2016 Annual Report
BULLETIN RESOURCES LIMITED
CORPORATE INFORMATION
FOR THE YEAR ENDED 30 JUNE 2016
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 2016
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
3
4
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25
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40
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42
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78
81
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BULLETIN RESOURCES LIMITED
CHAIRMAN’S LETTER
FOR THE YEAR ENDED 30 JUNE 2016
Dear Shareholder,
Twelve months ago I wrote of the enormous amount of pride the Board felt in being able to state that in
September 2015 we became a gold producer with the commencement of gold production from the
Nicolsons Gold Project.
A lot has happened during the past twelve months which has culminated in the Company electing to
dispose of its 20% interest in the Nicolsons Gold Project to Pantoro Limited, our joint venture partner.
This was not an easy negotiation to complete and took a considerable amount of time, imagination and
effort by the Board and management to extract a result that we felt was a fantastic result for all
shareholders and in the best interests of all shareholders.
I proudly can boast that Bulletin has sold its 20% interest to Pantoro Limited in exchange for 130 million
Pantoro shares and the assumption by Pantoro of all of Bulletin’s existing debt facility and gold hedge
commitments. At the time settlement occurred in mid-July this equated to a massive consideration value
of in excess of $20 million.
Your Board, in announcing the sale of its interest in Nicolsons, believed it was only fair that Bulletin
shareholders benefit and be rewarded from the transaction. On that basis, as part of the transaction,
Bulletin agreed to make an in-specie distribution of one Pantoro share for every two Bulletin shares
held at the conclusion of the transaction.
Subsequent to the approval by shareholders and settlement of the transaction Bulletin made the in-
specie distribution on 25 July 2016. This resulted in Bulletin shareholders receiving approximately $13
million value of Pantoro shares as well as retaining their existing holding in Bulletin. All shareholders
benefited from an effective 8c per share dividend which was a most pleasing result. Furthermore, I am
glad to say that Pantoro’s share price has remained above the value at the time of the in-specie
distribution thereby potentially adding further value to shareholders.
It is your Board’s intention to repeat the process of rewarding shareholders by the identification of a
new project and to that end has commenced reviewing other opportunities in the resources sector. Due
diligence is in progress on a number of opportunities. You can be assured we will not be rushed into
making an acquisition but rather will take the time necessary to find a project that can create future
strong value for the Company.
I would like to take this opportunity to thank my fellow Board members and also our company secretary
Mr Andrew Chapman for their hard work and support during the year in particular the period prior to,
during and after the announcement of the transaction where considerable time and effort was required
over and above their normal duties. On behalf of all shareholders, I do congratulate the Board on a fine
achievement.
Importantly, I would also like to thank all shareholders of the Company for their continued support and
patience whilst we work and hope to deliver further shareholder wealth in the future.
Yours Sincerely
Paul Poli
Non-Executive Chairman
30 September 2016
3
BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2016
REVIEW OF OPERATIONS
NICOLSONS GOLD PROJECT
Summary
There have been a number of significant advancements in the development of the Nicolsons Gold
Project during the financial year including the commencement of gold production in September 2015.
While the 20% interest in the Nicolsons Gold Project was considered a strategic asset of the Company
and becoming a gold producer was a significant achievement, the Board recognised that Bulletin is a
minor participant in the project and that ownership by one party holding 100% of the project, in this case
Pantoro Limited (Pantoro; PNR), should attract more attention and support in a strong gold market.
To that end on 2 May 2016 the Company announced that it had entered into an agreement with its joint
venture partner Pantoro to dispose of its 20% interest in the Nicolsons Gold Project with effect from 1
May 2016. The main focus towards the end of the financial year was the finalisation of this transaction
including completing all legal agreements, receipt of shareholder, regulatory, and financier approvals to
approve the transaction.
The consideration for the sale of Bulletin’s 20% interest in Nicolsons was as follows:
1.
2.
3.
Pantoro to issue Bulletin 130 million fully paid ordinary Pantoro shares;
Halls Creek Mining Pty Ltd (HCM), the Operator, assumed 100% of Bulletin’s obligations under
its gold loan finance facility with the CBA such that Bulletin has no further obligations to the CBA
subsequent to settlement.
HCM will assume 50% of the responsibility of the gold hedge facility provided by CBA prior to
settlement and 100% going forward.
In addition, and as part of the agreement, the Board of Bulletin elected to make, after settlement, an in-
specie distribution of one Pantoro share for every two Bulletin shares held at the time of the in-specie
distribution.
To that end the receipt of Pantoro shares by Bulletin, and in turn Bulletin shareholders via the in-specie
distribution, will continue to give Bulletin shareholders exposure to the Nicolsons Gold Project and its
operations via their Pantoro shareholding.
A shareholder meeting was held on 7 July 2016 where shareholders unanimously approved both the
sale of the interest in Nicolsons as well as the in-specie distribution. The disposal of the Company’s
interest was settled on 14 July 2016. The in-specie distribution occurred on 25 July 2016.
The settlement of the transaction leaves the Company in a strong financial position with approximately
$4.9M in cash and liquid investments, debt free with no ongoing exploration expenditure commitments.
Bulletin disposed of 15M Pantoro shares post settlement but does not anticipate the need to dispose of
any further Pantoro shares at this time.
It is the Company’s intention to repeat the process of rewarding shareholders by the identification of a
new project and to that end has commenced reviewing other opportunities in the resources sector.
Please note that all reporting on the operations on the Nicolsons Gold Project below will be up to 1 May
2016 which is the effective date of Bulletin disposing of its interest.
4
BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2016
includes
The Halls Creek Project
the
Nicolsons Mine, (35 km south west of Halls
Creek) and a pipeline of exploration and
development prospects located east of Halls
Creek in the Kimberley Region of Western
Australia.
During the year the Company continued to
focus on the Halls Creek Gold Project and the
advancement of that project towards positive
cash
flow. The project was originally
estimated to provide positive cash flow to the
Company of $11M after tax over 4.5 years at
a gold price of A$1,400 Oz.
In September 2015 Bulletin Resources and its
JV partner Pantoro Limited (PNR) became
Australia’s newest gold producer with first
gold poured from the Nicolsons.
The Nicolsons mine continues to ramp up
production towards nameplate capacity.
Halls Creek Project Location
The joint venture operator, Halls Creek Mining Pty Ltd (HCM) saw a substantial overcall to the pre
mining JORC Reserve model. HCM advised this will provide significant potential to extend the mine life
and production capacity at Nicolsons.
The project has an Ore Reserve of 109,220 ounces of gold and a Mineral Resource of 217,581 ounces
of gold.
Drilling during the year has also demonstrated that substantial silver grades can be present, although
a silver resource is yet to be estimated. Production activities to date have resulted in one ounce of silver
being produced for every two ounces of gold.
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).
There is a clear growth plan in place for Nicolsons which consists of:
• Ramping up production to exceed feasibility levels by taking advantage of the large reserve overcall
achieved in levels developed to date and delineating addition mining areas through underground
definition drilling;
• Expanding the underground resource and reserve through near mine exploration activities along
strike of and beneath the existing resource;
• Developing open pits at the existing Rowdies and Wagtail deposits in the near term;
• Advancing exploration beneath and along strike of the Rowdies and Wagtail deposits, and drill ready
targets including Paddock Well, Shifty’s and Springvale Fault;
• Progressing regional exploration where a number of new and existing prospects are being advanced
through detailed geological mapping and sampling.
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BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2016
Operations at Nicolsons continue in accordance with the mine plan.
Production continued to increase quarter on quarter with April production (the last month Bulletin was
entitled to a share of production) approaching nameplate capacity with record production of 2,641
ounces. While production has shown continued improvement, the overall result was impacted by lower
production in February due to development outside of Reserve in the lower grade extremities of the
orebody. The benefits of mining to the extremities of the orebody has already been demonstrated and
is important in understanding the resource and to maximise the overall potential of the mine. Mining to
the extremity of the orebody has already led to the discovery of additional higher grade ore zones to
the north of the main zone.
