ABN 63 149 105 653
ANNUAL REPORT
FOR THE FINANCIAL YEAR ENDED
30 June 2020
CONTENTS
Corporate Information
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Page
1
2
11
12
13
14
15
16
38
39
43
DATELINE RESOURCES LIMITED
CORPORATE INFORMATION
FOR THE YEAR ENDED 30 JUNE 2020
Directors & Officers
Mark Johnson AO - Chairman
Stephen Baghdadi – Chief Executive Officer
Greg Hall - Non-Executive Director
Tony Ferguson - Non-Executive Director
John Smith - Company Secretary
Bankers
Commonwealth Bank of Australia
48 Martin Place
Sydney NSW 2000
Website: www.commbank.com.au
Registered Office
Level 29
2 Chifley Square
Sydney NSW 2000
PO Box 553
South Hurstville NSW 2221
Auditors
HLB Mann Judd Assurance (NSW) Pty Ltd
Level 19, 207 Kent Street
Sydney NSW 2000
Website: www.hlb.com.au
T: +61 (02) 8231 6640
F: +61 (02) 8231 6487
E-mail: info@datelineresources.com.au
Website: www.datelineresources.com.au
Share Registry
Security Transfers Registrars Pty Ltd
770 Canning Highway
Applecross WA 6153
Website: www.securitytransfer.com.au
Securities Exchange
Australian Securities Exchange Limited ("ASX")
Home Exchange – Sydney
ASX Symbol – DTR (ordinary shares)
Solicitors
K & L Gates
Level 31, 1 O'Connell Street
Sydney NSW 2000
Website: www.klgates.com
Australian Company Number
ACN 149 105 653
Australian Business Number
ABN 63 149 105 653
Domicile and Country of Incorporation
Australia
The Company’s Corporate Governance Statement can be found on the Company’s website
www.datelineresouces.com.au
1 | P a g e
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
The Directors submit their report on the consolidated entity (“the Group”), which consists of Dateline
Resources Limited (the “Company” or “Dateline”) and the entities it controlled during the financial year
ended 30 June 2020.
1.
INFORMATION ON DIRECTORS
The names and details of the Group’s Directors in office during the financial year and until the date of this
report are as follows. Directors were in office for the entire year unless otherwise stated.
Mr Mark Johnson AO
Non-Executive Chairman (Appointed 22 April 2013)
LLB MBA (Harvard)
Mr Johnson has worked in banking and corporate finance for more than forty years. He retired as Deputy
Chairman of Macquarie Bank in mid-2007 and now divides his time between work in the private and public
sectors.
Mr Johnson is a senior adviser to Gresham Partners, Chairman of Alinta Energy Ltd, and from 2002 to 2013
one of the three Australian members of the APEC Business Advisory Council (ABAC).
During the past three years, Mr Johnson held the following directorships in other ASX listed companies:
•
•
Independent Director of Westfield Group (resigned June 2018)
Independent Director of OneMarket Limited (appointed May 2018)
Stephen Baghdadi
Managing Director and CEO (Appointed 3 July 2014)
Since 1993 Mr. Baghdadi has acted as an executive director for numerous ASX listed companies including the
Horizon group of companies, Afro-West, Alamain Investments, Marino as well as privately held controlling
interests in manufacturing, software development and property concerns. Mr. Baghdadi has completed
several transactions in Australia, South East Asia, Europe and North America and brings to the table the ability
to identify an undervalued asset or opportunity that has the potential to yield high returns
During the past three years, Mr Baghdadi held the following directorships in other ASX listed companies:
• Executive Director of Southern Cross Explorations N.L. (current).
Mr Gregory Hall
Non-Executive Director (Appointed 19 January 2015)
B. Applied Geology (1st Class Honours)
Mr Hall is an exploration geologist with over 40 years of international experience. From 1988-2005, he was
employed by the Placer Dome group of companies, serving as Chief Geologist -World Wide during the last
five years he was there.
Placer Dome was later acquired by Barrick Gold Corporation in early 2006.
Over the course of his career, Mr. Hall had a senior role in the discoveries of both Gold Field's Granny Smith
mine and Rio Tinto's Yandi iron ore mine. In addition, he took part in the discoveries of Keringal and Wallaby
in Australia's Eastern Goldfields, as well as the definition of AngloGold Ashanti's Sunrise gold mine.
During the past three years, Mr Hall held the following directorships in other ASX listed companies:
• Non-Executive Director of Namibian Copper NL (current);
• Non-Executive Director of Zeus Resources Limited (current).
2 | P a g e
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
Mr Anthony Ferguson
Non-Executive Director (Appointed 29 August 2019)
MBA (Dist), B.Sc, B.E (Hons)
Mr Ferguson is an investor, entrepreneur and an investment banker.
The majority of Mr. Ferguson’s career was with Macquarie Group where he established and led the natural
resources team that advised on many major transactions in the mining industry. He established Macquarie’s
presence in Canada, headed Macquarie’s Asian investment banking operations, established and led the Asia
Resources Fund. Mr. Ferguson’s career included three years as Managing Director and Head of Investment
Banking at Rothschild Australia and a Global Partner of Rothschild Investment Bank.
Before commencing his investment banking career Tony practiced as an engineer and worked at Rio Tinto’s
Woodlawn Mine.
During the past three years, Mr Ferguson held the following directorships in other ASX listed companies: NIL
2.
INFORMATION ON COMPANY SECRETARY
Mr John Smith
(Appointed 24 October 2013)
B. Com, MBA, FCPA
Mr Smith is a Certified Practising Accountant with over 30 years experience as CFO and Company Secretary
of ASX listed and unlisted companies.
3.
DIRECTORS’ SHAREHOLDINGS
The following table sets out each current Director’s relevant interest in shares and rights or options to acquire
shares of the Company as at the date of this report.
Directors
Mark Johnson
Stephen Baghdadi
Gregory Hall
Tony Ferguson
Fully Paid
Ordinary
Shares
1,597,434,637
81,806,666
52,499,887
175,000,000
1,906,741,190
Unlisted
Share
Options
-
-
-
-
-
3 | P a g e
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
4.
DIRECTORS’ MEETINGS
Directors
Mark Johnson
Stephen Baghdadi
Gregory Hall
Tony Ferguson
Number
Eligible to
Attend
Number
Attended
9
9
9
8
9
9
9
8
Functions normally assigned to an Audit Committee and Remuneration Committee are undertaken by the
full Board.
5.
DIVIDENDS
No dividend has been paid during the financial year and no dividend is recommended for the financial year.
6.
PRINCIPAL ACTIVITIES
The Group is an Australian-based company focused on gold mining and exploration targets in Colorado,
United States of America. The company also has exploration projects in the Republic of Fiji.
4 | P a g e
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
7.
OPERATING AND FINANCIAL REVIEW
(a) Operations
Dateline seeks to create value for shareholders, through exploration activities which develop and quantify
resource assets. Once an asset has been developed and quantified within the framework of the JORC
guidelines the Group may elect to move to production, to extract and refine ore which is then sold as a
primary product.
The Group has spent the past two years consolidating ownership of several historic gold mines in the Gold
Brick district of Gunnison County Colorado.
Tenement Schedule
Project
Description / Number
Ownership
Location
Gold Links Permitted Mine
39 Patented Claims
Gold Links Permitted Mine
20 Unpatented Claims
19 Patented Claims
100%
100%
100%
Colorado USA
Colorado USA
Colorado USA
13 Patented Claims
100%
Colorado USA
Lucky Strike Permitted Mine &
Mineral Hill Historic Mine
Lucky Strike Permitted Mine &
Mineral Hill Historic Mine
Udu
Udu
SPL1387
SPL1396
100%
100%
Fiji
Fiji
The Group has undertaken a major development, exploration and acquisition program in Colorado that
included ~1000ft decline and over 10,000ft of diamond drilling plus the recommissioning of the Lucky Strike
Mill and the sale of our first concentrate produced from commissioning ore.
Assays from the drill core confirmed the existence of high-grade shoots of ore. This was a key driver in
deciding to acquire additional ground in the region. The Group has progressed from having a single lease
over ~400 acres to owning ~1700 acres of freehold and all the underlying mineral rights. It is the first time in
the regions history that a single entity has been able to consolidate the majority of the land that makes up
what is referred to as the Gold Brick district in Gunnison Colorado.
In the process of acquiring the assets, the Group was able to extinguish USD20,000,000 of near term and
contingent liabilities and retain outright ownership of all the assets.
As a result of the consolidation, the Group is now able to apply an understanding of the regional geology to
implement targeted exploration programs that aim to prove up a JORC compliant resource.
