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(ABN 22 102 912 783)
AND CONTROLLED ENTITIES
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2019
CAULDRON ENERGY LIMITED
CORPORATE INFORMATION
NON-EXECUTIVE CHAIRMAN
Simon Youds
EXECUTIVE DIRECTOR AND CHIEF EXECUTIVE OFFICER
Jess Oram
NON-EXECUTIVE DIRECTORS
Qiu Derong
Judy Li
Simon Youds
Chenchong Zhou
COMPANY SECRETARY
Michael Fry
PRINCIPAL & REGISTERED OFFICE
Ground Floor, 20 Kings Park Road
West Perth WA 6005
Telephone: (08) 6462 1421
Facsimile: (08) 6263 3347
Website: www.cauldronenergy.com.au
AUDITORS
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco WA 6008
SHARE REGISTRAR
Advanced Share Registry
110 Stirling Hwy
Nedlands WA 6009
Telephone: (08) 9389 8033
Facsimile: (08) 9262 3723
STOCK EXCHANGE LISTING
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
Code: CXU
BANKERS
National Australia Bank
100 St Georges Terrace
Perth WA 6000
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2
CAULDRON ENERGY LIMITED
CONTENTS
FOR THE YEAR ENDED 30 JUNE 2019
DIRECTORS’ REPORT ............................................................................................... 4
AUDITOR’S INDEPENDENCE DECLARATION ................................................................ 19
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ......................................... 20
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ............................................... 21
CONSOLIDATED STATEMENT OF CASH FLOWS ........................................................... 22
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................................... 23
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ........................................... 24
DIRECTORS' DECLARATION ..................................................................................... 52
INDEPENDENT AUDITOR’S REPORT ........................................................................... 53
ASX ADDITIONAL INFORMATION .............................................................................. 56
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3
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
DIRECTORS’ REPORT
Your directors submit the financial report of the Company for the year ended 30 June 2019. In order
to comply with the provisions of the Corporations Act 2001, the directors report as follows.
DIRECTORS
The names and particulars of the directors of the Company in office at the date of this report are:
Mr Simon Youds
Non-Executive Director and Chairman
Appointed on 15 March 2019
B.Eng (Mining), MBA, AUSIMM Member
Mr Simon Youds was appointed as a Non-Executive Director and Chairman effective 15 March 2019.
Mr Youds is currently the Chief Executive Officer of ASX-listed company Vector Resources Ltd. He is
former Chief Executive Officer of African Iron, an iron ore explorer in the Republic of Congo, where he
facilitated a A$388 million deal for its purchase by Exxaro Resources. I other highlights, Mr Youds was
Managing Director, Australia, of Consolidated Minerals Limited, which owned and operated the Woodie
Woodie and Coobina manganese and chromite mining operations, located in the Pilbara region of
Western Australia. Mr Youds also spent five years working as a member of the WMC team at Olympic
Dam in South Australia developing the world’s largest uranium deposit. Further in Africa Mr Youds held
various operating and development roles at the Bibiani Gold Mine in Ghana and the Bulyanhulu and
North Mara Gold Mines in Tanzania. Mr Youds has a Bachelor of Engineering (B.Eng) in Mining and
holds an MBA degree from Deakin University, Victoria, and is a member of the Australasian Institute
of Mining and Metallurgy.
Directorships of listed companies
held within the last 3 years
None
Interest in Shares & options
Fully Paid Ordinary Shares
4,172,864
Mr Jess Oram
Executive Director and Chief Executive Officer
Appointed on 1 January 2018
B.Sc, AIG member
Mr Jess Oram was appointed as Chief Executive Officer and Executive Director effective 1 January
2018. Since April 2014, Mr Oram has served the Company as Exploration Manager. Mr Oram has over
25 years’ experience in mineral exploration in a wide variety of geological terrains and resource
commodities with an accomplished track record in establishing and leading the exploration function of
several companies. In uranium, Mr Oram was Chief Exploration Geologist for Heathgate Resources Pty
Ltd where he was involved in mining feasibility studies of the Four Mine Uranium deposits and ‘team
leader’ of a group of geoscientists involved in the discovery of the Pepegoona Uranium, Pannikan
Uranium and Pannikan West Uranium deposits. Mr Oram has a Bachelor of Science (B.Sc), Geology
major from the University of Queensland and is a member of the Australian Institute of Geoscientists
(AIG).
Directorships of listed companies
held within the last 3 years
Force Commodities Limited
February 2019 to present
Interest in Shares & options
None
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CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
Mr Qiu Derong
Non-Executive Director
Appointed on 6 November 2009
Mr Qiu is a highly experienced industrialist with more than 30 years’ experience in the architecture,
construction and real estate industries in China as well as over 20 years of experience in the
management of enterprises and projects throughout the country.
Mr Qiu has a MBA obtained from the Oxford Commercial College, a joint program operated by Oxford
University in China.
Directorships of listed companies
held within the last 3 years
None
Interest in Shares & options
Fully Paid Ordinary Shares
47,544,710
Ms Judy Li
Non-Executive Director
Appointed on 17 December 2014
Ms Judy Li has over 10 years of extensive international trading experience in hazardous chemical
products. She has also been involved in international design works for global corporates and
government clients while working for Surbana that has been jointly held by two giant Singapore
companies - CapitaLand and Temasek Holdings. Throughout her career, Judy has contributed to
building tighter relationship between corporates and governments. Judy earned her masters degree in
art with Honors Architecture from University of Edinburgh in the United Kingdom.
Directorships of listed companies
held within the last 3 years
None
Interest in Shares & options
None
Mr Chengchong Zhou
Non-Executive Director
Appointed on 2 May 2017
Mr Chengchong Zhou is an experienced financial analyst in the materials and energy sector. In his
career, Mr Zhou covers an extensive list of junior to mature mining companies and has developed a
good understanding of industry financing. Mr Zhou received his Bachelor of Science in Economics
degree from Wharton Business School in 2013.
Directorships of listed companies
held within the last 3 years
None
Interest in Shares & options
None
The names and particulars of directors of the Company who resigned during the year were:
Mr Antony Sage
former Non-Executive Director and Chairman
Resigned 22 November 2018
B.Bus, FCPA, CA, FTIA
Mr Sage has in excess of 30 years’ experience in the fields of corporate advisory services, funds
management and capital raising. Mr Sage is based in Western Australia and has been involved in the
management and financing of listed mining and exploration companies for the last 20 years. Mr Sage
has operated in Argentina, Brazil, Peru, Romania, Russia, Sierra Leone, Guinea, Cote d’Ivoire, Congo,
South Africa, Indonesia, China and Australia. Mr Sage is currently chairman of ASX-listed companies,
Cape Lambert Resources Ltd (which was AIM Company of the year in 2008), Fe Ltd, and European
Lithium Limited. Mr Antony Sage is also a Non-Executive Director of the National Stock Exchange of
5
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
Australia (NSX) listed International Petroleum Ltd. He is also the sole owner of A League football club
Perth Glory that plays in the National competition in Australia.
Directorships of listed companies
held within the last 3 years
Cape Lambert Resources
Limited
European Lithium Limited
Kupang Resources Limited (1)
Caeneus Limited
International Petroleum
Limited (2)
December 2000 to present
August 2009 to present
September 2016 to August 2015
December 2010 to January 2016
January 2006 to present
Interest in Shares & options
None
(1) Company was delisted August 2015
(2) Listed on National Stock Exchange of Australia
Mr Nicholas Sage
former Non-Executive Director
Resigned 25 February 2019
Mr Sage is an experienced marketing and communications professional with over 25 years’ experience
in various management and consulting roles. Mr Sage is based in Western Australia and currently
consults to various companies and has held various managements roles with Tourism Western
Australia. He also runs his management consulting business.
Directorships of listed companies
held within the last 3 years
Interest in Shares & options
Fe Limited
International Goldfields
Limited
None
October 2016 to present
January 2018 to present
PRINCIPAL ACTIVITIES
The principal activities of the Consolidated Entity during the financial year was uranium exploration.
There were no significant changes in the nature of the Consolidated Entity’s principal activities during
the financial year.
OPERATING RESULTS
The loss of the Consolidated Entity after providing for income tax amounted to $3,197,797 (30 June
2018: $173,299 profit).
REVIEW OF OPERATIONS
Cauldron is an Australian exploration company resulting from the merger of Scimitar Resources Limited
and Jackson Minerals Limited in 2009. Cauldron retains an experienced board of directors with proven
success in the resources sector.
Cauldron controls uranium prospective tenements and a smaller gold prospective project within
Western Australia. The Company also has an interest in a large project with defined uranium
mineralisation and prospects for copper and gold in Argentina.
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6
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
CORPORATE
The following significant transactions and events occurred during the financial year:
Board Changes
On the 22 November 2018, Mr Antony Sage resigned as a Non-Executive Director and Chairman.
On 25 February 2019, Mr Nicholas Sage was removed as a director of Cauldron as resolved by
shareholders at a General Meeting of the Company on same date.
On 15 March 2019, Mr Simon Youds was appointed as Non-Executive Director and Chairman.
Change of Company Secretary
On 15 April 2019, Michael Fry was appointed as Company Secretary in replacement of Catherine Grant-
Edwards.
Change of Registered Office
Effective from 15 April 2019, the Company’s registered office and administration office has relocated
to Ground Floor, 20 Kings Park Road, West Perth, Western Australia.
Annual General Meeting
The Company held its annual general meeting on 22 November 2018 (AGM). All resolutions put to
shareholders were passed.
Yanrey Farm-In
On 4 October 2018, Cauldron and Oceltip Metals Pty Ltd (Oceltip) entered into a farm-in-agreement,
subject to due diligence, under which Oceltip would fund exploration to the value of $2 million over an
initial three year earn-in period to earn 60% on Cauldon’s E08/2017, E08/2385, E08/2386, E08/2387,
and applications for E08/2666, E08/2667 and E08/2668, together referred to as Cauldron’s Yanrey
North Project.
On 18 December 2018, Cauldron terminated the Yanrey North Project farm-in-agreement as Oceltip
had not completed its due diligence in the time set out under the terms of the farm-in-agreement.
Acquisition of Pippingarra Lithium Project and Marble Bar Lithium Project
On 5 October 2018, Cauldron entered into an agreement with Mercury Resources Group Pty Ltd
(Mercury), an unrelated private exploration and mining group, to acquire 100% of the Pippingarra
Lithium Project and the Marble Bar Lithium Project.
On 16 November 2018, Cauldron together with mercury agreed to terminate the acquisition
agreement.
CHANGES IN CAPITAL STRUCTURE
Shares
There were no shares issued during the year.
Options
No options were issued or exercised during the year.
Twenty million (20,000,000) options having an exercise price of $0.08 and an expiry of 31 December
2018 lapsed during the year.
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CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
PROJECT INFORMATION
In Australia, Cauldron owns the Yanrey Project (Figure 1) which covers more than 1,050 km2 and
comprises eleven granted exploration licences and one application for exploration licences. Yanrey is
prospective for large sedimentary-hosted uranium deposits.
The Bennet Well Uranium Deposit is located within the Yanrey Project area and has been the subject
of significant amount of exploration over a number of years by Cauldron, refer below.
Figure 1: Map Location of Cauldron Projects
Cauldron has not undertaken field work at Yanrey Project since the announcement on 20 June 2017
of a ban of new uranium mines in Western Australia by minister Bill Johnston. The policy heading for
uranium exploration in Western Australia remains unclear, and Cauldron is seeking advice from the
Minister and the Department of Mines, Industry Regulation and Safety (DMIRS).
On the 26 July 2017, Cauldron withdrew a program of works (POW) submitted to DMIRS in February
2017 for a Field Leach trial (FLT) at Bennet Well. This POW was for a pump test, the results of which
were to inform a later stage of the FLT. The pump-test was referred to the Environmental Protection
Agency of Western Australia. This FLT was to test the parameters of extraction of uranium by in-situ
recovery (ISR) mining methodology.
The design of a new FLT will be deferred until there is clarity on the guidelines of exploration for
uranium in Western Australia. Cauldron is in continued dialogue with the Department of Mines,
Industry Regulation and Safety seeking clarification on the status of exploration for uranium in Western
Australia.
BENNET WELL (YANREY REGION)
The Bennet Well Uranium Deposit is secured under exploration licence (the same group of licences
that form the greater Yanrey Project). The mineralisation at Bennet Well is a shallow accumulation of
uranium hosted in unconsolidated sands (less than 100 m downhole depth) in Cretaceous sedimentary
units of the North Carnarvon Basin. The Bennet Well deposit is comprised of four spatially separate
deposits; namely Bennet Well East, Bennet Well Central, Bennet Well South and Bennet Well Channel.
No development work quantifying the ISR potential Bennet Well deposit has been completed during
the year because of the uncertainty surrounding the Labor Government’s policy on uranium exploration
following their election win in March 2017. The Government has yet to clarify their policy on uranium
exploration.Cauldron intends to submit a POW to DMIRS for a potential FLT, when the policy on
uranium exploration s clarified and if the standard regulatory system applies. Cauldron is working
with industry leader Inception Consulting Engineers to design a new version field leach trial.
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CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
Cauldron intends to submit a POW to DMIRS for a potential FLT, when the policy on uranium
exploration s clarified and if the standard regulatory system applies. Cauldron is working with industry
leader Inception Consulting Engineers to design a new version field leach trial.
