ABN 54 118 912 495
ANNUAL REPORT AND FINANCIAL STATEMENTS
YEAR ENDED 30 JUNE 2017
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
ADDITIONAL INFORMATION
2
3
4
25
26
27
28
29
30
54
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Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
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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
29 September 2017. The directors have the power to amend and reissue the financial statements.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Dear Shareholder,
The 2017 financial year saw your Company really begin to leverage off its long term strategy of
dominating the Whitelaw Gold Belt and conducting high quality exploration (which was initiated by your
board in 2011) both technically and corporately.
On 16 March 2017, the Company announced that it had reached agreement with ASX-listed gold
producer, St Barbara Limited (St Barbara)(ASX:SBM) to subscribe for $1.5 million of Catalyst shares in a
placement which resulted in the issue of 3 million ordinary fully paid shares at an issue price of 50 cents
per share. St Barbara’s investment in your Company was as a direct result of the confidence it has in the
gold potential of the Whitelaw Gold Belt. We welcome St Barbara to our register – and look forward to
developing our relationship with them both as a major shareholder and technically.
On 19 May 2017, the Company announced it had been advised by the Resources Division of Minerals
Development Victoria (EcoDev) that it had been successful with three applications for co-funding under
the TARGET initiative to promote mineral exploration in Victoria. During the period to 30 June 2018, the
Company will receive matching funding of $910,850 on exploration expenditure on three of the
Company’s projects in the Whitelaw Gold Belt.
On 31 July 2017, the Company announced that a share offer made under a prospectus dated 5 May
2017 had been fully subscribed and that the offer had closed early. $1.5 million was raised via the issue of
3 million ordinary fully paid shares at an issue price of 50 cents per share. St Barbara was a major
participant in this offer – resulting in it raising its shareholding in your company to 7.23%.
These two capital raisings as well as the TARGET funding awarded to your company will allow for the
acceleration of your company’s 2017/18 exploration activities over the entire Whitelaw Gold Belt.
The Catalyst strategy over the last five years has been vindicated by the spectacular exploration success
of Kirkland lake Gold Limited (KL) at the Fosterville Gold Mine which lies on a large fault system similar to
the Whitelaw Gold Belt to the east. In July 2017, KL announced a new reserve for the Swan Discovery of
532,000 ounces at a grade of 58.8g/t Au (Reference: TSX announcement by KL dated 27 July 2017). In the
June 2017 quarter, Fosterville produced 77,069 ounces of gold at a grade of 17.2g/t Au at an AISC of
approximately $380 per ounce (Reference: TSX announcement by KL dated 9 July 2017).
This discovery and transformation of the Fosterville gold mine has resulted in renewed investor interest in
the gold exploration potential in Victoria. Just as this news was becoming known in Australia, our
Company announced a 22 metre intersection (in FERC185 at Hayanmi) that assayed 36.5g/t Au, with a
one-metre interval assaying an incredible 273 g/t Au, which is the highest ever recorded for an interval at
our Four Eagles Gold project to date, and one of the best greenfields exploration intersections reported
in Australia in 2016/17.
Our Company currently finds itself (by way of its singular control of a proven/live high grade gold belt) in
the epi-centre of what might very well be a major re-rating of Victorian Gold both domestically and
internationally! As a board we are very looking forward to what 2017/18 might deliver – on both the
corporate and technical fronts – as well as to what might happen should a major re-rating of Victorian
Gold more generally begin to start really playing-out!
In closing off on “the best year yet” for our Company - your Board would like to again acknowledge and
thank all of its many loyal shareholders (old and new), our Joint Venture Partners, our Earn-in Partner, our
incredible technical team and our Corporate team for everything they have done collectively for the
Company in 2016/17, as the Company continues to position itself to make a major high grade gold
discovery in Victoria in the very near term.
Stephen Boston
Chairman
29 September 2017
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
The Directors of Catalyst Metals Limited present their report on the consolidated entity for the year ended
30 June 2017.
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 $2,148,309 as at 30 June 2017 (2016: $923,131).
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 2017 was $1,24,909 (2016:
$1,098,840).
DIVIDENDS
No dividend has been paid during or is recommended for the financial year ended 30 June 2017.
REVIEW OF OPERATIONS
The 2017 exploration programme has been the most successful in the Company’s history with very high
grade gold discovered at Four Eagles and Tandarra and a new regional gold discovery at Four Eagles.
The following achievements have been delivered to shareholders:
Best ever intersections recorded at Hayanmi Zone at Four Eagles Gold Project
20m @ 21.4g/t Au (FERC185)
22m @ 36.5g/t Au (FERC185)
Very high grade gold mineralisation intersected at Boyd’s Dam at Four Eagles Gold Project:
6m @ 31.6g/t Au including 1m @ 138.5g/t Au (FERC152)
19m @ 9.5g/t Au including 1m @ 100.0g/t Au (FERC158)
Further high grade gold intersections confirm Boyd North Prospect:
4m @ 20.0g/t Au (FE776)
9m @ 8.2g/t Au (FERC164)
High grade gold mineralisation in shallow drilling of Tomorrow Zone at Tandarra Gold Project
10m @ 14.0g/t Au from 47 metres
17m @ 7.1g/t Au from 30 metres
21m @ 6.5g/t Au from 27 metres
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Potential new gold discovery on Eagle 1 at Four Eagles Gold Project (3m @ 4.8g/t Au)
Visible gold logged in RC drilling chips at Four Eagles Gold Project
Low nugget effect at Four Eagles and Tandarra confirmed by good assay correlation between
small (25 gram) and large (2 kilogram) samples
Catalyst secures Victorian Government TARGET co-funding on three projects for $912,000
New Exploration Licence Application on Drummartin and Redesdale Faults gold potential north of
Fosterville
Share placement to St Barbara Limited for $1,500,000
Mineralisation Report for Four Eagles completed and Retention Licence Application lodged over
area of EL4525
The Catalyst exploration effort is focussed on the Whitelaw Gold Belt north of Bendigo where two
greenfields gold discoveries have been made in the last ten years. 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).
In April 2017, the Company lodged an Exploration Licence application over a large area of approximately
660 square kilometres to cover parts of two regional fault structures east of and parallel to the Whitelaw
Gold Belt. The location of this ELA006507 is shown on Figure 1 and covers the projected position of two
major regional fault structures interpreted from gravity geophysical data (Drummartin and Redesdale
Faults). The Company believes that these fault systems may have similar gold potential to the Whitelaw
Gold Belt and have received little previous exploration. Subject to EL grant, the exploration on this licence
will aim to test about 60 kilometres of strike length along these structures.
