Annual Report 2018
An Australian Gold and Base Metals Exploration Company
Corporate directory
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01
1
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Principal Place of Business & Registered Office
Stock Exchange Listing
Level 3, 20 Parkland Road
Osborne Park WA 6017
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Contact information
Phone: +61 8 9489 2680
Email:
info@cygnusgold.com
Website: www.cygnusgold.com
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Australian Business Number
80 609 094 653
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Directors
Primary listing: Australian Securities Exchange
ASX Code: CY5
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Share Register
Computershare Investor Services Pty Ltd
GPO Box 2975, Melbourne VIC 3001
Phone: +61 3 9415 5000
Fax:
+61 3 9473 2500
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Bankers
National Australia Bank
100 St Georges Terrace
Mr Michael Bohm
Non-executive Chairman
Perth WA 6000
Mr James Merrillees
Managing Director
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Mr Simon Jackson
Non-executive Director
Solicitors
Dr Oliver Kreuzer
Non-executive Director
Gilbert and Tobin
Dr Amanda Buckingham Non-executive Director
Level 16, Brookfield Place Tower 2
123 St Georges Terrace
PERTH WA 6000
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Company Secretary
Mr Michael Naylor
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Auditors
Grant Thornton Audit Pty Ltd
Central Park
Level 43 152-158 St Georges Terrace
Perth WA 6000
Annual Report 2018 - Cygnus Gold Limited // 1
Cygnus Gold - Contents
02
As we await results from our first quarter 2019
exploration activities and plan our work for the
months ahead, the coming year looks to be an
important one in shaping our Company and
its success.
2 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Contents
Contents
03
Statement of Profit and Loss and Other Comprehensive Income
01 Corporate Directory
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05 Chairman’s Statement
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08 Directors’ Report
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58 Auditor’s Independence Declaration
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61
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62 Statement of Financial Position
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63 Statement of Changes in Equity
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64 Statement of Cash Flows
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65 Notes to the Financial Statements
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87 Directors’ Declaration
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88 Independent Auditor’s Report
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91 ASX Additional Information
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Cygnus Gold - Chairman’s statement
04
the team has built on our extensive project portfolio
we have been successful in executing numerous land
access agreements and subsequently undertaken
several drill programs on our 100% owned projects
4 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Chairman’s statement
Chairman’s statement
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05
Fellow shareholders,
I am pleased to present the 2018 Annual Report for Cygnus
Gold Limited (ASX: CY5), reflecting on the Company’s first year
listed on the Australian Securities Exchange following the
completion of our Initial Public Offering and the commencement
of trading in January 2018.
In the time since our listing, we have been successful in
executing numerous land access agreements and subsequently
undertaken several drill programs on our 100% owned projects.
Further, the team has built on our extensive project portfolio
in the Wheatbelt region of Western Australia where we are
exploring for gold and base metals in the under-explored
Southwest Terrane – home to gold discoveries including the
significant Tampia gold resource.
The focus to date has been the Stanley Project, where during
2018 we completed more than 12,000 metres of drilling. There
are multiple prospects at Stanley, including Bottleneck, Stanley
Hill, McDougall and Brays, and our work on the project to date
has produced some promising results including these from
Bottleneck including 9.5m at 29.2 g/t Au in hole BNDD001 and
10.9m at 15.1 g/t Au in BNDD003.
We have subsequently completed follow-up drilling at
Bottleneck, as well as the Stanley Hill and McDougall prospects
in early 2019. A new target is emerging at McDougall South
where we have identified a coherent (1km x 500m) gold
anomaly associated with a north-west-trending structural zone,
and two holes intersected anomalous gold.
In addition to Stanley, we also undertook drilling at our
Bencubbin Project as part of a program co-funded by the WA
Government, with our initial focus on the Jefferies prospect, a
3.5km long gold auger anomaly. This previous work returned
a wide, anomalous gold intercepts in limited (shallow) drilling
including 12m @ 2.15g/t Au from surface, and we have
followed this up with a 10-hole program in February 2019.
• Consolidated a significant tenement
holding for gold and base metal
exploration in Western Australia
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• Attracted cornerstone investment from
Resource Capital Funds, Southern
Cross Capital and Gold Road
Resources Limited
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• Recruited a management team
to undertake both the corporate and
technical management processes
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• Arranged land access and permitting
for exploration on the Company’s
priority target areas
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• Undertaken a number of exploration
and drilling programs foreshadowed in
our IPO
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• Entered into multiple earn-in and JV
agreements with Gold Road
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• Successful official quotation on
the ASX
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• Successfully applied for WA
Government co-funding for diamond
drilling at Stanley, Burracoppin
and Bencubbin.
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Cygnus Gold - Chairman’s statement
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Chairman’s statement
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Whilst gold is our focus, the team also identified an extensive surface nickel
anomaly over an 18km strike at Bencubbin North. The 70km-long Bencubbin
Greenstone is considered a prime target for sulfide-hosted nickel-copper and base
metals mineralisation, however the nickel targets have not been adequately tested
nor drilled. We have recently undertaken a reconnaissance soil sampling program
there in early 2019 and we expect to commence a wider program over the
coming months.
The Company has also progressed our Joint Venture (JV) projects with Gold Road
Resources Ltd (ASX: GOR), a major shareholder in our company and a
well-credentialled partner. Cygnus is managing these JVs at Wadderin, Lake
Grace and Yandina, and we have been busy already in 2019 completing surveying,
sampling and a 23-hole drill program. More drilling is planned for the
coming months.
Following on from the harvest season in the Wheatbelt, it has been a busy period of
exploration at Cygnus and I would like to thank our Management and Staff for their
significant efforts through 2018. I would also like to thank our Shareholders for their
support and encouragement for our exploration efforts.
As we await results from our first quarter 2019 exploration activities and plan
our work for the months ahead, the coming year looks to be an important one in
shaping our Company and its success. I hope you will share that journey with us.
Michael Bohm
Non-executive Chairman
6 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Chairman’s statement
The Company has also progressed our Joint Venture
07
projects with Gold Road Resources Ltd,
a major shareholder in our company and a
well-credentialled partner.
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Cygnus Gold - Directors’ Report
08
Directors’ Report
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The directors present their report, together with the financial statements for the year
ended 31 December 2018 for Cygnus Gold Limited (Cygnus or the Company).
Directors
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The names and details of the Company’s directors in office during the financial year and until the date of this
report (unless otherwise stated) are as follows:
Mr Michael Bohm - Non-executive Chairman Director
Appointed 30 September 2016
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Mr Bohm is a qualified mining professional with
Risk Committees and Chairs their Remuneration
significant corporate and operations experience. He
Committees. Prior to this, he has held a number
has had extensive minerals industry experience in
of directorships including those with Perseus
Australia, South East Asia, Africa, Chile, Canada and
Mining Limited, Tawana Resources Limited, Argyle
Europe. A graduate of WA School of Mines, Mr Bohm
Diamonds Mines, Sally Malay Mining Limited and
has worked as a mining engineer, mine manager,
Ashton Mining of Canada.
study manager, project manager, project director
and managing director and has been directly
involved in a number of new mine developments.
Mr Bohm currently serves as a Director of a number
of ASX-listed companies and sits on their Audit &
Over the past three years, Mr Bohm has also
held directorships with the following ASX listed
companies:
Other current directorships
Commenced
Ceased
Mincor Resources Limited
Ramelius Resources Limited
1 January 2017
29 November 2012
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Former directorships in the last 3 years
Berkut Minerals Limited
Perseus Mining Limited
1 July 2016
30 June 2017
15 October 2009
31 May 2018
Tawana Resources Limited
1 August 2015
21 October 2016
8 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
Mr James Merrillees – Managing Director
Appointed 17 November 2017
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09
Mr Merrillees is a professional geologist with more than 20 years’ experience in minerals exploration and
development. He has wide-ranging experience leading teams exploring for and evaluating precious and base
metals globally. Mr Merrillees experience includes senior technical and corporate roles for ASX-listed major
and junior gold and base metals explorers and producers. He is a member of the AusIMM and holds Bachelor
of Science (Geology) and Bachelor of Commerce (Accounting and Finance) degrees and a Graduate Diploma in
Applied Finance.
Over the past three years, Mr Merrillees has not held any directorships with an ASX listed company.
Mr Simon Jackson – Non-executive Director
Appointed 17 November 2017
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Mr Jackson is a Chartered Accountant with 26 years’ experience in the gold industry. He has held positions as
CEO and MD of ASX-listed Brazilian-focussed gold producer Beadell Resources Limited and President & CEO
of the TSXV-listed Orca Gold Inc, a junior exploration company with multiple gold discoveries in Sudan. From
1999 to 2010, he was an integral part of the senior management team at Red Back Mining Inc, which grew from
a small West Perth-based junior to a TSX-listed intermediate producer that was taken over by Kinross Gold Corp
in 2010. Mr Jackson’s career includes corporate transactions and equity financings involving assets in Australia,
Africa, Asia and South America.
Over the past three years, Mr Jackson has also held directorships with the following ASX listed companies:
Other current directorships
Commenced
Ceased
Coziron Resources Limited
Kopore Metals Limited
30 January 2019
7 March 2019
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Former directorships in the last 3 years
Cardinal Resources Limited
31 August 2015
12 October 2017
Beadell Resources Limited
10 November 2013
14 July 2018
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Cygnus Gold - Directors’ Report
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Dr Oliver Kreuzer – Non-executive Director
Director since April 2016
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Dr Kreuzer is a Registered Professional Geoscientist (MAIG, RPGeo) with a broad skill set in structural, generative
and corporate geology honed during a 20-year career in applied research and mineral exploration across a
wide range of gold, base metals and uranium projects in Australia, Africa, North America, Europe and Asia. His
work directly contributed to new company floats (ASX:AUC, ASX:RGU, ASX:CY5), company transforming project
acquisitions (ASX:AWV, ASX:GLA) and new discoveries. Dr Kreuzer’s passion lies in the application of superior
geoscience to exploration targeting and shortening the time frame to discovery.
Over the past three years, Dr Kreuzer has not held any directorships with an ASX listed company.
Dr Amanda Buckingham – Non-executive Director
Director since April 2016
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Dr Buckingham has been involved full-time in mineral exploration for more than 20 years. Dr Buckingham
founded and remains a major shareholder and director of companies in the United States, Australia and
Singapore and has been fundamental to their high profitability. Dr Buckingham founded Fathom Geophysics
in 2007, an industry leading geophysical group that has developed worlds-best technology for targeting under
cover and significantly increasing the chance of discovery.
Dr Buckingham’s early career was at major mining companies such as Rio Tinto and several listed juniors. She
has wide-ranging exploration experience in North and sub-Saharan Africa, North and South America, South East
and Central Asia, Russia and Europe. Dr Buckingham is a research fellow at the University of Western Australia
and a founder of Cygnus.
Over the past three years, Dr Buckingham has not held any directorships with an ASX listed company.
10 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
Interests in the shares and options of the Company
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As at the date of this report, the interests of the directors in the shares (direct and indirect) of Cygnus Gold
11
Limited were:
Name
Number of ordinary shares
Performance Rights
Mr Michael Bohm
Mr James Merrillees
Mr Simon Jackson
Dr Oliver Kreuzer
Dr Amanda Buckingham
3,170,001
150,000
303,334
1,883,334
2,333,334
There are no options on issue at the date of this report.
Company Secretary
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Mr Michael Naylor
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100,000
350,000
100,000
100,000
100,000
Mr Naylor has 23 years’ experience in corporate advisory and public company management since commencing
his career and qualifying as a Chartered Accountant with Ernst & Young. He has been involved in the financial
management of mineral and resource focused public companies serving on the board and in the executive
management team focusing on advancing and developing mineral resource assets and business development.
Operating results
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The loss of the Company for the year ended 31
Principal activities
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Cygnus is an exploration company focused on the
December 2018 after providing for income tax
discovery of gold and base metals deposits in the
amounted to $638,119 (2017: $784,721).
south west Yilgarn of Western Australia.
Review of financial position
—
The net assets are $5,626,625 as at 31 December
2018 (2017: $6,607,517).
There have been no significant changes in the nature
of these activities during the period.
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Cygnus Gold - Directors’ Report
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The focus to date has been the Stanley Project, where
during 2018 we completed more than 12,000 metres
of drilling.
12 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
Review of Operations
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13
Overview
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Cygnus is targeting the discovery of high-grade gold and base metals deposits within
the Southwest Terrane of Western Australia. The Southwest Terrane is a unit of high
metamorphic grade rocks forming part of the well-mineralised Yilgarn Craton.
In Western Australia, particularly in the Southwest Terrane, high-grade metamorphosed
greenstone sequences have been targeted sporadically for their gold potential with
some success at Griffins Find, Katanning and Tampia. However, compared to other
parts of the Yilgarn Craton, the intensity of exploration activity is relatively low. Cygnus
believes this is partly a result of widespread, post-mineral cover which requires detailed
geophysical data to effectively explore.
It was only in February 2016 that higher resolution geophysical data over the Southwest
Yilgarn became publicly available. Using this newly released data, Cygnus’ team
generated maps identifying the greenstone belts across the Southwest Terrane
including key structures controlling the location of mineralisation.
The areas identified by this approach were subject to detailed screening and the
Company subsequently applied for exploration licences over targets that passed this
initial screening and were ranked highest for potential to host economic gold deposits.
At 31 December 2018, the Company had assembled a ~9,000km² land package to
explore for gold and base metals in this highly prospective region.
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Overview
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Figure 1: Location of Cygnus’ Projects, Southwest Western Australia
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Cygnus Gold - Directors’ Report
In Western Australia, particularly in the Southwest
15
Terrane, high-grade metamorphosed greenstone
sequences have been targeted sporadically for their
gold potential with some success at Griffins Find,
Katanning and Tampia.
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Stanley Project (Cygnus 100%)
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Cygnus’ most advanced exploration project
is the Stanley Project, comprising an area of
160km2 approximately 60km northeast of
the Wheatbelt town of Katanning.
