ABN 54 118 912 495
ANNUAL REPORT AND FINANCIAL STATEMENTS
YEAR ENDED 30 JUNE 2019
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
21
22
23
24
25
26
45
46
49
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
1
CATALYST METALS LIMITED
CORPORATE DIRECTORY
DIRECTORS
AUDITORS
Stephen Boston (Non-Executive Chairman)
Robin Scrimgeour (Non-Executive Director)
Gary Schwab (Non-Executive Director)
Bruce Kay (Non-Executive Director)
RSM Australia Partners
Level 32/2 The Esplanade
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
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
27 September 2019. The Directors have the power to amend and reissue the financial statements.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Dear Shareholder,
The 2019 financial year saw your Company continue to be re-rated through the delivery of numerous
additional positive technical results and corporate initiatives whilst both the domestic and global markets
became more aware of the “Central Victorian Gold Rush”.
On 18 July 2018, St Barbara Limited were issued 318,528 ordinary fully paid shares at 50 cents per share
pursuant to an underwriting agreement for the shortfall from the exercise of listed options which expired
on the 30 June 2018. 100,000 additional ordinary shares were issued following the exercise of unlisted
options exercisable at $1.00 each.
On 3 September 2018, the Company announced a new zone of gold mineralisation at Cunneens
Prospect within the Four Eagles Gold Project.
On 30 October 2018, the Company announced that Diamond drilling had confirmed depth potential of
high grade gold mineralisation at the Four Eagles Gold Project.
On 28 November 2018, the annual general meeting of the Company was held in Melbourne where a new
Constitution was adopted by shareholders.
On 27 December 2018, the Company announced that the Tandarra Joint Venture Agreement had been
executed.
On 15 March 2019, the Company issued 8,680,000 ordinary fully paid shares at $1.50 to Gold Exploration
Victoria Pty Ltd (a wholly owned subsidiary of Hancock Prospecting Pty Ltd & 50% Joint Venture Partner
of the Four Eagles Gold Project) which raised $13.02 million. This resulted in GEV becoming an 11%
shareholder and our Company becoming fully funded through to 2022.
On 12 March 2019, the Company announced exceptional high grade gold mineralisation intersected at
Boyd’s Dam zone at the Four Eagles Gold Project.
On 29 April 2019, the Company announced its best ever gold assay of 1,675g/t Au at Boyd’s Dam at the
Four Eagles Gold Project.
On 17 June 2019, the Company lodged a prospectus with ASIC and ASX in respect of a non-
renounceable entitlement offer of one option for every ten shares held at a subscription price of 2 cents
per option to raise up to $157,785 before costs. Each Option will be exercisable into one fully paid share
in the Company at $2.45 each on or before 31 May 2022.
Our Technical Director Bruce Kay publicly stated that “He believed that our Company controls one of the
great gold belts of the world – which has never really been explored before”. To get a better feel for the
thinking behind this statement, I would commend all shareholders to read the detailed “Review of
Operations” section which appears in the Directors’ Report of this annual report.
In closing off on another “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, and our incredible
technical and corporate teams for everything they have done to enhance your Company in 2019, as the
Company continues to position itself to make a future major high grade gold discovery in Victoria.
Stephen Boston
Chairman
27 September 2019
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
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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 2019.
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 $16,383,072 as at 30 June 2019 (2018: $4,818,624).
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 2019 was $1,686,017 (2018:
$4,241,647).
DIVIDENDS
No dividend has been paid during or is recommended for the financial year ended 30 June 2019.
REVIEW OF OPERATIONS
The Company’s exploration program through 2018/19 focussed on its advanced gold discoveries at the
Four Eagles and Tandarra joint venture projects, while continuing to progress reconnaissance activities
throughout its prospective exploration licences. Significant developments during the financial year
included the following:
Material advancement of the Four Eagles Gold Project:
o
o
o
o
o
the progressive upgrade of understanding of the structural controls of gold mineralisation
and shapes of individual mineralised bodies within the Boyd’s Dam prospect;
including the best-ever intersection from Boyd’s Dam gold prospect (8m @ 212.3g/t Au
including 1.0m @ 1,675g/t Au);
the commencement of geotechnical, hydrogeological and environmental studies to
investigate some of the engineering practicalities of mine development at Boyd’s Dam;
the continued exploration of Boyd North mineralisation revealing multiple parallel plunging
gold-mineralised zones;
intersections in deeper diamond drilling indicating the presence and extended strike
length of repeat gold-mineralised structures beneath Boyd’s Dam; and
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
o
the intersection of gold mineralisation within the line of strike and in newly identified
structures at Pickles and Cunneens gold prospects.
Material advancement of the Tandarra Gold Project:
o
o
o
o
o
the grant of Retention Licence RL006660, providing secure title for a further ten (10) years
over the Tomorrow gold prospect and associated mineralised zones;
the formation of the Tandarra Joint Venture between JV partners Catalyst Metals Limited
and Navarre Minerals Limited
the southerly extension of the strike length of the Tomorrow gold prospect by 300 metres
and the potential for additional southerly strike extension
the confirmation by diamond drilling of multiple parallel gold-mineralised horizons at depth
beneath the Tomorrow Zone, mimicking the multiple shallow-plunging mineralised zones
which characterise the Bendigo goldfield; and
the demonstration by air core drilling of significant gold mineralisation in the southern
extension of the Macnaughtan gold-mineralised zone.
Significant reconnaissance results at Drummartin
o
Interpretation of gravity geophysical data at Drummartin has identified numerous targets
for future reconnaissance drilling.