Key operating statistics (100% basis) for the year are provided in the table 1 below.
Physical Summary
Q1
Q2
Q3
Apr-16
FY 2016
UG Ore Mined
UG Grade Mined
Ore Processed
Head Grade
Recovery
Gold Produced
Cost Summary ($/Oz)
C1 Cash Cost
Royalties
Marketing/Cost of sales
Sustaining Capital
Reclamation & other adj.
Corporate Costs
All-in Sustaining Costs
Major Project Capital
Exploration Cost
Project Capital
8,270
4.70
7,645
4.18
93.7%
963
$-
$-
$-
$-
$-
$-
$-
$6,374
$112
$6,486
17,217
22,792
7.53
6.58
20,861
23,893
6.71
92.7%
4,180
6.33
94.3%
4,582
$1,194
$12
$1,199
$46
$5
$277
$-
$14
$8
$336
$-
$18
$1,502
$1,607
$464
$15
$479
$432
$7
$439
9,225
9.51
8,649
9.86
96.4%
2,641
$867 $
$36 $
$6 $
$70 $
$- $
$23 $
$1,002 $
1
$476 $
$8 $
$485 $
Table 1: Project performance during ramp up
In total Bulletin received a total of 2,340 ounces during the year for its 20% interest.
Underground Development
Decline development has continued to progress well, with good ground now persisting after
experiencing poor ground conditions in the early part of the development.
Development continued in accordance with the mine plan with continued improvement on a quarter on
quarter basis in total metres developed, and total ore tonnages and ounces delivered to the processing
plant.
The 2220, 2210, and 2200 levels were completed and stoping commenced on the 2200 level in mid-
March. The 2185 level is well advanced, and development of the 2170 cross cut had commenced at
the end of the quarter. The mill reconciled gold production for the completed levels delivered an
outstanding result with 186% of reserve ounces mined.
The high grade splay vein identified on the 2210 and 2200 levels has continued to return a large volume
of gold from outside of the reserve with approximately 58m of development returning 2,602 tonnes @
16.04 g/t for 1,342 ounces on the 2185 level (Figure 1). The splay was entirely outside of the current
6
BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2016
reserve on the 2185 level and consistently returned very high grades (up to 113 g/t) over widths of 0.6m
to 2.3m. Gold production from the 2185 development was 132% of the reserve at the end of March
2016 with approximately 140 m still to be developed, indicating that the large reserve overcall will
continue on the 2185 level.
Figure 1: 2185 Level Development to end of March 2016, showing large amount of ore developed outside of
reserve including very high grades in the splay vein
Development on the 2170 level commenced during March, with the footwall/splay vein structure
intersected in April. Ore development during the ensuing quarter will be advanced on the 2185 and
2170 levels initially, followed by the 2155 level.
A 110m ventilation rise from surface to the 2185 level was completed in April. The rise will be shotcrete
lined and equipped to be fully operational by mid-May, allowing production and development activities
to be maximised in all areas of the mine.
Processing Plant
The processing plant has continued to operate to expectation with overall gold recovery of 94.3% for
the quarter. Recovery for the month of March was 96.5%. The processing plant has reliably operated
at feasibility design throughput, with scope to further increase throughput and gold production when
additional ore feed is available.
An initial review of requirements for increasing processing plant capacity were undertaken during the
quarter. The review indicated that production may be expanded to greater than 200,000 tonnes per
annum through the addition of additional leaching tanks, and reconfiguration of the plant classification
circuit. Works for plant expansion will be undertaken when combined underground and open pit
operations are able to provide sufficient feed to maintain the larger capacity.
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BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2016
First dore bars produced in September 2015
Exploration
Underground diamond drilling commenced at Nicolsons during March 2016, with 459m in 8 holes drilled
during the period. Drilling is planned to be undertaken on a seven day per week, dayshift only basis
during the ensuing quarter. Significant assays recorded during the quarter drilling in the Northern Zone
include:
NGC16001: 0.8m @ 7.03g/t from 28.3m and 0.3m @ 1.22g/t from 31.2m;
NGC16002: 1.4m @ 7.27g/t from 18.5m;
NUD16007: 0.6m @ 9.3g/t from 75.5m.
For full results please refer to the ASX 31 March 2016 quarterly report dated 29 April 2016.
Reserve and Resources
HALLS CREEK ORE RESERVE STATEMENT 2016
The Nicolsons Ore Reserve estimate is 418,897 tonnes at 7.17 g/t Aug for 96,551 ounces.
Re-modelling of the developed zone at Nicolsons was undertaken in May 2016. The remainder of the
Nicolsons Ore Reserve outside of the developed areas remains unchanged. The changes to the Ore
Reserves at Nicolsons are attributable to Mining depletion (-12,159 ounces) and additional contained
gold on developed levels (+22,348 ounces).
Rowdies and Wagtail did not have an Ore Reserve in 2015, and the current Ore Reserve was calculated
during the 2016 period.
8
BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2016
Deposit
Reserve Category
Tonnes
Nicolsons
Wagtail & Rowdies
Proven
Probable
Total Nicolsons
Proven
Probable
Total Wagtail &
Rowdies
Gold
grade
(g/t)
10.38
6.24
7.17
-
5.55
Ounces
gold
2016
Ounces
gold
2015
31,327
65,255
96,551
-
17,219
-
86,362
86,362
-
-
Variance
Au oz
2016 -
2015
(oz)
31,327
(21,137)
10,189
-
-
93,864
325,033
418,897
-
96,500
96,500
5.55
17,219
-
17,219
Total Reserve
515,397
6.59
109,220
86,362
22,858
HALLS CREEK MINERAL RESOURCE STATEMENT 2016
Re-modelling of the developed zone at Nicolsons was undertaken in May 2016. The remainder of the
Nicolsons Mineral Resource outside of the developed areas remains unchanged. The changes to
Mineral Resources at Nicolsons are attributable to Mining depletion (-12,159 ounces) and additional
contained gold on developed levels (+3,701 ounces).
In the table below the Halls Creek Mineral Resources includes the revised Nicolsons Mineral Resource
at a cut-off grade of 2.5 g/t. Rowdies and Wagtail Mineral Resources have cut off grades of 0.6 g/t.
Deposit
Resource Category
Tonnes
Nicolsons
Wagtail
Rowdies
Measured
Indicated
Inferred
Total Nicolsons
Indicated
Inferred
Total Wagtail
Indicated
Inferred
Total Rowdies
46,186
478,686
195,042
719,914
236,000
17,000
253,000
52,000
13,000
65,000
Gold
grade
(g/t)
17.28
6.73
6.75
7.41
4.6
3.4
4.55
4.4
4.7
4.31
Ounces
gold
2016
Ounces
gold
2015
25,660
103,593
42,328
171,581
35,000
2,000
37,000
7,000
2,000
9,000
-
120,795
42,328
163,123
35,000
2,000
37,000
7,000
2,000
9,000
Variance
Au oz
2016 -
2015
(oz)
25,660
(17,202)
8,458
0
0
Total Resources
1,037,914
6.52
217,581
209,130
8,458
Notes to Halls Creek Ore Reserve and Mineral Resource tables:
1 The Halls Creek Project Mineral Resource and Ore Reserve were estimated and reported to
the ASX on 30 of May 2016.
JORC 2012 Table 1 declarations are contained in a separate section of this report (see index).
2
3 Bulletin Resources held a 20% interest in the Halls Creek Project and as such had an equitable
interest in 20% of the Ore Reserve and Mineral Resource up until completion of acquisition on
14 July 2016
4 Rounding errors may be included in the tables.
9
BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2016
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 qualified 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 carried out reviews of the quality and suitability of the data underlying the
estimates, including a site visit of the project.
Financial
Due to the previously advised delay in commencement of production from the Nicolsons Gold Project
and in order to pre-empt any temporary shortfall in immediate cash flow prior to commencement of
production and gold sales revenue, in August 2015 Bulletin entered into an agreement for additional
funding via a loan agreement with an independent party for an additional $600,000 to secure Bulletin’s
share of joint venture funding of the Nicolsons Gold Project as it entered the production phase.
