BULLETIN RESOURCES LIMITED
A.C.N. 144 590 858
ANNUAL REPORT
for the year ended 30 June 2017
BULLETIN RESOURCES LIMITED
CORPORATE INFORMATION
FOR THE YEAR ENDED 30 JUNE 2017
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
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 2017
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
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BULLETIN RESOURCES LIMITED
CHAIRMAN’S LETTER
FOR THE YEAR ENDED 30 JUNE 2017
Dear Shareholder,
Earlier in the 2016 year we commenced with much negotiating and wheeling and dealing with our then
partners in the Nicolsons gold mine. We did gain approval by shareholders of our well negotiated deal
and progressed to settlement of the transaction to dispose of Bulletin’s 20% interest in the Nicolsons
Gold Project to Pantoro Limited. Bulletin as promised made what I believe an impressive in-specie
distribution on 25 July 2016.
This resulted in Bulletin shareholders receiving an approximate $13 million dividend in Pantoro shares
(as well as retaining their existing holding in Bulletin). All shareholders benefited from an effective 8
cents per share dividend which was a most pleasing result, especially since our share price prior to the
announcement being as low as 5 cents per share. Furthermore, the subsequent sale of the Pantoro
shares which our company retained post disposal, has resulted in gross proceeds to Bulletin of $7.27M
from the sale. Coupled with the gold loan facility being taken over as part of the transaction, the
transaction realised $22.7M for the benefit of shareholders, again I note the market value of the
Company was significantly less than that at the time.
This achievement was a result which the entire board work particular hard at, but remained absolutely
delighted in producing the benefit to shareholders and proud that we as a team accomplished it.
The next task on hand is now finding a new project for the Company with a number of opportunities
being reviewed, but at this stage it has not yet culminated in a new project. With a strong cash position,
it is your Board’s intention to repeat the process of rewarding shareholders by the identification of a new
valuable project. Due diligence continues 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.
In July 2017, Bulletin acquired Gekogold Pty Ltd and in doing so obtained the right to a royalty over the
Gekogold project. There is an expectation that the Gekogold project will go into production within the
near term, and, should that occur, it will provide a substantial revenue stream to the Company. There
are further particulars about this project which is intriguing to the board, which are being investigated.
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, also Mr Mark Csar who is always
helpful and remains dedicated to the company’s geological requirements for many years now.
Importantly, I would also like to thank you, our shareholders of the Company for your continued support
and patience whilst we work and hope to deliver further shareholder wealth in the future.
Yours Sincerely
Paul Poli
Non-Executive Chairman
26 September 2017
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BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2017
REVIEW OF OPERATIONS
SALE OF INTEREST IN NICOLSONS GOLD PROJECT
In the previous financial year (2 May 2016) the Company announced that it had entered into an
agreement with its joint venture partner, Pantoro Limited (PNR; Pantoro) to dispose of its 20% interest
in the Nicolsons Gold Project with effect from 1 May 2016.
The consideration for the sale of Bulletin’s 20% interest in Nicolsons was:
1.
2.
3.
PNR issued Bulletin 130 million fully paid ordinary PNR shares;
Halls Creek Mining Pty Ltd (HCM), the Operator, assumed 100% of BNR obligations under its
gold loan finance facility with the CBA such that Bulletin has no further obligations to the CBA
subsequent to settlement.
HCM to assume 50% of the responsibility of the gold hedge facility provided by CBA prior to
settlement.
In addition, and as part of the agreement, the Company elected to make, after settlement, an in-specie
distribution of one PNR share for every two Bulletin shares held at the time of the in-specie distribution.
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. Settlement of the sale of the
Company’s 20% interest in the Nicolsons gold project occurred on 14 July 2016 with the Company
receiving 130M Pantoro shares.
As a result of the disposal of its interest the Company no longer has an interest in any mineral reserves
or resources and will not be reporting a reserve or resource ore statement this financial year.
ACQUISITION OF GEKOGOLD PTY LTD
In July 2017 the Company advised that it had acquired Gekogold Pty Ltd (“Geko”), which currently is
recorded at the Department of Mines and Petroleum as the registered owner of the Geko gold project
located 25 km’s WNW of Coolgardie.
Bulletin has acquired all of the issued capital of Geko. Geko is a party to a Tenements Acquisition
Agreement with Golden Eagle Mining Limited (“GEM”), an unlisted company, dated 19th December
2014, whereby GEM is acquiring the project under certain conditions from Geko in return for a royalty.
The Tenement Acquisition Agreement for the Geko gold project by GEM provides for:
1. A 10% net smelter royalty (NSR) on the first 25,000 ounces produced from the Geko gold
project to Geko; and
2. A 4% NSR on all gold produced after the first 25,000 ounces produced from the Geko gold
project to Geko.
The consideration by Bulletin for the acquisition of Geko from the shareholders of Geko is as follows:
1. An initial payment of $250,000 on execution of the agreement being a prepaid component of
the capped royalty (paid);
2. Payment of a 3.33% NSR on gold produced from the Geko gold project capped at $3.5 million;
3. A payment of $750,000 being a further prepaid component of the capped royalty conditional on
Bulletin becoming the 100% beneficial owner of the project.
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BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2017
Geko Gold Project
The Geko gold project is in the shire of Coolgardie, Western Australia (Figure 1), approximately 25
kilometres west north-west of the township of Coolgardie, or about 15 kilometres north of the
Bullabulling Gold Mine. It is situated within the Bullabulling Station pastoral lease, in the Jaurdi Land
Division of the Coolgardie Mineral Field. It consists of two tenements being M15/621 and L15/229.
Limited due diligence conducted by Bulletin indicates that should the Geko gold project be put into
production it would generate significant income for the Company. However, it should be noted that any
mining studies conducted and resource statements prepared have been prepared by GEM for the
benefit of GEM and Bulletin has not conducted its own studies into the feasibility of the project.
Bulletin continues to review a number of opportunities that may be of value to shareholders.
Figure 1: Location of the Geko Gold Project
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BULLETIN RESOURCES LIMITED
OPERATIONS REVIEW
FOR THE YEAR ENDED 30 JUNE 2017
CORPORATE
On 25 July 2016 the Company conducted the in-specie distribution to its shareholders by distributing 1
Pantoro share for every 2 Bulletin shares held at the Record Date. This resulted in the Company
distributing approximately $13.5M worth of equity back to its shareholders while retaining approximately
40M Pantoro shares in its own right.