Stanley was targeted following Cygnus’
interpretation of available geophysical
datasets which defined a more than 20km-
long strike length of prospective greenstone
sequences which included widespread,
shallow and high-grade gold mineralisation
identified by previous explorers (Figure 2).
Following the successful IPO in January 2018
Cygnus has completed over 12,000m of
drilling at Stanley as discussed below.
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Figure 2: E70/4787 (Stanley Project), key drill results and prospects. Note: The geology interpretation is explained in the Independent
Technical Assessment Report in Section 8 of the Cygnus Gold Prospectus dated 22 November 2017
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January 2018 Diamond Drilling
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The Company’s initial 629m diamond core drilling program targeted the Bottleneck prospect which is defined
by widespread historical intersections of shallow, high-grade gold. This prospect had received limited deeper
drilling and the Company had also interpreted a ‘down-plunge’ target, which had never been tested.
The initial diamond exploration program returned a number of encouraging results including (refer ASX
announcements on 22 February 2018 and 7 March 2018)1:
• BNDD001: 9.50m @ 29.20 g/t Au from 36.70m incl. 2.4 m @ 114.63 g/t Au from 38.70m
• BNDD003: 10.95m @ 15.10 g/t Au from 24.70m incl. 4.75 m @ 34.17 g/t Au from 24.70m
• BNDD006: 6m @ 3.27 g/t Au from 157.5m incl. 2m @ 8.82 g/t Au from 161.5m.
Drilling confirmed the width and grade of mineralisation intersected in the historical aircore holes, and notably
holes BNDD001 and BNDD006 intersected mineralisation in fresh basement and these were targeted for follow
up drilling described below (also Figures 3 & 4).
This program was co-funded by a grant from the WA Government’s Exploration Initiative Scheme.
Figure 3: Plan view of the Bottleneck Prospect with intersections >0.1 g/t Au in Cygnus Gold’s 2018 diamond drilling program.
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Figure 4: Section BNDD001 looking north with intervals >0.1 g/t Au and significant intervals >1 g/t Au highlighted (holes 08KUAC0075 and
09KUAC009 are historical holes not drilled by Cygnus2)
February 2018 Reverse Circulation (RC) Drilling
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Cygnus followed up this initial diamond drilling with a 32-hole (2,975m) RC drilling program, targeting the high-
grade zone and basement extensions of the gold mineralisation at Bottleneck, as well as targets on the Brays
and Stanley Hill prospects, which had never been tested with deeper drilling.
Hole BNRC009, targeting extensions to the high-grade mineralisation at Bottleneck intersected (refer ASX
announcement on 8 June 2018)1:
• 7m @ 4.9g/t Au from 42m incl. 1m @ 33.0g/t Au from 42m
BNRC009 confirmed the targeted high-grade horizon however did not materially extend mineralisation into the
basement.
Six holes of this program (BNRD005, BNRD007, BNRD010, BNRC022 BNRD023 BNRD024 and BNRD025)
targeted extensions to mineralisation in Cygnus hole BNDD006 which considered a priority target by the
Company as it was the first hole to intersect high-grade mineralisation in fresh basement rock at Stanley.
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Significant intersections included (refer ASX
Resampling of the mineralised intervals in STRC0002
announcement on 8 June 2018)1:
is underway to determine whether further follow-up
•
BNRD010:
is warranted.
o 3.0m @ 1.01g/t Au from 111.0m and
Holes STRC0004, 0005 and 0006 were drilled to
o 1.0m @ 0.32g/t Au from 116.2m and
test a domal structure to the south of Bottleneck,
o 2.0m @ 0.58g/t Au from 131.2m and
with the best result coming in STRC0005 with 4m
o 1.0m @ 0.66g/t Au from 152.3m.
@ 1.08g/t Au from 32m. STRC0004 and STR0006
•
BNRD024:
did not intersect significant mineralisation and this
o 2.7m @ 0.33g/t Au from 151.4m and
dome is considered to have been tested with no
o 1.0m @ 0.10g/t Au from 190.0m.
follow up planned.
•
BNRD005 intersected several narrow zones
of mineralisation coincident with BNDD006
including 1m @1.31g/t Au from 83m.
The Company also drilled two RC holes (total 182m)
at the McDougall South prospect targeting historical
aircore gold anomalism associated with a complex
structural zone with best intersections (Refer ASX
• Holes BNRC022 and BNRD023 intersected a
announcement 4 February 2019)1:
narrow, mineralised zone that extends more
than 80m between these two holes, with best
intervals of 4m @ 0.27g/t Au from 148m
in BNRC022.
Several RC holes were also drilled to test aircore
gold anomalies drilled by Cygnus up to 5km from
Bottleneck, and significant intersections from these
holes included (refer CY5 ASX announcement 6 June
•
•
STRC0007: 4m @ 0.25g/t Au from 32m and
STRC0008: 16m @ 0.19g/t Au from 32m.
An aircore drilling program at McDougall South
was planned to follow up this anomalous zone
(discussed below).
December 2018 Aircore Drilling
2018)1:
—
•
•
•
BNRC012 with 2m @ 0.37g/t Au from 41m;
BNRC013 with 1m @ 1.07g/t Au from 34m; and
BNRC015 with 6m @ 0.62g/t Au from 46m.
December 2018 RC Drilling
—
In addition to the RC drilling, the December 2018
program included 65 aircore (AC) holes for
2,661m designed to test targets identified from
the Company’s ground geophysical and surface
geochemistry surveys as well as follow up zones of
anomalous gold intersected in the Company’s
RC programs.
In December 2018 the Company completed an
eight-hole (866m) RC drilling program testing
additional gold targets at Stanley.
The best results from the AC program came in STAC028
at McDougall South with 12m @ 0.34g/t Au from 16m
(Refer ASX announcement 4 February 2019)1.
Three holes (STRC0001, STRC0002, STRC0003)
targeted extensions to the Bottleneck prospect
defined by the diamond and RC programs
completed earlier in the year.
The best result from this program came in hole
STRC0002 which ended in mineralisation with 6m
@ 0.74g/t Au from 136m as well as a narrow zone
of mineralisation higher up the hole with 4m
@ 1.17g/t Au from 124m (refer CY5 ASX
announcement 6 June 2018)1.
The intersection at STAC028 is part of a large (1km
x 500m), and coherent gold anomaly at McDougall
South associated with a NW trending structural
zone (Figures 5 & 6). This gold anomalous zone is
defined by a +50ppb Au mineralised halo hosted in
basement rock interpreted as a felsic granulite after
a granitic precursor.
Two further lines of AC drilling and two RC holes
were drilled in early 2019 to follow up this zone at
McDougall South with assay results anticipated in
March-April 2019.
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Figure 5: McDougall South Prospect, drilling over interpreted geology with contours of maximum downhole Au.
Figure 6: McDougall South section with significant gold intersections at STRC007 and 008 within a broader >50ppb Au halo.
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BENCUBBIN PROJECT (Cygnus 100%)
—
Cygnus Gold’s 675km2 Bencubbin Project,
located ~220km northeast of Perth, was
originally pegged for its gold prospectively,
centred on the historical Jefferies prospect
on a 10km long section of the Bencubbin
Greenstone Belt.
During the year work by the Company’s
technical team recognised the nickel and
base metals potential of the ~80km long
Bencubbin Greenstone and two additional
tenements were applied for at Bencubbin
North and Bencubbin South to cover the
entire Belt.
BENCUBBIN
—
The Company’s initial focus at Bencubbin
was on the Jefferies gold prospect, where
previous explorers defined a ~3.5km long
auger gold anomaly with assay values up
to 566ppb Au broadly coincident with a
contact between the greenstone belt and
a granite intrusion (Figure 7)2.
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Figure 7: Bencubbin Project interpreted geology and historical auger samples². The geology is based on geophysical interpretation and
modelling as explained in the Company’s Independent Technical Assessment Report within Cygnus’ Prospectus dated 22 November 2017.
Historical exploration at Jefferies also reported rock
In addition, the potential for the gold mineralisation
chip assays up to 12.9g/t Au and wide, anomalous gold
at Jefferies to extend further towards the south and
intercepts in shallow drilling including:
southwest along the interpreted granite-greenstone
• 12m @ 2.15g/t Au from surface in hole NM2R-1132
contact was untested.
• 13m @ 0.62g/t Au from 42m to EOH, including
An RC rig mobilised to drill the Jefferies Project in
2m @ 3.36g/t Au from 52m in hole NM2R-0142.
early 2019 with results expected early in the second
Despite these encouraging results, the Company
quarter of 2019.
considers that the Jefferies prospect remains
The drilling program at Bencubbin was co-funded by
underexplored and, apart from generally shallow air
a WA Government Exploration Incentive Scheme
core and RAB drilling, has only been tested by two
(EIS) grant.
diamond and 14 RC holes.
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BENCUBBIN NORTH (NI-CU ± CO, BASE METALS)
—
Nickel Potential
—
Bencubbin North was pegged by the
Company in mid-2018 after a review of
historical exploration identified a regionally
extensive nickel auger surface geochemical
anomaly, developed over a strike length of
~18km, and associated with ultramafic rocks
within a north-northwest trending Archaean
greenstone belt (Figure 8).
Several discrete Cu and Au anomalies
are located within or adjacent to the Ni
anomalism, with a maximum coincident
auger Cu result of 162ppm recorded, and
a (separate) maximum Au value of 71 ppb
reported, both within the greenstone
sequence (Figure 9).
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Figure 8: E70/5169 (Bencubbin North) surface geochemistry grid contours for nickel, historical drilling and Jefferies prospect to the SE.
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Figure 9: E70/5169 (Bencubbin North); gridded historical nickel, copper and gold surface geochemistry.
Historic drilling at Bencubbin North included five lines of shallow (<40m) RAB holes principally targeting
gold mineralisation.
None of these historical holes tested the peak nickel anomalism, and none were assayed for Ni, leaving the
entire 18km surface multi-element geochemical anomaly effectively untested for nickel deposits.
Aircore drilling approximately 15km to the southeast of the main Bencubbin North Ni-Cu target intersected
extensions of the Bencubbin ultramafic package including(Refer ASX announcement on 30 November 2018)1:
•
•
12m @ 0.13% Ni from 48m in hole MERA 3; and
16m @ 0.12% Ni from 47m in hole MERA 1 ~ 600m to the northeast of MERA 3.
Importantly, none of the holes drilled at Bencubbin North were analysed for Platinum Group Elements (PGEs)
which are considered an important indicator of nickel sulphide fertility.
Given the lack of effective historic exploration, as well as the ability to apply improved (and more detailed)
geochemical sampling, and electromagnetic (EM) geophysics, Cygnus considers the Bencubbin Project a high
priority target for the discovery of a new nickel system.
Base Metals Potential
—
Review of the nickel potential at Bencubbin North also identified a series of gossans known as the Mandiga
prospect. These gossans are the surface expression of a laterally extensive sulphide-bearing ironstone unit
within the Bencubbin greenstone, west of the main Bencubbin North nickel anomaly.
The Mandiga gossans outcrop discontinuously over a strike length of more than 3km with a true thickness of up
to 15m (Figure 10).
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Figure 9: E70/5169 (Bencubbin North); gridded historical nickel, copper and gold surface geochemistry.
Figure 10: E70/5169 (Bencubbin North); Mandiga Gossan VMS Target Zone Lead points over nickel grid contours
Mandiga was explored in the late 1970s including auger sampling which identified a Pb anomaly spatially
coincident with the gossan. Historical drilling at Mandiga included percussion drilling and seven diamond core
holes, with best results of(refer ASX announcement on 30 November 2018)1:
•
•
•
18m @ 0.14% Ni from 32m in Hole DMA4;
2m @ 0.63% Pb from 52m in Hole DMA2; and
2m @ 1.7% Zn from 176m in Hole DMA5.
The Pb-in-auger anomalism extends for a further 1.2km south of the known drilling and has not been drill tested
in any subsequent work.
Given the extent and known thickness of the system, encouraging early results, and the lack of modern
exploration techniques applied, Cygnus considers this target highly prospective for base metal mineralisation
and follow up is planned for the first half of 2019.
Annual Report 2018 - Cygnus Gold Limited // 27
Cygnus Gold - Directors’ Report
28
BURRACOPPIN PROJECT (Cygnus 100%)
—
Cygnus’ wholly-owned Burracoppin
tenements are located ~25 km east-
northeast of Merredin with excellent access
via the Great Eastern Highway that crosses
the tenements, and a network of local roads
and local farm tracks. The Edna May gold
mine owned and operated by Ramelius
Resources Ltd (ASX:RMS), is located
approximately 4km from the corner of
Cygnus’ Burracoppin Project (Figure 11).
The Burracoppin Project is underlain by
Archaean granite and greenstone that
were metamorphosed to amphibolite and
granulite facies grade. Outcropping bedrock
is rare with the area being dominated by
an intensely developed regolith rarely more
than 50m thick.
Exploration by previous explorers at
Burracoppin identified a more than 2.5km
long by 0.7km wide gold-in-soil anomaly at
Anomaly 47, which is open to the east where
it is cut by a paleochannel system.
28 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
29
Figure 11: Cygnus’ Burracoppin Project and location of Cygnus’ ground gravity survey. Regional geology from 1:500,000 GSWA mapping.
Annual Report 2018 - Cygnus Gold Limited // 29
Cygnus Gold - Directors’ Report
30
These explorers also recognised the base metals potential of the region with follow-up auger sampling at
Anomaly 47 identifying coherent Au-Pb-Zn anomalies as well as an arsenic (As) “pipe” at Dicks Reward defined
by a >100ppm As anomaly more than 2.6km long and up to 1.5km wide which is open to the east.
The geochemical signature of mineralisation at Anomaly 47 is similar to known Volcanogenic Massive Sulphide
(VMS) deposits globally, with the Au-Ag-Zn-Pb rich mineralisation located to date potentially being the distal
signature of a more proximal Cu-Zn rich system, which is the target of the Company’s planned follow up.