5 | P a g e
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
(b)
Financial Performance & Financial Position
The financial results of the Group for the year ended 30 June 2020 and 2019 are:
Cash & Cash equivalents ($)
Net Assets ($)
Revenue ($)
Net Profit (Loss) After Tax ($)
Profit/(Loss) per Share (Cents)
Dividend ($)
30-Jun-20
158,362
30-Jun-19
4,816,924
16,560,346 20,268,735
67,761
(3,204,281)
(0.0992)
-
38,972
(3,841,916)
(0.0470)
-
%
Change
-96.7%
-18.3%
-42.5%
-19.9%
52.7%
-
(c) Business Strategies and Prospects for future financial years
The Group actively evaluates the prospects of each project as results from each program become available,
these results are available via the ASX platform for shareholders information. The Group then assesses the
continued exploration expenditure and further asset development. The Group will continue the evaluation
and development of its existing mineral projects.
There are specific risks associated with the activities of the Group and general risks which are largely beyond
the control of the Group and the Directors. The risks identified below, or other risk factors, may have a
material impact on the future financial performance of the Group and the market price of the Company’s
shares.
(i) Operating Risks
The operations of the Group may be affected by various factors, including failure to locate or identify mineral
deposits, failure to achieve predicted grades in exploration and mining, operational and technical difficulties
encountered in mining, difficulties in commissioning and operating plant and equipment, mechanical failure
or plant breakdown, unanticipated metallurgical problems which may affect extraction costs, adverse
weather conditions, industrial and environmental accidents, industrial disputes and unexpected shortages
or increases in the costs of consumables, spare parts, plant and equipment.
(ii) Environmental Risks
The operations and proposed activities of the Group are subject to the laws and regulations of Australia, the
USA and the Republic of Fiji concerning the environment. As with most exploration projects and mining
operations, the Group’s activities are expected to have an impact on the environment, particularly if
advanced exploration or mine development proceeds. It is the Group’s intention to conduct its activities to
the highest standard of environmental obligation, including compliance with all environmental laws.
(iii)
Economic
General economic conditions, movements in interest and inflation rates and currency exchange rates may
have an adverse effect on the Group’s exploration, development and production activities, as well as on its
ability to fund those activities.
6 | P a g e
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
(iv) Market conditions
general economic outlook;
introduction of tax reform or other new legislation;
interest rates and inflation rates;
Share market conditions may affect the value of the Company’s quoted securities regardless of the
Company’s operating performance. Share market conditions are affected by many factors such as:
i.
ii.
iii.
iv. Commodity prices;
v.
vi.
vii. terrorism or other hostilities.
changes in investor sentiment toward particular market sectors;
the demand for, and supply of, capital; and
The market price of securities can fall as well as rise and may be subject to varied and unpredictable
influences on the market for equities in general and resource exploration stocks in particular. Neither the
Company nor the Directors warrant the future performance of the Company or any return on an investment
in the Company.
(v) Additional requirements for capital
The Company’s capital requirements depend on numerous factors. Depending on the Company’s ability to
generate income, the Company will require further financing. Any additional equity financing will dilute
shareholdings, and debt financing, if available, may involve restrictions on financing and operating activities.
If the Company is unable to obtain additional financing as needed, it may be required to reduce the scope of
its operations and scale back its exploration programmes as the case may be. There is however no guarantee
that the Company will be able to secure any additional funding or be able to secure funding on terms
favourable to the Company.
8. SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There have been no significant changes in the state of affairs of the Company during the year ended 30 June
2020.
9. AFTER BALANCE SHEET DATE EVENTS
The impact of COVID-19 pandemic is ongoing. Management is closely monitoring the evolution of this
pandemic and the response of the governments, particularly restrictions in place to contain this virus and
how this will impact the Group and the economy, as a whole.
The Group has continued to operate in accordance with its plans up to the date of this report and
management believes it will continue to do so even though the extent of the impact COVID-19 may have on
its future liquidity, financial performance and position and operations is uncertain and cannot be reasonably
estimated at the date these financial statements were issued.
No other matter or event has arisen since 30 June 2020 that would be likely to materially affect the
operations of the Group, or the state of affairs of the Company not otherwise as disclosed in the Group’s
financial report.
10. ENVIRONMENTAL ISSUES
The Group needs to comply with environmental regulations at the sites where it has exploration activities.
The Board is not aware of any breach of environmental requirements as they apply to the Group.
7 | P a g e
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
11. REMUNERATION REPORT (Audited)
The Board of Dateline Resources Limited is responsible for determining and reviewing the remuneration of
the Directors of the Company, within parameters approved by shareholders. No performance hurdles have
been imposed so far, due to the size of the Group and the structure of the remuneration in respect of the
non-executive Directors. Remuneration is not related to the company’s financial performance. Accounting
and administration services were provided by consultants at reasonable commercial rates.
The Company's Key Management Personnel comprise all of the Directors and the Company Secretary.
Company Secretarial services were provided by Mr. J Smith.
Remuneration of executives and consultants, whenever appointed, is determined by market conditions and
is not linked to the Group’s performance. There are no service agreements in place relating to Directors' fees
paid. No equity based payments or other benefits were paid to Directors or consultants during the year
under review; no shares or options were issued by way of remuneration.
Directors
Position
Duration of Appointment
Mark Johnson
Non-Executive Chairman
Appointed 22 April 2013
Stephen Baghdadi
Managing Director
Appointed 4 July 2014
Gregory Hall
Non-Executive Director
Appointed 19 January 2015
Tony Ferguson
Non Executive Director
Appointed 29 August 2019
Details of remuneration of the KMP of Dateline Resources Limited are shown below:
Mr Johnson
Mr Johnson
Mr Baghdadi
Mr Baghdadi
Mr Hall
Mr Hall
Mr Ferguson
Mr Ferguson
Mr Dovaston
Mr Dovaston
Mr Smith
Position
Director
Consultant
Director
Consultant
Director
Consultant
Director
Consultant
Director
Consultant
Company Secretary
Total
2020
$
-
-
-
375,000
-
-
-
-
-
-
66,000
441,000
2019
$
-
-
-
60,000
-
-
-
-
-
100,000
66,000
226,000
None of the current Directors have received Director’s fees from the Company since their appointment.
Dateline Resources Limited, as an ASX listed company, has produced the Remuneration Report in
accordance with Section 300A of the Corporations Act 2001.
8 | P a g e
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
Key management personnel holdings
(i) Option holdings of Key Management Personnel
There are no options held by key management personnel.
(ii) Shareholdings
Details of shares held directly, indirectly or beneficially by key management personnel and their related
parties at any time during the financial year ended 30 June 2020 are set out below:
Company Directors
and Related Parties
Mr Johnson
Mr Baghdadi
Mr Hall
Mr Ferguson
Opening
Balance
1,597,434,637
81,806,866
52,499,887
-
1,731,741,390
Received as
Remuneration
-
-
-
-
-
Exercise
of Options
-
-
-
-
-
Net Change
Other
Closing
Balance
- 1,597,434,637
81,806,866
-
52,499,887
-
175,000,000
175,000,000
175,000,000 1,906,741,390
Details of shares held directly, indirectly or beneficially by key management personnel and their related
parties at any time during the financial year ended 30 June 2019 are set out below:
Company Directors
and Related Parties
Mr Johnson
Mr Baghdadi
Mr Hall
Opening
Balance
75,103,427
618,806
9,999,887
85,722,120
Received as
Remuneration
-
-
-
-
Exercise
of Options
Net Change
Other
Closing
Balance
- 1,522,331,210 1,597,434,637
81,806,866
-
-
52,499,887
- 1,646,019,270 1,731,741,390
81,188,060
42,500,000
The adoption of the Remuneration Report for the financial year ended 30 June 2019 was put to the
shareholders of the Company at the Annual General Meeting held on 14 November 2019. The resolution
was passed by a poll of shareholders without amendment. The Company did not receive any specific
feedback at the AGM or throughout the year on its remuneration practices.
End of remuneration report.
9 | P a g e
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2020
12. OPTIONS
At the date of this report, there were 10,000,000 unlisted options as depicted below:
Number
10,000,000
Exercise
Price
$0.0250
Expiry Date
31 Dec 2020
35,000,000 options with an exercise price of $0.0398 expired on 31 October, 2019.
13. PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party, for
the purposes of taking responsibility on behalf of the Group for all or part of those proceedings.
14. INDEMNIFICATION OF OFFICERS AND AUDITORS
During the financial year no premium was paid to insure Directors against claims while acting as a
Director. No indemnity has been granted to the Auditor of the Company.
15. NON-AUDIT SERVICES
There were no non-audit services provided by the Group’s auditors during the financial year.