WHITELAW BELT
The Whitelaw Belt is the structural zone thought to control the location of the Bendigo gold prospects,
which extends in a generally northerly direction within favourable Ordovician rocks beneath a covering
veneer of younger Murray Basin sediments. Similarly, parallel structural belts extend northwards from
adjacent goldfields beneath this cover; including those hosting the Fosterville and Inglewood mining
centres. (Figure 1). Catalyst has significant interests in thirteen (13) exploration licences (EL’s) and two
Retention Licences (RL’s) covering most of the known Whitelaw Belt and portions of adjacent, parallel
belts (Figure 1). The area covered totals approximately 2,100 square kilometres.
In particular, the Company’s Four Eagles and Tandarra projects, (respectively about 55 and 40 kilometres
north-north-west of Bendigo) contain potentially economic gold prospects similar in style to those of the
historic Bendigo goldfield (Figure 1). In addition to these gold prospects identified and outlined by
Catalyst, these structural zones remain untested or at best sparsely tested and highly prospective for the
discovery of new gold prospects of the Bendigo and Fosterville styles.
EXPLORATION RESULTS
All available detailed exploration data has been released during the 2019 financial year in quarterly
reports, presentations and special ASX announcements and the reader is referred to this information in
addition to the brief summary presented in this report.
FOUR EAGLES GOLD PROJECT (RL006422, EL5295, EL5508, EL006859, EL006887)
The Four Eagles Gold Project is a joint venture between Catalyst 100% owned subsidiary Kite Gold Pty Ltd
and Gold Exploration Victoria Pty Ltd (GEV) (a wholly owned subsidiary of Hancock Prospecting Pty Ltd).
The project is managed by Catalyst and is jointly funded (50:50) by Catalyst and GEV within the Four
Eagles Joint Venture.
The Four Eagles Joint Venture includes RL006422 and several adjoining EL’s. The RL covers an envelope
of gold mineralisation about 6 kilometres long and 2.5 kilometres wide with high grade gold occurring in
at least three structural zones trending roughly north-south (Boyd’s Dam-Boyd North, Hayanmi and Pickles;
as detailed on Figure 2). Additional prospective structural zones are shown including the Cunneens
Prospect to the west. They have been identified by interpretation of detailed gravity geophysical datasets
but are as yet only lightly explored.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 1: Whitelaw and Adjacent Gold Belts Showing Catalyst Managed Tenement Holdings
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
At Boyd’s Dam, diamond drilling and reverse circulation drilling results improved definition of the
continuity, shapes and structural controls of the mineralisation. At depth, diamond drill holes continued
the definition of gently south-plunging mineralised zones parallel to shallower mineralisation, as illustrated
in longitudinal projection (Figure 3). Assays are outstanding for the most recent holes, potentially
extending deeper mineralisation at Boyd’s Dam to the south. Amongst the intersections in hand was the
richest yet recorded from the field – 8m @ 212.3g/t Au from 84 metres in FERC236, including
1m @ 1,675g/t Au. This intercept included an exceptional quantity of coarse-grained visible gold as is
expected occasionally in this style of mineralisation (Plate 1).
At Boyd North, ongoing reverse circulation drilling yielded intersections of high grade gold and improved
definition of prospect outline, including multiple parallel plunging zones (Figure 2).
Preliminary geotechnical, hydrogeological and ecological investigations have been initiated over Boyd’s
Dam/Boyd North and Hayanmi and adjacent areas to assess engineering and permitting priorities to be
incorporated in conceptual mining studies.
Elsewhere in the Four Eagles Gold Project (Figure 3), assays are awaited from four diamond drill holes, the
first completed at Pickles Prospect, which revealed structural complexity and geological indications of
multiple mineralised features. Additional traverses of reconnaissance air core drilling at Cunneens
Prospect encountered gold mineralisation, defining a second, parallel mineralised zone and enhancing
the overall prospectivity of this still lightly-tested feature.
Figure 2: Boyd’s Dam - Boyd North longitudinal projection showing potential south plunging shoots
of gold mineralisation. Significant drill intersections from 2018 and 2019 are highlighted in green
and blue respectively.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 3: Four Eagles Gold Project showing gold prospects
and areas of DD, RC and Air Core Drilling in 2018-19.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Plate 1: Coarse and fine grained gold panned from FERC 236 at 89 metres depth
(1.0m @ 1,675g/t Au). Sample contains abundant quartz and arsenopyrite
TANDARRA GOLD PROJECT (RL006660)
Following the completion of $3.0 million earn-in expenditure by Catalyst late in 2017-18, the parties in
accord with their agreement formed the Tandarra Gold Project as a joint venture between Catalyst 100%
owned subsidiary Kite Operations Pty Ltd and Navarre Minerals Ltd (Navarre). The project is managed by
Catalyst and is jointly funded (51:49) by Catalyst and Navarre.
A second significant milestone was accomplished with the grant over the Project’s land of Retention
Licence 006660 in place of the former EL4897. The 10-year life of RL006660 provides a secure title within
which the joint venture can continue the exploration, evaluation and economic assessment of the
Tomorrow gold prospect and adjacent prospects.
At the main Tomorrow gold prospect, reverse circulation drilling improved definition of the controlling
structures and mineralised outlines and confirmed an approximately 300 metre increase in strike length to
the south of previously outlined mineralisation (Figures 4 & 5). The extension remains open to the south.
A diamond drilling program was completed to test shallow plunging gold prospects at depth below
Tomorrow Zone, identified in 2017-18 and illustrated in Figure 5. Geologically, these appear to be
confirmed (assay results pending).
The southern end of the Macnaughtan gold-mineralised zone was significantly upgraded by gold
intersected in two of three scout air core drilling traverses.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 4: Tandarra Joint Venture Project - Plan View of Tomorrow and Macnaughtan Gold Zones
showing location and results of 2019 air core and reverse circulation drill holes.
.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
Figure 5: Longitudinal Projection of Tomorrow Zone Gold Prospect showing areas of RC
and DD Drilling in 2019. Significant intersections from 2019 are highlighted in blue.