Cygnus 2018 Ground Gravity Survey
—
During 2018 Cygnus completed a detailed ground gravity survey targeting relatively dense massive sulfides
potentially associated with VMS mineralisation. A total of 4,142 stations were acquired on three different station
spacings (50m, 100m and 200m) over the broader Anomaly 47 target horizon.
Thirty-one discrete positive gravity anomalies were identified from this survey with 14 considered high-priority
targets for follow-up (Figure 12).
Figure 12: Image of Cygnus Gold’s ground gravity survey (residual of the Bouguer gravity) with compilation of historical exploration at
Burracoppin² and boundary of airborne electromagnetic (AEM) survey.
30 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
Cygnus 2018 Airborne EM Survey
—
31
Cygnus subsequently collected a 277 line-km Xcite™ Airborne Electromagnetic (AEM) survey to screen the
prospective gravity anomalies as well as to try and identify additional conductive targets which may represent
accumulations of massive sulfides (refer ASX Announcement 19 September 2018)1.
The AEM survey identified several discrete bedrock conductors, in addition to numerous shallow conductors
which likely correspond to conductive zones within transported cover (Figure 13).
Figure 13:
TOP LEFT: AEM survey location with respect to the Anomaly 47 and Dicks Reward prospects, previous drilling and discrete AEM conductors.
BOTTOM LEFT: Gridded Tau [decay constant] derived from dB/dT, long wavelength removed.
RIGHT: Inset over Anomaly 47 showing ground gravity anomalies coincident with AEM conductors and historical drill collars
The nearest historical drilling (shallow RC drilling assayed only for gold) is 200m east of the main conductive
target zone, with the only one deeper RC hole drilled a further 400m to the east. This deeper RC drilling
intersected narrow higher-grade zones within broader mineralised intervals including2:
• A47RC003 with 4m @ 0.69g/t Au, 14.7g/t Ag, 0.52% Pb, 0.75% Zn from 27m
Drill testing of targets identified from the gravity and EM surveys is planned to commence in 2019 once
approvals are received and is being co-funded by a grant from the WA Government.
Annual Report 2018 - Cygnus Gold Limited // 31
Cygnus Gold - Directors’ Report
32
Bonnie Rock
—
In July 2018 the Company applied for a new tenement over the Bonnie Rock Prospect, approximately 50km
northwest of Anomaly 47 (Figure 11).
Bonnie Rock comprises a series of pods of massive magnetite, franklinite (Zn-Fe oxide) and garnet schists with
Zn, Pb, Ag mineralisation hosted in felsic granulites considered the metamorphic equivalent of altered
felsic rocks.
The similarities of Bonnie Rock with the Au-Ag-Zn-Pb mineralisation at Anomaly 47 suggest this is a regionally
extensive style of mineralisation, with the greenstone sequences at Burracoppin and Bonnie Rock being
underexplored for both VMS and gold mineralisation.
Exploration at Bonnie Rock will commence after tenement grant, in early 2019.
Gold Potential
—
In addition to the potential for VMS style mineralisation identified at Anomaly 47 and Bonnie Rock, the
Burracoppin Project tenements cover Archaean greenstones including interpreted extensions of the greenstone
package hosting the nearby Edna May gold mine ~20km southeast of Anomaly 47.
Given the limited historical exploration, and extensive post mineral cover across the Burracoppin Project the
package is considered highly prospective for Archaean “orogenic” lode gold style gold mineralisation and
Cygnus will continue to target and test for this deposit style during 2019.
Cygnus Gold - Directors’ Report
Exploration at Bonnie Rock will commence after
33
tenement grant, early 2019.
Annual Report 2018 - Cygnus Gold Limited // 33
Cygnus Gold - Directors’ Report
34
GOLD ROAD EARN-IN AND JV PROJECTS
(Cygnus diluting to 25%)
—
In October 2017, the Company entered
into earn-in agreements with ASX-listed
developer Gold Road Resources Ltd
(ASX:GOR) over Cygnus’ Lake Grace and
Wadderin Projects covering an area in
excess of 3,400km2.
These agreements provide Gold Road
with the opportunity to earn up to a 75%
interest in these projects by spending
$3.7m over four years (for details of these
agreements refer GOR ASX announcement
10 October 2017).
In early 2018 the Company announced a
new joint venture (JV) with Gold Road over
the Yandina Project, and in late 2018 the
Company applied for additional tenements
which are intended to form the
Hyden JV (Figure 14).
In total, the four areas under agreement with
Gold Road cover in excess of 6,000km2
with Cygnus initially managing the
exploration programs.
34 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
35
Figure 14: Cygnus Gold – Gold Road Projects earn-in and JV Projects over regional gravity image (residual Bouguer).
Annual Report 2018 - Cygnus Gold Limited // 35
Cygnus Gold - Directors’ Report
36
Lake Grace
Earn-in Project
—
On the Lake Grace Earn-in Project,
the Company completed a detailed
interpretation of the geology and regolith
and regional surface sampling. Detailed
follow up of these new areas including
aircore drilling is planned for early 2019
and will include testing of the previously
reported targets at Panhandle and HR3.
The Panhandle prospect is a >500ppb
gold-in-soil anomaly that the Company
believes was only partly drill tested in the
early 1990s as drilling appears to have
missed the core of the gold system.
At Panhandle, the Cygnus gravity data
defines a dense and structurally complex
unit sitting proximal to a jog in the regionally
extensive Yandina shear zone (Figure 15).
This unit is interpreted as a prospective
mafic-ultramafic sequence within the Lake
Grace greenstone.
36 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
37
Figure 15: Panhandle Prospect.
Left is historical residual bouguer gravity anomaly data [0-2k] from the GSWA.
Right image is the Cygnus’ semi-detailed bouguer gravity data, imaged using a histogram equalized stretch (NE illumination). The dense
target is circled by the red dashes.
The HR3 target is the extension of a ~6km-long and up to 1.5km-wide gold-in-soil anomaly ranging from 5 to
128ppb Au. At HR3, the Company’s ground gravity data defines a distinct fold nose coincident with a narrow
gold anomaly and a broader multi-element (As-Sb-Bi-Te-Mo-Pb) anomaly considered to be ‘pathfinder’ elements
for gold mineralisation in the region (Figure 16). There has been no historical drilling at HR3.
Figure 16: Surface sampling over HR3 target (Lake Grace Project) overlain on Cygnus bouguer gravity image.
Left frame Au (ppb);
Right frame As (ppm). Gold anomaly outlined in red and multi-element (As-Sb-Bi-Te-Mo-Pb) pathfinder anomaly in yellow.
Annual Report 2018 - Cygnus Gold Limited // 37
Cygnus Gold - Directors’ Report
38
Wadderin Earn-in
Project
—
At the Wadderin Earn-in Project, the
Company has completed detailed
interpretation of the geology and regolith
which has defined several high-priority gold
prospects slated for follow-up ground work.
These targets include major bends on the
regional Yandina shear and extensions to the
Hardies prospect where previous explorers
intersected shallow gold with several
intervals of more than 2 g/t2.
Follow-up aircore drill testing of targets at
Wadderin is planned for early 2019, subject
to receipt of statutory approvals.
38 // Cygnus Gold Limited - Annual Report 2018
Yandina Joint Venture
(Cygnus 25%)
—
The Yandina JV with Gold Road comprises
four tenements covering an area of
approximately 1,727km2 over the prospective
Yandina Shear which is known to host
gold mineralisation elsewhere in the
Southwest Terrane.
The Yandina tenements are now granted
and field work by Cygnus Gold comprised
regional surface sampling and a detailed
airborne magnetics survey over a section of
the shear zone which only had regional data.
The Company also completed a detailed
geological interpretation of the Yandina
project area which has identified targets
for follow up field checking and surface
sampling planned for early 2019.
Cygnus Gold - Directors’ Report
39
Annual Report 2018 - Cygnus Gold Limited // 39
Cygnus Gold - Corporate
40
Corporate
—
Admission to the
Australian Securities Exchange
—
Cygnus was successfully admitted to
the Official List with official quotation
commencing on 15 January 2018. Cygnus
raised $6,000,000 (before costs).
After listing the Company had 60,683,341
shares on issue.
Dividends paid or recommended
—
The directors do not recommend the
payment of a dividend and no amount has
been paid or declared by way of a dividend
to the date of this report.
Subsequent Events
—
There are no matters or circumstances
that have arisen since the end of the year
that have significantly affected or may
significantly affect either:
• the Company’s operations in future
financial years
• the results of those operations in future
financial years; or
• the Company’s state of affairs in future
financial years.
40 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Corporate
Cygnus’ technical team has considerable knowledge
41
and experience in targeting and evaluating gold
mineralised systems world-wide.
Annual Report 2018 - Cygnus Gold Limited // 41
Cygnus Gold - Directors’ Report
42
Likely Developments and Expected Results
—
Significant changes in the state of affairs
—
The Company is committed to:
There have been no changes in the state of affairs
•
systematically explore the Company’s key asset
at Stanley;
•
advance exploration for gold on the other
Cygnus Exploration Licences at Bencubbin and
Burracoppin;
• manage the Wadderin, Lake Grace and Yandina
Projects with Gold Road Projects in accordance
with the relevant earn-in and joint venture
agreements;
•
continue to negotiate further access with
private landholders in relation to areas of
interest identified by the above activities; and
•
implement a growth strategy to seek out further
exploration, acquisition and joint venture
opportunities in Australia.
Environmental issues
—
The Company is aware of its environmental obligations
with regards to its exploration activities and ensures
that it complies with all regulations when carrying out
any exploration work. The directors have considered
the National Greenhouse and Energy Reporting Act
2007 (‘the NGER Act’) and at the current stage of de-
velopment and based on the locations of the Compa-
ny’s operations, the directors have determined that the
NGER Act will have no effect on the Company for the
current or subsequent financial year. The directors will
reassess this position as and when the need arises.
No environmental breaches have occurred or have
been notified by any Government agencies during the
year ended 31 December 2018.
of the Company other than those outlined in the
Review of Operations.
Corporate Governance
—
The directors of Cygnus Gold Limited believe
that effective corporate governance improves
company performance, enhances corporate social
responsibility and benefits all stakeholders. Changes
and improvements are made in a substance over
form manner, which appropriately reflect the
changing circumstances of the company as it grows
and evolves. Accordingly, the Board has established
a number of practices and policies to ensure that
these intentions are met and that all shareholders
are fully informed about the affairs of the Company.
Cygnus reviews all of its corporate governance
practices and policies on an annual basis to ensure
they are appropriate for the Company’s current
stage of development. This year, the review was
made against the new ASX Corporate Governance
Council’s Principles and Recommendations (third
edition) which became effective for financial years
beginning on or after 1 July 2014.
The Board has reviewed and approved its Corporate
Governance Statement on 28 March 2019, and this is
available on the Company’s website at
www.cygnusgold.com/corporate-governancedetail
The Company has a corporate governance section
on the website which includes details on the
Company’s governance arrangements and copies of
relevant policies and charters.
42 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
REMUNERATION REPORT (AUDITED)
—
43
This remuneration report for the year ended
Company, directly or indirectly including any
31 December 2018 outlines the remuneration
director (whether executive or otherwise) of
arrangements of the Company in accordance
the parent.
with the requirements of the Corporations
Act 2001(Cth) as amended (the Act) and its
The table below outlines the KMP of the Company
regulations. This information has been audited as
during the financial year ended 31 December 2018.
required by section 308(3C) of the Act.
Unless otherwise indicated, the individuals were
KMP for the entire financial year.
The remuneration report details the remuneration
arrangements for Key Management Personnel
For the purposes of this report, the term
(KMP) who are defined as those persons having
“executive” includes the executive directors and
authority and responsibility for planning, directing
senior executives of the Company.
and controlling the major activities of the
Executive director
James Merrillees
Managing Director (appointed 17 November 2017)
NON EXECUTIVE DIRECTORS
Michael Bohm
Non-executive Chairman (appointed 30 September 2016)
Simon Jackson
Non-executive Director (appointed 17 November 2017)
Oliver Kreuzer
Non-executive Director (appointed 21 April 2016)
Amanda Buckingham
Non-executive Director (appointed 21 April 2016)
Senior executive
Michael Naylor
Company Secretary (appointed 4 October 2016)
There were no other changes to KMP after reporting date and before the date the financial report was
authorised for issue.
Annual Report 2018 - Cygnus Gold Limited // 43
Cygnus Gold - Directors’ Report
44
Remuneration governance
—
Due to the current size of the Company, it is more efficient and effective for the functions otherwise undertaken by
a remuneration committee to be performed by the Board. All directors are therefore responsible for determining
and reviewing compensation arrangements for key management personnel, including periodically assessing
the appropriateness of the nature and amount of remuneration by reference to relevant market conditions and
prevailing practices.
The Board obtains professional advice where necessary to ensure that the Company attracts and retains talented
and motivated directors, executives and employees who can enhance Company performance through their
contributions and leadership.
Remuneration framework
—
The Board recognises that the Company’s
The remuneration for executives has three
performance and ultimate success in project
components:
delivery depends very much on its ability to attract
and retain highly skilled, qualified and motivated
people in an increasingly competitive remuneration
market. At the same time, remuneration practices
must be transparent to shareholders and be fair and
•
Fixed remuneration, inclusive of superannuation
and allowances;
•
Short Term Incentives (“STI”) under a
performance-based cash bonus incentive
competitive taking into account the nature and size
plan; and
of the organisation and its current stage of activities.
The approach to remuneration has been structured
with the following objectives:
•
Fairness: provide a fair level of reward to
all employees;
•
Transparency: establish transparent links
between reward and performance;
•
Alignment: promote mutually beneficial
outcomes by aligning employee, and
shareholder interests; and
• Culture: drive leadership performance and
behaviours that promote safety, diversity and
employee engagement.
•
Long Term Incentives (“LTI”) through
participation in the Company’s approved equity
incentive plan.
These three components comprise each executive’s
total annual remuneration.
To link executive remuneration with the Company’s
performance, the Company’s policy is to endeavour
to provide a portion of each executive’s total
remuneration as “at risk”.