16. EXTENSION OF ENGAGEMENT APPOINTMENT OF AUDIT PARTNER
In accordance with section 214DAA of the Corporations Act 2001 (“the Act”) the Board of Dateline
Resources Limited has granted approval for Mr M D Muller of HLB Mann Judd to play a significant role in
the audit of Dateline Resources Limited for up to an additional two successive financial years to 30
June 2022.
Approval has been granted as the Dateline Resources Limited Board is satisfied that retaining HLB
Mann Judd will maintain the quality of the audit provided to the company, and will not give rise to a
conflict of interest situation (as defined in section 324CD of the Act). Reasons supporting this decision
include:
• Dateline Resources Limited will retain the right to reassess the appointment at any time;
• HLB Mann Judd has experienced and appropriately qualified staff and registered auditors
available to undertake the audit of Dateline Resources Limited;
• HLB Mann Judd does not provide any services to Dateline Resources Limited other
than audit and tax compliance services;
• The existing independence and service metrics put in place by HLB Mann Judd and Dateline
Resources Limited are sufficient to ensure that auditor independence will not be diminished by
such an extension.
17. LEAD AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration as required under section 307C of the Corporations Act 2001 for
the financial year ended 30 June 2020 has been received and can be found on page 11.
Signed in accordance with a resolution of the Board of Directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
Mr Mark Johnson
Non-Executive Chairman
30 October 2020
10 | P a g e
To the directors of Dateline Resources Limited:
As lead auditor for the audit of the consolidated financial report of Dateline Resources Limited for the year
ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have been no
contraventions of:
(a)
the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit;
and
(b)
any applicable code of professional conduct in relation to the audit.
This declaration is in relation to Dateline Resources Limited and the entities it controlled during the period.
Sydney, NSW
30 October 2020
M D Muller
Director
11 | P a g e
DATELINE RESOURCES LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Note
30-Jun-20
$
30-Jun-19
$
Continuing operations
Interest income
Revenue from operations
Other income
Unrealised exchange gain/(loss)
Interest expense
Employee costs
Mining and exploration expenses
Depreciation expense
Administration expenses
Profit/(Loss) from continuing operations before income tax
Income tax expense
Profit/(loss) from continuing operations after income tax
4
5
6
7
Other comprehensive profit/(loss)
Items that be reclassified subsequently to profit or loss:
Foreign Currency Translation Reserve
Total comprehensive profit/(loss) for the period
Profit/(loss) for the year is attributable to:
Owners of the Company
Total comprehensive profit/(loss) for the year
attributable to:
Owners of the Company
18,490
5,629
14,853
(73,323)
(771,189)
(308,537)
(554,989)
(400,612)
(1,772,238)
(3,841,916)
-
1,676
66,085
-
289,372
(1,117,511)
(67,980)
(297,141)
-
(2,078,782)
(3,204,281)
-
(3,841,916)
(3,204,281)
(15,721)
(3,857,637)
(595,338)
(3,799,619)
(3,841,916)
(3,841,916)
(3,204,281)
(3,204,281)
(3,857,637)
(3,857,637)
(3,799,619)
(3,799,619)
Cents
Cents
Profit/(loss) per share from continuing operations
attributable to the ordinary equity holders of the Company:
Basic and diluted profit/(loss) per share – cents per share
17
(0.05)
(0.10)
This Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with
the accompanying notes
12 | P a g e
DATELINE RESOURCES LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Current Assets
Cash & cash equivalents
Trade & other receivables
Financial assets
Total Current Assets
Non-Current Assets
Plant & equipment land & buildings
Exploration & evaluation expenditure
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Trade & other payables
Loans from related parties
Total Current Liabilities
Non Current Liabilities
Trade & other payables
Loans from related parties
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Note
30-Jun-20
$
30-Jun-19
$
8
9
10
11
12
13
14
13
14
158,362
26,320
185,163
369,845
16,694,316
8,357,959
25,052,275
25,422,120
338,432
1,107,089
1,445,521
5,959,526
1,456,727
7,416,253
8,861,774
4,816,924
208,635
11,970
5,037,529
15,855,709
7,035,316
22,891,025
27,928,554
338,658
2,228,591
2,567,249
5,092,570
-
5,092,570
7,659,819
16,560,346
20,268,735
Equity attributable to the equity holders of the Company
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
15(a)
16
34,646,621
(449,673)
(17,636,602)
16,560,346
34,497,373
(318,613)
(13,910,025)
20,268,735
This Consolidated Statement of Financial Position is to be read in conjunction with the accompanying notes
13 | P a g e
DATELINE RESOURCES LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Issued
Capital
Shares &
Options to
be Issued
Accumulated
Losses
Option
Valuation
Reserve
Foreign
Currency
Reserve
TOTAL
$
$
$
$
$
$
Balance as at 1 July, 2019
34,497,373
Total profit / (loss)
Total other comprehensive income
Total comprehensive loss for the year
Transactions with owners in their
capacity as owners :
Options expired
Contributions of equity
Balance as at 30th June 2020
-
-
-
-
149,248
34,646,621
-
-
-
-
-
-
-
(13,910,025)
327,169
(645,782) 20,268,735
(3,841,916)
-
(3,841,916)
-
-
-
-
(3,841,916)
(15,721)
(15,721)
(15,721)
(3,857,637)
115,339
(115,339)
-
-
-
-
-
149,248
(17,636,602)
211,830
(661,503) 16,560,346
Issued
Capital
$
Shares &
Options to
be Issued
Accumulated
Losses
Option
Valuation
Reserve
Foreign
Currency
Reserve
$
$
$
$
TOTAL
$
Balance as at 1 July, 2018
19,528,784
275,830
(10,751,448)
161,043
(50,444)
9,163,765
Total profit / (loss)
Total other comprehensive income
Total comprehensive loss for the year
Transactions with owners in their
capacity as owners :
Options expired
-
-
-
-
-
-
-
-
(3,204,281)
-
(3,204,281)
-
-
-
-
(3,204,281)
(595,338)
(595,338)
(595,338)
(3,799,619)
Contributions of equity
14,968,589
(275,830)
-
211,830
45,704
(45,704)
-
-
-
14,904,589
Balance as at 30 June, 2019
34,497,373
-
(13,910,025)
327,169
(645,782) 20,268,735
This Consolidated Statement of Changes in Equity is to be read in conjunction with the accompanying notes
14 | P a g e
DATELINE RESOURCES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Cash flows used in operating activities
Payment to suppliers and employees
Revenue from operations
Interest received
Note
30-Jun-20
$
30-Jun-19
$
(2,172,957)
5,629
33,343
(2,184,106)
66,085
1,676
Net cash flows used in operating activities
8(a)
(2,133,985)
(2,116,345)
Cash flows used in investing activities
Payment for property, plant & equipment
Deposits paid
Payment for exploration & evaluation expenditure
(1,239,219)
(173,193)
(1,173,395)
(2,673,076)
(702,803)
Net cash flows (used in) provided by investing activities
(2,585,807)
(3,375,879)
Cash flows from financing activities
Repayment of loans
Proceeds from issue of shares
Proceeds from borrowings
Net cash flows from financing activities
(321,232)
-
382,462
-
7,468,299
2,749,001
382,462
10,217,300
Net increase/(decrease) in cash and cash equivalents
(4,337,330)
4,725,076
Cash and cash equivalents at beginning of period
4,816,924
91,848
Cash and cash equivalents at end of period
8
158,362
4,816,924
This Consolidated Statement of Cash Flows is to be read in conjunction with the accompanying notes
15 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
1.
REPORTING ENTITY
The financial report includes financial statements for the consolidated entity consisting of Dateline Resources
Limited (the “Company”) and the entities it controlled during the year (“the Group”). The Company is a
company limited by shares incorporated in Australia whose shares are publicly traded on the Australian
Securities Exchange Limited (“ASX”). The Company is a for-profit entity for the purposes of preparing the
financial statements. The address of its registered office and principal place of business is disclosed in the
Corporate Directory of the annual report.
The nature of the operations and principal activities of the Group are described in the Directors’ Report.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently in these financial statements.
(a)
Statement of compliance
The financial report is a general purpose financial report which has been prepared in accordance with
Australian Accounting Standards (AASBs) (including Australian Interpretations) adopted by the Australian
Accounting Standards Board (AASB) and the Corporations Act 2001. The financial report of the Group also
complies with International Financial Reporting Standards (IFRSs) and interpretations adopted by the
International Accounting Standards Board.
The financial statements were approved by the Board of Directors on 30 September 2020.
(b)
Basis of measurement
The financial statements have been prepared on the historical cost basis unless otherwise stated.
(c)
Principles of consolidation
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group
is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to the group. They are deconsolidated from the date that
control ceases. The acquisition method of accounting is used to account for business combinations by the
Group
Intercompany transactions, balances and unrealised gains on transactions between group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment
of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the group.