As part of that funding arrangement the board of Bulletin agreed it would 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.
The Bulletin board took the view that this loan funding was preferable to raising additional capital from
shareholders and that once full production was achieved Bulletin will seek to repay the loan as early as
possible.
In addition the Company’s financiers, the Commonwealth Bank of Australia, amended the terms of the
gold prepayment facility and hedge facility so that commencement of repayment would be deferred to
January 2016 from its original November 2015 date in recognition of the delays to the commencement
of production.
In May 2016 after announcing the transaction to dispose of its 20% interest the Company decided that
in order to fund the balance of its share of joint venture expenditure commitments during the period to
settlement the Company entered into an additional short term loan from an independent party for
$750,000 with an interest rate of 12% per annum. This short term loan as well as the existing loan were
repaid in full subsequent to the end of the quarter.
Bulletin commenced repayment of the Commonwealth Bank of Australia gold prepayment facility during
the year but as part of the above transaction Pantoro assumed all loan repayment to the CBA from 1
May 2016. Bulletin delivered approximately 265 ounces of gold in loan repayments to CBA during the
year up until 1 May 2016. As part of the transaction Bulletin no longer has any outstanding loan with
the CBA.
During the financial year Bulletin disposed of its original shareholding in Pantoro generating proceeds
of approximately $1.18 million.
Competent Persons Statements and JORC table
Halls Creek Tenements – Exploration Targets, Exploration Results and Mineral Resources
The information in this report that relates to Exploration Targets, Exploration Results and Mineral
Resources is based on information compiled by Mr. Scott Huffadine (B.Sc. (Hons)) MAusIMM who is a
full time employee and director of Pantoro Limited. Mr. Huffadine 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. Huffadine
consents to the inclusion in this report of the matters based on his information in the form and context
10
BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2016
in which it appears. Mr. Huffadine is eligible to participate in short and long term incentive plans of and
holds shares and options in the Company as has been previously disclosed.
Halls Creek Tenements – Ore Reserves
The information in this report that relates to Ore Reserves is based on information compiled by Mr. Paul
Cmrlec (B. Eng (Mining) (Hons)), MAusIMM who is the Managing Director of Pantoro 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. Mr. Cmrlec is eligible to participate in
short and long term incentive plans of and holds shares and options in the Company as has been
previously disclosed.
Halls Creek Tenements – Mineral Resources and Ore Reserves
The information in this report that relates to Mineral Resources and Ore Reserves at the Halls Creek
Project is extracted from the report entitled “Mineral Resource and Ore Reserve Upgrades
Demonstrates Strong Growth Potential at Nicolsons” created on 30 May 2016 and is available to view
on Pantoro’s website (http://www.pantoro.com.au/). The company confirms that it is not aware of any
new information or data that materially affects the information included in the original market
announcement and, in the case of estimates of Mineral Resources or Ore Reserves that all material
assumptions and
the relevant market
announcement continue to apply and have not materially changed. The company confirms that the form
and context in which the Competent Persons’ findings are presented have not been materially modified
from the original market announcement.
technical parameters underpinning
the estimates
in
11
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Your Directors present their report on the entity Bulletin Resources Limited (“Bulletin” or the “Company”)
for the year ended 30 June 2016.
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
FCPA
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:
3,000,000 ordinary shares
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:
39,784,133 ordinary shares
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 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
12
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2016
Interest in shares and options of the Company:
2,250,000 ordinary shares
COMPANY SECRETARY
Mr Andrew Chapman
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).
13
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2016
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 and subsequently
production from the Nicolsons Gold Project in which the Group held a 20% interest.
On 2 May 2016 the Group announced it had entered into a transaction to dispose of its interest in the
Nicolsons Gold Project. Subsequent to the end of the financial year on 14 July 2016 the transaction
settled resulting in the disposal of the Group’s major activity.
FINANCIAL RESULTS AND FINANCIAL POSITION
The Group’s net loss for the year after income tax is $1,042,338 (2015: Loss of $636,207).
The Group’s net loss for the year includes the following items:
• Revenue from gold sales of $3,698,379 (2015: Nil).
• Loss on sale of investments of $71,014 (2015: Nil)
• Cost of sales from production of $3,503,448 (2015: Nil)
• Total corporate and administrative expenses of $304,855 (2015: $354,866) and director
fees/employee benefits expense of $524,525 (2015: $223,239) were incurred for the year.
• The write-off of exploration expenditure of $15,701 (2015: $20,158).
• Share based payments expense of $Nil (2015: $45,358)
• Loss from discontinued operations of $113,139 (2015: Nil)
Review of Financial Condition
As at 30 June 2016 the Group had net assets of $1,502,891 (2015: $$2,129,619).
The Company raised $157,500 (2015: $682,129) before costs from the issue of shares during the
financial year.
Cash reserves at 30 June 2016 were $493,667 compared to $857,951 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 2016
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.
14
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2016
EVENTS SUBSEQUENT TO THE REPORTING DATE
On 7 July 2016 the Group held a shareholders meeting whereby shareholders approved of the disposal
of the Group’s interest in the Nicolsons Gold Project and a proposed in-specie distribution of Pantoro
shares to Bulletin shareholders.
On 14 July 2016 the Group announced that it had settled the sale of its interest in the Nicolsons Gold
Project to Pantoro and in return had received 130 million Pantoro fully paid ordinary shares. Bulletin
sold 15 million Pantoro shares on the same date for $2.175M in proceeds. In addition the Group
assigned its CBA secured gold prepayment and hedge facility to Pantoro resulting in it no longer having
any secured debt.
On 25 July 2016 the Group confirmed that it had completed the in-specie distribution of Pantoro shares
on the basis of one Pantoro share for every two Bulletin shares held. This resulted in approximately
89.6 million Pantoro shares being distributed to Bulletin shareholders.
On 26 July 2016 the Group repaid its unsecured loan facilities with Auro Pty Ltd via a cash payment of
$1.27 million and the transfer of 1 million Pantoro shares. The Group is now debt free.
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
Paul Poli
Robert Martin
Frank Sibbel
Eligible
Attended
7
7
7
7
7
7
15
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2016
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
3,000,000
2,250,000
39,784,133
Options granted to directors and officers of the Company
During or since the end of the financial year, the Company has granted no options over unissued
ordinary shares in the Company to directors or officers of the Company as part of their remuneration.
SHARE OPTIONS
As at the date of this report there are no unissued ordinary shares of Bulletin Resources Limited under
option.
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 5,250,000 ordinary shares as a
result of the exercise of options. Each option had an exercise price of $0.03 each.
16
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2016
REMUNERATION REPORT (Audited)
Principles of Compensation
This remuneration report for the year ended 30 June 2016 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
Position
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Mr Andrew Chapman
Company Secretary
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.
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.
17
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2016
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.
Remuneration report at 2015 Financial Year AGM
The 2015 financial year remuneration report received positive shareholder support at the 2015 annual
general meeting with a vote of 99.9% in favour.
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.
18
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2016
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.
During the year there was an STI payment of $75,000 accrued for each of the directors in relation to
the sale of the Company’s 20% interest in the Nicolsons Gold Project. The STI was paid in July 2016.
The remuneration report for the Non-Executive Directors for the year ending 30 June 2016 and 30 June
2015 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 2016 and 30 June 2015 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 2016 and 30 June
2015 is detailed in this report.
19
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2016
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.
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. The Board has no pre-determined performance criteria against which the amount of a STI is
assessed and there are no pre-determined maximum possible values of award under the STI scheme.
In assessing the value of an STI award to be granted the Board will give consideration to the contribution
of the action being rewarded to the success of the Group. Based on the performance of the individuals
and the Group, a discretionary STI cash bonus of $75,000 was awarded in respect of the 2016 financial
year and no STI cash bonuses were paid in respect of the 2015 financial year. No discretionary STI
cash bonuses relating to the 2016 or 2015 financial years will become payable in future financial years.