OTHER BENDIGO REGION EXPLORATION
Early-stage reconnaissance exploration was undertaken on several EL’s in the Company’s 100% owned
or partner-owned tenements. In most cases this work provided foundations for more extensive or detailed
surveys in 2019-20 and beyond, and where significant was reported in progressive reports to ASX and
shareholders.
The most important results included:
The intersection of previously unknown gold mineralisation in scout RAB drilling at the northern
end of the Golden Camel exploration licences (Figure 1)
The completion of initial limited scout air core drill traverses across several targets in the western
part of Drummartin (EL006670), yielding modest geological and geochemical encouragement;
followed by an extensive detailed gravity survey over the eastern part of the exploration licence
and interpretation of resulting datasets to identify significant anomalies and drilling targets, along
strike to the north of the well-documented gold mineralisation at Lockington (Figure 1); and
The drill-testing of gravity targets within the Macorna Bore and adjacent exploration licence at
the northern end of the Whitelaw tenement block, with results confirming well-defined zones of
arsenic anomalism, commonly associated with gold mineralisation elsewhere in the region.
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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
SUBSEQUENT EVENTS
In June 2019 the Company lodged a prospectus for an Entitlements Issue for 1 option for every 10 shares
held to raise $157,785 by each applicant paying $0.02 per option. The options are exercisable at $2.45
and expire on 31 May 2022. In August and September the Company advised that 7,889,250 options had
been allotted, to raise the full amount of $157,785.
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:
None
Interests in securities:
190,150 Ordinary Shares & 19,015 Listed Options
Direct:
Indirect:
5,609,727 Ordinary Shares & 449,462 Listed Options
(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
5,310,732 Ordinary Shares & 531,074 Listed Options
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:
Nil
Direct:
Indirect: Nil
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
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:
None
Interests in securities:
Direct:
Indirect: Nil
2,187,169 Ordinary Shares & 205,301 Listed Options
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
5
5
5
5
5
5
5
5
-
-
-
-
-
-
-
-
Stephen Boston
Robin Scrimgeour
Gary Schwab
Bruce Kay
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
2019. The Group’s operations are subject to State and Federal laws and regulation concerning the
environment.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
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 8,378,648 (2018: 1,000,000) unissued ordinary shares under option.
There are 1,000,000 options exercisable at $1.00 each on or before 31 October 2020 and 7,378,648 options
exercisable at $2.45 each on or before 31 May 2022.
No person entitled to exercise the options has any right by virtue of the option to participate in any share
issue of the parent entity or any other corporation.
REMUNERATION REPORT (AUDITED)
This report sets out the current remuneration arrangements for Directors and executives of the Group. For
the purposes of this report, key management personnel is defined as those persons having authority and
responsibility for planning, directing and controlling major activities of the Group, including any Director
of the Group, and includes the executives in the consolidated entity receiving the highest remuneration.
The information provided in this report includes remuneration disclosures that are required under
Accounting Standard AASB 124 Related Party Disclosures.
Principles used to determine the nature and amount of remuneration
Directors and executives remuneration
Overall remuneration policies are determined by the Board and are adapted to reflect competitive
market and business conditions. Within this framework, the Board considers remuneration policies and
practices generally, and determines specific remuneration packages and other terms of employment for
any executive Directors and senior management. Executive remuneration and other terms of
employment are reviewed annually by the Board having regard to performance, relevant comparative
information and expert advice.
The Group’s remuneration policy for any Executive Directors and senior management is designed to
promote superior performance and long term commitment to the Group. Remuneration packages are
set at levels that are intended to attract and retain executives capable of managing the Group’s
operations.
Executive Directors and senior executives receive a base remuneration which is market related, together
with performance based remuneration linked to the achievement of pre-determined milestones and
targets.
The Group’s remuneration policies are designed to align executives’ remuneration with shareholders’
interests and to retain appropriately qualified executive talent for the benefit of the Group. The main
principles of the policy are:
-
-
reward reflects the competitive market in which the Group operates; and
individual reward should be linked to performance criteria.
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.
-
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
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 2018 AGM, 100% of the votes received supported the adoption of the remuneration report for the
year ended 30 June 2018. The company did not receive any specific feedback at the AGM regarding its
remuneration practices.
Details of Remuneration for Year Ended 30 June 2019
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.
2019
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
180,800
59,130
54,000
154,448
448,378
-
-
-
-
-
17,176
-
5,130
24,873
47,179
-
-
-
-
-
197,976
59,130
59,130
179,321
495,557
No performance based remuneration was paid to the Directors during the year.
In 2019, Mr Kay received $54,000 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. Furthermore in 2019, Mr Boston received $80,000 per annum in
Directors’ fees and was paid extra consulting fees for managing the Company.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
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CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
2018
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
165,800
59,130
54,000
116,565
395,495
-
-
-
-
-
15,751
-
5,130
16,344
37,225
-
-
-
-
-
181,551
59,130
59,130
132,909
432,720
In 2018, Mr Kay received $54,000 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. Furthermore in 2018, Mr Boston received $80,000 per annum in
Directors’ fees and was paid extra consulting fees for managing the Company.
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 2017, Non-executive Directors
receive remuneration of $54,000 per annum plus statutory superannuation, whilst the Chairman receives
remuneration of $80,000 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 $6,000 per month.
SHARE-BASED COMPENSATION
Shares
No shares were issued as compensation during the financial year (2018: 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.
During the financial year no options were issued as compensation (2018: Nil).
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 (2018: Nil).
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
16
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
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:
2019 – Options Holdings
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Balance at
beginning of
year
Granted as
compensation
Exercised
Other
changes
Balance at
end of
year
Vested and
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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.
