DGO Gold Limited Annual Report 2018

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FY2018 Annual Report · DGO Gold Limited

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DGO Gold Limited

ABN 96 124 562 849

Annual Report for the financial year ended 30 June 2018

For personal use only

DGO Gold Limited

TABLE OF CONTENTS

Corporate Directory
Directors’ report
Remuneration 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 auditors’ report
Unaudited additional ASX and other information as at 10 September 2018
Tenements held

3
4
8
14
15
16
17
18
19
38
39
43
44

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DGO Gold Limited

Corporate Directory

Directors:

Mr. E. Eshuys (Executive Chairman)
Mr. M. J. Ilett (Non-Executive Director)
Mr. R. C. Hutton (Non-Executive Director)
Mr. J. B. Parncutt AO (Non-Executive Director)

Company secretary

Mr. Mark Licciardo
Ms. Lisa Deramond

Chief Financial Officer

Ms. C. Jupp

Registered office and
principal administrative office:

L17 41 Exhibition St
Melbourne Vic 3000

Share registry:

Auditors:

Telephone: + 61 3 9133 6251

Link Market Services Limited
Level 15, ANZ Building
324 Queen Street
BRISBANE QLD 4000

Postal Address:
GPO Box 2537
BRISBANE QLD 4001
Telephone: 1300 554 474
Telephone: + 61 2 8280 7454 (overseas)
Facsimile: + 61 2 8280 0303

BDO Audit Pty Ltd
Level 10
12 Creek Street
BRISBANE QLD 4000
Telephone: + 61 7 3237 5999
Facsimile: + 61 7 3221 9227

Stock exchange listings:

DGO Gold Limited shares are quoted on ASX Limited (ASX Code: DGO).

Website:

www.dgogold.com.au

ABN:
Corporate Governance
Statement

96 124 562 849
https://www.dgogold.com.au/investorcentre_corporategovernance.html

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DGO Gold Limited

Directors’ report

The Directors of DGO Gold Limited (“the Company”, “DGO”) submit herewith the annual report of DGO Gold Limited
and its subsidiary Yandan Gold Mines Pty Ltd (“Consolidated Entity” or “Group”) for the financial year ended 30 June
2018. In order to comply with the provisions of the Corporations Act 2001, the Directors report as follows:

Information about Directors and the Company Secretary

The names and particulars of the Directors and the Company Secretary of the Company during or since the end of the
financial year and until the date of this report are set out below:

Mr. Eduard Eshuys BSc, FAusIMM, FAICD (Executive Chairman)

Eduard, aged 73 is a geologist with several decades of exploration experience in Australia. His successes as Joseph
Gutnick’s exploration director are well known. In the late 1980s and early 1990s he led the teams that discovered the
Plutonic, Bronzewing and Jundee gold deposits, and the Cawse Nickel Deposit. He has also had involvement in the
Maggie Hays and Mariners nickel discoveries in the 1970’s. More recently he was the Managing Director and CEO of St
Barbara Limited from July 2004 to March 2009. During this time St Barbara Limited grew substantially as a gold
producer.

Mr. Eduard Eshuys joined the Company on 15 July 2010 as Executive Chairman with responsibility for the corporate
governance, exploration activities, administration, board conduct and leadership. As Chairman he will ensure that the
Company maintains a well-balanced, suitably qualified, focused and motivated management team working for the
benefit of all shareholders. Mr. Eduard Eshuys is a member of the Remuneration and Nomination Committee.

Mr. Eduard Eshuys has not been a director of any other listed company in the last three years.

Mr. Ross C. Hutton B. Eng (Min), MAusIMM (Non-Executive Director)

Ross, aged 70, is a Mining Engineer with over 45 years’ experience in the minerals industry ranging from mining to
project management in technical and executive management roles. He has worked in corporate and consultative roles
managing activities from feasibility studies to operations both in Australia and internationally. He was appointed Non-
Executive Director on 5 April 2007. Ross is the Chairman of the Audit Committee and Remuneration and Nomination
Committee.

Ross has not been a director of any other listed company in the last three years.

Mr Jeffrey (Bruce) Parncutt AO, BSc, MBA (Non-Executive Director)

Bruce, aged 67, is Chairman of investment banking group Lion Capital, a member of The Australian Ballet Board, The
University of Melbourne Campaign Board, and the University of Melbourne Centre for Positive Psychology Strategic
Advisory Board, and a Trustee of the Helen MacPherson Smith Trust. His career spans over 40 years in investment
management, investment banking and stock broking.

Previous roles include: Managing Director of McIntosh Securities, Senior Vice President of Merrill Lynch, Director of
Australian Stock Exchange Ltd, President of the Council of Trustees of the National Gallery of Victoria, Board Member
and Chairman of the NGV Foundation, member of the Felton Bequest Committee, Council member of Melbourne
Grammar School, and Director of a number of listed public companies, including Acrux Ltd, Praemium Limited and
Stuart Petroleum Ltd.