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
2016
$0.071
2015
$0.02
2014
$0.014
2013
$0.017
2012
$0.075
(784,229)
(1,007,455)
926,802
(3,831,844)
(5,917,132)
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BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2016
C. 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.
D. OTHER INFORMATION
Compensation Options and Performance Rights Granted and Vested during the year
There were 3,750,000 options exercisable at $0.03 each and expiring 30 November 2017 on issue at
the beginning of the period. No options were granted or vested during the year. All of the 3,750,000
options were exercised during the year in accordance with their terms and conditions.
2016
Shares Issued
Paid per Share
No.
Cents
P Poli
F Sibbel
R Martin
A Chapman
Total
1,000,000
2,000,000
500,000
250,000
3,750,000
3
3
3
3
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.
22
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2016
REMUNERATION REPORT (Continued)
Value of Options and Performance Rights granted as part of remuneration
There were no options issued during the year.
Shareholdings of Key Management Personnel
Year Ended 30 June 2016
Paul Poli
Robert Martin
Frank Sibbel
Andrew Chapman
TOTAL
Balance
1 July 2015
625,000
34,646,755
250,000
266,666
35,788,421
Granted
as
Remuneration
-
-
-
-
-
Options
Exercised
Other
Changes
1,000,000
500,000
2,000,000
250,000
3,750,000
1,375,000
4,637,378
-
-
14,212,584
Balance
30 June 2016
3,000,000
39,784,133
2,250,000
516,666
45,550,799
Option Holdings of Key Management Personnel
Year Ended 30 June 2016
Paul Poli
Robert Martin
Frank Sibbel
Andrew Chapman
TOTAL
Balance 1
July 2015
1,000,000
500,000
2,000,000
250,000
3,750,000
Granted
as
Remuneration
Options
Exercised
- 1,000,000
500,000
-
- 2,000,000
-
250,000
- 3,750,000
Net Change
Other
Balance 30
June 2016
-
-
-
-
-
-
-
-
-
-
Vested and
Exercisable
-
-
-
-
-
Shares provided on exercise of remuneration options
During the financial year ended 30 June 2016, 3,750,000 options were exercised at an exercise price
of $0.03 each.
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 $61,874 has been charged to Bulletin for these services (2015: $78,741). At 30
June 2016 there was an outstanding balance of $44,336 (2015: $12,482) owing to Matsa.
There have been no loans made to Key Management Personnel during the 2016 reporting period (2015:
nil).
End of Audited Remuneration Report
23
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2016
INDEMNIFICATION
During the year $6,044 (2015: $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 2017.
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 77.
Signed in accordance with a resolution of the Directors dated this 30th day of September 2016.
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 (2015: Nil).
Signed in accordance with a resolution of the directors.
_____________________________
Mr. Paul Poli
Chairman
30 September 2016
24
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2016
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 2016, 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
25
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2016
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
26
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2016
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
27
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2016
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
28
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2016
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.
29
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2016
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.
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
are those who have been longest in office since their last election.
30
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2016
2.
THE BOARD OF DIRECTORS (continued)
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 affect 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 Bulletin 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;
31
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2016
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 three non-
executive Directors who all represent significant shareholders. 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
32
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2016
3.
BOARD COMMITTEES (continued)
3(a) Audit Committee (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.
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.
33
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2016
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:
34
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2016
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.
35
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2016
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.
36
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2016
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.
37
BULLETIN RESOURCES LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2016
Notes
2016
$
2015
$
Revenue from continuous operations
Interest received
Other expenses
Listing and share registry expense
Depreciation
Professional fees
Directors fees
Exploration cost written off
Legal fees
Administration expenses
Employee benefit expense
Finance costs
Loss on sale of investments
Loss on sale of plant and equipment
Share based payments expense
Audit fees & other services
Expenses from operations
Loss from operations before income tax expense
Income tax expense
Loss from continuing operations
Loss from discontinued operations
Loss for the year
Other comprehensive income
Items that may be reclassified subsequently through
profit or loss
Net change in fair value of available-for-sale financial
assets
Available-for-sale financial assets – realised in profit or
loss on disposal
Total comprehensive profit/(loss) for the year
Total comprehensive loss for the year attributable
to members of Bulletin Resources Limited
Loss per share for the year from continuing operations
attributable to the members of Bulletin Resources
Limited
Basic (loss) per share (cents)
Diluted (loss) per share (cents)
Loss per share for the year attributable to the members
of Bulletin Resources Limited
Basic (loss) per share (cents)
Diluted (loss) per share (cents)
2
7
21
10
9
19
19
-
-
47
47
11,739
27,680
(29,039)
(9,700)
-
(392,742)
(15,701)
(93,113)
(133,144)
(131,785)
(126,236)
(71,013)
(2,045)
-
(49,559)
(1,054,077)
(1,042,338)
-
(1,042,338)
(28,750)
(20,313)
(13,887)
(169,000)
(20,158)
(158,042)
(125,079)
(54,239)
-
-
-
(45,358)
(29,108)
(663,934)
(636,207)
-
(636,207)
(113,139)
-
(1,155,477)
(636,207)
298,937
(371,248)
72,311
-
371,248
(371,248)
(784,229)
(1,007,455)
(0.60)
(0.60)
(0.66)
(0.66)
(0.45)
(0.45)
-
-
The above statement of profit or loss and other comprehensive income should be read in conjunction
with the accompanying notes.
38
BULLETIN RESOURCES LIMITED
STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 30 JUNE 2016
NOTES
2016
$
2015
$
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Available-for-sale financial assets
Assets classified as held for sale
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
Borrowings
Deferred revenue
3
4
5
6
9
8
7
11
12
13
14
15
Liabilities directly associated with assets
classified as held for sale
9
493,667
-
-
-
493,667
5,820,600
6,314,267
-
-
-
-
6,314,267
776,311
-
-
1,386,365
-
2,162,676
2,648,700
857,951
810,652
8,986
883,924
2,561,513
-
2,561,513
1,059,136
1,690,719
299,463
3,049,318
5,610,831
790,441
9,305
21,895
-
567,642
1,389,283
-
TOTAL CURRENT LIABILITIES
4,811,376
1,389,283
NON-CURRENT LIABILITIES
Provisions
Deferred revenue
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
13
15
16
17
18
-
-
-
4,811,376
1,502,891
359,570
1,732,358
2,091,928
3,481,211
2,129,620
14,647,689
47,808
(13,192,606)
1,502,891
14,490,189
(323,440)
(12,037,129)
2,129,620
The above statement of financial position should be read in conjunction with the accompanying notes.
39
BULLETIN RESOURCES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2016
Issued
Capital
Accumulated
Losses
Other
Reserves
Total
Equity
Settled
Benefits
Reserve
$
$
$
$
$
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
Issue of shares
Share issue costs
Share based payments
-
-
682,130
(41,196)
-
(636,207)
-
(371,248)
(1,007,455)
(636,207)
(371,248)
(1,007,455)
-
-
-
45,358
-
-
-
682,130
(41,196)
45,358
Balance at 30 June 2015
14,490,189
(12,037,129)
47,808
(371,248)
2,129,620
Issued
Capital
Accumulated
Losses
Other
Reserves
Total
Equity
Settled
Benefits
Reserve
$
$
$
$
$
Balance at 1 July 2015
14,490,189
(12,037,129)
47,808
(371,248)
2,129,620
Loss attributable to members
Loss
discontinued operations
attributable
to
Total comprehensive loss for
the year
Transactions with owners in
their capacity as owners
Issue of shares
Share issue costs
Share based payments
-
-
-
(1,042,338)
(113,139)
(1,155,477)
157,500
-
-
-
-
-
-
-
-
-
-
-
Balance at 30 June 2016
14,647,689
(13,192,606)
47,808
371,248
(671,090)
-
(113,139)
371,248
(784,229)
-
-
-
-
157,500
-
-
1,502,891
The above statement of changes in equity should be read in conjunction with the accompanying notes.