These three components comprise each executive’s
total annual remuneration.
To link executive remuneration with the Company’s
performance, the Company’s policy is to endeavour
to provide an appropriate portion of each
executive’s total remuneration as “at risk”.
44 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
2018 mix of remuneration for Directors and KMP percentage of total remuneration
—
45
OVERVIEW OF COMPANY PERFORMANCE
—
In considering the Company’s performance and benefits for shareholder wealth, the Board has regard to the
following indices in respect of the current and the previous two financial years:
Executive
Revenue
Net loss after tax
Share price 31 December
2016
1,285
81,504
N/A
2017
3,262
784,721
N/A
2018
198,317
638,119
$0.065
Currently, there is a portion of remuneration of key management personnel that is linked to performance via
share based awards and short term incentives which is linked to individual performance, which are tied to total
shareholder return as measured against the performance of a group of peer exploration companies. The rationale
for this approach is that the Company is in the exploration phase, and it is currently not appropriate to link
remuneration to factors such as profitability.
Annual Report 2018 - Cygnus Gold Limited // 45
Cygnus Gold - Directors’ Report
46
Executive director remuneration
—
Fixed Remuneration
Executives receive a fixed base cash salary and other associated benefits. Executives also receive a superannuation
guarantee contribution required by Australian legislation which was 9.5% at 31 December 2018. No executives
receive any other retirement benefits.
Fixed remuneration of executives will be set by the Board each year and is based on market relativity and individual
performance. In setting fixed remuneration for executives, individual performance, skills, expertise and experience
are also taken into account to determine where the executive’s remuneration should sit within the market range.
Where appropriate, external remuneration consultants will be engaged to assist the Board to ensure that fixed
remuneration is set to be consistent with market practices for similar roles.
Short Term Incentives
The Managing Director was eligible to earn a short-term cash bonused upon achievement of significant
performance-based outcomes aligned with the Company’s strategic objectives at that time. These
performance-based outcomes are considered to be an appropriate link between executive remuneration and the
potential for creation of shareholder wealth. Short term incentives were accrued during the year.
Performance was measured for the period 15 January 2018 to 15 January 2019.
The table below sets out the STI amounts earned and the performance hurdles met during the year
Executive
STI amount Performance Hurdle
Mr James Merrillees
$30,797 Measured on three set key performance indicators at target
plus stretch levels of significant performance. The following
performance outcomes were achieved in FY18, resulting in Mr
Merrillees being entitled to an STI payment:
•
Targets generated by defining new quality follow up targets
on all tenement areas held and stretch to drill holes planned
at all follow up areas.
•
Targets tested via Reverse Circulation drilling or Diamond
drilling over two tenements - stretch to four tenements.
•
Sustainability target by implementing Health, Safety,
Environment and Community Policy approved by Board.
Long Term Incentives
The objective of the LTI plan is to reward executives and directors in a manner which aligns this element of
remuneration with the creation of shareholder wealth. As such LTIs are made to executives and directors who are
able to influence the generation of shareholder wealth and thus have an impact on the Company’s performance.
700,000 performance rights were granted to the Managing Director during the year with a one-year and two-year
measurement period.
46 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
Non-executive director remuneration
—
47
Non-executive directors’ fees are paid within an aggregate limit which is approved by the shareholders from
time to time. Retirement payments, if any, are determined in accordance with the rules set out in the Company’s
Constitution and the Corporations Act at the time of the director’s retirement or termination. Non-executive
directors’ remuneration may include an incentive portion consisting of bonuses and/or performance rights/
options, as considered appropriate by the Board, which is subject to shareholder approval in accordance with
the ASX Listing Rules.
The aggregate remuneration, and the manner in which it is apportioned amongst non-executive directors, is
reviewed annually. The Board considers the amount of director fees being paid by comparable companies with
similar responsibilities and levels of experience of the non-executive directors when undertaking the annual
review process.
The current maximum amount of non-executive directors’ fees payable is fixed at $300,000 in total, for each
12-month period commencing 1 January each year, until varied by ordinary resolution of shareholders.
Non-executive directors are not entitled to any termination payments.
There were 800,000 performance rights granted to non-executive irectors during the year. Details to these
rights are provided further along in the Directors’ Report.
No share options were issued.
The Company prohibits directors or executives from entering into arrangements to protect the value of any
Cygnus Gold shares, options or performance rights that the director or executive has become entitled to as part
of his/her remuneration package. This includes entering into contracts to hedge their exposure.
The following table sets out the specifics to the number of performance rights granted to each non-executive
director during the year:
Non-executive Directors
Performance Rights
Mr Michael Bohm
Mr Simon Jackson
Dr Oliver Kreuzer
Dr Amanda Buckingham
Total
200,000
200,000
200,000
200,000
800.000
Use of remuneration consultants
—
During the year ended 31 December 2018 the Board did not engage the services of remuneration consultants.
Annual Report 2018 - Cygnus Gold Limited // 47
Cygnus Gold - Directors’ Report
48
The remuneration of the Directors
—
The directors and KMP of Cygnus Gold Limited are set out in the following tables:
Short term employee benefits
s
e
e
F
t
n
a
t
l
u
s
n
o
C
s
e
e
F
/
y
r
a
l
a
S
l
a
u
n
n
A
e
v
a
e
L
s
u
n
o
B
t
n
e
m
y
o
p
m
E
l
t
s
o
P
n
o
i
t
a
u
n
n
a
r
e
p
u
S
-
y
a
p
d
e
s
a
b
e
r
a
h
S
)
h
s
a
C
-
n
o
n
(
s
t
n
e
m
e
c
n
a
m
r
o
f
r
e
P
f
o
%
d
e
s
a
b
n
o
i
t
a
r
e
n
u
m
e
r
l
a
t
o
T
Non-executive Directors
Mr Michael Bohm
Dr Amanda Buckingham
Dr Oliver Kreuzer
Mr Simon Jackson
Alan Cleland
(Resigned 17 November 2017)
Executives
James Merrillees
Michael Naylor
2018
50,000
-
2017
4,167
69,750
2018
40,000
30,563
2017
3,333
59,116
2018
40,000
28,850
2017
3,333
102,000
2018
40,000
2017
3,333
2018
2017
-
-
-
-
-
5,250
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,750
346
55,096
396
-
74,313
3,800
346
74,709
317
-
62,766
3,800
346
72,996
317
-
105,650
3,800
346
44,146
317
-
-
-
-
-
3,650
-
5,250
2018
228,529
-
17,308
28,1251
26,027
1,212
301,200
2017
129,714
-
9,786
18,265
14,998
2018
2017
-
-
90,0002
60,0002
-
-
-
-
-
-
-
-
-
172,763
90,000
60,000
Total Remuneration
2018
398,529
149,413
17,308
28,125
42,177
2,596
638,147
2017
143,880
296,116
9,786
18,265
16,345
-
484,392
1 Bonus was accrued at 31 December 2018 and excludes superannuation which is included in
post-employment amount.
2 Amount owing at 31 December 2018, $7,500 and at 31 December 2017, $5,000.
0.6
-
0.5
-
0.5
-
0.8
-
-
9.7
11.6
-
-
4.8
4.1
48 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
Shares Issues on Exercise of Options
—
There were no shares issued on exercise of options or performance rights.
49
GRANT OF LTI AND VALUE OF PERFORMANCE RIGHTS AWARDED, EXERCISED AND LAPSED DURING THE YEAR
—
1,500,000 performance rights to the value of $5,415 was granted as part of remuneration during the year ended
31 December 2018.
There were no Performance Rights issued for the year ended 31 December 2017.
Shares held by directors and key management personnel including their related parties, is
set out below:
Balance at
start of the
year
Balance at
date of
appointment
Received during
the year on
exercise of
options
Other
acquisition/
disposal of
shares during
the year
Balance
at date of
resignation
Balance at
end of
the year
Non-executive Directors
Mr Michael Bohm
Mr Simon Jackson
Dr Oliver Kreuzer
3,000,001
133,334
1,833,334
Dr Amanda Buckingham
2,333,334
Executives
Mr James Merrillees
100,000
Mr Michael Naylor
Total
1,300,000
8,700,003
-
-
-
-
-
-
-
-
-
-
-
-
-
-
170,000
170,000
50,000
-
50,000
185,000
625,000
-
-
-
-
-
-
-
3,170,001
303,334
1,833,334
2,333,334
150,000
1,485,000
8,700,003
Annual Report 2018 - Cygnus Gold Limited // 49
Cygnus Gold - Directors’ Report
50
PERFORMANCE RIGHTS HELD BY DIRECTORS AND KEY MANAGEMENT PERSONNEL
—
During the year shareholders approved the board to grant performance rights shares to each of the directors as
incentive remuneration under the performance rights plan.
f
o
t
r
a
t
s
t
a
e
c
n
a
l
a
B
r
a
e
y
e
h
t
-
u
m
e
r
s
a
d
e
t
n
a
r
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e
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u
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V
Non-executive Directors
Mr Michael Bohm
Mr Simon Jackson
Dr Oliver Kreuzer
Dr Amanda Buckingham
Executives
Mr James Merrillees
Mr Michael Naylor
Total
-
-
-
-
-
-
-
200,000
200,000
200,000
200,000
700,000
-
1,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
200,000
200,000
200,000
200,000
700,000
-
1,500,000
-
-
-
-
-
-
-
50 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
PERFORMANCE RIGHTS HELD BY DIRECTORS AND KEY MANAGEMENT PERSONNEL
—
51
Each performance rights entitles the holder to one ordinary share in Cygnus upon satisfaction of the
performance conditions linked to the rights during the relevant measurement period. The rights do not carry
any other privileges.
The following performance conditions are applicable to the rights awarded in the year:
Two measurement periods:
(i)
Tranche 1 is the period from 15/1/18 to 15/1/2019.
(ii) Tranche 2 is the period 15/1/18 to 15/1/2020.
The vesting conditions for the Performance Rights are as follows:
(iii) Employment at the end of the relevant measurement period;
(iv) No fatalities on the Company’s mining tenements; and
(v) Performance of the Company against a peer group based on Total Shareholder Return (TSR)
Cygnus’ TSR compared to the peer group will determine the proportion of Performance Rights that will vest
(subject to the other vesting conditions being met), as set out below:
Relative TSR over the Measurement Period
Proportion of Performance Rights vested
Below the 50th percentile
At the 50th percentile
0%
50%
Between the 50th and the 75th percentile
Pro-rata between 50% and 100%
Above the 75th percentile
100%
Annual Report 2018 - Cygnus Gold Limited // 51
Cygnus Gold - ASX Listed companies
52
The Company’s relative performance was
compared to the following peer group:
—
ASX – Listed companies
—
Alloy Resources Limited
—
Alto Metals Limited
—
Antipa Minerals Limited
—
Arrow Minerals Limited
—
Ausgold Limited
—
Barra Resources Limited
—
Black Cat Syndicate Limited
—
Duketon Mining Limited
—
Emerson Resources Limited
—
Explaurum Limited
—
Golden Mile Resources Limited
—
Great Boulder Resources Limited
—
Great Western Exploration Limited
—
Intermin Resources Limited
—
Musgrave Minerals Limited
—
Riversgold Limited
—
Syndicated Metals Limited
—
Thundelarra Limited
52 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
Subject to the vesting criteria being met, directors will be entitled to exercise the number of performance
Rights vesting and be issued with a corresponding number of ordinary shares in Cygnus Gold Limited.
53
g
n
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)
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$
(
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.
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y
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i
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e
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i
a
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n
a
n
F
i
Mr Bohm
Mr Jackson
Dr Kreuzer
Dr Buckingham
James
Merrillees
Total
2018
100,0002
25 May 18 NA
15 Jan 19
0.19 Nil
2018
100,000
25 May 18 NA 15 Jan 20
0.19
Nil
2018
100,0002
25 May 18 NA
15 Jan 19
0.19 Nil
2018
100,000
25 May 18 NA 15 Jan 20
0.19
Nil
2018
100,0002
25 May 18 NA
15 Jan 19
0.19
Nil
2018
100,000
25 May 18 NA 15 Jan 20
0.19
Nil
2018
100,0002
25 May 18 NA
15 Jan 19
0.19 Nil
2018
100,000
25 May 18 NA 15 Jan 20
0.19
Nil
2018
350,0002
25 May 18 NA
15 Jan 19
0.19 Nil
2018
350,000
25 May 18 NA 15 Jan 20
0.19
Nil
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
722
-
722
-
722
-
722
-
-
346
-
346
-
346
-
346
-
2,527
5,415
1,212
2,596
1. The total value of the first tranche of performance rights has been determined to be nil given that all rights expired for that tranche
post year-end, thus resulting in no benefit to the holder. For tranche 2, the total value has been determined using management’s
estimates and judgments, applying weighted probabilities to determine the most likely outcome of the vesting criteria that will be met as
at 15 January 2020 and multiplying the quantity of rights expected to vest by the fair value at award date. These estimates are made
based on how the company has historically performed relative to the peer group and future considerations. The total value attributable
to each key management personnel is first determined and then expensed evenly over the vesting period (herein the period between the
Award date and Expiry date) and thus only a portion is recognised in the current period.
2. 750,000 performance rights from tranche 1 were not achieved and were cancelled subsequent to 31 December 2018. No dollar value is
attributable to this tranche given that no rights vested.
There were no performance rights on issue as at 31 December 2017.
Annual Report 2018 - Cygnus Gold Limited // 53
Cygnus Gold - Directors’ Report
54
EMPLOYMENT CONTRACTS OF DIRECTORS AND SENIOR EXECUTIVES
—
On 15 March 2018, the Company entered into a revised agreement with Mr Merrillees to recognise his promotion
to Managing Director under annual based remuneration of, $246,375 (inclusive of superannuation) applied from
December 2017.
As part of the new agreement a STI of 15% of total fixed remuneration (Base Salary plus Superannuation) was put
in place should several key performance indicators be met, including exploration targets generated, exploration
targets tested and Health, Safety and Environmental components. Total amount accrued at year end was 12.5%
total $30,797.