FOUR EAGLES JOINT VENTURE (EL4525, EL5295, EL5508, RL006422)
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 will likely spend a further $2.1 million before the end of 2017 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).
All available detailed exploration data has been released during the 2017 year in Quarterly Reports,
Presentations and special ASX announcements and the reader is referred to this information rather than
the brief summary presented in this report.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 1: Whitelaw Gold Belt Tenement Holdings showing major Catalyst managed projects
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
RC BLADE/HAMMER DRILLING
This programme involved the drilling of angled large diameter air core holes (RC Blade/Hammer) on the
Boyd’s Dam, Boyd North and Hayanmi Structures. Detailed plans, longitudinal projections and cross
sections are presented in the Quarterly Report to the end of June 2017. The RC programme in 2017 has
shown high grade gold mineralisation at a 50 metre traverse spacing on Hayanmi and Boyd’s Dam and
confirmed the Boyd North structure as a shallow gold bearing structure. Summary longitudinal projections
are shown as Figures 3 and 4.
Hayanmi Prospect
Thirteen RC holes for a total of 1,936 metres were drilled over a 400-metre strike length of the Hayanmi
Trend to test the gold mineralisation down to a vertical depth of about 100 metres. The objective of the
programme was to test the Hayanmi structure at a traverse spacing of about 50 metres in order to
interpret the shape of the gold mineralisation. The bulk leach data confirmed the strong intersections
reported in the 25 gram assay data with a maximum value of 313g/t Au over a one metre interval. The
best intersections yet recorded at the Four Eagles Gold project were recorded in FERC185 with two strong
intervals. This may indicate vertical “stacking” of the gold mineralisation which was a characteristic of
the Bendigo gold zones. Significant intersections are listed below and are shown in plan view on Figure 2
and in longitudinal projection on Figure 3:
20.0m @ 21.4g/t Au including 5.0m @ 82g/t Au from 76 metres (FERC185)
22.0m @ 36.5g/t Au from 116 metres including 8.0m @ 90.2g/t Au from 130 metres (FERC185)
6.0m @ 21.5g/t Au from 77 metres including 4.0m @ 31.5g/t Au from 79 metres (FERC183)
Modelling of the mineralised shapes and diamond drilling should resolve the structural setting of the gold
mineralisation.
Boyd’s Dam – Boyd North Prospect
A total of 3,510 metres of RC Blade in 24 holes at Boyd’s Dam and a further 23 holes (2,427 metres) at Boyd
North were drilled in 2017 and have been reported in previous ASX announcements.
This drilling showed strong gold mineralisation in the core section of Boyd’s Dam and also confirmed the
high gold grades obtained at Boyd North with air core in 2016. The total length of the Boyd’s Dam Boyd
North structure is now about 1.8 kilometres long with sporadic high gold grades scattered over the entire
length. Boyd North is still only tested at 150 metre intervals and will require RC hammer drilling to penetrate
the common quartz veins that occur along the structure.
Significant intersections are shown in plan view on Figure 2 and diagrammatically on the longitudinal
projection as Figure 4 and are listed below:
6.0 m @ 31.6g/t Au including 1.0 m @ 138.5g/t Au from 114 metres (FERC152)
19.0m @ 10.5g/t Au including 1.0m @ 100.0g/t Au from 59 metres (FERC158)
4.0m @ 20.0g/t Au including 1.0m @ 70.6g/t Au from 110 metres (FE776)
9.0m @ 10.2g/t Au from 42 metres (FERC147)
1.0m @ 28.8g/t Au from 83 metres (FERC153)
5.0m @ 7.97g/t Au from 50 metres (FE782)
9.0m @ 8.2g/t Au from 37 metres (FERC164)
12.0m @ 2.7g/t Au from 107 metres and 1.0m @ 20.9g/t Au from 86 metres (FERC154)
13.0m @ 3.6g/t Au from 81 metres (FERC155)
1.0 m @ 25.5g/t Au from 91 metres and 1.0m @ 32.3g/t Au from 112 metres (FERC149)
2.0m @ 7.9g/t Au from 95 metres (FERC146)
1.0m @23.6g/t Au from 115 metres (FERC145)
6.0m @ 3.7g/t Au from 98 metres (FE766)
4.0m @ 7.1g/t Au from 95 metres and 2.0m @ 17.6g/t Au from 157 metres (FERC161)
15.0m @ 2.2g/t Au from 94 metres (FERC172)
5.0m @ 3.4g/t Au from 82 metres (FERC166)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 2a: Four Eagles Gold Project showing areas of RC Blade/Hammer and Air Core Drilling in 2017.
Recent gravity target intersections are also shown
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 2b: Four Eagles Gold Project showing significant intersections for Figure 2a
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 3: Longitudinal Projection of Hayanmi Prospect showing areas of RC drilling in 2017.
Figure 4: Longitudinal Projection of Boyd’s Dam- Boyd North highlighting 2017 drill intersections (in blue)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Regional Air Core Reconnaissance Exploration
Air core drilling was completed in May 2017 with 8,899 metres of drilling completed at Boyd North,
Hayanmi North, and Discovery Zones as well as reconnaissance drilling on five of the eight gravity
geophysical targets.
Gravity Targets
A geophysical gravity survey in 2016 highlighted eight gravity targets for drill testing in 2017. Based on
accessibility, five of these targets were tested with air core drilling during the March to May 2017 period
and two of the targets have shown gold mineralisation (Figure 2a)
Assay results from the testing of gravity target 3 has produced a very significant gold intersection of
3.0 metres @ 4.8g/t Au from 123 metres depth in drill hole FE847. This zone is in a totally new area with no
previous drilling but may lie on the interpreted Eagle 1 Trend which had weak gold intersections about
2.5 kilometres to the north. On gravity Target 4, six (6) kilometres to the north, low grade gold mineralisation
was also intersected in drill hole FE845 which contained 3.0m @ 0.46g/t Au from 96 metres and 3.0 metres
@ 0.61g/t Au from 114 metres.
These results confirm the regional potential of the Four Eagles Gold project and show that gravity
geophysics could be useful for reconnaissance over the entire 80 kilometre long Whitelaw Gold Belt.