40
BULLETIN RESOURCES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest received
Interest paid
Net cash inflows/(outflows) in operating activities (Note 3b)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
Payments for exploration expenditure
Proceeds from sale of available-for-sale-investments
Proceeds on sale of plant and equipment
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
Proceeds from loan monies
Gold loan (Note 15)
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)
2016
2015
3,348,529
(3,061,176)
11,739
(89,871)
209,221
47
(575,211)
25,815
-
(549,349)
-
-
1,184,858
20,000
-
(1,439,177)
(47,848)
(1,798,838)
(2,081,005)
-
(14,373)
-
-
(56,312)
(1,501,775)
(8,743)
(799,501)
(2,380,704)
157,500
-
1,350,000
-
1,507,500
682,130
(41,196)
-
2,300,000
2,940,934
(364,284)
10,881
857,951
847,070
493,667
857,951
The above statement of cash flow should be read in conjunction with the accompanying notes.
41
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial report of Bulletin Resources Limited for the year ended 30 June 2016 were
authorised for issue in accordance with a resolution of the Board of Directors on 30 September 2016.
Bulletin Resources Limited is a for-profit entity limited by shares incorporated and domiciled in Australia
whose shares are publicly traded on the Australian Securities Exchange.
The nature of the operations and principal activities of the Group are described in the Directors’ Report.
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 2015. 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 2015, 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.
Reference
Title
Summary
AASB 2013-9
Amendments to
Australian
Accounting
Standards –
Conceptual
Framework,
Materiality and
Financial
Instruments
The Standard contains three main parts and makes
amendments to a number Standards and Interpretations.
Part A of AASB 2013-9 makes consequential amendments
arising from the issuance of AASB CF 2013-1.
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.
Application Date of
Standard *
Application Date for
Consolidated Entity *
1 January 2015
1 July 2015
42
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
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
Application Date of
Standard *
Application Date for
Consolidated Entity *
1 July 2015
1 July 2015
*Designates the beginning of the applicable annual reporting period unless otherwise stated.
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 2016. The Directors have not
yet determined the impact of new and amended accounting standards and interpretations applicable
1 July 2016.
Application Date of
Standard *
1 January 2018
Application Date
for Consolidated
Entity *
1 July 2018
Reference
Title
Summary
AASB 9
Financial
Instruments
AASB 9 (December 2014) is a new standard which replaces
AASB 139. This new version supersedes AASB 9 issued in
December 2009 (as amended) and AASB 9 (issued in
December 2010) and includes a model for classification and
measurement, a single, forward-looking ‘expected loss’
impairment model and a substantially-reformed approach to
hedge accounting.
AASB 9 is effective for annual periods beginning on or after 1
January 2018. However, the Standard is available for early
adoption. The own credit changes can be early adopted in
isolation without otherwise changing the accounting for
financial instruments.
Classification and measurement
AASB 9 includes requirements for a simpler approach for
classification and measurement of financial assets compared
with the requirements of AASB 139. There are also some
changes made in relation to financial liabilities.
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
in other
instruments that are not held for trading
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.
43
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Reference
Title
Summary
AASB 9
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)
•
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.
•
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 or losses attributable to changes in the entity’s own
credit risk would be recognised in OCI. These amounts
recognised in OCI are not recycled to profit or loss if the
liability is ever repurchased at a discount.
Impairment
The final version of AASB 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.
.
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.
Application Date of
Standard *
Application Date
for Consolidated
Entity *
1 January 2018
1 July 2018
1 January 2016
1 July 2016
1 January 2016
1 July 2016
44
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Reference
Title
Summary
AASB 15
Revenue from
Contracts with
Customers
AASB 1057
Application of
Australian
Accounting
Standards
(Interpretation 13 Customer
Interpretation 15 Agreements
AASB 15 Revenue from Contracts with Customers replaces
the existing revenue recognition standards AASB 111
Construction Contracts, AASB 118 Revenue and related
Interpretations
Loyalty
the
Programmes,
Construction of Real Estate, Interpretation 18 Transfers of
Assets from Customers, Interpretation 131 Revenue—Barter
Transactions
and
Interpretation 1042 Subscriber Acquisition Costs in the
Telecommunications Industry). AASB 15 incorporates the
requirements of IFRS 15 Revenue from Contracts with
Customers issued by the International Accounting Standards
Board (IASB) and developed jointly with the US Financial
Accounting Standards Board (FASB).
Advertising
Involving
Services
for
AASB 15 specifies the accounting treatment for revenue
arising from contracts with customers (except for contracts
within the scope of other accounting standards such as leases
or financial instruments).The core principle of AASB 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
AASB 2015-8 amended the AASB 15 effective date so it is now
effective for annual reporting periods commencing on or
after 1 January 2018. Early application 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
requirements on
AASB 2016-3 Amendments
to Australian Accounting
Standards – Clarifications to AASB 15 amends AASB 15 to
clarify
identifying performance
obligations, principal versus agent considerations and the
timing of recognising revenue from granting a licence and
provides further practical expedients on transition to AASB
15.
This Standard lists the application paragraphs for each other
Standard (and Interpretation), grouped where they are the
same. Accordingly, paragraphs 5 and 22 respectively specify
the application paragraphs for Standards and Interpretations
in general. Differing application paragraphs are set out for
individual Standards and Interpretations or grouped where
possible.
The application paragraphs do not affect requirements in
other Standards that specify that certain paragraphs apply
only to certain types of entities.
Application Date of
Standard *
Application Date
for Consolidated
Entity *
1 January 2018
1 July 2018
1 January 2016
1 July 2016
45
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Application Date
of Standard *
Application Date
for Consolidated
Entity *
1 January 2016
1 July 2016
Reference
Title
Summary
AASB 2015-1
Amendments to
Australian
Accounting
Standards –
Annual
Improvements
to Australian
Accounting
Standards 2012–
2014 Cycle
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 vice versa), an
entity shall not follow the guidance in paragraphs 27–29 to
account for this change.
is
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
‘continuing
to decide whether a servicing contract
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 2015-2
Amendments to
Australian
Accounting
Standards –
Disclosure
Initiative:
Amendments to
AASB 101
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
1 January 2016
1 July 2016
46
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Application Date of
Standard *
Application Date
for Consolidated
Entity *
1 January 2016
1 July 2016
1 January 2019
1 July 2019
Reference
Title
Summary
AASB 2015-9
AASB 16
Amendments to
Australian
Accounting
Standards –
Scope and
Application
Paragraphs
[AASB 8, AASB
133 & AASB
1057]
Leases
This Standard inserts scope paragraphs into AASB 8 and
AASB 133 in place of application paragraph text in AASB
1057. This is to correct inadvertent removal of these
paragraphs during editorial changes made in August 2015.
There is no change to the requirements or the applicability
of AASB 8 and AASB 133.
The key features of AASB 16 are as follows:
Lessee accounting
• Lessees are required to recognise assets and liabilities for
all leases with a term of more than 12 months, unless the
underlying asset is of low value.
• A lessee measures right-of-use assets similarly to other
non-financial assets and lease liabilities similarly to other
financial liabilities.
• Assets and liabilities arising from a lease are initially
measured on a present value basis. The measurement
includes non-cancellable lease payments (including inflation-
linked payments), and also includes payments to be made in
optional periods if the lessee is reasonably certain to
exercise an option to extend the lease, or not to exercise an
option to terminate the lease.
• AASB 16 contains disclosure requirements for lessees.
Lessor accounting
• AASB 16 substantially carries forward the lessor
accounting requirements in AASB 117. Accordingly, a lessor
continues to classify its leases as operating leases or finance
leases, and to account for those two types of leases
differently.
• AASB 16 also requires enhanced disclosures to be provided
by lessors that will improve information disclosed about a
lessor’s risk exposure, particularly to residual value risk.
AASB 16 supersedes:
(a) AASB 117 Leases
(b) Interpretation 4 Determining whether an Arrangement
contains a Lease
(c) SIC-15 Operating Leases—Incentives
(d) SIC-27 Evaluating the Substance of Transactions Involving
the Legal Form of a Lease
The new standard will be effective for annual periods
beginning on or after 1 January 2019. Early application is
permitted, provided the new revenue standard, AASB 15
Revenue from Contracts with Customers, has been applied,
or is applied at the same date as AASB 16.