In addition, the agreement included long term incentives of 700,000 performance rights which was approved
by shareholders’ during the year.
Mr Merrillees is required to give the Company six weeks’ notice to terminate the agreement and the Company is
required to give Mr Merrillees three months’ notice to terminate the contract or payment in lieu.
The Company entered into an agreement with Blue Leaf Corporate Pty Ltd, a company associated with
Mr Naylor, which commenced on 15 January 2018 for the provision of company secretarial and financial
management services. Mr Naylor is required to give the Company 90 days’ notice to terminate the contract and
the Company is required to give Mr Naylor 90 days’ notice to terminate the contract or payment in lieu.
LOANS TO KEY MANAGEMENT PERSONNEL
—
There were no loans to key management personnel of the Company, including their personally related parties,
as at 31 December 2018 or 31 December 2017.
OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
—
There were no other transactions with key management personnel.
VOTING AND COMMENTS MADE AT THE COMPANY’S LAST ANNUAL GENERAL MEETING
—
Cygnus Gold received a 100% “yes” votes on its Remuneration Report for the year ended 31 December 2017. The
Company received no specific feedback on its Remuneration Report at the Annual General Meeting.
END OF REMUNERATION REPORT
54 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
Meetings of directors
—
55
During the financial year, six meetings of directors were held. Attendances by each director during the year
were as follows:
Director’s names
Number attended
Number eligible to attend
Michael Bohm
James Merrillees
Simon Jackson
Dr Oliver Kreuzer
Dr Amanda Buckingham
6
6
4
6
6
6
6
6
6
6
Given the size of the Board the Company has decided that there are no efficiencies to be gained from forming
separate committees.
SHARE OPTIONS AND PERFORMANCE RIGHTS
—
There are no share options on issue and there was 750,000 performance rights on issue at the date of this
report.
INDEMNIFYING OFFICERS
—
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001, every officer
of the Company shall be indemnified out of the property of the Company against any liability incurred by him
in his capacity as officer or agent of the Company or any related corporation in respect of any act or omission
whatsoever and howsoever occurring or in defending any proceedings, whether civil or criminal. The terms of
the policy prevent disclosure of the amount of the premium payable and the level of indemnification under the
insurance contract.
INDEMNIFYING OF AUDITORS
—
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001, every officer
To the extent permitted by law, the Company has agreed to indemnify its auditors, Grant Thornton, as part
of the terms of its audit engagement agreement, against claims by third parties arising from the audit (for an
unspecified amount). No payments have been made to indemnify Grant Thornton to the date of this report.
Annual Report 2018 - Cygnus Gold Limited // 55
Cygnus Gold - Directors’ Report
56
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 these proceedings.
The Company was not a party to any such proceedings during the year.
Non-audit services
—
During the year, related practices to Grant Thornton Audit Pty Ltd, the Company’s auditors, performed certain
other services in addition to their statutory audit duties. The Board has considered the non-audit services
provided during the year by the auditor and is satisfied that the provision of those non-audit services during the
year is compatible with, and did not compromise, the auditor independence requirements of the Corporations
Act 2001 for the following reasons:
•
all non-audit services were subject to the corporate governance procedures adopted by the Company
and have been reviewed by the Board of Directors to ensure they do not impact upon the impartiality and
objectivity of the auditor
•
the non-audit services do not undermine the general principles relating to auditor independence as set out
in APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the
auditor’s own work, acting in a management or decision-making capacity for the Company, acting as an
advocate for the Company or jointly sharing risks and rewards
The total remuneration for audit and non-audit services provided during the prior and current financial years is
set out in note 9 of the financial statements.
56 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ Report
Auditor’s independence declaration
—
57
The lead auditor’s independence declaration for the year ended 31 December 2018 has been received and is
attached to this Directors’ Report.
This report is made in accordance with a resolution of the directors.
James Merrillees
Managing Director
Dated in Perth this 28th day of March 2019.
Notes
1.
Refer ASX announcement on the said date for full details of these exploration results. Cygnus is not aware of any new information or data
that materially affects the information included in the said announcement.
2.
Information on historical results from the Stanley Project, including JORC Code Table 1 information, is contained in the Independent
Technical Assessment Report within Cygnus’ Prospectus dated 22 November 2017. Cygnus is not aware of any new information or data that
materially affects the information included in the Prospectus.
Competent Persons Statement
The information in this announcement that relates to Exploration Results is based on information and supporting documentation compiled by Mr
James Merrillees, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy. Mr Merrillees is Managing Director and
a full-time employee of Cygnus Gold and holds shares in the Company.
Mr Merrillees has sufficient experience relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify
as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”. Mr Merrillees consents to the inclusion in this announcement of the matters based on this information in the form and context in which it
appears.
Forward Looking Statement
This report may contain certain forward-looking statements and projections regarding estimated, resources and reserves; planned production
and operating costs profiles; planned capital requirements; and planned strategies and corporate objectives. Such forward looking statements/
projections are estimates for discussion purposes only and should not be relied upon. They are not guarantees of future performance and involve
known and unknown risks, uncertainties and other factors many of which are beyond the control of Cygnus Gold Limited. The forward-looking
statements/projections are inherently uncertain and may therefore differ materially from results ultimately achieved.
Cygnus Gold Limited does not make any representations and provides no warranties concerning the accuracy of the projections, and disclaims
any obligation to update or revise any forward-looking statements/projects based on new information, future events or otherwise except to the
extent required by applicable laws. While the information contained in this report has been prepared in good faith, neither Cygnus Gold or any of its
directors, officers, agents, employees or advisors give any representation or warranty, express or implied, as to the fairness, accuracy, completeness
or correctness of the information, opinions and conclusions contained in this presentation. Accordingly, to the maximum extent permitted by law,
none of Cygnus Gold Limited, its directors, employees or agents, advisers, nor any other person accepts any liability whether direct or indirect,
express or limited, contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the information or for any of the opinions
contained in this presentation or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this presentation.
Annual Report 2018 - Cygnus Gold Limited // 57
Cygnus Gold - Auditor’s independence declaration
58
Grant Thornton Audit Pty Ltd
Central Park
Level 43
152 - 158 St Georges Terrace
PO Box 7757
Perth WA 6000
T +61 8 9480 2000
Auditor’s Independence Declaration
To the Directors of Cygnus Gold Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for
the audit of Cygnus Gold Limited for the year ended 31 December 2018, I declare that, to the best of my
knowledge and belief, there have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation
to the audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
CHARTERED ACCOUNTANTS
P W Warr
Partner – Audit & Assurance
Perth, 28 March 2019
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton
Australia Limited ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant
Thornton member firms provide assurance, tax and advisory services to their clients and/or refers
to one or more member firms, as the context requires. Grant Thornton Australia Limited is a
member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a
worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member
firms are not agents of, and do not obligate one another and are not liable for one another’s acts or
omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant
Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities.
Liability limited by a scheme approved under Professional Standards Legislation.
www.grantthornton.com.au
58 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Auditor’s independence declaration
Consolidated a significant tenement holding for gold
59
and base metal exploration in Western Australia
Annual Report 2018 - Cygnus Gold Limited // 59
Cygnus Gold
60
CYGNUS DIRECTORS BELIEVE THAT EFFECTIVE CORPORATE
GOVERNANCE IMPROVES COMPANY PERFORMANCE,
ENHANCES CORPORATE SOCIAL RESPONSIBILITY AND
BENEFITS ALL STAKEHOLDERS.
60 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Statement of Profit or Loss and Other Comprehensive Income
Statement of Profit or Loss and Other Comprehensive Income
—
For the year ended 31 December 2018
61
Revenues
Depreciation
Employee benefits expense
Exploration expense
Other expense
Share based payments
Results from operating activities
Finance income
Loss before income tax
Income tax expense
Loss after income tax for the year
Other comprehensive loss
Notes
2018
$
131,745
2017
$
-
14
(26,009)
(2,814)
(309,017)
(207,179)
(103,484)
(230,625)
16
(395,330)
(347,365)
(2,596)
-
(704,691)
(787,983)
66,572
3,262
(638,119)
(784,721)
15
-
-
(638,119)
(784,721)
-
-
Total other comprehensive loss for the year, net of tax
(638,119)
(784,721)
Loss per share attributable to equity holders of the Company:
Basic and diluted loss per share (cents per share)
7
(1.10)
(2.69)
This statement above should be read in conjunction with the Notes to the Financial Statements.
Annual Report 2018 - Cygnus Gold Limited // 61
Cygnus Gold - Statement of Financial Position
62
Statement of Financial Position
—
As at 31 December 2018
Notes
3
4
13
14
5
6
6.1
Assets
Current
Cash and cash equivalents
Subscriptions receivable
Trade and other receivables
Current assets
Non-current
Exploration & evaluation
Property, plant and equipment
Non-current assets
Total assets
Liabilities
Current
Trade and other payables
Employee benefit provisions
Current liabilities
Non-current liabilities
Employee benefit provisions
Non Current Liabilities
Total liabilities
Net assets
Equity
Share capital
Other contributed equity
Reserves
Accumulated losses
Total equity
2018
$
3,512,139
-
72,313
3,584,452
2,555,261
102,353
2,657,614
6,242,066
561,451
43,590
605,041
-
10,400
10,400
615,441
5,626,625
7,128,373
-
2,596
(1,504,344)
5,626,625
2017
$
145,517
6,000,000
374,079
6,519,596
565,924
12,111
578,035
7,097,631
479,400
10,714
490,114
-
-
-
490,114
6,607,517
1,473,742
6,000,000
-
(866,225)
6,607,517
This statement above should be read in conjunction with the Notes to the Financial Statements.
62 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Statement of Changes in Equity
Statement of Changes in Equity
—
For the year ended 31 December 2018
63
s
s
o
l
d
e
t
a
l
u
m
u
c
c
$ A
E
V
R
E
S
E
R
T
N
E
M
Y
A
P
i
d
e
t
u
b
r
t
n
o
C
D
E
S
A
B
E
R
A
H
$ S
y
t
i
u
q
E
l
a
t
o
$ T
y
t
i
u
q
e
$
s
e
t
o
N
l
a
t
i
p
a
c
e
r
a
h
S
r
e
h
t
$ O
Balance at 1 January 2017
951,242
Loss for the period
Other comprehensive loss
Total comprehensive loss
Transactions with owners
-
-
-
Issue of share capital
6
522,500
-
-
-
-
-
Subscriptions yet to be issued
-
6,000,000
Balance at 31 December 2017
1,473,742
6,000,000
Balance at 1 January 2018
1,473,742
6,000,000
Loss for the year
Other comprehensive loss
Total comprehensive loss
Transactions with owners
-
-
-
-
-
-
Issue of share capital
6 6,000,000
(6,000,000)
Share issue expense
(345,369)
Subscriptions issued
Share based payment expensed
-
-
Balance at 31 December 2018
7,128,373
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,596
(81,504)
869,738
(784,721)
(784,721)
-
-
(784,721)
(784,721)
-
-
522,500
6,000,000
(866,225)
6,607,517
(866,225)
6,607,517
(638,119)
(638,119)
-
-
(638,119)
(638,119)
-
-
-
-
-
(345,369)
-
2,596
2,596 (1,504,344)
5,626,625
This statement above should be read in conjunction with the Notes to the Financial Statements.
Annual Report 2018 - Cygnus Gold Limited // 63
Cygnus Gold - Statement of Cash Flows
64
Statement of Cash Flows
—
For the year ended 31 December 2018
Operating activities
Payments to suppliers and employees
Payments for exploration expenditure
Interest received
Other income
Notes
2018
$
(413,545)
(103,484)
64,300
131,745
2017
$
(487,015)
(217,982)
3,262
-
Net cash used in operating activities
8
(320,984)
(701,735)
Investing activities
Payments for acquisition of mining tenements
Payments for capitalised exploration expenditure
Purchase of property plant and equipment
EIS Grant-Co-funded Exploration Drilling Program
Funds from joint venture received in advance
Other (investing)
(49,626)
(2,078,860)
(116,251)
139,149
158,563
(20,000)
-
(427,777)
(14,925)
-
-
-
Net cash used in investing activities
(1,967,025)
(442,702)
Financing activities
Proceeds from share issued
6
6,000,000
522,500
Costs of shares issued
Repayment of loan
Net cash provided by financing activities
(345,369)
-
5,654,631
-
(11,149)
511,351
Net change in cash and cash equivalents
3,366,622
(633,087)
Cash and cash equivalents, beginning of period
145,517
778,604
Cash and cash equivalents, end of year
3
3,512,139
145,517
This statement above should be read in conjunction with the Notes to the Financial Statements.
64 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Notes to the Financial Statements
Notes to the Financial Statements
—
65
1 Nature of operations
–
Cygnus Gold Limited’s (“Cygnus” or “the Company”) principal activities include the exploration for gold and base
metals deposits in Western Australia.
2 General information and statement of compliance
–
The general purpose financial statements of the Company have been prepared in accordance with the requirements
of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the
Australian Accounting Standards Board (AASB). Compliance with Australian Accounting Standards results in full
compliance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting
Standards Board (IASB). Cygnus Gold Limited is a for-profit Company for the purpose of preparing the financial
statements.
Cygnus Gold Limited is a Company incorporated and domiciled in Australia. The address of its registered office and
its principal place of business is Level 3, 20 Parkland Road, Osborne Park, Western Australia.
The financial statements were approved and authorised for issue by the Board of Directors on 28 March 2019.
3 Cash and cash equivalents
–
Cash at bank and on hand
Short-term deposits
Cash and cash equivalents
2018
$
2,012,139
1,500,000
3,512,139
2017
$
145,517
-
145,517
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for
varying periods of between one day and three months, depending on the immediate cash requirements of the
Company, and earn interest at the respective short-term deposit rates.
Annual Report 2018 - Cygnus Gold Limited // 65
Cygnus Gold - Notes to the Financial Statements
66
4 Trade and other receivables
–
Trade and other receivables
Prepayments
2018
$
51,273
21,040
72,313
2017
$
35,803
338,276
374,079
All amounts are short-term. The carrying values of trade and other receivables are considered to be a reasonable
approximation of fair value.