Bruce was recognised as Officer in the Order of Australia in the 2016 Queen’s Birthday Honours List for distinguished
service to the community as a philanthropist (particularly in arts and education) and as an advocate and supporter of
charitable causes, and to business and commerce. Mr. Bruce Parncutt was appointed Non-Executive Director on 23
May 2018 and is a member of the Audit Committee and Remuneration and Nomination Committees.

During the past three years Mr Bruce Parncutt has also served as a director of Acrux Limited from 1 May 2012 to 9
December 2016.

For personal use only

DGO Gold Limited

Directors’ report

Information about Directors and the Company Secretary (continued)

Mr. Michael J. Ilett BBus(Accy), GradDipAdvAcctg, GradDipCorpGov, MBA, ACIS, CPA, CA (Non- Executive
Director)

Michael, aged 52, is a Chartered Accountant and a member of Chartered Institute of Company Secretaries in Australia.
In 2003, Mr. Michael J. Ilett was awarded the MBA Medallion from the Queensland University of Technology and in
2004 was awarded the J. S. Goffage Prize from Chartered Secretaries Australia Limited. Michael has over 25 years’
commercial experience and was the former Company Secretary and Chief Financial Officer for Gold Aura Limited and
Union Resources Limited. He has provided a key role in the listing of exploration companies on the ASX, capital
raisings, corporate governance, administration and the dual listing of an Australian public company on the Alternative
Investment Market (AIM). Michael Ilett was appointed as a Director and a member of the Remuneration and Nomination
Committee and Audit Committees on 20 July 2015. Michael has been Company Secretary of the Company from 5 April
2007 until his resignation on 31 August 2018.

Michael has not been a director of any other listed company in the last three years.

Joint Company Secretaries

Mr Michael J Ilett whose skills, qualifications and expertise are set out under the previous paragraph, was the
Company Secretary until 31 August 2018.

Mr. Mark Licciardo B Bus(ACC), Grad Dip CSP, FGOA, FCIS, FAICD (Company Secretary)

Mark is the founder and Managing Director of Mertons Corporate Services. Mark has extensive experience working with
Boards of high profile ASX listed companies in the areas of corporate governance, accounting and finance and
company secretarial practice. Mark is a director of various ASX listed public and private companies, a former Chairman
of the Governance Institute of Australia Victorian division and Melbourne Fringe Festival and former company secretary
of Top 50 ASX listed companies Transurban Group and Australian Foundation Investment Company Limited. Mark was
appointed joint Company Secretary with Lisa Deramond on 31 August 2018.

Ms. Lisa Deramond BSc, LLB, GradDip CSP, FGIA, FCIS, GAICD (Company Secretary)

Lisa is a senior company secretarial, governance professional and lawyer. She has worked in the manufacturing,
membership, retail, mining and education sectors. She is Chair of the Presentation College Windsor Board and has
experience as director of other not for profit entities. Lisa was appointed joint Company Secretary with Mark Licciardo
on 31 August 2018.

Review of Operations

The Principal Activities of the year focused on:



Identifying and evaluating, ASX listed gold exploration companies with substantial land holdings and or
resources within established goldfields and or provinces.
Evaluating the past exploration data, government and research data with the objective of enhancing the value
the Company’s extensive land holdings in the Pilbara, Yerrida Basin and Eastern Goldfields of Western
Australia, and the Adelaide Geosyncline and Stuart Shelf of South Australia.

 Conducting and supporting research at CODES at University of Tasmania, particularly the gold, copper and
cobalt content of pyrites, that are associated with sediment hosted gold mineralisation in the Pilbara, Yerrida
Basin of Western Australia and the Tapley Hill formation in South Australia.

Investment Activities

The Company embarked on identifying and evaluating investment opportunities by researching 90 ASX listed Australian
gold explorers with a focus on Australia and particularly Western Australia.

Companies which had substantial land holdings in established gold fields or provinces, strong experienced
management and a stable shareholder base were prioritised for further study. This resulted in 7 companies of interest of
which De Grey Mining Limited was the standout with substantial potential for significant increased resources at a
modest discovery and evaluation cost per ounce. An investment of $5 million in De Grey resulted in the DGO Gold
securing a 7% interest along with options that would increase DGO’s interest to 10% on a fully diluted basis. The
purpose of the funding is to support De Grey’s focus on increasing its gold resources and to conduct research on the
gold mineralisation in the Pilbara.

