RESOURCE STAR LIMITED
ABN 71 098 238 585
ANNUAL FINANCIAL REPORT
for the year ended 30 June 2014
CONTENTS
CORPORATE INFORMATION
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CORPORATE GOVERNANCE STATEMENT
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLDIATED STATEMENT OF CASH FLOWS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RESOURCE STAR LIMITED
ASX ADDITIONAL INFORMATION
Page
1
2
13
14
25
26
27
28
29
54
55
57
RESOURCE STAR LIMITED
ABN 71 098 238 585
ANNUAL FINANCIAL REPORT 30 June 2014
CORPORATE INFORMATION
DIRECTORS
REGISTERED OFFICE
Mr A Bell (Non-Executive Chairman)
Level 2, 330 Churchill Avenue
Mr R Parker (Non-Executive Director)
Subiaco WA 6008
Mr M Walker (Non-Executive Director)
Mr G Karantzias (Non-Executive Director)
COMPANY SECRETARY
Mr S Cheema
PRINCIPAL PLACE OF BUSINESS
Level 2, 330 Churchill Avenue
Subiaco WA 6008
AUDITORS
HLB Mann Judd (Vic Partnership)
Level 9, 575 Bourke Street
Melbourne VIC 3000
SOLICITORS
Steinepreis Paganin
6 Milligan St
Perth WA 6000
SHARE REGISTRY
Computershare Investor Services Pty Limited
Level 2, 45 St Georges Terrace
Perth WA 6000
INTERNET ADDRESS
www.resourcestar.com.au
ASX CODES
Shares RSL
Options
RSLO
COUNTRY OF INCORPORATION AND DOMICILE
Australia
RESOURCE STAR LIMITED
ABN 71 098 238 585
1
ANNUAL FINANCIAL REPORT 30 June 2014
DIRECTORS’ REPORT
Your directors submit the annual financial report together with the consolidated financial statements of Resource Star
Limited (“the Company”) which include the financial statements of the Group. The Group comprises the Company and the
entities it controlled during the year ended and as at 30 June 2014. In order to comply with the provisions of the
Corporations Act 2001, the directors report as follows:
Directors
The names of directors who held office during or since the end of the year and until the date of this report are as follows.
Directors were in office for this entire period unless otherwise stated.
Names, qualifications, experience and special responsibilities
A Bell, (Non-Executive Chairman) MA, LLB Appointed 6 August 2007
Mr Bell was appointed director and chairman on 6 August 2007. Mr Bell is a former Mining Analyst, Fund Manager, and
Investment Banker and is Chairman of Regency Mines plc and of Red Rock Resources plc, both companies listed on the
AIM market of the London Stock Exchange.
Mr Bell was the Company’s acting Chief Executive Officer from 5 July 2010 to 1 May 2011.
Mr Bell is currently a non-executive director of the following ASX listed company:
(cid:1)
Jupiter Mines Limited – May 2008 to current
During the past three years he has not served as a director of any other ASX listed companies.
R Parker, (Non-Executive Director) Appointed 2 July 2014
Mr Parker is a businessman based in Western Australia, with over twenty years in managing and developing various
projects in Australia. His earlier experience in the transport and mining industries included management positions
responsible for plant and maintenance, health and safety, and mine safety.
During the past three years he has not served as a director of any other ASX listed companies.
M Walker, (Non-Executive Director) Appointed 1 August 2014
Mr Walker has extensive experience in public company management and in the provision of corporate advice. Specialising
in the natural resources sector, Mr Walker has served as executive Chairman or Managing Director for public companies
with mineral interests in North America, South America, Africa, Eastern Europe, Australia and Asia.
Currently he serves as a director of West Peak Iron Limited (ASX: WPI) and Chairman of Blue River Mining Limited. He is
a director of boutique investment banking firm Alto Capital based in Perth, Western Australia and Chairman of corporate
advisory firm Cicero Corporate Services based in London, UK. For twenty years Mr Walker has served as a director of his
family livestock business, which was sold in part to Australia’s largest beef cattle producer the Australian Agricultural
Company Limited (ASX: AAC) in 2006, described by AAC at the time as “the world’s largest and most credentialed full
blood herd outside of Japan and is viewed as Australia’s premier Wagyu Business”. Mr Walker is a member of the
Australian Institute of Company Directors and holds a Bachelor of Business from the University of Technology, Sydney.
G Karantzias, (Non-Executive Director) Appointed 18 December 2013
Mr Karantzias is a director of Alpha Securities Pty Ltd, a boutique financial services company based in Sydney. He has
over twenty years’ experience in a variety of senior roles in the financial industry, including as Head of Operations at Etrade
Australia Securities Ltd.
During the past three years he has not served as a director of any other ASX listed companies.
RESOURCE STAR LIMITED
ABN 71 098 238 585
2
ANNUAL FINANCIAL REPORT 30 June 2014
DIRECTORS’ REPORT (continued)
C Burrell, (Executive Director) LLB, Graduate Diploma in Legal Practice Resigned 18 December 2013
C Guy, (Non-Executive Director) BSc Resigned 2 July 2014
Company secretary
S Cheema, B.Bus Appointed 12 September 2014
Mr Cheema was appointed Company Secretary of Resource Star effective 12th September 2014. He has experience with
Australian, American, Mongolian and West African based mineral exploration companies and has previously served as
Company Secretary for Mongolian Resource Corporation Limited (ASX: MUB) and Black Fire Minerals Limited (ASX: BFE).
Currently Mr Cheema is Company Secretary for West Peak Iron Limited (ASX: WPI) and Vesuvius Minerals Limited. Mr
Cheema has completed a Bachelor of Commerce majoring in Accounting at Curtin University and is currently enrolled in
the CPA program.
Mr Cheema is not an executive of the Company.
Ms E Kestel resigned as Company Secretary effective 12th September 2014.
Interest in the shares and options of the company
As at the date of this report, the interests of the directors in the shares and options of the Company were:
A Bell
R Parker
M Walker
G Karantzias
C Burrell
C Guy
Number of
Ordinary Shares
65,335,134
Nil
50,000,000
Nil
Nil
Nil
Number of
Options
5,213,290
Nil
14,986,544
Nil
Nil
Nil
• The interest in shares and options displayed for Mr Bell are the shares and options owned by Red Rock Resources
plc. Mr Bell is a director of Red Rock Resources plc.
Share options
Unissued shares
As at the date of this report, there were 77,974,534 (2013: nil) unissued ordinary shares under options. Details of unissued
ordinary shares under options are:
Unissued ordinary shares under options
30 June 2014
Reporting date
Unlisted options exercisable as follows:
(cid:1) Exercisable at $0.004 and expire 31 March 2016.
Total
78,000,000
78,000,000
77,974,534
77,974,534
Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company or any
related body corporate or in the interest issue of any other registered scheme.
There have been no unissued shares or interests under option of any controlled entities within the Group during or since
reporting date. For details of options issued to directors and executives as remuneration, refer to the Remuneration
Report. No person entitled to exercise the option had or has any right by virtue of the option to participate in any share
issue of any other body corporate.
Dividends
No dividends have been paid or declared since the start of the year and the directors do not recommend the payment of a
dividend in respect of the year ended 30 June 2014 (30 June 2013: $Nil).
RESOURCE STAR LIMITED
ABN 71 098 238 585
3
ANNUAL FINANCIAL REPORT 30 June 2014
DIRECTORS’ REPORT (continued)
Principal activities
The principal activity of the entities within the Group during the year was the exploration for natural resources. There have
been no other significant changes in the nature of those activities during the period.
Review of operations
The Company’s main focus was building its cash position and strengthening its balance sheet and in the process
increasing its shareholder base as new shareholders came in to support the future growth of the business.
Resource Star successfully carried out a one for one non-renounceable Entitlement Offer at $0.004 per Share to raise
$624,000 before costs during the quarter.
The Company held $460,485 in cash as at 30 June 2014, compared to $13,240 at 30 June 2013. Fund raising for the
twelve months to 30 June 2014 was $641,000 before costs. The Company has cash resources and liquidity for the near
term but as it looks forward is still reliant on the ongoing support of significant shareholders and directors.
The year ended June 2014 was challenging for the Company with limited funding opportunities and with the decision not to
pursue the proposed new oil project on the agreed terms, the focus was on disciplined, restraint and cost cutting measures
pending identification of a suitable transaction.
During the twelve (12) month period to 30 June 2014 the Company completed the following:
Ilomba Hill Rare Earth Project – Malawi
No work has been undertaken; other than care and maintenance on EPL0264/08.
Spinifex Uranium Project
The Spinifex project continues to be identified as the near-term priority for Resource Star and the Company is currently
reviewing the minimum expenditure condition of $70,000 by October 2014.
The reports and applications have been submitted to the Department of Mines for an extension of term.
Northern Territory Tenements
Work completed on the Northern Territory tenements were of a developmental nature, as opposed to exploratory. On this
basis there are no exploration activities to report during in relation to the Northern Territory tenements during the June
2014 quarter.
All tenements in the Northern Territory are applications only.
The Company has until 31 October 2014 to re-apply to the Northern Land Council for the granting of ELA25884 and
ELA271749 at Edith River. There was no exploration expenditure on ELA25884 and ELA271749 during the quarter.
The Application For Consent Pursuant to Section 41(2(b) and in accordance with Section 41(5) and 41(6) of the Aboriginal
Land Rights in respect to Mt Celica Project ELA24414 is still being reviewed by the Northern Land Council.
Operating results for the year
The statement of comprehensive income shows a net loss attributable to members of $614,347 (2013: loss of $3,459,124).
Significant changes in state of affairs
On 26 July 2013, the Company announced finalisation of the Spinifex Uranium Project Acquisition in accordance with the
Agreement for Sale of Mining Assets.
On 2 August 2013, the Company announced that it had entered into a binding terms sheet to acquire a 50% shareholding
in D-Bar Leasing Inc. which holds a 100% working interest in 8 oil producing lease groups, 96 wells covering approximately
2,732 acres located in Abilene, Texas, USA.
On 12 August 2013, the Company announced the lapse of 3,000,000 Unlisted Options previously issued to the Managing
Director due to the significant price differential between the exercise and share price.
On 5 September 2013, the Company announced the issue of 110,000 Unsecured Convertible Note and the subsequent
conversion to 800,000 Fully Paid Ordinary Shares on 13 September 2013 in accordance with the terms and conditions of
the Unsecured Convertible Note Deed.
RESOURCE STAR LIMITED
ABN 71 098 238 585
4
ANNUAL FINANCIAL REPORT 30 June 2014
DIRECTORS’ REPORT (continued)
On 18 December 2013, the Company announced the appointment of Mr G Karantzias as non-executive director. At the
same time Mr C Burrell stepped down as a director.
On 4 February 2014, Resource Star announced the completion and allotment of 20,026,912 fully paid Ordinary Shares
following the receipt of a short term funding application form. Following the allotment, the Ordinary Shares are now a part
of the class of quoted securities.
On 28 May 2014, the Company announced the completion of the non-renounceable entitlement offer to raise up to
$624,000 (before costs) which opened on 8 April 2014 and closed on 19 May 2014.
Significant events after the reporting date
On 2 July 2014, Mr C Guy resigned as a Non-executive director to the Company. Mr R Parker was appointed as Non-
executive director.
On 1 August 2014, Resource Star announced that it has executed a binding terms sheet pursuant to which it has been
granted an exclusive Option to conduct due diligence on Western Australian based cloud services provider Cloud Lands for
the purpose of determining whether to acquire 100% of the issued capital of Cloud Lands. Due diligence continues up to
the date of this report.
On 1 August 2014, Mr M Walker was appointed as Non-executive director to the Company.
On 12 September 2014, Mr S Cheema was appointed as Company Secretary with Ms Eryn Kestel subsequently resigning
as Company Secretary.
On 19 September, Resource Star raised $140,000 before costs through issue of 35,000,000 shares under its placement
capacity which was approved at the 16 September General Meeting of Shareholders.
Other than the above, there has not been any matter or circumstance that has arisen after the end of the reporting period
that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the
state of affairs of the Group in future financial periods.
Likely developments and future results
The management team and Board of Directors (“the Board”) of the Company are continuing to review opportunities
available to the Company and have secured an exclusive Option to acquire 100% of the issued capital of Australian cloud
computing service and infrastructure provider Cloud Lands Digital Fortress Pty Ltd. Due diligence continues up to the date
of this report.
Any additional information has not been provided since the Directors believe that there may be an unreasonable prejudice
to the Company.
Environmental regulation and performance
The Company’s operations are subject to environmental regulations under Commonwealth and State legislation in
Australia and Malawi. The Board believes that the Company has adequate systems in place for the management of its
environmental requirements and is not aware of any breach of those environmental requirements as they apply to the
Group.
Indemnification and insurance of officers and auditors
During the year, the Company paid a premium in respect of a contract insuring the directors of the Company (as named
above), the company secretary and all executive officers of the Company and of any related body corporate against a
liability incurred as a director, secretary or executive officer to the extent permitted by the Corporations Act 2001. The
contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
The Company has not otherwise, during or since the period, except to the extent permitted by law, indemnified or agreed to
indemnify an officer or auditor of the Company or of any related body corporate against a liability incurred as such an
officer or auditor.