5 Trade and other payables
–
Trade and other payables
Gold Road funds received in advance
2018
$
402,888
158,563
561,451
2017
$
479,400
-
479,400
All amounts are short-term. The carrying values of trade and other payables are considered to be a reasonable
approximation of fair value
66 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Notes to the Financial Statements
6 Equity Share capital
–
67
The share capital of Cygnus consists only of fully paid ordinary shares; the shares do not have a par value. All shares
are equally eligible to receive dividends and the repayment of capital and represent one vote at the shareholders’
meeting of Cygnus.
2018
Shares
2017
Shares
2018
$
2017
$
Shares issued and fully paid:
Beginning of the year
30,683,341
25,416,675
1,473,742
951,242
Share issue
30,000,000
5,266,666
6,000,000
522,500
Share consolidation on a ratio of 1 share for 3 held
-
-
(345,369)
-
Share issue costs
60,683,341
30,683,341
7,128,373
1,473,742
Total contributed equity at 31 December
30,683,341
25,416,675
1,473,742
951,242
Each share has the same right to receive dividend and the repayment of capital and represents one vote at the
shareholders’ meeting of Cygnus.
6.1 PERFORMANCE RIGHTS
–
The table below discloses the number of performance rights granted, vested or lapsed during the year. Each
performance rights converts to one ordinary share in the Company upon satisfaction of the performance conditions
linked to the rights. The rights do not carry any other privileges. The fair value of the performance rights granted is
determined based on the number of rights awarded multiplied by the share price of the Company on the
date awarded.
Management has assessed the most probable outcomes to be achieved by the expiry date and has used weighted
probabilities to determine the value of the rights accordingly. The expense recorded as share based payments is
recognized straight-line over the vesting period (in this case, from the award date to the expiry date).
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25 May 18
15 Jan 19
15 Jan 19
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15 Jan 19
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15 Jan 19
15 Jan 20
0.19
15 Jan 20
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Annual Report 2018 - Cygnus Gold Limited // 67
Cygnus Gold - Notes to the Financial Statements
68
The following performance conditions are applicable to the rights awarded in the year:
Two measurement periods:
(i)
(ii)
Tranche 1 is the period from 15/1/18 to 15/1/2019.
Tranche 2 is the period 15/1/18 to 15/1/2020.
The vesting conditions for the Performance Rights are as follows:
(i)
(ii)
(iii)
Employment at the end of the relevant measurement period;
No fatalities on the Company’s mining tenements; and
Performance of the Company against a peer group based on Total Shareholder Return (TSR).
Cygnus’ TSR compared to the peer group will determine the proportion of Performance Rights that will vest (subject
to the other vesting conditions being met), as set out below:
RELATIVE TSR OVER THE MEASUREMENT PERIOD
PROPORTION OF PERFORMANCE RIGHTS VESTED
Below the 50th percentile
At the 50th percentile
0%
50%
Between the 50th and the 75th percentile
Pro-rata between 50% and 100%
Above the 75th percentile
100%
Subject to the vesting criteria being met, directors will be entitled to exercise the number of Performance Rights
vesting and be issued with a corresponding number of ordinary shares in Cygnus Gold Limited.
Note that Tranche 1 milestone were not achieved and were cancelled subsequent to 31 December 2018.
7 Loss per share
–
Both the basic and diluted loss per share have been calculated using the loss attributable to shareholders of the
Company as the numerator (ie no adjustments to profit were necessary in 2017).
Net loss attributable to ordinary equity holders of the Company
(638,119)
(784,721)
Weighted average number of ordinary shares outstanding during the year used
in calculation of basic and diluted loss per share
57,996,711
29,150,557
Basic and diluted loss per share (cents per share)
(1.10)
(2.69)
2018
$
2017
$
68 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Notes to the Financial Statements
8 Reconciliation of cash flows from operating activities
–
69
Cash flows from operating activities
Loss for the period
Adjustments for depreciation
Share based payment expensed
Net changes in working capital:
Change in trade and other receivables
Change in employee benefits provisions
Change in trade and other payables
2018
$
2017
$
(638,119)
(784,721)
26,009
2,596
2,814
-
319,413
(28,044)
43,274
(74,157)
10,715
97,501
Net cash from operating activities
(320,984)
(701,735)
9 Auditor remuneration
–
2018
$
2017
$
Audit and review of financial statements
Auditors of Cygnus Gold Limited - Grant Thornton Australia
27,309
27,875
Non-audit services
Investigation accountant’s report and due diligence services
-
12,000
Tax compliance
Total auditor’s remuneration
8,050
5,500
35,359
45,375
Annual Report 2018 - Cygnus Gold Limited // 69
Cygnus Gold - Notes to the Financial Statements
70
10 Related party transactions
–
The Company’s related parties include its associates and joint venture, key management, post-employment
benefit plans for the Company’s employees and others as described below. Unless otherwise stated, none of the
transactions incorporate special terms and conditions and no guarantees were given or received. Outstanding
balances are usually settled in cash.
10.1 Related party transactions
–
Names and positions of key management personnel in office at the time during the financial year:
Name
Mr Michael Bohm
Mr James Merrillees
Mr Simon Jackson
Dr Oliver Kreuzer
Position
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
Dr Amanda Buckingham
Non-Executive Director
Mr Michael Naylor
Company Secretary
10.2 Key management personnel remuneration
–
Aggregate compensation of key management personnel of the Company:
Short term employee benefits
Post employment benefits
Share based payments (non-cash)
2018
$
593,374
42,177
2,596
638,147
2017
$
468,047
16,345
-
484,392
Detailed information about the remuneration received by each Key Management Personnel is provided in the
remuneration report on page 48.
70 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Notes to the Financial Statements
10.3 Services by key management personnel
–
71
Key management of the Company are the executive members of Cygnus’s Board of Directors and members of the
Executive Council. All transactions with other related parties are made on normal commercial terms and conditions
and at deemed market rates.
Mr Michael Bohm – Non-executive Chairman
Mr Michael Bohm provided corporate and project advisory services to the Company during the year.
•
•
2018
2017
-
$69,750
Dr Amanda Buckingham – Non-executive Director
Fathom Geophysics Australia Pty Ltd, a company of which Dr Amanda Buckingham is a Director, provided
geophysical consulting services to the Company during the year.
•
•
2018
$30,563
2017
$59,116
Dr Oliver Kreuzer – Non-executive Director
Corporate Geoscience Group, a company of which Dr Oliver Kreuzer is the Managing Partner and Principal
Consultant, provided geological consulting services to the Company during the period.
•
•
2018
$28,850
2017
$102,000
Michael Naylor – Company Secretary
Blue Leaf Corporate Pty Ltd, a company of which Mr Naylor is a Director, provided company secretarial and financial
management services to the Company during the year. Amount owing at 31 December 2018, $7,500 and at 31
December 2017 $5,000.
•
•
2018
$90,000
2017
$60,000
Annual Report 2018 - Cygnus Gold Limited // 71
Cygnus Gold - Notes to the Financial Statements
72
11 Financial instrument risk
–
Loans and receivables
Loans
Trade payables and accruals
2018
$
-
479,400
2017
$
11,149
54,786
Risks associated with market risk, credit risk and liquidity risk are not considered material with respect to the
above items.
Liquidity Risk
Liquidity risk arises from the possibility that the Company might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities.
The Company manages liquidity risk by monitoring forecast cash flows, only investing surplus cash with major
financial institutions; and comparing the maturity profile of financial liabilities with the realisation profile of
financial assets.
The Board meets on a regular basis to analyse financial risk exposure and evaluate treasury management strategies
in the context of the most recent economic conditions and forecasts. The Board’s overall risk management strategy
seeks to assist the Company in managing its cash flows. Financial liabilities are expected to be settled within
12 months.
Notes
5
5
Carrying
Amount $
Contractual
Cash Flows $
561,451
479,400
561,451
479,400
6 Months
or less $
561,451
479,400
2018 Trade and other payables
2017 Trade and other payables
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the
Company’s income or the value of its holdings of financial instruments. The objective of market risk management is
to manage and control market risk exposures within acceptable parameters, while optimising the return.
Currency Risk
The Company is not exposed to significant foreign currency risk on transactions that are denominated in a currency
other than the respective functional currencies of the Company entities being the Australian Dollar (AUD).
Interest Rate Risk
The Company’s exposure to market risk for changes in interest rates relates primarily to the Company’s cash.
Cash includes funds held in term deposits and cheque accounts during the year, which earned variable interest at
rates ranging between 1.05% and 2.5% (2017: 1.05 % and 2.65%), depending on the bank account type and
account balances.
The Company has no loans or borrowings.
72 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Notes to the Financial Statements
At the reporting date the interest rate sensitivity for the Company interest-bearing financial instrument was:
73
Carrying Amount
31 December 2018
$
Carrying Amount
31 December 2017
$
Variable rate financial assets
3,532,140
145,517
A change of 100 basis points in the interest rates at the end of the reporting period would have increased
(decreased) profit and loss by the amounts shown below. The analysis assumes that all other variables remain
constant. This analysis is performed on the same basis for 2018.
100bp increase
100bp increase
3,532
3,532
145
145
Capital management policies and procedures
The Company’s capital management objectives are:
• to ensure the Company’s ability to continue as a going concern; and
• to provide an adequate return to shareholders.
The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents
as presented on the face of the Statement of Financial Position recognised in other comprehensive income.
Management assesses the Company’s capital requirements in order to maintain an efficient overall financing
structure while avoiding excessive leverage. The Company manages the capital structure and makes adjustments to
it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
Annual Report 2018 - Cygnus Gold Limited // 73
Cygnus Gold - Notes to the Financial Statements
74
12 Commitments and contingent assets and liabilities
–
Due to the nature of the Company’s operations in exploring and evaluating areas of interest, it is difficult to
accurately forecast the nature or amount of future expenditure, although it will be necessary to incur expenditure in
order to retain present interests in mineral tenements.
Annual rent on exploration licenses held by the Company are $139,536 (2017: $100,098) with a minimum exploration
commitment of $1,026,000 (2017:$761,000) per annum. Annual rent on exploration licenses held under joint
venture arrangements are $190,808 (2017: $35,224) with a minimum exploration commitment of $1,802,000 (2017:
$273,000) per annum . The Company is not aware of any other contingent commitments.
13 Exploration and evaluation
–
Opening balance
Expenditure incurred during the year
Closing balance
14 Property, plant and equipment
–
Assets at cost
Accumulated depreciation
Carrying value 31 December
2018
$
565,924
1,989,337
2,555,261
2018
$
131,176
(28,823)
102,353
2017
$
65,047
500,877
565,924
2017
$
14,925
(2,814)
12,111
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the
end of the current year, is as follows:
IT equipment
$
Software &
communications
$
Motor vehicles
$
Total
$
Balance at 1 January 2018
Additions
Depreciation expense
Balance at 31 December 2018
12,111
28,721
(14,787)
26,045
-
26,236
(6,004)
20,232
-
12,111
61,294
116,251
(5,218)
(26,009)
56,075
102,353
74 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Notes to the Financial Statements
15 Income tax expense
–
75
The major components of tax expense and the reconciliation of the expected tax expense based on the domestic
effective tax rate is at 27.5% (2017: 27.5%) and the reported tax expense in profit or loss are as follows:
Accounting loss before tax
2018
$
2017
$
638,119
784,721
At Australia’s statutory income tax rate of 27.5% (2017: 27.5%)
(175,483)
215,798
Deferred tax asset not recognised
Income tax expense attributable to entity
Deferred income tax at balance date relates to the following:
Deferred tax assets
Accrued expenditure
Capital raising cost
Tax losses
Total deferred tax assets
Deferred tax liabilities
Exploration and evaluation assets
Total deferred tax liability
175,483
(215,798)
-
-
9,659
10,313
32,800
32,800
1,032,948
342,360
1,075,408
385,743
702,697
155,629
702,697
155,629
Deferred tax asset recognised to offset deferred tax liability
(702,697)
(155,629)
Net deferred tax asset not brought to account
372,711
230,114
Total tax losses not used against deferred tax liabilities for which no
deferred tax asset has been recognised (not tax effected)
3,875,448
1,364,219
Annual Report 2018 - Cygnus Gold Limited // 75
Cygnus Gold - Notes to the Financial Statements
76
16 Other expenses
–
Corporate expenses
Occupancy
Travel and accommodation
17 Operating segments
–
2018
$
337,646
48,456
9,228
395,330
2017
$
313,320
23,463
10,582
347,365
The Company has identified its operating segments based on the internal reports that are reviewed and used by the
directors (chief operating decision makers) in assessing performance and determining the allocation of resources.
The company operates in one segment being Exploration and Evaluation of Minerals in Western Australia.
18 OPERATING LEASES AS LESSEE
–
The company leases office space under an operating lease. The future minimum lease payments are as follows:
Within 1 year
$
1 to 5 years
$
After 5 years
$
31 December 2018
31 December 2017
49,414
34,468
207,502
149,445
-
-
Total
$
255,916
183,913
Lease expense during the period amount to $47,858 (2017: $20,106) representing minimum lease payments. The
lease agreement commenced on 1 July 2017 and has an initial term of 3 years expiring 29 June 2020 at which point
an option for renewal for a further term of 2 years to 29 June 2022 exists.
19 POST-REPORTING DATE EVENTS
–
There are no matters or circumstances that have arisen since the end of the year that have significantly affected or
may significantly affect either:
• the Company’s operations in future financial years
• the results of those operations in future financial years; or
• the Company’s state of affairs in future financial years.
76 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Notes to the Financial Statements
20 Changes in accounting policies
–
77
20.1 Accounting Standards issued but not yet effective and not being adopted early by
the Company
–
Several amendments and interpretations apply for the first time in 2018, but do not have an impact on the
consolidated financial statements of the Company. The Company has not early adopted any standards,
interpretations or amendments that have been issued but are not yet effective.