BENNET WELL MINERAL RESOURCE
A Mineral Resource (JORC 2012) for the mineralisation at Bennet Well was completed by Ravensgate
Mining Industry Consultants following new drilling completed during the reporting period ending 2016.
The information on this Mineral Resource was fully reported in ASX announcement dated 17 December
2015, including geological maps and cross sections, supporting and explanatory statements and
metadata as required under the reporting standards of JORC2012. No work on the Mineral Resource
has been completed since, and therefore remains unchanged for the current reporting period.
The mineralisation at Bennet Well is a shallow accumulation of uranium hosted in unconsolidated sands
close to surface (less than 100 m downhole depth) in Cretaceous sedimentary units of the Ashburton
Embayment. The Bennet Well deposit is comprised of four spatially separate deposits; namely Bennet
Well East, Bennet Well Central, Bennet Well South and Bennet Well Channel.
The Mineral Resource (JORC 2012) estimate is:
•
•
•
Inferred Resource: 16.9 Mt at 335 ppm eU3O8 for total contained uranium-oxide of 12.5 Mlb
(5,670t) at 150 ppm cut-off;
Indicated Resource: 21.9 Mt at 375 ppm eU3O8 for total contained uranium-oxide of 18.1 Mlb
(8,230t) at 150 ppm cut-off;
total combined Mineral Resource: 38.9 Mt at 360 ppm eU3O8, for total contained uranium-oxide of
30.9 Mlb (13,990t) at 150 ppm cut-off.
Table 1: Mineral Resource at various cut-off
Deposit
Bennet Well Total
Bennet Well Total
Bennet Well Total
Bennet Well Total
Bennet Well Total
Bennet Well Total
Bennet Well Total
Bennet Well Total
Bennet Well Total
Deposit
Cutoff
(ppm U3O8)
Deposit Mass
(t)
Deposit
Grade (ppm
eU3O8)
Mass U3O8
(kg)
Mass U3O8
(lbs)
125
150
175
200
250
300
400
500
800
39,207,000
38,871,000
36,205,000
34,205,000
26,484,000
19,310,000
10,157,000
6,494,000
1,206,000
355
360
375
385
430
490
620
715
1175
13,920,000 30,700,000
13,990,000 30,900,000
13,580,000 29,900,000
13,170,000 29,000,000
11,390,000 25,100,000
9,460,000 20,900,000
6,300,000 13,900,000
4,640,000 10,200,000
3,100,000
1,420,000
Cutoff
(ppm U3O8)
Deposit Mass
(t)
Deposit
Grade (ppm
eU3O8)
Mass U3O8
(kg)
Mass U3O8
(lbs)
Bennet Well Indicated
Bennet Well Indicated
Bennet Well Indicated
Bennet Well Indicated
Bennet Well Indicated
Bennet Well Indicated
Bennet Well Indicated
Bennet Well Indicated
Bennet Well Indicated
125
150
175
200
250
300
400
500
800
22,028,000
21,939,000
21,732,000
20,916,000
17,404,000
13,044,000
7,421,000
4,496,000
353,000
375
375
380
385
415
465
560
635
910
8,260,000 18,200,000
8,230,000 18,100,000
8,260,000 18,200,000
8,050,000 17,800,000
7,220,000 15,900,000
6,070,000 13,400,000
9,200,000
4,160,000
6,300,000
2,850,000
700,000
320,000
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CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
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Deposit
Bennet Well Inferred
Bennet Well Inferred
Bennet Well Inferred
Bennet Well Inferred
Bennet Well Inferred
Bennet Well Inferred
Bennet Well Inferred
Bennet Well Inferred
Bennet Well Inferred
Cutoff
(ppm U3O8)
Deposit Mass
(t)
Deposit
Grade (ppm
eU3O8)
Mass U3O8
(kg)
Mass U3O8
(lbs)
125
150
175
200
250
300
400
500
800
17,179,000
16,932,000
14,474,000
13,288,000
9,080,000
6,266,000
2,736,000
1,998,000
853,000
335
335
365
380
455
535
780
900
1285
5,750,000 12,700,000
5,670,000 12,500,000
5,280,000 11,600,000
5,050,000 11,100,000
9,100,000
4,130,000
7,400,000
3,350,000
4,700,000
2,130,000
4,000,000
1,800,000
2,400,000
1,100,000
Note: table shows rounded numbers therefore units may not convert nor sum exactly
YANREY PROJECT
The Yanrey Project comprises a collection of eleven granted exploration tenements in northwest
Western Australia, one of which secures the Bennet Well Uranium Deposit. The project is prospective
of sandstone-style uranium mineralisation capable of extraction by in-situ recovery mining techniques.
In the early part of the reporting period, Cauldron continued passive seismic surveying in areas distal
to Bennet Well, within the greater Yanrey Project region. New survey lines were completed in areas
both to the north and south of the Bennet Well Deposit. Results highlighted:
▪
▪
areas of shallow Cretaceous cover that can be de-prioritised form further work because they are
not suitable for acting as hosting mineralisation of the style similar to Bennet Well; and
areas of complex basement morphology in southern tenement E08/1501, and northern
tenement E08/1489.
PROJECT GENERATION
As a direct result of the current policy on uranium mining in Western Australia, and the unclear
guidelines on the exploration for uranium, field operations at the Yanrey Project have been inactive.
There has been considerable effort seeking advanced exploration projects in commodities other than
uranium, to diversify the company’s project portfolio. Projects reviewed are mostly in Africa (copper
and uranium in Namibia, copper in Democratic Republic of Congo, copper-cobalt in Namibia, nickel in
Zimbabwe). Other areas and commodities include projects in USA comprising vanadium, gold and
gold-silver; also Papua New Guinea for nickel, and Australia for nickel, and gold.
Cauldron is seeking high value advanced exploration projects capable of rapid improvement in value
because of some specific quality of the project. This improvement in value will be realised with
judicious exploration activity aimed at moving the project towards a decision to mine.
Project generation is advancing well, with many reviews derived from many leads established through
a network built from a near permanent presence in Africa. Given the quantity and type of projects
available, it is predicted that a suitable project for Cauldron will be sourced soon.
TENEMENT ADMINISTRATION: AUSTRALIA
Objection to Cauldron’s Applications for exploration licences 08/2666-2668
Cauldron lodged applications for Exploration Licences 08/2666-2668 (E08/2666-2668) on 5 December
2014. Forrest & Forrest Pty Ltd lodged objections against E08/2666-2668 on 6 January 2015. The
matters are proceeding through the Warden’s Court process.
The Company will inform shareholders of any material developments.
Red Sky Stations Pty Ltd Objection to Tenement Application for E08/2899
Cauldron lodged an application for Exploration Licence 08/2899, on 1 February 2017. Red Sky Stations
Pty Ltd lodged Objection #501163 on 15 February 2017 against the tenement application. The matter
is proceeding through the Warden’s Court process.
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CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
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The Company will inform shareholders of any material developments.
Cauldron’s E08/2385, E08/2386 and E08/2387 Tenement Applications Granted
During the year, the Court of Appeal handed down its unanimous decision in favour of the Company
to dismiss Forrest’s appeal against the grant of E08/2385, 2386 and 2387. These tenements were
granted on 19 January 2018.
EXPLORATION ACTIVITES: ARGENTINA
In Argentina, Cauldron controls, through its wholly-owned subsidiary Cauldron Minerals Limited
(“Cauldron Minerals”), 445 km2 of exploration licences at its most advanced and 100% owned project,
Rio Colorado, in Catamarca. The project is prospective for copper and silver of the globally significant
stratabound sedimentary-hosted copper style of deposit.
In May 2017, Cauldron initiated an agreement to terminate the existing joint venture arrangement
with Horatio Solis and complete acquisition of 100% interest in the Rio Colorado Project. The
transaction was completed during the December 2017 quarter.
Cauldron requested the Argentine government to outright surrender Mina Colorada, (file 393-S-2010)
in Catamarca, on 10 August 2017. Government approval of this surrender has been received.
No work was completed at the Rio Colorado project during the year.
The Rio Colorada Project is currently in suspension and no work is planned whilst the Company
undertakes a thorough review of the potential of the Project and opportunities for joint venture, farm-
in or sale.
Competent Person Statement
The information in this report that relates to the Mineral Resource for the Bennet Well Uranium Prospect is
based on information compiled by Jess Oram who is the Executive Director, Chief Executive Officer and
Exploration Manager of Cauldron, and a member of the Australasian Institute of Geoscientists and a Member
of the Geological Society of Australia.
The information in this report that relates to sampling techniques and data, exploration results, geological
interpretation and Exploration Targets, Mineral Resources or Ore Reserves for the Yanrey Project and the
Rio Colorado Project is also based on information compiled by Jess Oram.
Mr Oram has sufficient experience of relevance to the styles of mineralisation and the types of deposits
under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the
2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves. Mr Oram consents to the inclusion in this report of the matters
based on information in the form and context in which it appears.
Forward looking statements
Information included in this release constitutes forward-looking statements. Often, but not always, forward
looking statements can generally be identified by the use of forward looking words such as “may”, “will”,
“expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and
may include, without limitation, statements regarding plans, strategies and objectives of management,
anticipated production or construction commencement dates and expected costs or production outputs.
Forward looking statements inherently involve known and unknown risks, uncertainties and other factors
that may cause the Company’s actual results, performance and achievements to differ materially from any
future results, performance or achievements. Relevant factors may include, but are not limited to, changes
in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and
demand for production inputs, the speculative nature of exploration and project development, including the
risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political
and social risks, changes to the regulatory framework within which the company operates or may in the
future operate, environmental conditions including extreme weather conditions, recruitment and retention
of personnel, industrial relations issues and litigation.
Forward looking statements are based on the Company and its management’s good faith assumptions
relating to the financial, market, regulatory and other relevant environments that will exist and affect the
Company’s business and operations in the future. The Company does not give any assurance that the
assumptions on which forward looking statements are based will prove to be correct, or that the Company’s
11
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
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business or operations will not be affected in any material manner by these or other factors not foreseen or
foreseeable by the Company or management or beyond the Company’s control.
Although the Company attempts and has attempted to identify factors that would cause actual actions,
events or results to differ materially from those disclosed in forward looking statements, there may be other
factors that could cause actual results, performance, achievements or events not to be as anticipated,
estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly,
readers are cautioned not to place undue reliance on forward looking statements. Forward looking
statements in these materials speak only at the date of issue. Subject to any continuing obligations under
applicable law or any relevant stock exchange listing rules, in providing this information the company does
not undertake any obligation to publicly update or revise any of the forward looking statements or to advise
of any change in events, conditions or circumstances on which any such statement is based.
BUSINESS STRATEGIES AND PROSPECTS FOR THE FORTHCOMING YEAR
The Company is involved in the mineral exploration industry.
Bennet Well Prospect is and will remain Cauldron’s primary focus.
In addition, Cauldron is seeking to acquire one or more high value advanced exploration projects
capable of rapid improvement in value.
SIGNFICANT CHANGES IN STATE OF AFFAIRS
There have been no changes in the state of affairs of the Consolidated Entity other than those disclosed
in the review of operations.
EVENTS SUBSEQUENT TO REPORTING DATE
No matters or circumstances have arisen since the end of the financial year which significantly affected
or may significantly affect the operations of the Consolidated Entity, the results of those operations,
or the state of affairs of the Consolidated Entity in future financial years.
ENVIRONMENTAL ISSUES
The Consolidated Entity is aware of its environmental obligations with regards to its exploration
activities and ensures that it complies with all regulations when carrying out any exploration work.
DIVIDENDS PAID OR RECOMMENDED
The directors do not recommend the payment of a dividend and no amount has been paid or declared
by way of a dividend to the date of this report.
SHARES UNDER OPTION
There are nil options over unissued ordinary shares at the date of this report.
During the year ended 30 June 2019, 20 million options having an exercise price of $0.08 and an
expiry date of 31 December 2018 lapsed.
CORPORATE GOVERNANCE
Throughout FY19, Cauldron’s corporate governance arrangements were consistent with the Corporate
Governance Principles and Recommendations published by the ASX Corporate Governance Council
(ASX Principles).
Cauldron’s 2019 Corporate Governance Statement is available at http://cauldronenergy.com.au/
our-company/corporate-governance/. The Corporate Governance Statement outlines details
in relation to Cauldron’s values, its Board, Board Committees, risk management framework
and financial reporting, diversity and inclusion, key corporate governance policies and
shareholder engagement. Cauldron’s website also contains copies of Cauldron’s Board and
12
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
Committee Charters and key policies and documents referred to in the Corporate
Governance Statement.
MEETINGS OF DIRECTORS
Due to the size of the Company, the Board of Directors performs the role of the Audit Committee and
Remuneration Committee.
The number of meetings held during the year and the number of meetings attended by each Director
whilst in office are:
Director
Antony Sage (resigned 22 November 2018)
Simon Youds (appointed 15 March 2019)
Jess Oram
Qiu Derong
Judy Li
Nicholas Sage (resigned 25 February 2019)
Chenchong Zhou
Directors’ meetings
Held while
in office
Attended
4
-
5
5
5
5
5
4
-
5
5
5
5
5
The Consolidated Entity does not have a formally constituted audit committee or remuneration
committee as the board considers that the Consolidated Entity’s size and type of operation do not
warrant such committees.