Proceedings on behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to
which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those
proceedings.
The Company was not a party to any such proceedings during the year.
RESOURCE STAR LIMITED
ABN 71 098 238 585
5
ANNUAL FINANCIAL REPORT 30 June 2014
DIRECTORS’ REPORT (continued)
Remuneration report (audited)
This report outlines the remuneration arrangements in place for key management personnel of the Company.
The following persons acted as directors during or since the end of the financial year:
Mr A Bell
Mr R Parker
Mr M Walker
Director (non-executive) – appointed 6 August 2007
Director (non-executive) – appointed 2 July 2014
Director (non-executive) – appointed 1 August 2014
Mr G Karantzias
Director (non-executive) – appointed 18 December 2013
Mr C Burrell
Mr C Guy
Director (executive) – appointed 9 April 2013, resigned 18 December 2013
Director (non-executive) – appointed 9 April 2013, resigned 2 July 2014
The term ‘senior management’ is used in this remuneration report to refer to Mr M Walker, Mr R Parker and Mr G
Karantzias.
The Board believes that the remuneration policy is appropriate and effective in its ability to attract and retain the best senior
management to run and manage the Group.
Remuneration philosophy
The performance of the Group depends upon the quality of the directors and senior management. The philosophy of the
Group in determining remuneration levels is to:
- set competitive remuneration packages to attract and retain high calibre employees;
- ensure that there is transparency in setting of corporate arrangements;
-
link executive rewards to shareholders’ value creation; and
- establish appropriate, demanding performance hurdles for variable executive remuneration. Incentives are only paid
once pre-determined KPI’s have been met.
The Board of Directors of the Company is responsible for determining and reviewing compensation arrangements for the
directors and senior management.
The Board of Directors assesses the appropriateness of the nature and amount of remuneration of directors and senior
executives on a periodic basis by reference to relevant employment market conditions with an overall objective of ensuring
maximum stakeholder benefit from the retention of a high quality Board and executive team.
Remuneration structure
In accordance with best practice Corporate Governance, the structure of non-executive director and executive
remuneration is separate and distinct.
Non-executive director remuneration
The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and retain
directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
RESOURCE STAR LIMITED
ABN 71 098 238 585
6
ANNUAL FINANCIAL REPORT 30 June 2014
DIRECTORS’ REPORT (continued)
Remuneration report (audited) (continued)
The ASX Listing Rules specify that the aggregate remuneration of non-executive directors shall be determined from time to
time by a general meeting. The latest determination was at the Annual General Meeting held on 28 February 2007 when
shareholders approved an aggregate remuneration of $210,000 per year.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned
amongst directors is reviewed annually. The Board considers advice from external advisors as well as the fees paid to
non-executive directors of comparable companies when undertaking the annual review process. No external advice was
received during the year.
Each director receives a fee for being a director of the Company.
Senior Management and Executives
Remuneration consists of fixed remuneration and variable remuneration (comprising short-term and long-term incentive
schemes).
Fixed remuneration
Fixed remuneration is reviewed annually by the Board. The process consists of a review of relevant comparative
remuneration in the market and internally and, where appropriate, external advice on policies and practices. The Board has
access to external independent advice, where necessary. No such advice was required during the year.
Variable remuneration
The objective of the short term incentive program is to link the achievement of the Group's operational targets with the
remuneration received by the executives charged with meeting those targets. The total potential short term incentive
available is set at a level so as to provide sufficient incentive to the senior manager to achieve the operational targets and
such that the cost to the Group is reasonable in the circumstances.
Employment contracts
Executives
There are no executive employment contracts as at the date of this report.
Performance of shareholders’ wealth
In considering the Group’s performance and benefits for shareholder wealth, the Board has regard to the following indices
in respect of the current financial year and the previous four financial years:
As at 30 June
Profit / (Loss) per share (cents)
Share price
2014
(0.374)
.003
2013
(2.85)
0.008
2012
(1.25)
0.02
2011
(2.27)
0.05
2010
(2.77)
0.061
The following table provides details of the components of remuneration for each member of the key management
personnel of the Group. All remuneration to Key Management Personnel is valued at the cost to the Group and expensed.
RESOURCE STAR LIMITED
ABN 71 098 238 585
7
ANNUAL FINANCIAL REPORT 30 June 2014
DIRECTORS’ REPORT (continued)
Remuneration report (audited) (continued)
Remuneration of directors and named executives
Table 1: Directors’ remuneration for the years ended 30 June:
A Bell
Director
G Karantzias(1)
Director
C Guy(2)
Director
R Kestel (3)
Director
R Benussi (4)
Director
Total
Short Term
Post Employment
Salary &
Fees
Cash STI
LTI
Non
Monetary
Benefits
Super-
annuation
Retirement
Equity
Options
Other
Total
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
45,000
45,000
-
10,083
10,000
42,020
18,750
-
30,000
-
103,750
97,103
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,688
-
-
-
1,688
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
--
-
-
-
-
-
-
-
-
-
-
-
-
45,000
45,000
-
10,083
10,000
42,020
20,438
-
30,000
-
105,438
97,103
%
Performance
Related
-
-
-
-
-
-
-
-
-
-
-
-
(1) Appointed 18 December 2013 (2) Resigned 2 July 2014 (3) Resigned 27 November 2012 (4) Resigned 31 March 2013
Table 2: Executive Directors’ and named executives remuneration for the period/year ended 30 June:
C Burrell(5)
Director
S Heggen(6)
Managing Director
Total
Grand Total
Short Term
Post Employment
Salary &
Fees
Cash STI
LTI
Non
Monetary
Benefits
Super-
annuation
Retirement
Equity
Options
Other
Total
2013
2014
2013
2014
2013
2014
2013
2014
24,000
7,818
132,381
-
156,381
7,818
260,131
104,921
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,813
-
11,813
-
13,501
-
-
-
-
-
-
-
-
-
-
-
3,120
-
3,120
-
3,120
-
-
-
-
-
-
-
-
-
24,000
7,818
147,314
-
171,314
7,818
276,752
104,921
%
Performance
Related
-
-
2%
0%
-
-
-
-
(5) Resigned 18 December 2013 (6) Resigned 5 April 2013
RESOURCE STAR LIMITED
ABN 71 098 238 585
8
ANNUAL FINANCIAL REPORT 30 June 2014
DIRECTORS’ REPORT (continued)
Remuneration report (audited) (continued)
Remuneration of directors and named executives
Shareholdings of KMP
Shares held in the Company (number)
2014
A Bell
M Walker(7)
G Karantzias(1)
C Guy(2)
R Parker(8)
C Burrell(5)
Total
2013
A Bell
C Burrell(5)
C Guy
R Kestel(3)
R Benussi(4)
S Heggen(6)
Total
Balance at
beginning of
year
01 July 2013
46,908,554
-
-
-
-
-
46,908,554
Balance at
beginning of
year
01 July 2012
45,908,745
-
-
-
1,000,000
-
46,908,745
Exercise
options
Net Change
/ Other
Balance at
date of
resignation
Balance at
30 June
2014
-
-
-
-
-
-
-
Exercise
options
18,426,580
50,000,000
-
-
-
-
68,426,580
Net Change
/ Other
-
-
-
-
-
-
-
Balance at
date of
resignation
-
-
-
-
-
-
-
999,809
-
-
-
-
N/A
N/A
N/A
-
(1,000,000)
(212,074)
1,211,883 (1,212,074)
212,074
65,335,134
50,000,000
-
-
-
-
115,335,134
Balance at
30 June
2013
46,908,554
-
-
N/A
N/A
N/A
46,908,554
(1) Appointed 18 December 2013 (2) Resigned 2 July 2014 (3) Resigned 27 November 2012 (4) Resigned 31 March 2013 (5) Resigned 18 December
2013 (6) Resigned 5 April 2013 (7) Appointed 1 August 2014 (8) Appointed 2 July 2014
Option holdings of KMP
Options held in the Company (number)
2014
A Bell
M Walker(7)
G Karantzias(1)
C Guy(2)
R Parker(8)
C Burrell(5)
Total
2013
A Bell
C Burrell(5)
C Guy(2)
R Kestel(3)
R Benussi(4)
S Heggen(6)
Total
Balance at
beginning of
year
01 July 2013
-
-
-
-
-
-
-
Balance at
beginning of
year
01 July 2012
11,947,648
-
-
-
-
3,000,000
14,947,648
Options
Issued
Options
Forfeited
Balance of
date of
resignation
5,213,290
14,986,544
-
-
-
-
20,199,834
Options
Issued
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Options
Forfeited
(11,947,648)
-
-
-
-
-
(11,947,648)
Balance of
date of
resignation
N/A
N/A
N/A
-
-
(3,000,000)
(3,000,000)
Balance
at
30 June
2014
5,213,290
14,986,544
-
-
-
-
20,199,834
Balance
at
30 June
2013
-
-
-
N/A
N/A
N/A
-
(1) Appointed 18 December 2013 (2) Resigned 2 July 2014 (3) Resigned 27 November 2012 (4) Resigned 31 March 2013 (5) Resigned 18 December
2013 (6) Resigned 5 April 2013 (7) Appointed 1 August 2014 (8) Appointed 2 July 2014
RESOURCE STAR LIMITED
ABN 71 098 238 585
9
ANNUAL FINANCIAL REPORT 30 June 2014
DIRECTORS’ REPORT (continued)
Remuneration report (audited) (continued)
Other transactions with directors
Other transactions with the Company or its controlled entities
The terms and conditions of transactions with Directors and Executives and their related entities were no more
favourable than those available, or which might reasonably be expected to be available, on similar transactions to
non-Director related entities on an arms length basis unless otherwise stated. The aggregate amount recognised
during the year to Specified Directors and Specified Executives and their related entities were as follows:
Red Rock Resources plc
Red Rock Resources Plc (Red Rock) is a substantial shareholder of the Company and holds more than 35% of the
issued capital. The amount owed to Red Rock by the Group at 30 June 2014 was $Nil (2013: $86,806). Interest of
$Nil (2013: $Nil) was due to Red Rock during the period. Post borrowings were non-interest bearing.
George Karantzias
An amount of $10,083 was owing to George Karantzias by the Group at 30 June 2014 for Directors Fees (2013:
$NiL)
Andrew Bell
An amount of $45,000 was owing to Andrew Bell by the Group at 30 June 2014 for Directors Fees (2013: $30,000)
Chris Burrell
There was nothing owing to Chris Burrell by the Group at 30 June 2014 for Directors Fees or any reimbursement of
expenses (2013: $29,000).
Bill Guy
An amount of $42,020 was owing to Bill Guy by the Group at 30 June 2014 for Directors Fees (2013: $10,018).
Ross Kestel
There was nothing owing to Ross Kestel by the Group at 30 June 2014 for Directors Fees or any reimbursement of
expenses (2013: $4,087).
Robert Benussi
There was nothing owing to Ross Kestel by the Group at 30 June 2014 for Directors Fees or any reimbursement of
expenses (2013: $18,333).
RESOURCE STAR LIMITED
ABN 71 098 238 585
10
ANNUAL FINANCIAL REPORT 30 June 2014
DIRECTORS’ REPORT (continued)
Options granted as part of remuneration:
During the 2014 year, 3,000,000 unlisted options previously issued for remuneration expired unexercised. There were no
options granted as part of remuneration
The following table illustrates the number (No.) and weighted average exercise prices of and movements in share options
issued during the year and the prior year:
30 June
2014
No.
30 June
2014
Weighted
average
exercise
price
30 June
2013
No.
30 June 2013
Weighted average
exercise price
Outstanding at the beginning of the year
3,000,000
0.1875
5,500,000
Granted during the year
Forfeited during the year
Outstanding at the end of the year
Exercisable at the end of the year
-
-
-
(3,000,000)
0.1875
(2,550,000)
-
-
-
3,000,000
-
0.1941
-
0.2020
0.1875
There was no outstanding balance as at 30 June 2014 as all options had been forfeited.
The outstanding balance as at 30 June 2013 is represented by:
•
•
•
1,500,000 options over ordinary shares with an exercise price of $0.15 each, exercisable until 1 December 2013;
750,000 options over ordinary shares with an exercise price of $0.20 each, exercisable until 1 December 2013;
750,000 options over ordinary shares with an exercise price of $0.25 each, exercisable until 1 December 2013.
The weighted average remaining contractual life for the share options outstanding as at 30 June 2014 is Nil (2013: 0.42 years).
The weighted average exercise price for options outstanding for the year ending 30 June 2014 was Nil (2013: $0.1875).
The fair value of options granted during the year was $Nil (2013: Nil).
The fair value of options forfeited during the year was $24,451 (2013: $451,972).
The fair value of the equity-settled share options granted under the option plan is estimated as at the date of grant using a
binomial model taking into account the terms and conditions upon which the options were granted.
This concludes the remuneration report, which has been audited.