2019 – Ordinary Share Holdings
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Balance at
beginning of year
Purchased
Other changes
5,835,974
5,310,732
-
2,232994
-
-
-
-
-
-
-
-
Balance at
end of year
5,835,974
5,310,732
-
2,232,994
Performance Rights
The number of performance rights in the Company held during the financial year by each personally
related parties, are set out below:
2019 – Performance Rights Holdings
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Balance at
beginning of
year
Granted as
compensation
Vested
Other
changes
Balance at
end of year
Vested and
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL AND THEIR RELATED PARTIES
Mr Boston is also a Director of Raisemetrex Pty Ltd which was paid $30,000 (2018: $93,000) by the Company
to provide the capital raising platform and corporate advisory services.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
17
CATALYST METALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (Continued)
CONSEQUENCES OF PERFORMANCE ON SHAREHOLDER WEALTH
In considering the Group performance and benefits for shareholder wealth, the factors that are
considered to affect total shareholder return are summarised below:
2019
2018
2017
2016
2015
Net loss for the period
(1,686,017)
(4,241,647)
(1,124,909)
(1,098,840)
(240,105)
Share price at financial year
end ($)
Basic loss per share (cents per
share)
END OF REMUNERATION REPORT
1.96
1.50
(2.3)
(6.5)
0.50
(2.0)
0.59
(2.1)
0.42
(0.5)
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.
AUDITOR
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
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 2019.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
18
CATALYST METALS LIMITED
DIRECTORS’ REPORT
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 2019 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
27 September 2019
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
19
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Catalyst Metals Limited for the year ended 30 June 2019, 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: 27 September 2019
ALASDAIR WHYTE
Partner
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2019
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
2019
$
2018
$
7
8
9
10
11
12
15,897,453
4,954,122
132,672
590,251
16,030,125
5,544,373
7,942
10,202
1,956,481
-
1,964,423
10,202
17,994,548
5,554,575
1,414,495
196,981
1,611,476
735,951
-
735,951
1,611,476
735,951
16,383,072
4,818,624
13
33,301,230
20,050,765
14(a)
372,972
372,972
14(b)
(17,291,130)
(15,605,113)
TOTAL EQUITY
16,383,072
4,818,624
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 2019
21
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the Year Ended 30 June 2019
Other income
Expenses
Professional fees
Administration, occupancy and travel costs
Personnel
Corporate
Exploration and evaluation expenditure
Loss before income tax expense from continuing operations
Income tax expense
Loss after income tax from continuing operations
Other comprehensive income
Total comprehensive loss for the year
Total comprehensive loss attributable to
members of the Parent entity
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)
Note
2019
$
2018
$
3
368,398
191,224
(323,201)
(194,623)
(166,559)
(206,132)
(390,610)
(362,717)
(256,279)
(169,127)
(917,766)
(3,500,272)
(1,686,017)
(4,241,647)
-
-
(1,686,017)
(4,241,647)
-
-
(1,686,017)
(4,241,647)
(1,686,017)
(4,241,647)
(2.3)
(2.3)
(6.5)
(6.5)
4
6
5
5
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read
in conjunction with the accompanying notes.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
22
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended 30 June 2019
Contributed
Equity
Accumulated
losses
$
$
Share-based
payments
reserve
$
Total
$
Balance at 30 June 2017
13,138,803
(11,363,466)
372,972
2,148,309
Total comprehensive loss
for the year
Transactions with owners
in their capacity as
owners:
Issue of shares
Share issue expenses
-
(4,241,647)
6,984,854
(72,892)
-
-
-
-
-
Balance at 30 June 2018
20,050,765
(15,605,113)
372,972
Total comprehensive loss
for the year
Transactions with owners
in their capacity as
owners:
Issue of shares
Share issue expenses
-
(1,686,017)
13,279,264
(28,799)
-
-
-
-
-
(4,241,647))
6,984,854
(72,892)
4,818,624
(1,686,017)
13,279,264
(28,799)
Balance at 30 June 2019
33,301,230
(17,291,130)
372,972
16,383,072
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 2019
23
CATALYST METALS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2019
Note
2019
$
2018
$
Cash Flows from Operating Activities
Payments for exploration and evaluation
(1,226,041)
(3,569,703)
Payments to suppliers, contractors and employees
(552,455)
(931,805)
Research and development tax offsets received
Other income
Interest received
-
144,341
303,165
65,233
-
46,883
Net cash flows used in operating activities
15
(1,410,098)
(4,310,284)
Cash Flows from Investing Activities
Payments for property, plant and equipment
-
(10,996)
Payments for exploration and evaluation
(1,259,991)
-
Net cash flows used in investing activities
(1,259,991)
(10,996)
Cash Flows from Financing Activities
Proceeds from issue of shares and other equity securities
13,279,264
6,984,854
Share issue expenses
(28,799)
(72,892)
Proceeds from Entitlement Issue Prospectus not allotted
12,073
-
Joint venture exploration advances received
12
2,800,370
1,005,137
Joint venture exploration advances expended
(2,449,488)
(1,171,111)
Net cash flows provided from financing activities
13,613,420
6,745,988
Net increase in cash and cash equivalents
10,943,331
2,424,708
Cash and cash equivalents at the beginning of the
financial year
4,954,122
2,529,414
Cash and cash equivalents at the end of the financial year
7
15,897,453
4,954,122
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 2019
24
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
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.
The adoption of AASB 9 Financial Instruments from 1 July 2018 has not affected balances of the
consolidated entity because no financial instrument held by the consolidated entity is recognised or
measured differently by this standard. The consolidated entity has no expected credit losses on
financial instruments.
The adoption of AASB 15 Revenue from Contracts with Customers from 1 July 2018 has not affected
balances of the consolidated entity because no revenue or potential revenue of the consolidated
entity is recognised or measured differently by this standard.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory
have not been early adopted.
(b)
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian
Accounting Standards and Interpretations issued by the Australian Accounting Standards Board
('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial
statements also comply with International Financial Reporting Standards as issued by the International
Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where
applicable, the revaluation of available-for-sale financial assets, financial assets and liabilities at fair
value through profit or loss, investment properties, certain classes of property, plant and equipment
and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It
also requires management to exercise its judgement in the process of applying the consolidated
entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas
where assumptions and estimates are significant to the financial statements, are disclosed in note 2.