New standards adopted in the period
During the year, there were two significant accounting standards adopted by the Company:
AASB 15 Revenue from contracts with customers
AASB 15 replaces AASB 118 Revenue, AASB 111 Construction Contracts and several revenue-related
Interpretations. The new Standard has been applied as at 1 July 2018 with no adjustment to opening retained
earnings required as the Company had yet to derive material revenue until the current period.
AASB 9 Financial Instruments
AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement. It
makes major changes to the previous guidance on the classification and measurement of financial assets
and introduces an ‘expected credit loss’ model for impairment of financial assets. AASB 9 also
contains new requirements on the application of hedge accounting.
The Company has adopted the standard in this period but does not have any financial instruments of which
are impacted by the adoption. Thus, there has been no adjustment to opening retained earnings as at 1 July
2018. Given that the Company does not have any material financial instruments that are impacted by the
adoption of the standard, the Company has not disclosed significant accounting policies with respect to
balances impacted by this standard.
Standard not yet effective this period
The following standard not yet effective is considered to be applicable to the Company’s balances and
transactions:
AASB 16 Leases
Nature of change
AASB 16 requires lessees to account for all leases under a single on-balance sheet model. The standard
includes two recognition exemptions for lessees – leases of ’low-value’ assets (e.g., personal computers) and
short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease,
a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the
right to use the underlying asset during the lease term (i.e., the right-of-use asset).
Lessees will be required to separately recognise the interest expense on the lease liability and the
depreciation expense on the right-of-use asset.
Lessees will be required to remeasure the lease liability upon the occurrence of certain events (e.g., a change
in the lease term, a change in future lease payments resulting from a change in an index or rate used to
Annual Report 2018 - Cygnus Gold Limited // 77
Cygnus Gold - Notes to the Financial Statements
78
determine those payments). The lessee will generally recognise the amount of the remeasurement of
the lease liability as an adjustment to the right-of-use asset.
Application date
Annual reporting periods beginning on or after 1 January 2019.
Impact on initial application
Based on an initial impact assessment, the new accounting standard is not expected to impact the Company
as it currently does not have any significant operating or finance leases.
Likely impact on initial application
The Company is yet to undertake a detailed assessment of the impact of AASB 16. However, based on the
entity’s preliminary assessment, the likely impact on the first time adoption of the Standard for the year
ending 31 December 2019 includes:
•
•
there will be a significant increase in lease assets and financial liabilities recognised on the balance sheet
the reported equity will reduce as the carrying amount of lease assets will reduce more quickly than the
carrying amount of lease liabilities
•
EBIT in the statement of profit or loss and other comprehensive income will be higher as the implicit
interest in lease payments for former off balance sheet leases will be presented as part of finance costs
rather than being included in operating expenses
•
operating cash outflows will be lower and financing cash flows will be higher in the statement of cash
flows as principal repayments on all lease liabilities will now be included in financing activities rather
than operating activities. Interest can also be included within financing activities
78 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Notes to the Financial Statements
20.2 FUNCTIONAL AND PRESENTATION CURRENCY
–
79
The functional currency of Company is measured using the currency of the primary economic environment in
which that entity operates. The financial statements are presented in Australian dollars which is the parent entity’s
functional and presentation currency.
20.3 OPERATING EXPENSES
–
Operating expenses are recognised in profit or loss upon utilisation of the service or at the date of their origin.
Expenditure for warranties is recognised and charged against the associated provision when the related revenue is
recognised.
20.4 Financial instruments
–
Recognition, Initial Measurement and Derecognition
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the financial instrument. The company has only non-complex financial instruments that are
summarised in notes (3), (5) and (6) of the financial report, the details of which are as follows:
Cash and cash equivalents
Cash at bank or on hand and short-term deposits (being those with an original maturity date of less than 3 months).
Trade and other receivables
• net GST amounts owing from the tax authorities; and
• accrued interest from cash in bank and term deposits.
Prepayments
General prepayments such as prepaid insurance.
Trade and other payables
• PAYG amounts withheld from employee wages and owing to the tax authorities;
• Superannuation amounts owed to the tax authorities; and
• Trade creditors and accruals for services performed by suppliers and vendors of the Company.
Gold Road funds received in advance
As at balance date, the Company was provided funds to be spent under the terms and conditions of a JV
agreement. These amounts give rise to a liability as the Company is obligated to spend the funds under their
JV contract.
The financial assets and financial liabilities above are measured at amortised cost. The financial assets are
derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial
asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished,
discharged, cancelled or expires. These events occur within 12-months of balance date.
Annual Report 2018 - Cygnus Gold Limited // 79
Cygnus Gold - Notes to the Financial Statements
80
20.5 LOANS AND RECEIVABLES
–
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market. After initial recognition, these are measured at amortised cost using the effective interest method,
less provision for impairment. Discounting is omitted where the effect of discounting is immaterial. The Company’s
trade and most other receivables fall into this category of financial instruments.
Individually significant receivables are considered for impairment when they are past due or when other objective
evidence is received that a specific counterparty will default. Receivables that are not considered to be individually
impaired are reviewed for impairment in companies, which are determined by reference to the industry and region
of a counterparty and other shared credit risk characteristics. The impairment loss estimate is then based on recent
historical counterparty default rates for each identified Company.
Classification and subsequent measurement of financial liabilities The Company’s financial liabilities include trade
and other payables.
Financial liabilities are measured subsequently at amortised cost using the effective interest method.
20.6
Income taxes
–
Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not recognised in other
comprehensive income or directly in equity.
Current income tax assets and/or liabilities comprise those obligations to, or claims from, the Australian Taxation
Office (‘ATO’) and other fiscal authorities relating to the current or prior reporting periods that are unpaid at the
reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the financial statements.
Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the
end of the reporting period.
Deferred income taxes are calculated using the liability method on temporary differences between the carrying
amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition
of goodwill or on the initial recognition of an asset or liability unless the related transaction is a business
combination or affects tax or accounting profit. Deferred tax on temporary differences associated with investments
in subsidiaries and joint ventures is not provided if reversal of these temporary differences can be controlled by the
Company and it is probable that reversal will not occur in the foreseeable future.
Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their
respective period of realisation, provided they are enacted or substantively enacted by the end of the reporting
period.
Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised against future
taxable income, based on the Company’s forecast of future operating results which is adjusted for significant non-
taxable income and expenses and specific limits to the use of any unused tax loss or credit. Deferred tax liabilities
are always provided for in full. Deferred tax assets and liabilities are offset only when the Company has a right and
intention to set off current tax assets and liabilities from the same taxation authority.
Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in profit or
loss, except where they relate to items that are recognised in other comprehensive income (such as the revaluation
of land) or directly in equity, in which case the related deferred tax is also recognised in other comprehensive
income or equity, respectively.
80 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Notes to the Financial Statements
20.7 Cash and cash equivalents
–
81
Cash and short-term deposits in the statement of financial position comprise cash at banks and on hand and short-
term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-
term deposits, as defined above, are considered an integral part of the Company’s cash management.
20.8 Equity and reserves
–
Share capital represents the fair value of shares that have been issued. Any transaction costs associated with the
issuing of shares are deducted from share capital, net of any related income tax benefits.
Retained earnings include all current and prior period retained profits.
The company maintains a share base payments reserve which accumulates the value recognised as a result of share
based awards issued to employees or contractors for services rendered. Where amounts have accumulated in the
reserve and the underlying instruments expire, amounts are transferred from the reserve to retained earnings. Where
amounts have accumulated in the reserve and the underlying instruments have vested or been exercised, amounts
are transferred from the reserve to share capital.
20.9 Provisions, contingent liabilities and contingent assets
–
Provisions for product warranties, legal disputes, onerous contracts or other claims are recognised when the
Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of
economic resources will be required from the Company and amounts can be estimated reliably. Timing or amount
of the outflow may still be uncertain.
Restructuring provisions are recognised only if a detailed formal plan for the restructuring has been developed and
implemented, or management has at least announced the plan’s main features to those affected by it. Provisions are
not recognised for future operating losses.
Provisions are measured at the estimated expenditure required to settle the present obligation, based on the
most reliable evidence available at the reporting date, including the risks and uncertainties associated with the
present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required
in settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their
present values, where the time value of money is material.
Any reimbursement that the Company can be virtually certain to collect from a third party with respect to the
obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related
provision.
No liability is recognised if an outflow of economic resources as a result of present obligation is not probable. Such
situations are disclosed as contingent liabilities, unless the outflow of resources is remote in which case no liability is
recognised.
Annual Report 2018 - Cygnus Gold Limited // 81
Cygnus Gold - Notes to the Financial Statements
82
20.10 Exploration and Development expenditure
–
Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable
area of interest. These costs are only capitalised to the extent that they are expected to be recovered through
the successful development of the area or where activities in the area have not yet reached a stage that permits
reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the
decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of
the area according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise
costs in relation to that area of interest.
Costs of site restoration are provided over the life of the project from when exploration commences and are
included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant,
equipment and building structures, waste removal, and rehabilitation of the site in accordance with local laws and
regulations and clauses of permits. Such costs have been determined using estimates of future costs, current legal
requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site
restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations
and future legislation. Accordingly, the costs have been determined on the basis that the restoration will be
completed within one year of abandoning the site.
20.11 Goods and Services Tax (GST)
–
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Tax Office. In these circumstances the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense. Receivables and payables in the Statement of Financial
Position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST components of
investing and financing activities, which are disclosed as operating cash flows.
20.12 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
–
The preparation of the consolidated financial statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income
and expenses. Actual results may differ from these estimates.
In preparing this Annual Financial Report, the significant judgements and estimates made by management in
applying the Entity’s accounting policies and the key sources of estimation uncertainty are detailed below.
82 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Notes to the Financial Statements
Critical Estimates
Exploration and Evaluation Expenditure - Impairment
83
Determining the recoverability of exploration and evaluation expenditure capitalised in accordance with the
Company’s accounting policy requires estimates and assumptions as to future events and circumstances, in
particular, whether successful development and commercial exploitation, or alternatively sale, of the respective
areas of interest will be achieved. Critical to this assessment is estimates and assumptions as to the presence of
mineral reserves, timing of expected cash flows, exchange rates, commodity prices and future capital requirements.
Changes in these estimates and assumptions as new information about the presence or recoverability of a mineral
reserve becomes available, may impact the assessment of the recoverable amount of exploration and evaluation
assets. If, after having capitalised the expenditure a judgement is made that recovery of the expenditure is unlikely,
an impairment loss is recorded in the consolidated statement profit or loss and other comprehensive income.
Performance Rights
The Company makes judgments around the value of awarded performance rights based on the historical
performance of the company as the vesting conditions are linked to peer group comparison via Total Shareholder
Returns (TSR). Management determines the total value of the award based on weighted probabilities of the vesting
criteria being achieved. In addition to historical performance compared to its peers, management further considers
how the Company is tracking towards the vesting criteria based on subsequent performance with reference to
subsequent events up to balance date as well as any other expected improvements in the share price based on
operational knowledge.
Critical Judgments
Exploration and Evaluation Expenditure
The entity 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 since feasibility studies in such
areas have not yet been conducted.
20.13 GOING CONCERN
–
The Company has incurred a net loss of $638,119 (2017: $784,721) during the year and the cash outflows from
operating activities equates to $320,984 (2017: $701,735).
The financial statements have been prepared on the basis of going concern which contemplates continuity of
normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.
The Directors consider this to be appropriate given the ability to manage the Company’s cost structure and in turn
the levels of cash outflow dependent on timing of its exploration activities.
Taking into account the current cash reserves and successful fund raising from the Initial Public Offering completed
in January 2018 of $6,000,000 before cost, the Directors are confident the Company has adequate resources to
continue as a going concern for the foreseeable future.
Annual Report 2018 - Cygnus Gold Limited // 83
Cygnus Gold - Notes to the Financial Statements
84
20.14 EMPLOYEE BENEFITS
–
Wages and salaries and annual leave:
Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service. Examples of such
benefits include wages and salaries, non-monetary benefits and accumulating sick leave. Short-term employee
benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled.
20.15 PROPERTY, PLANT AND EQUIPMENT
–
Recognition and Measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.
Costs include expenditures that are directly attributable to the acquisition of the asset.
Subsequent Costs
Subsequent expenditure is only capitalised when it is probable that the future economic benefits associated with
the expenditure will flow to the Company.
Ongoing repairs and maintenance are expensed as incurred.
Depreciation
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of
an item of property, plant and equipment. The expected useful lives in the current and comparative period are as
follows:
IT equipment
Plant and equipment
Motor vehicle
2 – 3 years
2 – 3 years
5 years
The estimated useful lives, depreciation methods and residual values are reviewed at the end of each
reporting period.
84 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Notes to the Financial Statements
20.16 SHARE BASED PAYMENTS
–
85
The Company operates equity-settled share-based remuneration plans for its employees. None of the Company’s
plans feature any options for a cash settlement.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair
values. Where employees are rewarded using share-based payments, the fair values of employees’ services are
determined indirectly by reference to the fair value of the equity instruments granted. This fair value is appraised at
the grant date and excludes the impact of non-market vesting conditions (for example profitability and sales growth
targets and performance conditions).
All share-based remuneration is ultimately recognised as an expense in profit or loss with a corresponding credit
to share option reserve. Where vesting periods exist, the total expense is recognised straight-line over the vesting
period. Where vesting conditions are non-market based, the expense is based on the best available estimate of
the number of instruments expected to vest. Where the vesting conditions are market based, the company uses a
pricing model to determine fair value of each instrument.
However, in the case of the performance rights issued in the current period as outlined in Note (6.1), the Company
has not utilised a pricing model given the nature of the vesting conditions and how they are interdependent on the
performance of a peer group which is represented by a significant number of ASX listed companies. In this case, the
use of a pricing model is not considered practical or commercial. The total value of the rights is determined, rather,
based on management’s estimates and judgments that uses a weighted probability to determine the most likely
outcome of performance rights that will vest which is then multiplied by the fair value of each instrument (i.e. the
share price of the Company) on the date of granting.