RESOURCE STAR LIMITED
ABN 71 098 238 585
11
ANNUAL FINANCIAL REPORT 30 June 2014
DIRECTORS’ REPORT (continued)
Directors’ meetings
The number of meetings of directors (including meetings of committees of directors) held during the year and the number
of meetings attended by each director were as follows:
Directors’
Meetings eligible
to attend
Directors’
Meetings
attended
Audit and Risk
Management
Committee
Meetings
eligible to
attend
Audit and Risk
Management
Committee
Meetings
attended
Mr A Bell
Mr R Parker
Mr M Walker
Mr G Karantzias
Mr C Burrell
Mr C Guy
13
-
-
6
7
13
13
-
-
4
5
13
-
-
-
-
-
-
-
-
-
-
-
-
Auditor’s Independence and non-audit services
Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the directors of the Company
with an Independence Declaration in relation to the audit of the annual report. This Independence Declaration is set out on
page 13 and forms part of this directors’ report for the year ended 30 June 2014.
Signed in accordance with a resolution of the Board of Directors
Andrew Bell
Chairman
30 September 2014
RESOURCE STAR LIMITED
ABN 71 098 238 585
12
ANNUAL FINANCIAL REPORT 30 June 2014
Auditor’s Independence Declaration
As lead auditor for the audit of the financial report of Resource Star Limited for the year ended 30 June 2014, I
declare that to the best of my knowledge and belief, there have been no contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b) any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Resource Star Limited and to the entities it controlled during the year.
HLB Mann Judd
Chartered Accountants
Melbourne
30 September 2014
Jude Lau
Partner
CORPORATE GOVERNANCE STATEMENT
CORPORATE GOVERNANCE
The Board of Directors of Resource Star Limited is responsible for establishing the corporate governance framework of the
Group. The Board guides and monitors the business and affairs of the Group on behalf of the shareholders by whom they
are elected and to whom they are accountable.
To ensure that the Board is well equipped to discharge its responsibilities, it has established guidelines and accountability
as the basis for the administration of corporate governance.
CORPORATE GOVERNANCE DISCLOSURES
The Board and management are committed to corporate governance and to the extent that they are applicable to the
Group have followed the Australian Securities Exchange Corporate Governance Council (CGC) published guidelines as
well as its own corporate governance principles and recommendations.
In summary, Resource Star departs from the CGC’s recommendation in six (6) key areas:
•
•
•
•
•
•
Recommendation 2.1
Duriing the year the majority of the Board were not independent. Only one (1) of the three (3) Directors is
considered independent; as one Director is the Executive Director and the other Director is a Director of a
Company which is a Substantial Shareholder of Resource Star Limited.
Recommendation 2.2
The Chair is not deemed to be independent. The current Chair is an Officer of a Company which is a Substantial
Shareholder of Resource Star Limited.
Recommendation 2.4
Resource Star Limited does not have a separate Nomination Committee. The Company is of a size and a level of
current activity that enables the full Board to be able to deal with the matters normally attended to by the
Nomination Committee.
Remuneration levels are set by the Company in accordance with industry standards to attract suitable qualified
and experienced Directors and senior executives.
Recommendation 3.3
Due to the current nature and scale of Resource Star Limited’s activities, the Company is yet to establish
measurable objectives for achieving gender diversity to report against.
Recommendation 4.2
Resource Star Limited has established an Audit Committee which is comprised of the directors the same as the
Board. Whilst this is appropriate for a company the size of Resource Star Limited and with the current level of
activity it does mean that a number of the recommendations are not met – does not consist of non-executive
directors; does not consist of a majority of independent directors and is not chaired by an independent chair. No
meeting was held during the year.
The Company will address this issue in the forthcoming year by appointing an additional member to the
Committee.
Recommendation 8.1
Resource Star Limited currently does not have a separate Remuneration Committee. The Company is of a size
and a level of current activity that enables the full Board to be able to attend to the matters normally attended to by
the Remuneration Committee.
The table below summarises Resource Star Limited’s compliance with the CGC’s recommendations.
Recommendation
Compliance
Yes/No
Principle 1 – Lay Solid Foundations for management and oversight
1.1 Companies should formalise the functions reserved to the Board and those delegated to senior
Yes
executives and disclose those functions.
The Company’s Corporate Governance Polices includes a Board Charter, which discloses the
specific responsibilities of the Board.
RESOURCE STAR LIMITED
ABN 71 098 238 585
14
ANNUAL FINANCIAL REPORT 30 June 2014
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
Recommendation
1.2 Companies should disclose the process for evaluating the performance of senior executives.
The Board monitors the performance of senior management including measuring actual
performance against planned performance.
Compliance
Yes/No
Yes
1.3 Companies should provide the information indicated in Guide to reporting on Principle 1.
Yes
The Company has provided details of any departures from Principle 1 in its Annual Report.
Principle 2 – Structure the board to add value
2.1 A majority of the Board should be independent directors.
During the year only one (1) of the three (3) Board members was independent – one (1)
Director is the Executive Director and the other Director is a Director of a company which is a
Substantial Shareholder of Resources Star Limited.
2.2 The Chair should be an independent director
No
No
The Chair is an officer of a company which is a substantial shareholder.
2.3 The roles of chair and chief executive officer should not be exercised by the same individual.
Yes
The Company has in place a Non-Executive Chairman and an Executive Director so a
segregation of duties exists.
2.4 The board should establish a nomination committee
No
Resource Star Limited is not of a size to justify having a Nomination Committee. Matters
typically dealt with by such a Committee are dealt with by the full Board.
2.5 Companies should disclose the process for evaluating the performance of the board, its
Yes
committees and the individual Directors.
The Board has adopted a policy of evaluating the Board’s performance.
2.6 Companies should provide the information indicated in Guide to reporting on Principle 2.
Yes
The Company has provided details of any departures from Principle 2 in its Annual Report.
Principle 3 – Promote ethical and responsible decision-making
3.1 Companies should establish a code of conduct and disclose the code or a summary of the code
Yes
as to:
3.1.1
the practices necessary to maintain confidence in the Company's integrity;
3.1.2 the practices necessary to take into account their legal obligations and reasonable
expectations of their stakeholders; and
3.1.3 the responsibility and accountability of individuals for reporting or investigating reports of
unethical practices.
The Company’s Corporate Governance Policies include a Directors and Executive officers’
Code of Conduct Policy, which provides a framework for decisions and actions in relation to
ethical conduct in employment.
3.2 Companies should establish a policy concerning diversity and disclose the policy or a summary of
that policy. The policy should include requirements for the board to establish measurable
objectives for achieving gender diversity for the board to assess annually both the objectives and
progress in achieving them.
Yes
The Company has adopted a Diversity Policy.
RESOURCE STAR LIMITED
ABN 71 098 238 585
15
ANNUAL FINANCIAL REPORT 30 June 2014
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
Recommendation
3.3 Companies should disclose in each annual report the measurable objectives for achieving gender
diversity set by the board in accordance with the diversity policy and progress towards achieving
them.
Due to the current nature and scale of Resource Star’s activities, the Board is yet to establish
measurable objectives for achieving gender diversity to report against.
Compliance
Yes/No
No
3.4 Companies should disclose in each annual report the proportion of women employees in the
Yes
whole organisation, women in senior executive positions and women on the board.
During the year Resource Star Limited had one (1) female employee engaged in a clerical role,
one (1) female in a senior position of Company Secretary and no females on the Board.
3.5 Companies should provide the information indicated in Guide to reporting on Principle 3.
Yes
The Company has provided details of any departures from Principle 3 in its Annual Report.
4.1 The Board should establish an audit committee.
Principle 4 – Safeguard integrity in financial reporting
Resource Star Limited has established an Audit and Risk Management Committee. There were
no audit meetings during the year.
4.2 The audit committee should be structured so that it:
(cid:1) Consists only of non-executive directors;
(cid:1) Consists of a majority of independent directors;
(cid:1)
(cid:1) Has at least three (3) members
Is chaired by an independent chair, who is not the chair of the Board; and
The current Committee comprises the same Directors as the Board with all four (4) of the
directors being non-executive. The committee didn’t meet during the year.
The board collectively reviews the audit requirements of the Group. The audit committee is
chaired by an independent non-executive director at all times who is not the chair of the
Board.
4.3 The audit committee should have a formal operating charter.
An Audit and Risk Management Committee Charter has been established and is followed.
4.4 Companies should provide the information indicated in Guide to reporting on Principle 4.
The Company has provided details of any departures from Principle 4 in its Annual Report.
Principle 5 – Make timely and balanced disclosure
5.1 Companies should establish written policies and procedures designed to ensure compliance with
ASX Listing Rule disclosure requirements and to ensure accountability at a senior executive level
for that compliance.
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
The Company has a Continuous Disclosure Policy which is designed to ensure compliance
with the ASX Listing Rules requirements on disclosure and to ensure accountability at a
Board level for compliance and factual presentation of the Company’s financial position.
5.2 Companies should provide the information indicated in Guide to reporting on Principle 5.
Yes
The Company has provided details of any departures from Principle 5 in its Annual Report.
RESOURCE STAR LIMITED
ABN 71 098 238 585
16
ANNUAL FINANCIAL REPORT 30 June 2014
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
Recommendation
Compliance
Yes/No
Principle 6– Respect the rights of shareholders
6.1 Companies should design and disclose a communications policy to promote effective
communication with shareholders and encourage effective participation at general meetings and
disclose the policy or a summary of the policy.
Yes
The Company’s Corporate Governance Policies includes a Shareholder Communications
Policy which aims to ensure that the shareholders are informed of all material developments
affecting the Company’s state of affairs.
6.2 Companies should provide the information indicated in Guide to reporting on Principle 6.
Yes
The Company has provided details of any departures from Principle 6 in its Annual Report.
Principle 7– Recognise and manage risk
7.1 Companies should establish policies for the oversight and management of material business risks
Yes
and disclose a summary of those policies.
The Company’s Corporate Governance Policies includes a Risk Management Policy which
aims to ensure that all material business risks are identified and mitigated. The Board
identifies the Company’s “risk profile” and is responsible for overseeing and approving risk
management strategies and policies, internal compliance and internal controls.
7.2 The Board should require management to design and implement the risk management and
internal control system to manage the Company’s material business risks and report to it on
whether those risks are being managed effectively. The Board should disclose that management
has reported to it as to the effectiveness of the Company’s management of its material business
risks.
The Board requires that the Managing/Executive Director designs and implements continuous
risk management and internal control systems and provides reports at relevant times.
7.3 The Board should disclose whether it has received assurance from the chief executive officer (or
equivalent) and the chief financial officer (or equivalent) that the declaration provided in
accordance with section 295A of the Corporations Act is founded on a sound risk management
and internal control and that the system is operating effectively in all material respects in relation
to the financial reporting risks.
Yes
Yes
The Board seeks, at
the
Managing/Executive Director and the individual appointed to perform the role of Chief
Financial Officer.
relevant assurances
the appropriate
times,
from
the
7.4 Companies should provide the information indicated in Guide to reporting on Principle 7.
Yes
The Company has provided details of any departures from Principle 7 in its Annual Report.
Principle 8– Remunerate fairly and responsibly
8.1 The Board should establish a remuneration committee.
No
Resource Star Limited is not of a size to justify having a remuneration committee. Matters
typically dealt with by such a committee are dealt with by the full Board.
8.2 The remuneration committee should be structured so that it:
(cid:1) Consists of a majority of independent directors;
(cid:1)
(cid:1) Has at least three (3) members
Is chaired by an independent chair; and
The remuneration committee when established will be structured as above.
Not Applicable
RESOURCE STAR LIMITED
ABN 71 098 238 585
17
ANNUAL FINANCIAL REPORT 30 June 2014
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
Recommendation
Compliance
Yes/No
8.3 Companies should clearly distinguish the structure of non executive director’s remuneration from
Yes
that of executive directors and senior executives.
The Board distinguishes the structure of non executive director’s remuneration from that of
executive directors and senior executives. The Company’s Constitution provides that the
remuneration of non executive directors will not be more than the aggregate fixed sum by a
general meeting of shareholders.
The Board is responsible for determining the remuneration of any director or senior
executive, without the participation of the affected director.
8.4 Companies should provide the information indicated in Guide to reporting on Principle 8.
Yes
The Company has provided details of any departures from Principle 8 in its Annual Report.
Unless otherwise stated, Resource Star Limited’s corporate governance practices were in place throughout the year ended
30 June 2014.
There is a corporate governance section on the Company’s website which sets out the various policies, charters and codes
of conduct which have been adopted to ensure compliance with the principles and recommendations referred to above.
A description of Resource Star’s main corporate governance practices are set out below.
The Board of Directors
Role and Responsibilities of the Board
In accordance with ASX Principle 1, the Resource Star Limited Board has established a Board Charter which is
available on the Company website. This Charter outlines the functions of the Resource Star Board and the senior
executives and shows that the role and responsibilities of the Board and the senior executives are quite clear and
distinct.