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DGO Gold Limited

Directors’ report

Sediment Hosted Gold Discovery

The Company completed comprehensive data compilation and evaluation of its extensive land holdings in Western
Australia and South Australia including reviews of past exploration data, interpretation of airborne magnetic/ radiometric
and gravity data, and research of academic literature applicable and government geological survey data. This research
work has generated substantial targets at this point in the Pilbara, Yerrida Basin, and the Murchison in Western
Australia. Work is ongoing in South Australia.

Research and Development

The Company has continued to conduct its research engagement with CODES at the University of Tasmania. The
objective of the research is to target the discovery of world class sediment hosted gold, copper and cobalt mineralisation
in the sedimentary basins of Australia. Detailed sampling of pyrite hosted by sediments is followed by laser ablation
analysis of the gold copper and cobalt contents of the pyrite. The geological age of the sediments/ basins is also an
important element in focusing the ongoing research.

In particular, extensive sampling of favourable sedimentary diamond core has occurred at the Western Australian and
South Australian central core libraries.

Operating Results

The total loss from operations of the Consolidated Entity for the year ended 30 June 2018 was $611,890 (2017: net loss
$201,964).

Changes in state of affairs

During the financial year, the Company and Yandan Gold Mines Pty Ltd received a total of $234,033 (before fees) in tax
refunds relating to the 2017 research and development activities.

On 7 September 2017, through a private placement, the Company issued 698,162 fully paid ordinary shares at an issue
price of $0.25. Attached to these shares were 698,162 options exercisable at $0.40 on or before 30 June 2020. On 4
April 2018, the Company issued 1,250,000 fully paid ordinary shares at an issue price of $0.80. During the year
3,585,726 $0.40 options were exercised, raising $1,434,291.

At the date of this report there are 21,645,002 fully paid ordinary shares 880,695 options exercisable at $0.40 on or
before 30 June 2020 and 6,545,587 options exercisable at $1.00 on or before 31 December 2021 on issue.

The head office and registered office was moved to Level 17, 41 Exhibition St Melbourne 3000 in July 2018.

Other than above there was no significant change in the state of the affairs of the consolidated entity during the financial
year.

Subsequent Events

The Company announced an issue of 6,545,587 fully paid ordinary shares at an issue price of $0.75 per share and
6,545,587 free attaching options exercisable at $1 per share on or before 31 December 2021 to various shareholders
pursuant to a non-renounceable entitlement offer announced on the ASX on 4 July 2018.

On 11 July 2018 DGO Gold Limited was issued with 25 million shares at $0.20 per share, 12,500,000 options
exercisable at $0.25 by 30 November 2019, and 12,500,000 options exercisable at $0.30 by 30 May 2021 in De Grey
Mining Limited under the terms and conditions of the Share Subscription Agreement with De Grey Mining Limited dated
22 May 2018.

Health and Safety Policy

The Company is committed to maintaining a culture which supports the health and safety of all employees, contractors,
customers and communities associated with its business and operations and has appropriate policies in place.

Environmental regulations

The Company is subject to particular and significant environmental regulation under the law of the Commonwealth or of
a state or Territory relating to the tenements that are granted. So far as the Directors are aware, there have been no
material breaches of the Group’s license conditions and all exploration activities have been undertaken in compliance
with the relevant environmental regulations.

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DGO Gold Limited

Directors’ report

Dividends

No dividends have been paid or proposed since the start of the financial year, and the Directors do not recommend the
payment of a dividend in respect of the financial year.

Shares under option or issued on exercise of options

At the date of this report, a total of 880,695 options exercisable at $0.40 on or before 30 June 2020 (DGOAI) and
6,545,587 options exercisable at $1.00 on or before 31 December 2021 are on issue.

Indemnification of Directors, Officers and Auditors

During the financial year, the Company paid a premium in respect of Directors’ and Officers’ Insurance insuring the
Directors and Officers of the Company against a liability incurred as a Director and Officer to the extent permitted by the
Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the
premium. The Company has not otherwise, during or since the end of the financial year, except to the extent permitted
by law, indemnified or agreed to indemnify an Officer or auditor of the Company or of any related body corporate
against a liability incurred by such an Officer or auditor.

Directors’ meetings

The following table sets out the number of Board of Directors’ Meetings (including Directors’ approvals requiring
circulating resolutions), Remuneration & Nomination Committee Meetings and Audit Committee Meetings held during
the financial year and attendance at such meeting by each Director and member of the committee.

Directors

Mr. E. Eshuys (i)
Mr. R. C. Hutton
Mr. M. J. Ilett
Mr J. B. Parncutt (ii)

Board of Directors

Remuneration
& Nomination
Committee

Audit Committee

Invited to
attend
24
24
24
2

Attended

24
24
24
2

Invited to
attend
2
2
2
-

Attended

2
2
2
-

Invited to
attend
-
2
2
-

Attended

-
2
2
-

(i) Mr. E. Eshuys is not a member of the Audit Committee.
(ii) M J. B. Parncutt became a director on 23 May 2018.