INDEMNIFICATION AND INSURANCE OF OFFICERS
During the year the Company paid premiums in respect of a contract insuring all the directors and
officers of the Company against liabilities incurred by the directors and officers that may arise from
their position as directors or officers of the Company.
In accordance with normal commercial practice, the disclosure of the total amount of premiums under
and the nature of the liabilities covered by the insurance contract is prohibited by a confidentiality
clause in the contract.
Except for the above, the Company has not indemnified or made an agreement to indemnify any
person who is or has been an officer or auditor of the Company against liabilities incurred as an officer
or auditor of the Company.
COMPANY SECRETARY
Michael Fry was appointed as Company Secretary on 15 April 2019 replacing Catherine Grant-Edwards
who resigned on the same date.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration for the year ended 30 June 2019 has been received and is
included on page 18 of the annual report.
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CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
REMUNERATION REPORT (AUDITED)
This remuneration report, which forms part of the directors’ report, sets out information about the
remuneration of Cauldron’s directors for the financial year ended 30 June 2019.
KEY MANAGEMENT PERSONNEL
Key Management Personnel includes:
▪
Antony Sage (Non-executive Chairman) (Resigned from role of Non-Executive Chairman 22
November 2018)
Simon Youds (Non-executive Chairman) appointed 15 March 2019
Jess Oram (Chief Executive Officer and Executive Director)
Qiu Derong (Non-executive Director)
Judy Li (Non-executive Director)
Chenchong Zhou (Non-executive Director)
Nicholas Sage (Non-executive Director (Resigned 25 February 2019)
▪
▪
▪
▪
▪
▪
The named persons held their positions for the duration of the financial year and up to the date of
this report, unless otherwise indicated.
REMUNERATION POLICY
The remuneration policy of Cauldron has been designed to align director objectives with shareholder
and business objectives by providing a fixed remuneration component which is assessed on an annual
basis in line with market rates. The board believes the remuneration policy to be appropriate and
effective in its ability to attract and retain appropriately skilled directors to run and manage the
Consolidated Entity, as well as create goal congruence between directors and shareholders.
During the year, the Company did not have a separately established remuneration committee. The
Board is responsible for determining and reviewing remuneration arrangements for the executive and
non-executive directors. The Board assesses the appropriateness of the nature and amount of
remuneration of such officers on a yearly basis by reference to relevant employment market conditions
with the overall objective of ensuring maximum stakeholder benefit from retention of a high quality
board. Due to the size of the business, a remuneration consultant is not engaged in making this
assessment.
The board policy is to remunerate non-executive directors at market rates for comparable companies
for time, commitment and responsibilities. The executive director determines payments to the non-
executive directors and reviews their remuneration annually, based on market practice, duties and
accountability. The maximum aggregate amount of fees that can be paid to non-executive directors
is subject to approval by shareholders at the Annual General Meeting. Shareholders approved the
maximum total aggregate fixed sum per annum to paid to non-executive directors be set at $750,000
at the 2015 Annual General Meeting. Fees for non-executive directors are not linked to the
performance of the Consolidated Entity. However, to align directors’ interests with shareholder
interests, the directors are encouraged to hold shares in the Consolidated Entity.
REMUNERATION REPORT AT 2018 AGM
The 2018 remuneration report received positive shareholder support at the 2018 Annual General
Meeting whereby of the proxies received 99.9% voted in favour of the adoption of the remuneration
report.
14
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
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COMPANY PERFORMANCE, SHAREHOLDER WEALTH AND DIRECTORS AND EXECUTIVES’
REMUNERATION
Below is a table summarizing key performance and shareholder wealth statistics for the Consolidated
Entity over the last five financial years.
Financial Year
30 June 2015
30 June 2016
30 June 2017
30 June 2018
30 June 2019
Profit/(loss)
after tax
$
Earnings/(loss)
per share
(cents)
Share Price
(cents)
(6,712,800)
(3,978,324)
(11,954,682)
173,299
(3,197,797)
(2.91)
(1.49)
(3.83)
0.05
(0.97)
11.0
6.6
3.4
3.0
1.7
The remuneration policy has been tailored to increase goal congruence between shareholders and
directors. This has been achieved by the issue of options to select directors to encourage the alignment
of personal and shareholder interest.
Key Management Personnel (KMP) remuneration for the years ended 30 June 2019 and 30 June
2018:
30 JUNE 2019
SHORT-TERM
BENEFITS
LONG-TERM
BENEFITS
POST EMPLOYMENT
SHARE
BASED
PAYMENTS
TOTAL
Remunera
-tion
performa-
nce based
Directors
Antony Sage (i)
Jess Oram (ii)
Qiu Derong (iii)
Judy Li (iv)
Nicholas Sage (v)
Chenchong Zhou (vi)
Simon Youds (vii)
TOTAL
Salary,
Fees &
Leave ($)
60,000
226,164
36,000
36,000
23,500
36,000
12,000
429,664
Other
($)
Long Service
Leave ($)
Super-
annuation
($)
Retirement
Benefits ($)
$
$
%
-
-
-
-
-
-
-
-
-
-
4,343
20,235
-
-
-
-
-
-
-
-
-
-
4,343
20,235
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
60,000
250,742
36,000
36,000
23,500
36,000
12,000
454,242
-
-
-
-
-
-
-
-
(i)
(ii)
Mr Antony Sage is entitled to a fee of $120,000 per annum. The Company has entered into a consulting agreement with
Okewood Pty Ltd (Okewood), a company controlled by Mr Antony Sage, for the provision of these services. Mr Sage
resigned as Non-Executive Chairman on the 22 November 2018.
Mr Jess Oram is an employee of Cauldron. Effective 1 January 2018, upon his appointment as Chief Executive Officer and
Executive Director of the Company, Mr Jess Oram is entitled to $213,000 plus superannuation. In addition, Mr Jess Oram
is entitled to a bonus of up to $26,100 (inclusive of superannuation) subject to achieving either:
(a) KPI 1 and KPI 2 and KPI 3; or
(b) KPI 4,
whereby, KPIs are defined as follows:
KPI 1: Secure title to the core exploration ground at Bennet Well
KPI 2: Complete either of the following:
▪
▪
Secure an exploration project, that may or may not be offshore; or
Commence the FLT at Bennet Well, and raising of funding
(c) KPI 3: Reduce cost of non-core projects
(d) KPI 4: WAP of CXU shares traded on ASX over 10 days being equal to or exceeding $0.20.
The performance-based remuneration bonus was not achieved in the year ended 30 June 2019.
A portion of Mr Oram’s salary amounting to $2,004 was recharged to related entity Fe Limited during the year (2018: $40,671).
(iii)
(iv)
(v)
In his capacity as Non-Executive Director, Mr Qiu Derong is entitled to a fee of $36,000 per annum. The Company has
entered into a consulting agreement for the provision of these services. Amounts included in this table represent accrued
fees.
In her capacity as Non-Executive Director, Ms Judy Li is entitled to a fee of $36,000 per annum. The Company has entered
into a consulting agreement for the provision of these services.
In his capacity as Non-Executive Director, Mr Nicholas Sage is entitled to a fee of $36,000 per annum. The Company has
entered into a consulting agreement with Pembury Nominees Pty Ltd (Pembury), a company controlled by Mr Nicholas
Sage, for the provision of these services. Mr Nicholas Sage resigned as Non-Executive Director on 25 February 2019.
15
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
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(vi)
(vii)
In his capacity as Non-Executive Director, Mr Chenchong Zhou is entitled to a fee of $36,000 per annum from the date of
his appointment 2 May 2017. A consulting agreement for the provision of services is yet to be executed. Amounts included
in this table represent accrued fees.
In his capacity as Non-Executive Chairman, Mr Simon Youds is entitled to a fee of $48,000 per annum from the date of his
appointment 15 March 2019. The Company has entered into a consulting agreement with Youds Mining Consulting Pty Ltd
(Youds), a company controlled by Mr Simon Youds, for the provision of these services.
30 JUNE 2018
SHORT-TERM
BENEFITS
LONG-TERM
BENEFITS
POST EMPLOYMENT
SHARE
BASED
PAYMENTS
TOTAL
Remunera
-tion
performa-
nce based
Salary,
Fees &
Leave ($)
Other
($)
Long Service
Leave ($)
Super-
annuation
($)
Retirement
Benefits ($)
$
$
%
Directors
Antony Sage (i)
Jess Oram (ii)
Qiu Derong (iii)
Judy Li (iv)
Nicholas Sage (v)
Chenchong Zhou (vi)
Other KMP
Catherine Grant-
Edwards (vii)
TOTAL
180,000
203,000
36,000
36,000
36,000
36,000
83,634
610,634
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19,285
-
-
-
-
6,333
25,618
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
180,000
222,285
36,000
36,000
36,000
36,000
89,967
636,252
-
-
-
-
-
-
-
-
(i)
(ii)
In his capacity as Executive Chairman, Mr Antony Sage was previously entitled to a fee of $240,000 per annum. Effective
1 January 2018, upon transition to his role as Non-Executive Chairman, Mr Antony Sage is entitled to a fee of $120,000
per annum. The Company has entered into a consulting agreement with Okewood Pty Ltd (Okewood), a company
controlled by Mr Antony Sage, for the provision of these services.
Mr Jess Oram is an employee of Cauldron. In his capacity as Exploration Manager until 31 December 2017, Mr Jess Oram
was entitled to $193,000 per annum plus superannuation. Effective 1 January 2018, upon his appointment as Chief
Executive Officer and Executive Director of the Company, Mr Jess Oram is entitled to $213,000 plus superannuation. In
addition, Mr Jess Oram is entitled to a bonus of up to $26,100 (inclusive of superannuation) subject to achieving either:
(a) KPI 1 and KPI 2 and KPI 3; or
(b) KPI 4,
whereby, KPIs are defined as follows:
KPI 1: Secure title to the core exploration ground at Bennet Well
KPI 2: Complete either of the following:
▪
▪
Secure an exploration project, that may or may not be offshore; or
Commence the FLT at Bennet Well, and raising of funding
(c) KPI 3: Reduce cost of non-core projects
(d) KPI 4: WAP of CXU shares traded on ASX over 10 days being equal to or exceeding $0.20.
The performance-based remuneration bonus was not achieved in the year ended 30 June 2018.
A portion of Mr Oram’s salary amounting to $40,671 was recharged to related entity Fe Limited during the year (2018: $2,087). A
portion of Mr Oram’s salary amounting to $4,058 was recharged to related entity Cape Lambert Resources Ltd during the year
(2017: nil).
(iii)
(iv)
(v)
(vi)
In his capacity as Non-Executive Director, Mr Qiu Derong is entitled to a fee of $36,000 per annum. The Company has
entered into a consulting agreement for the provision of these services. Amounts included in this table represent accrued
fees.
In her capacity as Non-Executive Director, Ms Judy Li is entitled to a fee of $36,000 per annum. The Company has entered
into a consulting agreement for the provision of these services.
In his capacity as Non-Executive Director, Mr Nicholas Sage is entitled to a fee of $36,000 per annum from date of his
appointment 20 February 2017. The Company has entered into a consulting agreement with Pembury Nominees Pty Ltd
(Pembury), a company controlled by Mr Nicholas Sage, for the provision of these services.
In his capacity as Non-Executive Director, Mr Chenchong Zhou is entitled to a fee of $36,000 per annum from the date of
his appointment 2 May 2017. A consulting agreement for the provision of services is yet to be executed. Amounts included
in this table represent accrued fees.
(vii)
Ms Catherine Grant-Edwards was an employee and disclosed as a KMP of the Company until 31 October 2017. Since 1
November 2017, Bellatrix Corporate Pty Ltd (Bellatrix) has been engaged via a consultancy agreement to provide company
secretarial and accounting services. Ms Grant-Edwards is a director of Bellatrix.
16
CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
ADDITIONAL DISCLOSURE RELATING TO OPTION HOLDINGS AND SHARE HOLDINGS
OPTION HOLDINGS OF KEY MANAGEMENT PERSONNEL
There were no options held by key management personnel during the year ended 30 June 2019.
VALUE OF OPTIONS AWARDED, EXERCISED AND LAPSED DURING THE YEAR
There were no remuneration options granted, exercised or lapsed during the year ended 30 June
2019 (30 June 2018: nil).
SHARES ISSUED ON EXERCISE OF OPTIONS
There were no options exercised during the year ended 30 June 2019 (30 June 2018: nil).
SHAREHOLDINGS OF KEY MANAGEMENT PERSONNEL
30 JUNE 2019
Directors
Antony Sage (i)
Qiu Derong
Simon Youds
Balance
1 July 2018
Issued
Received on
exercise of
options
Net Change
Other
Balance
30 June 2019
5,894,600
47,544,710
-
-
-
4,172,864
53,439,310 4,172,864
-
-
-
-
-
-
-
-
5,894,600
47,544,710
4,172,864
57,612,174
(i)
Upon cessation as a Non-Executive Director of the Company, Mr Antony Sage held 5,894,600 shares.
30 JUNE 2018
Directors
Antony Sage
Qiu Derong
Other KMP
Catherine Grant-Edwards (i)
Balance
1 July 2017
Issued
Received on
exercise of
options
Net Change
Other
Balance
30 June 2018
5,894,600
47,544,710
8,888
53,448,198
-
-
-
-
-
-
-
-
-
-
5,894,600
47,544,710
(8,888)
(8,888)
-
53,439,310
(i)
Upon cessation as an employee of the Company, Ms Grant-Edwards held 8,888 shares.