The key responsibilities of the Board include:
•
•
Appointing, evaluating, rewarding and if necessary the removal of the Executive Director and Chair;
Development of corporate objectives and strategy and approving plans, new investments, major capital and
operating expenditures and major funding activities proposed;
•
•
•
•
•
•
•
•
•
Monitoring actual performance against defined performance expectations and reviewing operating information
to understand at all times the state of the health of the Company;
Overseeing the management of business risks, safety and occupational health, environmental issues and
community development;
Monitoring director performance and implementation of strategy;
Ensuring appropriate resources are in place and available to the directors;
Reviewing and approving the remuneration of the senior executives;
Satisfying itself that the financial statements of the Company fairly and accurately set out the financial position
and financial performance of the Company for the period under review;
Satisfying itself that there are appropriate reporting systems and controls in place to assure the Board that
proper operational, financial, compliance, risk management and internal control process are in place and
functioning appropriately. Further, approving and monitoring financial and other reporting;
Assuring itself that appropriate audit arrangements are in place;
Ensuring that the Company acts legally and responsibly on all matters and assuring itself that the Company
has adopted, and that the Company’s practice is consistent with, a number of guidelines, being:
- Directors and Executive Officers Code of Conduct;
- Dealings in Securities; and
RESOURCE STAR LIMITED
ABN 71 098 238 585
18
ANNUAL FINANCIAL REPORT 30 June 2014
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
- Reporting and Dealing with Unethical Practices.
•
Reporting to and advising shareholders.
Composition of the Board
As at the date of this report, the Resource Star Board totals four (4) of which all are Non-Executive Directors.
The table below sets out the detail of the tenure of each director at the date of this Report.
Director
Andrew Bell
Richard Parker
Mathew Walker
Role of Director
First Appointed
Non Executive
Independent
Non Executive Chair
6 August 2007
Non Executive Director
2 July 2014
Non Executive Director
1 August 2014
Yes
Yes
Yes
Yes
No
Yes
No
Yes
George Karantzias
Non Executive Director
18 December 2013
Details of the Board including their experience, expertise and qualifications are set out in the Directors’ Report.
STRUCTURE OF THE BOARD
Independence
As outlined in ASX Principle 2, Directors of Resource Star are expected to contribute independent views.
Directors are considered to be independent when they are independent of management and free from any business or
other relationship that could materially interfere with or could reasonably be perceived to materially interfere with the
exercise of their unfettered and independent judgment.
An independent Director is a non-executive director (i.e. is not a member of management) and:
•
is not a substantial shareholder of the Company or an officer of, or otherwise associated directly with, a substantial
shareholder of the Company;
•
•
•
•
•
•
within the last three years has not been employed in an executive capacity by the Company or its subsidiaries, or
been a Director after ceasing to hold any such employment;
is not a principal or employee of a professional adviser to the Company or its subsidiaries whose billings are a
material amount of the adviser's total revenue;
is not a significant supplier or customer of the Company or its subsidiaries, or an officer of or otherwise associated
directly or indirectly with a significant supplier or customer. A significant supplier is defined as one whose revenues
from the Company are a material amount of the supplier's total revenue. A significant customer is one whose
amounts payable to the Company are a material amount of the customer's total operating costs;
has no material contractual relationship with the Company or its subsidiaries other than as a Director of the
Company;
has not served on the Board for a period which could, or could reasonably be perceived to, materially interfere
with the Director's ability to act in the best interests of the Company;
is free from any interest and any business or other relationship which could, or could reasonably be perceived
to, materially interfere with the Director's ability to act in the best interests of the Company.
Mr Bell (substantial shareholder) and Mr Walker (substantial shareholder) are not considered to be independent. Even
though only half of the current Board is independent, the Board believes that the current composition of the Board is
adequate for the current size and activities and includes an appropriate mix of skills and expertise, relevant to Resource
Star’s activities.
When a Board vacancy exists, through whatever cause, or where it is considered that the Board would benefit from the
service of a new Director with particular skills, in the absence of a Remuneration and Nomination Committee, the Board will
consider a candidate or panel of candidates with the appropriate expertise.
The Board then appoints the most suitable candidate who must stand for election at the next general meeting of
shareholders.
RESOURCE STAR LIMITED
ABN 71 098 238 585
19
ANNUAL FINANCIAL REPORT 30 June 2014
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
Notification
Resource Star has reviewed and considered the positions of each of the four (4) Directors in office at the date of this
Annual Report and consider that only two (2) of the four (4) Directors are independent. Mr Karantzias and Mr Parker are
independent Directors in accordance with the definition of independence above.
This composition is not unusual for a company the size of Resource Star Limited and undertaking the level of activity that it
currently does.
Chair and Non-Executive Director
The roles of the Chair and the Non-executive Directors are not to be exercised by the same individual.
The Chair is responsible for leading the Board, ensuring that Board activities are organised, efficiently conducted and
ensuring that the Directors are properly briefed for meetings.
The Non-executive Directors are collectively responsible for the day to day activities of the Group.
The Chair must be appropriately qualified and have the required experience to discharge the responsibilities for leading,
managing and delegating and in the absence of a Nomination Committee the Board from amongst themselves have
nominated the Director that they believe can fulfil the role of Chair.
There are procedures in place, agreed by the Board, to enable the Directors in furtherance of their duties to seek
independent professional advice at the Company’s expense.
Board Evaluation Process
In the absence of Nomination and Remuneration Committees, the Resource Star Board reviews its performance and the
performance of individual Directors including the Managing/Executive Director.
External consultants are engaged where it is seen to be beneficial to the Company when undertaking the performance
evaluation process.
Performance evaluations in respect of the current Board have not yet been completed.
In relation to the term of office, the Constitution specifies that one third of all directors must retire from office annually and
are eligible for re-election at the Company’s Annual General Meeting.
Remuneration and Nomination Committee
The Board has not established a formal Remuneration or Nomination Committee.
The full Board attends to the matters normally attended to by a Remuneration or Nomination Committee. The Board
acknowledges that when the size and nature of the Company warrants a Remuneration and Nomination Committee then
the Committee will operate under a Charter approved by the Board.
The Board is responsible for determining and reviewing compensation arrangements for the Directors themselves with
remuneration levels being set in accordance with industry standards to attract suitably qualified and experienced Directors
and senior executives.
As at the date of this Report there is no scheme to provide retirement benefits to non executive directors.
Details of the Company’s remuneration philosophy and framework and the remuneration received by directors and
executives are provided in the Directors’ Report under the heading Remuneration Report.
RESOURCE STAR LIMITED
ABN 71 098 238 585
20
ANNUAL FINANCIAL REPORT 30 June 2014
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
Code of Conduct
The Board acknowledges the need for the highest standards of corporate governance and ethical conduct by all directors
and senior executives. In light of this, Resource Star Limited has developed a Code of Conduct which has the full backing
of the Board and is to be followed by the directors, senior executives and employees.
This policy is regularly reviewed and updated as necessary.
Diversity Policy
Resource Star Limited is committed to workplace diversity and recognises the benefits arising from having a broader pool
of quality employees, improving employee retention rates and tapping into all available talent. Diversity includes such
areas as gender, age and background.
Resource Star Limited developed and approved a Diversity Policy in 2011 which has a focus of improving gender balance
and working towards increasing the representation of women in management roles. The Resource Star Limited Diversity
Policy aims to achieve:
•
•
developing a culture which takes into account domestic responsibilities of employees;
as part of the annual remuneration review, assessing the gender pay parity across the business and implementing
action plans to address any areas of concern;
• maintaining a workplace culture that supports difference and that enables each staff member to fully contribute to
the best of their ability;
•
•
•
•
identifying what is getting in the way of diversity success and taking action to address the issues;
improved employment and career development opportunities for women;
an environment that encourages the development of necessary skills and experience for leadership roles; and
a workplace that is free for all forms of discrimination and harassment
The proportion of women in Resource Star Limited is as follows:
Women
Proportion
Employees
Senior executive position (Company
Secretary)
Board of Directors
The Company currently has no full time employees.
0
0
0
0%
0%
0%
Notification
ASX Principle 3 recommends that companies should disclose in each annual report measurable objectives for achieving
gender diversity set by the Board in accordance with the Diversity Policy and progress towards achieving them.
Due to the current nature and scale of Resource Star’s activities, the Board is yet to establish measurable objectives for
achieving gender diversity to report against. No measurable objectives will be established until the number of employees
and level of activities of the Company have increased to sufficient levels to enable meaningful and achievable objectives to
be developed.
RESOURCE STAR LIMITED
ABN 71 098 238 585
21
ANNUAL FINANCIAL REPORT 30 June 2014
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
Securities Trading
Resource Star Limited has adopted a Securities Dealing Policy which is derived largely from the Corporations Act 2001
requirements that applies to all directors, senior executives and employees.
Under this Policy and the Corporations Act 2001, it is illegal for directors, senior executives and employees who have
access to price sensitive information which has not been published or is generally not available to:
(a) apply for, acquire, dispose of or enter into an agreement to apply for, acquire or dispose of Resource Star
Securities;
(b) procure another person to apply for, acquire, dispose of or enter into an agreement to apply for, acquire or
dispose of Resource Star Securities; or
(c) directly or indirectly communicate the Material Non-Public Information to another person when the Insider
knows, or ought reasonably to know, that the other person would or would be likely to:
(i)
apply for, acquire, dispose of or enter into an agreement to apply for, acquire or dispose of Resource
Star Securities; or
procure another person to apply for, acquire, dispose of or enter into an agreement to apply for, acquire
or dispose of Resource Star Securities.
(ii)
Corporate Reporting
In accordance with ASX Principle 7, a Non-Executive Director and the Chair have made the following certifications to the
Board:
• That the Company’s financial reports are complete and present a true and fair view, in all material respects, of
the financial positions and operational results of Resource Star Limited; and
• The financial reports are founded in a sound system of internal control and risk management which implements
the policies adopted by the Board and the Company’s risk management and internal controls are operating
efficiently in all material respects.
Audit and Risk Management Committee
The Board has established an Audit and Risk Management Committee comprising of the same members as the board of
directors – Mr Bell (Chairman), Mr Guy, Mr Karantzias and Ms Kestel is the Secretary of the Committee. The committee did
not meet during the year.
Whilst this is appropriate for a company the size of Resource Star Limited and with the current level of activity it does mean
that a number of the recommendations are not met – does not consist of non-executive directors; does not consist of a
majority of independent directors and is not chaired by an independent chair
The Committee operates under Charter approved by the Board which is available from the Company’s webpage. It is the
Committee’s responsibility to ensure that an effective internal control framework exists within the Company. The internal
controls that the Company have in place include the safeguarding of assets, the maintenance of proper accounting
records, identifying and managing risk and attesting to the reliability of financial information as well as non-financial
considerations such as the benchmarking of key performance indicators. The Committee also provides the Board with
assurance of the reliability of the financial information included in the Interim Financial and Annual Reports. The Audit and
Risk Management Committee is also responsible for:
•
Liaising with the external auditors on accounting policy and disclosure;
• Reviewing and meeting with the external auditors to review the Interim Financial and Annual Reports before
submission to the Board; and
• Overseeing risk management.
In accordance with ASX Principle 7, the Board has established a Risk Management policy, which is designed to safeguard
the Group’s assets and to ensure the integrity of the financial reporting.
The Company has as a standing Agenda item Risk Management and on a regular basis the Board will assess the Risk
Management matrix and amend accordingly.
The Company’s Policy is to appoint external auditors who clearly demonstrate independence. The performance of the
external auditor is reviewed annually by the Board but when the Committee is established it will be the responsibility of the
Committee to complete this review. The auditors have a policy of rotating the audit partner at least every 5 years.
RESOURCE STAR LIMITED
ABN 71 098 238 585
22
ANNUAL FINANCIAL REPORT 30 June 2014
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
External Auditors
Resource Star Limited’s current external auditors are HLB Mann Judd. As noted in the Audit and Risk Management
Committee Charter, the performance and independence of HLB Mann Judd is reviewed by the Committee.
HLB Mann Judd attests to their independence by providing a statement as to their independence; which has been included
in the 2014 Annual Report for the year ended 30 June 2014.
Risk Management
The Board recognises that the identification and management of risk, including calculated risk taking, is an essential part of
creating long term shareholder value.
The Executive Director reports directly to the Board on the Group’s key risks and is responsible for designing, maintaining,
implementing and reporting on the adequacy of the risk management and internal control systems.
The Board monitors the performance of the risk management and internal control systems and determines the extent to
which it believes the risks are being managed and the adequacy and comprehensiveness of risk reporting from
management.
The Board must satisfy itself, on a regular basis, that risk management and internal control systems for the Company have
been fully developed and implemented.
The Company has identified specific risk management areas being strategic, operational and compliance. The Board has
reviewed risks faced by the Company on a regular basis due to the current finance position of the Company.
A detailed risk identification matrix will be prepared by management. High and very high risk issues will be reported to the
Board. The Board is responsible for ensuring the Company complies with its regulatory obligations.
The Board and externally appointed CFO equivalent provide written assurance on an annual basis that to the best of their
knowledge and belief, the declaration provided by them in accordance with Section 295A of the Corporations Act is
founded on a sound system of risk management and internal control and that the system is operating effectively in relation
to financial reporting risks.
These assurances can only be reasonable rather than absolute due to factors such as the need for judgement and possible
weaknesses in control procedures.
Any material changes in the Company’s circumstances are released to the ASX and included on the Company’s website.
Continuous Disclosure
In accordance with ASX Principle 5, Resource Star Limited has established a Disclosure Policy.
The Policy is committed to:
• Ensuring that shareholders have the opportunity to access externally available information issued by the
Company;
• Providing full and timely information to the market about the Company’s activities; and
• Complying with the obligations contained in the ASX Listing Rules and the Corporations Act 2001 relating to
continuous disclosure.