Directors’ security holdings

The following table sets out each Director’s direct and indirect interest and relevant interest in fully paid ordinary shares
in the Company as at the date of this report:

Directors

Mr. E. Eshuys

Mr. R. C. Hutton (i) (ii)

Mr. M. J. Ilett

Mr J. B. Parncutt

Fully paid
ordinary shares
Number (i)

2,308,259

489,673

86,303

3,510,375

Indirect holdings

Total shares held
(beneficial interest)

Relevant
Interest

69,753

2,308,259

510,599

86,303

559,426

86,303

3,510,375

Fully ordinary shares held excluding those held in in the Mt Coolon Gold Mines Trust (MCGMT)

(i)
(ii) The MCGMT holds 69,753 fully paid ordinary shares in the Company. Mr. R. C. Hutton holds a beneficial interest of approximately of 30%

in the MCGMT and a relevant interest in all the shares in MCGMT.

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DGO Gold Limited

Directors’ report

The following table sets out each Director’s direct and indirect interest and relevant interest in options in the Company
as at the date of this report:

Directors

40c Options

$1 Options

Mr. E. Eshuys (ii)

Mr. R. C. Hutton (i)

Mr. M. J. Ilett (ii)

Mr J. B. Parncutt (ii)

40,000

680,268

20,608

1,170,125

(i)

(ii)

40c options - 40,000 of the options held by Mr R. C. Hutton are exercisable at $0.40 cents on or before 30 June 2020 and were issued
pursuant to the Entitlement Offer on 22 June 2017.
$1 options all other options are exercisable at $1 on or before 31 December 2021 and were issued pursuant to the Entitlement Offer on 6
July 2018.

Mr. J. B. Parncutt and Mr. M Ilett will be eligible to be re-elected as Directors at the next Annual General Meeting.

Remuneration report (Audited)
The Remuneration Report, which forms part of the Directors’ Report, sets out the information about the remuneration of
the Group’s key management personnel and relevant Group executives for the financial year ended 30 June 2018. The
term ‘key management personnel’ relates to those persons having the authority and responsibility for planning, directing
and controlling the activities of the consolidated entity directly or indirectly including any director (whether executive or
otherwise) of the consolidated entity. The prescribed details for each person covered by this remuneration report are
detailed below under the following headings: -

A. Key management personnel covered in this report
B. Remuneration policy for key management personnel
C. Relationship between remuneration policy and company performance
D. Remuneration of the key management personnel and relevant group executives
E. Key terms of employment contracts
F. Other transactions and other balances with key management personnel and their related parties

Key management personnel covered in this report

The following persons acted as directors of the Company during or since the end of the financial year:

 Mr. E. Eshuys (Executive Chairman)
 Mr. R. C. Hutton (Non-Executive Director)
 Mr. J. B. Parncutt (Non-Executive Director) – appointed 23 May 2018
 Mr. M. J. Ilett (Executive Director, Company Secretary)- resigned as Company Secretary on 31 August 2018

and became a Non-Executive Director on the same day.

Remuneration policy for key management personnel

The Board of Directors is responsible for determining and reviewing compensation arrangements for key management
personnel. The Remuneration and Nomination Committee makes recommendations to the Board on performance and
remuneration of the key management personnel.

Executive Remuneration

Contracts for services for the executive members of the key management personnel are reviewed on a regular basis to
ensure that they properly reflect the duties and responsibilities of the individuals concerned. The executive
remuneration is based on a number of factors including length of service, relevant market conditions, knowledge and
industry experience, organisational experience, performance of the Company and competitive factors within the
industry. There are no guaranteed pay increases included in senior executives' contracts. The executives are not
entitled to any retirement benefits other than those provided for under the key terms of the employment contracts as
outlined below.

The Company has formulated a set of criteria for the performance review of the key executives. During the financial
year, the Remuneration and Nomination Committee held a performance review for the Chairman, Non-Executive
Directors and senior executives and recommendations were made to and adopted by the Board. The senior executives
consisting of Mr. E. Eshuys and Mr. M. J. Ilett have the opportunity to participate in executive decision making and make
regular reports to the Board. The senior executives have an understanding of the Company’s financial position,
strategies, operations and risk management policies and an understanding of their respective rights, duties,
responsibilities, and the roles of board and senior executives.

For personal use only

DGO Gold Limited

Directors’ report
Remuneration report (Audited)

Non-executive director remuneration

The Directors’ Fees are reviewed on a regular basis against industry benchmarks. The Directors received no equity-
based payments during the year. Other than compulsory payments made under the superannuation guarantee
legislation there have been no retirement benefits provided to the Directors.