47
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Application Date of
Standard *
Application Date
for Consolidated
Entity *
1 January 2017
1 July 2017
1 January 2017
1 July 2017
1 January 2018
1 July 2018
1 January 2018
1 July 2018
1 January 2018
1 July 2018
Reference
Title
Summary
2016-1
2016-2
IFRS 2
(Amendments
)
2016-3
AASB 2014-10
Amendments to
Australian
Accounting
Standards –
Recognition of
Deferred Tax
Assets for
Unrealised
Losses [AASB
112]
Amendments to
Australian
Accounting
Standards –
Disclosure
Initiative:
Amendments to
AASB 107
Classification
and
Measurement of
Share-based
Payment
Transactions
[Amendments
to IFRS 2]
Amendments to
Australian
Accounting
Standards –
Clarifications to
AASB 15
Sale or
Contribution of
Assets between
an Investor and
its Associate or
Joint Venture
(Amendments
to
AASB 10 and
AASB 128)
This Standard amends AASB 112 Income Taxes (July 2004)
and AASB 112 Income Taxes (August 2015) to clarify the
requirements on recognition of deferred tax assets for
unrealised losses on debt instruments measured at fair
value.
This Standard amends AASB 107 Statement of Cash Flows
(August 2015) to require entities preparing financial
statements in accordance with Tier 1 reporting requirements
to provide disclosures that enable users of financial
statements to evaluate changes in liabilities arising from
financing activities, including both changes arising from cash
flows and non-cash changes.
This standard amends to IFRS 2 Share-based Payment,
clarifying how to account for certain types of share-based
payment transactions. The amendments provide
requirements on the accounting for:
• The effects of vesting and non-vesting conditions on the
measurement of cash-settled share-based payments
• Share-based payment transactions with a net settlement
feature for withholding tax obligations
• A modification to the terms and conditions of a share-
based payment that changes the classification of the
transaction from cash-settled to equity-settled
This Standard amends AASB 15 Revenue from Contracts with
Customers to clarify the requirements on identifying
performance obligations, principal versus agent
considerations and the timing of recognising revenue from
granting a licence. In addition, it provides further practical
expedients on transition to AASB 15.
Amends AASB 10 and AASB 128 to remove the inconsistency
in dealing with the sale or contribution of assets between an
investor and its associate or joint venture. A full gain or loss is
recognised when a transaction involves a business (whether
it is housed in a subsidiary or not). A partial gain or loss is
recognised when a transaction involves assets that do not
constitute a business, even if these assets are housed in a
subsidiary.
The mandatory application date of AASB 2014-10 has been
amended and deferred to annual reporting periods
beginning on or after 1 January 2018 by AASB 2015-10.
*
Designates the beginning of the applicable annual reporting period unless otherwise stated.
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:
48
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Gold sales
Revenue from gold production is recognised when the significant risks and rewards of ownership
have passed to the buyer.
Interest Income
Revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the
relevant period using the effective interest rate, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to the net carrying amount of
the financial asset.
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 or 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.
49
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
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
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and
are subsequently remeasured to their fair value at the end of the reporting period. The accounting
for subsequent changes in fair value depends on whether the derivative is designated as a hedging
instrument, and if so, the nature of the item being hedged.
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.
50
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
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.
(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.
51
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
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
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.
52
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
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
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.
53
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
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.
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.
54
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
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.
(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 or 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.
55
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(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. Where the loan does not satisfy the “own
use exemption”, it is measured in accordance with AASB 139 – at fair value through profit or loss.
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) Non-current assets and disposal groups held for sale and discontinued operations
Non-current assets and disposal groups are classified as held for sale and measured at the lower
of their carrying amount and fair value less costs to sell if their carrying amount will be recovered
principally through a sale transaction. They are not depreciated or amortised. For an asset or
disposal group to be classified as held for sale it must be available for immediate sale in its present
condition and its sale must be highly probable.
An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal
group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair
value less costs to sell of an asset (or disposal group), but is not in excess of any cumulative
impairment loss previously recognised. A gain or loss not previously recognised by the date of the
sale of the non-current asset (or disposal group) is recognised as the date of derecognition.
A discontinued operation is a component of the entity that has been disposed of or is classified as
held for sale and that represents a separate major line of business or geographical area of
operations, is part of a single coordinated plan to dispose of such a line of business or area of
operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued
operations are presented separately on the face of the statement of profit or loss and other
comprehensive income and the assets and liabilities are presented separately on the face of the
statement of financial position.
(u)
Interest-bearing Loans and Borrowings
All loans and borrowings are initially recognised at the fair value of the consideration received
less directly attributable transaction costs.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortised cost using the effective interest rate method.
Borrowings are classified as current liabilities unless the Consolidated Entity has the
unconditional right to defer settlement of the liability for at least 12 months after the reporting
date.
(v) 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.
56
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
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 2016 to recoup these losses. The Company has,
subsequent to the end of the financial year, disposed of its interest in the Nicolsons Gold Project and
will need to assess the tax effect of this transaction on its ability to recoup the losses.
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.
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.
57
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
2. REVENUE FROM CONTINUING OPERATIONS
Other income
3. CASH & CASH EQUIVALENTS
Cash & cash equivalents (a)
2016
$
2015
$
47
47
-
-
2016
$
493,667
493,667
2015
$
857,951
857,951
(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. There were no non-
cash investing and financing activities during the year.
Loss after income tax
Exploration expenditure written off
Share based payments expense
Loss on sale of investments
Loss on sale of fixed assets
Depreciation
Amortisation and depreciation of joint venture assets
Return of Rehabilitation and tenement bonds
(Increase)/Decrease in trade and other receivables
Increase/(Decrease) in trade and other payables
Net cash from/(used in) operating activities
4. TRADE & OTHER RECEIVABLES
Cash held in joint venture (i)
Other receivables – joint venture
Trade and other receivables attributable to discontinued
operations
2016
$
(1,155,477)
2015
$
(636,207)
15,701
-
71,014
2,045
9,700
692,720
-
573,518
209,221
-
45,358
-
-
20,313
-
-
4,750
16,437
(549,349)
2016
$
504,275
-
(504,275)
-
2015
$
763,874
46,778
-
810,652
(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 has been treated as a receivable.
58
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
5. INVENTORIES
Stores and spares at cost – joint venture
6. AVAILABLE-FOR-SALE FINANCIAL ASSETS
Listed equity securities – carried at fair value (a)
2016
$
2016
$
2015
$
8,986
8,986
2015
$
883,924
883,924
-
-
-
-
(a) The Company held shares in Pantoro 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. The Company
sold all its shares in PNR during the year.
At the end of the previous period the fair value of the investment was lower than the carrying value,
the Company therefore recognised a fair value adjustment of $371,248 which was recorded within
equity.