During the financial year Bulletin disposed of all of its interest in Pantoro received as a result of the sale
of the Company’s 20% interest in the Nicolsons Gold Project. The sale has resulted in gross proceeds
to Bulletin of $7.27M from the sale of the Pantoro shares it held post disposal, and the distribution to
Bulletin shareholders of 89.6M of Pantoro shares (July 2016) worth approximately $13.5M at that time.
Coupled with the gold loan facility being taken over as part of the transaction has realised $22.7M for
the benefit of shareholders.
Bulletin has reviewed a number of opportunities in the resources sector and will continue to do so until
identifying an appropriate opportunity that it believes is in its and shareholders best interests. It is the
Company’s stated intention to identify an opportunity that, in time, will allow it to again reward
shareholders. Until the Company acquires a new project it is expected that overheads will be relatively
low.
A review conducted of the 2012 and 2013 Research & Development (R&D) tax returns lodged by
previous management determined there were omissions in those returns that resulted in the Company
receiving a lower R&D refund for those years than they were entitled to from the Australian Taxation
Office (ATO). As a result Bulletin lodged amended returns which resulted in the ATO refunding a total
of $784,918, before costs, to the Company.
Bulletin has used some of its cash to take a small investment position in two ASX listed mineral
exploration companies.
6
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2017
Your Directors present their report on the entity Bulletin Resources Limited (“Bulletin” or the “Company”)
for the year ended 30 June 2017.
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
Bachelor of Commerce 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
4,000,000 unlisted options exercisable at 3.3 cents each expiring 30 November 2019
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 also served as a director of the following listed companies:
Auris Minerals Limited
Interest in shares and options of the Company:
39,784,133 ordinary shares
4,000,000 unlisted options exercisable at 3.3 cents each expiring 30 November 2019
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:
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BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2017
Matsa Resources Limited
Interest in shares and options of the Company:
2,250,000 ordinary shares
4,000,000 unlisted options exercisable at 3.3 cents each expiring 30 November 2019
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).
8
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2017
PRINCIPAL ACTIVITIES
Bulletin Resources Limited is a minerals exploration company based in Perth, Western Australia.
During the year the principal activities of the Company was the review of explorations projects identified
with a view to the Company obtaining a new project(s).
On 14 July 2016 the Company finalised the sale of its 20% interest in the Nicolsons Gold Project
resulting in the disposal of the Company’s then major activity.
FINANCIAL RESULTS AND FINANCIAL POSITION
The Company’s net profit for the year after income tax is $16,084,357 (2016: Loss of $1,155,477).
The Company’s net profit for the year includes the following items:
• Gain on disposal of joint venture interest before tax in Nicolsons Gold Project of $17,783,444
(2016:Nil)
• Research and development grant refunds of $784,918 (2016:Nil)
• Revenue from gold sales of $959 (2016: Nil)
• Total corporate and administrative expenses of $453,111 (2016: $304,855) and director
fees/employee benefits expense of $243,616 (2016: $524,525) were incurred for the year.
• Share based payments expense of $220,673 (2016: $Nil)
Review of Financial Condition
As at 30 June 2017 the Company had net assets of $4,261,959 (2016: $1,502,891).
The Company raised $Nil (2016: $157,500) before costs from the issue of shares during the financial
year.
Cash reserves at 30 June 2017 were $5,350,840 compared to $493,667 in the previous financial year.
DIVIDENDS
On 25 July 2016 the Company conducted an in-specie distribution of $13,446,985 to its shareholders
by distributing 1 Pantoro share for every 2 Bulletin shares held at the Record Date.
No other 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 Company had no employees, other than its three directors and one part time employee as at 30
June 2017 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 Company
that occurred during the year under review that has not already been disclosed in this report or in the
financial statements.
9
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2017
EVENTS SUBSEQUENT TO THE REPORTING DATE
On 26 July 2017 the Company announced it had acquired Gekogold Pty Ltd (“Geko”), the registered
owner of the Geko gold project located 25 km’s WNW of Coolgardie.
Bulletin acquired all of the issued capital of Geko. Geko is a party to a Tenements Acquisition
Agreement with Golden Eagle Mining Limited (“GEM”), an unlisted company, dated 19th December
2014, whereby GEM is acquiring the project under certain conditions from Geko in return for a royalty.
The Tenement Acquisition Agreement for the Geko gold project by GEM provides for:
1. A 10% net smelter royalty (NSR) on the first 25,000 ounces produced from the Geko gold
project to Geko; and
2. A 4% NSR on all gold produced after the first 25,000 ounces produced from the Geko gold
project to Geko.
The consideration by Bulletin for the acquisition of Geko from the shareholders of Geko is as follows:
1. An initial payment of $250,000 on execution of the agreement being a prepaid component of
the capped royalty (paid);
2. Payment of a 3.33% NSR on gold produced from the Geko gold project capped at $3.5 million;
3. A payment of $750,000 being a further prepaid component of the capped royalty conditional on
Bulletin becoming the 100% beneficial owner of the project.
A further $125,000 was paid on 17 August 2017 as a further prepayment of the capped royalty.
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 Company, the results
of those operations, or the state of affairs of the Company in future financial years.
FUTURE DEVELOPMENTS
Other than as described above there are no further likely developments.
ENVIRONMENTAL REGULATIONS AND PERFORMANCE
The Company’s exploration activities are subject to various environmental laws and regulations under
Australian Legislation. The Company 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 Company for the current, nor subsequent, financial year.
The directors will reassess this position as and when the need arises.
10
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2017
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
4
4
4
4
4
4
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:
Number of Ordinary
Shares
Number of Options
Paul Poli
Frank Sibbel
Robert Martin
3,000,000
2,250,000
39,784,133
4,000,000
4,000,000
4,000,000
Options granted to directors and officers of the Company
During the financial year, the Company granted 15,000,000 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 15,500,000 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.
There were no options exercised during the financial year.
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BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2017
REMUNERATION REPORT (Audited)
Principles of Compensation
This remuneration report for the year ended 30 June 2017 outlines the remuneration arrangements of
the Company 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 Company, directly or indirectly, including any director (whether
executive or otherwise) of the Company, and includes the four executives in the Company receiving the
highest remuneration.
For the purposes of this remuneration report, the term ‘executive’ includes the Executive Directors, and
Executives of the Company.
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
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.
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BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2017
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 Company.
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 2016 Financial Year AGM
The 2016 financial year remuneration report received positive shareholder support at the 2016 annual
general meeting with a vote of 100% 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.