The Chairman and the Company Secretary have been nominated as the people responsible for communication with the
ASX. This involves complying with continuous disclosure requirements outlined in ASX Listing Rules, ensuring that
disclosure with the ASX is co-ordinated and being responsible for administering and implementing this Policy.
RESOURCE STAR LIMITED
ABN 71 098 238 585
23
ANNUAL FINANCIAL REPORT 30 June 2014
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
Shareholder Communication
In accordance with ASX Principle 6, Resource Star Limited has established a communications strategy policy.
The directors of Resource Star recognises the importance of forthright communication and in order to prosper and achieve
growth, it must (among other things) earn the trust of employees, customers, suppliers, communities and shareholders by
being forthright in its communications and consistently delivering on its commitments.
The Board aims to ensure that the shareholders on behalf of whom they act are informed of all information necessary in
order to make effective decisions about Resource Star and to be kept informed of all major developments affecting the
Company in a timely and effective manner. Resource Star follows three main forms of information disclosure:
• Continuous disclosure - which is its core disclosure obligation and primary method of informing the market and
shareholders;
• Periodic disclosure - in the form of full-year and half-year reporting; and
• Specific information disclosure - as and when required, of administrative and corporate details, usually in the form
of ASX releases.
Further it is a Corporations Act requirement that the auditor of Resource Star Limited attends the Annual General Meeting.
This provides shareholders with the opportunity to ask the auditor questions concerning the conduct of the audit and the
preparation and content of the Auditor Report as contained in the 2014 Annual Report.
RESOURCE STAR LIMITED
ABN 71 098 238 585
24
ANNUAL FINANCIAL REPORT 30 June 2014
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2014
Other revenue
Exploration expenditure written off
Expensed share issue costs
Depreciation
Other expenses
Loss before income tax expense
Income tax expense
Loss after tax from continuing operations
Net loss for the year
Other comprehensive income / (loss)
Total comprehensive (loss) for the year
Net loss and comprehensive loss attributable to:
Owners of the parent entity
Non-controlling interest
Notes
CONSOLIDATED
30 June 2014
$
30 June 2013
$
2(a)
21,662
2,174
8
9
(263,446)
(2,919,130)
-
(469)
-
(1,116)
2(b)
(372,094)
(541,052)
(614,347)
(3,459,124)
3
-
-
(614,347)
(3,459,124)
14
(614,347)
(3,459,124)
-
-
(614,347)
(3,459,124)
(614,347)
(3,459,124)
-
-
(614,347)
(3,459,124)
Basic loss per share (cents per share)
Basic loss per share from continuing operations (cents per share)
Diluted loss per share (cents per share)
Diluted loss per share from continuing operations (cents per share)
4
4
4
4
(0.374)
(0.374)
(0.374)
(0.374)
(2.979)
(2.979)
(2.979)
(2.979)
The accompanying notes form part of these financial statements.
RESOURCE STAR LIMITED
ABN 71 098 238 585
25
ANNUAL FINANCIAL REPORT 30 June 2014
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2014
Current Assets
Cash and cash equivalents
Trade and other receivables
Other
Total Current Assets
Non-Current Assets
Deferred exploration and evaluation expenditure
Property, plant and equipment
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Borrowings
Total Current Liabilities
Total Liabilities
Net Assets / (Net Liabilities)
Equity / (Net Deficiency of Assets over Liabilities)
Contributed equity
Reserves
Accumulated losses
Total Equity / (Net Liabilities)
The accompanying notes form part of these financial statements.
Notes
CONSOLIDATED
2013
$
2014
$
5
6
7
8
9
10
11
460,485
13,240
7,454
481,179
-
-
-
1,358
35,864
8,484
45,706
79,023
1,251
80,274
481,179
125,980
525,228
50,000
575,228
575,228
318,429
81,644
400,073
400,073
(94,049)
(274,093)
12
13
14
33,569,173
32,930,782
156,000
24,450
(33,819,222)
(33,229,325)
(94,049)
(274,093)
RESOURCE STAR LIMITED
ABN 71 098 238 585
26
ANNUAL FINANCIAL REPORT 30 June 2014
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2014
Cash flows from operating activities
Interest income
Payment to suppliers and employees
Notes
CONSOLIDATED
30 June 2014
$
30 June 2013
$
373
2,428
(161,155)
(291,921)
Net cash flows provided by/(used in) operating activities
5(a)
(160,782)
(289,493)
Cash flows from investing activities
Payments for exploration and evaluation expenditure
Payments for plant and equipment
Net cash flows provided by/(used in) investing activities
Cash flows from financing activities
Proceeds from issue of shares and options
Proceeds from loans
Repayments of loans
Share issue costs
Net cash flows provided by/(used in) financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
(111,008)
(238,141)
-
-
(111,008)
(238,141)
647,363
96,880
-
110,010
81,644
-
(13,326)
(5,000)
730,917
186,654
459,127
(340,980)
1,358
342,338
Cash and cash equivalents at the end of the year
5
460,485
1,358
The accompanying notes form part of these financial statements.
RESOURCE STAR LIMITED
ABN 71 098 238 585
27
ANNUAL FINANCIAL REPORT 30 June 2014
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2014
Balance at 1 July 2012
32,820,772
(30,222,173)
473,302
3,071,901
Contributed
equity
Accumulated
losses
Reserves
Total
Equity/(Net
Liabilities)
$
$
$
$
Total comprehensive loss for the year
-
(3,459,124)
Shares issued (net of costs)
Options issued
Options forfeited
At 30 June 2013
110,010
-
-
451,972
(451,972)
32,930,782
(33,229,325)
24,450
(274,093)
-
-
3,120
(3,459,124)
110,010
3,120
-
Balance at 1 July 2013
32,930,782
(33,229,325)
24,450
(274,093)
Total comprehensive loss for the year
-
(614,347)
-
(614,347)
Shares issued (net of costs)
Options issued
Options forfeited
At 30 June 2014
The accompanying notes form part of these financial statements.
638,391
-
-
156,000
794,391
-
-
-
24,450
(24,450)
33,569,173
(33,819,222)
156,000
(94,049)
-
-
-
-
RESOURCE STAR LIMITED
ABN 71 098 238 585
28
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
The financial report is a general-purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001, Australian Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board (“AASB”) and complies with other requirements of the law.
The accounting policies detailed below have been consistently applied to all of the years presented unless otherwise
stated. The financial statements are for the consolidated entity consisting of Resource Star Limited and its
subsidiaries (collectively referred to as “the Group”).
Except for cash flow information, the financial report has also been prepared using the accrual basis and on a
historical cost basis, except for certain financial assets and liabilities, which have been measured at fair value. Cost is
based on the fair values of the consideration given in exchange for assets.
The Company is a for profit listed public company incorporated in Australia. The Company’s principal activity is
mineral exploration.
(b) Adoption of new and revised standards
Changes in accounting policies on initial application of Accounting Standards
In the year ended 30 June 2014, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the Group’s operations and effective for the current annual
reporting period.
Standards and Interpretations adopted with no effect on the financial statements:
It has been determined by the Directors that there is no impact, material or otherwise, of any other new and revised
Standards and Interpretations on the Group’s business and, therefore, no change is necessary to Group accounting
policies.
Standards and Interpretations in issue not yet adopted:
The Directors have also reviewed all new Standards and Interpretations that have been issued but are not yet
effective for the year ended 30 June 2014. As a result of this review the Directors have determined that there is no
impact, material or otherwise, of the new and revised Standards and Interpretations on the Group’s business and,
therefore, no change necessary to Group accounting policies.
(c) Statement of Compliance
The financial report was authorised for issue on the day of the Directors’ Report.
The financial report complies with Australian Accounting Standards (“AASB”). Compliance with AASB ensures that
the financial report, comprising the financial statements and notes thereto, complies with International Financial
Reporting Standards (IFRS).
RESOURCE STAR LIMITED
ABN 71 098 238 585
29
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(d) Basis of consolidation
These general purpose consolidated financial statements incorporate the assets and liabilities of all subsidiaries of
Resource Star Limited (‘company’ or ‘parent entity’) as at 30 June 2014 and the results of all subsidiaries for the year
then ended. Resource Star Limited and its subsidiaries are referred to in this financial report as the group or the
consolidated entity.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using
consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses
and profit and losses resulting from intra-group transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be
consolidated from the date on which control is transferred out of the Group. The parent controls an entity when it 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 over the entity.
Business combinations have been accounted for using the acquisition method of accounting.
(e) Critical Accounting Estimates and Judgements
The application of accounting policies requires the use of judgements, estimates and assumptions about carrying
values of assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the period
in which the estimate is revised if it affects only that period or in the period of the revision and future periods if the
revision affects both current and future periods.
Exploration and evaluation costs carried forward
The recoverability of the carrying amount of exploration and evaluation costs carried forward has been reviewed by
the directors. The Group capitalises expenditure relating to exploration and evaluation where it is considered likely
to be recoverable or where the activities have not reached a stage which permits a reasonable assessment of the
existence of reserves. While there are certain areas of interest from which no reserves have been extracted, the
directors are of the continued belief that such expenditure should not be written off.
Recovery of deferred tax assets
Deferred tax assets are only recognised as deductible temporary differences when management considers that it is
probable that sufficient future tax profits will be available to utilise those temporary differences. Significant
management judgement is required to determine the amount of deferred tax assets that can be recognised, based
upon the likely timing and the level of future taxable profits over the next two years together with future tax planning
strategies. The Group has been incurring losses and presently, it is not known when the Group will earn taxable
income. As such, deferred taxes have not been recognised.
(f) Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the
revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is
recognised:
(i) Interest income
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial
asset, using the effective interest rate method.
RESOURCE STAR LIMITED
ABN 71 098 238 585
30
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(g) Cash and Cash Equivalents
Cash comprises cash at bank and on hand. Cash equivalents are short term, highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value. Bank overdrafts are shown within borrowings in current liabilities in the
consolidated statement of financial position.
For the purposes of the consolidated statement of cash flows, cash and cash equivalents consist of cash and cash
equivalents as defined above, net of outstanding bank overdrafts.
(h) Trade and other receivables
Trade receivables are measured on initial recognition at fair value and are subsequently measured at amortised
cost using the effective interest rate method, less provision for impairment. Trade receivables are generally due for
settlement within periods ranging from 15 days to 30 days.
Impairment of trade receivables is continually reviewed and those that are considered to be uncollectible are written
off by reducing the carrying amount directly. An allowance account is used when there is objective evidence that
the Group will not be able to collect all amounts due according to the original contractual terms. Factors considered
by the Group in making this determination include known significant financial difficulties of the debtor, review of
financial information and significant delinquency in making contractual payments to the Group. The impairment
allowance is set equal to the difference between the carrying amount of the receivable and the present value of
estimated future cash flows, discounted at the original effective interest rate. Where receivables are short-term
discounting is not applied in determining the allowance.
The amount of the impairment loss is recognised in profit or loss within other expenses. When a trade receivable for
which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off
against the allowance account. Subsequent recoveries of amounts previously written off are credited against other
expenses in the consolidated statement of profit or loss and other comprehensive income.
(i) Foreign Currency Translation
Both the functional and presentation currency of the Company and its subsidiaries is Australian dollars. Each entity in
the Group determines its own functional currency and items included in the financial statements of each entity are
measured using that functional currency.
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates
ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated
at the rate of exchange ruling at the end of the reporting period.
All exchange differences in the consolidated financial report are taken to profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate as at the date of the initial transaction.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value was determined.
(j)
Income tax
The income tax expense or benefit for the period is the tax payable on the current year’s taxable income (loss) based
on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities
attributable to temporary difference and to unused tax losses.
The current income tax charge (benefit) is calculated on the basis of the tax laws enacted or substantively enacted at
the end of the reporting period in the countries where the Company’s subsidiaries operate and generate taxable
income. Management periodically evaluates positions taken in tax returns with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities.
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted by the end of the reporting period.
Deferred income tax is provided on all temporary differences at the end of the reporting period between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes.
RESOURCE STAR LIMITED
ABN 71 098 238 585
31
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
1.
(j)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Income tax (continued)
The carrying amount of deferred income tax assets is reviewed at the end of the reporting period and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at the end of the reporting period and are recognised to
the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the end of the reporting period.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity
and the same taxation authority.
(k) Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in
which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as
applicable; and
• receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the consolidated statement of financial position.
Cash flows are included in the consolidated statement of cash flows on a gross basis and the GST component of
cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation
authority are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
(l) Property, Plant and Equipment
Plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.
Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the parts
is incurred.
RESOURCE STAR LIMITED
ABN 71 098 238 585
32
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(l) Property, Plant and Equipment (continued)
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Plant and equipment – over 1 to 7.5 years
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at
each financial year end.
(i) Impairment
The carrying values of plant and equipment are reviewed for impairment at each reporting date, with recoverable
amount being estimated when events or changes in circumstances indicate that the carrying value may be
impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset.
For an asset that does not generate largely independent cash inflows, recoverable amount is determined for the
cash-generating unit to which the asset belongs, unless the asset's value in use can be estimated to be close to its
fair value.
An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount.
For plant and equipment, impairment losses are recognised in profit or loss.
