
Competent Person should clearly
explain why this is the case.
In reporting Exploration Results,
weighting averaging techniques,
maximum and/or minimum grade
truncations (e.g. cutting of high
grades) and cut-off grades are
usually Material and should be
stated.
Data
aggregation
methods
Where aggregate intercepts
incorporate short lengths of high
grade results and longer lengths of
low grade results, the procedure
used for such aggregation should
be stated and some typical
examples of such aggregations
should be shown in detail.
The assumptions used for any
reporting of metal equivalent values
should be clearly stated.
These relationships are particularly
important in the reporting of
Exploration Results.
If the geometry of the
mineralisation with respect to the
drill hole angle is known, its nature
should be reported.
If it is not known and only the down
hole lengths are reported, there
should be a clear statement to this
effect (e.g. ‘down hole length, true
width not known’).
Relationship
between
mineralisation
widths and
intercept lengths
the
Drill results as reported are composited
intersections within
interpreted
mineralisation wireframes which form the
basis of the resource. Intercepts are
composited from 1 m sample increments
and no weighting other than length is
applied. The Lower cut-off grade is a
nominal 0.5g/t Au with a minimum 2m
downhole length above 200 mRL and a
nominal 1.0g/t Au with a 1 m minimum
downhole length below 200 mRL. Top
cuts for Nicolson’s lodes were 40 g/t and
45g/t Au for different domains dependent
upon the lode grade distribution. Rowdies,
Wagtail North and Wagtail South had top
cuts of 20g/t, 45g/t and 50g/t Au
respectively.
All sample intervals within the interpreted
wireframe shells were used in the grade
estimation.
No metal equivalent values are used.
Drilling is predominantly at 270o to local
grid at a dip of -60o. Local structures strike
0o to the local grid and dip at 60oE (i.e.
having a 60o intersection angle to lode
structures). Deeper holes have some
drillhole deviation which decreases or
increases the intersection angle, but not to
a significant extent.
Downhole lengths are reported and true
widths are approximately 60 – 90% of
down-hole length.
94
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
Criteria
Diagrams
Balanced
reporting
Other
substantive
exploration data
Further work
JORC Code explanation
Commentary
Refer figures and table in this release.
All drillhole intercepts currently available
from the current program are included in
the release.
Historical
in
previous resource reports released to the
ASX.
intercepts are
included
air
pressure while
Groundwater is largely confined to fault
structures, typical of fracture rock systems
with low yields and able to be controlled
drilling.
with
Metallurgical and geotechnical work
studies have been completed as part of
feasibility studies
in support of ore
reserves with no significant issues noted.
No significant deleterious substances
have been noted.
Underground mining has commenced and
milling of this ore has produced gold at
levels in line with local grade estimates.
Appropriate maps and sections
(with scales) and tabulations of
intercepts should be included for
any significant discovery being
reported These should include, but
not be limited to a plan view of drill
hole collar locations and
appropriate sectional views.
Where comprehensive reporting of
all Exploration Results is not
practicable, representative
reporting of both low and high
grades and/or widths should be
practiced to avoid misleading
reporting of Exploration Results.
Other exploration data, if
meaningful and material, should be
reported including (but not limited
to): geological observations;
geophysical survey results;
geochemical survey results; bulk
samples – size and method of
treatment; metallurgical test results;
bulk density, groundwater,
geotechnical and rock
characteristics; potential
deleterious or contaminating
substances.
The nature and scale of planned
further work (e.g. tests for lateral
extensions or depth extensions or
large-scale step-out drilling).
Diagrams clearly highlighting the
areas of possible extensions,
including the main geological
interpretations and future drilling
areas, provided this information is
not commercially sensitive.
Section 3: Estimation and Reporting of Mineral Resources
Criteria
Database
integrity
JORC Code explanation
Commentary
Measures taken to ensure that data
has not been corrupted by, for
example, transcription or keying
errors, between its initial collection
and its use for Mineral Resource
estimation purposes.
Data validation procedures used.
Data input has been governed by lookup
tables and programmed import of assay
data from lab into database. The
database has been checked against the
original assay certificates and survey
records for completeness and accuracy.
Data was validated by the geologist after
input. Data validation checks were
carried out by an external database
manager
liaison with Bulletin
personnel. The database was further
validated
resource
consultants prior to resource modelling.
An extensive review of the data base
external
by
in
95
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
Criteria
JORC Code explanation
Commentary
Site visits
Geological
interpretation
Dimensions
Estimation and
modelling
techniques
Comment on any site visits
undertaken by the Competent
Person and the outcome of those
visits.
If no site visits have been
undertaken indicate why this is the
case.
Confidence in (or conversely, the
uncertainty of) the geological
interpretation of the mineral deposit.
Nature of the data used and of any
assumptions made.
The effect, if any, of alternative
interpretations on Mineral Resource
estimation.
The use of geology in guiding and
controlling Mineral Resource
estimation.
The factors affecting continuity both
of grade and geology.
The extent and variability of the
Mineral Resource expressed as
length (along strike or otherwise),
plan width, and depth below surface
to the upper and lower limits of the
Mineral Resource.