Discovery Zone
Air core drilling was undertaken on the Discovery Zone for the first time in several years and has extended
the high grade zone by 400 metres to the north with an intersection of 3.0 metres @ 9.6g/t Au in drill holeole
FE811 and visible gold recorded in drill hole FE842. This zone contained some of the highest grade
intersections at the Four Eagles Gold Project but the exploration programme has focussed on Boyd’s Dam
and Hayanmi where the basement depth is shallower. Limited drilling was carried out at the northern end
of the Discovery Zone where air core hole FE663 contained 3.0 metres @ 59g/t Au. The Discovery Zone
appears to have several parallel lines of gold mineralisation and more drilling is required to understand
the gold distribution evidenced in the following intersections:
3.0m @ 9.6g/t Au (FE811)
3.7m @ 4.7g/t Au including 0.8 m @ 17.5g/t Au (FEDD001)
0.4m @ 8.4g/t Au and 0.75m @ 15.3g/t Au (FEDD007)
0.4m @ 152g/t Au (FEDD008)
6.0m @ 82.7g/t Au (FE328)
1.5m @ 1.81g/t Au (FE326)
3.0m @ 9.71g/t Au (FE380)
3.0m @ 1.4g/t Au (FE840)
3.0m @59.0g/t Au and 3.0m @ 7.0g/t Au (FE663)
Gold in the Discovery Zone is usually related to massive or stringer quartz zones and is a high-grade
underground exploration target.
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. In September
2016, Catalyst satisfied an initial two-year expenditure commitment by spending a minimum of $800,000
on the Tandarra Gold Project (Figure 7).
RC BLADE DRILLING: TOMORROW AND MACNAUGHTANS ZONES
In April 2017, a 3,819 metre RC Blade drilling program commenced at the Tomorrow Gold Prospect to
provide detailed grade information on the shallow, high-grade gold occurring within the top 60 metres
of depth over a strike length of about 450 metres (Figure 8).
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
The programme of 64 angled, large diameter RC Blade drill holes were designed to test the continuity of
the gold mineralisation that could be amenable to open pit mining. The drill traverse spacing was
approximately 25 metres north-south and will enable mineralised shapes to be estimated with confidence
in an area where the un-mineralised cover is relatively shallow (18 to 30 metres).
The drilling programme has confirmed high grade mineralisation over thick widths down to a vertical
depth of about 60 metres and should enhance the grade in a portion of the shallow gold mineralisation.
After modelling, it should be possible to determine the plunge of the shallow mineralisation thus providing
drill targets at deeper levels. Best intersections (Assay in g/t Au X metre length > 15 gram-metres) from
the 2017 drill programme are shown as follows and diagrammatically on the longitudinal projection on
Figure 8:
Tomorrow Prospect
2017 Intersections:
6.0m @ 6.1g/t Au from 34 metres (RCT155)
8.0m @ 5.2g/t Au from 42 metres (RCT156)
8.0m @ 1.4g/t Au from 59 metres (RCT169)
3.0m @ 5.6g/t Au from 31 metres (RCT170)
10.0m @ 14.0g/t Au from 47 metres (RCT172)
17.0m @ 7.1g/t Au from 30 metres (RCT173)
7.0m @ 5.6g/t Au from 67 metres (RCT174)
21.0m @ 6.5g/t Au including 3.0m @ 33.3g/t Au from 27 metres (RCT177)
9.0m @ 2.2g/t Au from 44 metres (RCT178)
4.0m @ 7.0g/t Au from 36 metres (RCT183)
7.0m @ 2.8g/t Au from 22 metres (RCT184)
6.0m @ 2.6g/t Au from 40 metres (RCT187)
6.0m @ 3.0g/t Au from 32 metres (RCT194)
2.0m @ 6.6g/t Au from 54 metres (RCT196)
2.0m @ 9.4g/t Au from 57 metres (RCT197)
13.0m @ 1.3g/t Au from 32 metres (RCT199)
8.0m @ 3.1g/t Au from 31 metres (RCT204)
RECONNAISSANCE AIR CORE DRILLING PROGRAMME: TANDARRA
There was no field activity on the regional targets at Tandarra during 2017 but the Company has been
successful in being awarded a TARGET grant from the Victorian EcoDev as discussed later in this report.
BULK LEACH ASSAYS COMPARED TO 25 GRAM ASSAYS
Four Eagles Gold Project
Approximately 1,280 samples from the RC drilling programme on Hayanmi and Boyd’s Dam Prospects
(Figures 2a & 2b) have been re-assayed by bulk leaching the total ±2 kilogram sample. These samples
have been chosen because they contained anomalous gold when using a 25 gram sub-sample and an
Aqua Regia digest followed by ICP-MS analysis. This provides an excellent check of the variability of gold
at the Four Eagles Gold Project which tends to be fine grained and shows a low “nugget effect” compared
to the Bendigo Goldfield.
Results of the bulk leach samples generally showed a good correlation with the smaller samples,
particularly at the critical lower grade range - as shown on the inset in Figure 5. Because of the larger size
sample, the bulk leach assays are usually considered to be more reliable. Metallurgical test work has also
shown that almost 60% of gold at Four Eagles is very fine grained (< 38 microns).
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Figure 5: Four Eagles Gold Project showing assay correlation between 25 gram samples and
2-kilogram bulk leach samples
Figure 6: Tandarra Gold Project showing assay correlation between 25-gram samples
and 2-kilogram bulk leach samples.
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Tandarra Gold Project
Prior to 2015, Tandarra samples had been assayed only by bulk cyanide leaching so there was no data
on comparison to small sample analysis to test the reproducibility of assays. In 2016 and 2017, Catalyst
used the same assay methodology as applied at Four Eagles on RC drill samples in order to gain a better
understanding of grade variability at the Tandarra Gold Project. As above, RC samples were initially
assayed by using a 25 gram sub-sample subjected to an aqua regia leach and ICP-MS assay. Any
anomalous samples were then subjected to a bulk cyanide leach of the total ±2 kilogram sample.
Approximately 1,000 samples have now been re-assayed in this manner and show excellent correlation
between assays from small and large samples as shown by the scatter plot on Figure 6. Bulk Leach assays
were usually slightly higher than the small 25 gram sample but only a minor proportion of the 1,000 samples
assayed showed a lesser correlation. This supports the view that Tandarra gold mineralisation has a lower
nugget variability compared to Bendigo which means that drilling assay data can be used for resource
estimation.
CASTLEMAINE JOINT VENTURE PROJECT: RAYDARRA (EL5266)
Because of the focus on other higher priority targets in the Whitelaw Gold Belt, activity on Raydarra was
limited to analysis of data and statutory reporting.