LOANS WITH KEY MANAGEMENT PERSONNEL AND THEIR RELATED PARTIES
There were no loans made to Cauldron Energy Limited by directors and entities related to them during
the year ended 30 June 2019 or 30 June 2018.
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CAULDRON ENERGY LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2019
OTHER TRANSACTIONS AND BALANCES WITH KEY MANAGEMENT PERSONNEL AND THEIR
RELATED PARTIES
Details and terms and conditions of other transactions with key management personnel and their
related parties (other than payments to directors as remuneration disclosed above):
Director related entities
Fe Limited (2)
Fe Limited
Cape Lambert Resources Limited
Cape Lambert Resources Limited
Okewood Pty Ltd
Okewood Pty Ltd
Services to
related
parties
Purchases
from related
parties
Amounts
owed by
related
parties(1)
Amounts
owed to
related
parties(1)
2019
2018
2019
2018
2019
2018
2,004
40,671
-
4,058
-
-
-
-
42,674
40,671
69,828
188,179
-
32,821
-
-
-
-
-
-
5,005
13,176
-
-
(1) Amounts are classified as trade receivables and trade payables, respectively.
(2) Amount owed by Fe Limited of $42,674 has been impaired as at 30 June 2019 refer Note 7 to the financial statements.
Mr Antony Sage is a director of Cape Lambert Resources Limited and Okewood Pty Ltd. Messrs Antony
Sage and Nicholas Sage are directors of Fe Limited.
End of Audited Remuneration Report.
NON AUDIT SERVICES
There were no non-audit services were provided by the Company’s auditor BDO (WA) Pty Ltd
This report of the Directors, incorporation the Remuneration Report is signed in accordance with a
resolution of the Board of Directors.
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Mr Simon Youds
Non-Executive Director
18
c
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF CAULDRON ENERGY
LIMITED
As lead auditor of Cauldron Energy Limited for the year ended 30 June 2019, I declare that, to the best
of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Cauldron Energy Limited and the entities it controlled during the
period.
Phillip Murdoch
Director
BDO Audit (WA) Pty Ltd
Perth, 27 September 2019
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BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
CAULDRON ENERGY LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2019
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Continuing Operations
Revenue
Other Income
Administration expenses
Employee benefits expenses
Directors fees
Compliance and regulatory expenses
Consultancy expenses
Legal fees
Occupancy expenses
Travel expenses
Exploration expenditure
Notes
3 (a)
3 (b)
2019
$
2018
$
11,231
23,733
-
701,552
(49,386)
(67,930)
(273,993)
(339,081)
(203,500)
(311,806)
(123,010)
(151,984)
(278,038)
(281,583)
(171,975)
(121,388)
(66,028)
(133,725)
(10,268)
(72,155)
(176,924)
(142,339)
Net fair value gain/(loss) on financial assets
8
(1,432,647)
1,294,355
Depreciation and amortisation
Realised foreign exchange loss
Impairment losses
(Loss)/profit for the year before income tax
Income tax expense
(Loss)/profit for the year from continuing
operations attributable to members of the
Company
Other comprehensive income, net of income tax
Items that may be reclassified subsequently to profit or
loss:
Exchange difference arising on translation of foreign
operations
Total comprehensive (loss)/profit for the year
attributable to members of the Company
4
5
(2,281)
(1,683)
(8,420)
(179)
(419,296)
(215,751)
(3,197,797)
173,299
-
-
(3,197,797)
173,299
(30,888)
(67,060)
(3,228,685)
106,239
(Loss)/profit per share
Basic (loss)/profit per share (cents per share)
Diluted (loss)/profit per share (cents per share)
17
17
(0.97)
(0.97)
0.05
0.05
The above statement of comprehensive income is to be read in conjunction with the
accompanying notes.
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CAULDRON ENERGY LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2019
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit or loss
Total current assets
Non-current assets
Exploration and evaluation
Plant and equipment
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Employee entitlements
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Notes
2019
$
2018
$
6
7
8
10
11
12
13
14
15
16
526,681
1,950,436
29,105
418,188
1,282,895
2,715,310
1,838,681
5,083,934
-
9,018
9,018
-
3,391
3,391
1,847,699
5,087,325
625,913
654,361
69,029
51,522
694,942
705,883
694,942
705,883
1,152,757
4,381,442
55,675,919
55,675,919
4,191,999
4,222,887
(58,715,161)
1,152,757
(55,517,364)
4,381,442
The above statement of financial position is to be read in conjunction with the
accompanying notes.
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21
CAULDRON ENERGY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2019
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Interest paid
Notes
2019
$
2018
$
(878,786)
(1,452,786)
11,231
23,733
(34)
-
Net cash flows used in operating activities
21 (a)
(867,589)
(1,429,053)
Cash flows from investing activities
Purchase of plant and equipment
11
(7,908)
-
Payments for exploration and evaluation
(548,258)
(617,735)
Funding provided to Caudillo Resources SA
Proceeds from sales of equity investments
Acquisition of equity investments
-
-
-
(26,930)
904,178
(172,641)
Net cash flows (used in)/from investing activities
(556,166)
86,872
Net decrease in cash and cash equivalents
(1,423,755)
(1,342,181)
Effects of exchange rate changes on cash
-
(2,189)
Cash and cash equivalents at beginning of period
1,950,436
3,294,806
Cash and cash equivalents at end of period
6
526,681
1,950,436
The above statement of cash flows is to be read in conjunction with the
accompanying notes.
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CAULDRON ENERGY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2019
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Issued
Capital
Accumulated
Losses
$
$
Share
Based
Payment
Reserve
$
Foreign
Currency
Translation
Reserve
$
Total Equity
$
Balance at 1 July 2018
55,675,919
(55,517,364)
5,808,480
(1,585,593)
4,381,442
Loss attributable to
members of the parent
entity
-
(3,197,797)
Other comprehensive loss
-
-
-
(3,197,797)
-
-
-
-
(3,197,797)
(30,888)
(30,888)
(30,888)
(3,197,797)
Total comprehensive
loss for the year
Transactions
with
owners in their capacity
as owners
Shares issued during the
period, net of costs
Balance at 30 June
2019
-
-
-
-
-
55,675,919
(58,715,161)
5,808,480
(1,616,481)
1,152,757
Balance at 1 July 2017
55,675,919
(55,690,663)
5,808,480
(1,518,533)
4,275,203
Profit attributable to
members of the parent
entity
Other comprehensive loss
Total comprehensive
profit for the year
Transactions
with
owners in their capacity
as owners
Shares issued during the
period, net of costs
-
-
-
173,299
-
173,299
-
-
-
-
173,299
(67,060)
(67,060)
(67,060)
106,239
-
-
-
-
-
Balance at 30 June 2018
55,675,919
(55,517,364)
5,808,480
(1,585,593)
4,381,442
The above statement of changes in equity is to be read in conjunction with the
accompanying notes.
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CAULDRON ENERGY LIMITED
CONTENTS
FOR THE YEAR ENDED 30 JUNE 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ......................................... 25
SEGMENT INFORMATION ............................................................................... 34
REVENUE AND OTHER INCOME ....................................................................... 36
IMPAIRMENT LOSSES .................................................................................... 36
INCOME TAX ................................................................................................ 37
CASH AND CASH EQUIVALENTS ..................................................................... 38
TRADE AND OTHER RECEIVABLES .................................................................. 38
FINANCIAL ASSETS ....................................................................................... 39
LOANS RECEIVABLE ...................................................................................... 39
EXPLORATION AND EVALUATION EXPENDITURE ............................................... 40
PLANT AND EQUIPMENT ................................................................................ 40
TRADE AND OTHER PAYABLES ........................................................................ 40
PROVISIONS ................................................................................................ 40
ISSUED CAPITAL .......................................................................................... 41
RESERVES ................................................................................................... 41
ACCUMULATED LOSSES ................................................................................. 42
EARNINGS/(LOSS) PER SHARE ....................................................................... 42
COMMITMENTS............................................................................................. 43
CONTIGENT ASSETS AND LIABILITIES ............................................................ 43
CONTROLLED ENTITIES ................................................................................. 43
CASH FLOW INFORMATION ............................................................................ 44
FINANCIAL RISK MANAGEMENT ...................................................................... 45
OPTIONS OVER UNISSUED SHARES ................................................................ 48
PARENT ENTITY DISCLOSURES ...................................................................... 49
RELATED PARTY INFORMATION ...................................................................... 50
REMUNERATION OF AUDITORS ...................................................................... 51
EVENTS SUBSEQUENT TO REPORTING DATE .................................................... 51
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a.
Basis of Preparation
The financial report covers Cauldron Energy Limited (“Cauldron”) and its controlled entities (“the
Consolidated Entity”) for the year ended 30 June 2019 and was authorised for issue in
accordance with a resolution of the directors on 27 September 2019.
Cauldron is a public listed company, incorporated and domiciled in Australia.
Cauldron is a for-profit entity for the purposes of preparing these financial statements.
The financial report is a general purpose financial report that has been prepared in accordance
with the requirements of the Corporations Act 2001, Australian Accounting Standards and other
authoritative pronouncements of the Australian Accounting Standards Board. The financial
report has been prepared on an accruals basis and is based on historical costs, modified, where
applicable, by the measurement at fair value of selected non-current assets, financial assets and
financial liabilities.
The financial report is presented in Australian dollars.
b.
Compliance with IFRS
The financial report complies with International Financial Reporting Standards (IFRS) as issued
by the International Accounting Standards Board.
c.
Adoption of New and Revised Accounting Standards
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') that are
mandatory for the current reporting period.
The following relevant standards and interpretations have been applied for the first time for the
year ended 30 June 2019:
AASB 15 Revenue from Contracts with Customers
The consolidated entity has adopted AASB 15 from 1 July 2018. The standard provides a single
comprehensive model for revenue recognition. The core principle of the standard is that an
entity shall recognise revenue to depict the transfer of promised goods or services to customers
at an amount that reflects the consideration to which the entity expects to be entitled in
exchange for those goods or services. The standard introduced a new contract-based revenue
recognition model with a measurement approach that is based on an allocation of the transaction
price. This is described further in the accounting policies below. Credit risk is presented
separately as an expense rather than adjusted against revenue. Contracts with customers are
presented in an entity's statement of financial position as a contract liability, a contract asset,
or a receivable, depending on the relationship between the entity's performance and the
customer's payment. Customer acquisition costs and costs to fulfil a contract can, subject to
certain criteria, be capitalised as an asset and amortised over the contract period.
The adoption of AASB 15 did not have a material impact on the financial statements.
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
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
operating leases and finance leases. Subject to exceptions, a 'right-of-use' asset will be
capitalised in the statement of financial position, measured at the present value of the
unavoidable future lease payments to be made over the lease term. The exceptions relate to
short-term leases of 12 months or less and leases of low-value assets (such as personal
computers and small office furniture) where an accounting policy choice exists whereby either a
'right-of-use' asset is recognised or lease payments are expensed to profit or loss as incurred.
A liability corresponding to the capitalised lease will also be recognised, adjusted for lease
prepayments, lease incentives received, initial direct costs incurred and an estimate of any future
restoration, removal or dismantling costs. Straight-line operating lease expense recognition will
be replaced with a depreciation charge for the leased asset (included in operating costs) and an
interest expense on the recognised lease liability (included in finance costs). In the earlier
periods of the lease, the expenses associated with the lease under AASB 16 will be higher when
compared to lease expenses under AASB 117. However EBITDA (Earnings Before Interest, Tax,
Depreciation and Amortisation) results will be improved as the operating expense is replaced by
interest expense and depreciation in profit or loss under AASB 16. For classification within the
statement of cash flows, the lease payments will be separated into both a principal (financing
activities) and interest (either operating or financing activities) component. For lessor
accounting, the standard does not substantially change how a lessor accounts for leases. The
consolidated entity will adopt this standard from 1 July 2019 and its impact on adoption is not
expected to be material on the financial statements given the short-term nature of its lease
agreements.
The Company is in the process of determining the impact of the above on its financial
statements. The Company has not elected to early adopt any new Standards or Interpretations.
d.
Principles of Consolidation
(i)
Subsidiaries
Subsidiaries are all entities over which the group has control. The group controls an entity when
the group 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 group.
They are deconsolidated from the date that control ceases. A list of controlled entities is
contained in note 20 to the financial statements.
All inter-group balances and transactions between entities in the Consolidated Entity, including
any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of
subsidiaries have been changed where necessary to ensure consistency with those adopted by
the Parent Entity.
(ii)
Joint arrangements
Under AASB 11, Joint Arrangements investments in joint arrangements are classified as either
joint operations or joint ventures. The classification depends on the contractual rights and
obligations of each investor, rather than the legal structure of the joint arrangement.
Joint operations
Cauldron Energy Limited recognises its direct right to the assets, liabilities, revenues and
expenses of joint operations and its share of any jointly held or incurred assets, liabilities,
revenues and expenses. These have been incorporated in the financial statements under the
appropriate headings.
Joint ventures
Interests in joint ventures are accounted for using the equity method, after initially being
recognised at cost in the consolidated statement of financial position.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
e.