(ii) Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits
are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
(m) Impairment of assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any
such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of
the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and
its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups of assets and the asset's value in use cannot be
estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-
generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its
recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable
amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
Impairment losses relating to continuing operations are recognised in those expense categories consistent with the
nature of the impaired asset.
An assessment is also made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is
estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates
used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case
the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for
the asset in prior years.
RESOURCE STAR LIMITED
ABN 71 098 238 585
33
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(n) Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services
provided to the Group prior to the end of the financial year/period that are unpaid and arise when the Group
becomes obliged to make future payments in respect of the purchase of these goods and services.
(o) Borrowing Costs
Non-derivative financial liabilities are initially recognized at fair value net of directly attributable transaction costs. On
subsequent measurement, non-derivative financial liabilities are measured at amortised cost using the effective
interest method.
Convertible notes
The company has issued convertible notes that can be converted to share capital at the option of the holder. The
company has determined the conversion option is a derivative liability that is required to be valued at fair value.
Rather than valuing the liability component of the convertible note at amortised cost and the associated derivative
liability at fair value the company has elected to value the combined instrument at fair value. The movement in fair
value of the convertible note is recognised in the profit and loss as finance charge. The basis of the fair value
calculations and the material terms and conditions of the convertible note are set out in Note 11.
The best evidence of fair value of a financial instrument, at initial recognition, is the transaction price, unless the fair
value of the instrument is evidenced by comparison with other observable current market transactions in the same
instrument or based on valuation technique using variable only obtained from observable markets.
The company has elected to fair value the convertible note using valuation models for which not all the inputs are from
observable markets. The convertible note was initially recognised at the transaction price which varied from the fair
value obtained from the valuation model used.
(p) Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.
Operating lease payments are recognised as an expense on a straight line basis over the lease term, except where
another systematic basis is more representative of the time pattern in which economic benefits from the leased asset
are consumed.
(q)
Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.
(r) Earnings per share
Basic earnings per share is calculated as net profit/(loss) attributable to members of the parent entity, adjusted to
exclude any costs of servicing equity (other than dividends) divided by the weighted average number of ordinary
shares, adjusted for any bonus element.
Diluted earnings per share are calculated as net profit/(loss) attributable to members of the parent, adjusted for:
• costs of servicing equity (other than dividends) and preference share dividends;
• the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been
recognised as expenses; and
• other non-discretionary changes in revenues or expenses during the period that would result from the dilution of
potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary
shares, adjusted for any bonus element.
(s) Share based payment transactions
Equity settled transactions
The Group provides benefits to employees (including key management personnel) of the Group in the form of share-
based payments, whereby employees render services in exchange for shares or rights over shares (“equity settled
transactions”).
RESOURCE STAR LIMITED
ABN 71 098 238 585
34
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The cost of these equity-settled transactions with employees is measured by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined using a binomial model, further details of
which are given in Note 15 and the Remuneration Report. The fair value of options issued as approved by the Directors
and shareholders are recognised as an employee benefit expense with a corresponding increase in equity. The fair
value is measured at grant date and recognised over the period during which the employees become unconditionally
entitled to the options.
The fair value at grant date is independently determined using the binomial option pricing model that takes into account
the exercise price, the term of the option, the vesting and performance criteria, the impact of dilution, the non tradeable
nature of the option, the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield and the risk free interest rate for the term of the option. The fair value of the options granted excludes the
impact of any non-market vesting conditions (for example (profitability and sales growth targets). Non-market vesting
conditions are included in assumptions about the number of options that are expected to become exercisable. At the
end of each reporting period, the Group revises its estimate of the number of options that are expected to become
exercisable. The employee benefit expense recognised each period takes into account the most recent estimate.
(t) Exploration and evaluation expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied:
(i) the rights to tenure of the area of interest are current;
(ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful
development and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the reporting 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 in relation to, the area of interest is
continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies,
exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortised
of assets used in exploration and evaluation activities. General and administrative costs are only included in the
measurement of exploration and evaluation costs where they are related directly to operational activities in a
particular area of interest.
Exchange (swaps) of exploration and evaluation assets are accounted for at the carrying amounts of the assets
given up with no gain or loss recognised.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the
carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable
amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being
no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any).
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the
carrying amount that would have been determined had no impairment loss been recognised for the asset in previous
years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant
exploration and evaluation asset is tested for impairment and the balance is then reclassified to development.
An ‘area of interest’ is an individual geological area which is considered to constitute a favourable environment for
the presence of a mineral deposit or an oil or natural gas field, or has been proved to contain such a deposit or field.
RESOURCE STAR LIMITED
ABN 71 098 238 585
35
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(u) Going concern
In the year ended 30 June 2014 the Company recorded a net loss of $614,347 (2013: $3,459,124) and a net
operating cash outflow of $160,782 (2013:$ 289,493), resulting in the Group having a net liabilities position of
$94,049 (2013: net liabilities of $274,093), despite the Group having a market capitalisation of approximately $0.936
million as at 30 June 2014.
On 28 May 2014, the Company announced the completion of the non-renounceable entitlement offer to raise up to
$624,000 (before costs) which opened on 8 April 2014 and closed on 19 May 2014. All Shares available under the
Offer had been taken up through a combination of entitlement applications, shortfall applications and the Underwriting
Agreement. The number of new ordinary shares subscribed by Shareholders was 28,736,050 or 18% of the total
available under the Offer. The remaining 127,263,950 Shares were available to the Underwriter.
The Directors anticipate in order to meet its working capital requirements and progress its planned operational
expenditure further funding will be required within the next twelve (12) months and having prepared a cash flow
budget of the Group’s working capital requirements for the next 12 months to September 2015 and have already
commenced planning to access additional funding.
The Company’s ability to raise funds is further evident when post 30 June 2014, the Company raised $140,000 from
a sophisticated investor through the issue of shares under its 15% Placement Capacity. The funds were used for
short term working capital. The Placement Capacity of the Company was revised at the General Meeting of
Shareholders on 16 September 2014 and the board intends finalise the issue and allotment of the remaining
placement capacity to raise a further $312,000 before costs.
Based on the above factors, the Board has a reasonable degree of confidence in securing sufficient additional funding
for at least the next 12 months to September 2015 and believe it would be able to negotiate with interested parties,
regarding a number of funding options that includes further debt and capital raisings. Should the Group be unable to
raise sufficient funds, it would consider selectively reducing administrative costs It is recognised that in the event that
the Company is unable to secure additional funding, it is likely to result in 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 and at the amounts stated in
the accounts.
(v) Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated
entity only. The financial information for the Parent Entity is disclosed in note 23 and has been prepared on the
same basis as the consolidated financial statements.
(w) Operating segments
Operating segments are presented in a manner consistent with the internal reporting provided to the chief operating
decision makers (“CODM”). The CODM is responsible for the allocation of resources to operating segments and
assessing their performance, and has been identified as the Board Directors of the Company.
RESOURCE STAR LIMITED
ABN 71 098 238 585
36
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
2. REVENUES AND EXPENSES
(a) Other revenue
Finance revenue – bank interest
Gain on Convertible Note
Foreign exchange gain
(b) Other expenses
Administration expenses
Auditor’s remuneration
ASX fees
Directors’ fees and salaries
Secretarial fees
Professional accounting fees
Foreign exchange loss
Interest paid
Share based payments
3.
INCOME TAX EXPENSE
The prima facie tax on profit/(loss) from continuing
Operations before income tax is reconciled to the income
tax expense/(benefit) as follows:
Prima facie (benefit)/expense on profit/(loss) from continuing
operations (30%)
Tax effect of capitalised exploration costs
Tax effect of permanent differences
Deferred tax asset not brought to account
Income tax expense for the year
CONSOLIDATED
30 June 2014
$
30 June 2013
$
368
7,665
13,644
21,662
2,174
-
-
2,174
129,395
154,054
29,385
20,594
65,502
60,635
62,746
391
3,446
36,211
14,938
209,418
64,561
53,750
-
-
-
8,120
372,094
541,052
(184,304)
(1,037,737)
(55,327)
(75,040)
791
2,535
(238,840)
(1,110,242)
238,840
1,110,242
-
-
The amounts of tax losses available have not been recognised at the date of the report. It is expected that a certain
amount of tax losses would be deductible against future taxable income on the condition that certain criteria
imposed by the tax legislation have been met.
The DTA not brought to account will only be realised if:
(a) future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised;
(b) the conditions for deductibility imposed by tax legislation continue to be complied with; and
(c)
the Company and Group are able to meet the continuity of business and/or continuity of ownership tests.
RESOURCE STAR LIMITED
ABN 71 098 238 585
37
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
4. EARNINGS/(LOSS) PER SHARE
Basic loss per share:
Total basic loss per share
Diluted loss per share
Total diluted loss per share
The earnings and weighted average number of ordinary shares used in
the calculation of basic per share is as follows:
Loss
CONSOLIDATED
2014
2013
Cents per share
Cents per share
(0.374)
(2.979)
(0.374)
(2.979)
$
(614,347)
Number
$
(3,459,124)
Number
Weighted average number of ordinary shares for the purposes of basic
loss per share
164,044,483
116,113,942
Effect of dilution:
Share options (a)
-
-
Weighted average number of ordinary shares for the purposes of basic
and diluted loss per share
164,044,483
116,113,942
(a) Diluted loss per share arising from the options is not reflected as the result is anti-dilutive in nature.
5. CASH AND CASH EQUIVALENTS
Reconciliation of cash
Cash at the end of the financial year as shown in the consolidated
statement of cash flows is reconciled to items in the consolidated
statement of financial position as follows:
Cash at bank and cash in hand
Cash at bank earns interest at floating rates based on daily bank deposit rates.
There were no Deposits at call at the end of the 2013 or 2014 financial years.
The Group has no credit standby arrangements, loan or overdraft facilities.
CONSOLIDATED
2013
$
2014
$
460,485
460,485
1,358
1,358
RESOURCE STAR LIMITED
ABN 71 098 238 585
38
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
5. CASH AND CASH EQUIVALENTS (continued)
(a) Reconciliation of net loss after tax to net cash flows from
operations
Net loss
Adjustments for:
Depreciation on property, plant and equipment
Exploration expenditure written off
Share based payments
Loss on sale of equipment
Foreign exchange gain
Convertible Note adjustment
Equity settled fees
Changes in assets and liabilities:
(Increase)/decrease in trade and other receivables
(Decrease)/increase in trade payables and accruals
(Increase)/decrease in prepayments
Net cash provided by/(used in) operating activities
6. TRADE AND OTHER RECEIVABLES
Current
Accrued income
Other receivables (i)
(i) Other receivables are non-interest bearing and expected to be
received in 30 days.
CONSOLIDATED
2013
$
2014
$
(614,347)
(3,459,124)
469
1,116
263,446
2,919,130
-
782
391
(7,644)
27,169
8,120
-
-
-
-
10,660
(2,463)
157,262
240,504
1,030
3,224
(160,782)
(289,493)
-
13,240
13,240
-
35,864
35,864
The Group has no concentration of credit risk with respect to any single counter party or group of counter parties. All
of the other receivables are based in Australia. No amounts of other receivables are past due nor impaired.
RESOURCE STAR LIMITED
ABN 71 098 238 585
39
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
7. OTHER CURRENT ASSETS
Current
Prepayments
8. DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
Costs carried forward in respect of:
Exploration and evaluation phase – at cost
Balance at beginning of year
Expenditure incurred
Expenditure written off *
Total deferred exploration and evaluation expenditure
CONSOLIDATED
2013
$
2014
$
7,454
7,454
8,484
8,484
79,023
2,748,019
184,423
250,134
(263,446)
(2,919,130)
-
79,023
* An assessment of the recoverable amount has been completed on all tenements and capitalised expenditure
incurred during the 30 June 2014 financial year (2013: $2,919,130) was written off. Write-downs occurred where
capitalised expenditure was considered to exceed the recoverable amount, not in the Group’s mandated area of
“uranium and associated elements” or in relation to expired licenses.
9. PROPERTY, PLANT AND EQUIPMENT
Plant and equipment
At 1 July, net of accumulated depreciation and impairment
1,251
2,367
CONSOLIDATED
2013
$
2014
$
Additions
Disposals
Depreciation charge for the year
At 30 June, net of accumulated depreciation and impairment
Cost
Accumulated depreciation and impairment
Net carrying amount
-
(782)
(469)
-
13,687
(13,687)
-
-
-
(1,116)
1,251
13,687
(12,436)
1,251
RESOURCE STAR LIMITED
ABN 71 098 238 585
40
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
10. TRADE AND OTHER PAYABLES
Current
Unsecured Liabilities
Trade payables
Accrued expenses
Included in the above balance are the following amounts payable to
current and former Directors and their related entities:
Current and former Directors and their related entities
Refer to remuneration report for further details.
11. BORROWINGS
Current Liabilities
Loan from related entities (i)
Convertible notes (ii)
Convertible note derivative
CONSOLIDATED
2013
$
2014
$
419,674
105,554
222,132
96,297
525,228
318,429
119,103
119,103
96,600
96,600
-
81,644
47,098
2,902
50,000
-
-
81,644
Refer to remuneration report for further details.
