ABN 54 118 912 495
ANNUAL REPORT AND FINANCIAL STATEMENTS
YEAR ENDED 30 JUNE 2016
CATALYST METALS LIMITED
CONTENTS
PAGE
CORPORATE DIRECTORY
CHAIRMAN’S REVIEW
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDIT REPORT
CORPORATE GOVERANCE STATEMENT
ADDITIONAL INFORMATION
2
3
4
28
29
30
31
32
33
58
59
61
66
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
1
CATALYST METALS LIMITED
CORPORATE DIRECTORY
DIRECTORS
AUDITORS
Stephen Boston (Non-Executive Chairman)
Robin Scrimgeour (Non-Executive Director)
Gary Schwab (Non-Executive Director)
Bruce Kay (Non-Executive Director)
RSM Australia Partners
8 St Georges Terrace
Perth, Western Australia 6000
COMPANY SECRETARY
SHARE REGISTRY
Frank Campagna
REGISTERED OFFICE
44 Kings Park Road
West Perth, Western Australia 6005
Telephone: +618 6263 4423
+618 9284 5426
Facsimile:
admin@catalystmetals.com.au
Email:
www.catalystmetals.com.au
Website:
Security Transfer Registrars Pty Ltd
770 Canning Hwy
Applecross, Western Australia 6153
Telephone: +618 9315 2333
+618 9315 2233
Facsimile:
registrar@securitytransfer.com.au
Email:
www.securitytransfer.com.au
Website:
STOCK EXCHANGE LISTING
Catalyst Metals Limited is listed on ASX Limited
Home Exchange – Perth
ASX code: CYL & CYLO
GENERAL INFORMATION
The financial statements cover Catalyst Metals Limited as a consolidated entity consisting of Catalyst
Metals Limited and the entities it controlled at the end of, or during, the year. The financial statements
are presented in Australian dollars, which is Catalyst Metals Limited’s functional and presentation
currency.
Catalyst Metals Limited is a listed public company limited by shares, incorporated and domiciled in
Australia.
A description of the nature of the consolidated entity’s operations and its principal activities are included
in the directors’ report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 30
September 2016. The directors have the power to amend and reissue the financial statements.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
2
CATALYST METALS LIMITED
CHAIRMAN’S REVIEW
Dear Shareholder,
The 2016 financial year has been another extremely busy and formative year for your Company with the
continued active development and investment in the Company’s long-term strategy to dominate the
Whitelaw Gold Belt via ground it controls and manages through its Joint Venture with Gold Exploration
Victoria Pty Ltd (“GEV”), Providence Gold and Minerals Pty Ltd and our earn-in partner Navarre Minerals
Limited (“Navarre”). The Company’s stated objective remains that of a major new virgin high grade gold
discovery(s) which has/have been hidden under transported soil cover(s) north of the prolific gold
producing Bendigo gold field (historic gold production of greater than 22 million ounces) in Victoria.
In August 2015, the Company undertook a pro-rata bonus issue of options to eligible shareholders on the
basis of one (1) free option for every twenty (20) shares held. Each Bonus Option is exercisable into one
fully paid ordinary share at an exercise price of 50 cents each on or before 30 June 2018. These options
were subsequently listed and are trading under the Australian Securities Exchange code CYLO. Your
board has been encouraged by a number of shareholders who have already exercised their options into
fully paid ordinary shares in the Company.
In October 2015, the Company presented at a Gold Conference in Sydney, which resulted in the
Company being exposed to the Sydney investment community with a particular focus on the Australian
gold sector.
In February 2016, the Company commenced a major drilling and geophysics programme at the Four
Eagles Gold Project, with two drill rigs contracted to drill approximately 24,000 metres via a combination
of Aircore and RC Blade at Hayanmi and Boyd’s Dam, together with some additional regional
reconnaissance.
As a direct result of the Company’s ongoing drilling success and its previous exposure to the Sydney
investment community, the Company was able to complete a share placement to raise $785,400 at a
subscription price of 40 cents per share. The Placement was arranged and managed by Sydney based
Paradigm Securities Pty Ltd (“Paradigm”). The Company received applications for a total of 1,963,500
ordinary shares for gross subscription proceeds of $785,400. The Company welcomes its new shareholders
who were introduced by Paradigm and looks forward to strengthening the relationship with both
Paradigm and its clients in 2017.
On 12 May 2016, the Company was delighted to advise that its Joint Venture partner GEV had elected
to proceed with the second stage of the farm-in agreement on the Four Eagles Gold Project after it had
earnt an initial 25% equity interest having spent $2.1million on the project since March 2015. GEV will now
spend a further $2.1 million on exploration to earn an additional 25% equity interest in the Four Eagles Gold
Project.
In July 2016, the Company announced the discovery of additional high grade gold mineralisation from
an RC drilling programme at the Tandarra Gold Project (in which the Company is currently earning a 51%
interest from Navarre). The assays received delineated further zones of high grade gold mineralisation
within the Tomorrow Gold Zone at Tandarra.
The Company also reported further high grade gold intersections from an additional RC drilling
programme (that was halted by the arrival of winter rains) at the Four Eagles Gold Project. Although only
2,331 meters (17 holes) were drilled, intersections of greater than 1.0 g/t Au were present in fourteen (14)
of the completed holes.
So in closing off on another productive year for your Company - your Board would like to acknowledge
and thank all of its loyal shareholders (old and new), our Joint Venture Partners, our Earn-in partner, our
hard-working technical team, our Corporate team and Paradigm for everything they have done
collectively for the Company in 2016, as the Company positions itself to make a major discovery of gold
in the very near term.
Stephen Boston
Chairman
30 September 2016
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
3
CATALYST METALS LIMITED
DIRECTORS’ REPORT
The Directors of Catalyst Metals Limited present their report on the consolidated entity for the year ended
30 June 2016.
DIRECTORS
The names of the Directors in office at any time during or since the end of the financial year are:
Stephen Boston
Robin Scrimgeour
Gary Schwab
Bruce Kay
Directors have been in office since the start of the financial year to the date of this report unless otherwise
stated.
COMPANY SECRETARY
Frank Campagna
FINANCIAL POSITION
The net assets of the Group are $923,131 as at 30 June 2016 (2015: $688,077).
CORPORATE STRUCTURE
Catalyst Metals Limited is a company limited by shares that is incorporated and domiciled in Australia.
PRINCIPAL ACTIVITIES
The principal activity of the Group during the financial year was mineral exploration and evaluation.
There was no significant change in the nature of the activities during the year.
RESULTS OF OPERATIONS
The operating loss after income tax of the Group for the year ended 30 June 2016 was $1,098,840 (2015:
$240,105).
DIVIDENDS
No dividend has been paid during or is recommended for the financial year ended 30 June 2016.
REVIEW OF OPERATIONS
The term Whitelaw Gold Belt has been adopted because the Catalyst tenements are situated along the
100 kilometre long Whitelaw Fault which is considered to be extremely important in the genesis of gold
deposits that have formed adjacent to the structure. Victorian government seismic and gravity data
suggest that this large fault structure controlled the formation of the Bendigo gold deposits (historically
approximately 22 million ounces of gold produced at a grade of 15 g/t Au) as well as gold mineralisation
at both the Four Eagles and Tandarra Gold Projects.
The Whitelaw-Tandarra Fault corridor is considered to be very important for gold deposition but is still
largely untested north of Bendigo because the favourable gold-bearing rocks are hidden beneath barren
Murray Basin cover sediments. The objective of Catalyst is to use modern geophysical and drilling
techniques to discover high grade gold deposits that can be mined by open cut or underground
methods. The discoveries at Four Eagles and Tandarra are testament to the high prospectivity of the
Whitelaw Fault Corridor. The Four Eagles Gold Project and the Tandarra Gold Project are about 15
kilometres apart along the Whitelaw Fault Corridor which has experienced limited prior exploration.
Catalyst now manages the entire Whitelaw Gold Belt and has interests in eight Exploration Licences which
extend for 75 kilometres along the Whitelaw and Tandarra Faults north of Bendigo in Victoria (Figure 1).
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
4
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 1: Whitelaw Gold Belt Tenement Holdings
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
5
CATALYST METALS LIMITED
DIRECTORS’ REPORT
FOUR EAGLES JOINT VENTURE (EL4525, EL5295, EL5508)
The Four Eagles Gold Project is a joint venture between Catalyst, Providence Gold and Minerals Pty Ltd
(Providence) and Gold Exploration Victoria Pty Ltd (GEV) (a wholly owned subsidiary of Hancock
Prospecting Pty Ltd). Catalyst is retaining its 50% interest whilst GEV has now earned a 25% interest in the
project and has made the decision to spend a further $2.1 million to earn the remaining 25% from
Providence. The project is managed by Catalyst within the Four Eagles Joint Venture.
The Four Eagles Joint Venture covers an envelope of gold mineralisation about 6 kilometres long and 2.5
kilometres wide with gold occurring in at least three structural zones trending roughly north south (Eagle
2, Eagle 3 and Eagle 4 on Figure 2a and 2b). Three prospects have produced high grade gold
intersections (Discovery, Hayanmi and Boyd’s Dam).
RC BLADE/HAMMER DRILLING
This programme involved the drilling of angled large diameter air core holes (RC Blade/Hammer) on the
Hayanmi Structure. The Hayanmi Gold Zone is one of three gold trends identified at the Four Eagles Gold
Project (Figure 2a and 2b). The objective of the programme was to have drill traverses every 50 to 100
metres along the mineralised corridor to enable geological modelling of the gold mineralisation.
Hayanmi Prospect
A total of 7,593 metres of RC Blade has been completed in 51 holes and a further 42 holes (4,052 metres)
were drilled on the northern extension of the Hayanmi and Boyd’s Dam trends using the smaller diameter
air core rig. The RC Blade programme was carried out in two stages but the second stage was curtailed
in early June 2016 due to successive rain events and grain sowing. More drilling is still required on the
Hayanmi trend and will resume in January 2017. The drilling was successful in confirming the extent of the
gold mineralisation along the zone as shown on the longitudinal projection in Figure 4 with several high
grade gold intersections recorded. A full list of drill results and full location data and the Summary of
Sampling Techniques and Reporting of Exploration Results according to the JORC Code 2012 Edition were
set out in Table 1 and Table 2 of Appendix 1 and 2 of the Catalyst ASX Announcement of 29 April 2016
and in Appendix 1 of the ASX Announcement of 28 July 2016.
3.0 m @ 11.2 g/t Au including 1.0 m @ 32.5 g/t Au from 127 metres (FERC034)
4.0m @ 2.92 g/t Au including 1.0m @ 10.35 g/t Au from 102 metres (FERC033)
1.0m @ 103.0 g/t Au from 149 metres (FERC088)
16.0m @ 1.26 g/t Au from 94 metres including 1.0m @ 9.54 g/t Au from 109 metres(FE085)
8.0m @ 6.2 g/t Au including 1m @ 44.5 g/t Au from 83 metres (FERC052)
5.0m @ 2.71 g/t Au from 100 metres (FERC027)
2.0m @ 25.7g/t Au from 93 metres and 1.0m @ 37.0g/t Au from 109 metres (FERC044)
6.0m @ 4.4g/t Au from 97 metres (FERC050)
9.0m @ 5.7 g/t Au from 108 metres (FE717)
3.0m @ 13.4 g/t Au from 99 metres (FE718)
18.0 metres @1.2 g/t Au from 60 metres and 3.0 m @ 9.2 g/t Au from 147 metres (FE719)
10.0m @ 3.7g/t Au including 2.0m @ 13.9g/t Au from 61 metres (FERC043)
4.0m @ 4.15g/t Au including 1.0m @ 14.6g/t Au from 65 metres (FERC042)
5.0m @ 6.1g/t Au including 1.0m @ 20.6g/t Au from 71 metres (FERC058)
4.0m @ 2.8g/t Au including 1.0m @ 7.9g/t Au from 116 metres (FERC041)
5.0m @ 2.34g/t Au from 73 metres including 1.0m @ 7.91g/t Au (FERC061)
4.0m @2.6g/t Au from 106 metres including 1.0m @ 6.04g/t Au (FERC059)
The longitudinal projection in Figure 4 suggests that the gold mineralisation has a generally flat or gentle
plunge, possibly to the south but this cannot be confirmed without diamond drilling. These flat or gentle
plunges are a characteristic of the total Bendigo-Fosterville district because the mineralisation is generally
related to the intersection of steep fault structures with gently plunging anticlines.
It is informative to look at this early stage information at Hayanmi in comparison to known gold
mineralisation structures at nearby Bendigo and Fosterville. On Figures 5 and 6, the current longitudinal
projection at Hayanmi is shown at the same scale as the Bendigo New Chum lode and Fosterville
respectively. Each of these known ore deposits contained gently plunging shoots that contained greater
than one million ounces of gold over similar strike lengths to that observed at Hayanmi. It is hoped that
further drilling at Hayanmi will better define the ore shoots within this 2.9 kilometre long structure.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
6
CATALYST METALS LIMITED
DIRECTORS’ REPORT
It is also likely that the Boyd’s Dam and Discovery gold zones at Four Eagles will have similar plunging
morphology but further drilling will be required to establish this.