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 2019 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.
(c)
(d)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
25
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(d)
Principles of consolidation (continued)
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.
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 from contracts with customers is recognised based on the transfer of promised goods or
services to customers with an amount that reflects the consideration to which the Group expects to
be entitled to in exchange for those goods or services.
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)
Trade and other receivables
Trade receivables, loans, and other receivables are recognised at amortised cost, less any
allowance for expected credit losses.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
26
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(j)
Financial instruments
Recognition and Initial Measurement
Financial assets are measured at amortised cost if they are held within a business model whose
objective is to hold assets in order to collect contractual cash flows which arise on specified dates and
are solely principal and interest. All other financial instrument assets are classified and measured at fair
value through profit or loss unless the entity makes an irrevocable election on initial recognition to
present gains and losses on equity instruments (that are not held-for-trading) in other comprehensive
income.
Financial assets may be impaired based on an expected credit loss model to recognise an allowance.
Such impairment is measured with a 12-month expected credit loss model unless the credit risk on a
financial instrument has increased significantly since initial recognition in which case the lifetime
expected credit loss model is adopted
For financial liabilities, the portion of the change in fair value that relates to the Group’s credit risk is
presented in other comprehensive income.
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.
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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
27
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(m)
(n)
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.
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.
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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
28
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Share-based payments (continued)
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.
(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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
29
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(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.
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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
30
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(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.
(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.
(v)
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 2019. 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 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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
31
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
Management have estimated there will be no material impact from the adoption of this standard.
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 2019
32
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
2019
$
2018
$
3.
Other income
Research and development tax offset recovery
-
144,341
Grant funding
Administration recovery fees
Interest received
4.
Expenses
Loss before income tax includes the following specific
expenses:
Depreciation
Directors fees
Superannuation expense
186,527
116,638
65,233
368,398
-
-
46,883
191,224
2,260
280,350
821
794
362,717
-
Exploration and evaluation expenditure (refer note 1(k))
917,766
3,500,272
5.
Earnings per Share
2019
No. of Shares
2018
No. of Shares
Weighted average number of ordinary shares for basic and
diluted earnings per share
72,734,434
64,957,128
6.
Income tax
Loss before tax
2019
$
2018
$
(1,686,017)
(4,241,647)
Prima facie tax on operating loss before income tax at 27.5%
463,655
1,166,453
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
Unrecognised deferred tax
(73,389)
(20,841)
(390,266)
(1,145,612)
-
-
The Group has $16,332,042 (2018: $14,912,895) 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 $4,491,312 (2018: $4,101,046), 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.
33
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
7.
Cash and cash equivalents
Cash at bank
Cash on deposit
2019
$
2018
$
15,787,453
4,894,122
110,000
60,000
15,897,453
4,954,122
The cash at bank includes $1,679,572 (2018: $16,818) held in trust by Catalyst’s subsidiaries, Kite
Gold Pty Ltd (50% advanced by Gold Exploration Victoria Pty Ltd as funds provided in advance
for exploration expenditure on the Four Eagles Gold Project joint venture) and Tandarra
Management Pty Ltd (49% advanced by Navarre Minerals Limited as funds provided in advance
for exploration expenditure on the Tandarra Gold Project joint venture).
8.
Trade and other receivables
GST receivable
Receivable from Gold Exploration Victoria Pty Ltd (note 12)
2019
$
132,672
-
132,672
2018
$
424,277
165,974
590,251
Fair value and credit risk
Due to the short term nature of the receivables, their carrying value is assumed to approximate
their fair value.
9.
Property, plant and equipment
Year ended 30 June 2019
Opening net book amount 1 July 2018
Closing net book amount 30 June 2019
At 30 June 2019
Cost
Accumulated depreciation
Net book amount
Year ended 30 June 2018
Opening net book amount 1 July 2017
Closing net book amount 30 June 2018
At 30 June 2018
Cost
Accumulated depreciation
Net book amount
Computer
equipment
$
Furniture, fittings
and equipment
$
416
265
21,055
(20,790)
265
-
416
21,055
(20,639)
416
9,786
7,677
22,115
(14,438)
7,677
-
9,786
22,115
(12,329)
9,786
Total
$
10,202
7,942
43,170
(35,228)
7,942
-
10,202
43,170
(32,968)
10,202
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
34
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
10.
Exploration and evaluation expenditure
Opening balance
Additions (refer note 1(k))
Closing balance
2019
$
-
1,956,481
1,956,481
2018
$
-
-
-
The ultimate recoupment of balances carried forward in relation to areas of interest still in the
exploration or evaluation phase is dependent on successful development, and commercial
exploitation, or alternatively sale of the respective areas. The Group conducts impairment testing
when indicators of impairment are present at the reporting date.
11.
Trade and other payables
Current Payables
Trade creditors
Accruals
2019
$
1,001,372
413,123
1,414,495
2018
$
574,327
161,624
735,951
Included in the current payables is an aggregate amount of $437,984 (2018: $182,792) incurred in
relation to the Four Eagles Gold Project and Tandarra Gold Project which is payable by Gold
Exploration Victoria Pty Ltd and Navarre Mineral Limited.
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.
12.