The nature and appropriateness of
the estimation technique(s) applied
and key assumptions, including
treatment of extreme grade values,
domaining, interpolation parameters
and maximum distance of
extrapolation from data points. If a
computer assisted estimation
method was chosen include a
description of computer software
and parameters used.
was undertaken when Pacific Niugini
acquired the project.
The Competent Person has visited the
site and has a good appreciation of the
mineralisation styles comprising
the
Mineral Resource.
in
for
the
the
geological
includes surface and
geological
Confidence
interpretation is generally proportional to
the drill density.
Surface mapping
confirms some of the orientation data for
the main mineralised structures.
Data
used
interpretation
trench mapping and drill logging data.
An alternative
interpretation (steeper
lodes) of deeper portions of the deposit
was modelled and provides no material
change to the resource estimate. In
general
the
mineralised structures is clear.
Geological interpretation of the data was
used as a basis for the lodes which were
then constrained by cut-off grades.
is
Geology and grade continuity
constrained by quartz veining within the
NFSZ and by parallel structures for the
other prospects.
Refer to Figures 1 - 3
interpretation of
the
Separate block models were generated
for Nicolson’s, Rowdies and Wagtail
North and South. Individual mineralised
structures were domained separately.
Models contain grade estimates and
attributes for blocks within each domain
only.
Ordinary Kriging (OK) using Surpac
software was used to generate the
resource estimates. Variography of gold
grades from drilling data provides a
maximum grade continuity of 50 m down
plane plunge, 20 m perpendicular to
plunge and 5 m across plunge for
Nicolson’s Find; 90 m down plunge, 55 m
perpendicular to plunge and 5 m across
plunge for Nicolson’s South and 20.5m
down plunge, 14.5 m perpendicular to
plunge and 12, across plane for Wagtail
South. Rowdies and Wagtail North have
96
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
Criteria
JORC Code explanation
Commentary
The availability of check estimates,
previous estimates and/or mine
production records and whether the
Mineral Resource estimate takes
appropriate account of such data.
The assumptions made regarding
recovery of by-products.
Estimation of deleterious elements
or other non-grade variables of
economic significance (e.g. sulphur
for acid mine drainage
characterisation).
In the case of block model
interpolation, the block size in
relation to the average sample
spacing and the search employed.
Any assumptions behind modelling
of selective mining units.
Any assumptions about correlation
between variables.
to
the
low
figures
is known
the current
Production
resource
later
previous
to
a strike-dip control on mineralisation.
Rowdies grade continuity was 60 m
down-dip, 50 m along strike and 4 m
across
the plane. Wagtail North
parameters were 50 m along strike, 30 m
down-dip and 4 m across the plane.
A number of resource estimates by
consultants, Optiro have been generated
estimates
with
upgrades.
reconciled
Reconciliation of the Nicolson’s open pit
resource model with mine
records
provides a difference of -6% in tonnes,
+15% in grade and +9% in gold metal
compared
resource model;
however, the open pit area is only a small
resource
proportion of
extents.
from
in
Rowdies and Wagtails are
confidence and have not reconciled to
the resource model.
By products are not included in the
resource estimate.
No deleterious elements have been
estimated. Arsenic
to be
present, however metallurgical test work
suggests that it does not adversely affect
metallurgical recovery.
Models were interpolated with a block
model cell size of 10 mN x 5 mE x 5 mRL,
volume
with
representation only to 0.3 m. Estimation
used 4 passes at Nicolson’s and 3
passes elsewhere. At Nicolson’s Find,
the 1st pass used a search radius of 50 m
with a minimum of 8 and maximum of 32
samples. Nicolson’s South estimation
used a 90m radius for the 1st pass with a
minimum of 4 and maximum of 12
radius was
samples. The search
increased by 1.5 for second pass and the
minimum number of samples was
decreased to 4 for the 3rd pass. The
search radius was increased by a factor
the minimum number of
of 3 and
samples decreased to 1 for the 4th pass
at Nicolson’s.
The size of the blocks was determined by
in
Kriging Neighbourhood Analysis
conjunction with the assumption of a
relatively selective mining approach for
both open pit and underground
operations.
Only gold has been estimated.
sub-celling
for
97
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
Criteria
JORC Code explanation
Commentary
Moisture
Cut-off
parameters
Mining factors or
assumptions
Metallurgical
factors or
assumptions
interpretation constrained
Geological
initial resource wireframes; these were
oriented along trends of grade continuity
and were constrained further by cut-off
grades.
Grade distribution statistics were used to
generate
the
analysis of distribution graphs and
disintegration analysis.
Models were validated visually and by
statistical comparison to input data both
on a whole-of-domain and on a sectional
basis using continuity or swathe plots.
top cuts, along with
Tonnage was estimated on a dry basis.
Cut-off grades for reporting were based
on notional mining cut-off grades for
open pit (0.6 g/t Au) and underground
operations (3 g/t Au).
An optimised pit shell was used to
constrain material described as open pit
with material outside this shell assigned
to a potential underground operation.