C. Relationship between remuneration policy and company performance

The performance of the Company is considered in setting remuneration policy. DGO Gold Limited’s performance in the
exploration industry will be dependent upon the Company meeting the following corporate objectives-



acquiring gold and base metal exploration businesses and seeking to create shareholder value through
prospect delineation, joint venture and sale or successful exploration
seeking shareholder value growth through investment in exploration ventures and companies.

The table below sets out summary information about the Consolidated Entity’s earnings and movements in
shareholder’s wealth for the five years to 30 June 2018:

Description

30 June 2018

30 June 2017

30 June 2016

30 June 2015

30 June 2014

Interest revenue and other
income
Loss for the year from continuing
operations
Loss for the year from
discontinued operations
Net loss before tax
Net (loss)/profit after tax
Share price at start of year (i)
Share price at end of year (i)
Share-based payments
Return of capital
Basic profit/(loss) per share (i)
Diluted profit/(loss) per share (i)

4,294

178,854

261,995

3,299

4,346

(611,890)

(201,964)

(871,690)

(741,521)

(346,363)

-
(611,890)
(611,890)
23.5 cents
66.5 cents
-
-
(5 cents)
(5 cents)

-
(201,964)
(201,964)
20 cents
23.5 cents
-
-
(3 cents)
(3 cents)

-
(871,690)
(871,690)
20 cents
20 cents
-
-
(15 cents)
(15 cents)

(235,785)
(977,306)
(977,306)
20 cents
20 cents
-
-
(20 cents)
(20 cents)

(4,286,147)
(4,636,316)
(4,632,510)
30 cents
20 cents
100,000
-
(122 cents)
(122 cents)

(i)

The calculation of the basic loss per share and share price adjusted for the 100:1 share consolidation that was approved by shareholders
on 17 September 2015.

D. Remuneration of key management personnel

The following table provides information about the remuneration of the Consolidated Entity’s key management
personnel during the 30 June 2018 year:

Short-term employee benefits

Salary
& fees
$

Bonus

Non-
monetary
$

Other

Post-
employment
benefits
Super-
annuation
$

Other long-
term
employee
benefits

Share-
based
payment

Total

100,000

-
45,000

45,000
190,000

-
-

9,500

-
4,275

15,489

-
-

75,000
75,000

4,275
18,050

-
15,489

-
-

124,989

-
49,275

124,275
298,539

2018

Executive chairman
Mr. E. Eshuys
Non-executive directors
Mr. J. B. Parncutt (ii)
Mr. R. C. Hutton
Executive director and
Company Secretary
Mr. M. J. Ilett (i)
Total

(i)

Short-term employee benefits include $75,000 representing consulting fees (net of Goods and Services Tax) paid to Kaus Australis Pty Ltd
a related party of Mr. M. J. Ilett.

(ii) Appointed as Non-Executive Director on 23 May 2018

For personal use only

DGO Gold Limited

Directors’ report

Remuneration report (Audited)

The following table provides information about the remuneration of the Consolidated Entity’s directors and senior
management during the 30 June 2017 year:

Short-term employee benefits

Salary
& fees
$

Bonus

Non-
monetary
$

Other

2017

Executive chairman
Mr. E. Eshuys
Non-executive directors
Mr. R. C. Hutton
Executive director and
Company Secretary
Mr. M. J. Ilett (i)
Total

100,000

45,000

45,000
190,000

-
-

Post-
employment
benefits
Super-
annuation
$

9,500

4,275

85,050
85,050

4,275
18,050

Other long-
term
employee
benefits

Share-
based
payment

Total

-
-

109,500

49,275

134,325
293,100

(i)

Short-term employee benefits include $85,050 representing consulting fees (net of Goods and Services Tax) paid to Kaus Australis Pty Ltd
a related party of Mr. M. J. Ilett.

There were no bonuses or share based payments granted as compensation for the current or prior financial year.

Key management personnel equity holdings

Fully paid ordinary shares of DGO Gold Limited held directly or indirectly at end of financial year:

Balance
at beginning
of year

Granted as
compensation

No.

2018
Mr. E. Eshuys (i)
Mr. J. B. Parncutt (i)
Mr. R. C. Hutton
Mr. M. J. Ilett (i)
2017
Mr. E. Eshuys
Mr. R. C. Hutton
Mr. M. J. Ilett (i)

1,231,757
1,934,500 (iii)
559,426
49,271

863,284
519,426
32,847

-
-
-
-

-
-
-

Received
on
exercise
of options
No.

351,244
405,750
-
16,424

-
-
-

Net other
change (ii)

Balance
at the end
of the year

Relevant
interest

Balance
held
nominally

No.