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BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2017
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 Chairman received a base fee of $48,000 per annum effective from 1 October 2016 (previously
$36,000). The non-executive directors received a base fee of $36,000 per annum during the financial
year for being a director of the Company.
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 were no STI payments. An STI payment of $75,000 was paid in July 2016 to each
of the directors in relation to the sale of the Company’s 20% interest in the Nicolsons Gold Project. This
STI payment was accrued in the 2016 financial year.
The remuneration report for the Non-Executive Directors for the year ending 30 June 2017 and 30 June
2016 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 2017 and 30 June 2016 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 2017 and 30 June
2016 is detailed in this report.
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BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2017
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 Company 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 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 Company. During the year a discretionary STI cash bonus of
$75,000 was awarded in respect of the 2016 financial year and no STI cash bonus was paid in respect
of the 2017 financial year. No discretionary STI cash bonuses 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 Company’s
performance.
The level of LTI granted is, in turn, dependent on the Company’s recent share price performance, the
seniority of the Executive and the responsibilities the Executive assumes in the Company.
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 Company does have a policy to prohibit executives or directors from entering into arrangements to
protect the value of unvested LTI awards.
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 Company as measured by share price.
As at 30 June
Closing share price
Net comprehensive
income/(loss) per year ended
2017
0.031
2016
$0.071
2015
$0.02
2014
$0.014
2013
$0.017
15,985,377
(784,229)
(1,007,455)
926,802
(3,831,844)
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BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2017
C. REMUNERATION OF DIRECTORS AND KEY MANAGEMENT PERSONNEL - 2017
Details of the nature and amount of the remuneration of the Directors and Key Management Personnel are as follows:
2017
Non-executive Directors
P Poli
R Martin
F Sibbel
Other Key Management Personnel
A Chapman
Total Key Management Personnel
2016
Non-executive Directors
P Poli
R Martin
F Sibbel
Other Key Management Personnel
A Chapman
Total Key Management Personnel
Salary &
Fees
$
45,000
36,000
36,000
77,670
194,670
Salary &
Fees
$
36,000
36,000
36,000
52,337
160,337
Short Term
Post Employment Benefits
Share Based
Payments
Termination
Consulting
Cash Bonus
Superannuation
Retirement
Options
$
$
$
$
$
$
Total
$
-
-
-
-
-
36,815
8,235
17,600
-
62,650
-
-
-
-
-
-
-
-
7,379
7,379
-
-
-
-
-
56,948
56,948
56,948
138,763
101,183
110,548
42,711
213,555
127,760
478,254
Performance
Related
%
41.04
56.28
51.51
33.43
Short Term
Post Employment Benefits
Share Based
Payments
Termination
Consulting
Cash Bonus
Superannuation
Retirement
Options
$
$
$
$
$
$
-
-
-
-
-
38,842
9,000
20,900
75,000
75,000
75,000
-
-
-
-
68,742
68,493
293,493
10,954
10,954
-
-
-
-
-
Total
$
149,842
120,000
131,900
Performance
Related
%
50.05
62.50
56.86
131,784
533,526
56.91
-
-
-
-
-
-
16
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2017
D. KEY TERMS OF SERVICE AGREEMENTS
Non-executive directors
Each of the non-executive directors has an agreement with the Company which dictates the level of
remuneration they receive as a non-executive director. The non-executive Chairman is paid $48,000
per annum and the other 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 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.
E. OTHER INFORMATION
Compensation Options Granted and Vested during the year
The table below sets out the options granted to Directors and Executives. There were 15,000,000
options issued during the year to Key Management Personnel. There were no options that were granted
in previous years that vested during the year. The options were issued free of charge and entitle the
holder to subscribe for one fully paid ordinary share in the Company. Due to the nature of the Company’s
activities it does not believe it is appropriate to set vesting conditions at this time.
2017
Vested
Granted
Grant
Date
Value per
Option at
Grant
Date
Value
of
Options
at Grant
Date
Exercise
Price
Date
Vested
Expiry
Date
No.
No.
Cents
$
Cents
4,000,000 4,000,000
P Poli
4,000,000 4,000,000
F Sibbel
R Martin
4,000,000 4,000,000
A Chapman 3,000,000 3,000,000
24.11.16
24.11.16
24.11.16
24.11.16
1.42
1.42
1.42
1.42
56,948
56,948
56,948
42,711
3.3
3.3
3.3
3.3
24.11.16
24.11.16
24.11.16
24.11.16
30.11.19
30.11.19
30.11.19
30.11.19
For details on the valuation of the options, including models and assumptions used, please refer to Note
15.
There were no alterations to the terms and conditions of options granted as remuneration since their
grant date.
The maximum value of the award is equal to the number of options granted multiplied by the fair value
at the grant date. The minimum value of the award in the event of forfeiture is zero.
There were no shares issued on exercise of compensation options during the year.
17
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2017
Shareholdings of Key Management Personnel
Year Ended 30 June 2017
Paul Poli
Robert Martin
Frank Sibbel
Andrew Chapman
TOTAL
Balance
1 July 2016
3,000,000
39,784,133
2,250,000
516,666
45,550,799
Granted
as
Remuneration
-
-
-
-
-
Options
Exercised
Other
Changes
-
-
-
-
-
Balance
30 June 2017
3,000,000
39,784,133
2,250,000
516,666
45,550,799
-
-
-
-
-
Option Holdings of Key Management Personnel
Year Ended 30 June 2017
Balance 1
July 2016
Paul Poli
Robert Martin
Frank Sibbel
Andrew Chapman
TOTAL
-
-
-
-
-
as
Granted
Remuneration
4,000,000
4,000,000
4,000,000
3,000,000
15,000,000
Options
Exercised
-
-
-
-
-
Net Change
Other
Balance 30
June 2017
Vested and
Exercisable
-
4,000,000
4,000,000
-
4,000,000
-
3,000,000
-
- 15,000,000 15,000,000
4,000,000
4,000,000
4,000,000
3,000,000
Other transactions and balances with Key Management Personnel
The Company has a services agreement with Matsa Resources Limited whereby Matsa provides
accounting and administrative services to the Company on a monthly arms-length basis and on
commercial terms. Messrs Poli, Sibbel and Chapman are directors of Matsa.
In the current period $78,114 has been charged to Bulletin for these services (2016: $61,874). At 30
June 2017 there was an outstanding balance of $9,338 (2016: $44,336) owing to Matsa.