Foreign Currency Transactions and Balances
Functional and presentation currency
The functional currency of each of the Consolidated Entity’s companies is measured using the
currency of the primary economic environment in which that company operates. The
consolidated financial statements are presented in Australian dollars which is the parent entity’s
functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates
prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign
currencies are retranslated at the rate of exchange ruling at the reporting date. Non-monetary
items measured at historical cost continue to be carried at the exchange rate at the date of the
transaction. Non-monetary items measured at fair value are reported at the exchange rate at
the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the
statement of profit or loss and other comprehensive income, except where deferred in equity as
a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly
in equity to the extent that the gain or loss is directly recognised in equity, otherwise the
exchange difference is recognised in the statement of profit or loss and other comprehensive
income.
Group companies
The financial results and position of foreign operations whose functional currency is different
from the Consolidated Entity’s presentation currency are translated as follows:
•
assets and liabilities are translated at year-end exchange rates prevailing at the end of
the reporting period;
income and expenses are translated at average exchange rates for the period; and
retained earnings are translated at the exchange rates prevailing at the date of the
transaction.
•
•
Exchange differences arising on translation of foreign operations are transferred directly to the
Consolidated Entity’s foreign currency translation reserve in the statement of financial position.
These differences are recognised in the statement of profit or loss and other comprehensive
income in the period in which the operation is disposed.
f.
Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax
(GST), except:
(i) where the amount of GST incurred is not recoverable from the taxation authority, it is
recognised as part of the cost of acquisition of an asset or as part of an item of expense;
or
for receivables and payables which are recognised inclusive of GST.
(ii)
The net amount of GST recoverable from, or payable to, the taxation authority is included as
part of receivables or payables.
Cash flows are included in the cash flow statement on a gross basis. The GST component of cash
flows arising from investing and financing activities which is recoverable from, or payable to,
the taxation authority is classified as operating cash flows.
g.
Income Tax
The income tax expense (revenue) for the year comprises current income tax expense (income)
and deferred tax expense (income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income
calculated using applicable income tax rates enacted, or substantially enacted, as at the end of
the reporting period. Current tax liabilities (assets) are therefore measured at the amounts
expected to be paid to (recovered from) the relevant taxation authority.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability
balances during the year as well unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity
instead of the profit or loss when the tax relates to items that are credited or charged directly
to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial
statements. Deferred tax assets also result where amounts have been fully expensed but future
tax deductions are available. No deferred income tax will be recognised from the initial
recognition of an asset or liability, excluding a business combination, where there is no effect
on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to
the period when the asset is realised or the liability is settled, based on tax rates enacted or
substantively enacted at the end of the reporting period. Their measurement also reflects the
manner in which management expects to recover or settle the carrying amount of the related
asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only
to the extent that it is probable that future taxable profit will be available against which the
benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches,
associates, and joint ventures, deferred tax assets and liabilities are not recognised where the
timing of the reversal of the temporary difference can be controlled and it is not probable that
the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and
it is intended that net settlement or simultaneous realisation and settlement of the respective
asset and liability will occur. Deferred tax assets and liabilities are offset where a legally
enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes
levied by the same taxation authority on either the same taxable entity or different taxable
entities where it is intended that net settlement or simultaneous realisation and settlement of
the respective asset and liability will occur in future periods in which significant amounts of
deferred tax assets or liabilities are expected to be recovered or settled.
Tax consolidation
Cauldron Energy Limited and its wholly-owned Australian subsidiaries have formed an income
tax consolidated group under tax consolidation legislation. Each entity in the Consolidated Entity
recognises its own current and deferred tax assets and liabilities. Such taxes are measured using
the ‘stand-alone taxpayer’ approach to allocation. Current tax liabilities (assets) and deferred
tax assets arising from unused tax losses and tax credits in the subsidiaries are immediately
transferred to the head entity. The Group notified the Australian Taxation Office that it had
formed an income tax consolidated group to apply from 1 July 2009.
h.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand, cash in banks and investments in money
market instruments. Cash equivalents are short-term, highly liquid investments that are readily
convertible to known amounts of cash, which are subject to an insignificant risk of changes in
value and have an original maturity of three months or less.
i.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are
included as part of the initial measurement, except for financial assets at fair value through
profit or loss. Such assets are subsequently measured at either amortised cost or fair value
depending on their classification. Classification is determined based on both the business model
within which such assets are held and the contractual cash flow characteristics of the financial
asset unless, an accounting mismatch is being avoided.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
Financial assets are derecognised when the rights to receive cash flows have expired or have
been transferred and the consolidated entity has transferred substantially all the risks and
rewards of ownership. When there is no reasonable expectation of recovering part or all of a
financial asset, it's carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive
income are classified as financial assets at fair value through profit or loss. Typically, such
financial assets will be either: (i) held for trading, where they are acquired for the purpose of
selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated
as such upon initial recognition where permitted. Fair value movements are recognised in profit
or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments
which the consolidated entity intends to hold for the foreseeable future and has irrevocably
elected to classify them as such upon initial recognition.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets
which are either measured at amortised cost or fair value through other comprehensive income.
The measurement of the loss allowance depends upon the consolidated entity's assessment at
the end of each reporting period as to whether the financial instrument's credit risk has increased
significantly since initial recognition, based on reasonable and supportable information that is
available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition,
a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's
lifetime expected credit losses that is attributable to a default event that is possible within the
next 12 months. Where a financial asset has become credit impaired or where it is determined
that credit risk has increased significantly, the loss allowance is based on the asset's lifetime
expected credit losses. The amount of expected credit loss recognised is measured on the basis
of the probability weighted present value of anticipated cash shortfalls over the life of the
instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the
loss allowance is recognised within other comprehensive income. In all other cases,
the loss allowance is recognised in profit or loss.
j.
Property, Plant and Equipment
Plant and equipment are stated at cost less accumulated depreciation and impairment. Cost
includes expenditure that is directly attributable to the acquisition of the item. In the event that
settlement of all or part of the purchase consideration is deferred, cost is determined by
discounting the amounts payable in the future to their present value as at the date of acquisition.
Depreciation is provided on plant and equipment. Depreciation is calculated on a diminishing
value basis so as to write off the net cost or other revalued amount of each asset over its
expected useful life to its estimated residual value. The estimated useful lives, residual values
and depreciation method are reviewed at the end of each annual reporting period.
The depreciation rates used for each class of depreciable assets for the 30 June 2019 year are:
Class of Fixed Asset
Depreciation Rate
Plant and equipment
Office furniture and equipment
Motor vehicle
33.3%
33.3%
33.3%
Gains and losses on disposals are determined by comparing proceeds with the carrying amount.
These gains and losses are included in the statement of profit or loss and other comprehensive
income. When revalued assets are sold, amounts included in the revaluation surplus relating to
that asset are transferred to retained earnings.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
k.
Exploration and Evaluation Expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each
identifiable area of interest. These costs are only carried forward to the extent that they are
expected to be recouped through the successful development of the area or where activities in
the area have not yet reached a stage that permits reasonable assessment of the existence of
economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the
year in which the decision to abandon the area is made. When production commences, the
accumulated costs for the relevant area of interest are amortised over the life of the area
according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of
continuing to carry forward costs in relation to that area of interest.
l.
Impairment of Non-Financial Assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognised for
the amount by which the asset's carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-
use. The value-in-use is the present value of the estimated future cash flows relating to the
asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the
asset belongs. Assets that do not have independent cash flows are grouped together to form a
cash-generating unit.
m. R&D Tax Incentive
Refundable tax incentives are accounted for as government grants under AASB 120 Accounting
for Government Grants and Disclosure of Government Assistance because the directors consider
this policy to provide more relevant information to meet the economic decision-making needs
of users, and to make the financial statements more reliable. The Consolidated Entity has
determined that these incentives are akin to government grants because they are not conditional
upon earning taxable income.
n.
Trade and Other Payables
Trade and other payables represent the liability outstanding at the end of the reporting period
for goods and services received by the Consolidated Entity during the reporting period which
remains unpaid. The balance is recognised as a current liability with the amount being normally
paid within 30 days of recognition of the liability.
o.
Revenue Recognition
The consolidated entity recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated
entity is expected to be entitled in exchange for transferring goods or services to a customer.
For each contract with a customer, the consolidated entity: identifies the contract with a
customer; identifies the performance obligations in the contract; determines the transaction
price which takes into account estimates of variable consideration and the time value of money;
allocates the transaction price to the separate performance obligations on the basis of the
relative stand-alone selling price of each distinct good or service to be delivered; and recognises
revenue when or as each performance obligation is satisfied in a manner that depicts the transfer
to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the
customer such as discounts, rebates and refunds, any potential bonuses receivable from the
customer and any other contingent events. Such estimates are determined using either the
'expected value' or 'most likely amount' method. The measurement of variable consideration is
subject to a constraining principle whereby revenue will only be recognised to the extent that it
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
is highly probable that a significant reversal in the amount of cumulative revenue recognised
will not occur. The measurement constraint continues until the uncertainty associated with the
variable consideration is subsequently resolved. Amounts received that are subject to the
constraining principle are recognised as a refund liability.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a
method of calculating the amortised cost of a financial asset and allocating the interest income
over the relevant period using the effective interest rate, which is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial asset to the net carrying
amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is
established.
p.
Provisions and Employee Benefits
Provisions are recognised when the Consolidated Entity has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and a reliable estimate can be made
of the amount of the obligation.
Provisions are measures at the present value of management’s best estimate of the expenditure
required to settle the present obligation at the reporting date. The discount rate used to
determine the present value reflects current assessments of the time value of money and the
risks specific to the liability. The increase in the provision resulting from the passage of time is
recognised in finance costs.
Provision for restoration and rehabilitation
A provision for restoration and rehabilitation is recognised when there is a present obligation as
a result of exploration activities undertaken, it is probable that an outflow of economic benefits
will be required to settle the obligation, and the amount of the provision can be measured
reliably. The estimated future obligation includes the costs of removing facilities, abandoning
sites and restoring the affected areas.
Employee leave benefits
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected
to be settled wholly within 12 months of the reporting date are recognised in respect of
employees’ services up to the reporting date. They are measured at the amounts expected to
be paid when the liabilities are settled.
q.
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
r.
Share based payments
Equity-settled share based payments are measured at fair value at the date of grant. Fair value
is measured by use of the Black-Scholes options pricing model. The expected life used in the
model has been adjusted, based on management’s best estimate, for the effects of non-
transferability, exercise restrictions, and behavioural considerations.
The fair value determined at the grant date of the equity-settled share-based payments is
expensed on a straight-line basis over the vesting period, based on the Consolidated Entity’s
estimate of shares that will eventually vest.
For cash-settled share-based payments, a liability equal to the portion of the goods and services
received is recognised at the current fair value determined at each reporting date.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
s.
Critical accounting judgements, estimates and assumptions
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The Consolidated Entity makes estimates and assumptions concerning the future. The resulting
accounting estimates will, by definition, seldom equal the related actual results. The estimates
and assumptions that have a significant risk of causing a material adjustment to carrying
amounts of assets and liabilities within the next financial year are discussed below.
Exploration and evaluation costs
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable
area of interest. These costs are carried forward in respect of an area that has not at balance
date reached a stage which permits a reasonable assessment of the existence or otherwise of
economically recoverable reserves, and active and significant operations in or relating to, the
area of interest are continuing.
Environmental Issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any
pending or enacted environmental legislation, and the directors understanding thereof. At the
current stage of the Consolidated Entity’s development and its current environmental impact
the directors believe such treatment is reasonable and appropriate.
Income taxes
The Consolidated Entity is subject to income taxes in Australia and jurisdictions where it has
foreign operations. Significant judgement is required in determining the worldwide provision for
income taxes. There are many transactions and calculations undertaken during the ordinary
course of business for which the ultimate tax determination is uncertain. The Consolidated
Entity estimates its tax liabilities based on the Consolidated Entity’s understanding of the tax
laws in the relevant jurisdictions. Where the final tax outcome of these matters is different from
the amounts that were initially recorded, such difference will impact the current and deferred
income tax assets and liabilities in the period in which such determination is made.
In addition, the Consolidated Entity has recognised deferred tax assets relating to carried
forward tax losses to the extent there are sufficient taxable temporary differences (deferred tax
liabilities) relating to the same taxation authority and the same subsidiary against which the
unused tax losses can be utilised. However, utilisation of the tax losses also depends on the
ability of the entity to satisfy certain tests at the time the losses are recouped.
t.
Comparative Figures
Comparative figures have been adjusted to conform to changes in presentation for the current
financial year.
u.
Operating Segments
An operating segment is a component of an entity that engages in business activities from which
it may earn revenues and incur expenses (including revenues and expenses relating to
transactions with other components of the same entity), whose operating results are regularly
reviewed by the entity’s chief operating decision maker to make decisions about resources to
be allocated to the segment and assess their performance and for which discrete financial
information is available. This includes start-up operations which are yet to earn revenues.
Operating segments have been identified based on the information provided to the chief
operating decision makers – being the board of directors.
Information about other business activities and operating segments that do not meet the
quantitative criteria set out in AASB 8 “Operating Segments” are combined and disclosed in a
separate category called “other.”
32
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
v.
Going Concern
The financial report has been prepared on the going concern basis, which contemplates the
continuity of normal business activity and the realisation of assets and settlement of liabilities
in the normal course of business.