The minimum downhole
intersection
width of 2m for material above 200m and
1 m below 200m is considered to
represent minimum mining widths for
selective open pit and underground
operations respectively.
testwork has
shown
Metallurgical
acceptable (> 95%) gold recovery using
CIP technology. No factors from the
metallurgy have been applied to the
estimates.
Description of how the geological
interpretation was used to control
the resource estimates.
Discussion of basis for using or not
using grade cutting or capping.
The process of validation, the
checking process used, the
comparison of model data to drill
hole data, and use of reconciliation
data if available.
Whether the tonnages are
estimated on a dry basis or with
natural moisture, and the method of
determination of the moisture
content
The basis of the adopted cut-off
grade(s) or quality parameters
applied
Assumptions made regarding
possible mining methods, minimum
mining dimensions and internal (or,
if applicable, external) mining
dilution. It is always necessary as
part of the process of determining
reasonable prospects for eventual
economic extraction to consider
potential mining methods, but the
assumptions made regarding mining
methods and parameters when
estimating Mineral Resources may
not always be rigorous. Where this
is the case, this should be reported
with an explanation of the basis of
the mining assumptions made.
The basis for assumptions or
predictions regarding metallurgical
amenability. It is always necessary
as part of the process of
determining reasonable prospects
for eventual economic extraction to
consider potential metallurgical
methods, but the assumptions
regarding metallurgical treatment
processes and parameters made
when reporting Mineral Resources
may not always be rigorous. Where
this is the case, this should be
reported with an explanation of the
basis of the metallurgical
assumptions made.
98
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
Criteria
JORC Code explanation
Commentary
Environmental
factors or
assumptions
Bulk density
Classification
Assumptions made regarding
possible waste and process residue
disposal options. It is always
necessary as part of the process of
determining reasonable prospects
for eventual economic extraction to
consider the potential environmental
impacts of the mining and
processing operation. While at this
stage the determination of potential
environmental impacts, particularly
for a greenfields project, may not
always be well advanced, the status
of early consideration of these
potential environmental impacts
should be reported. Where these
aspects have not been considered
this should be reported with an
explanation of the environmental
assumptions made.
Whether assumed or determined. If
assumed, the basis for the
assumptions. If determined, the
method used, whether wet or dry,
the frequency of the measurements,
the nature, size and
representativeness of the samples.
The bulk density for bulk material
must have been measured by
methods that adequately account
for void spaces (vugs, porosity,
etc.), moisture and differences
between rock and alteration zones
within the deposit.
Discuss assumptions for bulk
density estimates used in the
evaluation process of the different
materials.
The basis for the classification of
the Mineral Resources into varying
confidence categories.
Whether appropriate account has
been taken of all relevant factors
(i.e. relative confidence in
tonnage/grade estimations,
reliability of input data, confidence in
continuity of geology and metal
values, quality, quantity and
distribution of the data).
The deposits are on granted mining
leases with existing mining disturbance
and infrastructure present.
Bulk density measurements of ore were
calculated from drill core using the water
displacement method and data from
historical mining. Pit data provided 29
samples and drilling provided 91
samples.
Bulk density estimates used were:
Oxide All: 2.0 t/m3
Transitional All: 2.4t/m3
Fresh Rowdies and Wagtails: 2.7t/m3
Fresh Nicolson’s: 2.9t/m3
Indicated material is defined where
geology and grade continuity was
evident and supported by drill spacing
of less than 30 m by 30 m with at least 2
intercepts in the quartz lode. Inferred
material is defined where lodes are
supported by less than 3 holes and drill
spacing was greater than 30m x 30m.
Input data is considered sufficiently
comprehensive for the level of
confidence assigned to the resource
estimate by the Competent Person.
99
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
Criteria
JORC Code explanation
Commentary
Whether the result appropriately
reflects the Competent Person’s
view of the deposit.
Audits or reviews The results of any audits or reviews
of Mineral Resource estimates
Discussion of
relative
accuracy/
confidence
Where appropriate a statement of
the relative accuracy and
confidence level in the Mineral
Resource estimate using an
approach or procedure deemed
appropriate by the Competent
Person. For example, the
application of statistical or
geostatistical procedures to quantify
the relative accuracy of the resource
within stated confidence limits, or, if
such an approach is not deemed
appropriate, a qualitative discussion
of the factors that could affect the
relative accuracy and confidence of
the estimate.
The statement should specify
whether it relates to global or local
estimates, and, if local, state the
relevant tonnages, which should be
relevant to technical and economic
evaluation. Documentation should
include assumptions made and the
procedures used.
These statements of relative
accuracy and confidence of the
estimate should be compared with
production data, where available.
The estimate appropriately reflects the
view of the Competent Person.
An audit of the estimate was carried out
by an independent consultant. No
significant issues were noted.
The relative accuracy of the Mineral
resource estimate is reflected in the
reporting of the Mineral Resource as per
the guidelines of the 2012 JORC Code.
The statement reflects local estimates at
the block size.
The resource model produced a 9% oz
Au undercall against recorded
production for the Nicolson’s Find pit.
This amount is considered to be within
acceptable limits for the classification of
the resource. Moreover, the open pit
mining represents a small fraction of the
existing resource area.
100
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2015
101