(d)
Foreign currency transactions
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency
of the primary economic environment in which the entity operates (“the functional currency”).
The consolidated financial statements are presented in Australian dollars, which is Dateline Resources
Limited, Dateline Fiji Pty Limited and Gunnison Gold Pty Limited’s functional and presentation currency.
16 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at
year end exchange rates are generally recognised in profit or loss. They are deferred in equity if they relate
to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net
investment in a foreign operation. Foreign exchange gains and losses that relate to borrowings are presented
in the income statement, within finance costs. All other foreign exchange gains and losses are presented in
the income statement on a net basis within other income or other expenses.
(e)
Revenue recognition
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is
expected to be entitled in exchange for transferring goods or services to a customer. For each contract with
a customer, the consolidated entity: identifies the contract with a customer; identifies the performance
obligations in the contract; determines the transaction price which takes into account estimates of variable
consideration and the time value of money; allocates the transaction price to the separate performance
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be
delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that
depicts the transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer
such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other
contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount'
method. The measurement of variable consideration is subject to a constraining principle whereby revenue
will only be recognised to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty
associated with the variable consideration is subsequently resolved. Amounts received that are subject to
the constraining principle are recognised as a refund liability.
Sale of goods
Sale of goods is recognised at the point of sale, which is where the customer has taken delivery of the goods,
the risks and rewards are transferred to the customer and there is a valid sales contract. Amounts disclosed
as revenue are net of sales returns and trade discounts.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
17 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(f)
New accounting standards and interpretations
The Group has applied all new, revised or amending Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board that are mandatory for the current reporting period. These and
together with other amending Accounting Standards and Interpretations commencing from 1 July 2019 did
not result in any material adjustments to the amounts recognised or disclosures in the financial report.
(g)
Going concern
The financial report has been prepared on a going concern basis, which contemplates the continuity of
normal business activities and the realisation of assets and liabilities in the normal course of business.
During the year, the consolidated entity incurred a net loss of $3,841,916 (2019: $3,204,281 loss) a net cash
outflow of $4,658,562 (2019: $4,725,076 inflow) and net cash out flow from operations of $2,133,985 (2019:
$2,116,345). As at 30 June 2020, the consolidated entity also had a working capital deficiency of $1,075,676
(2019: $2,470,280 surplus).
The ability of the Group to continue as a going concern is dependent upon the Group being able to generate
sufficient funds to satisfy exploration commitments and working capital requirements. The directors are in
the process of taking the following measures which have been designed to ensure that the going concern
assumption remains appropriate and that the Group is able to settle liabilities and commitments as and when
they are due:
- Commence mining at Gunnison, as soon as possible;
- Commence milling at Sooner Lucky Strike as soon as possible;
-
Seeking other funding opportunities through various transactions including future fundraising including
mergers or joint ventures;
- By issuing equity to settle future liabilities, if appropriate; and
- Adopting all appropriate measures to ensure that the cashflows remain sufficient to ensure that it
remains a going concern.
The directors believe that the going concern basis for the preparation of the financial report of the Group is
appropriate. The directors note that should the Group be unsuccessful in implementing the above mentioned
measures, there is material uncertainty that the Group may be able to realise its assets or discharge its
liabilities in the normal ordinary course of business and at the amounts stated in the financial report.
Accordingly, there is a material uncertainty that may cast doubt on the Group’s ability to continue as a going
concern. No adjustments have been made in relation to the recoverability and classification of recorded
assets amounts and classification of liabilities that might be necessary should the Group not continue as a
going concern.
(h)
Reverse Acquisition Accounting
Dateline Resources Limited is listed on the Australian Securities Exchange. Dateline Resources Limited
completed the legal acquisition of Dateline Fiji Pty Limited on 3rd October 2013.
Under the principles of AASB 3 Business Combinations Dateline Fiji Pty Limited was deemed to be the acquirer
for accounting purposes. Therefore, the transaction has been accounted for as a reverse acquisition under
AASB3. Accordingly, the consolidated financial statements of Dateline Resources Limited have been prepared
as a continuation of the consolidated financial statements of Dateline Fiji Pty Limited.
(i)
Income tax
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes.
18 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Deferred income tax is recognised except where the deferred income tax liability arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit; and in respect of taxable temporary
differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred
tax assets are only recognised to the extent that it is probable that the temporary differences will not reverse
in the foreseeable future and the group is able to control the timing of the reversal of the temporary
differences.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred income tax asset to be utilised.
Deferred tax assets and deferred tax liabilities shall be offset only if:
(i)
there is a legally enforceable right to set-off current tax assets against current tax liabilities; and
(ii) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either:
(a) the same taxable entity; or
(b) different taxable entities which intend either to settle current tax liabilities and assets on a net
basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the
year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantially enacted at the balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the Statement
of Profit or Loss and Other Comprehensive Income.
(j)
Other taxes
Revenues, expenses, assets and liabilities are recognised net of the amount of GST except where the GST
incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case
the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as
applicable; and receivables and payables are stated with amounts of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the Statement of Financial Position.
Commitments or contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
(k)
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk or changes in value, and bank overdrafts.
(l)
Plant and equipment
Owned assets
Items of plant and equipment are stated at cost less accumulated depreciation (see below) and any
impairment losses.
19 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-
constructed assets includes the cost of materials and direct labour, any other costs directly attributable to
bringing the asset to a work condition for its intended use, and the costs of dismantling and removing the
items and restoring the site on which they are located. Purchased software that is integral to the functionality
of the related equipment is capitalised as part of that equipment.
When parts of an item of plant and equipment have different useful lives, they are accounted for as separate
items (major components).
Subsequent costs
The Group recognises in the carrying amount of an item of plant and equipment the cost of replacing part of
such an item when that cost is incurred if it is probable that the future economic benefits embodied within
the item will flow to the Group and the cost of the item can be measured reliably. All other costs are
recognised in the profit or loss as an expense as incurred.
Depreciation
Depreciation is charged to the profit or loss using a straight line method over the estimated useful lives of
each part of an item of plant and equipment.
The estimated useful lives in the current financial year are as follows:
-
Plant and equipment 3 years.
-
Office equipment 3 years.
- Mining equipment 10 years.
The residual value, the useful life and the depreciation method applied to an asset are reassessed at least
annually.
(m)
Exploration and evaluation
Exploration costs are accounted for under the "Area of Interest" method, whereby costs are carried forward
provided that rights to tenure of the area of interest are current and either there is a reasonable probability
of recoupment through successful development and exploitation or by their sale, or exploration activities in
the area have not reached a stage which permits a reasonable assessment of the existence or otherwise of
economically recoverable mineral reserves and active and significant operations in, or in relation to, the area
are continuing. The ultimate recoupment of costs carried forward in respect of areas of interest still in the
exploration or evaluation phases is dependent upon successful development and commercial exploitation,
or alternatively, sale of the respective areas. Exploration & Evaluation Assets are assessed for impairment
when facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
(n)
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when the
Group becomes obliged to make future payments in respect of the purchase of these goods and services.
(o)
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
(p)
Earnings per share
Basic earnings per share
Basic earnings per share is determined by dividing net profit or loss after income tax attributable to members
of the Group, excluding any costs of servicing equity other than ordinary shares, by the weighted average
20 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary
shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares.
(q)
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets
are subsequently measured at either amortised cost or fair value depending on their classification.
Classification is determined based on both the business model within which such assets are held and the
contractual cash flow characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been
transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership.
When there is no reasonable expectation of recovering part or all of a financial asset, it's carrying value is
written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of
making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair
value movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them
as such upon initial recognition.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are
either measured at amortised cost or fair value through other comprehensive income. The measurement
of the loss allowance depends upon the consolidated entity's assessment at the end of each reporting
period as to whether the financial instrument's credit risk has increased significantly since initial
recognition, based on reasonable and supportable information that is available, without undue cost or
effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-
month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime
expected credit losses that is attributable to a default event that is possible within the next 12 months.
Where a financial asset has become credit impaired or where it is determined that credit risk has increased
significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of
expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit
or loss.
21 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(r)
Critical accounting estimates and judgments
The preparation of financial statements requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. The Directors evaluate estimates and judgments incorporated into the
financial report based on historical knowledge and best available current information. Estimates assume a
reasonable expectation of future events and are based on current trends and economic data, obtained
both externally and within the Group. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgments in
applying accounting policies that have the most significant effect on the amount recognised in the financial
statements are described in the following notes:
(i)
Exploration & Evaluation Expenditure
The Group’s accounting policy for exploration and evaluation is set out in Note 2(m) above. If, after having
capitalised expenditure under this policy, the Directors conclude that the Group is unlikely to recover the
expenditure by future exploration or sale, then the relevant capitalised amount will be written off to the
Statement of Profit or Loss and Other Comprehensive Income.