Advances
Advances from applicants to Prospectus
Opening Balance of Advance from Joint Venture Partners
Advances received from Joint Venture Partners
Exploration expenditure
Closing Balance of Advance/(Receivable) from Joint
Venture Partners (note 8)
2019
$
12,073
2018
$
-
(165,974)
2,800,370
188,259
1,005,137
(2,449,488)
(1,359,370)
184,908
196,981
(165,974)
(165,974)
The (receivable)/advance from Joint Venture Partners relates to monies (receivable)/advanced
(from)/to Kite Gold Pty Ltd and Kite Operations Pty Ltd for their contribution to exploration
expenditure on the Four Eagles Gold Project and Tandarra Gold Project.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
35
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
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 2017
Issue of shares –
Prospectus
Issue of shares –
Share Placement
Issue of shares –
Exercise of listed options
Capital raising expenses
Balance at 30 June 2018
Issue of shares –
Exercise of listed options
Issue of shares –
Exercise of unlisted options
Issue of shares –
Share Placement
Capital raising expenses
Balance at 30 June 2019
Note
2019
Number
2019
$
2018
Number
2018
$
13(c)
78,892,444 33,301,230
69,793,916 20,050,765
18
18
18
-
1,100,000
-
-
-
-
-
1,100,000
-
-
-
-
33,301,230
20,050,765
Number of
Shares
59,413,952
Issue
Price
$
13,138,803
1,715,833
$0.50
857,916
6,410,256
$0.78
5,000,000
2,253,875
$0.50
1,126,938
-
-
(72,892)
69,793,916
20,050,765
318,528
$0.50
159,264
100,000
$1.00
100,000
8,680,000
$1.50
13,020,000
-
-
(28,799)
78,892,444
33,301,230
(d) Ordinary shares
On a show of hands, every member present in person or by proxy shall have one vote and,
upon a poll, each share shall have one vote.
(e) 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.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
36
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
13.
Contributed Equity (Continued)
(e) Capital risk management (continued)
The entity does not have a defined share buy-back plan.
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.
(f)
Details of subsidiaries
Details of the Group’s subsidiaries at 30 June 2019 are:
Name of subsidiary
Principal activity
Place of
incorporation
and
operation
Silkfield Holdings Pty Ltd Mineral Exploration
Australia
Kite Gold Pty Ltd
Mineral Exploration
Australia
Kite Operations Pty Ltd Mineral Exploration
Australia
Tandarra
Management Pty Ltd1
Mineral Exploration
Australia
Proportion of ownership interest
and voting power held
2019
100%
100%
100%
100%
2018
100%
100%
100%
-
-
Nomad Metals Pty Ltd2 Mineral Exploration
Australia
100%
1 On 29 October 2018, the Company established a wholly owned subsidiary, Tandarra Management Pty Ltd in
Australia.
2 On 10 August 2018, the Company established a wholly owned subsidiary, Nomad Metals Pty Ltd in Australia.
14.
Reserves & Accumulated Losses
(a)
Reserves
Share-based payments reserve
Balance at the beginning of the year
Movements during the year
Balance at the end of the year
2019
$
2018
$
372,972
372,972
-
-
372,972
372,972
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
(15,605,113)
(12,363,466)
(1,686,017)
(4,241,647)
(17,291,130)
(15,605,113)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
37
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
15.
Notes to the Cash Flow Statement
(a) Reconciliation of net cash used in operating activities
to operating loss after income tax
2019
$
2018
$
Operating loss after tax
(1,686,017)
(4,241,647)
Add non-cash items:
Depreciation
Changes in net assets and liabilities
(Increase)/decrease in receivables
Increase in payables
2,260
794
291,605
(17,946)
(355,696)
286,265
Net cash used in operating activities
(1,410,098)
(4,310,284)
(b) Non-cash financing and investing activities
The Group did not have any non-cash financing or investing activities during the year (2018: 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
2018.
(b)
Key management personnel remunerations
Short-term employee benefits
Post-employment benefits
2019
448,378
47,179
495,557
2018
395,495
37,225
432,720
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 2019
38
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
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:
2019
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
2018
Directors
Balance at
beginning of
year
-
-
-
-
Balance at
beginning of
year
S Boston
R Scrimgeour
G Schwab
B Kay
287,061
245,630
-
89,668
Granted as
compensation
Exercised
Other
changes
Balance at
end of year
Vested and
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Granted as
compensation
Exercised
Other
changes
Balance at
end of year
Vested and
exercisable
-
-
-
-
(240,659)
(245,630)
-
(89,668)
(46,402)
-
-
-
-
-
-
-
-
-
-
-
(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.
2019
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
Balance at
beginning of year
Purchased
Other changes
5,835,974
5,310,732
-
2,232,994
-
-
-
-
-
-
-
-
Balance at
end of year
5,835,974
5,310,732
-
2,232,994
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
39
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
16.
Key Management Personnel Compensation (Continued)
(c)
Equity instrument disclosures relating to key management personnel (Continued)
(iii)
Shareholdings (Continued)
2018
Directors
S Boston
R Scrimgeour
G Schwab
B Kay
17.
Related Party Disclosures
Balance at
beginning of year
Purchased
Other changes
5,741,160
5,065,102
-
2,143,326
240,659
245,630
-
89,668
(145,845)
-
-
-
Balance at
end of year
5,835,974
5,310,732
-
2,232,994
Key Management Personnel
(i) Mr Boston’s Directors’ fees and consulting fees for the year were $197,976 (2018: $181,551) of
which $16,498 was accrued and outstanding at year end. Mr Boston is also a Director of
Raisemetrex Pty Ltd which was paid $30,000 by the Company to provide the capital raising
platform and corporate advisory services.
(ii) Mr Kay’s Directors’ fees and consulting fees for the year were $179,321 (2018: $132,909).
(iii) Mr Scrimgeour’s Directors’ fees for the year were $59,130 (2018: $59,130).
(iv) Mr Schwab’s Directors’ fees for the year were $59,130 (2018 $59,130) of which $14,782 was
accrued and outstanding at year end.
All transactions were made on normal commercial terms and conditions and at market rates.
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 no options were issued (2018: 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.
2019
2018
Weighted
Average
Exercise
Price
$
Number of
Options
Weighted
Average
Exercise
Price
$
$1.00
-
$1.00
$1.00
1,100,000
-
-
1,100,000
$1.00
-
-
$1.00
Number of
Options
1,100,000
-
(100,000)
1,000,000
Opening amounts
Issued during the year
Exercised during the year
Closing amount
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
40
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
18.