All of the assays quoted above have been obtained using a 25 gram sub-sample and an Aqua Regia
digest followed by ICP-MS analysis but anomalous assays were re-assayed by bulk leaching the total ± 2
kilogram sample subsequent to the end of the financial year. This provides an excellent check of the
variability of gold at Four Eagles which tends to be fine grained and shows a low “nugget effect”
compared to the Bendigo goldfield.
Figure 2a: Four Eagles Gold Project showing defined gold zones and planned 2016 drilling
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
7
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 2b: Four Eagles Gold Project showing intersections for Figure 2a and Figure 3
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
8
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 3: Hayanmi Prospect plan view showing gold trends and drill holes
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
9
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 4: Hayanmi Prospect Longitudinal Projection looking west
Figure 5: Isometric View of the New Chum gold zone at Bendigo compared to the current
mineralised trend at Hayanmi (same scale). Note the “stacking” of flat plunging lodes at Bendigo
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
10
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 6: Longitudinal Projection of Hayanmi compared to the Fosterville Gold Zones (at the same
scale). Courtesy Newmarket Gold Inc.
Boyd’s Dam – Boyd North Prospect
Only three RC Blade/Hammer holes were drilled on the Boyd’s Dam Prospect (Figures 6 & 7) for a total of
320 metres. All holes contained significant gold intersections and confirmed the general gold trends. A
further 23 holes will be required to fully assess the Boyd’s Dam Prospect and these are planned to be
drilled later in 2016 after the annual grain harvest. Assays received from the three holes show the following
intersections:
2m @ 7.57 g/t au from 55 metres (FERC039)
8.0m @ 3.65 g/t Au including 1.0 m @ 12.35 g/t Au and 1.0m @10.05 g/t au from 66 metres
(FERC039)
1.0m @ 10.55 g/t Au from 66 metres (FERC037)
16.0m @ 2.0 g/t Au from 80 metres (FERC038)
These intersections are 400 metres apart as shown on the longitudinal projection on Figure 7.
The new discovery at Boyd North was reported in March 2016 and shows the potential of a high grade
extension to the Boyd’s Dam Prospect. Very high grades were present in a 3 metre sample in FE732 which
produced an assay of >100 g/t Au because of the limitation of the assay method used for the
reconnaissance programmes. This entire 3 metre sample has subsequently been bulk leached and
assayed 154 g/t Au.
Bulk leach assays for one-metre samples were received for drill hole FE728 which reported 3 metres @ 1.15
g/t Au previously and have upgraded the intersection to 1.0 metre @ 6.2 g/t Au from 84 metres. If the
intersections in FE728 and FE732 are on the same structure, a high grade gold zone at least 600 metres
long may be present at Boyd North where basement depths are only 20 to 40 metres.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
11
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Full location data on the 37 RC Blade/Hammer holes was shown on Table 1 and a Summary of Sampling
Techniques and Reporting of Exploration Results according to the JORC Code 2012 Edition were
tabulated in Appendix 1 which was released separately to the ASX in March 2016.
Regional Reconnaissance Exploration
Reconnaissance air core drilling was also undertaken on Exploration Licences 5508 and 5521 to satisfy
work commitments on these licences. Nineteen (19) holes (2,161 metres) were completed on two road
traverses about 40 kilometres north of the Four Eagles gold zones. The objective of the programme is to
test the prospective Whitelaw-Tandarra Fault corridor north of Pyramid Hill where very little previous drilling
has been undertaken. No significant gold values were obtained but one area on Gainey Road
intersected Ordovician basement at 24 metres depth and contained highly anomalous arsenic values. It
will require follow-up drilling at a later stage. Collar location data and assay values were recorded in
Table 2b in Appendix 2 as released to the ASX on 29 April 2016.
GRAVITY SURVEY
The detailed ground gravity survey was completed with 3,040 stations being collected at a 100 metre by
400 metres station spacing. The data has been merged with available Government data and images
are being produced for drill targeting. Several strong trends are apparent in the images and may
represent new structures that could host gold mineralisation. Air core drilling (approximately 3,000 metres)
is proposed to test these targets. These targets are shown on Figure 7.
TANDARRA GOLD PROJECT (EL4897) (CATALYST EARNING 51% FROM NAVARRE MINERALS LIMITED)
The Tandarra Project is comprised of Exploration Licence 4897, which is owned by Navarre Minerals
Limited (Navarre). Under a farm-in arrangement with Navarre, Catalyst is earning a 51% equity interest in
Exploration Licence 4897 by spending $3 million on exploration over a four year period. The Company
delayed the commencement of the drilling programmes until April 2016 because the grant of a further
two year extension to EL4897 was not received until March 2016.
RC BLADE DRILLING: TOMORROW AND MACNAUGHTANS ZONES
RC Blade drilling commenced at the Tomorrow Gold Zone in April 2016 and was completed in early May
2016, of which 39 holes were drilled for a total of 4,003 metres. Thirty Four (34) of these holes were drilled
on the Tomorrow Gold Zone over a strike length of 800 metres and tested the structure down to a vertical
depth of about 80 metres. Eight (8) traverses were completed to give an approximate traverse spacing
of about 50 metres along the mineralised zone with holes oriented at 60 degrees to the west. Each
traverse contained at least one significant gold intersection as shown on the plan view and longitudinal
section as Figures 8a, 8b and 9.
Six holes were drilled on two traverses on the Macnaughtans Gold Zone but the maximum gold value was
0.75g/t Au. All assays reported have been obtained by using an aqua regia digest and an AAS finish on
a 25 gram sample taken from a ± 2 kilogram sample. These 2 kilogram samples still need to be bulk
leached with cyanide to verify the gold values and also to provide a better understanding of the gold
particle size and reproducibility.
All drill traverses on the Tomorrow Gold Zone contained at least one significant gold intersection with some
holes containing multiple zones. A summary of the significant intersections is provided below.
Tomorrow Gold Zone
5.0m @ 17.0g/t Au from 106 metres including 1.0m @ 79.6g/t Au (RCT107)
10.0m @ 6.2g/t Au from 74 metres and 23m @ 1.91g/t Au from 90 metres (RCT111)
2.0m @ 14.3g/t Au from 54 metres and 5.0m @ 5.9g/t Au from 84 metres (RCT132)
4.0m @ 7.9g/t Au from 54 metres (RCT104)
2.0m @ 6.9g/t Au from 61 metres (RCT102)
2.0m @ 13.9g/t Au from 79 metres (RCT115)
7.0m @ 3.16g/t Au from 73metres (RCT119)
1.0m @ 8.96g/t Au from 29 metres and 6.0m @ 6.1g/t Au (RCT136)
1.0m @ 11.2g/t Au from 62 metres (RCT124)
1.0m @ 34.3g/t Au from 82 metres (RCT126)
3.0m @ 6.0g/t Au from 64m (RCT131)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
12
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 7: Gravity Image of four Eagles Gold Project showing targets for drill testing
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
13
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 8: Boyd’s Dam/ Boyd North Prospect plan view showing gold trend and drill holes
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
14
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 9: Boyd’s Dam – Boyd North Longitudinal Projection looking west
The deeper intersection in RCT132 (5.0 metres @ 5.9g/t Au) at the southern end of the Tomorrow structure
appears to be situated west of the main trend and may represent another parallel zone of mineralisation
that has not been tested by previous drilling. There is also scope to extend the Tomorrow Gold Zone along
strike to the south.
All assays are currently being finalised and entered into a database from which interpretation and
modelling of the gold mineralisation will be conducted.
Full location data on the 39 RC Blade/hammer holes and a Summary of Sampling Techniques and
Reporting of Exploration Results according to the JORC Code 2012 Edition were included in Appendix 1
of an ASX announcement dated 20 July 2016. Maximum gold values in each hole were also tabulated
in Table 2 of the same Appendix.
RECONNAISSANCE AIR CORE DRILLING PROGRAMME: TANDARRA
Reconnaissance air core drilling had been planned for the Tandarra North and Dingee Zones (Figure10)
during the June 2016 Quarter but this was delayed by the late grant of EL4897 which meant that many
drill sites became inaccessible because of grain sowing preparation and other seasonal farming activities.
Three holes were drilled to the north of the Tomorrow Gold Zone and showed a basement depth of 80 to
100 metres. No gold mineralisation was intersected but anomalous arsenic values in air core hole ACT
230 suggests that the mineralised corridor may be present in this area. Further testing will be required.
Collar location data and assay values were included in the ASX Announcement on 20 July 2016.
The deferred programme of reconnaissance air core drilling as shown on Figure 10 will now be
rescheduled to begin following the grain harvest in December 2016.
CASTLEMAINE JOINT VENTURE PROJECT: RAYDARRA (EL5266)
A total of 8 reconnaissance air core holes (902 metres) were drilled at Raydarra EL5266 (Figure 1) during
the June Quarter 2016, along the roadside of Triplets Road and Yallock Mail Road, just south of Dingee.
The drilling program was designed to provide vertical holes into Ordovician basement at a nominal
spacing of 320m along two traverses 3.2 kilometres apart within the prospective corridor some 2.8
kilometres south of the Tandarra Tomorrow prospect.
The 5 air core holes drilled along Triplets Road encountered basement at a nominal 70m depth, with drill
holes extending as much as 52 metres into basement, but the basement beneath Yallock Mail Road was
substantially deeper and drilling did not achieve basement depth.
No significant gold values were recorded and the basement and the arsenic geochemistry showed low
values.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
15
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 10: Tandarra Gold Project showing gold zones and areas of proposed reconnaissance drilling
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
16
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 11a: Tomorrow and Macnaughtans Gold Trends showing location of recent RC drillholes
(shown in dark highlight): Significant intersections are tabulated on Figure 8b.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
17
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 11b: Table of significant intersections shown on Figure 8a
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
18
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 12: Longitudinal Projection of the Tomorrow Zone showing area of RC Blade Drilling
OTHER WHITELAW BELT TENEMENTS: 100% CATALYST (EL5521, EL5533, EL5009)
A total of 11 reconnaissance air core holes (1,338 metres) were drilled at Raydarra East EL5509 (Figure 1)
during the June 2016 Quarter, along the roadside of Triplets Road and Yallock Mail Road, Dingee. The
drilling program was designed to provide vertical holes into Ordovician basement at a nominal spacing
of 320m along two traverses 3.2 kilometres apart within the prospective corridor some 2.8 kilometres south
of the Tandarra Tomorrow prospect.
Of the 7 air core holes drilled along Triplets Road, only ACR017 encountered basement; at 112 metres
depth. The remaining holes were terminated prior to achieving basement either due to technical
difficulties (pertaining to unconsolidated gravels) or due to excess depth (beyond 130 metres).
No anomalous gold or arsenic was recorded in drill hole ACR017 which intersected basement.
Reconnaissance air core drilling was carried out on EL5521 (Macorna Bore) and has been discussed earlier
in this report.
There was no field activity on EL5533 (Sebastian).
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group during the financial year.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
19
CATALYST METALS LIMITED
DIRECTORS’ REPORT
FUTURE DEVELOPMENTS
During the course of the next financial year, the Group will continue its mineral exploration activities and
will investigate additional resources projects in which the Group may participate.
In the opinion of the Directors there is no additional information available as at the date of this report on
any likely developments which may materially affect the operations of the Group and the expected
results of those operations in subsequent years.
SUBSEQUENT EVENTS
On 13 July 2016, 22,344 listed options exercisable at $0.50 each were exercised which generated $11,172
in cash proceeds.
On 1 August 2016, the Company issued 100,000 unlisted options exercisable at $1.00 each to the lead
manager of the share placement made in April 2016.
On 3 August 2016, the Company issued 350,000 ordinary fully paid shares to Mr Bruce Kay following the
vesting of Performance Rights upon the satisfaction of vesting conditions.
On 24 August 2016, 28,437 listed options exercisable at $0.50 each were exercised which generated
$14,218 in cash proceeds.
INFORMATION ON DIRECTORS
Stephen Boston (Non-Executive Chairman)
Mr Boston is the Principal of a Perth based private investment group specialising in the Australian resources
sector. Mr Boston previously worked as a stockbroker from 1984 to 1998 in Perth and Sydney. Mr Boston
holds a Bachelor of Arts from the University of Western Australia.
Memberships:
Senior Associate – Financial Services Institute of Australia
Special Responsibilities:
Chairman
Other Directorships:
Interests in securities:
None
Direct:
Indirect:
190,150 Ordinary Shares
9,508 Listed Options ($0.50, expiring 30 June 2018)
5,551,010 Ordinary Shares
277,553 Listed Options ($0.50, expiring 30 June 2018)
(held by Trapine Pty Ltd, Elshaw Pty Ltd and Merewether Pty
Ltd, companies in which Mr Boston holds a relevant interest)
Robin Scrimgeour (Non-Executive Director)
Mr Scrimgeour spent 17 years working for Credit Suisse in London, Tokyo, Hong Kong and Singapore. His
most recent experience has been providing structured hybrid financing for corporates in Asia for project
and acquisitions concentrated in the primary resources sector. Mr Scrimgeour’s previous experience was
as a senior equity derivatives trader involved in the pricing of complex structured equity derivative
instruments for both private and corporate clients focused in Asia. Mr Scrimgeour holds a Bachelor of
Economics with Honours from the University of Western Australia.