There have been no loans made to Key Management Personnel during the 2017 reporting period (2016:
nil).
End of Audited Remuneration Report
18
BULLETIN RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2017
INDEMNIFICATION
During the year $6,044 (2016: $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 2018.
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 66.
Signed in accordance with a resolution of the Directors dated this 26th day of September 2017.
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 (2016: Nil).
Signed in accordance with a resolution of the directors.
Mr. Paul Poli
Chairman
26 September 2017
19
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
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 2017, 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)
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
20
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
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:
2(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
21
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
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
22
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
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
4(a), 4(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:
2(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
23
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
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.
24
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
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.
25
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
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;
26
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
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
27
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
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.
28
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
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:
29
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
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.
30
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
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.
31
BULLETIN RESOURCES LIMITED
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
6.
ETHICAL AND RESPONSIBLE DECISION MAKING (continued)
6(c) Policy concerning diversity (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.
32
BULLETIN RESOURCES LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2017
Notes
2017
$
2016
$
Continuing Operations
Revenue
Interest received
Other Income
Research and development grant refund
Other expenses
Depreciation
Professional fees
Directors fees
Exploration cost written off
Administration expenses
Employee benefit expense
Finance costs
Loss on sale of investments
Loss on sale of plant and equipment
Share based payments expense
Expenses from operations
Loss from operations before income tax expense
Income tax expense
Loss from continuing operations
Profit/(loss) from discontinued operations
Profit/(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
Other comprehensive profit for the year
Total comprehensive profit/(loss)
the year
attributable to members of Bulletin Resources
Limited
for
Profit/(loss) per share for the year from continuing
operations attributable
the members of Bulletin
Resources Limited:
Basic loss per share (cents)
Diluted loss per share (cents)
to
Profit/(loss) per share for the year attributable to the
members of Bulletin Resources Limited:
Basic profit/(loss) per share (cents)
Diluted profit/(loss) per share (cents)
7
6
13
13
959
29,979
142,205
784,918
-
11,739
-
-
-
(154,755)
(152,060)
-
(355,040)
(91,556)
(37,716)
(83,228)
-
(220,673)
(1,095,028)
(9,700)
(93,113)
(392,742)
(15,701)
(211,742)
(131,785)
(126,236)
(71,013)
(2,045)
-
(1,054,077)
(136,967)
-
(136,967)
(1,042,338)
-
(1,042,338)
16,221,324
(113,139)
16,084,357
(1,155,477)
(98,980)
298,937
-
(98,980)
72,311
371,248
15,985,377
(784,229)
(0.08)
(0.08)
(0.60)
(0.60)
8.97
8.97
(0.66)
(0.66)
The above statement of profit or loss and other comprehensive income should be read in conjunction
with the accompanying notes.
33
BULLETIN RESOURCES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
CURRENT ASSETS
Cash and cash equivalents
Other receivables
Available-for-sale financial assets
Assets classified as held for sale
TOTAL CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Borrowings
Liabilities directly associated with assets
classified as held for sale
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Notes
2017
$
2016
$
4
5
6
8
10
9
6
11
12
5,350,840
267,598
280,620
5,899,058
-
5,899,058
493,667
-
-
493,667
5,820,600
6,314,267
5,899,058
6,314,267
74,982
1,562,120
-
1,637,102
-
1,637,102
1,637,102
4,261,956
1,200,704
169,501
2,891,751
4,261,956
776,311
-
1,386,365
2,162,676
2,648,700
4,811,376
4,811,376
1,502,891
14,647,689
47,808
(13,192,606)
1,502,891
The above statement of financial position should be read in conjunction with the accompanying notes.
34
BULLETIN RESOURCES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2017
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 for the year
Total
income/(loss) for the year
comprehensive
Transactions with owners in
their capacity as owners:
-
-
(1,155,477)
(1,155,477)
Issue of shares
157,500
-
-
-
-
Balance at 30 June 2016
14,647,689
(13,192,606)
47,808
371,248
(784,229)
371,248
(784,229)
-
-
157,500
1,502,891
Profit for the year
Total
income/(loss) for the year
comprehensive
Transactions with owners in
their capacity as owners:
-
-
16,084,357
-
(98,980) 15,985,377
16,084,357
-
(98,980) 15,985,377
In-specie distribution
(13,446,985)
Share based payments
-
-
-
-
220,673
- (13,446,985)
-
220,673
Balance at 30 June 2017
1,200,704
2,891,751
268,481
(98,980)
4,261,956
The above statement of changes in equity should be read in conjunction with the accompanying notes.
35
BULLETIN RESOURCES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest received
Interest paid
Other income
Net cash (outflows)/inflows in operating activities (Note 3)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for joint venture hedge commitments
Proceeds from sale of available-for-sale-investments
Proceeds on sale of plant and equipment
Payments for available-for-sale-investments
Prepayment of royalty
Cash retained on disposal of joint venture interest
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
Proceeds from loan monies
Repayment of borrowings
Net cash (outflows)/inflows by financing activities
2017
$
2016
$
959
(1,454,640)
12,381
(53,487)
787,192
(707,595)
3,348,529
(3,061,176)
11,739
(89,871)
-
209,221
(209,000)
7,119,687
-
(379,601)
(250,000)
504,275
-
-
-
6,785,361
-
1,184,858
20,000
-
-
(1,439,177)
(47,848)
(1,798,838)
(2,081,005)
-
-
(1,220,593)
(1,220,593)
157,500
1,350,000
-
1,507,500
INCREASE/(DECREASE)
NET
EQUIVALENTS
Net Increase in cash equivalent held
IN CASH AND CASH
4,857,173
(364,284)
Cash and cash equivalents at the beginning of the financial year
493,667
857,951
Cash and cash equivalents at the end of the financial year
5,350,840
493,667
The above statement of cash flows should be read in conjunction with the accompanying notes.
36
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The financial report of Bulletin Resources Limited for the year ended 30 June 2017 were authorised for
issue in accordance with a resolution of the Board of Directors on 25 September 2017.
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 Company 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 Company 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 2016. The adoption of these new and revised
Standards and Interpretations did not have any effect on the financial position or performance of the
Company.
New and amended standards and interpretations issued but not yet effective
A number of new standards, amendments to standards and interpretations are effective for annual
periods beginning after 1 July 2017 and have not been applied in preparing these financial statements.
Those which may be relevant to the Company are set out below. The Company does not plan to adopt
these standards early.