7. PROPERTY, PLANT AND EQUIPMENT
Buildings at cost
Accumulated depreciation
Plant and machinery at cost
Accumulated depreciation
Motor vehicles
Accumulated depreciation
Office equipment
Accumulated depreciation
Capital work in progress
Total property, plant and equipment
Movements in property, plant and equipment
Buildings
At 1 July net of accumulated depreciation
Additions
Disposals
Assets held for sale
Depreciation expense
At 30 June net of accumulated depreciation
2016
$
2015
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2016
$
-
99,240
-
(92,718)
(6,522)
-
-
-
-
375,452
(202,434)
173,018
32,517
(19,375)
13,142
9,454
(6,671)
2,783
1,501,775
1,690,719
2015
$
-
-
-
-
-
-
59
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
7. PROPERTY, PLANT AND EQUIPMENT (continued)
Motor Vehicles
At 1 July net of accumulated depreciation
Additions
Disposals
Assets held for sale
Depreciation expense
At 30 June net of accumulated depreciation
Plant and Machinery
At 1 July net of accumulated depreciation
Additions
Disposals
Assets held for sale
Depreciation expense
At 30 June net of accumulated depreciation
Office Equipment
At 1 July net of accumulated depreciation
Additions
Disposals
Depreciation expense
At 30 June net of accumulated depreciation
Capital Work in Progress
At 1 July
Additions
Transfers to buildings
Transfers to plant and machinery
Transfers to mine property and development
Assets held for sale
At 30 June
13,142
-
-
(12,511)
(631)
-
173,018
1,302,973
-
(1,347,658)
(128,333)
-
2,783
-
(2,045)
(738)
-
1,501,775
3,201,051
(99,240)
(1,302,973)
(3,010,985)
(289,628)
-
15,020
-
-
-
(1,878)
13,142
190,922
-
-
-
(17,904)
173,018
3,314
-
-
(531)
2,783
-
1,501,775
-
-
-
-
1,501,775
60
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
8. MINE PROPERTY AND DEVELOPMENT
Development areas at cost
- Mine site establishment
Net carrying amount
Mine capital development
Accumulated amortisation
Net carrying amount
Total mine properties and development
Movement in mine property and development
Development areas at cost
At 1 July
Transfer from exploration expenditure capitalised
Additions
Assets held for sale
Amortisation charge for the year
At 30 June
Mine capital development
At 1 July
Additions
Assets held for sale
Amortisation charge for the year
Net carrying amount
2016
$
2015
$
-
-
-
-
-
-
2016
$
465,162
-
968,601
(1,190,113)
(243,650)
-
593,974
2,042,384
(2,130,325)
(506,033)
-
465,162
465,162
593,974
-
593,974
1,059,136
2015
$
-
259,635
205,527
-
-
465,162
-
593,974
-
-
593,974
9. DISCONTINUED OPERATIONS AND ASSET HELD FOR SALE
On 2 May 2016 the Company announced that it had entered into an agreement with its joint venture
partner Pantoro to dispose of its 20% interest in the Nicolsons Gold Project with effect from 1 May 2016.
From that date the Company lost the rights to those assets. The Company announced it had executed
a Joint Venture Interest Sale and Purchase Agreement on 15 May 2016 with Pantoro whereby subject
to completion of all legal agreements, receipt of shareholder, regulatory, and financier approvals to
approve the transaction the consideration for the sale of Bulletin’s 20% interest in Nicolsons was as
follows:
1.
2.
3.
Pantoro to issue Bulletin 130 million fully paid ordinary Pantoro shares;
Halls Creek Mining Pty Ltd (HCM), the Operator, assumed 100% of Bulletin’s obligations under
its gold loan finance facility with the CBA such that Bulletin has no further obligations to the CBA
subsequent to settlement.
HCM will assume 50% of the responsibility of the gold hedge facility provided by CBA prior to
settlement and 100% thereafter.
In addition, and as part of the agreement, the Board of Bulletin has elected to make, after settlement,
an in-specie distribution of one Pantoro share for every two Bulletin shares held at the time of the in-
specie distribution.
61
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
9. DISCONTINUED OPERATIONS AND ASSET HELD FOR SALE (continued)
A shareholder meeting was held on 7 July 2016 where shareholders unanimously approved both the
sale of the interest in Nicolsons as well as the in-specie distribution. The disposal of the Company’s
interest was settled on 14 July 2016. The in-specie distribution occurred on 25 July 2016.
At 30 June 2016, the Company’s interest in the Nicolsons Gold Project was classified as discontinued
operations. The results from the Company’s interest in the Nicolsons Gold Project for the year are
presented below:
Revenue
Cost of Sales
Profit before income tax from discontinued operations
Other expenses
Income tax expense
Loss for the year from discontinued operations attributable to
members of Bulletin Resources Limited
2016
$
3,739,240
(3,503,448)
235,792
(348,931)
-
(113,139)
2015
$
-
-
-
-
-
-
The major classes of assets and liabilities relating to the Company’s share of the Nicolsons Gold Project
classified as discontinued operations are as follows:
Assets
Cash held in joint venture
Property, plant and equipment
Mine property and development
Exploration expenditure capitalised
Assets held for discontinued operations
Liabilities
Other creditors
Provision for rehabilitation
Deferred revenue
Liabilities directly associated with discontinued operations
2016
$
504,275
1,974,462
3,320,438
21,425
5,820,600
358,010
361,401
1,929,289
2,648,700
Net assets directly associated with discontinued operations
3,171,900
Net cash flows from:
- Operating
-
Investing
- Financing
944,381
(3,285,863)
-
Deferred revenue is a gold prepayment facility held with the Commonwealth Bank of Australia (CBA)
and consists of:
• 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.
62
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
9. DISCONTINUED OPERATIONS AND ASSET HELD FOR SALE (continued)
As the Company no longer qualifies for the own use exemption it has brought to account the hedge
liability onto its balance sheet due to it being one of the sale terms of its interest in the Nicolsons Gold
project.
10. INCOME TAX
(a) Numerical reconciliation of income tax expense
to prima facie tax payable
(Loss) from ordinary activities before income tax expense
Prima facie tax expense/(benefit) on profit/(loss) from
ordinary activities
at 30% (2015: 30%)
Tax effect of amounts which are not deductible
(taxable) in calculating taxable income
Share based payments
Movement in unrecognised temporary differences
Tax losses utilised previously not recognised
Income Tax Expense
(b) Unrecognised temporary differences
Deferred Tax Assets (at 30%)
Assets held for sale
Capital raising costs
Borrowing costs
Accruals
Provisions
Carry forward tax losses
Deferred Tax Liabilities (at 30%)
Mine property and development
Mineral exploration
2016
$
2015
$
(1,155,476)
(636,207)
(346,643)
(190,862)
-
(346,643)
346,643
-
13,607
(177,255)
177,255
-
-
-
25,894
27,523
-
110,815
3,835,863
4,000,094
111,374
38,824
-
2,792
110,518
3,984,755
4,248,263
77,891
75,993
153,883
77,891
89,838
167,729
Net Deferred Tax Assets (at 30%)
3,846,211
4,080,535
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.
63
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
11. EXPLORATION EXPENDITURE CAPITALISED
Opening Balance
Acquisition of assets – joint venture
Transfer to Mine Property and Development
Additions
Provision for amortisation
Assets held for sale
Note
2016
$
299,463
-
(290,720)
47,317
(34,635)
(21,425)
-
2015
$
259,635
299,463
(259,635)
-
-
-
299,463
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.
12. TRADE & OTHER PAYABLES
Trade payables (a)
Sundry creditors and accruals (b)
Trade & other payables – joint venture (a)
Sundry creditors and accruals – joint venture (b)
2016
$
704,322
71,989
-
-
776,311
2015
$
3,101
50,647
693,359
43,334
790,441
(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.
13. PROVISIONS
Current
Provision for annual leave – joint venture
Non-Current
Provision for Rehabilitation Costs
Opening Balance
Transfer to discontinued operations
Additions
Note
2016
$
2015
$
-
-
359,570
(361,401)
1,831
-
9,305
9,305
68,850
-
290,720
359,570
64
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
14. INTEREST BEARING LOANS
Current
Finance lease liability (i)
Unsecured loan (ii)
2016
$
-
1,386,365
1,386,365
2015
$
21,895
-
21,895
(i)
(ii)
Represents the Company’s share of the finance leases which have repayment terms of less
than 12 months over motor vehicles at the Nicolsons Gold Project.
Represents two separate unsecured loan owing to Auro Pty Ltd including for both interest and
the principal. The first loan for $600,000 accrues interest at 12% per annum and is payable
every 6 months. The loan is to be repaid by 31 December 2017.
The second Auro loan for $750,000 was drawn down on 30 May 2016 and is repayable by 31
August 2016. The loan accrues interest at 12% per annum and is payable every 6 months.
As a result of the sale of the Company’s interest in the Nicolsons Gold Project which settled on
14 July 2016 the Company elected to repay the Auro loans on 26 July 2016. On that basis the
loans and accrued interest have been shown as current.