Special Responsibilities:
Member of audit committee.
Other Directorships:
None
Interests in securities:
Direct:
Indirect:
Nil
4,915,089 Ordinary Shares
245,630 Listed Options ($0.50, expiring 30 June 2018)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
20
CATALYST METALS LIMITED
DIRECTORS’ REPORT
Gary Schwab (Non-Executive Director)
Mr Schwab is a Certified Practicing Accountant with over 40 years of business experience, including 20
years in the resources sector. Mr Schwab was previously Executive Director for a privately owned
commodities group. In that role, Mr Schwab was responsible for managing a long term wealth creation
strategy (in conjunction with the principal and owner) which culminated in the creation of what is
currently one of Australia’s wealthiest unlisted private commodities companies.
Special Responsibilities:
Chairman of audit committee.
Other Directorships:
None
Interests in securities:
Direct:
Nil
Indirect: Nil
Bruce Kay (Non-Executive Director)
Mr Kay is a qualified geologist and former head of worldwide exploration for Newmont Mining
Corporation. He is a highly experienced geologist with a resource industry career spanning more than 30
years in international exploration, mine, geological, project evaluation and corporate operations. Mr Kay
retired from Newmont in 2003. Based in Denver, Colorado, USA, he managed worldwide exploration for
that Group. Prior to this appointment Mr Kay was group executive and managing director of exploration
at Normandy Mining Limited where he was responsible for managing its global exploration program from
1989 until 2002.
Special Responsibilities:
Technical Director.
Other Directorships:
Interests in securities:
None
Direct:
2,143,326 Ordinary Shares
89,668 Listed Options ($0.50, expiring 30 June 2018
Indirect: Nil
Information on Company Secretary
Frank Campagna B.Bus (Acc), CPA
Company Secretary of Catalyst Metals Limited since November 2009. Mr Campagna is a Certified
Practising Accountant with over 25 years’ experience as a Company Secretary, Financial Controller and
Commercial Manager for listed resources and industrial companies. He currently operates a corporate
consultancy practice which provides corporate secretarial services to both listed and unlisted
companies.
DIRECTORS’ MEETINGS
The number of meetings attended by each of the Directors of the Company during the financial year
was:
Board Meetings
Audit Committee
Meetings
Number
held and
entitled to
attend
Number
Attended
Number
held and
entitled
to attend
Number
Attended
6
6
6
6
6
6
6
6
-
-
-
-
-
-
-
-
21
Stephen Boston
Robin Scrimgeour
Gary Schwab
Bruce Kay
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
CATALYST METALS LIMITED
DIRECTORS’ REPORT
ENVIRONMENTAL REGULATIONS
The Group is subject to significant environmental regulation in respect to its mineral exploration activities.
These obligations are regulated under relevant government authorities within Australia and overseas. The
Group is a party to exploration and mining licences. Generally, these licences and agreements specify
the environmental regulations applicable to exploration and mining operations in the respective
jurisdictions. The Group aims to ensure that it complies with the identified regulatory requirements in each
jurisdiction in which it operates.
Compliance with environmental obligations is monitored by the Board of Directors. No environmental
breaches have been notified to the Group by any government agency during the year ended 30 June
2016. The Group’s operations are subject to State and Federal laws and regulation concerning the
environment.
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any
proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group
for all or any part of those proceedings.
SHARE OPTIONS
As at the date of this report, there were 2,672,403 (2015: 2,623,184) unissued ordinary shares under option.
There are 2,572,403 options exercisable at $0.50 each on or before 30 June 2018 and 100,000 options are
exercisable at $1.00 each on or before 31 July 2018
No person entitled to exercise the options has any right by virtue of the option to participate in any share
issue of the parent entity or any other corporation.
REMUNERATION REPORT (AUDITED)
This report sets out the current remuneration arrangements for directors and executives of the Group. For
the purposes of this report, key management personnel is defined as those persons having authority and
responsibility for planning, directing and controlling major activities of the Group, including any director
of the Group, and includes the executives in the consolidated entity receiving the highest remuneration.
The information provided in this report includes remuneration disclosures that are required under
Accounting Standard AASB 124 Related Party Disclosures.
Principles used to determine the nature and amount of remuneration
Directors and executives remuneration
Overall remuneration policies are determined by the Board and are adapted to reflect competitive
market and business conditions. Within this framework, the Board considers remuneration policies and
practices generally, and determines specific remuneration packages and other terms of employment for
any executive directors and senior management. Executive remuneration and other terms of
employment are reviewed annually by the Board having regard to performance, relevant comparative
information and expert advice.
The Group’s remuneration policy for any executive directors and senior management is designed to
promote superior performance and long term commitment to the Group. Remuneration packages are
set at levels that are intended to attract and retain executives capable of managing the Group’s
operations.
Executive directors and senior executives receive a base remuneration which is market related, together
with performance based remuneration linked to the achievement of pre-determined milestones and
targets.
The Group’s remuneration policies are designed to align executives’ remuneration with shareholders’
interests and to retain appropriately qualified executive talent for the benefit of the Group. The main
principles of the policy are:
-
-
reward reflects the competitive market in which the Group operates; and
individual reward should be linked to performance criteria.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
22
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
The structure of remuneration packages for any executive directors and other senior executives
comprises:
- a fixed sum base salary plus superannuation benefits;
-
short term incentives through eligibility to participate in a performance bonus scheme if deemed
appropriate; and
long term incentives through any executive directors being eligible to participate in share option
schemes with the prior approval of shareholders.
-
Fixed and variable remuneration is established for each executive director by the Board. The objective
of short term incentives is to link achievement of the Group’s operational targets with the remuneration
received by executives charged with meeting those targets.
The objective of long term incentives is to reward executives in a manner which aligns this element of their
remuneration with the creation of shareholder wealth.
Performance incentives may be offered to any executive directors and senior management through the
operation of performance bonus schemes. A performance bonus, based on a percentage of annual
salary, may be payable upon achievement of agreed operational milestones and targets.
Non-executive directors’ remuneration
In accordance with current corporate governance practices, the structure for the remuneration of non-
executive directors and senior executives is separate and distinct. Shareholders approve the maximum
fees payable to non-executive directors, with the current approved limit being $400,000 per annum. The
Board is responsible for determining actual payments to directors. Non-executive directors are entitled
to statutory superannuation benefits. The Board approves any consultancy arrangements for non-
executive directors who provide services outside of and in addition to their duties as non-executive
directors.
Non-executive directors may be entitled to participate in equity based remuneration schemes.
Shareholders must approve the framework for any equity based compensation schemes and if a
recommendation is made for a director to participate in an equity scheme, that participation must be
specifically approved by the shareholders.
All directors are entitled to have premiums on indemnity insurance paid by the Group.
At the 2015 AGM, 100% of the votes received supported the adoption of the remuneration report for the
year ended 30 June 2015. The company did not receive any specific feedback at the AGM regarding its
remuneration practices.
Details of Remuneration for Year Ended 30 June 2016
Details of the remuneration for each director and key management personnel (as defined in AASB 124
Related Party Disclosures) of the Group during the year are set out in the following tables.
2016
Name
Short-term
employment benefits
Cash salary
and fees
Other
Post-
employment
benefits
Superannuation
Share-based
payments
Shares
Total
Non-executive directors
S Boston
R Scrimgeour
G Schwab
B Kay
Total key management
personnel compensation
60,000
43,800
10,000
36,400
150,200
-
-
-
-
-
5,700
-
33,800
20,800
60,300
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
-
-
-
-
-
65,700
43,800
43,800
57,200
210,500
23
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
In 2016, Mr Kay received $40,000 per annum in directors’ fees and was paid extra fees for managing the
Company’s exploration programmes at the Four Eagles Gold Project and Tandarra Gold Project. The
costs incurred in respect of the Four Eagles Gold Project were partially reimbursed by GEV as part of its
earn in expenditure commitments.
Details of Remuneration for Year Ended 30 June 2015
Details of the remuneration for each director and key management personnel (as defined in AASB 124
Related Party Disclosures) of the Group during the year are set out in the following tables.
2015
Name
Short-term
employment benefits
Cash salary
and fees
Other
Post-
employment
benefits
Superannuation
Share-based
payments
Shares
Total
Non-executive directors
S Boston
R Scrimgeour
G Schwab
B Kay
Total key management
personnel compensation
56,306
28,148
10,950
5,895
101,299
-
-
-
-
-
-
-
32,850
34,900
67,750
-
-
-
-
-
56,306
28,148
43,800
40,795
169,049
In 2015, $36,751 of Messrs Boston, Scrimgeour and Kay’s directors’ fees were written off from accrued
directors’ fees carried forward from 2014. This was due to the difference in the share price at the date of
notice of the annual general meeting ($0.35) and the actual share price at the grant date of the shares
($0.225). During 2015 Mr Kay agreed to assist the company’s cash position by foregoing directors’ fees
from 1 January 2014 and receiving only consulting fees.
Letters of appointment have been entered into with each director of the Company. No duration of
appointment or termination benefits are applicable. Effective from 1 January 2012, Non-executive
directors receive remuneration of $40,000 per annum plus statutory superannuation, whilst the Chairman
receives remuneration of $60,000 per annum plus statutory superannuation. Directors are permitted to
salary sacrifice their fees.
The company secretary is deemed to be an executive by virtue of being an officer of the parent entity.
The role performed by the company secretary does not meet the definition of key management person
under AASB 124, hence this officer has been excluded from the key management personnel disclosures
in the financial report.
The company secretary has an agreement on normal commercial terms for the provision of services at
the rate of $5,000 per month.
SHARE-BASED COMPENSATION
Shares
No shares were issued as compensation during the financial year (2015: On 13 November 2014, at the
Company’s 2014 Annual General Meeting, shareholders approved the issue of 294,007 ordinary fully paid
shares to Messrs Boston, Scrimgeour and Kay in lieu of outstanding directors’ fees for the 2013/14 financial
year. The market price at the date of issue of the shares was $0.225 per share).
Options
Options over shares in the Company are granted under the Catalyst Metals Limited Employee Share
Option Plan (“Option Plan”). The purpose of the Option Plan is to provide employees, directors, executive
officers and consultants with an opportunity, in the form of options, to subscribe for ordinary shares in the
Group. The Directors consider the Option Plan enables the Group to retain and attract skilled and
experienced employees, board members and executive officers and provide them with the motivation
to contribute to the growth and future success of the Group.
24
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
During the financial year no options were issued as compensation.
Performance Rights
Performance Rights over shares in the Company are granted under the Catalyst Metals Limited
Performance Rights Plan (“Performance Rights Plan”). The objective of the Performance Rights Plan is to
attract, motivate and retain employees, Directors and consultants (“Eligible Participants”) of the
Company by providing performance related incentives and rewards. Subject to certain criteria being
satisfied, the Board may offer Eligible Participants performance rights which upon vesting will entitle the
holder to one ordinary fully paid share in the Company for each performance right held.
During the financial year no performance rights were issued as compensation. Mr Bruce Kay has been
granted Performance Rights with the following condition:
(a) 350,000 Performance Rights to vest on the date that the Company, through its wholly owned
subsidiary Kite Gold Pty Ltd (Kite Gold) becomes entitled to a 60% interest in the Four Eagles Gold
Project or the Company disposes of any of its rights and interests in the Four Eagles Project, either
via a direct sale of its interests in the project, the assignment of any of rights under the Four Eagles
Heads of Agreement, the sale of all the shares it holds in Kite Gold, the issue of new shares in Kite
Gold, or otherwise.
On 3 August 2016, Mr Kay was issued with 350,000 ordinary fully paid shares in the Company following the
satisfaction of the vesting condition.
SHARE AND OPTION HOLDINGS
Option holdings
The number of options over ordinary shares in the Company held during the year by each director of the
Company and other key management personnel, including their personally related parties, are set out
below:
2016 – Options Holdings
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Balance at
beginning of
year
Granted as
compensation
Exercised
Other
changes
(i)
Balance at
end of
year
Vested and
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
287,061
245,630
-
287,061
245,630
-
89,668
89,668
287,061
245,630
-
89,668
(i(i) All options were issued to directors under a pro rata bonus option prospectus dated 26 August 2015.
Ordinary Shares
The number of ordinary shares in the Group held during the financial year by each director and other key
management personnel of the Group, including their personally related parties, are set out below. There
were no shares granted during the year as compensation.