(ii) Discounting
The Group has discounted non-interest bearing non-current payables to the vendors of acquired
subsidiaries, refer note 13. This discount rate is reviewed annually.
(s)
New Accounting standards and interpretations not yet adopted
Certain new accounting standards and interpretations have been published that are not mandatory for the
half-year reporting period. The Director’s assessment of the impact of these new standards and
interpretations (to the extent relevant to the Group) is that they will have no material impact.
22 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
SEGMENT INFORMATION
3.
AASB 8 requires operating segments to be identified on the basis of internal reports about components of
the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources
to the segment and to assess its performance.
The segments are consistent with the internal management reporting information that is regularly
reviewed by the chief operating decision maker, being the Board of Directors.
The reportable segments are based on aggregated operating segments determined by the similarity of
economic characteristics, the nature of the activities and the regulatory environment in which those
segments operate.
Management has identified three reportable operating segments based on the three principal locations of
its projects – Australia, USA and Fiji. Unallocated results, assets and liabilities represent corporate amounts
that are not core to the reportable segments. Segment assets include the costs to acquire tenements and
the capitalised exploration costs of those tenements.
30 June 2020
Australia
USA
Revenues
Segment Result
Total Segment Assets
Total Segment Liabilities
A$
A$
17,480
(1,796,533)
39,592,597
9,626,793
3,629,403
1,562,528
19,801,515
303,339
Fiji
A$
Consolidation
Entries
TOTAL
A$
A$
1,010
1,010
4,453,345
5,206,625
(3,608,921)
(3,608,921)
(38,425,337)
(6,274,983)
38,972
(3,841,916)
25,422,120
8,861,774
30 June 2019
A$
A$
A$
A$
A$
Revenues
Segment Result
Total Segment Assets
Total Segment Liabilities
1,676
2,253,929
39,976,212
(8,363,122)
66,085
950,352
18,110,866
(15,167,538)
-
-
4,323,974
(5,069,742)
-
-
(34,482,498)
20,940,583
67,761
3,204,281
27,928,554
(7,659,819)
23 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
4. REVENUE FROM OPERATIONS
30-Jun-20
30-Jun-19
Sales
$
5,629
5,629
$
66,085
66,085
5. OTHER INCOME
30-Jun-20
30-Jun-19
Other Income
6. ADMINISTRATION EXPENSES
Consulting and corporate expenses
Compliance and regulatory expenses
7.
INCOME TAX EXPENSE
(a) Income tax expense
Current tax
Deferred tax
(b) Numerical reconciliation of income tax expense to
prima facie tax payable
Loss from continuing operations before income tax expense
Tax at the Australian tax rate of 27.5% (2019 - 30%)
Tax effects of amounts which are not deductible (taxable)
in calculating taxable income:
Temporary difference not brought to account
Income tax expense
(c) Tax losses
$
14,853
14,853
30-Jun-20
$
1,716,694
55,544
1,772,238
$
-
-
30-Jun-19
$
2,026,442
52,340
2,078,782
30-Jun-20
$
30-Jun-19
$
-
-
-
-
-
-
(3,841,916)
(1,056,527)
(3,204,281)
(961,284)
1,056,527
-
961,284
-
Unused tax losses *
5,192,651
* The entities in the group have not formed a tax consolidated group and the unused tax losses
consists of tax losses from entities in the group calculated on a stand alone basis.
6,300,857
24 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
8
CASH & CASH EQUIVALENTS
Cash at bank and in hand
30-Jun-20
$
158,362
158,362
30-Jun-19
$
4,816,924
4,816,924
Reconciliation of net profit/(loss) after tax to net cash flows used in operating activities
8a Net profit / (loss) after income tax
Adjustments for :
Depreciation
Change in assets and liabilities
(Increase)/decrease in trade and other receivables
Increase/(decrease) in trade and other payables
Increase/(decrease) in borrowings
Net cash flows used in operating activities
9
TRADE & OTHER RECEIVABLES
Other receivables
30-Jun-20
$
30-Jun-19
$
(3,841,916)
(3,204,281)
400,612
-
182,311
668,552
456,456
(2,133,985)
30-Jun-20
$
26,320
26,320
(189,201)
159,627
1,117,510
(2,116,345)
30-Jun-19
$
208,635
208,635
(a) Trade receivables past due but not impaired
There were no trade receivables past due but not impaired.
(b) Fair value and credit risk
Due to the short-term nature of these receivables, their carrying amount is assumed to approximate their
fair value.
The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivables
mentioned above. Refer to Note 18 for more information on the risk management policy of the Group and
the credit quality of the Group’s trade receivables.
10 FINANCIAL ASSETS
ANZ term deposits
Exploration deposits
30-Jun-20
$
30-Jun-19
$
13,267
171,896
185,163
-
11,970
11,970
ANZ term deposits are held as security for bonds required by the Fijian Mineral and Resources Department
in regard to the tenements that Matai Holdings (Fiji) Limited holds at Udu Point.
25 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
11 PLANT & EQUIPMENT LAND & BUILDINGS
30-Jun-20
$
30-Jun-19
$
Carrying amount of plant & equipment land & buildings
16,694,316
15,855,709
(a) Plant and Equipment
At Cost
Less accumulated depreciation
Total plant and equipment
Movement during the year
Balance at the beginning of the year
Balance at the end of the year
(b) Office Equipment
At Cost
Less accumulated depreciation
Total office equipment
Movement during the year
Balance at the beginning of the year
Depreciation expense
Balance at the end of the year
(c) Mining Plant & equipment
At Cost
Less accumulated depreciation
Total mining plant & equipment
Movement during the year
Balance at the beginning of the year
Additions
Depreciation expense
Balance at the end of the year
(d) Mine & Mill Development
At Cost
Total Mine and Mill Development
Movement during the year
Balance at the beginning of the year
Additions
Balance at the end of the year
53,682
(53,682)
-
-
-
59,267
(55,139)
4,128
7,494
(3,366)
4,128
4,196,275
(382,013)
3,814,262
3,697,898
498,377
(382,013)
3,814,262
5,375,598
5,375,598
4,737,436
638,162
5,375,598
53,682
(53,682)
-
-
-
59,267
(51,773)
7,494
7,494
-
7,494
3,697,898
-
3,697,898
3,152,074
545,824
-
3,697,898
4,737,436
4,737,436
3,861,853
875,583
4,737,436
26 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(e) Mining Land & Buildings
(f)
At Cost
Total Mining land and buildings
Movement during the year
Balance at the beginning of the year
Additions
Balance at the end of the year
Furniture & Fixtures
At Cost
Less accumulated depreciation
Total Furnitue & Fixtures
Movement during the year
Balance at the beginning of the year
Additions
Depreciation expense
Balance at the end of the year
(g) Motor Vehicles
At Cost
Less accumulated depreciation
Total Furnitue & Fixtures
Movement during the year
Balance at the beginning of the year
Additions
Depreciation expense
Balance at the end of the year
30-Jun-20
$
30-Jun-19
$
7,425,963
7,425,963
7,412,881
13,082
7,425,963
10,518
(1,600)
8,918
-
10,518
(1,600)
8,918
79,079
(13,632)
65,447
-
79,079
(13,632)
65,447
7,412,881
7,412,881
5,412,284
2,000,597
7,412,881
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12 EXPLORATION & EVALUATION EXPENDITURE
Carrying amount of exploration expenditure
Movement during the year
Balance at the beginning of the year
Expenditure incurred during the year
Balance at the end of the year
8,357,959
7,035,316
7,035,316
1,322,643
8,357,959
6,305,886
729,430
7,035,316
Exploration and evaluation expenditure capitalised relates to expenditure incurred and capitalised for the
Udu Polymetallic Exploration Project in Fiji and for the Gold Links Project located in Colorado USA. This
expenditure has been accounted for in accordance with AASB 6 Exploration for and Evaluation of Mineral
Resources. The fair value of the tenements acquired on acquisition of Gunnison Gold Pty Ltd have also been
accounted for here.
The ultimate recoupment of costs carried forward for exploration expenditure is dependent on the successful
development and commercial exploitation, or alternatively, the sale of the respective area of interest and
also dependent on the Group’s ability to renew the expired tenements without exception.
27 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
13 TRADE & OTHER PAYABLES
Current
Trade and sundry creditors
Accruals
30-Jun-20
$
30-Jun-19
$
310,248
28,184
338,432
310,033
28,625
338,658
Current trade & other payables are non-interest bearing and are settled on 30 day terms.