As at 30 June 2019, the Group had cash and cash equivalents of $526,681 and had net working
capital of $1,143,739. The Group incurred a loss for the year ended 30 June 2019 of $3,197,797
(30 June 2018: $173,299 profit) and net cash outflows used in operating activities and investing
activities totalling $1,423,755 (30 June 2018: $1,342,181).
The ability of this Group to continue as a going concern is dependent on the Group securing
additional debt and/or equity funding to meet its working capital requirements in the next 12
months. These conditions indicate the existence of a material uncertainty that may cast a
significant doubt about the Group’s ability to continue as a going concern and, therefore, that it
may be unable to realise its assets and discharge its liabilities in the normal course of business.
At the date of this report, the directors are satisfied there are reasonable grounds to believe
that the Group will be able to continue its planned operations and the Group will be able to meet
its obligations as and when they fall due, for the following reasons:
•
•
•
the Company has the ability to raise funds through equity issues;
the Directors have embarked on a strategy to reduce its corporate costs;
the Group holds a portfolio of investments valued at $1,282,895 at 30 June 2019, which
may be sold to fund ongoing cash requirements of the Company; and
the Directors are of the opinion that the use of the going concern basis of accounting is
appropriate as they are confident in the ability of the Group to be successful in securing
additional funds through debt or equity issues as and when the need to raise working
capital arises.
•
Should the Group not be able to continue as a going concern, it may be required to realise its
assets and discharge its liabilities other than in the ordinary course of business, and at amounts
that differ from those stated in the financial statements. The financial report does not include
any adjustments relating to the recoverability and classification of recorded asset amounts or
liabilities that might be necessary should the Group not continue as a going concern and meet
its debts as and when they become due and payable.
33
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2.
SEGMENT INFORMATION
The Consolidated Entity has identified its operating segments based on the internal reports that
are reviewed and used by the board of directors (chief operating decision makers) in assessing
performance and determining the allocation of resources. During the year, the Consolidated
Entity operated in one business segment (for primary reporting) being mineral exploration and
principally in two geographical segments (for secondary reporting) being Australia and
Argentina.
Basis of accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the board of directors as the chief decision
maker with respect to operating segments are determined in accordance with accounting policies
that are consistent to those adopted in the annual financial statements of the Consolidated
Entity.
Inter-segment transactions
Inter-segment loans payable and receivable are initially recognised as the consideration received
net of transaction costs. If inter-segment loans receivable and payable are not on commercial
terms, these are not adjusted to fair value based on market interest rates. This policy represents
a departure from that applied to the statutory financial statements.
Segment assets
Unless indicated otherwise in the segment assets note, investments in financial assets, deferred
tax assets and intangible assets have not been allocated to operating segments.
Segment liabilities
Liabilities are allocated to segments where there is direct nexus between the incurrence of the
liability and the operations of the segment. Borrowings and tax liabilities are generally
considered to relate to the Consolidated Entity as a whole and are not allocated to specific
segments. Segment liabilities include trade and other payables and certain direct borrowings.
Other items
The following items of revenue, expense, assets and liabilities are not allocated to the Mineral
Exploration segment as they are not considered part of the core operations of that segment:
▪
▪
▪
▪
▪
▪
administration and other operating expenses not directly related to uranium exploration
interest income
interest expense
subscription funds
loans to other entities
financial assets at fair value through profit or loss
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
Segment Information
Mineral Exploration
Other
Total
2019
2018
2019
2018
2019
2018
$
$
$
$
$
$
Revenue
Interest received
Other
Gain on disposal of financial assets
Total segment revenue and
other income
Segment net operating
profit/(loss) after tax
Segment net operating profit/(loss)
after tax includes the following
significant items:
Net fair value gain/(loss) on
financial assets
Impairment of loans and
receivables
-
-
-
-
-
-
-
-
11,231
23,733
11,231
23,733
-
-
93,263
608,289
-
-
93,263
608,289
11,231
725,285
11,231
725,285
(598,500)
(356,417) (2,599,297)
529,716 (3,197,797)
173,299
-
- (1,434,330)
1,294,355 (1,434,330)
1,294,355
(47,963)
-
Impairment of exploration assets
(371,333)
(205,659)
Depreciation
(2,281)
(8,420)
-
-
-
(10,092)
(47,963)
(10,092)
-
(371,333)
(205,659)
-
(2,281)
(8,420)
Employee benefits expense
Directors fees
Consultancy expenses
Legal fees
-
-
-
-
-
-
-
-
(273,993)
(339,081)
(273,993)
(339,081)
(203,500)
(311,806)
(203,500)
(311,806)
(278,038)
(281,583)
(278,038)
(281,583)
(171,975)
(121,388)
(171,975)
(121,388)
Tenement expenditure
(176,924)
(142,338)
-
-
(176,924)
(142,338)
Other expenses
-
-
(248,691)
(425,974)
(248,691)
(425,974)
Segment assets
9018
3,392 1,838,681 5,083,933 1,847,699 5,087,325
Segment assets include:
Financial assets
Other assets
-
- 1,282,895 2,715,310 1,282,895 2,715,310
9,018
3,392
555,786 2,368,623
564,804 2,372,015
9,018
3,392 1,838,681 5,083,933 1,847,699 5,087,325
Segment liabilities
-
23,335
694,942
682,548
694,942
705,883
Segment information by
geographical region
The analysis of the location of total
assets is as follows:
Australia
Argentina
1,836,287
5,075,278
11,412
12,047
1,847,699 5,087,325
35
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
3.
REVENUE AND OTHER INCOME
(a) Revenue
Interest received
Total revenue
(b) Other income
2019
$
2018
$
11,231
11,231
23,733
23,733
Gain on disposal of financial assets at fair value through
profit or loss
Other
Total other income
-
-
-
608,289
93,263
701,552
4.
IMPAIRMENT LOSSES
Impairment of exploration and evaluation expenditure
371,333
205,659
Impairment of plant and equipment
Expected credit loss of loans and other receivables
Reversal of previously impaired loans and receivables
Total impairment losses
-
-
47,963
26,750
-
(16,658)
419,296
215,751
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
INCOME TAX
5.
(a) The components of tax expense comprise:
Current tax (expense)/benefit
Deferred tax (expense)/benefit
Total
2019
$
2018
$
-
-
-
-
-
-
(b) The prima
facia
(benefit)/expense on
(loss)/profit from ordinary activities before income
tax is reconciled to the income tax as follows:
tax
Accounting (loss)/profit before tax
(3,197,797)
173,299
Total accounting (loss)/profit before tax
(3,197,797)
173,299
Prima facie income tax (expense)/benefit @ 30.0%
(959,339)
51,990
Tax effect of:
Non-deductible expenses
Tax losses utilised
105,681
59,641
-
-
Deductible capitalised exploration costs
(111,400)
(152,115)
Realised capital (gain)/loss on investments
-
(182,487)
Unrealised capital (gain)/loss on investments
429,794
(388,306)
Non-assessable non-exempt foreign related expenditure
49,729
85,660
Section 40-880 deduction
Losses and other deferred tax balances not recognised during
the period
Aggregate income tax expense
(23,220)
(32,337)
508,755
557,954
-
-
(c) Recognised deferred tax balances
Deferred tax balances have been recognised in respect of
the following:
Deferred tax assets
Employee entitlements
Other receivables
Other payables
Loans receivable
Investments
Capital raising costs
Tax losses
Total deferred tax assets
Deferred tax liabilities
Exploration
Total deferred tax liabilities
Net recognised deferred tax assets/(liabilities)
20,709
12,802
75,792
15,457
-
47,066
414,101
412,515
2,115,012
1,720,753
3,600
26,819
(2,642,016)
(2,222,610)
-
-
-
-
-
-
-
-
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
6.
CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Cash and cash equivalents
Reconciliation to cash flow statement
For the purposes of the cash flow statement, cash and cash
equivalents comprise the following at 30 June:
2019
$
2018
$
526,681
1,950,436
526,681
1,950,436
Cash at bank and in hand
Cash held in trust
526,681
1,950,436
-
-
Cash for reconciliation of cash flow statement
526,681
1,950,436
7.
TRADE AND OTHER RECEIVABLES
CURRENT
Trade receivables
R&D tax incentive receivable
Prepayments
Allowance for expected credit losses (2018: Provision for
impairment of receivables) (a)
105,271
129,395
-
316,454
6,553
12,384
(82,719)
(40,045)
Total current trade and other receivables
29,105
418,188
a) Provision for non-recovery of trade receivables
Balance at 1 July
Impairment of receivable
Recovery of previously impaired receivable
Balance at 30 June
(40,045)
(56,703)
(42,674)
-
-
16,658
(82,719)
(40,045)
Allowance for expected credit losses
The consolidated entity has recognised a loss of $nil, in profit or loss in respect of the expected credit
losses for the year ended 30 June 2019 for its Trade and Other Receivables.
Credit risk
The Consolidated Entity has no significant concentration of credit risk with respect to any single
counterparty or group of counterparties.
The following table details the Group’s trade and other receivables exposure to credit risk with ageing
analysis. Amounts are considered ‘past due’ when the debt has not been settled, with the terms and
conditions agreed between the Consolidated Entity and the counter party to the transaction.
Receivables that are past due are assessed for impairment is ascertaining solvency of the debtors and
are provided for where there are specific circumstances indicating that the debt may not be fully
recoverable by the Group.
Trading terms
2019
Trade receivables
2018
Trade receivables
Gross amount Past due and
impaired
Within initial
trade terms
105,271
82,719
22,552
129,395
40,045
89,350
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
8.
FINANCIAL ASSETS
Financial assets at fair value through profit or loss (listed
investments)
Financial assets at fair value through profit or loss (unlisted
investments)
Total financial assets
Movements:
Opening balance
Acquisition of equity securities (non-cash)
Acquisition of equity securities (cash)
Disposal of equity securities
2019
$
2018
$
1,277,635
2,710,281
5,260
5,029
1,282,895
2,715,310
2,715,310
1,539,175
231
5,029
-
-
172,641
(295,890)
Fair value gain/(loss) through profit or loss
(1,432,646)
1,294,355
Closing balance
1,282,895
2,715,310
Financial assets comprise investments in the ordinary issued capital of various entities. There are no
fixed returns or fixed maturity dates attached to these investments. The fair value of listed
investments is calculated with reference to current market prices at balance date.
9.
LOANS RECEIVABLE
Caudillo Resources SA (a)
Allowance for expected credit loss (a)
Total loan receivables
1,406,771
1,406,771
(1,406,771)
(1,406,771)
-
-
a)
The Consolidated Entity’s wholly owned subsidiary Jakaranda Minerals Limited (“Jakaranda”)
previously provided a draw-down facility (“First Loan”) up to $650,000 to Caudillo Resources SA
(“Caudillo”), which is included in this balance. The First Loan and interest (LIBOR + 2%) was
required to be repaid in cash by 21 February 2013, or Jakaranda may elect to convert the First
Loan into an 80% interest in the issued capital of Caudillo. At 30 June 2014, this draw-down
facility had been utilised. The Consolidated Entity intends to elect to convert the First Loan into
an 80% equity interest in Caudillo, and the execution of this is currently in the process of being
completed.
The Consolidated Entity agreed to provide further draw-down facilities from Jakaranda to
Caudillo for $650,000 and $150,000 respectively (“Second Loan” and “Third Loan”). The Second
Loan and Third Loan and interest (LIBOR + 2%) is repayable, at the election of Caudillo, by way
of:
(i)
(ii)
cash; or
subject to Caudillo and Jakaranda obtaining all necessary shareholder and regulatory
approvals, the issue to Jakaranda of fully paid ordinary shares in the capital of Caudillo
based on a deemed issue price per Caudillo share of 100 (Argentinean pesos).
Until such time as the First Loan, Second Loan and Third Loan are repaid or converted to an
equity interest in Caudillo the Consolidated Entity has conservatively provided for the non-
recovery of the loans in full. As a result of this, an impairment expense of Nil (30 June 2018:
$4,952) has been recognised in the Statement of Profit or Loss and Other Comprehensive
Income.
39
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
10. EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation expenditure
Exploration and evaluation expenditure - provision for
impairment
Net carrying amount exploration and evaluation
Reconciliation of carrying amounts
Balance at 1 July
Exploration expenditure incurred
Impairment of exploration expenditure
R&D tax incentive
Balance at 30 June
2019
$
2018
$
9,588,768
9,217,435
(9,588,768)
(9,217,435)
-
-
-
-
371,333
(371,333)
-
-
522,113
(205,659)
(316,454)
-
11. PLANT AND EQUIPMENT
At cost
Accumulated depreciation
42,608
36,973
(33,590)
(33,582)
Net carrying amount exploration and evaluation
9,018
3,391
Reconciliation of carrying amounts
Balance at 1 July
Additions
Depreciation expense
Foreign exchange movements
Balance at 30 June
12. TRADE AND OTHER PAYABLES
Trade payables
Other payables and accruals
Total trade and other payables
3,391
7,908
(2,281)
-
9,018
11,884
-
(8,420)
(73)
3,391
358,443
467,089
267,470
187,272
625,913
654,361
Trade payables are non-interest bearing and are normally settled on 30 day terms.