2016 – Ordinary Share Holdings
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Balance at
beginning of year
Purchased
Other changes
5,694,285
4,865,714
-
1,746,451
46,875
49,375
-
46,875
-
-
-
-
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
Balance at
end of year
5,741,160
4,915,089
-
1,793,326
25
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
Performance Rights
The number of performance rights in the Company held during the financial year by each personally
related parties, are set out below:
2016 – Performance Rights Holdings
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Balance at
beginning of
year
-
-
-
350,000
Granted as
compensation
Vested
Other
changes (ii)
Balance at
end of year
Vested and
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
350,000
-
-
-
-
CONSEQUENCES OF PERFORMANCE ON SHAREHOLDER WEALTH
In considering the Group performance and benefits for shareholder wealth, the factors that are
considered to affect total shareholder return are summarised below:
2016
2015
2014
2013
2012
Net loss for the period
(1,098,840)
(240,105)
(1,023,864)
(1,007,381)
(3,507,052)
Share price at financial year
end ($)
Basic loss per share (cents per
share)
0.59
0.42
(2.1)
(0.5)
0.32
(0.5)
0.33
(2.2)
0.55
(8.5)
END OF REMUNERATION REPORT
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Group has entered into indemnity agreements with each of the directors and officers of the Group.
Under the agreements, the Group will indemnify those officers against any claim or for any expenses or
costs which may arise as a result of work performed in their respective capacities as officers of the Group
or any related entities.
INDEMNIFICATION AND INSURANCE OF AUDITOR
The Group has not, during or since the end of the financial year, indemnified or agreed to indemnify the
auditor of the company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the
auditor of the Group or any related party.
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party for
the purpose of taking responsibility on behalf of the Group for all or part of those proceedings.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
26
CATALYST METALS LIMITED
DIRECTORS’ REPORT
NON-AUDIT SERVICES
The board of directors, in accordance with advice from the audit committee, is satisfied that the provision
of non-audit services during the year is compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001. The directors are satisfied that any non-audit services did
not compromise the external auditor’s independence for the following reasons:
all non-audit services are reviewed and approved by the audit committee prior to commencement
to ensure they do not adversely affect the integrity and objectivity of the auditor; and
the nature of the services provided do not compromise the general principles relating to auditor
independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the
Accounting Professional and Ethical Standards Board.
No fees for non-audit services were paid/payable to the external auditors during the year ended
30 June 2016.
OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF RSM AUSTRALIA PARTNERS
There are no officers of the company who are former partners of RSM Australia Partners
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 30 June 2016 has been received and
immediately follows the Directors’ Report.
This report is made in accordance with a resolution of the Directors.
Stephen Boston
Chairman
Perth, Western Australia
30 September 2016
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
27
RSM Australia Partners
8 St Georges Terrace Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Catalyst Metals Limited for the year ended 30 June 2016, I
declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 30 September 2016
ALASDAIR WHYTE
Partner
C:\program files (x86)\caseware\data\catalyst metals limited - 2016-06 - audit (sync)\Catalyst - Independence Declaration.docx
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2016
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Property, plant and equipment
Exploration and evaluation expenditure
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Trade and other payables
Other - advances
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Equity
Contributed equity
Share-based payments reserve
Accumulated losses
Note
2016
$
2015
$
7
8
9
10
11
12
1,460,562
1,334,945
76,880
31,235
1,537,442
1,366,180
-
-
-
-
-
-
1,537,442
1,366,180
254,109
360,202
431,175
246,928
614,311
678,103
614,311
678,103
923,131
688,077
13
14
14
10,933,680
9,599,786
228,008
228,008
(10,238,557)
(9,139,717)
TOTAL EQUITY
923,131
688,077
The above Consolidated Statement of Financial Position should be read in conjunction with the
accompanying notes.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
29
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the Year Ended 30 June 2016
Note
2016
$
2015
$
Revenue from continuing operations
3
17,746
708,859
Expenses
Professional fees
Administration, occupancy and travel costs
Personnel
Corporate
Exploration costs written off
(84,300)
(150,600)
(91,068)
(74,115)
(205,685)
(139,131)
(132,130)
(184,637)
(603,403)
(400,481)
Loss before income tax expense from continuing operations
(1,098,840)
(240,105)
Income tax expense
6
-
-
Loss after income tax from continuing operations
(1,098,840)
(240,105)
Other comprehensive income
Total comprehensive loss for the year
Total comprehensive loss attributable to
members of the Parent entity
-
-
(1,098,840)
(240,105)
(1,098,840)
(240,105)
Earnings per share for loss attributable to the owners of Catalyst
Metals Limited
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
5
5
(2.1)
(2.1)
(0.5)
(0.5)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read
in conjunction with the accompanying notes.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
30
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended 30 June 2016
Contributed
Equity
$
Accumulated
losses
$
Share-based
payments
reserve
$
Total
$
9,453,634
(8,899,612)
228,008
782,030
-
(240,105)
146,152
-
-
-
9,599,786
(9,139,717)
228,008
-
(1,098,840)
1,385,400
(51,506)
-
-
-
-
-
(240,105)
146,152
688,077
(1,098,840)
1,385,400
(51,506)
10,933,680
(10,238,557)
228,008
923,131
Balance at 30 June
2014
Total comprehensive
loss for the year
Transactions with
owners in their capacity
as owners:
Issue of shares
Balance at 30 June
2015
Total comprehensive
loss for the year
Transactions with
owners in their capacity
as owners:
Issue of shares
Share issue expenses
Balance at 30 June
2016
The above Consolidated Statement of Changes in Equity should be read in conjunction with the
accompanying notes.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
31
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2016
Cash Flows from Operating Activities
Payments for exploration and evaluation
Payments to suppliers, contractors and employees
Research and development tax offsets received
Exploration expenditure recouped (Note 3)
Interest received
Note
2016
$
2015
$
(603,403)
(324,866)
(659,585)
(342,227)
-
-
17,746
191,886
496,833
20,140
Net cash flows (used in) / provided by operating activities
15
(1,245,242)
41,766
Cash Flows from Investing Activities
Net cash flows used in investing activities
-
-
Cash Flows from Financing Activities
Proceeds from issue of shares and other equity securities
1,300,400
15,000
Share issue expenses
Farm in advances received (Note 12)
Farm in advances expended (Note 12)
(31,643)
-
1,407,565
916,522
(1,305,463)
(669,594)
Net cash flows from financing activities
1,370,859
261,928
Net increase / (decrease) in cash and cash equivalents
125,617
303,694
Cash and cash equivalents at the beginning of the
financial year
1,334,945
1,031,251
Cash and cash equivalents at the end of the financial year
7
1,460,562
1,334,945
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying
notes.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
32
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out
below. These policies have been consistently applied to all the years presented, unless otherwise
stated.
(a) New, revised or amending Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new, revised or amending Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for
the current reporting period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory
have not been early adopted.
The adoption of these Accounting Standards and Interpretations did not have any significant impact
on the financial performance or position of the consolidated entity.
(b)
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian
Accounting Standards and Interpretations issued by the Australian Accounting Standards Board
('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial
statements also comply with International Financial Reporting Standards as issued by the International
Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where
applicable, the revaluation of available-for-sale financial assets, financial assets and liabilities at fair
value through profit or loss, investment properties, certain classes of property, plant and equipment
and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It
also requires management to exercise its judgement in the process of applying the consolidated
entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas
where assumptions and estimates are significant to the financial statements, are disclosed in note 2.
(c)
(d)
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the
consolidated entity only. Supplementary information about the parent entity is disclosed in note 25.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Catalyst
Metals Limited ('company' or 'parent entity') as at 30 June 2016 and the results of all subsidiaries for the
year then ended. Catalyst Metal Limited and its subsidiaries together are referred to in these financial
statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated
entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power to direct
the activities of the entity. Subsidiaries are fully consolidated from the date on which control is
transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the
consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction
provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have
been changed where necessary to ensure consistency with the policies adopted by the consolidated
entity.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
33
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change
in ownership interest, without the loss of control, is accounted for as an equity transaction, where the
difference between the consideration transferred and the book value of the share of the non-
controlling interest acquired is recognised directly in equity attributable to the parent.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement
of profit or loss and other comprehensive income, statement of financial position and statement of
changes in equity of the consolidated entity. Losses incurred by the consolidated entity are attributed
to the non-controlling interest in full, even if that results in a deficit balance.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including
goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative
translation differences recognised in equity. The consolidated entity recognises the fair value of the
consideration received and the fair value of any investment retained together with any gain or loss in
profit or loss.
(e) Operating segments
Operating segments are presented using the 'management approach', where the information
presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers
('CODM'). The CODM is responsible for the allocation of resources to operating segments and assessing
their performance.
(f)
Revenue
Revenue is recognised when it is probable that the economic benefit will flow to the consolidated
entity and the revenue can be reliably measured. Revenue is measured at the fair value of the
consideration received or receivable.
Interest
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable
to the financial assets.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
(g)
Impairment
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to
determine whether there is any indication that those assets have been impaired. If such an indication
exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell
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.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
(h) Cash and cash equivalents
For the purpose of the cash flow statement, cash includes cash on hand and at call deposits with
banks or financial institutions and investments in money market instruments with less than 30 days to
maturity.
(i)
(j)
Trade and other receivables
Trade receivables, loans, and other receivables are recorded at amortised cost less impairment.
Financial instruments
Recognition and Initial Measurement
Financial instruments, incorporating financial assets and financial liabilities, are recognised when the
entity becomes a party to the contractual provisions of the instrument. Trade date accounting is
adopted for financial assets that are delivered within timeframes established by marketplace
convention.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
34
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Financial instruments are initially measured at fair value plus transaction costs where the instrument is
not classified as at fair value through profit or loss. Transaction costs related to instruments classified as
at fair value through profit or loss are expensed to profit or loss immediately. Financial instruments are
classified and measured as set out below.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the
asset is transferred to another party whereby the entity no longer has any significant continuing
involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised
where the related obligations are either discharged, cancelled or expire. The difference between the
carrying value of the financial liability extinguished or transferred to another party and the fair value
of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in
profit or loss.
Classification and Subsequent Measurement
(i) Financial assets at fair value through profit or loss
Financial assets classified as held for trading are included in the category ‘financial assets at fair value
through profit or loss’. Financial assets are classified as held for trading if they are acquired for the
purpose of selling in the near term. Derivatives are also classified as held for trading unless they are
designated as effective hedging instruments. Gains or losses on investments held for trading are
recognised in profit or loss.
(ii) Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified
as held-to-maturity when the Group has the positive intention and ability to hold to maturity.
Investments intended to be held for an undefined period are not included in this classification.
Investments that are intended to be held-to-maturity, such as bonds, are subsequently measured at
amortised cost. This cost is computed as the amount initially recognised minus principal repayments,
plus or minus the cumulative amortisation using the effective interest method of any difference
between the initially recognised amount and the maturity amount.
This calculation includes all fees and points paid or received between parties to the contract that are
an integral part of the effective interest rate, transaction costs and all other premiums and discounts.
For investments carried at amortised cost, gains and losses are recognised in profit or loss when the
investments are derecognised or impaired, as well as through the amortisation process.
(iii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. Such assets are carried at amortised cost using the effective
interest method. Gains and losses are recognised in profit or loss when the loans and receivables are
derecognised or impaired, as well as through the amortisation process.
(iv) Available-for-sale investments
Available-for-sale investments are those non-derivative financial assets that are designated as
available-for-sale or are not classified as any of the three preceding categories. After initial recognition
available-for sale investments are measured at fair value with gains or losses being recognised as a
separate component of equity until the investment is derecognised or until the investment is
determined to be impaired, at which time the cumulative gain or loss previously reported in equity is
recognised in profit or loss.
Fair value
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques
are applied to determine the fair value for all unlisted securities, including recent arm’s length
transactions, reference to similar instruments and option pricing models.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
35
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Impairment
At each reporting date, the Group assesses whether there is objective evidence that a financial
instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged
decline in the value of the instrument is considered to determine whether an impairment has arisen.
Impairment losses are recognised in the income statement.
(k)
Exploration and Evaluation Expenditure
Exploration and evaluation expenditure incurred by or on behalf of the Group is accumulated
separately for each area of interest. Such expenditure comprises net direct costs and an appropriate
portion of related overhead expenditure. Each area of interest is limited to a size related to a known
or probable mineral resource capable of supporting a mining operation.
Exploration expenditure for each area of interest is written off as incurred, except that it may be carried
forward provided that one of the following conditions is met:
such costs are expected to be recouped through successful development and exploitation of the
area of interest or, alternatively, by its sale; or
exploration activities in an area of interest have not, at balance date reached a stage which
permits a reasonable assessment of the existence or otherwise of economically recoverable
reserves.
The Group performs impairment testing when facts and circumstances suggest the carrying amount
has been impaired. If it was determined that the asset was impaired it would be immediately written
off to the income statement.
Expenditure is not carried forward in respect of any area of interest unless the Group’s right of tenure
to that area of interest is current. Expenditures incurred before the Group has obtained legal rights to
explore a specific area is expensed as incurred. Amortisation is not charged on areas under
development, pending commencement of production.
(l)
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of
the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days
of recognition.
(m)
Provisions
Provisions are measured at the present value of management’s best estimate of the expenditure
required to settle the present obligation at the balance sheet date.