AASB 9 Financial Instruments
ASB 9, published in July 2014, replaces the existing guidance in AASB 39 Financial Instruments:
Recognition and Measurement. AASB 9 includes revised guidance on the classification and
measurement of financial instruments, a new expected credit loss model for calculating impairment on
financial assets, and the new general hedge accounting requirements. It also carries forward the
guidance on recognition and de-recognition of financial instruments from AASB 39.
AASB 9 is effective for annual reporting periods beginning on or after 1 January 2018, with early
adoption permitted.
37
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
The Company is assessing the potential impact on its financial statements resulting from the application
of AASB 9. The revisions to the classification and measurement requirements and hedging changes
are not currently expected to have a significant impact to the Company. Changes in relation to the
expected credit loss model for calculating impairment on financial assets are not expected to have a
material impact based on the short-term nature of the Company’s assets.
AASB 15 Revenue from Contracts with Customers
AASB 15 establishes a comprehensive framework for determining whether, how much and when
revenue is recognised. It replaces existing revenue recognition guidance, including AASB 18 Revenue,
AASB 11 Construction Contracts and IFRIC 13 Customer Loyalty Programmes.
AASB 15 is effective for annual reporting periods beginning on or after 1 January 2018, with early
adoption permitted.
The Company is assessing the potential impact on of this standard on its financial statements resulting
from the application of AASB 15. The Company does not currently have any material revenue so there
will not be a material impact.
AASB 16 Leases
The key feature of AASB 16 for (lease accounting) are as follows:
•
•
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 asset similarly to other non-financial assets and lease liabilities
similar 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-lined 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 and is effective for annual reporting periods
beginning on 1 January 2019, with early adoption permitted. The Company is assessing the potential
impact on of this standard on its financial statements resulting from the application of AASB 16, which
has not yet been finalised.
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:
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.
38
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(a) Revenue recognition (continued)
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.
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.
Financial liabilities
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less
principal payments and amortisation.
39
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(c) Financial Instruments (continued)
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 Company 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.
Receivables
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.
(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.
40
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(f) Earnings per Share (continued)
Divided by the weighted average number of ordinary shares and dilutive potential ordinary shares,
adjusted for any bonus element.
(g) Property, Plant and Equipment
Impairment
The carrying value of plant and equipment are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable.
For an asset that does not generate largely independent cash inflows, the recoverable amount is
determined for the cash-generating unit to which the asset belongs.
If any such indication exists and where the carrying values exceed the estimated recoverable
amount, the assets or cash-generating units are written down to their recoverable amount. The
recoverable amount of plant and equipment is the greater of fair value less costs to sell and value
in use. In assessing value in use, the estimated future cash flows are discounted to their present
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) 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.
41
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(h) Income Tax (continued)
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in
subsidiaries, branches, associates and joint ventures except where the 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.
(i) 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.
(j) 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.
(k) 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.
42
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(k) Provisions (continued)
Provision for Rehabilitation Costs
The Company 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.
(l) 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.
43
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(l) Share Based Payments (continued)
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if
the terms had not been modified. In addition, an expense is recognised for any modification that
increases the total fair value of the share-based payment arrangement, or is otherwise beneficial
to the employee, as measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation,
and any expense not yet recognised for the award is recognised immediately. However, if a new
award is substituted for the cancelled award and designated as a replacement award on the date
that it is granted, the cancelled and new award are treated as if they were a modification of the
original award, as described in the previous paragraph.
(m) 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.
(n) 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.
(o) Leases
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.
(p) 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.
44
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(q) Trade and other payables
Trade and other payables are carried at amortised cost. They represent liabilities for goods and
services provided to the Company prior to the end of the financial year that are unpaid and arise
when the Company becomes 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.
(r) Research and development incentive rebate
Any rebate received for eligible research and development (R&D) activities are offset against the
area where the costs were initially incurred. For R&D expenditure that has been capitalised, any
claim received will be offset against ‘deferred exploration and evaluation expenditure’ in the
statement of financial position. For R&D expenditure that has been expensed, any claim received
will be recognised in the statement of profit or loss and other comprehensive income.
Significant Accounting Estimates and Assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and
assumptions of future events. The key 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:
Taxation
In calculating the tax expense for the current year, the Company has assessed the ability to utilise
carried forward tax losses. The Company has obtained expert advice that the majority of these tax
losses can be utilised. However, the tax legislation in relation to the utilisation of these tax losses can
be complex and if the ruling should not be favourable, this would increase the Company’s tax payable
significantly.
45
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
2. REVENUE FROM CONTINUING OPERATIONS
Other income
2017
$
142,205
142,205
2016
$
-
-
Other income relates predominantly to a net gain on the early repayment of the hedge liability
($139,931) and a refund of previous expenses ($2,274).
3. CASH FLOW RECONCILIATION
Profit/(loss) after income tax
Exploration expenditure written off
Share based payments expense
Loss on sale of investments
Gain on sale of joint venture interest
Net gain on early repayment of hedge liability
Income tax expense
Loss on sale of fixed assets
Non-cash component of repayment of loans
Depreciation
Amortisation and depreciation of joint venture assets
Increase in trade and other receivables
(Decrease)/Increase in trade and other payables
Net cash (used in)/from operating activities
4. OTHER RECEIVABLES
Other receivables
Prepayment of gold royalty (i)
Cash held in joint venture (ii)
Trade and other receivables attributable to discontinued
operations
2017
$
16,084,357
-
220,673
83,228
(17,783,444)
(139,931)
1,562,120
-
20,594
-
-
(17,598)
(737,594)
(707,595)
2017
$
17,598
250,000
-
-
267,598
2016
$
(1,155,477)
15,701
-
71,014
-
2,045
-
9,700
692,720
-
573,518
209,221
2016
$
-
504,275
(504,275)
-
(i)
(ii)
The Company paid $250,000 as a prepaid royalty for the acquisition of Gekogold Pty Ltd
(refer Note 21).
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.
46
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
5. AVAILABLE-FOR-SALE FINANCIAL ASSETS
Listed equity securities – carried at fair value
2017
$
280,620
280,620
2016
$
-
-
(i) 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 was the Company’s joint venture partner in
the Nicolsons Gold Project. PNR is listed on the Australian Securities Exchange.
The Company incurred a loss of $83,228 on the sale of all of its Pantoro shares during the year.
(ii) The Company holds shares in Auris Minerals Limited (AUR), which is involved in exploration of
gold and base metals in Western Australia. AUR is listed on the Australian Securities Exchange.