13. PROVISIONS
Current
Employee benefits
Total provisions
69,029
69,029
51,522
51,522
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2019
2018
2019
2018
No. Shares No. Shares
$
$
14. ISSUED CAPITAL
Share capital
Ordinary shares fully paid
329,289,708
329,289,708
55,675,919
55,675,919
Opening balance at 1 July
329,289,708
329,289,708
55,675,919
55,675,919
Ordinary shares issued
Share issue costs
-
-
-
-
-
-
-
-
Closing balance at 30 June
329,289,708
329,289,708
55,675,919
55,675,919
Terms and Conditions
Holders of ordinary shares are entitled to dividends as declared from time to time and are entitled to
one vote per share at shareholder meetings. In the event of winding up of the Consolidated Entity,
ordinary shareholders rank after all other shareholders and creditors and are fully entitled to any
proceeds of liquidation.
Capital risk management
Capital managed by the Board includes shareholder equity, which was $55,675,919 at 30 June 2019
(2018: $55,675,919). The Consolidated Entity’s objectives when managing capital are to safeguard its
ability to continue as a going concern, so that it may continue to provide returns to shareholders and
benefits to other stakeholders. The Company’s capital includes ordinary share capital and financial
liabilities, supported by financial assets.
Due to the nature of the Consolidated Entity’s activities, being mineral exploration, it does not have
ready access to credit facilities, with the primary source of funding being equity raisings. Accordingly,
the objective of the Consolidated Entity’s capital risk management is to balance the current working
capital position against the requirements of the Consolidated Entity to meet exploration programmes
and corporate overheads.
15. RESERVES
Reserves
Share based payment reserve (a)
Foreign currency translation reserve (b)
Total reserves
(a) Share based payment reserve
Reserve balance at beginning of year
Reserve balance at end of year
(b) Foreign currency translation reserve
2019
$
2018
$
5,808,481
5,808,481
(1,616,482)
(1,585,594)
4,191,999
4,222,887
5,808,481
5,808,481
5,808,481
5,808,481
Reserve balance at beginning of year
(1,585,594)
(1,518,534)
Foreign currency exchange differences arising on
translation of foreign operations
(30,888)
(67,060)
Reserve balance at end of year
(1,616,482) (1,585,594)
Exchange differences relating to the translation from the functional currencies of the Consolidated
Entity’s foreign controlled entities into Australian dollars are recognised directly in the foreign currency
translation reserve.
41
CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
16. ACCUMULATED LOSSES
Accumulated Losses
Accumulated losses at 1 July
Net (loss)/profit attributable to members
Balance at 30 June
2019
$
2018
$
(58,715,162)
(55,517,364)
(55,517,364)
(55,690,663)
(3,197,797)
173,299
(58,715,161) (55,517,364)
17. EARNINGS/(LOSS) PER SHARE
(a)
(Loss)/Profit used in calculating (loss)/earnings per
share
Net loss from continuing operations attributable to ordinary
equity holders of the parent
(3,197,797)
173,299
Net loss attributable to ordinary equity holders of the parent for
basic earnings
(3,197,797)
173,299
(b)
Weighted average number of shares outstanding
during the year used in the calculation of:
No.
No.
Basic earnings/(loss) per share
329,289,708
329,289,708
Diluted earnings/(loss) per share
Basic earnings/(loss) per share
Continuing operations
Diluted earnings/(loss) per share
329,289,708
329,289,708
Cents per
share
Cents per
share
(0.97)
0.05
Continuing operations
(0.97)
0.05
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
18. COMMITMENTS
Office Rental Commitments
The Consolidated Entity entered into a sub-lease for office premises for a period of 8 years terminating
on 31 March 2020. On 15 April 2019 the Consolidated Entity terminated its sub-lease for office
premises and as a result there are no office rental commitments as at 30 June 2019.
Within one year
Between one and five years
Longer than five years
Total commitments
2019
$
2018
$
-
-
-
-
132,056
99,042
-
231,098
19. CONTIGENT ASSETS AND LIABILITIES
The Consolidated Entity has no contingent liabilities or assets at the year end (30 June 2018: nil).
20. CONTROLLED ENTITIES
Details of Cauldron Energy Limited’s subsidiaries are:
Name
Country of
Incorporation
Date/Company
of
Incorporation
Shares
Ownership
Interest
Investment
Carrying
Amount
Ronin Energy Ltd
Australia
24 April 2006
Cauldron Minerals Ltd
Australia
24 April 2006
Jakaranda Minerals Ltd
Australia
24 April 2006
Raven Minerals Ltd
Australia
24 April 2006
Ord
Ord
Ord
Ord
Cauldron Energy (Bermuda)
Limited
Bermuda
2 February 2012
Ord
Cauldron Energy (SL) Limited Sierra Leone
12 March 2012
Ord
Total Investment
2019
%
100
2018
%
100
2019
$
5
2018
$
5
100
100
100
100
100
100
100
100
100
100
1
1
5
1
1
1
1
5
1
1
14
14
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2019
$
2018
$
21. CASH FLOW INFORMATION
(a) Reconciliation of cash flows from continuing
operations with profit/(loss) from ordinary activities
after income tax
(Loss)/profit from continuing operations
(3,197,797)
173,299
Non-cash items:
Depreciation
Equity settled share based payments
2,281
8,420
-
-
Net fair value loss/(gain) on financial assets
1,432,647
(1,294,355)
Realised gain on financial assets
Impairment losses
Change in operating assets and liabilities:
-
(608,289)
419,296
232,409
Decrease/(increase) in trade and other receivables
389,082
(55,672)
Increase in trade and other creditors
Increase/(decrease) in provisions
69,394
122,168
17,508
(7,033)
Net cash flows used in operating activities
(867,589)
(1,429,053)
(b) Reconciliation of cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents includes cash on hand
and in banks and investments in money market instruments, net of outstanding bank overdrafts.
Cash and cash equivalents at the end of the financial year as shown in the cash flow statement
is reconciled to the related items in the statement of financial position as follows:
Cash at bank and in hand
526,681
1,950,436
Cash for reconciliation of cash flow statement
526,681
1,950,436
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
22. FINANCIAL RISK MANAGEMENT
Financial risk management
The Consolidated Entity’s financial instruments consist mainly of deposits with banks, trade and other
receivable, loan receivables, trade and other payables and shares in listed and unlisted companies.
The Consolidated Entity does not speculate in the trading of derivative instruments.
The totals for each category of financial instruments, measured in accordance with AASB 9 are as
follows:
Financial assets
Cash and cash equivalents (note 6)
Financial assets at fair value through profit or loss (listed
investments) (note 8)
Financial assets at fair value through profit or loss (unlisted
investments) (note 8)
Trade and other receivables (note 7)
Total Financial Assets
Financial liabilities
Trade and other payables (note 12)
Total financial liabilities
Financial risk management policies
2019
$
2018
$
526,681
1,950,436
1,277,635
2,710,281
5,260
5,029
29,105
418,188
1,838,681
5,083,934
625,913
654,361
625,913
654,361
The Consolidated Entity’s activities expose it to a variety of financial risks: market risk (including
interest rate risk), credit rate risk and liquidity risk.
The Consolidated Entity’s overall risk management program focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the financial performance of the
Consolidated Entity. The Consolidated Entity uses different methods to measure different types of risk
to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign
exchange and other price risks and aging analysis for credit risk. Risk management is carried out by
the Board and they provide written principles for overall risk management.
Financial risk exposures and management
The main risks arising from the Consolidated Entity’s financial instruments are credit risk, liquidity risk
and market risk consisting of interest rate risk, foreign currency risk and equity price risk.
(a)
Foreign currency risk
The Consolidated Entity undertakes certain transactions denominated in foreign currencies, hence
exposures to exchange rate fluctuations arise. Given the few transactions the Board does not consider
there to be a need for policies to hedge against foreign currency risk. The Consolidated Entity’s has
no significant exposure to foreign currency risk as at the reporting date.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
(b)
Interest rate risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end
of the reporting period whereby a future change in interest rates will affect future cash flows or the
fair value of fixed rate financial instruments. Cash and cash equivalents on deposit at variable rates
expose the Consolidated Entity to cash flow interest rate risk. The Consolidated Entity is exposed to
movements in market interest rates on short term deposits. The policy is to monitor the interest rate
yield curve out to 120 days to ensure a balance is maintained between the liquidity of cash assets and
the interest rate return.
The effect on profit/(loss) and equity as a result of changes in the interest rate:
Change in loss:
Increase in interest rate by 200 basis points
Decrease in interest rate by 200 basis points
2019
$
2018
$
10,534
39,009
(10,534)
(39,009)
The above interest rate sensitivity analysis has been performed on the assumption that all other
variables remain unchanged.
(c) Price risk
The Consolidated Entity is exposed to equity securities price risk. This arises from investments held
by the Consolidated Entity and classified on the statement of financial position as current financial
assets at fair value through profit or loss. The Consolidated Entity is not exposed to commodity price
risk.
To manage its price risk arising from investments in equity securities, the Consolidated Entity
diversifies its portfolio which is done in accordance with the limits set by the Consolidated Entity.
The majority of the Consolidated Entity’s equity investments are publicly traded on the ASX.
The table below summarises the impact of increases/decreases of the index on the Consolidated
Entity’s post tax profit/(loss) for the year and on equity. The analysis is based on the assumption that
the equity indexes had increased/decreased by 20% (2018 – 20%) with all other variables held
constant and all the Consolidated Entity’s equity instruments moved according to the historical
correlation with the index.
Index
ASX listed
(d) Credit risk
Impact on Post-Tax Profit
or (Loss)
2019
$
2018
$
255,527
542,056
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the consolidated entity. The consolidated entity has a strict code of credit, including
obtaining agency credit information, confirming references and setting appropriate credit limits. The
consolidated entity obtains guarantees where appropriate to mitigate credit risk. The maximum
exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net
of any provisions for expected credit loss of those assets, as disclosed in the statement of financial
position and notes to the financial statements. The consolidated entity does not hold any collateral.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
The consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit
losses to trade receivables through the use of a provisions matrix using fixed rates of credit loss
provisioning. These provisions are considered representative across all customers of the consolidated
entity based on recent sales experience, historical collection rates and forward-looking information
that is available.
The credit quality of financial assets that are neither past due nor impaired can be assessed by
reference to external credit ratings:
Financial assets
Cash and cash equivalents (note 6)
Trade and other receivables (note 7)
Total Financial Assets
(e) Liquidity risk
2019
$
2018
$
526,681
1,950,436
29,105
418,188
555,786
2,368,624
The Consolidated Entity manages liquidity risk by maintaining adequate reserves by continuously
monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and
liabilities.
Financial instrument composition and maturity analysis
The table below reflects the undiscounted contractual settlement terms for financial instruments of a
fixed period of maturity, as well as management’s expectations of the settlement period for all other
financial instruments.
Maturity analysis
Year ended 30 June 2019
Financial Assets
Within 1
Year
$
1 to 5
Years
$
Over 5
Years
$
Total
$
Cash and cash equivalents (note 6)
526,681
Financial assets at fair value through profit
or loss (note 8)
Receivables and loans (note 7 and 9)
Total financial assets
Financial liabilities
Trade and other payables (note 12)
Total financial liabilities
Net maturity
Year ended 30 June 2018
Financial Assets
1,282,895
29,105
1,838,681
625,913
625,913
1,212,768
Cash and cash equivalents (note 6)
1,950,436
Financial assets at fair value through profit
or loss (note 8)
2,715,310
Receivables and loans (note 7 and 9)
418,188
Total financial assets
5,083,934
-
-
-
-
-
-
-
-
-
-
-
-
526,681
- 1,282,895
-
29,105
- 1,838,681
-
-
625,913
625,913
- 1,212,768
- 1,950,436
- 2,715,310
-
418,188
- 5,083,934
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
Maturity analysis
Financial liabilities
Within 1
Year
$
1 to 5
Years
$
Over 5
Years
$
Total
$
Trade and other payables (note 12)
Total financial liabilities
654,361
654,361
Net maturity
4,429,573
-
-
-
-
-
654,361
654,361
- 4,429,573
(f)
Fair value estimation
The fair value of financial assets and liabilities must be estimated for recognition and measurement or
for disclosure purposes. The Directors consider that the carrying amount of financial assets and
financial liabilities recorded in the financial statements approximates their fair values as the carrying
value less impairment provision of trade receivables and payables are assumed to approximate their
fair values due to their short-term nature.
Financial Instruments Measured at Fair Value
The financial instruments recognised at fair value in the statement of financial position have been
analysed and classified using a fair value hierarchy reflecting the significance of the inputs used in
making the measurements. The fair value hierarchy consists of the following levels:
▪
▪
▪
quoted prices in active markets for identical assets or liabilities (Level 1);
inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and
inputs for the asset or liability that are not based on observable market data
(unobservable inputs) (Level 3)
Level 1
Level 2
Level 3
Total
$
$
$
$
Year ended 30 June 2019
Financial Assets:
Financial assets at fair value through profit
or loss (note 8)
Year ended 30 June 2018
Financial Assets:
Financial assets at fair value through profit
or loss (note 8)
23. OPTIONS OVER UNISSUED SHARES
1,282,895
-
- 1,282,895
2,715,310
-
- 2,715,310
The following refers to options issued by the Company, other than those issue as share based payment
transactions.
Options granted, expired, lapsed or exercised during the year
There were no unlisted options granted or exercised during the year ended 30 June 2019.
During the year ended 30 June 2019, 20 million options having an exercise price of $0.08 and an expiry
of 31 December 2018 lapsed.