(n)
Employee entitlements
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service
leave expected to be settled within 12 months of the reporting date are recognised in current liabilities
in respect of employees' services up to the reporting date and are measured at the amounts
expected to be paid when the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of
the reporting date are recognised in non-current liabilities, provided there is an unconditional right to
defer settlement of the liability. The liability is measured as the present value of expected future
payments to be made in respect of services provided by employees up to the reporting date using
the projected unit credit method. Consideration is given to expected future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted
using market yields at the reporting date on national government bonds with terms to maturity and
currency that match, as closely as possible, the estimated future cash outflows.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
36
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they
are incurred.
(o)
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 year. 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 years
is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).
Deferred tax
Deferred tax is accounted for using the comprehensive balance sheet liability method in respect of
temporary differences arising from differences between the carrying amount of assets and liabilities in
the financial statements and the corresponding tax base of those items.
In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax
assets are recognised to the extent that it is probable that sufficient taxable amounts will be available
against which deductible temporary differences or unused tax losses and tax offsets can be utilised.
However, deferred tax assets and liabilities are not recognised if the temporary differences giving rise
to them arise from the initial recognition of assets and liabilities (other than as a result of a business
combination) which affects neither taxable income nor accounting profit. Furthermore, a deferred
tax liability is not recognised in relation to taxable temporary differences arising from goodwill.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the
year(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 Group 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 Group intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the year
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.
(p)
Intangibles
Research and development
Expenditure during the research phase of a project is recognised as an expense when incurred.
Development costs are capitalised only when technical feasibility studies identify that the project will
deliver future economic benefits and these benefits can be measured reliably.
Development costs have a finite life and are amortised on a systematic basis matched to the future
economic benefits over the useful life of the project.
(q)
Equity based payments
The Group determines the fair value of options issued to employees as remuneration and recognises
the expense in the income statement. This policy is not limited to options and also extends to other
forms of equity based remuneration.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
37
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fair value is measured using a Black-Scholes option pricing model that takes into account the exercise
price, the term of the option, the impact of dilution, the share price at grant date and expected price
volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term
of the option. The expected life used in the model has been adjusted, based on management’s best
estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations.
The fair value determined at the grant date of the equity-settled share-based payments is expensed
on a straight-line basis over the vesting period.
(r)
Earnings per share
Basic earnings per share is determined by dividing the profit from ordinary activities after related
income tax expense by the weighted average number of ordinary shares outstanding during the
financial year.
(s) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except:
• where the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as
part of the expense item as applicable; and
receivables and payables are stated with the amount of GST included.
•
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the balance sheet.
Cash flows are included in the cash flow statement on a gross basis and the GST component of cash
flows arising from investing and financial activities, which are recoverable from, or payable to, the
taxation authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or
payable to, the taxation authority.
(t)
Property, Plant and Equipment
Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated
depreciation and any accumulated impairment. In the event the carrying amount of plant and
equipment is greater than the estimated recoverable amount, the carrying amount is written down
immediately to the estimated recoverable amount and impairment losses are recognised in profit or
loss. A formal assessment of recoverable amount is made when impairment indicators are present.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in
excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis
of the expected net cash flows that will be received from the asset’s employment and subsequent
disposal. The expected net cash flows have been discounted to their present values in determining
recoverable amounts.
Depreciation
The depreciable amount of all fixed assets, but excluding freehold land, is depreciated on a straight-
line basis over the asset’s useful life to the consolidated group commencing from the time the asset is
held ready for use.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Computer equipment
Furniture, fittings and equipment
Depreciation Rate
25%-33.33%
33.33%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of
each reporting period.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
38
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These
gains and losses are included in the statement of comprehensive income.
(u)
Issued Capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
(v) Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-
current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or
consumed in the consolidated entity’s normal operating cycle; it is held primarily for the purpose of
trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or
cash equivalent unless restricted from being exchanged or used to settle liability for at least 12 months
after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity’s
normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12
months after the reporting period; or there is no unconditional right to defer settlement of the liability
for at least 12 months after the reporting period. All other liabilities are classified as non-current.
(w) New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but
are not yet mandatory, have not been early adopted by the consolidated entity for the annual
reporting period ended 30 June 2016. The consolidated entity's assessment of the impact of these
new or amended Accounting Standards and Interpretations, most relevant to the consolidated entity,
are set out below.
AASB 9 Financial Instruments and its consequential amendments
This standard and its consequential amendments are applicable to annual reporting periods
beginning on or after 1 January 2018 and completes phases I and III of the IASB's project to replace
IAS 39 (AASB 139) 'Financial Instruments: Recognition and Measurement'. This standard introduces new
classification and measurement models for financial assets, using a single approach to determine
whether a financial asset is measured at amortised cost or fair value. The accounting for financial
liabilities continues to be classified and measured in accordance with AASB 139, with one exception,
being that the portion of a change of fair value relating to the entity's own credit risk is to be presented
in other comprehensive income unless it would create an accounting mismatch. Chapter 6 'Hedge
Accounting' supersedes the general hedge accounting requirements in AASB 139 and provides a new
simpler approach to hedge accounting that is intended to more closely align with risk management
activities undertaken by entities when hedging financial and non-financial risks. The consolidated
entity will adopt this standard and the amendments from 1 July 2018 but the impact of its adoption is
yet to be assessed by the consolidated entity.
2.
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts in the financial statements. Management
continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities,
revenue and expenses. Management bases its judgements, estimates and assumptions on historical
experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and
estimates will seldom equal the related actual results. The judgements, estimates and assumptions that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
(refer to the respective notes) within the next financial year are discussed below.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
39
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
2.
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (Continued)
Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference
to the fair value of the equity instruments at the date at which they are granted. The fair value is
determined by using either the Binomial or Black-Scholes model taking into account the terms and
conditions upon which the instruments were granted.
The accounting estimates and assumptions relating to equity-settled share-based payments would
have no impact on the carrying amounts of assets and liabilities within the next annual reporting period
but may impact profit or loss and equity.
Fair value measurement hierarchy
The consolidated entity is required to classify all assets and liabilities, measured at fair value, using a
three level hierarchy, based on the lowest level of input that is significant to the entire fair value
measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date; Level 2: Inputs other than quoted prices
included within Level 1 that are observable for the asset or liability, either directly or indirectly; and
Level 3: Unobservable inputs for the asset or liability. Considerable judgement is required to determine
what is significant to fair value and therefore which category the asset or liability is placed in can be
subjective.
The fair value of assets and liabilities classified as level 3 is determined by the use of valuation models.
These include discounted cash flow analysis or the use of observable inputs that require significant
adjustments based on unobservable inputs.
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and
amortisation charges for its property, plant and equipment and finite life intangible assets. The useful
lives could change significantly as a result of technical innovations or some other event. The
depreciation and amortisation charge will increase where the useful lives are less than previously
estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will
be written off or written down.
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets other than goodwill and other
indefinite life intangible assets at each reporting date by evaluating conditions specific to the
consolidated entity and to the particular asset that may lead to impairment. If an impairment trigger
exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal
or value-in-use calculations, which incorporate a number of key estimates and assumptions.
It is reasonably possible that the underlying metal price assumption may change which may then
impact the estimated life of mine determinant and may then require a material adjustment to the
carrying value of mining plant and equipment, mining infrastructure and mining development assets.
Furthermore, the expected future cash flows used to determine the value-in-use of these assets are
inherently uncertain and could materially change over time. They are significantly affected by a
number of factors including reserves and production estimates, together with economic factors such
as metal spot prices, discount rates, estimates of costs to produce reserves and future capital
expenditure.
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant
judgement is required in determining the provision for income tax. There are many transactions and
calculations undertaken during the ordinary course of business for which the ultimate tax
determination is uncertain. The consolidated entity recognises liabilities for anticipated tax audit issues
based on the consolidated entity's current understanding of the tax law. Where the final tax outcome
of these matters is different from the carrying amounts, such differences will impact the current and
deferred tax provisions in the period in which such determination is made.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
40
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
2.
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (Continued)
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity
considers it is probable that future taxable amounts will be available to utilise those temporary
differences and losses.
Exploration and evaluation costs
The Group's accounting policy for exploration and evaluation is set out in note 1(k). The application of
this policy necessarily requires management to make certain estimates and assumptions as to future
events and circumstances, in particular the assessment of whether economic quantities of reserves
may be found. Any such estimates and assumptions may change as new information becomes
available. If, after having capitalised expenditure under the Group’s policy, management concludes
that the Group is unlikely to recover the expenditure by future exploitation or sale, then the relevant
capitalised amount will be written off to the income statement.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
41
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
3.
Revenue
Research and development tax offset recovery
Recoupment of Four Eagles exploration expenditure (i)
Interest received
2016
$
2015
$
-
-
17,746
17,746
191,886
496,833
20,140
708,859
(i) Representing the amount claimed and received from Gold Exploration Victoria Pty Ltd in
consideration for exploration expenditure on the Four Eagles Gold Project in accordance with
the Farm-In and Joint Venture Agreement signed by Catalyst Metals Ltd, Kite Gold Pty Ltd, Gold
Exploration Victoria Pty Ltd and Providence Gold and Minerals Pty Ltd on 9 March 2015.
4.
Expenses
Loss before income tax includes the following specific
expenses:
Directors fees
Exploration written off (refer note 1(k))
Share based payments (refer note 18)
Depreciation
5.
Earnings per Share
2016
$
2015
$
210,500
603,403
-
-
138,450
400,481
-
74
2016
No. of Shares
2015
No. of Shares
Weighted average number of ordinary shares for basic and
diluted earnings per share (i)
52,916,608
50,865,474
(ii) In 2016 diluted earnings per share were calculated after classifying all options on issue remaining
unconverted at 30 June 2016 as potential ordinary shares. As at 30 June 2016, the Group had
2,623,184 options over unissued capital and has incurred a net loss. As the notional exercise
prices of these options is greater than the current market price of the shares, they have not
been included in the calculations of the diluted earnings per share as they are anti-dilutive for
all periods presented.
6.
Income tax
Loss before tax
2016
$
2015
$
(1,098,840)
(240,105)
Prima facie tax on operating loss before income tax at 30%
329,652
72,031
Tax effect of:
- non deductible items
- deductible capital raising expenditure
Deferred tax asset not brought to account at the reporting
date as realisation of the benefit is not probable
Income tax attributable to operating loss
(11,978)
-
(317,674)
-
(75,342)
-
3,311
-
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
42
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
6.
Income Tax (continued)
Unrecognised deferred tax
The Group has $9,984,285 (2015: $8,592,921) tax losses arising in Australia that are available
indefinitely for offset against future profit of the companies in which the losses arose.
The potential deferred tax asset of $2,995,286 (2015: $2,577,876), arising from tax losses and
temporary differences (as disclosed above), has not been recognised as an asset because
recovery of tax losses and temporary differences is not considered probable.
The potential deferred tax asset will only be obtained if:
-
-
-
the relevant Group derives future assessable income of a nature and an amount
sufficient to enable the benefit to be realised;
the relevant Group continues to comply with the conditions for deductibility imposed by
tax legislation; and
no changes in tax legislation adversely affect the relevant Group in realising the benefit
from the deduction for the losses.
7.
Cash and cash equivalents
Cash at bank
2016
$
2015
$
1,460,562
1,334,945
The cash at bank as at 30 June 2016 includes $459,418 (2015: $530,396) held in trust by Catalyst
Metals Ltd’s subsidiary, Kite Gold Pty Ltd advanced by Gold Exploration Victoria Pty Ltd as funds
provided in advance for exploration expenditure on the Four Eagles Gold Project in accordance
with the Farm-In and Joint Venture Agreement signed by Catalyst Metals Ltd, Kite Gold Pty Ltd,
Gold Exploration Victoria Pty Ltd and Providence Gold and Minerals Pty Ltd on 9 March 2015 (refer
Note 12). These funds will be applied to settle Current Liabilities of $77,830 (Note 11), and inter
company balances which have eliminated on consolidation, which reduces the net advance at
30 June 2016 to $349,030 (Note 12).
8.
Trade and other receivables
Sundry debtors
2016
$
2015
$
76,880
31,235
Fair value and credit risk
Due to the short term nature of the receivables, their carrying value is assumed to approximate
their fair value.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
43
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
9.
Property, plant and equipment
Computer
equipment
$
Furniture, fittings
and equipment
$
Total
$
Year ended 30 June 2016
Opening net book amount 1 July 2015
Closing net book amount 30 June 2016
At 30 June 2016
Cost or fair value
Accumulated depreciation
Net book amount
Year ended 30 June 2015
Opening net book amount 1 July 2014
Depreciation charge
Closing net book amount 30 June 2015
At 30 June 2015
Cost or fair value
Accumulated depreciation
Net book amount
-
-
20,602
(20,602)
-
74
(74)
-
20,602
(20,602)
-
10.
Exploration and evaluation expenditure
Opening balance
Additions
Exploration written off (refer note 1(k))
Closing balance
11.