OTHER WHITELAW BELT TENEMENTS: 100% CATALYST (EL5521, EL5533, EL5009)
There was no field activity on these licences in 2017 but considerable resources have been applied in
data review and planning for air core programmes in the latter half of the 2017 calendar year. Gravity
surveys will be undertaken to target gold structures at Macorna Bore(EL5521).
TARGET MINERALS EXPLORATION INITIATIVE GRANTS PROGRAMME (ROUND 2)
In January 2017, Catalyst submitted four applications to the Victorian Department of Economic
Development Jobs, Transport and Resources (EcoDev) for joint exploration funding of the Company’s
projects in the Whitelaw Gold Belt. These applications were lodged under Stage 2 of the Victorian
Government’s TARGET initiative which is designed to promote exploration in Victoria. Catalyst has
received acceptance (subject to execution of grant agreements) for three of these applications and will
receive matching funding of up to $910,850 during the 2017/18 year. Exploration is proposed on the
following three projects:
Macorna Bore EL5521 (TARGET funding of $312,200)
This project will undertake a gravity survey followed up by Air Core drilling on EL5521 and adjacent areas
on EL5508. As shown on Figure 6, this area lies on the interpreted northern extension of the Whitelaw
Tandarra Fault corridor which may also be prospective for gold mineralisation. Drilling in 2016 showed
shallow basement with anomalous arsenic values in air core drilling and this is often an indicator of
proximity to gold mineralisation.
Hayanmi and Boyd’s Dam (EL4525) deeper diamond drilling (TARGET funding $373,950)
The objective of this programme will be to test the Hayanmi and Boyd’s Dam structures at a vertical depth
of 200 to 300 metres. Based on comparative studies at Bendigo and Fosterville, rich gold lodes are often
present in gently plunging shoots or separate parallel shoots beneath the shallow gold mineralisation
intersected near surface. This diamond drilling programme will be planned after a complete
interpretation of all results from the current RC and Air Core programmes. The area to be tested would
lie beneath the current shallow drilling panels shown on Figures 3 and 4.
Tandarra (EL4897) Dingee Zone Programme (TARGET funding $224,700)
This programme will aim to trial Deep Ground Penetrating Radar (DGPR), a geophysical method that
may be useful in identifying anticlinal structures and mineralised zones in the basement rocks. It may also
be useful in mapping the basement topography beneath the Murray Basin sediments. Subject to the
results of the DGPR survey, air core drilling will be used to test any targets on the Dingee Zone (Figure 7).
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Figure 7: Tandarra Gold Project showing areas of RC Blade drilling at the Tomorrow Zone in 2017.
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Figure 8: Longitudinal projection of Tomorrow Gold zone showing panel drilled in 2017
and recent intersections (blue highlight)
MINERALISATION REPORT/RETENTION LICENCE APPLICATION
Under Victorian Department of Economic Development, Jobs, Transport and Resources (DEDJTR)
regulations, before the expiry of the term of an exploration licence, application must be made for
conversion of the exploration licence into a Retention Licence, which includes a regulatory assessment
process. During the December 2016 Quarter, Catalyst finalised the preparation of a Mineralisation Report
on the Hayanmi and Boyd’s Dam Gold Zones. The main purpose of this report is to satisfy DEDJTR
regulations to show that gold mineralisation has been discovered and to form the basis of an application
for a Retention Licence to replace the current Exploration Licence 4525. The Report has attempted to
apply shapes to the zones of gold mineralisation and outline a ten-year programme of further exploration,
scoping studies and possible feasibility studies.
The Retention Licence application was lodged on 22 December 2016. The RL006422 application is
expected to take some time to be granted but the underlying EL4525, which had a nominal expiry of 19
January 2017 remains in force until the Retention Licence is approved.
Subsequent to year end, DEDJTR (regulatory arm of the Victorian Earth Resources Department) have
contacted the Company and requested additional information and clarifications on the Mineralisation
Report to assist in its regulatory assessment of the Report. This will include updating the Report with
information obtained from the 2017 drilling programme and is expected to be completed during the
December 2017 Quarter. Accordingly, Catalyst has formally requested an extension of time in which the
Mineralisation Report was required to be submitted. An extension (which was received by the Company
on the 28 September 2017) has been formally granted by DEDJTR until the 30 November 2017.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
16
CATALYST METALS LIMITED
DIRECTORS’ REPORT
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group during the financial year.
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 31 July 2017 the prospectus dated 5 May 2017 to raise $1,500,000 was closed fully subscribed and
1,715,833 shares were allotted at $0.50 each for $857,916. There was an interim allotment of shares on 16
June 2017 for $642,084.
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
5,065,102 Ordinary Shares
245,630 Listed Options ($0.50, expiring 30 June 2018)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
17
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
-
-
-
-
-
-
-
-
18
Stephen Boston
Robin Scrimgeour
Gary Schwab
Bruce Kay
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
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 3,672,403 (2016: 2,672,403) unissued ordinary shares under option.
There are 2,572,403 options exercisable at $0.50 each on or before 30 June 2018, 100,000 options are
exercisable at $1.00 each on or before 31 July 2018 and 1,000,000 options exercisable at $1.00 each on
or before 31 October 2020.
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:
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
19
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
-
-
reward reflects the competitive market in which the Group operates; and
individual reward should be linked to performance criteria.
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 2016 AGM, 100% of the votes received supported the adoption of the remuneration report for the
year ended 30 June 2016. The company did not receive any specific feedback at the AGM regarding its
remuneration practices.
Details of Remuneration for Year Ended 30 June 2017
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.
2017
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
72,000
52,560
48,000
85,133
257,693
-
-
-
-
-
6,840
-
4,560
23,312
34,172
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
-
-
-
-
-
78,840
52,560
52,560
108,445
292,405
20
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
In 2017, Mr Kay received $48,000 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 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
-
-
-
-
-
65,700
43,800
43,800
57,200
210,500
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.
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 July 2016, Non-executive directors
receive remuneration of $48,000 per annum plus statutory superannuation, whilst the Chairman receives
remuneration of $72,000 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 (2016: Nil).
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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
21
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
During the financial year 1,000,000 options exercisable at $1 each on or before 31 October 2020 were
issued to consultants of the Company.
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 (2016: Nil). 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 of previously issued performance rights.
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:
2017 – 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
-
89,668
-
-
-
-
-
-
-
-
-
-
-
-
287,061
245,630
-
89,668
287,061
245,630
-
89,668
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.