44,990
-
-
-

368,473
40,000
16,424

1,627,991
2,340,250
559,426
65,695

1,231,757
559,426
49,271

1,627,991
2,340,250
559,426
65,695

1,231,757
559,426
49,271

-
-
-
-

-
-
-

Exercise of options at exercise price of 40 cent per share acquired on 6 June 2018.

(i)
(ii) These are equity transactions with KMP other than those granted as remuneration which have been entered into under terms and

conditions no more favourable than those the Group would have adopted if dealing at arm's length.

(iii) Shares held upon appointment as director on 23 May 2018.

Unlisted options of DGO Gold Limited held directly or indirectly at end of financial year:

Balance
at
beginning
of year
No.

351,244
40,000
16,424
405,750

Granted as
compensation

Net other
change

Balance
at the end
of the year

Relevant
interest

Balance
held
nominally

No.

-
-
-
-

(351,244)
-
(16,424)
(405,750)

-
40,000
-
-

-
-
-
-

2018
Mr. E. Eshuys
Mr. R. C. Hutton
Mr. M. J. Ilett
Mr J. B. Parncutt (i)

(i) Options held upon appointment as director on 23 May 2018.

For personal use only

DGO Gold Limited

Directors’ report

Remuneration report (Audited)

E. Key terms of employment contracts

Contracts for services of key management personnel

Remuneration and other terms of employment for the Directors and other key management personnel are formalised in
service agreements. The contractual arrangements contain certain provisions typically found in contracts of this nature.

Mr. E. Eshuys

The Company has entered into an agreement with Mr. E. Eshuys pursuant to which Mr. E. Eshuys has agreed to act in
the capacity as an Executive Chairman and provided geological services to the Company. The key terms of the
agreement are as follows:-








Annual Fee of $100,000 per annum plus superannuation obligations under the superannuation guarantee.
Term of the Agreement: One (1) year renewed on an annual basis by mutual consent.
Entitled to any accrued long service leave on retirement or termination.
Termination due to resignation: Mr. E. Eshuys is required to provide one (1) months’ notice and be paid the
equivalent of one (1) month’s fees for the provision of Executive Chairman services together with accrued long
service leave;
Termination due to company notice: The Company is required to provide three (3) months’ notice and make a
payment equivalent of three (3) month’s fee for the provision of Executive Chairman services in lieu of notice
together with accrued long service leave; and
Termination due to change in control: In the event that a party acquires more than 50% of the Company and
Mr. E. Eshuys is terminated, he shall be entitled total remuneration payable in respect of the equivalent of one
(1) month’s fees for the provision of Executive Chairman services together with any accrued long service
leave.

Mr. R. C. Hutton

The Company has entered into an agreement with Mr. R. C. Hutton pursuant to which Mr. R. C. Hutton has agreed to
act in the capacity as a Non-Executive Director of the Company. The key terms of the agreement are as follows:-



Annual Director’s Fees: $45,000 per annum plus superannuation obligations under the superannuation
guarantee payable on a monthly basis for the provision of services as a Non-Executive Director.
Term of the Agreement: One (1) year renewed on an annual basis by mutual consent;


 No annual leave or long service leave accrued;
 Consulting Fees: $175 per hour (exclusive of GST) for each hour worked and invoiced on projects approved by
the Board, other than for work that forms part of his Director’s duty, to a maximum amount of $5,000 per month
(excluding GST) unless otherwise agreed by the Company;
Termination due to resignation: Mr. R. C. Hutton is required to provide one (1) months’ notice and be paid one
(1) month’s Director’s Fees during this notice period;
Termination due to company notice: The Company is required to provide three (3) months’ notice and make a
payment of four (4) month’s Director’s Fees in lieu of notice; and
Termination due to change in control: In the event that a party acquires more than 50% of the Company and
Mr. R. C. Hutton is terminated, he shall be entitled total remuneration payable in respect of four (4) months’
Directors’ fees.



Mr. J. B. Parncutt

The Company has entered into an agreement with Mr. J. B. Parncutt pursuant to which Mr. J. B. Parncutt has agreed to
act in the capacity as a Non-Executive Director of the Company. The key terms of the agreement are as follows:-

 No Director’s Fee is to be paid
 No annual leave or long service leave accrued;
 Outgoings: Provision to reimburse Lion Capital Management Pty Ltd for all reasonable and necessary expenses

incurred by it or Mr. J. B. Parncutt in the performance of the services under the agreement;

 Term of the Agreement: One (1) year renewed on an annual basis by mutual consent;
 No annual leave or long service leave accrued;
 Termination due to change in control: In the event that a party acquires more than 50% of the Company and the
services of Lion Capital Management Pty Ltd is terminated, Lion Capital Management Pty Ltd shall be entitled
total remuneration payable in respect of three (3) months’ invoice equal to the invoices for services provided in
the preceding three (3) months prior to the date of the change in control event.