(i) Red Rock Resources Plc (Red Rock) is a substantial shareholder of the Company and holds more than 20% of the
issued capital. The amount owed to Red Rock by the Group at 30 June 2014 was $Nil (30 June 2013: $26,880). The
borrowing is unsecured and non-interest bearing.
(ii) The Convertible Notes have a Face value of $1.00 and a 12 month maturity date from the date of issue and are
unsecured. The Notes were issued in October 2013 and are convertible into Fully Paid Ordinary Shares at $0.0125
per Note. Interest is payable at the rate of 5.5% per annum.
For financial reporting purposes, the Company has had to determine the fair value of the convertible note and the
derivative liability at initial recognition and period end. The fair value of the convertible notes and derivative liability as
at 30 June 2014 were $47,098 and $2,902 respectively and were classified as category 3 instrument for fair value
purposes.
Their fair value was estimated by discounting the future contractual cashflows at the current market interest rate that
are available to the group for similar instruments without a conversion option. The discount rate used was 12% based
on unobservable market input. Had a discount rate of 15% been used, their fair value would have been $45,870 and
$4,130 respectively.
There were no transfers between categories during the period.
RESOURCE STAR LIMITED
ABN 71 098 238 585
41
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
12. CONTRIBUTED EQUITY
Ordinary shares issued and fully paid
CONSOLIDATED
2014
$
2013
$
33,569,173
32,930,782
33,569,173
32,930,782
Fully paid ordinary shares carry one vote per share and carry the right to dividends. Changes to the then
Corporations Law abolished the authorised capital and par value concept in relation to share capital from 1 July 1998.
Therefore, the company does not have a limited amount of share capital and issued shares do not have a par value.
(i) Movement in ordinary shares on issue
Number
$
At 1 July 2012
Fully paid shares issued for cash
• Exercise of options – 31 August 2012
• Share purchase plan – 18 March 2013
Shares issued other than for cash
• Exploration Manager as per consultancy agreement – 27 November 2012
Share issue costs
At 30 June 2013
At 1 July 2013
Fully paid shares issued for cash
• Equity settled tenement acquisition
• Shares issued to director for services rendered
• Conversion of 110,000 Convertible Notes
• Share Placement
• Non-renounceable entitlements issue
Share issue costs
At 30 June 2014
(a) Capital management
113,856,364
32,820,772
50
10
7,333,340
110,000
250,000
-
5,000
(5,000)
121,439,754
32,930,782
121,439,754
32,930,782
5,000,000
733,334
75,000
9,167
8,800,000
104,000
20,026,912
100,134
156,000,000
468,000
-
(117,910)
312,000,000
33,569,173
Management controls the capital of the Group in order to provide the shareholders with adequate returns and ensure
that the Group can fund its operations and continue as a going concern.
The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.
There are no externally imposed capital requirements. Management effectively manages the Group’s capital by
assessing the Group’s financial risks and adjusting its capital structure in response to changes in these risks and in
the market. These responses include the management of debt levels, distributions to shareholders and share issues.
There have been no changes in the strategy adopted by management to control the capital of the Group since the
prior year. Refer to note 16 for how the Group manages its liquidity risk.
RESOURCE STAR LIMITED
ABN 71 098 238 585
42
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
13. RESERVES
Options Reserve
At 1 July 2012
Options issued
Options exercised
Options expired/forfeited
At 1 July 2013
Options issued as per the non-renounceable entitlement issue
Options exercised
Options expired/forfeited
At 30 June 2014
CONSOLIDATED
Number
$
51,514,091
473,302
-
(50)
3,120
-
(48,514,041)
(451,972)
3,000,000
78,000,000
-
24,450
156,000
-
(3,000,000)
(24,450)
78,000,000
156,000
The reserve is used to record the value of equity benefits provided to employees and directors as part of their
remuneration.
14. ACCUMULATED LOSSES
Movements in accumulated losses
At 1 July
Loss attributable to the members of the parent entity
Options expired/forfeited
At 30 June
CONSOLIDATED
2013
$
2014
$
(33,229,325)
(30,222,173)
(614,347)
(3,459,124)
24,450 451,972
(33,819,222)
(33,229,325)
15. SHARE BASED PAYMENTS
Recognised share-based payment expenses
The expense recognised for share-based payment expenses during the
year is shown in the table below:
Expense arising from equity-settled share-based payment transactions
- Directors
Expense arising from equity-settled share-based payment transactions
- Exploration Manager
Total expense arising from share-based payment transactions
-
-
-
3,120
5,000
8,120
The table below illustrates the number of options, the weighted average exercise price (WAEP) of and movements in
share options issued by the Company during the year to key management personnel current and prior:
RESOURCE STAR LIMITED
ABN 71 098 238 585
43
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
15. SHARE BASED PAYMENTS (continued)
30 June
2014
No.
30 June 2014
Weighted
average
exercise price
30 June
2013
No.
30 June 2013
Weighted
average
exercise price
Outstanding at the beginning of the period
3,000,000
$0.1875
5,550,000
$0.1941
Granted during the period
Forfeited during the period
Outstanding at the end of the period
Exercisable at the end of the period
-
-
-
-
(3,000,000)
$0.1875
(2,550,000)
-
-
-
-
3,000,000
3,000,000
$0.2020
$0.1875
$0.1875
The outstanding balance as at 30 June 2014 for options issued under share based payments is nil.
The weighted average remaining contractual life for the share options as at 30 June 2014 was Nil (2013: 0.42 years).
The weighted average exercise price for options outstanding at year end was $Nil (2013: $0.1875).
The fair value of options granted during the year was $Nil (2013: $Nil).
The fair value of options expired during the year was $24,451 (2013: $451,972).
RESOURCE STAR LIMITED
ABN 71 098 238 585
44
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
16. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Board is responsible for monitoring and managing the Group’s financial risk exposures by monitoring the Group’s
financial risk management policies and exposures and approves financial transactions within the scope of its authority. It
also reviews the internal controls relating to currency risk, financing risk and interest rate risk. The overall risk management
strategy seeks to assist the Group to meet its targets, while minimising potential adverse effects on financial performance.
The Group’s principal financial instruments comprise receivables, payables, cash, convertible notes and financial liabilities
from related parties.
The main purpose of these financial instruments is to finance the Group’s operations. The Group has other financial assets
and liabilities such as trade receivables and trade payables, which arise directly from its operations. The main risks arising
from the Group’s financial instruments are cash flow interest rate risk, liquidity risk, foreign exchange risk and credit risk.
The Board reviews and agrees policies for managing each of these risks and they are summarised below.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset,
financial liability and equity instrument are disclosed in note 1 to the financial statements.
Interest rate risk
The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s cash, short-term
deposits and short-term borrowings. The short-term debt is a fixed rate debt. Since the Group does not have any long-term
debt obligations, the Group’s exposure to this risk is nominal.
Market risk
The Group’s exposure to the financial risks of changes in foreign currency exchange rates, interest rates and equity prices
relates primarily to accounts payables. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimising return.
Financial Assets
Cash and cash equivalents
Financial Liabilities
Net exposure
CONSOLIDATED
2014
$
2013
$
460,485
-
460,485
1,358
-
1,358
Credit risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counter parties that could
lead to financial loss to the Group. The Group’s policy is to trade only with recognised, creditworthy third parties.
It is the Group’s policy that all customers who wish to trade on credit terms will be subject to credit verification procedures.
Cash and cash equivalents are held with Authorised Deposit Institutions (ADI) or an institution which has a Standard and
Poor's (Australia) Pty Ltd rating of ‘A-1+’ for terms of a year or less.
In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts
is not significant. There are no significant concentrations of credit risk within the Group. Details with respect to credit risk
of trade and other receivables are disclosed in note 6.
Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting
its obligations related to financial liabilities. The Group’s objective is to maintain a balance between continuity of funding
and flexibility through the use of available funding facilities and capital raising. The liquidity risk is currently managed by
the Board by monitoring the Group’s cash flow and commitments on a monthly basis.
Refer to Note 1(u) for additional details.
The tables on page 48 reflects all contractually fixed pay-offs and receivables for settlement, repayments and interest
resulting from recognised financial assets and liabilities. Cash flows for financial assets and liabilities without fixed amount
or timing are based on the conditions existing at 30 June 2014 and 2013.
RESOURCE STAR LIMITED
ABN 71 098 238 585
45
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
16. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Foreign currency risk management
Exposure to foreign exchange risk may result in the fair value of cash flows of a financial instrument fluctuating due to
movement in foreign exchange rates of currencies in which the Group holds financial investments and/or financial liabilities
which are other than the AUD currency of the Group.
The Group undertakes certain transactions denominated in foreign currencies, hence exposures to exchange rate
fluctuations arise.
The carrying amount of the Group’s foreign currency denominated monetary assets and monetary liabilities at the reporting
date is as follows:
MWK
Foreign currency sensitivity analysis
The Group is exposed to Malawian (MWK) currency fluctuations.
Liabilities
Assets
2014
$
7,030
2013
$
5,162
2014
$
-
2013
$
-
The following table details the Group’s sensitivity to a 10% increase and decrease in the Australian dollar against the
relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key
management personnel and represents management’s assessment of the possible change in foreign exchange rates. The
sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at
the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans where the
denomination of the loan is in a currency other than the currency of the lender or the borrower. A positive number indicates
an increase in profit or loss and other equity where the Australian Dollar (AUD) strengthens against the respective currency.
For a weakening of the Australian Dollar against the respective currency there would be an equal and opposite impact on
the profit and other equity and the balances below would be negative.
Profit or loss
Fair values
AUD impact
Consolidated
2014
$
614
2013
$
516
Set out below is a comparison by category of carrying amounts and fair values of all of the Group’s financial instruments
recognised in the financial statements. The fair values of financial assets have been calculated using market interest rates.
30 June 2014
Assets
Financial assets at fair value through profit or
loss
Derivatives used for hedging
Available-for-sale financial assets
Liabilities
Convertible Note
RESOURCE STAR LIMITED
ABN 71 098 238 585
Consolidated
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
50,000
50,000
50,000
50,000
46
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
16. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and
available-for-sale securities) is based on quoted market prices at the end of the reporting period. The quoted market price
used for financial assets held by the Group is the current bid price. These instruments are included in level 1.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is
determined using valuation techniques. The Group uses a variety of methods and makes assumptions that are based on
market conditions existing at the end of each reporting period. Quoted market prices or dealer quotes for similar
instruments are used to estimate fair value for long-term debt for disclosure purposes. Other techniques, such as
estimated discounted cash flows, are used to determine fair value for the remaining financial instruments. In the
circumstances where a valuation technique for these instruments is based on significant unobservable inputs, such
instruments are included in level 3. There were no significant transfers between levels 1 and 2 during the year.
The following table presents the changes in level 3 instruments for the years ended 30 June 2014 and 30 June 2013.
30 June 2014
Balance at beginning of year
Initial recognition
Disposals
Gain/(Losses) recognised in other
comprehensive income
Balance at end of year
Consolidated
Convertible
Note
$’000
-
48,047
-
1,953
50,000
Total
$’000
-
50,000
-
1,953
50,000
Total gains or losses for the period included in
other income (other expenses that relate to
assets held at end of reporting period
7,665
7,665
As at the end of the 30 June 2013 financial year, the Group did not have any financial instruments held at fair value and
accordingly, the fair value hierarchy was not required to be applied.
RESOURCE STAR LIMITED
ABN 71 098 238 585
47
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
116. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
CONSOLIDATED
Financial assets
Cash
Other financial assets
Trade and other receivables
Financial liabilities
Trade and other payables
Borrowings
Interest rate risk
Carrying amount
Fair value
2014
$
2013
$
2014
$
2013
$
460,485
1,358
460,485
-
-
-
1,358
-
13,240
35,864
13,240
35,864
419,674
50,000
222,132
81,644
419,674
50,000
222,132
81,644
The following table sets out the carrying amount, by maturity, of the financial instruments:
<1 year
$
1-2 years
$
2-3 years
$
3-4 years
$
4-5 years
$
>5 years
$
Total
$
Weighted
average
effective
interest
rate
%
Year ended 30/6/2014
CONSOLIDATED
FINANCIAL ASSETS
Floating rate
Cash assets
Non-interest bearing
460,485
Trade & other receivables
13,240
FINANCIAL LIABILITIES
Non-interest bearing
Trade & other payables
Borrowings
Y318
419,674
50,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
460,485
0.99%
-
13,240
0.00%
-
-
419,674
0.00%
50,000
5.5%
RESOURCE STAR LIMITED
ABN 71 098 238 585
48
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
16.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
<1 year
$
1-2 years
$
2-3 years
$
3-4 years
$
4-5 years
$
>5 years
$
Total
$
Weighted
average
effective
interest
rate
%
Period ended 30/6/2013
CONSOLIDATED
FINANCIAL ASSETS
Floating rate
Cash assets
Non-interest bearing
1,358
Trade & other receivables
35,864
FINANCIAL LIABILITIES
Non-interest bearing
Trade & other payables
Borrowings
222,132
81,644
17. CONTROLLED ENTITIES
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,358
0.99%
35,864
0.00%
222,132
0.00%
81,644
0.00%
The consolidated financial statements include the financial statements of Resource Star Limited and the controlled
subsidiaries listed in the following table:
Country of
Incorporation
% Equity interest
2013
2014
Owing to Parent Company
2014
2013
Orion Exploration Pty Ltd
Eastbourne Exploration Pty Ltd
Australia
Australia
100%
100%
100%
100%
3,780
62,363
-
-
3,780
62,363
The transactions with the subsidiaries were limited to the advance of funds during the year.