2017 – Ordinary Share Holdings
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Balance at
beginning of year
Purchased
Other changes
5,741,160
4,915,089
-
1,793,326
-
150,013
-
-
Balance at
end of year
5,741,160
5,065,102
-
-
-
-
350,000
2,143,326
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
22
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:
2017 – 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:
2017
2016
2015
2014
2013
Net loss for the period
(1,124,909)
(1,098,840)
(240,105)
(1,023,864)
(1,007,381)
Share price at financial year
end ($)
Basic loss per share (cents per
share)
0.50
0.59
(2.0)
(2.1)
0.42
(0.5)
0.32
(0.5)
0.33
(2.2)
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 2017
23
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 2017.
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 2017 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
29 September 2017
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
24
RSM Australia Partners
Level 32, 2 The Esplanade 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 2017, 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: 29 September 2017
ALASDAIR WHYTE
Partner
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 2017
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
2017
$
2016
$
7
8
9
10
11
12
2,529,414
1,460,562
68,581
76,880
2,597,995
1,537,442
-
-
-
-
-
-
2,597,995
1,537,442
261,427
188,259
449,686
254,109
360,202
614,311
449,686
614,311
2,148,309
923,131
13
14
14
13,138,803
10,933,680
372,972
228,008
(11,363,466)
(10,238,557)
TOTAL EQUITY
2,148,309
923,131
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 2017
26
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the Year Ended 30 June 2017
Note
2017
$
2016
$
Revenue from continuing operations
3
119,405
17,746
Expenses
Professional fees
Administration, occupancy and travel costs
Personnel
Corporate
Exploration costs written off
(160,452)
(106,301)
(84,300)
(91,068)
(465,299)
(205,685)
(139,567)
(132,130)
(372,695)
(603,403)
Loss before income tax expense from continuing operations
(1,124,909)
(1,098,840)
Income tax expense
6
-
-
Loss after income tax from continuing operations
(1,124,909)
(1,098,840)
Other comprehensive income
Total comprehensive loss for the year
Total comprehensive loss attributable to
members of the Parent entity
-
-
(1,124,909)
(1,098,840)
(1,124,909)
(1,098,840)
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
(2.0)
(2.0)
(2.1)
(2.1)
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 2017
27
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended 30 June 2017
Contributed
Equity
$
Accumulated
losses
$
Share-based
payments
reserve
$
Total
$
Balance at 30 June 2015
9,4599,786
(9,139,717)
228,008
688,077
Total comprehensive loss
for the year
Transactions with owners
in their capacity as
owners:
Issue of shares
Share issue expenses
-
(1.098,840)
1,385,400
(51,506)
-
-
-
-
-
Balance at 30 June 2015
10,933,680
(10,238,557)
228,008
(1,098,840
1,385,400
(51,506)
923,131
(1,124,909)
-
(1,124,909)
Total comprehensive loss
for the year
Transactions with owners
in their capacity as
owners:
Share based payments
Issue of shares
Transfer upon vesting of
performance rights
Share issue expenses
-
-
2,167,474
106,399
(68,750)
Balance at 30 June 2016
13,138,803
(11,363,466)
-
-
-
-
231,500
-
(106,399)
19,863
372,972
231,500
2,167,474
-
(48,887)
2,148,309
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 2017
28
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2017
Cash Flows from Operating Activities
Payments for exploration and evaluation
Payments to suppliers, contractors and employees
Research and development tax offsets received
Interest received
Note
2017
$
2016
$
(372,694)
(603,403)
(603,311)
(659,585)
105,936
13,469
-
17,746
Net cash flows (used in) / provided by operating activities
15
(856,600)
(1,245,242)
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
2,167,473
1,300,400
Share issue expenses
Farm in advances received (Note 12)
Farm in advances expended (Note 12)
(68,750)
(31,643)
1,381,650
1,407,565
(1,554,921)
(1,305,463)
Net cash flows from financing activities
1,925,452
1,370,859
Net increase / (decrease) in cash and cash equivalents
1,068,852
125,617
Cash and cash equivalents at the beginning of the
financial year
1,460,562
1,334,945
Cash and cash equivalents at the end of the financial year
7
2,529,414
1,460,562
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 2017
29
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
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').
(c)
(d)
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.
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 2017 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 2017
30
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
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 2017
31
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
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 2017
32
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
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 such costs are expected to be recouped through successful development and
exploitation of the area of interest or, alternatively, by its sale.
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 2017
33
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
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.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares that are provided to employees
in exchange for the rendering of services. Cash-settled transactions are awards of cash for the
exchange of services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is
independently determined using either the Binomial or 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, together with non-vesting conditions that do not determine
whether the consolidated entity receives the services that entitle the employees to receive payment.
No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase
in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the
grant date fair value of the award, the best estimate of the number of awards that are likely to vest
and the expired portion of the vesting period. The amount recognised in profit or loss for the period is
the cumulative amount calculated at each reporting date less amounts already recognised in
previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined
by applying either the Binomial or Black-Scholes option pricing model, taking into consideration the
terms and conditions on which the award was granted. The cumulative charge to profit or loss until
settlement of the liability is calculated as follows:
during the vesting period, the liability at each reporting date is the fair value of the award at that
date multiplied by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of
the liability at the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions
is the cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject
to market conditions are considered to vest irrespective of whether or not that market condition has
been met, provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification
has not been made. An additional expense is recognised, over the remaining vesting period, for any
modification that increases the total fair value of the share-based compensation benefit as at the
date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to
satisfy the condition is treated as a cancellation. If the condition is not within the control of the
consolidated entity or employee and is not satisfied during the vesting period, any remaining expense
for the award is recognised over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and
any remaining expense is recognised immediately. If a new replacement award is substituted for the
cancelled award, the cancelled and new award is treated as if they were a modification.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
34
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(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)
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.
(q) 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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
35
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or
payable to, the taxation authority.
(r)
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.
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.
(s)
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.
(t) 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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
36
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(u)
Joint ventures
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement
have rights to the net assets of the arrangement. Investments in joint ventures are accounted for using
the equity method. Under the equity method, the share of the profits or losses of the joint venture is
recognised in profit or loss and the share of the movements in equity is recognised in other
comprehensive income. Investments in joint ventures are carried in the statement of financial position
at cost plus post-acquisition changes in the consolidated entity's share of net assets of the joint venture.
Goodwill relating to the joint venture is included in the carrying amount of the investment and is neither
amortised nor individually tested for impairment. Income earned from joint venture entities reduce the
carrying amount of the investment.
(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 2017. 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.