Non-Current
Amount owed to the vendors of CRG Mining LLC
Amount owed to the vendors of ALSH LLC
PPP Loan Liability
Other loans
2,866,700
2,866,700
182,462
43,664
5,959,526
2,546,285
2,546,285
-
-
5,092,570
The amounts owed to the vendors of CRG Mining LLC and ASL LLC with a carrying value of $5,733,400
(June2019 : $5,092,570) were arrived at after applying an annual discount of 10% (2019:10%) to future
payments with a total face value of US$5 million, are all payable on 31 December 2022.
The PPP Loan liability (Paycheck Protection Program) was created by the SBA (Small Business Administration
- a USA Federal agency) is designed to provide direct incentive to USA business to keep their workers on the
payroll. The SBA will forgive the loan if all employee retention criteria are met and the funds are used for
eligible expenses. The PPP loan was granted to CRG Mining LLC and all retention criteria for loan forgiveness
were met in September 2020. The loan will be forgiven upon application to the SBA.
14 LOANS FROM RELATED PARTIES
Current
Amounts owed to Southern Cross Resources NL
Amounts owed to Mr. Mark Johnson
Total current loans from shareholders
Non-Current
Amounts owed to Mr. Mark Johnson
30-Jun-20
$
30-Jun-19
$
1,107,089
-
1,107,089
1,456,727
1,456,727
1,133,052
1,095,539
2,228,591
-
-
The amount owed to Southern Cross Exploration N.L. of $1,107,089 is made up of:
• $275,359 (June 2019 $398,242) which are expenses paid by Southern Cross Exploration N.L. for and
on behalf of the Company. This amount is unsecured and interest free.
• $831,730 (June 2019 $734,810) which represents unsecured loans including interest. Details of these
loans are included in note 20(ii).
The amount owed to Mr. Johnson of $1,456,727 (June 2019 $1,095,539) represents unsecured loans
including interest. Details of these loans are included in note 20(ii). The repayment date of this loan was
extended during the year to 31 March 2022.
28 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
15. CONTRIBUTED EQUITY
(a) Share Capital
Ordinary Capital - Number of Shares
Ordinary Capital - Paid Up
(b) Movements in Share Capital
1 July 2019
15 Nov 2019
30 June 2020
Opening Balance
Issue of shares
Closing Balance
Consolidated
30-Jun-20
30-Jun-19
8,210,078,076
$34,646,621
8,135,453,910
$34,497,373
Consolidated
No. of Shares
8,135,453,910
74,624,166
8,210,078,076
$
34,497,373
149,248
34,646,621
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company
in proportion to the number of and amounts paid on the shares held. At shareholders meetings, each
ordinary share is entitled to one vote per share when a poll is called, otherwise each shareholder has one
vote on a show of hands.
At 30 June 2020 there were 8,210,078,076 (2019 : 8,135,459,910) fully paid ordinary shares on issue, all of
which are freely tradeable. There are no preference shares on issue.
(c) Capital Management
The Group’s capital includes share capital, reserves and accumulated losses. The Group’s objectives when
managing capital are to safeguard the Group’s ability to continue as a going concern, so that it can continue
to provide returns for shareholders and benefits for other stakeholders. The Group manages the capital
structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics
of the underlying assets. In order to achieve this, the Group may issue new shares in order to meet its
financial obligations. There are no externally imposed capital requirements.
16 RESERVES
Option Valuation Reserve
Foreign Currency Translation Reserve
30-Jun-20
$
211,830
(661,503)
(449,673)
30-Jun-19
$
327,169
(645,782)
(318,613)
Foreign Currency Translation Reserve
The foreign currency translation reserve records exchange differences arising on
translation of foreign controlled subsidiaries.
Option Valuation Reserve
10,000,000 unlisted options valued at $211,830 were issued on 10 July 2018.
35,000,000 unlisted options valued at $115,339 lapsed during the year.
29 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
17 EARNINGS PER SHARE
The calculation of basic loss per share at 30 June 2020 was based on the loss attributable to ordinary
shareholders of $3,841,916 (2019: loss $3,204,281) and a weighted average number of ordinary shares
outstanding during the financial year ended 30 June 2020 of 8,181,941,095 (2019: 3,230,860,674) calculated
as follows:
(a) Basic profit/(loss) per share
30-Jun-20
30-Jun-19
Net profit/(loss) per share attributable to ordinary
equity holders of the Company ($)
Weighted average number of ordinary shares for basis per
Continuing operations
- Basic profit/(loss) per share (cents)
($3,841,916)
($3,204,281)
8,181,941,095
3,230,860,674
(0.0470)
0.0992
(b) Diluted profit/(loss) per share
Potential ordinary shareholders are not considered dilutive, thus diluted profit/(loss) per share
is the same as basic loss per share.
18 FINANCIAL RISK MANAGEMENT
The Group's principal financial instruments consist of deposits with banks, receivables, other
financial assets and payables. At the reporting date, the Group had the following mix of
financial assets and liabilities.
Financial Assets
Cash & cash equivalents
Trade & other receivables
Financial Assets
Financial Liabilities
Trade & other payables
Loans from related parties
Net exposure
Financial risk management
30-Jun-20
$
30-Jun-19
$
158,362
26,320
185,163
369,845
6,297,958
1,107,089
7,405,047
(7,035,202)
4,816,924
208,635
11,970
5,037,529
5,431,228
2,228,591
7,659,819
(2,622,290)
The main risks arising from the Group’s financial instruments are interest rate risk, credit risk, foreign
currency risk and liquidity risk. The Group uses different methods to measure and manage different types of
risks to which it is exposed. Primary responsibility for identification and control of financial risks rests with
the Board of Directors.
(a)
Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market
interest rates. The Group is exposed to interest rate risk as it invests funds at both fixed and floating interest
rates. The risk is managed by maintaining an appropriate mix between fixed and floating rate deposits.
30 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Financial Assets
Cash & cash equivalents
30-Jun-20
$
158,362
30-Jun-19
$
4,816,924
Sensitivity
Based on the cash and cash equivalent held on 30 June 2020, had the interest rate increased
by 1%, the group's post-tax loss would have been decreased by $1,583 and had the interest
rate decreased by 1% the group's post tax loss would have been increased by $1,583.
Based on the cash and cash equivalent held on 30 June 2019, had the interest rate increased
by 1%, the group's post-tax loss would have been decreased by $48,169 and had the interest
rate decreased by 1% the group's post tax loss would have been increased by $48,169.
(b)
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and
obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financing loss from
defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and
the aggregate value of transactions concluded is spread amongst approved counterparties.
The carrying amount of financial assets recorded in the financial statements, net of any provision for losses,
represents the Group’s maximum exposure to credit risk. All trade and other receivables are due within 30
days and none are past due.
(i) Cash and cash equivalents
The Group’s primary banker is Commonwealth Bank of Australia (2019 : Commonwealth Bank of Australia).
The Board considers the use of this financial institution, which has a short term rating of AA- from Standards
and Poors to be sufficient in the management of credit risk with regards to these funds.
Cash at Bank and short term banks deposits
Standard & Poors Rating : AA-
(ii) Trade & other receivables
30-Jun-20
$
30-Jun-19
$
158,362
4,816,924
While the Group has policies in place to ensure that transactions with third parties have an appropriate credit
history, the management of current and potential credit risk exposures is limited as far as is considered
commercially appropriate. Up to the date of this report, the Board has placed no requirement for collateral
on existing debtors.
(c)
Foreign currency risk
The group operates internationally and is exposed to foreign exchange risk arising from various currency
exposures, primarily with respect to the US and Fijian dollar. The group's exposure to foreign currency risk
at the end of the reporting period, expressed in Australian Dollars, was as follows:
Cash at Bank and short term bank deposits
Receivables
Payables
30-Jun-20
$
254,155
-
6,057,225
30-Jun-19
$
926,753
15,685
5,279,512
31 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Management has set up a policy requiring group companies to manage their foreign exchange risk against
their functional currency.
SENSITIVITY
At 30 June 2020, had the Australian dollar weakened by 10% against the US and Fijian dollar, with all other
variables being constant, the net assets of the group would have reduced by $644,786 (2019 $481,897) and
loss would have increased by $644,786 (2019 $481,897).
At 30 June 2020, had the Australian dollar strengthened by 10% against the US and Fijian dollar, with all other
variables being constant, the net assets of the group would have increased by $527,552 (2019 $394,279) and
loss would have reduced by $527,552 (2019 $394,279).
(d)
Liquidity risk management
Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with
financial liabilities.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an
appropriate liquidity risk management framework for the management of the Group’s short, medium and
long-term funding and liquidity management requirements.