18. EVENTS AFTER THE END OF THE REPORTING PERIOD
On 2 July 2014, Mr C Guy resigned as a Non-executive director to the Company. Mr R Parker was appointed as Non-
executive director.
On 1 August 2014, Resource Star announced that it has executed a binding terms sheet pursuant to which it has been
granted an exclusive Option to conduct due diligence on Western Australian based cloud services provider Cloud Lands for
the purpose of determining whether to acquire 100% of the issued capital of Cloud Lands. Due diligence continues up to the
date of this report.
On 1 August 2014, Mr M Walker was appointed as Non-executive director to the Company.
On 12 September 2014, Mr S Cheema was appointed as Company Secretary with Ms Eryn Kestel subsequently resigning as
Company Secretary.
On 19 September, Resource Star raised $140,000 before costs through issue of 35,000,000 shares under its placement
capacity which was approved at the 16 September General Meeting of Shareholders.
Other than the above, there has not been any matter or circumstance that has arisen after the end of the reporting period
that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the
state of affairs of the Group in future financial periods.
RESOURCE STAR LIMITED
ABN 71 098 238 585
49
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
19. AUDITOR’S REMUNERATION
The auditor of Resource Star Limited is HLB Mann Judd.
Amounts received or due and receivable by HLB Mann Judd for:
An audit or review of the financial report of the entity and any other
entity in the consolidated group
20. SEGMENT INFORMATION
CONSOLIDATED
30 June 2014
$
30 June 2013
$
29,385
29,385
36,211
36,211
The Group has identified its operating segment 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.
The Group is managed primarily on the basis of its geographical segment.
During the year, the Group considers that it has operated in two segments, being mineral exploration in Australia and
Malawi (Africa).
Segment information
The following table presents revenue and profit/(loss) information and certain asset and liability information regarding
the reporting segments for the years ended 30 June 2014 and 30 June 2013. The accounting policies used to
determine the segment information are consistent with those used to prepare the Group’s financial statements.
Australia
Malawi (Africa)
$
$
Total
$
2014
Segment revenue
Segment net operating loss after tax
Segment assets
Segment liabilities
Cash flow information
21,662
(614,347)
481,179
(561,490)
-
-
-
(13,738)
Net cash flows provided by/(used in) investing activities
(111,008)
2013
Segment revenue
2,174
-
-
21,662
(614,347)
481,179
(575,228)
(111,008)
2,174
Segment net operating loss after tax
(1,413,599)
(2,045,525)
(3,459,124)
Segment assets
Segment liabilities
Cash flow information
125,980
(400,073)
-
-
125,980
(400,073)
Net cash flow provided by/(used in) investing activities
(48,115)
(190,026)
(238,141)
RESOURCE STAR LIMITED
ABN 71 098 238 585
50
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
21. RELATED PARTY DISCLOSURES
(a) Details of key management personnel (KMP)
(i) Directors
Mr A Bell
Mr M Walker
Mr G Karantzias
Mr C Guy
Mr R Parker
(ii) Executives
Director (non-executive) – appointed 6 August 2007
Director (non-executive) – appointed 1 August 2014
Director (non-executive) – appointed 18 December 2013
Director (non-executive) – appointed 9 April 2013, resigned 2 July 2014
Director (non-executive) – appointed 2 July 2014
Mr C Burrell
Director (executive) – appointed 9 April 2013, resigned 18 December 2013
Key management personnel remuneration has been included in the Remuneration Report section of the Directors’
Report.
(b) Remuneration paid or payable
Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or payable
to each member of the Group’s key management personnel for the years ended 30 June 2014 and 30 June 2013.
The total remuneration paid to KMP of the Company and the Group is as follows:
Short-term employee benefits
Post-employment benefits
Share-based payments
22. CAPITAL AND OTHER COMMITMENTS
CONSOLIDATED
30 June 2014
$
30 June 2013
$
104,921
260,131
-
-
13,501
3,120
104,921
276,752
Exploration and other commitments
In order to maintain current rights of tenure to exploration of exploration licences, the Group is required to perform a
minimum exploration work to meet the minimum expenditure requirements specified by various governments. These
obligations are subject to renegotiation when application for a mining lease is made and at other times. For the
exploration licences held at year end, the aggregate minimum expenditure requirement per annum is $Nil (2013:
$Nil).
As at 30 June 2013, the Company had a contractual commitment for the acquisition of the Spinifex Uranium Project
in accordance with the Agreement for Sale of Mining Assets, by way of the issue of 5 million shares to the vendor at
the deemed price of 1.5 cents per share.
RESOURCE STAR LIMITED
ABN 71 098 238 585
51
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
23. PARENT ENTITY DISCLOSURES
(a) Summary of Financial Information
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Net Assets
Equity
Contributed capital
(Accumulated losses)
Reserves
Options reserve
Share based payments reserve
Total equity
Financial performance
Loss for the year
Other comprehensive income (loss)
Total comprehensive income (loss)
2014
$
2013
$
474,283
3,780
43,465
63,615
478,063
107,080
561,490
381,173
561,490
381,173
(83,427)
(274,093)
33,569,173
32,930,782
(33,808,600)
(33,229,325)
(156,000)
-
-
24,450
(83,427)
(274,093)
30 June 2014
$
30 June 2013
$
(603,725)
(3,282,601)
-
-
(603,725)
(3,282,601)
(b) Contractual commitments for the acquisition of property, plant and equipment
As at 30 June 2014, the Company had no contractual commitments for the acquisition of property, plant and
equipment (2013: Nil), other than those disclosed in note 22.
(c) Guarantees and contingent liabilities
As at 30 June 2014, the Company had no guarantees or contingent liabilities (2013: Nil), other than those already
disclosed in note 24.
RESOURCE STAR LIMITED
ABN 71 098 238 585
52
ANNUAL FINANCIAL REPORT 30 June 2014
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2014
24. CONTINGENCIES
There were no contingencies as at 30 June 2014 and 2013.
25. COMPANY DETAILS
The registered office of the company is:
Level 2, 330 Churchill Avenue
Subiaco WA 6008
The principal place of business is:
Level 2, 330 Churchill Avenue
Subiaco WA 6008
RESOURCE STAR LIMITED
ABN 71 098 238 585
53
ANNUAL FINANCIAL REPORT 30 June 2014
DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 30 JUNE 2014
1.
In the opinion of the directors of Resource Star Limited (the “Company”):
(a)
the financial statements, notes and additional disclosures included in the director’s report designated as audited
are 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 2014 and of its performance for
the year then ended; and
(ii) complying with Australian Accounting Standards (including the Australian Interpretations) and the
Corporations Regulations 2001;
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable, based on the factors outlined in note 1(u); and
(c)
the financial statements and notes thereto are in accordance with International Financial Reporting Standards
issued by the International Accounting Standards Board, as outlined in note 1(c).
2.
This declaration has been made after receiving the declarations required to be made to the directors in accordance
with sections 295A of the Corporations Act 2001 for the year ended 30 June 2014.
This declaration is signed in accordance with a resolution of the Board of Directors.
Andrew Bell
Chairman
30 September 2014
RESOURCE STAR LIMITED
ABN 71 098 238 585
54
ANNUAL FINANCIAL REPORT 30 June 2014
Independent Auditor’s Report to the Members of Resource Star Limited
Report on the Financial Report
We have audited the accompanying financial report of Resource Star Limited (“Resource Star” or “
the Company”) and its controlled entities (“the Group”), which comprises the consolidated statement
of financial position as at 30 June 2014, the consolidated statement of profit or loss and other
comprehensive income, the consolidated statement of changes in equity and the consolidated
statement of cash flows for the year then ended, notes comprising a summary of significant
accounting policies and other explanatory information, and the directors’ declaration for the Group.
The Group comprises the Company and the entities it controlled at the year’s end or from time to
time during the financial year.
Directors’ Responsibility for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that is free from material misstatement, whether due to fraud or error. In Note 1
(c), the directors also state, in accordance with Accounting Standard AASB 101: Presentation of
Financial Statements, that the consolidated financial report complies with International Financial
Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted
our audit in accordance with Australian Auditing Standards. Those standards require that we comply
with relevant ethical requirements relating to audit engagements and plan and perform the audit to
obtain reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial report. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the
Company’s preparation and fair presentation of the financial report in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control.
An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made
by the directors, as well as evaluating the overall presentation of the financial report.
Our audit did not involve an analysis of the prudence of business decisions made by directors or
management.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.
Opinion
In our opinion:
(a)
the financial report of Resource Star Limited 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 2014 and of its
performance for the year ended on that date; and
(b)
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
the financial report also complies with International Financial Reporting Standards as disclosed in Note
1 (c).
Emphasis of Matter
Without modifying our opinion, we draw attention to Note 1 (u) in the financial report, which indicates that the
Group incurred a loss of $614,347 (2013: loss of $3,459,124) and experienced a net operating cash outflow of
$160,782 during the year (2013: outflow of $289,493). Those conditions, along with other matters set forth in
Note 1 (u), indicate 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.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2014.
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.
Auditor’s Opinion
In our opinion, the Remuneration Report of Resource Star Limited for the year ended 30 June 2014 complies
with section 300A of the Corporations Act 2001.
HLB Mann Judd
Chartered Accountants
Melbourne
30 September 2014
Jude Lau
Partner
ASX ADDITIONAL INFORMATION
Additional information required by the Australian Securities Exchange Ltd, and not shown elsewhere in this report is
as follows. The information is current as at 30 September 2014.
(a) Distribution of equity securities
(i) Ordinary share capital
(cid:1) 351,025,466 fully paid shares held by 1,464 shareholders. All issued ordinary shares carry one vote per
share and carry the rights to dividends.
Analysis of numbers of equity security holders by size of holding are:
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,000 and over
Class of Equity Security
Number of
Holders
543
277
176
335
133
Fully Paid Ordinary
Shares
141,542
687,846
1,203,157
11,444,125
337,548,796
Total Holders
1,464
351,025,466
There are 1,287 shareholders holding less than a marketable parcel of shares.
(b) Twenty largest holders of quoted equity securities (fully paid ordinary shares)
CITICORP NOMINEES PTY LIMITED
RED ROCK RESOURCES PLC
MR MATHEW DONALD WALKER
ECOMETRIX PTY LTD
AVIEMORE CAPITAL PTY LTD
SABRELINE PTY LTD
MR WILLIAM MURRAY MITCHELL + MRS DIANE JOAN MITCHELL
RED ROCK RESOURCES PLC
RAVENHILL INVESTMENTS PTY LTD
ECOMETRIX PTY LTD
LUKE ANDREW HALL
THUNDELARRA LTD
WIMALEX PTY LTD
TROMSO PTY LTD
J P MORGAN NOMINEES AUSTRALIA LIMITED
MS LORAINE VON DER WEID-DE WECK
MR PAUL BARBER
MR GARRY BENJAMIN RALSTON
BONVIEW ORCHARDS PTY LTD
MR MATTHEW COOK
Number held
Percentage
%
63,031,450
57,335,134
50,000,000
22,057,330
20,000,000
12,500,000
10,000,000
8,000,000
6,250,000
5,061,406
5,000,000
5,000,000
5,000,000
4,400,000
3,872,141
3,500,000
2,600,000
2,250,000
2,000,000
2,000,000
17.96
16.33
14.24
6.28
5.70
3.56
2.85
2.28
1.78
1.44
1.42
1.42
1.42
1.25
1.10
1.00
0.74
0.64
0.57
0.57
289,857,461
82.57
RESOURCE STAR LIMITED
ABN 71 098 238 585
57
ANNUAL FINANCIAL REPORT 30 June 2014
ASX ADDITIONAL INFORMATION
(c) Substantial holders
Substantial holders in the company are set out below:
Ordinary shares
CITICORP NOMINEES PTY LIMITED
RED ROCK RESOURCES PLC
MR MATHEW DONALD WALKER
ECOMETRIX PTY LTD
AVIEMORE CAPITAL PTY LTD
(d)
Voting rights
All ordinary shares carry one vote per share without restriction.
Number
held
63,031,450
57,335,134
50,000,000
22,057,330
20,000,000
Percentage
17.96
16.33
14.24
6.28
5.70
(e)
Business Objective
The Company has used its cash and assets that are readily convertible to cash in a way consistent with its business
objectives.
(f) Schedule of Tenements as at 29 September 2014
WESTERN AUSTRALIA
Project
Tenement
Interest
Spinifex
E80/3572
Application
NORTHERN TERRITORY
Project
Tenement
Interest
Edith River Project
ELA25884
Celia Prospect
ELA27149
ELA28903
ELA24414
Woolgni Mine Area
MLA24342
Application
Application
Application
Application
Application
MALAWI (AFRICA)
Project
Tenement
Interest
llomba Hill
Ulindi
EPL0264/08
EPLA
90%
Application
RESOURCE STAR LIMITED
ABN 71 098 238 585
58
ANNUAL FINANCIAL REPORT 30 June 2014