AASB 16 Leases
This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The
standard replaces AASB 117 'Leases' and for lessees will eliminate the classifications of operating leases
and finance leases. Subject to exceptions, a 'right-of-use' asset will be capitalised in the statement of
financial position, measured as the present value of the unavoidable future lease payments to be
made over the lease term. The exceptions relate to short -term leases of 12 months or less and leases
of low-value assets (such as personal computers and small office furniture) where an accounting
policy choice exists whereby either a 'right-of-use' asset is recognised or lease payments are expensed
to profit or loss as incurred. A liability corresponding to the capitalised lease will also be recognised,
adjusted for lease prepayments, lease incentives received, initial direct costs incurred and an estimate
of any future restoration, removal or dismantling costs. Straight-line operating lease expense
recognition will be replaced with a depreciation charge for the leased asset (included in operating
costs) and an interest expense on the recognised lease liability (included in finance costs). In the
earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when
compared to lease expenses under AASB 117. However, EBITDA (Earnings before Interest, Tax,
Depreciation and Amortisation) results will be improved as the operating expense is replaced by
interest expense and depreciation in profit or loss under AASB 16. For classification within the statement
of cash flows, the lease payments will be separated into both a principal (financing activities) and
interest (either operating or financing activities) component. For lessor accounting, the standard does
not substantially change how a lessor accounts for leases. The consolidated entity will adopt this
standard from 1 July 2019. The impact of the new leases standard is that leased asset will be capitalised
in the statement of financial position, measured as the present value of the unavoidable future lease
payments to be made over the lease term and a liability corresponding to the capitalised lease will
also be recognised, adjusted for lease prepayments, lease incentives received, initial direct costs
incurred and an estimate of any future restoration, removal or dismantling costs
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
37
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
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.
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.
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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
38
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
3.
Revenue
Research and development tax offset recovery
Interest received
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)
5.
Earnings per Share
2017
$
2016
$
105,936
13,469
119,405
-
17,746
17,746
2017
$
2016
$
286,373
372,695
231,500
210,500
603,403
-
2017
No. of Shares
2016
No. of Shares
Weighted average number of ordinary shares for basic and
diluted earnings per share (i)
56,004,449
52,916,608
(i) In 2017 diluted earnings per share were calculated after classifying all options on issue remaining
unconverted at 30 June 2017 as potential ordinary shares. As at 30 June 2017, the Group had
3,672,403 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
2017
$
2016
$
(1,124,909)
(1,098,840)
Prima facie tax on operating loss before income tax at 27.5%
309,350
329,652
Tax effect of:
- non deductible items
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
(79,911)
(11,978)
(229,439)
(317,674)
-
-
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
39
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
6.
Income Tax (continued)
Unrecognised deferred tax
The Group has $10,486,155 (2016: $9,651,833) 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 $2,883,693 (2016: $2,750,772), 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
2017
$
2016
$
2,529,414
1,460,562
The cash at bank as at 30 June 2017 includes $173,218 (2016: $459,418) 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 $53,190 (2016: $77,830) (Note
11), and intercompany balances which have eliminated on consolidation, which reduces the net
advance at 30 June 2017 to $175,759 (2016: $349,030) (Note 12).
8.
Trade and other receivables
Sundry debtors
2017
$
2016
$
66,581
76,880
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 2017
40
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
9.
Property, plant and equipment
Year ended 30 June 2017
Opening net book amount 1 July 2016
Closing net book amount 30 June 2017
At 30 June 2017
Cost or fair value
Accumulated depreciation
Net book amount
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
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
Computer
equipment
$
Furniture, fittings
and equipment
$
Total
$
-
-
-
-
-
-
20,602
(20,602)
11,572
(11,572)
32,174
(32,174)
-
-
-
-
-
-
-
-
-
20,602
(20,602)
-
11,572
(11,572)
-
32,174
(32,174)
-
2017
$
-
2016
$
-
372,695
603,403
(372,695)
(603,403)
-
-
181,630
21,867
57,930
261,427
166,499
29,877
57,733
254,109
Included in the current payables is an aggregate amount of $53,190 (2016: $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 2017
41
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
12.
Advances
Advances from Option holders
Advances from applicants to Prospectus
Opening Balance of Advance from Gold Exploration
Victoria Pty Ltd
2017
$
-
12,500
2016
$
11,172
-
349,030
246,928
Advances received from Gold Exploration Victoria Pty Ltd
1,381,650
1,407,565
Exploration expenditure
Closing Balance of Advance from Gold Exploration
Victoria Pty Ltd
(1,554,921)
(1,305,463)
175,759
349.030
188,259
360,202
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 2017 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 2017
42
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
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
Details
Balance at 30 June 2015
Issue of shares -
Exercise of unlisted options
Issue of shares –
Share Purchase Plan
Issue of shares –
Share Purchase Plan
Issue of shares –
Share Placement
Capital raising expenses
Balance at 30 June 2016
Issue of shares -
Exercise of listed options
Issue of shares –
Vesting of performance rights
Issue of shares –
Exercise of listing options
Issue of shares –
Share Placement
Issue of shares –
Prospectus part issue
Capital raising expenses
Balance at 30 June 2017
2017
Number
2017
$
2016
Number
2016
$
(c)
59,413,952 13,138,803
54,729,004 10,953,543
(d)
(d)
(d)
2,572,403
1,100,000
-
-
-
-
2,623,184
-
350,000
-
-
-
13,138,803
10,953,543
Number of
Shares
50,895,707
Issue
Price
$
9,599,786
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
-
-
(51,506)
54,729,004
10,933,680
22,344
$0.500
11,172
350,000
-
106,399
28,437
$0.500
14,219
3,000,000
$0.500
1,500,000
1,284,167
$0.50
642,083
-
59,413,952
(68,750)
13,138,803
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
43
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
13.
Contributed Equity (Continued)
(d) Movements in other equity securities
Details
Listed Options
Balance at 30 June 2015
Balance at 30 June 2016
Exercise of options
Balance at 30 June 2017
Unlisted Options
Balance at 30 June 2015
Exercise of options
Balance at 30 June 2016
Issue of options
Balance at 30 June 2017
Details
Performance Rights
Balance at 30 June 2015
Balance at 30 June 2016
Vesting of performance rights
Balance at 30 June 2017
(e)
Ordinary shares
Number of
Options
-
2,623,184
(50,781)
2,572,403
166,667
(166,667)
-
1,100,000
1,100,000
Number of
Rights
350,000
350,000
(350,000)
-
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
2,572,403
2,572,403
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
44
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
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 2017 and no dividends are expected to be paid in 2018.