For personal use only

DGO Gold Limited

Directors’ report
Remuneration report (Audited)

Mr. M. J. Ilett

The Company has entered into an agreement with Kaus Australis Pty Ltd dated 1 July 2010 pursuant to which Mr. M. J.
Ilett has agreed to provide certain consultancy services to the Company and be appointed as the Company Secretary.
The key terms of the agreement are as follows:-

 Annual Director’s Fees: $45,000 per annum plus superannuation obligations under the superannuation guarantee

payable on a monthly basis for the provision of services as a Director.

 Consulting fee for Chief Financial Officer and Company Secretarial services charged at rate of $175 per hour

(exclusive of GST) invoices through Kaus Australis Pty Ltd;

 Outgoings: Provision to reimburse Kaus Australis Pty Ltd for all reasonable and necessary expenses incurred by

it or Mr. M. J. Ilett in the performance of the services under the agreement;

 Term of the Agreement: One (1) year renewed on an annual basis by mutual consent;
 No annual leave or long service leave accrued;
 Termination due to Company notice: The Company is required to provide three (3) months’ notice and make a
payment equal to the invoices for services provided in the preceding three (3) months prior to the date of the
company notice event; and

 Termination due to change in control: In the event that a party acquires more than 50% of the Company and the
services of Kaus Australis Pty Ltd is terminated, Kaus Australis Pty Ltd shall be entitled total remuneration
payable in respect of three (3) months’ invoice equal to the invoices for services provided in the preceding three
(3) months prior to the date of the change in control event.

F. Other transactions and other balances with key management personnel and their related parties.

During the financial year a total of $75,000 (net of GST) (2017: $85,050) was paid to Kaus Australis Pty Ltd a related
party of Mr. Michael Ilett for Company Secretarial Services. During the year, the Company paid $5,200 (net of GST)
(2017: nil) for CFO Services to Lion Capital Management Pty Ltd a related party of Mr. J. B. Parncutt.

Exploration Drill Rigs Pty Ltd, a company related to Mr. Michael Ilett and Mr. Ross Hutton, provides the DGO Gold Ltd
with a registered office, outgoings, telephone, electricity and receptionist services for a total of $18,450 during the year
(2017: $19,637) excluding goods and services tax.

Lion Capital Management Pty Ltd, a company related to Mr. J B Parncutt, provided DGO Gold Ltd with an office,
outgoings, telephone, electricity, director travel expenses, Executive Assistant and Analyst services for a total of
$54,899 (2017: nil) in 2018 excluding goods and services tax.

End of audited remuneration report.

Non-audit services

Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor are
outlined in note 27 to the financial statements.

The Directors are satisfied that the provision of non-audit services, during the year, by the auditor (or by another person
or firm on the auditor’s behalf) is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001.

The Directors are of the opinion that the services as disclosed in note 27 to the financial statements do not compromise
the external auditor’s independence, based on advice received from the Audit Committee, for the following reasons:



all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and
objectivity of the auditor, and
none of the services undermine the general principles relating to auditor independence as set out in Code of
Conduct APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional &
Ethical Standards Board, including reviewing or auditing the auditor’s own work, acting in a management or
decision-making capacity for the company, acting as advocate for the company or jointly sharing economic
risks and rewards.

Auditor’s independence declaration
The auditor’s independence declaration is included on page 14 of the Annual Report.

Proceedings on behalf of the company

No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any
proceedings to which the Company is a party for the purposes of taking responsibility on behalf of the Company for all
or any part of those proceedings. The Company was not a party to any such proceedings during the year.

For personal use onlyDGO Gold Limited

Directors’ report

Remuneration report (Audited)

Shares under options

Unissued ordinary shares

Unissued options of shares of Company under option at the date of the report are outlined in the following table:

Date options
granted

Balance
at
beginning
of year
No.

No of options
issued

Expiry
date

Exercise
price per
share

No of options
exercised

Balance at date of
report

No.

No of shares
issued from
exercising
options
No.

22 June 2017
26 June 2017
6 July 2018

2,898,666
869,593
-

698,162
-
6,545,587 (i)

30 June 2020
30 June 2020
31 December 2021

$0.40
$0.40
$1.00

2,716,133
869,593
-

880,695
-
6,545,587

2,716,133
869,593
-

(i)

Issued after year end on 6 July 2018

The directors’ report is signed in accordance with a resolution of Directors made pursuant to s.298 (2) of the
Corporations Act 2001.