Share based payments (Continued)
2019
Issue date
Expiry date
Balance at
start of
year
7 Nov 2016
1 Aug 2016
31 Oct 2020
31 Jul 2018
1,000,000
100,000
2018
Issue date
Expiry date
Balance at
start of
year
7 Nov 2016
1 Aug 2016
31 Oct 2020
31 Jul 2018
1,000,000
100,000
Exercise
Price
$1.00
$1.00
Exercise
Price
$1.00
$1.00
Number
issued
during
year
Number
exercised
during
year
Number
expired
during
year
Balance
at end of
year
Number
exercisable
at end of
year
-
-
-
(100,000)
- 1,000,000
-
-
1,000,000
-
Number
issued
during
year
Number
exercised
during
year
Number
expired
during
year
Balance
at end of
year
Number
exercisable
at end of
year
-
-
-
-
- 1,000,000
-
100,000
1,000,000
100,000
The weighted average share price during the financial year was $1.77 (2018: $1.01).
The weighted average remaining contractual life of options outstanding at the end of the financial
year was 1.77 years (2018: 1.01 years).
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”), 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.
There were no Performance Rights issued in 2019 (2018: Nil).
Directors Shares
There were no Directors shares issued in 2019 (2018: Nil).
19.
Auditor’s Remuneration
Audit or review of the financial statements
Other services
20.
Commitments
There were no outstanding commitments, which are not
disclosed in the financial statements as at 30 June 2019
other than:
(a) Tenement commitments
No later than 1 year
Later than 1 year but not later than 5 years
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
2019
$
26,800
-
26,800
2018
$
24,200
-
24,200
2019
$
2018
$
1,452,600
828,295
-
-
1,452,600
828,295
41
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
21.
Financial Instruments
Notes
Floating
Interest
Rate
1 year or
less
$
Over
1-5
years
$
Non-interest
bearing
Total
$
$
2019
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
0.8%
15,897,453
-
-
-
-
15,897,453
-
-
-
Net financial assets
15,897,453
2018
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%
4,954,122
-
-
-
-
4,954,122
-
-
-
Net financial assets
4,954,122
Reconciliation of net financial assets to net assets
Net Financial Assets
Property, plant & equipment
Exploration expenditure
Net Assets
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15,897,453
132,672
132,672
132,672
16,030,125
1,414,495
1,414,495
196,981
196,981
1,611,476
1,611,476
(1,478,804)
14,418,649
-
4,954,122
590,251
590,251
590,251
5,544,373
735,951
735,951
-
-
735,951
735,951
(145,700)
4,808,422
2019
$
2018
$
14,418,649
4,808,422
7,942
1,956,481
16,383,072
10,202
-
4,818,624
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
42
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
21.
Financial Instruments (Continued)
Market Risks
Interest rate risks
The Group’s exposure to the risks of changes in market interest rates relates primarily to the Group’s
short-term deposits with a floating interest rate. These financial assets with variable rates expose the
Group to cash flow interest rate risk. All other financial assets and liabilities in the form of receivables
and payables are non-interest bearing. The Group does not engage in any hedging or derivative
transactions to manage interest rate risk.
Interest rate sensitivity
At 30 June 2019, 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 $158,975 (2018:
$49,541) lower/higher, mainly as a result of lower/higher interest income from cash and cash
equivalents.
A sensitivity of 100 basis points has been selected as this is considered reasonably possible in the
current economic environment. Based on the sensitivity analysis only interest revenue from variable
rate deposits and cash balances are impacted resulting in a decrease or increase in overall
income.
Credit risk
The maximum exposure to credit risk at balance date is the carrying amount (net of provision of
doubtful debts) of those assets as disclosed in the balance sheet and notes to the financial
statements. The Group has adopted a policy of only dealing with creditworthy counterparties and
obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss
from defaults. The Group’s exposure and the credit ratings of its counterparties are continuously
monitored and the aggregate value of transactions concluded is spread amongst approved
counterparties.
Liquidity risk
The responsibility for liquidity risk management rests with the Board of Directors. The Group
manages liquidity risk by maintaining sufficient cash or credit facilities to meet the operating
requirements of the business and investing excess funds in highly liquid short term investments.
22.
Segment Information
The Group operates predominantly in one business segment and in one geographical location.
The operations of the Group consist of mineral exploration, within Australia.
23.
Contingent Liabilities and Contingent Assets
The Group does not have any contingent liabilities or contingent assets at 30 June 2019
24.
Subsequent Events
In June 2019 the Company lodged a prospectus for an Entitlements Issue for 1 option for every 10
shares held to raise $157,785 by each applicant paying $0.02 per option. The options are
exercisable at $2.45 and expire on 31 May 2022. In August and September the Company advised
that 7,889,250 options had been allotted, to raise the full amount of $157,785.
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
43
CATALYST METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2019
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
2019
$
2018
$
14,223,409
4,953,047
14,231,351
4,963,249
503,735
201,630
503,735
201,630
33,301,230
372,972
(19,946,586)
20,050,765
372,972
(15,662,120)
13,727,616
4,761,619
(4,284,466)
(4,266,629)
Total comprehensive loss
(4,284,466)
(4,266,629)
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
44
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 2019
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 27th day of September 2019
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2019
45
Level 32, Exchange Tower, 2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
RSM Australia Partners
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 2019, 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 2019 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
Capitalised Exploration and Evaluation Expenditure
Refer to Note 10 in the Financial Statements
The Group has capitalised exploration and
evaluation expenditure with a carrying value of
$1,956,481 as at 30 June 2019.