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 2017 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
Issue of options to lead manager (note 18)(i)
Issue of options to consultants (note 18)
Vesting of performance rights (note 13(c))
Balance at the end of the year
2017
$
228,008
19,863
231,500
(106,399)
372,972
2016
$
228,008
-
-
-
228,008
(i) The amount was recognised as capital raising cost in 2016.
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
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
(10,238,557)
(9,139,717)
(1,124,909)
(1,098,840)
(11,363,466)
(10,238,557)
45
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
15.
Notes to the Cash Flow Statement
(a) Reconciliation of net cash used in operating activities
to operating loss after income tax
2017
$
2016
$
Operating loss after tax
(1,124,909)
(1,098,840)
Add non-cash items:
Share based payment
Exploration expenditure paid in shares
Changes in net assets and liabilities
Decrease/(increase) in receivables
Increase/(decrease) in payables
Increase in advances
231,500
-
-
85,000
8,299
27,182
1,328
(48,412)
(182,990)
-
Net cash used in operating activities
(856,600)
(1,245,242)
(b) Non-cash financing and investing activities
The Group did not have any non-cash financing or investing activities during the year (2016: 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
2017.
(b)
Key management personnel remunerations
Short-term employee benefits
Post-employment benefits
2017
257,693
34,712
292,405
2016
150,200
60,300
210,500
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 2017
46
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
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:
2017
Directors
Balance at
beginning of
year
Granted as
compensation
Exercised
Other
changes
(A)
Balance at
end of year
Vested and
exercisable
S Boston
R Scrimgeour
G Schwab
B Kay
287,061
245,630
-
89,668
-
-
-
-
-
-
-
-
-
-
-
-
287,061
245,630
-
287,061
245,630
-
89,668
89,668
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.
(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.
2017
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
Balance at
beginning of year
Purchased
Other changes
5,741,160
4,915,089
-
1,793,326
-
150,013
-
-
Balance at
end of year
5,741,160
5,065,102
-
-
-
-
350,000
2,143,326
47
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
16.
Key Management Personnel Compensation (Continued)
(c)
Equity instrument disclosures relating to key management personnel (Continued)
(iii)
Shareholdings (Continued)
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
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:
2017
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
2016
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 $78,840 (2016: $65,700) of which $6,570 was accrued
and outstanding at year end. Mr Boston is also a director of Raisemetrex Pty Ltd which was paid
$22,924 by the Company to provide the capital raising platform and corporate advisory services
for the Prospectus that was lodged with ASIC on 5 May 2017.
(ii) Mr Kay’s directors’ fees and consulting fees for the year were $108,445 (2016: $57,200) of which
$87,933 was accrued and outstanding at year end.
(iii) Mr Scrimgeour’s directors’ fees for the year were $52,560 (2016: $43,800).
(iv) Mr Schwab’s directors’ fees for the year were $52,560 (2016 $43,800) of which $13,140 was
accrued and outstanding at year end.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
48
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
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. During
the year 1,100,000 options exercisable at $1 each were issued to the consultants of the Company
(2016: Nil)).
Options issued
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.
2017
2016
Number of
Options
Weighted
Average
Exercise
Price
$
Number of
Options
Weighted
Average
Exercise
Price
$
Issued during the year
- Consultant options
Closing amount
1,100,000
1,000,000
$1.00
$1.00
-
-
-
-
Included in the options issued to consultant during the year is the 100,000 options exercisable at
$1.00 each issued to the lead manager on 1 August 2016, for the share placement made in April
2016. The weighted average remaining contractual life of options outstanding at the end of the
financial year was 1.47 years (2016: Nil).
2017
Issue date
Expiry date
Balance at
start of year
Number issued
during year
Number
exercised
during
year
Number
expired
during
year
Balance
at end
of year
Number
exercisable
at end of
year
7 Nov 2016 (1)
1 Aug 2016 (2)
31 Oct 2020
31 Jul 2018
-
-
1,000,000
100,000
-
-
-
-
1,000,000
100,000
1,000,000
100,000
Fair Value of options issued
The fair value at issue date was determined using a Black-Scholes option pricing model that takes
into account the exercise price, the share price at issue date and expected price volatility of the
underlying share, and the risk free interest rate for the term of the loan.
(1) The model inputs for options granted during the year ended 30 June 2017 included:
Expiry date
Type
Dividend yield (%)
Expected price volatility (%)
Risk-free interest rate (%)
Expected life of options (years)
Option exercise price ($)
Share price at grant date
Number of options issued
Fair value of options issued at grant date
recognised as an expense
31 Oct 2020
Options are granted for no consideration
-
83%
1.70%
4
$1.00
$0.50
1,000,000
$231,500
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
49
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
18.
Share based payments (Continued)
(2) The model inputs for options granted during the year ended 30 June 2017 included:
Expiry date
Type
Dividend yield (%)
Expected price volatility (%)
Risk-free interest rate (%)
Expected life of options (years)
Option exercise price ($)
Share price at grant date
Number of options issued
Fair value of options issued at grant date
recognised in equity (capital raising cost)
31 Jul 2018
Options are granted for no consideration
-
100%
1.48%
2
$1.00
$0.53
100,000
$19,863
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.
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 of the performance rights was satisfied.
Directors Shares
There were no directors shares issued in 2017.
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 2017
other than:
(a) Tenement commitments
No later than 1 year
Later than 1 year but not later than 5 years
2017
$
2016
$
24,120
-
24,120
22,750
-
22,750
2017
$
2016
$
506,500
554,855
-
-
506,500
554,855
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
50
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
21.
Financial Instruments
Notes
Floating
Interest
Rate
1 year or
less
Over 1-5
years
$
$
Non-
interest
bearing
$
Total
$
2017
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
1.25%
2,529,414
-
-
-
-
2,529,414
-
-
-
Net financial assets
2,529,414
-
-
-
-
-
-
-
-
2,529,414
66,581
66,581
66,581
2,597,995
261,427
261,427
188,259
449,686
188,259
449,686
(383,105)
2,148,309
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
Reconciliation of net financial assets to net assets
Net Financial Assets
Property, plant & equipment
Exploration expenditure
Net Assets
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
-
-
-
-
-
-
-
-
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
2017
$
2016
$
2,148,309
923,131
-
-
-
-
2,148,309
923,131
51
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
21.
Financial Instruments (continued)
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 (h) with respect to
capital risk management. The Board reviews and agrees policies for managing each of these
risks.