Trade and other payables
Current Payables
Trade creditors
Employee expenses payable
Accruals
-
-
11,572
(11,572)
-
-
-
-
-
-
32,174
(32,174)
-
74
(74)
-
11,572
(11,572)
-
32,174
(32,174)
-
2016
$
-
2015
$
-
603,403
(603,403)
400,481
(400,481)
-
-
166,499
29,877
57,733
254,109
238,063
9,418
183,694
431,175
Included in the current payables is an aggregate amount of $77,830 incurred on behalf of the
Four Eagles Gold Project participant, Gold Exploration Victoria Pty Ltd.
Due to the short term nature of these payables, their carrying value is assumed to approximate
their fair value. Trade and other payables are non-interest bearing and normally settled on 30-
day terms.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
44
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
12.
Advances
Advances from Option holders
Opening Balance of Advance from Gold Exploration
Victoria Pty Ltd
Advances received from Gold Exploration Victoria Pty Ltd
Exploration expenditure
Closing Balance of Advance from Gold Exploration
Victoria Pty Ltd
2016
$
11,172
246,928
2015
$
-
-
1,407,565
(1,305,463)
349,030
916,522
(669,594)
246,928
360,202
246,928
The Advance from Gold Exploration Victoria Pty Ltd (GEV) relates to monies advanced to Kite
Gold Pty Ltd for its contribution to exploration expenditure on the Four Eagles Gold Project. The
balance at 30 June 2016 reflects expenditure that has not yet been incurred. This amount is a
timing difference that will be reduced to nil once all proceeds advanced by GEV have been
expended (refer Note 7). Under the Farm-In Agreement, GEV will sole fund up to $4.2 million on
exploration at the Four Eagles Gold Project to earn up to 50% of the Project. GEV has spent $2.1
million to date to earn 25% of the Project and has exercised the right to spend a further $2.1 million
to earn a further 25% of the Project.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
45
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
13.
Contributed Equity
(a) Share capital
Ordinary shares
Fully paid
(b) Other equity securities
Options – Listed
Options – Unlisted
Performance Rights - Unlisted
Total contributed equity
(c) Movements in Ordinary Shares
2016
Number
2016
$
2015
Number
2015
$
(c)
54,729,004 10,953,543
50,895,707
9,599,786
(d)
(d)
(d)
2,623,184
-
350,000
-
-
-
-
166,667
350,000
-
-
-
10,953,543
9,599,786
Details
Balance at 30 June 2014
Issue of shares -
Navarre Minerals Limited
Issue of shares –
Directors in lieu of fees
Issue of shares –
Exercise of unlisted options
Number of
Shares
50,301,700
Issue
Price
$
9,453,634
250,000
$0.260
65,000
294,007
$0.225
66,152
50,000
$0.300
15,000
Balance at 30 June 2015
50,895,707
9,599,786
Issue of shares -
Exercise of unlisted options
Issue of shares –
Share Purchase Plan
Issue of shares –
Navarre Minerals Limited
Issue of shares –
Share Placement
Capital raising expenses
Balance at 30 June 2016
166,667
$0.300
50,000
1,453,130
$0.320
465,000
250,000
$0.340
85,000
1,963,500
$0.400
785,400
-
54,729,004
(51,506)
10,933,680
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
46
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
13.
Contributed Equity (Continued)
(d) Movements in other equity
securities
Details
Listed Options
Balance at 30 June 2014
Balance at 30 June 2015
Issue of options
Balance at 30 June 2016
Unlisted Options
Balance at 30 June 2014
Exercise of options
Expiry of options
Balance at 30 June 2015
Exercise of options
Balance at 30 June 2016
Details
Performance Rights
Balance at 30 June 2014
Balance at 30 June 2015
Balance at 30 June 2016
Number of
Options
Issue
Price
-
-
-
2,623,184
2,623,184
916,667
(50,000)
(700,000)
166,667
(166,667)
-
Number of
Rights
Issue
Price
350,000
350,000
350,000
$
-
-
-
-
-
-
-
-
-
-
$
-
-
-
(e) Ordinary shares
On a show of hands, every member present in person or by proxy shall have one vote and, upon
a poll, each share shall have one vote.
(f) Options
Listed Options
Options over ordinary fully paid shares exercisable:
- at 50 cents each on or before 30 June 2018
(g) Performance Rights
Refer to Note 18 for details of performance rights
Number
2,623,184
2,623,184
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
47
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
13.
Contributed Equity (Continued)
(h) Capital risk management
When managing capital, management’s objective is to ensure the entity continues as a going
concern as well as to maintain optimal returns to shareholders and benefits for other stakeholders.
Management also aims to maintain a capital structure that ensures the lowest cost of capital
available to the entity.
In order to maintain or adjust the capital structure, the entity may adjust the amount of dividends
paid to shareholders, return capital to shareholders, issue new shares, enter into joint ventures or
sell assets.
The entity does not have a defined share buy-back plan.
No dividends were paid in 2016 and no dividends are expected to be paid in 2017.
There is no current intention to incur debt funding on behalf of the Group as on-going exploration
expenditure will be funded via cash reserves, equity or joint ventures with other companies.
The Group is not subject to any externally imposed capital requirements.
(i)
Details of subsidiaries
Details of the Group’s subsidiaries at 30 June 2016 are:
Name of subsidiary
Principal activity
Place of
incorporation and
operation
Proportion of
ownership interest
and voting power
held
Silkfield Holdings Pty Ltd
Mineral Exploration
Australia
Kite Gold Pty Ltd
Mineral Exploration
Australia
Kite Operations Pty Ltd
Mineral Exploration
Australia
100%
100%
100%
14.
Reserves & Accumulated Losses
(a)
Reserves
Share-based payments reserve
Balance at the beginning of the year
Balance at the end of the year
2016
$
228,008
228,008
2015
$
228,008
228,008
The share-based payments reserve records the value of share options issued by the
Group.
(b)
Accumulated losses
Balance at the beginning of the year
Loss for the year
Balance at the end of the year
(9,139,717)
(1,098,840)
(8,899,612)
(240,105)
(10,238,557)
(9,139,717)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
48
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
Notes to the Cash Flow Statement
15.
(a) Reconciliation of net cash (used in) / provided by
operating activities to operating loss after income tax
2015
$
2015
$
Operating loss after tax
(1,098,840)
(240,105)
Add non-cash items:
Depreciation
Share based payment
Directors’ fees paid in shares
Exploration expenditure paid in shares
Changes in net assets and liabilities
(Increase)/decrease in receivables
(Decrease/increase in payables
-
-
-
85,000
74
-
66,152
65,000
(48,412)
(182,990)
4,826
145,819
Net cash (used in) / provided by operating activities
(1,245,242)
41,766
(b) Non-cash financing and investing activities
The Group did not have any non-cash financing or investing activities during the year (2015: Nil).
16.
Key Management Personnel Compensation
(a) Directors and Specified Executives
The names and positions held by key management personnel in office at any time during the
year are:
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Non-Executive Chairman (appointed 1 September 2009)
Non-Executive Director (appointed 1 September 2009)
Non-Executive Director (appointed 8 December 2009)
Non-Executive Director (appointed 9 February 2011)
All of the above persons were also key management persons during the year ended 30 June
2016.
(b)
Key management personnel remunerations
Short-term employee benefits
Post-employment benefits
Share based payments
2016
150,200
60,300
-
210,500
2015
101,299
67,750
-
169,049
Detailed remuneration disclosures are provided in the Remuneration Report section of the
Director’s Report.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
49
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
16.
Key Management Personnel Compensation (Continued)
(c)
Equity instrument disclosures relating to key management personnel
(i)
(ii)
Options provided as remuneration and shares issued on exercise of such options
Details of options provided as remuneration and share issued on the exercise of such options,
together with terms and conditions of the options, can be found in the Remuneration Report
section of the Directors’ Report.
Option holdings
The number of options over ordinary shares in the Company held during the year by each
director of the Company and other key management personnel, including their personally
related parties, are set out below:
2016
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Balance at
beginning of
year
Granted as
compensation
Exercised
-
-
-
-
-
-
-
-
-
-
-
-
Other
changes
(A)
287,061
245,630
-
Balance at
end of year
Vested and
exercisable
287,061
245,630
-
287,061
245,630
-
89,668
89,668
89,668
A.
This represents options issued to eligible shareholders pursuant to the Bonus Option Issue
Prospectus dated 26 August 2015.
2015
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Balance at
beginning of
year
-
-
-
-
Granted as
compensation
Exercised
Other
changes
Balance at
end of year
Vested and
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(iii)
Shareholdings
Ordinary Shares
The number of ordinary shares in the Group held during the financial year by each
director and other key management personnel of the Group, including their
personally related parties, are set out below. There were no shares granted during the
year as compensation.
2016
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Balance at
beginning of year
Purchased
Other changes
5,694,285
4,865,714
-
1,746,451
46,875
49,375
-
46,875
-
-
-
-
Balance at
end of year
5,741,160
4,915,089
-
1,793,326
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
50
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
16.
Key Management Personnel Compensation (Continued)
(c)
Equity instrument disclosures relating to key management personnel (Continued)
(iii)
Shareholdings (Continued)
2015
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
A.
Balance at
beginning of year
Purchased
Other changes
(A)
Balance at
end of year
5,619,135
4,680,500
-
1,652,808
-
-
-
-
75,150
185,214
-
93,643
5,694,285
4,865,714
-
1,746,451
This represents shares issued as a result of accrued directors’ fees from 2013/14 being
paid at the Company’s Annual General Meeting on 13 November 2014 as well as
shares purchased from the market during the year.
Performance Rights
(iv)
The number of performance rights in the Company held during the financial year by each personally
related parties, are set out below:
2016
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
2015
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Balance at
beginning of
year
-
-
-
350,000
Balance at
beginning of
year
-
-
-
350,000
Granted as
compensation
Vested
Other
changes (ii)
Balance at
end of year
Vested and
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
350,000
-
-
-
-
Granted as
compensation
Vested
Other
changes (ii)
Balance at
end of year
Vested and
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
350,000
-
-
-
-
17.
Related Party Disclosures
Key Management Personnel
(i) Mr Boston’s directors’ fees for the year were $65,700 (2015: $56,036) of which $5,475 was accrued
and outstanding at year end.
(ii) Mr Kay’s directors’ fees and consulting fees for the year were $57,200 (2015: $96,500) of which
$7,884 was accrued and outstanding at year end.
(iii) Mr Scrimgeour’s directors’ fees for the year were $43,800 (2015: $28,148).
(iv) Mr Schwab’s directors’ fees for the year were $43,800 (2015 $43,800) of which $10,950 was
accrued and outstanding at year end.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
51
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
18.
Share based payments
The Company has adopted an Employee Share Option Plan that allows for share options to be
granted to eligible employees and officers of the Group. The number of share options that can
be issued under the plan cannot exceed 5% of the total number of shares on issue. The terms and
conditions of the share options issued under the plan are at the discretion of the Board.
No options were granted during the financial year.
Consultant options
The company has issued equity based payments to key corporate and strategic consultants of
the company to provide an incentive for their future involvement and commitment.
2016
2015
Number of
Options
Weighted
Average
Exercise
Price
$
Number of
Options
Weighted
Average
Exercise
Price
$
Opening amount
Exercised during the year
- Consultant options
Expired during the year
Closing amount
-
-
-
-
-
-
-
-
750,000
0.24
(50,000)
(700,000)
-
0.30
0.30
2015
Issue date
Expiry date
Balance at
start of
year
Number
issued
during year
Number
exercised
during year
2 July 2010
30 Jun 2015
750,000
-
(50,000)
Number
expired
during
year
(700,000)
Balance at
end of
year
Number
exercisable
at end of
year
-
-
The following table gives the assumptions made in determining the fair value of the options
granted:
Expiry date
Type
Dividend yield (%)
Expected price volatility (%)
Risk-free interest rate (%)
Expected life of options (years)
Option exercise price ($)
Share price at grant date
Number of options issued
30 Jun 2015
Consultant
-
50%
5.50%
5
$0.30
$0.09
1,000,000
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
52
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
18.
Share based payments (Continued)
Performance Rights
The Company has adopted a Performance Rights Plan which allows for performance rights to be
granted to employees, Directors and consultants of the Group,(“Eligible Participants”) of the
Company by providing performance related incentives and rewards. Subject to certain criteria
being satisfied, the Board may offer Eligible Participants performance rights which upon vesting will
entitle the holder to one ordinary fully paid share in the Company for each performance right held.
During the 2012 financial year Mr Bruce Kay was awarded Performance Rights with the following
conditions:
a.
300,000 Performance Rights will vest on the date that the Company, through its wholly owned
subsidiary Kite Gold elects to continue after Phase 1 of the Four Eagles Heads of Agreement, as
evidenced by satisfaction of the relevant condition precedents to Phase 2, being the issue and
allotment of a further 750,000 Catalyst shares and payment of a further $100,000 in cash to
Providence; and
b.
700,000 Performance Rights will vest on the date that the Company, through Kite Gold,
becomes entitled to the transfer of a 50% interest in each of the exploration licences EL4525
and EL5295 under the Four Eagles Heads of Agreement.
On 19 March 2012, Mr Kay was issued with 300,000 ordinary fully paid shares in the Company when
the vesting condition for the 300,000 Performance Rights was satisfied.