20.17 REVENUE
–
Revenue arises from a management fee derived from the Company’s facilitation of exploration and evaluation
activities on behalf of its joint venture / earn-in Partner. The fee is derived as a percentage of amounts received from
the JV partner and expended on the tenements of which the two partners are exploring. To determine whether to
recognise revenue, the Company follows a 5-step process:
1.
Identifying the contract with a customer
2.
Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations
5. Recognising revenue when/as performance obligation(s) are satisfied.
For the management fee, revenue is recognised on an accruals basis at a point in time, which is defined as the
moment in which the company spends the JV partner’s contributions to the earn-in arrangement and thus is entitled
to the management fee that attaches to the expenditure.
Interest revenue is reported on an accrual basis using the effective interest method.
All revenue is stated net of any applicable goods and services tax (GST).
Annual Report 2018 - Cygnus Gold Limited // 85
Cygnus Gold - Notes to the Financial Statements
86
20.18 JOINT OPERATIONS
–
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to
the assets, and obligations for the liabilities, relating to the arrangement. The Company has recognised its share of
jointly held assets, liabilities, revenues and expenses of joint operations.
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to
the assets, and obligations for the liabilities, relating to the arrangement. The Company has recognised its share of
jointly held assets, liabilities, revenues and expenses of joint operations.
The Company currently has three joint operations with the listed ASX company Gold Road Resources Limited (“Gold
Road”) as follows:
1.
2.
The Lake Grace Project
The Wadderin Project
For both of these projects, Cygnus owns 100% of the tenement rights and Gold Road can earn-in to a maximum
of 75% of interest in the tenements. In order to do so, Gold Road must spend as much as $3.7M over the four year
period from the commencement of the operation in October 2017.
In each of these cases, Cygnus receives cash calls from Gold Road and manages the exploration and evaluation
activity at their discretion, deriving a management fee of 10% of the expenditure that has spent from Gold Road
funds. Given the accounting policies noted above, none of the amounts spent by Cygnus on behalf of Gold Road
are included in the exploration and evaluation asset on the Statement of Financial Position. The Company only
capitalises qualifying expenditure on the projects as exploration and evaluation asset where it is the Company’s
cash used.
As at 31 December 2018, Gold Road had provided Cygnus with $158,563 (2017: nil) of cash that was spent post year-
end on the projects. This balance appears as a liability in Trade and other payables. See Note (5).
3.
The Yandina Joint Venture
In this joint operation, Gold Road is to hold 75% of the tenement rights and the Company’s share is to be 25%. The
rights of tenure over these tenements were granted during the year as such expenditure is incurred is capitalised as
exploration and evaluation asset. Expenditure incurred prior to rights over tenure was expensed.
20.19 GOVERNMENT GRANTS
–
The company receives government grants for qualifying exploration and evaluation activity. The amounts are paid in
arrears as a reimbursement. All expenditures incurred by the Company that are covered by the grant are capitalized
exploration and evaluation expenditure. For this reason, the company applies the grant amounts received as an off-
set against its evaluation and exploration asset balance on the Statement of Financial Position. In the current period,
this treatment occurred for the EIS Grant - a co-funded exploration drilling program - totalling to $139,149 (2017: nil).
86 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Directors’ declaration
87
Directors’ Declaration
—
1.
In the opinion of the Directors of Cygnus Gold Limited:
a
The financial statements and notes of Cygnus Gold Limited are in accordance with the Corporations Act
2001, including:
i
ii
Giving a true and fair view of its financial position as at 31 December 2018 and of its performance
for the year ended on that date; and
Complying with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Regulations 2001; and
b
There are reasonable grounds to believe that Cygnus Gold Limited will be able to pay its debts as and when
they become due and payable.
2. The directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
Managing Director and Chief Financial Officer for the year ended 31 December 2018.
3. Note 2 confirms that the financial statements also comply with International Financial Reporting Standards.
Signed in accordance with a resolution of the directors:
James Merrillees
Managing Director
Perth, 28 March 2019
Annual Report 2018 - Cygnus Gold Limited // 87
Cygnus Gold - Independent Auditor’s Report
88
Grant Thornton Audit Pty Ltd
Central Park
Level 43
152 - 158 St Georges Terrace
PO Box 7757
Perth WA 6000
T +61 8 9480 2000
Independent Auditor’s Report
To the Members of Cygnus Gold Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Cygnus Gold Limited (the Company), which comprises the
statement of financial position as at 31 December 2018, the statement of profit or loss and other
comprehensive income, statement of changes in equity and statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies, and
the Directors’ declaration.
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations
Act 2001, including:
a giving a true and fair view of the Company’s financial position as at 31 December 2018 and of its
financial performance for the year then ended; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Company in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton
Australia Limited ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant
Thornton member firms provide assurance, tax and advisory services to their clients and/or refers
to one or more member firms, as the context requires. Grant Thornton Australia Limited is a
member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a
worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member
firms are not agents of, and do not obligate one another and are not liable for one another’s acts or
omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant
Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities.
Liability limited by a scheme approved under Professional Standards Legislation.
www.grantthornton.com.au
88 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Independent Auditor’s Report
89
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our
audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our
report.
Key audit matter
How our audit addressed the key audit matter
Exploration and Evaluation Assets
Note 13, 20.10 & 20.11
At 31 December 2018 the carrying value of Exploration
and Evaluation Assets was $2,555,261.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources, the Company is
required to assess at each reporting date if there are
any triggers for impairment which may suggest the
carrying value is in excess of the recoverable value.
The process undertaken by management to assess
whether there are any impairment triggers in each area
of interest involves an element of management
judgement.
This area is a key audit matter due to the significant
judgement involved in determining the existence of
impairment triggers.
Our procedures included, amongst others:
obtaining the management reconciliation of
capitalised exploration and evaluation
expenditure and agreeing to the general ledger;
reviewing management’s area of interest
considerations against AASB 6;
conducting a detailed review of management’s
assessment of trigger events prepared in
accordance with AASB 6 including;
tracing projects to statutory registers,
exploration licenses and third party
confirmations to determine whether a
right of tenure existed;
enquiry of management regarding their
intentions to carry out exploration and
evaluation activity in the relevant
exploration area, including review of
management’s budgeted expenditure;
understanding whether any data exists to
suggest that the carrying value of these
exploration and evaluation assets are
unlikely to be recovered through
development or sale; and
assessing the appropriateness of the related
financial statement disclosures.
Information Other than the Financial Report and Auditor’s Report Thereon
The Directors are responsible for the other information. The other information comprises the information
included in the Company’s annual report for the year ended 31 December 2018, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the Directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error.
In preparing the financial report, the Directors are responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to liquidate the Company or to
cease operations, or have no realistic alternative but to do so.
© 2019 Grant Thornton Australia Limited.
Annual Report 2018 - Cygnus Gold Limited // 89
Cygnus Gold - Independent Auditor’s Report
90
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf.
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 43 to 54 of the directors’ report for the
year ended 31 December 2018.
In our opinion, the Remuneration Report of Cygnus Gold Limited, for the year ended 31 December 2018,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
Grant Thornton Audit Pty Ltd
CHARTERED ACCOUNTANTS
P W Warr
Partner – Audit & Assurance
Perth, 28 March 2019
90 // Cygnus Gold Limited - Annual Report 2018
© 2019 Grant Thornton Australia Limited.
Cygnus Gold - Additional shareholder information as at 7 March 2019
Top 20 holders of ordinary shares
–
In accordance with ASX Listing Rule 4.10, the following information is provided as at 7 March 2019.
91
Rank
Name
Units
% of issued
capital
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Merrill Lynch (Australia) Nominees Pty Limited
Southern Cross Capital Pty Ltd
Resource Capital Fund VI L.P.
Gold Road (Projects) Pty Ltd
Ms Charmaine Linda Lobo
Mr Alan Frank Cleland
Southern Cross Capital Pty Ltd
Mr Oliver Pierre Kreuzer
Fathom Geophysics Australia Pty Ltd
Insurgent Metals Pty Ltd
Dale Park Pty Ltd
Equity Trustees Limited
Sargon CT Pty Ltd
Eastern Goldfields Exploration Pty Ltd
BNP Paribas Nominees Pty Ltd
Mr Robert Angus Castle Stuart
Jetosea Pty Ltd
Ms Sarah June McAlpine
Mr Michael Dylan Naylor & Ms Sarah McAlpine
20
Cumbak Pty Ltd
5,000,000
5,000,000
4,166,667
3,750,000
3,170,001
3,000,001
2,500,000
1,833,334
1,666,667
1,666,667
1,333,334
1,099,399
1,065,533
1,000,000
675,001
666,667
521,173
520,000
470,000
460,000
8.24
8.24
6.87
6.18
5.22
4.94
4.12
3.02
2.75
2.75
2.20
1.81
1.76
1.65
1.11
1.10
0.86
0.86
0.77
0.76
Total
39,364,444
64.88
Annual Report 2018 - Cygnus Gold Limited // 91
Cygnus Gold - Additional shareholder information as at 7 March 2019
92
Range of shares
–
Range
Total holders
Units
% of issued capital
11
60
50
305
61
487
2,478
180,982
448,462
12,306,046
47,745,373
0.00
0.30
0.74
20.28
78.68
60,683,341
100.00
Units
% of issued capital
9,166,664
7,500,000
3,750,000
3,170,001
3,170,001
15.11
12.36
6.18
5.22
5.22
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Substantial Holders
–
Range
Resource Capital Fund VI L.P.
Southern Cross Capital Pty Ltd
Gold Road (Projects) Pty Ltd
Mr Alan Frank Cleland
Ms Charmaine Linda Lobo
92 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Additional shareholder information as at 7 March 2019
Unmarketable Parcels
–
There were 85 shareholders with less than a marketable parcel of shares, based on the closing price $0.056
93
Restricted Securities
–
There are 15,577,088 ordinary shares escrowed until 15 January 2020.
Voting Rights
–
In accordance with the Company’s constitution, on a show of hands every member present in person or by proxy or
attorney or duly appointed representative has one vote. On a poll every member present or by proxy or attorney or
duly authorised representative has one vote for every fully paid share held.
ASX Listing Rule 4.10.19
–
In accordance with Listing Rule 4.10.19, the company states that it has used the cash and assets in a form readily
convertible to cash that it had at the time of admission in a way consistent with its business objectives. The business
objective is primarily mineral exploration.
Annual Report 2018 - Cygnus Gold Limited // 93
Cygnus Gold - Additional shareholder information as at 7 March 2019
94
Schedule of tenements
–
A listing of the Entity’s tenements:
Tenement
Location
Registered Owner
% OF OWNERSHIP
E70/4787
Western Australia
Cygnus Gold Limited
E70/4854
Western Australia
Cygnus Gold Limited
E70/4910
Western Australia
Cygnus Gold Limited
E70/4912
Western Australia
Cygnus Gold Limited
E70/4952
Western Australia
Cygnus Gold Limited
E70/4988
Western Australia
Cygnus Gold Limited
E70/4992
Western Australia
Cygnus Gold Limited
E70/5050
Western Australia
Cygnus Gold Limited
E70/5131
Western Australia
Cygnus Gold Limited
E70/5137
Western Australia
Cygnus Gold Limited
E70/5168
Western Australia
Cygnus Gold Limited
E70/5169
Western Australia
Cygnus Gold Limited
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
E70/5196
Western Australia
Cygnus Gold Limited
Pending, 100%
E77/2405
Western Australia
Cygnus Gold Limited
E77/2463
Western Australia
Cygnus Gold Limited
100%
100%
E77/2464
Western Australia
Cygnus Gold Limited
Pending, 100%
Wadderin Earn-In Project
E70/4911
Western Australia
Cygnus Gold Limited
100%, diluting to 25%
E70/4939
Western Australia
Cygnus Gold Limited
100%, diluting to 25%
E70/4989
Western Australia
Cygnus Gold Limited
100%, diluting to 25%
E70/4990
Western Australia
Cygnus Gold Limited
100%, diluting to 25%
E70/5018
Western Australia
Cygnus Gold Limited
100%, diluting to 25%
E70/5019
Western Australia
Cygnus Gold Limited
100%, diluting to 25%
E70/5020
Western Australia
Cygnus Gold Limited
100%, diluting to 25%
94 // Cygnus Gold Limited - Annual Report 2018
Cygnus Gold - Additional shareholder information as at 7 March 2019
95
Lake Grace Earn-In Project
E70/4853
Western Australia
Cygnus Gold Limited
100%, diluting to 25%
E70/4855
Western Australia
Cygnus Gold Limited
100%, diluting to 25%
E70/4991
Western Australia
Cygnus Gold Limited
100%, diluting to 25%
E70/5017
Western Australia
Cygnus Gold Limited
100%, diluting to 25%
E70/5188
Western Australia
Cygnus Gold Limited
Pending 100%, diluting to 25%
Yandina Joint Venture Project
E70/5098
Western Australia
Gold Road (Projects) Pty Ltd
E70/5099
Western Australia
Gold Road (Projects) Pty Ltd
E70/5100
Western Australia
Gold Road (Projects) Pty Ltd
E70/5101
Western Australia
Gold Road (Projects) Pty Ltd
E70/5098
Western Australia
Gold Road (Projects) Pty Ltd
25%
25%
25%
25%
25%
HYDEN JOINT VENTURE PROJECT
E70/5230
Western Australia
Cygnus Gold Limited, Gold Road
(Projects) Pty Ltd
Pending 25%
E70/5231
Western Australia
Cygnus Gold Limited, Gold Road
(Projects) Pty Ltd
Pending 25%
E70/5232
Western Australia
Cygnus Gold Limited, Gold Road
(Projects) Pty Ltd
Pending 25%
Annual Report 2018 - Cygnus Gold Limited // 95
Cygnus Gold Limited
Level 3, 20 Parkland Road,
Osborne Park, Perth,
WA 6017, Australia
+61 (0)8 9489 2680
info@cygnusgold.com
www.cygnusgold.com
ASX : CY5