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 2017, 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 $25,294 (2016:
$14,606) 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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
52
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2017
23.
Contingent Liabilities and Contingent Assets
The Group does not have any contingent liabilities or contingent assets at 30 June 2017.
24.
Subsequent Events
On 31 July 2017 the prospectus dated 5 May 2017 to raise $1,500,000 was closed fully subscribed
and 1,715,833 shares were allotted at $0.50 each for $857,916. There was an interim allotment of
shares on 16 June 2017 for $642,084.
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
2017
$
2016
$
2,336,919
1,020,582
2,337,021
1,020,684
220,737
187,450
220,737
187,450
13,138,803
372,972
(11,395,491)
10,933,680
228,008
(10,328,454)
2,116,284
833,234
(1,067,037)
(1,103,561)
(1,067,037)
(1,103,561)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
53
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 2017
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 29th day of September 2017
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
54
RSM Australia Partners
Level 32, 2 The Esplanade 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
Opinion
We have audited the financial report of Catalyst Metals Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 30 June 2017, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity,
and the consolidated statement of cash flows for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies and other explanatory information, and the directors'
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its financial
performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Consolidated Entity in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and
Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant
to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
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
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key Audit Matter
How our audit addressed this matter
Valuation of share options
Refer to Note 18 in the financial statements
During the year, the Company issued unlisted
options to consultants, which were recognised as a
share based payments expense of $231,500.
Management have accounted
the options
issued in accordance with AASB 2 Share-based
Payment and determined the fair value using the
Black-Scholes valuation model.
for
We considered share based payments expense to
be a key audit matter as it is a material expense to
the Group and involves significant management
estimates and judgments when valuing the options.
Our audit procedures in relation to share based payments
expense included:
• agreeing the key terms and conditions of the options
issued to the respective agreements and/or supporting
documentation and checked each input into the
valuation model;
involving our financial modelling specialists to assess
the key assumptions, including the risk free rate and
the estimated future volatility;
•
• assessing the reasonableness of the assumptions
made regarding any vesting conditions on the
recognition of the expense during the year; and
• assessing the adequacy of the disclosures in Note 18.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2017, but does not include the financial report
and the auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no
realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of this financial
report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar2.pdf. This
description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors' report for the year ended 30 June
2017.
In our opinion, the Remuneration Report of Catalyst Metals Limited, for the year ended 30 June 2017, complies
with section 300A of the Corporations Act 2001.
Responsibilities
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.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 29 September 2017
ALASDAIR WHYTE
Partner
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
The following information was reflected in the records of the Company as at 21 September 2017.
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
152
75
20
35
5
287
45
90
71
154
63
423
38
Substantial shareholders
The following shareholders have lodged a notice of substantial shareholding in the Company.
Shareholder
Drill Investments Pty Ltd
Trapine Pty Ltd
Robin Scrimgeour
St Barbara Limited
Gavin Caudle
Kenneth Raymond Teagle
Twenty largest holders of fully paid shares
Shareholder
HSBC Custody Nominees (Australia) Limited
Drill Investments Pty Ltd
Trapine Pty Ltd
St Barbara Limited
Citicorp Nominees Pty Ltd
Toby Mountjoy
Kenneth Raymond Teagle
Chepalix Pty Ltd
Bruce Kay and Henriette Kay
Providence Gold & Minerals Pty Ltd
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11. Gavin Caudle
12. Gavin Arnold Caudle
13.
14. Gavin Arnold Caudle
15.
16.
17.
18.
19.
20.
Vestcourt Pty Ltd
Roger George Davis
John Paul Sisterson
Trent Keliher
Lindway Investments Pty Ltd
Elshaw Pty Ltd
Kimberley Downs Pty Ltd
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2017
Number of shares
%
5,615,094
5,484,135
5,015,089
4,420,833
3,873,625
3,424,294
Shares
7,356,564
5,665,094
4,600,585
4,420,833
3,159,349
2,442,870
2,068,618
2,046,875
1,863,183
1,730,349
1,500,000
1,373,625
1,147,938
1,000,000
787,500
735,500
699,731
664,975
584,375
582,096
44,430,060
9.19
8.97
8.20
7.23
6.34
5.60
%
12.03
9.27
7.53
7.23
5.17
4.00
3.38
3.35
3.05
2.83
2.45
2.25
1.88
1.63
1.29
1.20
1.14
1.09
0.96
0.95
72.68
58
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
Twenty largest holders of quoted options
Optionholder
HSBC Custody Nominees (Australia) Limited
1.
Drill Investments Pty Ltd
2.
Trapine Pty Ltd
3.
Toby Mountjoy
4.
Chepalix Pty Ltd
5.
Citicorp Nominees Pty Ltd
6.
Providence Gold & Minerals Pty Ltd
7.
Bruce Kay and Henriette Kay
8.
9.
Gavin Caudle
10. Gavin Arnold Caudle
11.
12. Gavin Arnold Caudle
13.
14.
15.
16.
17.
18.
19.
20.
John Wilson
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
Options
360,203
258,011
230,030
122,144
102,344
99,404
88,750
75,660
75,000
68,682
61,754
50,000
50,000
46,697
39,375
36,775
34,987
29,219
29,105
28,350
1,886,490
%
14.00
10.03
8.94
4.75
3.98
3.86
3.45
2.94
2.92
2.67
2.40
1.94
1.94
1.82
1.53
1.43
1.36
1.14
1.13
1.10
73.33
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:
- at $1.00 each on or before 31.07.18
- at $1.00 each on or before 31.10.20
Voluntary escrow
Holders of greater than 20% of each class of
security
Number
on issue Name of holder
Number
%
100,000 Martin Place Securities Pty Ltd
1,000,000 Maybach Consulting Pty Ltd
Ms Gabrielle Metcalf
100,000
500,000
500,000
100.0
50.0
50.0
Ordinary fully paid shares subject to voluntary escrow until 16 March 2018
Number
3,000,000
59
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
Tenement directory
Project
Tenement number
Beneficial interest
Victoria
Four Eagles
Four Eagles
Four Eagles
Pyramid
Raydarra East
Tandarra
Sebastian
Raydarra
Macorna Bore
Drummartin
EL4525
RL6422 (application)
EL5295
EL5508
EL5509
EL4897
EL5533
EL5266
EL5521
ELA6507 (application)
50%
50%
50%
50%
100%
51% (earning in via farm-in agreement)
100%
51% (earning in via farm-in agreement)
100%
100%
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.
60