Our audit procedures included:
Ensuring that the right to tenure of the area of interest
was current;
We considered this to be a key audit matter due to
the significant management judgments involved in
assessing the carrying value of the asset including:
Determination of whether the exploration and
evaluation expenditure can be associated with
finding specific mineral resources and the basis
on which that expenditure is allocated to an
area of interest;
Assessing whether
of
impairment are present and if so, judgement
applied
to determine and quantify any
impairment loss; and
indicators
any
Assessing whether exploration activities have
reached a stage at which the existence of
economically recoverable reserves may be
determined.
Agreeing a sample of additions
to supporting
documentation and ensuring the amounts are capital
in nature and relate to the area of interest;
Enquiring with management and reviewing budgets
and other documentation as evidence that active and
significant operations in, or relation to, the area of
interest will be continued in the future;
Assessing and evaluating management’s assessment
of whether indicators of impairment existed at the
reporting date;
Assessing that the impairment expensed recognised
for the year ended was appropriately calculated; and
Through discussions with
the management and
review of the Board Minutes, ASX announcements
relevant documentation, assessing
and other
management’s
exploration
activities have not yet progressed to the stage where
the existence or otherwise of economically
recoverable reserves may be determined.
determination
that
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 2019, 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
2019.
In our opinion, the Remuneration Report of Catalyst Metals Limited, for the year ended 30 June 2019, 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: 27 September 2019
ALASDAIR WHYTE
Partner
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
The following information was reflected in the records of the Company as at 18 September 2019.
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
Fully paid
shares
Number of holders
Quoted
options
Unlisted
options
169
96
30
40
13
348
-
-
-
-
2
2
232
274
99
195
64
864
69
Substantial shareholders
The following shareholders have lodged a notice of substantial shareholding in the Company.
Shareholder
St Barbara Limited
Gold Exploration Victoria Pty Ltd
Drill Investments Pty Ltd
Trapine Pty Ltd
Robin Scrimgeour
Twenty largest holders of fully paid shares
Shareholder
1.
2.
3.
4.
5.
6.
7.
8.
9.
St Barbara Limited
Gold Exploration Victoria Pty Ltd
HSBC Custody Nominees (Australia) Limited
Drill Investments Pty Ltd
Citicorp Nominees Pty Ltd
Trapine Pty Ltd
Toby Mountjoy
Invia Custodian Pty Ltd
Bruce Kay and Henriette Kay
10.
Providence Gold & Minerals Pty Ltd
11. Gavin Arnold Caudle
12.
Kimberley Downs Pty Ltd
13. Gavin Arnold Caudle
14. Gavin Caudle
15.
16.
17.
18.
19.
Roger George Davis
John Paul Sisterson
Vestcourt Pty Ltd
Lindway Investments Pty Ltd
Elshaw Pty Ltd
20. Winthrop Cafe Pty Ltd
Catalyst Metals Limited ABN 54 118 912 495 Annual Report 2018
Number of shares
%
11,149,617
8,680,000
5,923,105
5,799,877
5,310,731
Shares
11,149,617
8,680,000
8,431,685
6,175,000
6,025,950
4,684,770
2,548,139
2,066,875
1,998,843
1,537,849
1,373,625
1,194,635
1,000,000
897,092
772,275
699,731
639,000
613,594
545,999
412,125
14.13
11.00
7.51
7.35
6.73
%
14.13
11.00
10.69
7.83
7.64
5.94
3.23
2.62
2.53
1.95
1.74
1.51
1.27
1.14
0.98
0.89
0.81
0.78
0.69
0.52
61,446,804
77.89
49
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
Twenty largest holders of quoted options
Optionholder
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
St Barbara Limited
Gold Exploration Victoria Pty Ltd
HSBC Custody Nominees (Australia) Limited
Drill Investments Pty Ltd
Citicorp Nominees Pty Ltd
Trapine Pty Ltd
Toby Mountjoy
Gavin Arnold Caudle
Invia Custodian Pty Ltd
Bruce Kay and Henriette Kay
Providence Gold and Minerals Pty Ltd
Kimberley Downs Pty Ltd
13. Gavin Caudle
14.
15.
16.
17.
18.
Roger George Davis
Vestcourt Pty Ltd
Philip James Whitmont
BNP Paribas Nominees Pty Ltd
Lindway Investments Pty Ltd
19. Great Australia Corporation Pty Ltd
20. Winthrop Cafe Pty Ltd
Options
%
1,114,962
868,000
728,264
617,500
586,290
468,477
256,502
237,363
206,688
199,885
153,785
119,464
109,079
77,228
71,000
70,000
68,245
61,360
50,000
41,213
15.11
11.76
9.87
8.37
7.95
6.35
3.48
3.22
2.80
2.71
2.08
1.62
1.48
1.05
0.96
0.95
0.92
0.83
0.68
0.56
6,105,305
82.75
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 31.10.20
Holders of greater than 20% of each class of
security
Number
on issue Name of holder
Number
%
1,000,000 Maybach Consulting Pty Ltd
Gabrielle Metcalf
500,000
500,000
50.0
50.0
Voluntary escrow
Ordinary fully paid shares subject to voluntary escrow until 15 March 2020
Number
8,680,000
Corporate governance statement
The Company’s 2019 corporate governance statement can be viewed at
http://www.catalystmetals.com.au/about_catalyst/corporate_governance.phtml
50
CATALYST METALS LIMITED
ADDITIONAL INFORMATION
Tenement directory
Project
Victoria
Four Eagles
Tandarra
Pyramid
Raydarra East
Sebastian
Raydarra
Macorna Bore
Drummartin
Boort
Golden Camel
Tenement number
Beneficial interest
RL006422, EL5295, EL5508,
EL006887, EL006859
RL006660
EL006894
EL5509
EL5533
EL5266
EL5521
EL006507
EL006670
EL5490 and EL5449
50%
51%
100%
100%
100%
51% (earning in via farm-in agreement)
100%
100%
100%
50.1% (earning in via farm-in agreement)
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.
51