The Group manages liquidity risk by continually monitoring cash reserves and cash flow forecasts to ensure
that financial commitments can be met as and when they fall due.
The terms of the group’s financial liabilities are detailed in note 13 and 14.
19
KEY MANAGEMENT PERSONNEL DISCLOSURES
(a) Key management personnel compensation
Compensation by category
Short term employee benefits
30-Jun-20
$
30-Jun-19
$
441,000
441,000
126,000
126,000
Information regarding individual Directors and Executive compensation and some equity instruments
disclosures as permitted by Corporations Regulation 2M.3.03 is provided in the remuneration report section
of the Directors’ report.
(b) Material contracts
(i)
Directors’ Deeds of Indemnity
With every Director appointment, the Group enters into a deed of indemnity, insurance and access with each
of its Directors. Under these deeds, the Group agrees to indemnify each Director to the extent permitted by
the Corporations Act 2001 against any liability arising as a result of the Director acting in the capacity as a
Director of the Group. The Group is also required to maintain insurance policies for the benefit of the
Directors and must also allow the Directors to inspect Group documents in certain circumstances.
(ii)
Loans to Directors
There were no loans made to Directors during the financial year 1 July 2019 to 30 June 2020.
32 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(iii)
Other Fees Paid to/accrued for Directors
Other than that provided in the remuneration section of the Directors’ report, there were no other fees
paid to Directors.
(iv)
Balances outstanding
As at 30 June 2020 the following amounts were unpaid to KMP and or Directors:
Mr Baghdadi
Mr Smith
20
RELATED PARTY DISCLOSURES
(i)
Key management personnel
30-Jun-20
$
121,000
-
30-Jun-19
$
32,500
5,500
Disclosures relating to directors and executives are set out in note 19 Key Management Personnel
Disclosures.
(ii) Transactions with related parties
a. As at 30 June 2020 there were loans outstanding from related parties as depicted in the table below.
Loan Date
18/09/2018
19/09/2018
24/09/2018
10/10/2018
12/10/2018
29/10/2018
14/11/2018
15/11/2018
TOTAL
Principal
$67,798
$110,529
$55,161
$108,566
$104,101
$54,439
$108,218
$86,542
$695,354
`
Interest
$14,406
$21,249
$10,625
$21,037
$20,187
$10,625
$21,249
$16,999
$136,376
The above loans are repayable on demand.
Loan from Mark Johnson as at :
Interest
$205,118
$2,806
$207,924
Loan Date
13/09/2018
27/05/2020
TOTAL
Principal
$1,048,803
$200,000
$1,248,803
30 Jun 2020
O/S
$82,204
$131,778
$65,786
$129,602
$124,287
$65,064
$129,467
$103,541
$831,730
30 Jun 2020
O/S
$1,253,921
$202,806
$1,456,727
Interest
Rate
15.06%
15.06%
15.06%
15.06%
15.06%
15.06%
15.06%
15.06%
Interest
Rate
15.06%
15.06%
Line
Fee
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
0.00%
During the year, the repayment date for the above loan from Mark Johnson
was extended to 31 March 2022.
33 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
(ii) Transactions with related parties
b. As at 30 June 2019 there were loans outstanding from related parties as depicted in the table below.
O/S
Interest
Principal
Loans from Southern Cross Exploration NL as at : 30 Jun 2019
Loan Date
18-09-18
19-09-18
24-09-18
10-10-18
12-10-18
29-10-18
14-11-18
15-11-18
TOTAL
$67,798
$110,529
$55,161
$108,566
$104,101
$54,439
$108,218
$86,542
$695,354
$71,966
$116,677
$58,235
$114,652
$109,941
$57,513
$114,366
$91,460
$734,810
$4,168
$6,148
$3,074
$6,086
$5,840
$3,074
$6,148
$4,918
$39,456
Interest
Rate
15.06%
15.06%
15.06%
15.06%
15.06%
15.06%
15.06%
15.06%
Line
Fee
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
Loans from Mark Johnson as at : 30 Jun 2019
Loan Date
13-09-18
TOTAL
Principal
Interest
O/S
$1,048,803
$1,048,803
$46,736
$46,736
$1,095,539
$1,095,539
Interest
Rate
15.06%
Line
Fee
5.0%
All of the above loans were repayable on demand.
(iii) Subsidiaries and associates
Name of subsidiary
Dateline Fiji Pty Limited
Matai Holdings (Fiji) Ltd
Golden Phoenix Resources Limited
Golden Phoenix Australia Pty Ltd
Gunnison Gold Pty Ltd
Fossil Creek Mines LLC
CRG Mining LLC
Saguache Mining LLC
SLV Minerals LLC
ALSH LLC
Sooner Lucky Strike Mine LLC
Country of
Incorporation
Australia
Fiji
Australia
Australia
Australia
USA
USA
USA
USA
USA
USA
Ownership
Interest (%)
30.6.20
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Ownership
Interest (%)
30.6.19
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
34 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
21. COMMITTMENTS
(a) Exploration & Evaluation Commitments
Within one year
After one year but not more than five years
After more than five years
Total minimum commitment
30-Jun-20
$
66,814
-
-
66,814
30-Jun-19
$
142,457
26,364
-
168,821
The commitments above are subject to mining expenditure. They relate to the exploration
tenements granted to, and under application by the Group.
22
SUBSEQUENT EVENTS
The impact of COVID-19 pandemic is ongoing. Management is closely monitoring the evolution of this
pandemic and the response of the governments, particularly restrictions in place to contain this virus and
how this will impact the Group and the economy, as a whole.
The Group has continued to operate in accordance with its plans up to the date of this report and
management believes it will continue to do so even though the extent of the impact COVID-19 may have on
its future liquidity, financial performance and position and operations is uncertain and cannot be reasonably
estimated at the date these financial statements were issued.
No other matter or event has arisen since 30 June 2020 that would be likely to materially affect the
operations of the Group, or the state of affairs of the Company not otherwise as disclosed in the Group’s
financial report.
23
CONTINGENT LIABILITIES
For the year ended 30 June 2020 and for the year ended 30 June 2019, the following contingent liabilities
existed.
There are contracted contingent liabilities in regard to Royalty Arrangements to the vendors of CRG Mining
LLC. (CRG). The vendors of CRG are entitled to receive royalty payments at a rate of US$50 for each ounce of
gold produced from any mining operations conducted on the acquired tenements up to a maximum of US$5
million (Maximum Amount). Regardless of production, an aggregate minimum amount of US$2.5 million will
be paid by 31 December 2022 which is included in the deferred consideration. (Refer note 13).
On the acquisition of Sooner Lucky Strike Mine there is a contingent liability in regard to Royalty
Arrangements to the vendors of ALSH LLC. (ALSH). The vendors of ALSH are entitled to receive royalty
payments at a rate of US$50 for each ounce of gold produced from any mining operations conducted on the
acquired tenements up to a maximum of US$5 million (Maximum Amount). Regardless of production, an
aggregate minimum amount of US$2.5 million will be paid by 31 December 2022 which is included in the
deferred consideration. (Refer note 13).
Royalties payable to the previous owner of Gunnison Property
During the year ended 30 June 2018 the Company acquired freehold land over the Gold Links property. The
agreement entitles the previous owner of this land to Royalty payments as detailed below:
The Company shall pay Royalties to the previous owner based on a percentage of Net Smelter Returns base
on the Gold Price per Ounce as follows:
35 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Gold Price per Ounce
(USD)
Ownership Percentage of Net Smelter Returns
$1,000 and below
1.0%
$1,001 to 1,500
An Additional 0.1% for every $100 in excess of $1,000 up to $1,500
$1,501 to $2,000
2.0%
$2,001 to $5,500
2.0% plus additional 0.1% for every $100 in excess of $2,000 up to
$5,500
$5,501 and above
7.0%
The percentage will be adjusted bi- annually if the total amount of gold produced over a 6 month period
is greater than one ounce per ton. The adjustment is calculated by multiplying the average Ownership
Percentage of Net Smelter returns during each 6 month period by the Gold Ratio. The Gold Ratio is the
ratio of the amount of ounces of gold produced verses the tonnes of ore mined and milled.
The maximum percentage payable is capped at 7%.
Minimum payment if no production occurs
If no production is under taken after 31 October 2018 the previous owner is entitled to US$15,000 per
calendar year if the following condition is met:
(i) A commercial quantity (as determined by the previous owner’s project engineer and geologist) of
ore is available.
24. DIVIDENDS
No dividend has been paid during the financial year and no dividend is recommended
for the financial year.
25. REMUNERATION OF AUDITORS
30-Jun-20
$
30-Jun-19
$
Amounts received or due and receivable by auditors.