At the end of the year the Company’s investment was $123,120 (30 June 2016: nil) which is based
on AUR’s quoted share price.
(iii) The Company holds shares in Kalamazoo Resources Limited (KZR), which is involved in
exploration of gold and base metals in Western Australia. KZR is listed on the Australian
Securities Exchange.
At the end of the year the Company’s investment was $157,500 (30 June 2016: nil) which is
based on KZR’s quoted share price.
6. SALE OF INTEREST IN JOINT VENTURE AND DISCONTINUED OPERATIONS
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.
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.
47
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
6. SALE OF INTEREST IN JOINT VENTURE AND DISCONTINUED OPERATIONS
(continued)
The gain on sale of the interest in the joint venture is calculated as follows:
Consideration
Cash
Shares in Pantoro Limited at market value at settlement date
Net assets of the interest in the joint venture
Cash retained relating to joint venture
Gold hedge liability
Gain on sale of joint venture interest
Income tax expense
2017
$
-
20,800,000
20,800,000
(3,171,900)
504,275
(348,931)
17,783,444
(1,562,120)
Gain on sale of joint venture interest after income tax
16,221,324
At 30 June 2016, the Company’s interest in the Nicolsons Gold Project was classified as discontinued
operations and the Company recognized a loss of $113,139. 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)
-
48
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
7.
INCOME TAX
(a) Numerical reconciliation of income tax expense
to prima facie tax payable
Loss from continuing operations before income tax expense
Profit
expense
from discontinuing operations before
income
tax
Prima facie tax expense/(benefit) on profit/(loss) from ordinary
activities at 30% (2016: 30%)
Tax effect of amounts which are not deductible
(taxable) in calculating taxable income
Share based payments
R&D refund
Available for sale asset
Movement in unrecognised temporary differences
Tax losses and temporary differences utilised previously not
recognised
Income Tax Expense is attributable to:
Loss from continuing operations
Profit from discontinuing operations
(b) Recognised temporary differences
Deferred Tax Assets (at 30%)
Accruals
Provisions
Capital raising costs
Deferred Tax Liabilities (at 30%)
Net Deferred Tax Assets (at 30%)
(c) Unrecognised temporary differences
Deferred Tax Assets (at 30%)
Capital raising costs
Borrowing costs
Provisions
Carry forward tax losses
Deferred Tax Liabilities (at 30%)
Mine property and development
Mineral exploration
Net Deferred Tax Assets (at 30%)
2017
$
2016
$
(136,967)
(1,155,476)
17,783,444
-
17,646,477
(1,155,476)
5,293,943
(346,643)
66,202
(235,475)
(29,694)
5,094,976
-
(3,532,856)
-
1,562,120
1,562,120
8,292
353
45,734
54,379
-
54,379
-
-
-
(346,643)
346,643
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25,894
27,523
110,815
3,835,863
4,000,095
77,891
75,993
153,884
3,846,211
49
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
7.
INCOME TAX (continued)
In the current year all carried forward tax losses were utilised against the profits made from the sale of the
company’s 20% Joint Venture interest. Going forward 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.
8. TRADE & OTHER PAYABLES
Trade payables (a)
Sundry creditors and accruals (b)
2017
$
74,982
-
74,982
2016
$
704,322
71,989
776,311
(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.
9. BORROWINGS
Current
Unsecured loan (i)
2017
$
2016
$
-
-
1,386,365
1,386,365
(i) As a result of the sale of the Company’s interest in the Nicolsons Gold Project which settled on 14
July 2016 the Company repaid its loans to Auro Pty Ltd on 26 July 2016.
10. PROVISIONS
Provision for income tax
2017
$
1,562,120
1,562,120
2016
$
-
-
This relates to the income tax payable on the current year’s profits. Refer to Note 7 for further detail.
50
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
11. ISSUED CAPITAL
(a) Share capital
Ordinary Shares
Opening balance
Movement during the year
Return of capital (i)
Closing balance
2017
No
2016
No
2017
$
2016
$
179,293,034
-
-
179,293,034
174,043,034
5,250,000
-
179,293,034
14,647,689
-
(13,446,985)
1,200,704
14,490,189
157,500
-
14,647,689
(i)
On 25 July 2016 an in-specie distribution of one Pantoro share for every two Bulletin shares
held at the time of the in-specie distribution was conducted resulting in a reduction of the
Company’s issued capital based on the market value of the shares at that date.
(a) Movement of ordinary share capital
Date
Details
End of 2015 financial year
Exercise of Options
Exercise of Options
Exercise of Options
1 July 2015
6 May 2016
19 May 2016
30 June 2016
30 June 2016 End of 2016 financial year
25 July 2016
30 June 2017 End of 2016 financial year
In-specie distribution
(b) Movement in options on issue
Beginning of the financial year
Options issued
Options exercised during the financial year
Expired during the financial year
End of financial year
(c) Capital risk management
Number
174,043,034
3,500,000
1,000,000
750,000
179,293,034
-
179,293,034
Issue Price
($)
0.03
0.03
0.03
-
-
-
$
14,490,189
105,000
30,000
22,500
14,647,689
(13,446,985)
1,200,704
2017
No
2016
No
-
15,500,000
-
-
15,500,000
5,250,000
-
(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.
51
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
12. RESERVES
Equity settled transaction
Available-for-sale-reserve
Movements in Reserves
Equity settled transaction reserve
Balance at beginning of financial year
Share based payment
Balance at end of financial year
2017
$
268,481
(98,980)
169,501
2016
$
47,808
-
(47,808)
47,808
220,673
268,481
47,808
-
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
2017
$
2016
$
-
(98,980)
(98,980)
(371,248)
371,248
-
This reserve records the movements in the fair value of available-for-sale investments.
13. EARNINGS/(LOSS) PER SHARE
The profit/(loss) and weighted average number of ordinary
shares used in the calculation of profit/(loss) per share are as
follows:
2017
$
2016
$
Loss from continuing operations
Basic and diluted loss per share (cents per share)
Profit/(loss) for the year
Basic and diluted profit/(loss) per share (cents per share)
Weighted average number of ordinary shares
(136,967)
(0.08)
(1,042,338)
(0.60)
16,084,357
8.97
(1,155,477)
(0.66)
179,293,034
174,699,883
15,500,000 (2016: Nil) options issued pursuant to offers made under disclosure documents and are
considered to be potential ordinary shares but have not been included in the calculation of earnings per
share as they are not dilutive.