On 15 April 2013 the Company agreed with Mr Kay to alter the Performance Rights conditions to
reflect the Amendment and Restatement Deed of the Heads of Agreement that was signed with
Providence. Under the terms of the revised Performance Rights, Mr Kay agreed to defer the vesting
and issue of 350,000 Performance Rights until the granting of the extension of EL4525 from 20 January
2013 had been granted and Catalyst, through Kite Gold, becomes entitled to a 60% interest in the
Four Eagles Gold Project.
On 17 June 2013, Mr Kay was issued with 350,000 ordinary fully paid shares in the Company when
Kite Gold became entitled to the transfer of a 50% interest in EL4525 and EL5295.
The Performance Rights have been valued at $0.304 each based on the following assumptions:
Each Performance Right will vest (otherwise the Performance Rights have a nil value)
The initial undiscounted value of each Performance Right is effectively the value of an
underlying share in the Company and the valuation is based on the price range that Catalyst
shares traded on ASX during July 2011
No discount is applied for the vesting conditions, as these are not market based performance
conditions
A discount of 20% is applied to general restrictions, such as non-listed status, non-voting rights,
no dividend rights and no rights to surplus on a winding-up, which result in a lesser value than
an ordinary share
Vesting periods have not been taken into account.
Directors Shares
On 13 November 2014, at the Company’s 2014 Annual General Meeting, shareholders approved the
issue of 294,007 ordinary fully paid shares to Messrs Boston, Scrimgeour and Kay in lieu of outstanding
directors’ fees for the 2013/14 financial year. The market price at the date of issue of the shares was
$0.225 per share.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
53
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
19.
Auditors’ Remuneration
Amounts received or due and receivable by the auditors
for:
Auditing accounts
Other services
20.
Commitments
There were no outstanding commitments, which are not
disclosed in the financial statements as at 30 June 2016
other than:
(a) Tenement commitments
No later than 1 year
Later than 1 year but not later than 5 years
21.
Financial Instruments
2016
$
2015
$
22,750
-
22,750
22,600
-
22,600
2016
$
2015
$
554,855
307,267
-
-
554,855
307,267
Notes
Floating
Interest
Rate
1 year or
less
Over 1-5
years
$
$
Non-
interest
bearing
$
Total
$
2016
Financial assets
Cash and cash
equivalents
Trade and other
receivables
Total financial assets
Financial liabilities
Trade and other
payables
Advances
Total financial liabilities
7
8
11
12
1.45%
1,460,562
-
-
-
-
1,460,562
-
-
-
Net financial assets
1,460,562
-
-
-
-
-
-
-
-
1,460,562
76,880
76,880
76,880
1,537,442
254,109
254,109
360,202
614,311
360,202
614,311
(537,431)
923,131
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
54
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
21.
Financial Instruments (continued)
Notes
Floating
Interest
Rate
1 year or less
Over 1-5
years
Non-interest
bearing
Total
$
$
$
$
2015
Financial assets
Cash and cash
equivalents
Trade and other
receivables
Total financial assets
Financial liabilities
Trade and other
payables
Advances
Total financial liabilities
7
8
11
12
2.35%
1,334,945
-
-
-
-
1,334,945
-
-
-
Net financial assets
1,334,945
Reconciliation of net financial assets to net assets
Net Financial Assets
Property, plant & equipment
Exploration expenditure
Net Assets
-
-
-
-
-
-
-
-
1,334,945
31,235
31,235
31,235
1,366,180
431,175
246,928
678,103
431,175
246,928
678,103
(646,868)
688,077
2016
$
2015
$
923,131
688,077
-
-
-
-
923,131
688,077
The Group’s principal financial instruments comprise cash, short-term deposits and financial assets
at fair value through comprehensive income.
The main purpose of these financial instruments is to finance the Group’s operations. The Group has
various other financial assets and liabilities such as sundry receivables, and trade payables, which
arise directly from its operations.
The main risks arising from the Group’s financial instruments are cash flow interest rate risk and equity
price risk. Other minor risks are either summarised below and Note 13 with respect to capital risk
management. The Board reviews and agrees policies for managing each of these risks.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
55
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
21.
Financial Instruments (Continued)
Market Risks
Interest rate risks
The Group’s exposure to the risks of changes in market interest rates relates primarily to the
Group’s short-term deposits with a floating interest rate. These financial assets with variable rates
expose the Group to cash flow interest rate risk. All other financial assets and liabilities in the form
of receivables and payables are non-interest bearing. The Group does not engage in any
hedging or derivative transactions to manage interest rate risk.
Interest rate sensitivity
At 30 June 2016, if interest rates had changed by 100 basis points during the entire year with all
other variables held constant, profit for the year and equity would have been $14,606 (2015:
$13,349) lower/higher, mainly as a result of lower/higher interest income from cash and cash
equivalents.
A sensitivity of 100 basis points has been selected as this is considered reasonably possible in the
current economic environment. Based on the sensitivity analysis only interest revenue from
variable rate deposits and cash balances are impacted resulting in a decrease or increase in
overall income.
Credit risk
The maximum exposure to credit risk at balance date is the carrying amount (net of provision of
doubtful debts) of those assets as disclosed in the balance sheet and notes to the financial
statements. The Group has adopted a policy of only dealing with creditworthy counterparties
and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of
financial loss from defaults. The Group’s exposure and the credit ratings of its counterparties are
continuously monitored and the aggregate value of transactions concluded is spread amongst
approved counterparties.
Liquidity risk
The responsibility for liquidity risk management rests with the Board of Directors. The Group
manages liquidity risk by maintaining sufficient cash or credit facilities to meet the operating
requirements of the business and investing excess funds in highly liquid short term investments.
22.
Segment Information
The Group operates predominantly in one business segment and in one geographical location.
The operations of the Group consist of mineral exploration, within Australia.
23.
Contingent Liabilities and Contingent Assets
The Group does not have any contingent liabilities or contingent assets at 30 June 2016.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
56
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2016
24.
Subsequent Events
On 13 July 2016, 22,344 options exercisable at $0.50 each were exercised which generated
$11,172 in cash proceeds.
On 1 August 2016, the Company issued 100,000 options exercisable at $1.00 each to the lead
manager of the share placement made in April 2016.
On 3 August 2016, the Company issued 350,000 ordinary fully paid shares to Mr Bruce Kay
following the vesting of Performance Rights upon the satisfaction of vesting conditions.
On 24 August 2016, 28,437 options exercisable at $0.50 each were exercised which generated
$14,218 in cash proceeds.
25.
Parent Entity Disclosure
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Contributed equity
Share based payments reserve
Accumulated losses
Total equity
Loss for the year
Total comprehensive loss
2016
$
2015
$
1,020,582
764,549
1,020,684
765,651
187,450
162,750
187,450
162,750
10,933,680
228,008
(10,328,454)
9,599,786
228,008
(9,224,893)
833,234
602,901
(1,103,561)
(314,891)
(1,103,561)
(314,891)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
57
CATALYST METALS LIMITED
DIRECTORS’ DECLARATION
The Directors of the Company declare that in the opinion of the Directors:
1.
the financial statements and notes are in accordance with the Corporations Act 2001 and:
(a) comply with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
(b) give a true and fair view of the consolidated entity’s financial position as at 30 June 2016
and of its performance for the year then ended;
2.
3.
4.
the financial statements and notes thereto also comply with International Financial Reporting
Standards, as disclosed in Note 1;
the directors have been given the declarations required by section 295A of the Corporations Act
2001; and
there are reasonable grounds to believe that the Group will be able to pay its debts as and when
they become due and payable.
This declaration is made in accordance with a circular resolution of the Board of Directors.
Stephen Boston
Chairman
Dated at Perth this 30th day of September 2016
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
58
RSM Australia Partners
8 St Georges Terrace Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
CATALYST METALS LIMITED
Report on the Financial Report
We have audited the accompanying financial report of Catalyst Metals Limited, which comprises the consolidated
statement of financial position as at 30 June 2016, the consolidated statement of profit or loss and comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then
ended, notes comprising a summary of significant accounting policies and other explanatory information, and the
directors' declaration of the consolidated entity comprising the company and the entities it controlled at the year’s
end or from time to time during the financial year.
Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that is free from
material misstatement, whether due to fraud or error. In Note 1, the directors also state, in accordance with
Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with
International Financial Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in
accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant
ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance
about whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial report. The procedures selected depend on the auditor's judgement, including the assessment of the
risks of material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the
financial report in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made
by the directors, as well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We
confirm that the independence declaration required by the Corporations Act 2001, which has been given to the
directors of Catalyst Metals Limited, would be in the same terms if given to the directors as at the time of this
auditor's report.
Opinion
In our opinion:
(a) the financial report of Catalyst Metals Limited is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2016 and of its
performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 1.
Report on the Remuneration Report
We have audited the Remuneration Report contained within the directors’ report for the year ended 30 June 2016.
The directors of the company are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
Opinion
In our opinion the Remuneration Report of Catalyst Metals Limited for the year ended 30 June 2016 complies with
section 300A of the Corporations Act 2001.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 30 September 2016
ALASDAIR WHYTE
Partner
CATALYST METALS LIMITED
CORPORATE GOVERNANCE STATEMENT
A description of the Company’s main corporate governance practices is set out below. These practices,
unless otherwise stated, were in place for the entire financial year. Copies of relevant corporate
governance policies and charters are available in the corporate governance section of the Company’s
web-site at www.catalystmetals.com.au.
Good corporate governance will evolve with the changing circumstances of a company and must be
tailored to meet these circumstances. Catalyst Metals Limited is a junior exploration company which
currently operates with no permanent staff and no executive directors.
This Corporate Governance Statement is current as at 30 June 2016 and was approved by the Board on
30 September 2016.
BOARD OF DIRECTORS
The Board is responsible for guiding and monitoring the Company on behalf of shareholders by whom
they are elected and to whom they are accountable. The Board’s primary role is to formulate the
strategic direction of the Company and to oversee the Company’s business activities and management.
The Company has established functions reserved for the Board and those to be delegated to senior
management, as set out in the Board charter. The charter states that the Board is responsible for:
the overall strategic direction and leadership of the Company;
approving and monitoring management implementation of objectives and strategies;
approving the annual strategic plan and monitoring the progress of both financial and non-financial
performance;
the corporate governance of the Company, and
the establishment and maintenance of a framework of internal control and appropriate ethical
standards for the management of the Company.
Due to the level and nature of the Company’s current activities, there is presently no designated
Managing Director position within the Company. A Managing Director will be appointed when the level
of activities and other circumstances warrant. Upon the appointment of a Managing Director, day to
day management of the Company’s affairs and the implementation of corporate strategies will be
formally delegated by the Board to the Managing Director.
The Board is responsible for the appointment and removal of the Company Secretary. The Board charter
sets out that the company secretary is accountable to the Board on all matters relating to the proper
functioning of the Board.
Board composition and independence
The Board charter states that the Board is to comprise an appropriate mix of both executive and non-
executive directors and where possible, the roles of Chairman and Managing Director are not to be
combined.
The Company has a four member Board comprising four non-executive directors, including the Chairman.
Mr Boston and Mr Scrimgeour are not considered independent by virtue of their respective major
shareholdings in the Company, neither is Mr Kay by virtue of financial remuneration during the year. Mr
Schwab is considered an independent director based on the principles set out below.
The Board has adopted ASX recommended principles in relation to the assessment of directors’
independence, which identifies shareholdings, executive roles and contractual relationships which may
affect independent status. The Board does not believe that length of service is a potential indicator that
independence may have been compromised. Financial materiality thresholds used in the assessment of
independence are set at 10% of the annual gross expenditure of the Company and/or 25% of the annual
income or business turnover of the director.
Under present circumstances, there is not a majority of directors classified as being independent,
according to ASX guidelines. Board members should possess complementary business disciplines and
experience aligned with the Company’s objectives, with a number of directors being independent and
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
61
CATALYST METALS LIMITED
CORPORATE GOVERNANCE STATEMENT
where appropriate, major shareholders being represented on the Board. Where any director has a
material personal interest in a matter, the director must declare his interest and is not permitted to be
present during discussions or to vote on the matter.
The composition of the Board is considered suitable for the Company’s current size and level of operations
and includes an appropriate mix of skills, expertise and experience relevant to the Company’s current
business operations. A Board skills matrix setting out the mix of skills and diversity that the Board aims to
achieve will be progressively introduced as the size and level of activities of the Company expands in the
future. Details of the experience, qualifications and term of office of directors are set out in the Directors’
Report.
Having regard to the share ownership structure of the Company, it is considered appropriate by the Board
that a major shareholder may be represented on the Board and if nominated, hold the position of
Chairman. Such appointment would not be deemed to be independent under ASX guidelines. The
Chairman is expected to bring independent thought and judgement to his role in all circumstances.
Where matters arise in which there is a perceived conflict of interest, the Chairman must declare his
interest and abstain from any consideration or voting on the relevant matter.
Each director has an agreement in writing with the Company, which sets out the key terms and conditions
of their appointment including their duties, rights and responsibilities. Directors have the right, in
connection with their duties and responsibilities, to seek independent professional advice at the
Company’s expense, subject to the prior written approval of the Chairman, which shall not be
unreasonably withheld.