Options on issue at 30 June 2019
The outstanding balance of options at 30 June 2019 is Nil (2018: 20,000,000).
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
24. PARENT ENTITY DISCLOSURES
Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Equity
Issued capital
Accumulated loss
Option premium reserve
Total equity
Financial Performance
(Loss)/profit of parent entity
Total comprehensive (loss)/profit of the parent entity
Loans to Controlled Entities
2019
$
2018
$
544,175
2,356,280
1,291,913
2,727,586
1,836,088
5,083,866
692,634
702,424
692,634
702,424
55,675,919
55,675,919
(60,340,945)
(57,102,957)
5,808,480
5,808,480
1,143,454
4,381,442
(3,197,797)
(3,228,685)
173,299
106,239
Loans are provided by the Parent Entity to its controlled entities for their respective operating activities.
Amounts receivable from controlled entities are non-interest bearing with no fixed term of repayment.
The eventual recovery of the loan will be dependent upon the successful commercial application of
these projects or the sale to third parties. Details of loans provided are listed below:
Subsidiaries
Ronin Energy Ltd
Cauldron Minerals Ltd
Jakaranda Minerals Ltd
Raven Minerals Ltd
2019
$
2018
$
23,329
23,329
8,880,764
8,805,567
1,410,255
1,405,055
25,775
25,775
Total value of loans provided to subsidiaries
10,340,123
10,259,726
Commitments
The commitments of the Parent Entity are consistent with the Consolidated Entity (refer to note 18).
Contingent Liabilities and Assets
The contingent liabilities and assets of the Parent Entity are consistent with the Consolidated Entity
(refer to note 19).
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
25. RELATED PARTY INFORMATION
Balances between the company and its subsidiaries which are related parties of the company, have
been eliminated on consolidation and are not disclosed in this note. Details of percentage of ordinary
shares held in subsidiaries are disclosed in note 20 to the financial statements.
Note 20 provides information about the Group’s structure including the details of the subsidiaries and
the holding company. The following table provides the total amount of transactions and outstanding
balances that have been entered into with related parties for the relevant year.
Sales and Purchases between Related Parties
Director related entities
Fe Limited
Fe Limited
Cape Lambert Resources Limited
Cape Lambert Resources Limited
Okewood Pty Ltd
Okewood Pty Ltd
Sales to
related parties
Purchases
from related
parties
Amounts
owed by
related
parties(1)
Amounts owed
to related
parties(1)
2019
2018
2019
2018
2019
2018
2,004
40,671
-
4,058
-
-
-
-
69,828
188,179
-
32,821
42,674
40,671
-
-
-
-
-
-
5,005
13,176
-
-
(1) Amounts are classified as trade receivables and trade payables, respectively.
(2) Amount owed by Fe Limited of $42,674 has been impaired as at 30 June 2019 refer Note 7 to the financial statements.
The amounts paid to Cape Lambert Resources Limited relate to the provision of office facilities to the
Company. The Company is in the process of reviewing the commerciality and authorisation of
amounts paid and reserves all rights in this regard.
Mr Antony Sage is a director of Cape Lambert Resources Limited and Okewood Pty Ltd. Messrs Antony
Sage and Nicholas Sage are directors of Fe Limited.
Sales to and purchases from director related entities are for the reimbursement of employee,
consultancy, occupancy costs and other costs.
Loans between Related Parties
There were no loan made to Cauldron Energy Limited by directors and entities related to them during
the year ended 30 June 2019 and 30 June 2018.
The ultimate parent
The ultimate parent of the Group is Cauldron Energy Limited which is based in and listed in Australia.
Terms and conditions of transactions with related parties other than KMP
The sales to and purchases from related parties are made on terms equivalent to those that prevail
in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free
and settlement occurs in cash. There have been no guarantees provided or received for any related
party receivables or payables. For the year ended 30 June 2019, the Group has not recorded any
impairment of receivables relating to amounts owed by related parties (2018: nil). This assessment
is undertaken each financial year through examining the financial position of the related party and
the market in which the related party operates.
Financial Assets
At 30 June 2019, Cauldron held 28,153,112 shares in Fe Limited (ASX: FEL) (2018: 28,153,112) with
a market value of $478,603 (2018: $675,675). Messrs Antony Sage and Nicholas Sage are directors
of FEL.
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CAULDRON ENERGY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
At 30 June 2019, Cauldron held 8,144,910 shares in European Lithium Limited (ASX: EUR) (2018:
8,144,910) with a market value of $700,462 (2018: $1,710,431).
At 30 June 2019, Cauldron held 10,416,667 shares in Cape Lambert Resources Ltd (ASX: CFE) (2018:
10,416,667) with a market value of $93,750 (2018: $312,500). Mr Antony Sage is a director of CFE.
Significant shareholders
Qiu Derong holds a significant interest of 14.44% in the issued capital of Cauldron Energy at 30 June
2019 (30 June 2018: 14.44%). Mr Qiu Derong is a director of Cauldron.
Cape Lambert, via its wholly owned subsidiary Dempsey Resources Pty Ltd (Dempsey), holds a
significant interest of 15.93% (30 June 2018: 15.93%) in the issued capital of Cauldron at 30 June
2019. Mr Antony Sage is a director of Cape Lambert.
Compensation of Key Management Personnel of the Group
Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration
paid or payable to each member of the Consolidated Entity’s key management personnel (“KMP”) for
the year ended 30 June 2019.
The key management personnel compensation comprised of:
Short term employment benefits
Long term employment benefits
Post-employment benefits
2019
$
2018
$
429,664
494,167
4,343
20,235
62,540
42,196
Total key management personnel remuneration
454,242
598,903
26. REMUNERATION OF AUDITORS
Paid or payable to BDO (WA) Pty Ltd for:
Audit and review of financial statements
Audit of Form 5 tenement expenditure report
43,214
-
36,280
1,020
Paid or payable to Abelovich, Polano & Asocados S.R.L for:
Audit of Argentina subsidiary
9,547
9,838
Renumeration of BDO (WA) Pty Ltd for:
Non-audit services
Total auditor's remuneration
-
-
52,761
47,138
27. EVENTS SUBSEQUENT TO REPORTING DATE
No matters or circumstances have arisen since the end of the financial year which significantly
affected or may significantly affect the operations of the Consolidated Entity, the results of those
operations, or the state of affairs of the Consolidated Entity in future financial years.
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CAULDRON ENERGY LIMITED
DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 30 JUNE 2019
DIRECTORS' DECLARATION
In accordance with a resolution of the directors of Cauldron Energy Limited, I state that:
1.
In the opinion of the directors:
(a)
the financial statements and notes set out on pages 19 to 50 and the Directors’ Report are
in accordance with the Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the Group’s financial position as at 30 June 2019 and
of its performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations
2001; and
(b)
there are reasonable grounds to believe that the Group will be able to pay its debts as and
when they become due and payable.
2. The Directors draw attention to Note 1 to the financial statements, which includes a statement
of compliance with International Financial Reporting Standards.
3. The Directors have been given the declarations by the chief executive officer and chief financial
officer for the year ended 30 June 2019 required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
Mr Simon Youds
Chairman
27 September 2019
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Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
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INDEPENDENT AUDITOR'S REPORT
To the members of Cauldron Energy Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Cauldron Energy 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 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 report,
including a summary of significant accounting policies 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 ended on that date; 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 Group in accordance with 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.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the group’s
ability to continue as a going concern and therefore the group may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
matter.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
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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. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Financial assets held at fair value through profit or loss
Key audit matter
How the matter was addressed in our audit
The Group holds investments in listed and
unlisted entities classified as financial assets
at fair value through profit or loss, as
disclosed in Note 8 to the financial report.
In accordance with Australian Accounting
Standards, the investments are required to be
carried at their fair value at reporting date,
and any associated fair value movements
reflected in profit or loss.
We considered this to be a key audit matter
because of the significance of the investment
balance, representing 69% of total assets of
the Group.
Refer to Note 1(i), Note 8 and Note 22 to the
financial report for disclosures on the
Financial Assets measured at fair value
through profit and loss.
Our audit procedures included, but were not
limited to the following:
(cid:127)
(cid:127)
(cid:127)
(cid:127)
Re-calculating the valuation of the
investments held at reporting date based
on closing market prices;
Agreeing the closing balance of shares held
to supporting documentation;
Re-calculating the unrealised fair value
movements on investments held at
reporting date; and
Assessing the adequacy of the related
disclosures in Note 1(i), Note 8 and Note 22
to the financial report.
Other information
The directors are responsible for the other information. The other information comprises the
information 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 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 has 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 (http://www.auasb.gov.au/Home.aspx) at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.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 in pages 14 to 18 of the directors’ report for the
year ended 30 June 2019.
In our opinion, the Remuneration Report of Cauldron Energy 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.
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BDO Audit (WA) Pty Ltd
Phillip Murdoch
Director
Perth, 27 September 2019
CAULDRON ENERGY LIMITED
ASX ADDITIONAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2019
ASX ADDITIONAL INFORMATION
Additional information required by ASX Listing Rules and not shown elsewhere in the report is set out
below. The information is current as of 16 September 2019.
1.
CORPORATE GOVERNANCE
The Company’s Corporate Governance Statement is available on the corporate governance page on
the Company’s website at http://cauldronenergy.com.au/our-company/corporate-governance/.
2.
SUBSTANTIAL SHAREHOLDERS
The names of the substantial shareholders listed in the Company’s register as at 16 September
2019:
Shareholder
Dempsey Resources Pty Ltd
Mr Derong Qiu
Joseph Energy (Hong Kong) Limited
Starry World Investment Ltd
Sky Shiner Investment Ltd
Yidi Tao
Number of
shares held
52,470,036
47,544,710
41,205,500
33,898,318
31,400,000
31,250,000
3.
NUMBER OF SHAREHOLDERS AND OPTION HOLDERS
Shares:
As at 16 September 2019 there were 1,355 shareholders holding a total of 329,289,708 fully paid
ordinary shares.
Options:
There are nil options remaining on issue.
No options were issued or exercised during the year.
Twenty million (20,000,000) options having an exercise price of $0.08 and an expiry of 31 December
2018 lapsed during the year.
4.
VOTING RIGHTS
Ordinary Shares:
In accordance with the Company’s Constitution, on a show of hands every member present in person
or by proxy or attorney or duly authorised representative has one vote. On a poll every member
present in person or by proxy or attorney or duly authorised representative has one vote for every
fully paid ordinary share held.
Options:
Holders of options do not have a right to vote.
Restricted Securities:
The Company has no shares on issue subject to escrow.
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CAULDRON ENERGY LIMITED
ASX ADDITIONAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2019
5.
DISTRIBUTION OF EQUITY SECURITIES
The distribution of members and their holdings of securities in the Company as at 16 September
2019 were as follows:
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
TOTAL
Number of
shareholders
185
421
250
388
111
Fully Paid
Ordinary Shares
83,982
1,102,592
1,996,928
13,746,971
312,359,235
1,355
329,289,708
6.
NON-MARKETABLE PARCELS
As at 16 September 2019, there were 1,062 holders (each holding less than 29,412 fully paid ordinary
shares) or less than a marketable parcel of ordinary shares.
7.
TWENTY LARGEST SHAREHOLDERS
The names of the twenty largest holders of ordinary fully paid shares at 16 September 2019 are set
out below:
Name
Dempsey Resources Pty Ltd
Mr Derong Qiu
Joseph Energy (Hong Kong) Limited
Starry World Investment Ltd
Sky Shiner Investment Ltd
Yidi Tao
Citicorp Nominees Pty Ltd
Mr Antony Sage
Capeline Nominees Pty Ltd
BNP Paribas Nominees Pty Ltd
Lanoti Pty Ltd
JP Morgan Nominees Australia
Mr Yuanrong Luo
Sams Watchmaker Jeweller Pty Ltd
M & K Korkidas Pty Ltd
Canifare Pty Ltd
Mrs Barbara Kay Alessi
Mr Alan Brien & Mrs Melinda Brien
Nuveen (Shanghai) Asset Management Co Ltd
Health Communications Australia Pty Ltd
Number of
ordinary
shares held
52,470,036
47,544,710
41,205,500
33,898,318
31,400,000
31,250,000
10,180,245
5,894,600
4,172,864
3,999,749
3,203,775
2,824,297
2,726,257
2,600,000
2,499,466
2,017,450
1,930,000
1,918,101
1,562,500
1,069,967
% of
issued
shares
15.93%
14.44%
12.51%
10.29%
9.54%
9.49%
3.09%
1.79%
1.27%
1.22%
0.97%
0.86%
0.83%
0.79%
0.76%
0.61%
0.59%
0.58%
0.48%
0.32%
284,367,835
86.36%
57
CAULDRON ENERGY LIMITED
ASX ADDITIONAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2019
8.
RESTRICTED SECURITIES
The Company has no restricted securities on issue.
9.
INTERESTS IN TENEMENTS
Tenement Reference
Project & Location
Interest
E08/1489
E08/1490
E08/1493
E08/1501
E08/2017
E08/2081
E08/2205
E08/2385
E08/2386
E08/2387
E08/2774
393/2010
140/2007
141/2007
142/2007
143/2007
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
YANREY – WESTERN AUSTRALIA
CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
144/2007-581/2009
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
176/1997
232/2007
270/1995
271/1995
43/2007
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
RIO COLORADO PROJECT – CATAMARCA, ARGENTINA
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
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