14. DIVIDENDS
On 25 July 2016 the Company conducted an in-specie distribution to its shareholders of $13,446,985
by distributing 1 Pantoro share for every 2 Bulletin shares held at the Record Date.
Other than the above no other dividends were paid during the financial year. No recommendation for
payment of dividends has been made.
52
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
15. SHARE BASED PAYMENTS
Directors and Executives Options
The Company issues options to Directors and Executives from time to time. The terms and conditions
of those options vary between option holders. There were 15,000,000 (2016: nil) options issued to
Directors or Executives during the financial year.
Options issued to the Directors and Executives vest immediately.
Other relevant terms and conditions applicable to options granted as above include:
any Directors or Executives vested options that are unexercised by 30 November 2019 will expire
or, if they resigned, in accordance with their specific terms and conditions; and
upon exercise, these options will be settled in ordinary shares of Bulletin Resources Limited.
500,000 options were issued to consultants on the same terms and conditions as director options.
(a)
Summary of options issued
The following table illustrates the number (No.) and weighted average exercise prices (WAEP) of share
options issued.
Outstanding at 1 July
Granted during the year
Exercised during the year
Disposed of during the year
Expired during the year
Outstanding at 30 June
Exercisable at 30 June
2017
No.
-
15,500,000
-
-
-
15,500,000
15,500,000
2017
WAEP
$
-
0.033
-
-
-
0.033
0.033
2016
No.
5,250,000
-
(5,250,000)
-
-
-
-
2016
WAEP
$
0.03
-
0.03
-
-
-
-
The following options were issued during the year.
Directors
12,000,000 options over ordinary shares with an exercise price of $0.033 each, exercisable upon
meeting the relevant conditions and until 30 November 2019.
Executives
3,000,000 options over ordinary shares with an exercise price of $0.033 each exercisable upon
meeting the relevant conditions and until 30 November 2019 were issued to an executive.
Consultants
500,000 options over ordinary shares with an exercise price of $0.033 each exercisable upon
meeting the relevant conditions and until 30 November 2019 were issued to a consultant.
(b) Valuation models of options issued
The fair value of the options is estimated at the date of grant using a Black & Scholes model. The
following table gives the assumptions made in determining the fair value of the options granted in the
year.
53
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
15. SHARE BASED PAYMENTS (continued)
Dividend yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Expected life of options (years)
Option exercise price ($)
Share price at grant date ($)
Fair value at grant date (cents)
Nil
93.98
1.92
3.02
0.033
0.026
1.42
The expected life of the options is based on historical data and is not necessarily indicative of exercise
patterns that may occur.
The expected volatility reflects the assumption that the historical volatility is indicative of future trends,
which may also not necessarily be the actual outcome.
Weighted average remaining contractual life
The weighted average remaining contractual life for share options outstanding as at 30 June 2017 is
2.44 years (2016: Nil).
Weighted average fair value
The weighted average fair value of the options granted during the financial year was 1.42 cents each
(2016: Nil).
Employee Expenses
Share options granted:
- equity settled Key Management Personnel
- equity settled Other
Total expense recognised as employee costs
16. REMUNERATION OF AUDITOR
During the year, the following fees were received or due and
receivable by BDO for:
Audit and review of financial report
Other than their statutory audit duties, BDO Audit (WA) Pty Ltd
did not perform any other services for the Company during the
year.
2017
$
2016
$
213,555
7,118
220,673
-
-
-
2017
$
2016
$
34,717
34,717
49,559
49,559
54
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
17. 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 2017.
(c) Transactions with related parties
The following transactions occurred with related parties:
The Company has 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, Sibbel and Chapman are directors of Matsa.
In the current year $78,114 has been charged to Bulletin for these services (2016: $61,874). At 30 June
2017 there was an outstanding balance of $9,338 (2016: $44,336) owing to Matsa.
Compensation of Key Management Personnel
Short-term employment benefits
Post-employment benefits
Termination benefits
Share-based payment
2017
$
2016
$
257,320
7,379
-
213,555
478,254
522,572
10,954
-
-
533,526
The compensation disclosed above represents an allocation of the key management personnel’s
estimated compensation from the Company in relation to their services rendered to the Company.
18. SEGMENT REPORTING
The Company operates in the mineral exploration industry in Australia. For management purposes, the
Company is organised into one main operating segment which involves the exploration of minerals in
Australia. All of the Company’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 Company as one segment. The financial results
from this segment are equivalent to the financial statements of the Company as a whole.
55
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
19. INVESTMENT IN CONTROLLED ENTITIES
Entity
Principal
Activity
Class of
Shares
Country of
incorporation
Equity holding
2016
2017
%
%
Lamboo
Operations Pty Ltd
Inactive
Ordinary
Australia
100
100
20. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company’s principal financial instruments comprise receivables, payables, cash and short-term
deposits and available-for-sale investments.
Risk exposures and responses
The Company manages its exposure to key financial risks in accordance with the Company’s financial
risk management policy. The objective of the policy is to support the delivery of the Company’s financial
targets while protecting future financial security.
The main financial risks are interest rate risk, commodity risk, credit risk, equity price risk and liquidity
risk. The Company 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 and assessments of market
forecasts for interest rate 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.
Details of the significant accounting policies and methods adopted, including the criteria for recognition,
the basis of measurement and the basis on which income and expenses are recognised, in respect of
each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the
financial statements.
The accounting classification of each category of financial instruments as defined in note 1, and their
carrying amounts, are set out below:
a) Interest Rate Risk Exposures
The Company’s exposure to risks of changes in market interest rates relate primarily to the Company’s
cash balances. The Company 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 Company has performed a sensitivity analysis relating to its exposure to interest rate risk. At 30
June 2017 and 30 June 2016 the Company’s exposure to interest rate risk is not deemed material.
The Company's exposure to interest rate risk and the effective weighted average interest rate for
classes of financial assets are set out below:
56
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
20. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Financial
Assets
Floating Interest
Rate
Fixed Interest
Less than 1 year
Non-interest
Bearing
Total
2017
$
2016
$
2017
$
2016
$
2017
$
2016
$
2017
$
2016
$
Cash and cash
equivalents
Trade and other
receivables
Other
assets
financial
Total Financial
Assets
1,350,840
493,667
4,000,000
-
-
-
-
-
-
1,350,840
493,667
4,000,000
-
-
-
-
-
267,598
280,620
548,218
-
-
-
-
5,350,840
493,667
267,598
280,620
-
-
5,899,058
493,667
The weighted average interest rate received on cash and cash equivalents by the Company was 1.73%
(2016: 1.25%).
b) Credit risk
The Company 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 Company. 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) Commodity Price Risk
2017
$
5,350,840
-
2016
$
493,667
504,275
The Company’s revenues are exposed to commodity price fluctuations. The Company has no exposure
at the end of the financial year.