(a) HLB Mann Judd Assurance (NSW) Pty Ltd
Income tax services
An audit or review of the financial report of the Company
-
45,587
45,587
8,250
47,000
55,250
36 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINACIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
PARENT ENTITY INFORMATION
26.
(a) Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-Current liabilities
Total Liabilities
Net Assets
Equity
Issued equity
Reserves
Retained earnings
Total Equity
(b) Financial Performance
Profit/(Loss) for the year
Other comprehensive income
Total Comprehensive Income
30-Jun-20
$
98,399
26,733,053
26,831,452
2,750,814
2,947,358
5,698,172
21,133,280
36,051,339
641,012
(15,559,071)
21,133,280
3,735,006
-
3,735,006
30-Jun-19
$
4,816,013
17,017,477
21,833,490
2,162,595
2,626,944
4,789,539
17,043,951
35,581,677
756,351
(19,294,077)
17,043,951
(5,104,006)
-
(5,104,006)
(c) Guarantees Entered Into By The Parent Entity
No guarantees have been entered into by the parent entity in relation to the debts of its
subsidiaries.
(d) Commitments And Contingencies of the Parent Entity
There were no commitments and contingencies for the parent entity as at 30 June 2020
or 30 June 2019 other than that disclosed in notes 21 and 23.
27. ENTITIES ACQUIRED DURING THE YEAR
Current year ended 30 June, 2020 - NIL
Previous year ended 30 June, 2019 - NIL
37 | P a g e
DATELINE RESOURCES LIMITED
DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 30 JUNE 2020
In the Directors’ opinion:
a) the financial statements and notes set out on pages 13 to 37 are in accordance with the Corporations Act
2001, including:
(i)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements, and
(ii) giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its performance
for the financial year ended on that date, and
b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
Note 2(a) confirms that the financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
The Directors have been given the declarations by the Equivalent Chief Executive Officer and the Equivalent
Chief Financial Officer required by Section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
On behalf of the Board of Directors
Mr Mark Johnson
Non-Executive Chairman
30 October 2020
38 | P a g e
Independent Auditor’s Report to the Members of Dateline Resources Limited
REPORT ON THE AUDIT OF THE FINANCIAL REPORT
Opinion
We have audited the financial report of Dateline Resources Limited (“the Company”) and its controlled
entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June 2020,
the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies, and the directors’ declaration
for the Company and the Group.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(a) giving a true and fair view of the Group’s financial position as at 30 June 2020 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 and the Group 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.
Material Uncertainty Regarding Going Concern
We draw attention to Note 2(g) (Going Concern) in the financial report, which indicates that the Group
incurred a net loss of $3,841,916 during the year ended 30 June 2020 and, as of that date had a working
capital deficiency of $1,075,676. As stated in Note 2(g) (Going Concern), these events or conditions, indicate
that a material uncertainty exists that may cast significant doubt on the Company’s (or Group’s) ability to
continue as a going concern. Our opinion is not modified in respect of this matter.
Emphasis of Matter – Current and Possible Effects and Uncertainties of COVID-19
We draw attention to Note 22 of the financial report, which describes the current and possible effects and
uncertainties on the Group arising from the on-going issues associated with COVID-19. Our opinion is not
modified in respect of this matter.
39 | P a g e
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters
Key Audit Matter
How our audit addressed the key audit matter
Carrying amount of exploration and evaluation assets
Note 12
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources, the Group
capitalises acquisition costs of rights to explore and
applies the cost model after recognition.
Our audit focussed on the Group’s assessment of
the carrying amount of the capitalised exploration
and evaluation assets because this is one of the
significant assets of the Group. There is a risk that
the capitalised expenditure no longer meets the
recognition criteria of the standard. In addition, we
considered it necessary to assess whether facts
and circumstances existed to suggest that the
carrying amount of exploration and evaluation
assets may exceed their recoverable amount.
The group has two areas of interest, one in Fiji, the
other in the United States of America (“USA”).
Our procedures included but were not limited to:
Reviewing a sample of capitalised costs to
supporting documentation to ensure they had been
capitalised in accordance with AASB 6 Exploration
for and Evaluation of Mineral Resources;
Considering the Directors’ assessment of potential
indicators of impairment;
Obtaining evidence that the Group had current right
of tenure over its areas of interest; and
Examining the disclosures made in the financial
report.
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 Group’s annual report for the year ended 30 June 2020, 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 ability of the Company and
the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the Company or
the Group or to cease operations, or have no realistic alternative but to do so.
40 | P a g e
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 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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s or Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Company or the Group to cease
to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are responsible
for the direction, supervision and performance of the Group audit. We remain solely responsible for our
audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
41 | P a g e
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 8 to 9 of the directors’ report for the year
ended 30 June 2020.
In our opinion, the Remuneration Report of Dateline Resources Limited for the year ended 30 June 2020
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.
HLB Mann Judd Assurance (NSW) Pty Ltd
Chartered Accountants
M D Muller
Director
Sydney, NSW
30 October 2020
42 | P a g e
DATELINE RESOURCES LIMITED
ADDITIONAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2020
The following additional information was applicable as at 24 September 2020.
1. Number of Holders of each class of equity security and the voting rights attached:
Class of Security
Ordinary Shares
Unlisted Options
No. of Holders
630
0
Voting Rights Attached
Each shareholder is entitled to one vote per share held
N/A
There are a total of 8,210,078,076 ordinary fully paid shares on issue. There are no shares subject to
voluntary escrow.
2. Distribution schedule of the number of holders of fully paid ordinary shares is as follows:
Distribution
of Holders
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and above
Number of Fully Paid
Ordinary Shareholders
64
14
27
101
424
3. Holders of non-marketable parcels
Holders of non-marketable parcels are deemed to be those who shareholding is valued at less than
$500.
• There are 239 shareholders who hold less than a marketable parcel of shares.
• The number of fully paid ordinary shareholdings held in less than marketable parcels is 9,308,025.
4. Substantial shareholders
As at report date there are three substantial shareholders.
5. Share buy-backs
There is no current on-market buy-back scheme.
43 | P a g e
DATELINE RESOURCES LIMITED
ADDITIONAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2020
6. Top 20 Shareholders
The top 20 largest fully paid ordinary shareholders together held 87.32% of the securities in this class
and are listed below:
NATIONAL NOMINEES LIMITED
SPINITE PTY LTD
BIG ELK HOLDINGS PTY LIMITED
JOJO ENTERPRISES PTY LTD
BICKHAM COURT SUPERANNUATION PTY LTD
Holder Name
SOUTHERN CROSS EXPLORATION NL
1
2 MR MARK RODERICK GRANGER JOHNSON
3
4 MUTUAL TRUST PTY LTD
5
6
7
8
9 MR K DAVIS & MRS A DAVIS
10 MR ANDREW JOHN PATTERSON
11 MR STEPHEN BAGHDADI
12
13 MANN INVESTMENT COMPANY
14 GECKO RESOURCES PTY LTD
15 MR KYLE AARON ROBBINS
16 MR JACOB HUNTER WILKINSON
17 MR ROBBERT GLENN GYDESEN
18 OMAROO PTY LTD
19 MR R PAGE & MRS A
20 MR ROBERT HAMILTON FERGUSON
1215 CAPITAL PTY LTD
Total
7. Unquoted Equity Securities
No. of Shares Holding
31.88%
2,617,665,022
19.41%
1,593,890,731
15.23%
1,250,000,000
3.26%
267,550,000
2.39%
196,346,959
2.13%
175,000,000
1.62%
133,010,702
1.46%
120,259,827
1.28%
105,250,000
1.25%
102,500,000
1.00%
81,806,866
0.96%
78,893,007
0.81%
66,666,666
0.73%
60,000,000
0.68%
56,000,000
0.68%
56,000,000
0.68%
56,000,000
0.64%
52,499,887
0.61%
50,000,000
0.61%
50,000,000
87.32%
7,169,339,667
8.
The Company has no listed unquoted equity securities on issue
Interest in Mining Licences
The Company is an exploration entity, below is a list of its interest in licences, where the licences are
situated and the percentage of interest held.
Project
Description / Number
Ownership
Location
Gold Links Permitted Mine
39 Patented Claims
Gold Links Permitted Mine
20 Unpatented Claims
19 Patented Claims
100%
100%
100%
Colorado USA
Colorado USA
Colorado USA
13 Patented Claims
100%
Colorado USA
Lucky Strike Permitted Mine &
Mineral Hill Historic Mine
Lucky Strike Permitted Mine &
Mineral Hill Historic Mine
Udu
Udu
SPL1387
SPL1396
100%
100%
Fiji
Fiji
44 | P a g e