15. DEFERRED REVENUE
Note
Current
Deferred revenue (i)
Transfer to discontinued operations
Non-Current
Deferred revenue (i)
Transfer to discontinued operations
2016
$
1,490,079
(1,490,079)
-
439,210
(439,210)
-
2015
$
567,642
-
567,642
1,732,358
-
1,732,358
(i)
During the previous financial 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.
As the CBA loan is directly linked to the Nicolsons Gold mine the deferred revenue liability is
now shown as a liability directly associated with discontinued operations.
65
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
16. ISSUED CAPITAL
(a) Share capital
Ordinary Shares
Opening balance
Movement during the year
Less share issue costs
Closing balance
2016
No
2015
No
2016
$
2015
$
174,043,034 128,567,761 14,490,189
157,500
-
179,293,034 174,043,034 14,647,689
45,475,273
-
5,250,000
-
13,849,255
682,130
(41,196)
14,490,189
$
13,849,255
(4,545)
(23,500)
(13,151)
482,129
200,000
14,490,189
105,000
30,000
22,500
14,647,689
(a) Movement of ordinary share capital
Date
Details
February
End of 2014 financial year
Share Issue Cost
1 July 2014
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
6 May 2016
19 May 2016
30 June 2016
30 June 2016 End of 2016 financial year
Exercise of options
Exercise of options
Exercise of options
Number
128,567,761
Issue Price
($)
32,141,940
13,333,333
174,043,034
3,500,000
1,000,000
750,000
179,293,034
0.015
0.015
0.03
0.03
0.03
(b) Movement in options on issue
Beginning of the financial year
Options issued
Options exercised during the financial year
Expired during the financial year (Note 20)
End of financial year
(c) Capital risk management
2015
No
2015
No
5,250,000
-
(5,250,000)
-
-
175,000
5,250,000
-
(175,000)
5,250,000
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.
66
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
17. RESERVES
Equity settled transaction
Available-for-sale-reserve
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
2016
$
47,808
-
47,808
2015
$
47,808
(371,248)
(323,440)
47,808
-
-
47,808
2,450
45,358
-
47,808
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
-
-
(371,248)
(371,248)
This reserve records the movements in the fair value of available-for-sale investments.
18. ACCUMULATED LOSSES
Balance at the beginning of the year
Net (loss) for the year
Loss from discontinued operations
Balance at the end of the year
19. EARNINGS/(LOSS) PER SHARE
The loss and weighted average number of ordinary shares used
in the calculation of loss per share are as follows:
Loss from continuing operations
Basic (loss) per share (cents per share)
Loss
Basic (loss) per share (cents per share)
2016
$
(12,037,129)
(1,042,338)
-
(13,192,606)
2015
$
(11,400,922)
(636,207)
-
(12,037,129)
2016
2015
(1,042,338)
(0.60)
(1,155,477)
(0.66)
(636,207)
(0.45)
(636,207)
(0.45)
Weighted average number of ordinary shares
174,699,883
142,957,534
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.
67
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
20. DIVIDENDS
No dividends were paid during the financial year. No recommendation for payment of dividends has
been made.
21. REMUNERATION OF AUDITOR
2016
$
2015
$
49,559
49,559
29,108
29,108
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 Company 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 and Frank Sibbel.
(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 2016.
(c) Transactions with related parties
The following transactions occurred with related parties:
During the 2015 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.
In the current year $61,874 has been charged to Bulletin for these services (2015: $78,741). At 30 June
2016 there was an outstanding balance of $44,336 (2015: $12,482) owing to Matsa.
Compensation of Key Management Personnel
Short-term employment benefits
Post-employment benefits
Termination benefits
Share-based payment
2016
$
2015
$
513,572
10,954
-
-
524,526
219,828
3,411
-
41,040
264,279
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.
68
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
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
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:
69
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
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
2016 is non-interest bearing 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
2016 and 30 June 2015 the Group’s exposure to interest rate risk is not deemed material.
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
2016
$
2015
$
2016
$
2015
$
2016
$
2015
$
2016
$
2015
$
Cash
equivalents
and
Trade
receivables
and
cash
other
493,667
857,951
-
763,874
Total
Assets
Financial
493,667
1,621,825
-
-
-
-
-
-
-
-
-
-
493,667
857,951
46,778
-
810,652
46,778
493,667
1,668,603
The weighted average interest rate received on cash and cash equivalents by the Group was 1.25%
(2015: 2.10%).
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
(c) Foreign currency risk
2016
$
493,667
504,275
2015
$
857,951
763,874
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.
70
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(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 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.
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, during 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 2016
Financial Assets
Cash and
equivalents
Trade and other
receivables
Other financial
assets
Financial Liabilities
Trade and other
payables
Finance lease
liabilities
Unsecured loan
Secured loan
Carrying
amount
Contractual
cash flows
6 mths or
less
6-12 mths
1-2 years 2-5 years
493,667
493,667
493,667
-
-
-
-
493,667
-
493,667
-
493,667
776,311
776,311
776,311
-
1,386,365
-
2,162,676
-
-
1,386,365 1,386,365
-
2,162,676 2,162,676
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
71
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
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
Equity Price Risk
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
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
6
30 June 2016
$
30 June 2015
$
-
883,924
The Group’s equity investments are listed on the Australian Securities Exchange. A 10% increase in
stock prices at 30 June 2016 would have increased equity by $nil (2015: $88,392), 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.
72
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
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
There are no further contingent assets or liabilities as at 30 June 2016 and no changes in the interval
between 30 June 2016 and the date of this report.
27. EVENTS SUBSEQUENT TO REPORTING DATE
On 7 July 2016 the Group held a shareholders meeting whereby shareholders approved of the disposal
of the Group’s interest in the Nicolsons Gold Project and a proposed in-specie distribution of Pantoro
shares to Bulletin shareholders.
On 14 July 2016 the Group announced that it had settled the sale of its interest in the Nicolsons Gold
Project to Pantoro and in return had received 130 million Pantoro fully paid ordinary shares. Bulletin
sold 15 million Pantoro shares on the same date for $2.175M in proceeds. In addition the Group
assigned its CBA secured gold prepayment and hedge facility to Pantoro resulting in it no longer having
any secured debt.
On 25 July 2016 the Group confirmed that it had completed the in-specie distribution of Pantoro shares
on the basis of one Pantoro share for every two Bulletin shares held. This resulted in approximately
89.6 million Pantoro shares being distributed to Bulletin shareholders.
On 26 July 2016 the Group repaid its unsecured loan facilities with Auro Pty Ltd via a cash payment of
$1.27 million and the transfer of 1 million Pantoro shares. The Group is now debt free.
73
BULLETIN RESOURCES LIMITED
DIRECTORS DECLARATION
FOR THE YEAR ENDED 30 JUNE 2016
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
1. The financial statements and notes, as set out on pages 38 to 73 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 2016 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 2016
74
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
statement of financial position as at 30 June 2016, the statement of profit or loss and other
comprehensive income, statement of changes in equity and 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.
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 company’s financial position as at 30 June 2016 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.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 17 to 23 of the directors’ report for the
year ended 30 June 2016. 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 2016
complies with section 300A of the Corporations Act 2001.
BDO Audit (WA) Pty Ltd
Neil Smith
Director
Perth, 30 September 2016
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 NEIL SMITH TO THE DIRECTORS OF BULLETIN RESOURCES
LIMITED
As lead auditor of Bulletin Resources Limited for the year ended 30 June 2016, 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.
Neil Smith
Director
BDO Audit (WA) Pty Ltd
Perth, 30 September 2016
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 2016
The following additional information is required by the Australian Securities Exchange. The information
is current as at 22nd September 2016.
(a) Distribution schedule and number of holders of equity securities
Stock Exchange Listing – Listing has been granted for 179,293,074 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
7
33
209
154
416
There were 70 shareholders holding less than a marketable parcel at 22nd September 2016.
(b) 20 Largest holders of quoted equity securities as at 22nd September 2016
The names of the twenty largest holders of fully paid ordinary shares (ASX code: BNR) are:
Rank Name
Matsa Resources Limited
Shares
% of Total
Shares
48,000,000
26.77
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Mr Robert Paul Martin & Mrs Susan Pamela Martin