Performance assessment
The Board has adopted a process for an annual self-assessment of its collective performance, the
performance of individual directors and of Board committees. The Chairman meets with each non-
executive director separately to discuss individual performance and the Board as a whole discusses and
analyses its performance over the previous 12 months and examines ways in which the Board can better
perform its duties. No formal assessment was undertaken during the year, however, the Chairman
assesses the performance of the Board, individual directors and Board committees on an ongoing basis
and undertakes informal appraisals with relevant directors.
The performance of senior executives will be reviewed annually by the Board through a formal
performance appraisal and interview. Currently, the Board is collectively responsible for the evaluation
of any senior executives. Executive remuneration and other terms of employment will be reviewed
annually by the Board having regard to performance, relevant comparative information and where
appropriate, expert advice. The Company does not presently have any senior executive positions and
accordingly, no formal evaluation of senior executive performance was undertaken during the year.
BOARD COMMITTEES
The Board has established a separate audit committee. Matters determined by the committee are
submitted to the full Board as recommendations for Board consideration.
Membership of the audit committee comprises two non-executive directors, Mr Schwab (chairman) and
Mr Scrimgeour. Details of the qualifications of committee members and attendance at audit committee
meetings are set out in the Directors’ Report.
The audit committee operates in accordance with a written charter. The audit committee oversees
accounting and reporting practices and is also responsible for:
reviewing statutory financial reports and all other financial information distributed externally;
co-ordination and appraisal of the quality of the audits conducted by the external auditor;
determination of the independence and effectiveness of the external auditor and assessment of
whether non-audit services have the potential to impair the auditor independence;
reviewing the adequacy of the reporting and accounting controls of the Company.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
62
CATALYST METALS LIMITED
CORPORATE GOVERNANCE STATEMENT
The current size of the Board and the stage of development of the Company do not warrant the
establishment of separate remuneration or nomination committees. The directors as a whole are
responsible for the functions normally undertaken by these committees. In circumstances where the
growth or complexity of the Company changes, the establishment of separate committees will be
reconsidered.
The Board reviews all remuneration policies and practices for the Company, including overall strategies
in relation to executive remuneration policies and compensation arrangements for any executive
directors and senior management, as well as all equity based remuneration plans. The structure for the
remuneration of non-executive directors and senior executives is separate and distinct. Details of the
Company’s remuneration policies are set out in the Remuneration Report section of the Directors’ Report.
Board nomination procedures
The current size of the full Board permits it to act as the nomination committee and to regularly review
membership. When a Board vacancy occurs, the Board identifies the particular skills, experience and
expertise that will best complement Board effectiveness and then undertakes a selection process to
identify candidates who can meet those criteria.
Prior to a candidate being considered for appointment as a director of the Company, appropriate
enquiries are made as to the person’s character, experience, education, criminal record and bankruptcy
history. Shareholders are provided with relevant information on any directors standing for re-election at
a general meeting of the Company, including relevant qualifications and experience.
New directors are provided with an induction including comprehensive briefings with the Chairman and
senior executives, visits to operating sites and provision of information on the Company including
Company and Board policies and other relevant documents.
All directors are expected to maintain the skills required to effectively discharge their obligations to the
Company. Directors are encouraged to undertake professional development programmes to develop
and maintain the skills and knowledge needed to perform their role as directors of the Company.
CORPORATE REPORTING
The chief executive officer (or equivalent) and chief financial officer provide a declaration to the Board
that the Company’s external financial reports present a true and fair view of the Company’s financial
condition and operational results and that the declaration in relation to the integrity of the Company’s
external financial reports is founded on sound risk management and internal control systems and that
those systems are operating effectively in relation to financial reporting risks.
The external auditors provide an annual declaration of their independence to the Board. The current
audit engagement partner has conducted the audit since December 2011 with rotation due no later
than five years from that date.
RISK MANAGEMENT
The Company does not have a separate internal audit function as the Board believes that existing internal
controls and management systems provide sufficient assurance that the Company’s risk management,
governance and internal control processes are operating effectively. Operational, financial, legal,
compliance and strategic risks are managed as part of the day-to-day management of the Company’s
affairs with the support of relevant external professional advisers as required.
No separate risk committee has been established. The Board is responsible for the oversight of the
Company’s risk management and control framework. Responsibility for control and risk management will
be delegated in the future to the appropriate level of management within the Company with the
Managing Director (or equivalent) having ultimate responsibility to the Board for the risk management
and control framework.
The Company’s risk management systems are evolving and it is recognised that the extent of the systems
will develop with the growth in the Company’s activities. Internal controls are designed to manage both
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
63
CATALYST METALS LIMITED
CORPORATE GOVERNANCE STATEMENT
the effectiveness and efficiency of significant business processes, the safeguarding of assets, the
maintenance of proper accounting records and the reliability of financial and non-financial information.
As the Board currently has responsibility for the monitoring of risk management it has not required a formal
report regarding the material risks and whether those risks are managed effectively.
The Company undertakes mineral exploration activities and recognises that there are inherent risks in
conducting its business operations. Material risks associated with economic, environmental and social
sustainability include operational risks, occupational, health and safety, community and environmental
risks, mineral resource estimates, metal prices and exchange rate fluctuations, financing and working
capital requirements, compliance and regulatory risks.
Some of these risks are beyond the Company’s direct control and require risk mitigation strategies whilst
other risks are directly within the control of the Company and are managed through operational and
management procedures.
CODE OF CONDUCT
A formal code of conduct has been established and applies to all directors and employees, to guide
compliance with the legitimate interests of all stakeholders. The code aims to encourage the appropriate
standards of conduct and behaviour of the directors, employees and contractors of the Company. All
personnel are expected to act with integrity and objectivity, striving at all times to enhance the reputation
and performance of the Company.
The Company’s share trading policy prohibits the purchase or disposal of securities by directors, senior
executives and other designated persons in the period of one week prior to the release of quarterly reports
and the Company’s annual and half-year financial results. Any proposed transactions to be undertaken
must be notified to the Chairman or Company Secretary in advance.
Where the Company grants securities under an equity based remuneration scheme, participants are
prohibited from entering into arrangements for the hedging, or otherwise limiting their exposure to risk in
relation to unvested shares, options or rights issued or acquired under the scheme.
EMPLOYMENT DIVERSITY
The Board recognises the benefits of achieving an appropriate mix of diversity on its Board and throughout
the Company as a means of enhancing the Company's performance and organisational capabilities.
However, due to the current size and stage of development of the Company and there being no
permanent employees, the Board has elected not to establish a formal diversity policy at this stage.
The Company aims to achieve an appropriate mix of diversity on its Board, in senior management and
throughout the organisation. The Board has determined that no specific measurable objectives will be
established until such time as the number of employees and level of activities of the Company increases
to a level sufficient to enable meaningful and achievable objectives to be developed.
The appropriate mix of skills and diversity for membership of the Board is considered as part of ongoing
nomination and succession planning and which recognises the value of balanced gender representation.
The Board currently comprises four directors, none of whom are female. The Company Secretary and the
Chief Financial Officer are both male. There are no other officers or permanent employees of the
Company.
CONTINUOUS DISCLOSURE AND SHAREHOLDER COMMUNICATIONS
The Company has a formal written policy for the continuous disclosure of any price sensitive information
concerning the Company. Material information is lodged immediately with the ASX and then
disseminated by posting on the Company’s web-site.
The Board has adopted a formal written policy covering arrangements to promote communications with
shareholders and to encourage effective participation at general meetings. The Company and the share
registry offer mechanisms for electronic communication by shareholders, including an e-mail alert facility
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
64
CATALYST METALS LIMITED
CORPORATE GOVERNANCE STATEMENT
available through the Company’s web-site. The external auditor is requested to attend annual general
meetings and be available to answer shareholder questions about the conduct of the audit and the
preparation and content of the audit report.
All shareholders are entitled to elect to receive a printed copy of the Company’s annual report. In
addition, all market announcements, media briefings, details of shareholders’ meetings, press releases
and financial reports are made available on the Company’s web-site.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
65
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
The following information was reflected in the records of the Company as at 23 September 2016.
Distribution of share and option holders
1
1,001
5,001
10,001
- 1,000
- 5,000
- 10,000
- 100,000
100,001 and over
Including holdings of less than a marketable parcel
Number of holders
Fully paid
shares
Quoted
options
155
80
21
35
5
296
40
70
56
148
64
378
38
Substantial shareholders
The following shareholders have lodged a notice of substantial shareholding in the Company.
Shareholder
Trapine Pty Ltd
Drill Investments Pty Ltd
Robin Scrimgeour
Gavin Caudle
Kenneth Raymond Teagle
Toby Mountjoy
Twenty largest holders of fully paid shares
Shareholder
HSBC Custody Nominees (Australia) Limited
1.
Drill Investments Pty Ltd
2.
Trapine Pty Ltd
3.
Toby Mountjoy
4.
Chepalix Pty Ltd
5.
Kenneth Raymond Teagle
6.
Bruce Kay and Henriette Kay
7.
Providence Gold & Minerals Pty Ltd
8.
9.
Gavin Caudle
10. Gavin Arnold Caudle
11.
12. Gavin Arnold Caudle
13.
14.
15.
16.
17.
18.
19.
20.
Citicorp Nominees Pty Ltd
Kimberley Downs Pty Ltd
Vestcourt Pty Ltd
Roger George Davis
John Paul Sisterson
Lindway Investments Pty Ltd
Elshaw Pty Ltd
Anthony John Battaglia
Kenneth Raymond Teagle
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
Number of shares
%
5,484,135
4,946,667
4,587,500
3,873,625
3,424,294
2,928,126
Shares
7,206,551
5,615,094
4,600,585
2,442,870
2,046,875
2,021,074
1,863,183
1,730,349
1,500,000
1,373,625
1,150,540
1,000,000
937,702
933,938
787,500
735,500
699,731
584,375
582,096
567,000
38,378,588
9.95
8.97
8.32
7.03
6.21
5.31
%
13.07
10.19
8.35
4.43
3.71
3.67
3.38
3.14
2.72
2.49
2.09
1.81
1.70
1.69
1.43
1.33
1.27
1.06
1.06
1.03
69.62
66
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
Twenty largest holders of quoted options
Optionholder
HSBC Custody Nominees (Australia) Limited
Drill Investments Pty Ltd
Trapine Pty Ltd
Toby Mountjoy
Chepalix Pty Ltd
Providence Gold & Minerals Pty Ltd
Bruce Kay and Henriette Kay
Gavin Caudle
Gavin Arnold Caudle
Kenneth Raymond Teagle
Kenneth Raymond Teagle
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12. Gavin Arnold Caudle
13.
14.
15.
16.
17.
18.
19.
20.
John Wilson
Kimberley Downs Pty Ltd
Citicorp Nominees Pty Ltd
Vestcourt Pty Ltd
Roger George Davis
John Paul Sisterson
Lindway Investments Pty Ltd
Elshaw Pty Ltd
Options
360,203
258,011
230,030
122,144
102,344
88,750
75,660
75,000
68,682
61,754
57,527
50,000
50,000
46,697
41,877
39,375
36,775
34,987
29,219
29,105
1,858,140
%
14.00
10.03
8.94
4.75
3.98
3.45
2.94
2.92
2.67
2.40
2.24
1.94
1.94
1.82
1.63
1.53
1.43
1.36
1.14
1.13
72.24
Classes of shares and voting rights
At meetings of members or classes of members, each member entitled to vote may vote in person or by proxy
or attorney. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy is
entitled to one vote, and on a poll, every person present in person or by proxy has one vote for each ordinary
share held.
Unquoted securities
The following classes of unquoted securities are on issue:
Security
Options over fully paid shares exercisable:
Holders of greater than 20% of each class of
security
Number
on issue Name of holder
Number
%
- at $1.00 each on or before 31.07.18
100,000 Martin Place Securities Pty Ltd
100,000
100.0
Tenement directory
Project
Tenement number
Beneficial interest
Victoria
Four Eagles
Four Eagles
Pyramid
Raydarra East
Tandarra
Sebastian
Raydarra
Macorna Bore
EL4525
EL5295
EL5508
EL5509
EL4897
EL5533
EL5266
EL5521
50%
50%
50%
100%
51% (earning in via farm-in agreement)
100%
51% (earning in via farm-in agreement)
100%
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
67
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
Competent person statement
The information in this report that relates to exploration results is based on information compiled by Mr Bruce
Kay, a Competent Person, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Kay is
a non-executive director of the Company and has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as
a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the JORC Code). Mr Kay consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears.
Much of the historical information relating to the Four Eagles project was prepared and first disclosed under
the JORC Code 2004. This information has not been updated since to comply with the JORC Code 2012
on the basis that the information has not materially changed since it was reported.
Information relating to the Tandarra project was first disclosed by previous tenement holders under the
JORC Code 2004. This information has been subsequently reported by the Company in accordance with
the JORC Code 2012, refer to announcement dated 1 September 2014 and the quarterly activities report
dated 31 July 2014.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2016
68