(d) Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash balances and access to equity
funding. The Company’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 Company 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 Company had sufficient cash reserves to meet its requirements. The
Company has no access to credit standby facilities.
The financial liabilities of the Company had at the reporting date were trade and other payables incurred
in the normal course of business as well.
57
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
20. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
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. Trade payables and other financial liabilities mainly originate from the financing of assets used
in ongoing operations. To monitor existing financial assets and liabilities as well as to enable effective
controlling of future risks, management monitors its Company’s expected settlement of financial assets
and liabilities on an ongoing basis.
30 June 2017
Financial Assets
Cash and
equivalents
Other receivables
Other financial
assets
Financial Liabilities
Trade and other
payables
30 June 2016
Financial Assets
Cash and
equivalents
Financial Liabilities
Trade and other
payables
Unsecured loan
Equity Price Risk
Carrying
amount
Contractual
cash flows
6 mths or
less
6-12 mths
1-2 years 2-5 years
5,350,840
267,598
5,350,840 5,350,840
17,598
17,598
280,620
5,899,058
280,620
280,620
5,649,058 5,649,058
-
250,000
-
250,000
74,982
74,982
74,982
74,982
74,982
74,982
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
1,386,365
2,162,676
776,311
776,311
1,386,365 1,386,365
2,162,676 2,162,676
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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 Company’s investment strategy is to maximise
investment returns.
The Company’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.
58
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
20. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
The following table details the breakdown of the investment assets and liabilities held by the
Company:
Listed equities (Level 1 fair value hierarchy)
Sensitivity analysis
Note
5
30 June 2017
$
280,620
30 June 2016
$
-
The Company’s equity investments are listed on the Australian Securities Exchange. A 10% increase
in stock prices at 30 June 2017 would have increased equity by $28,062 (2016: $Nil), an equal change
in the opposite direction would have decreased equity by an equal but opposite amount.
(e) 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.
Fair value hierarchy
The Company 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).
21. COMMITMENTS AND CONTINGENCIES
There are no contingent assets or liabilities as at 30 June 2017. Since the end of the financial year the
Company entered into an agreement to acquire Gekogold Pty Ltd. Under the terms of the consideration
(refer Note 22 below) Bulletin is required to make certain deferred payments contingent upon specific
circumstances occurring.
22. EVENTS SUBSEQUENT TO REPORTING DATE
On 26 July 2017 the Company announced it had acquired Gekogold Pty Ltd (“Geko”), the registered
owner of the Geko gold project located 25 km’s WNW of Coolgardie.
Bulletin acquired all of the issued capital of Geko. Geko is a party to a Tenements Acquisition
Agreement with Golden Eagle Mining Limited (“GEM”), an unlisted company, dated 19th December
2014, whereby GEM is acquiring the project under certain conditions from Geko in return for a royalty.
The Tenement Acquisition Agreement for the Geko gold project by GEM provides for:
1. A 10% net smelter royalty (NSR) on the first 25,000 ounces produced from the Geko gold
project to Geko; and
2. A 4% NSR on all gold produced after the first 25,000 ounces produced from the Geko gold
project to Geko.
59
BULLETIN RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
22. EVENTS SUBSEQUENT TO REPORTING DATE (continued)
The consideration by Bulletin for the acquisition of Geko from the shareholders of Geko is as follows:
1. An initial payment of $250,000 on execution of the agreement being a prepaid component of
the capped royalty (paid);
2. Payment of a 3.33% NSR on gold produced from the Geko gold project capped at $3.5 million;
3. A payment of $750,000 being a further prepaid component of the capped royalty conditional on
Bulletin becoming the 100% beneficial owner of the project.
A further $125,000 was paid on 17 August 2017 as a further prepayment of the capped royalty.
60
BULLETIN RESOURCES LIMITED
DIRECTORS DECLARATION
FOR THE YEAR ENDED 30 JUNE 2017
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
1. The financial statements, comprising the statement of profit or loss and other comprehensive
income, statement of financial position, statement of cash flows, statement of changes in equity,
accompanying notes, 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; and
(b) Give a true and fair view of the financial position as at 30 June 2017 and of the performance
for the year ended on that date of the Company.
2.
In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able
to pay its debts as and when they become due and payable.
3. The Directors have been given the declarations by the Managing Director required by section
295A.
4. The Company has included in the notes to the financial statements an explicit and unreserved
statement of compliance with International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and
on behalf of the Directors by:
Paul Poli
Director - Chairman
Dated this 26th day of September 2017
61
BULLETIN RESOURCES LIMITED
INDEPENDENT AUDIT REPORT TO THE MEMBERS
FOR THE YEAR ENDED 30 JUNE 2017
AUDIT REPORT
62
BULLETIN RESOURCES LIMITED
INDEPENDENT AUDIT REPORT TO THE MEMBERS
FOR THE YEAR ENDED 30 JUNE 2017
AUDIT REPORT (CONTINUED)
63
BULLETIN RESOURCES LIMITED
INDEPENDENT AUDIT REPORT TO THE MEMBERS
FOR THE YEAR ENDED 30 JUNE 2017
AUDIT REPORT (CONTINUED)
64
BULLETIN RESOURCES LIMITED
INDEPENDENT AUDIT REPORT TO THE MEMBERS
FOR THE YEAR ENDED 30 JUNE 2017
AUDIT REPORT (CONTINUED)
65
BULLETIN RESOURCES LIMITED
AUDITOR’S INDEPENDENCE DECLARATION
FOR THE YEAR ENDED 30 JUNE 2017
AUDITOR’S INDEPENDENCE DECLARATION
66
BULLETIN RESOURCES LIMITED
JORC 2012 TABLE 1 DECLARATION
FOR THE YEAR ENDED 30 JUNE 2017
The following additional information is required by the Australian Securities Exchange. The information
is current as at 12th September 2017.
(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)
17
7
28
172
150
374
There were 57 shareholders holding less than a marketable parcel at 12th September 2017.
(b) 20 Largest holders of quoted equity securities as at 12th September 2017
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