On behalf of the Directors

Eduard Eshuys
Executive Chairman
Melbourne, 12 September 2018

For personal use onlyDGO Gold Limited

Auditor’s independence declaration

Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au

Level 10, 12 Creek St
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia

DECLARATION OF INDEPENDENCE BY T R MANN TO THE DIRECTORS OF DGO GOLD LIMITED

As lead auditor of DGO Gold Limited for the year ended 30 June 2018, I declare that, to the best of my
knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in

relation to the audit; and

2. No contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of DGO Gold Limited and the entity it controlled during the period.

T R Mann
Director

BDO Audit Pty Ltd

Brisbane, 12 September 2018

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050
110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited
by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional
Standards Legislation, other than for the acts or omissions of financial services licensees.

For personal use onlyDGO Gold LImited

Consolidated statement of profit or loss and other comprehensive income

for the financial year ended 30 June 2018

Continuing operations
Interest income
Other income – government grant

Occupancy cost
Depreciation expenses
Marketing cost
Employee benefit expenses
Directors’ fees
Consultants and contractor expenses
Administration expenses
Impairment of available for sale financial assets
Exploration and evaluation expenditure

Loss before tax from continuing operations

Income tax (expense)/benefit

Loss for the year from continuing operations

LOSS FOR THE YEAR

Other comprehensive income
Items that may be reclassified as profit and loss
Change in fair value of available for sale financial assets
Income tax on other items of other comprehensive income
Other comprehensive income for the year net of tax

Total comprehensive loss for the year

Loss per share
Basic and diluted loss per share (cents per share)

Note

Year ended
30/06/18
$

Year ended
30/06/17
$

4,294
-

3,899
174,955

(21,222)
(7,097)
(3,995)
(7,612)
(59,672)
(102,674)
(241,633)
-
(172,279)

(19,637)
(5,161)
(12,540)
(12,540)
(68,490)
(97,693)
(109,683)
(30,851)
(36,763)

(611,890)

(201,964)

(611,890)

(201,964)

(611,890)

(201,964)

10,638
-
10.638

-
-
-

(601,252)

(201,964)

(5)

(3)

The above consolidated statement of profit or loss should be read in conjunction with the accompanying notes

For personal use only

DGO Gold LImited

Consolidated statement of financial position

as at 30 June 2018

Current assets
Cash and cash equivalents
Trade and other receivables
Assets classified as held for sale
Total current assets

Non-current assets
Property, plant and equipment
Exploration and evaluation expenditure
Total non-current assets

Total assets

Current liabilities
Trade and other payables
Provisions
Total current liabilities

Total liabilities

Net assets

Equity
Issued capital
Reserves
Accumulated losses
Total equity

Note

Year ended
30/06/18
$

Year ended
30/06/17
$

7
8
9

10
11

12
13

14
15
16

1,625,441
572,322
60,638
2,258,401

16,611
1,642,437
1,659,048

959,279
29,305
50,000
1,038,584

13,644
549,932
563,576

3,917,449

1,602,160

510,436
15,489
525,925

118,164
7,877
126,041

525,925

126,041

3,391,524

1,476,119

23,749,024
311,290
(20,668,790)
3,391,524

21,232,367
300,652
(20,056,900)
1,476,119

The above consolidated statement of financial position should be read in conjunction with the accompanying notes

For personal use only

DGO Gold LImited

Consolidated statement of changes in equity

for the financial year ended 30 June 2018

Issued
capital

Accumulated
losses

Option
premium
reserve

Share
revaluation
reserve

Consolidated
Balance at 1 July 2016

20,350,768

$
(19,854,936)

$
300,652

Loss for the year
Other comprehensive income
Total comprehensive income
for the period

Transactions with owners in
their capacity as owners
Issue of shares
Share issue costs

-
-

(201,964)
-
(201,964)

942,065
(60,466)
881,599

-
-
-

-
-

-
-
-

Balance at 30 June 2017

21,232,367

(20,056,900)

300,652

Balance at 1 July 2017

21,232,367

(20,056,900)

300,652

Loss for the year
Other comprehensive income
Total comprehensive income
for the period

Transactions with owners in
their capacity as owners
Issue of shares
Share issue costs

-
-

(611,890)
-
(611,890)

2,608,833
(92,176)
2,516,657

-
-
-

-
-

-
-
-

Total

$
796,484

(201,964)
-
(201,964)

942,065
(60,466)
881,599

1,476,119

(611,890)
10,638
(601,252)

-
-
-

10,638
10,638

-
-
-

2,608,833
(92,176)
2,516,657

Balance at 30 June 2018

23,749,024

(20,668,790)

300,652

10,638

3,391,524

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes

For personal use only

DGO Gold LImited

Consolidated statement of cash flows for the financial year ended 30 June
2018

Cash flows from operating activities

Payments to suppliers and employees

Payments for exploration and evaluation activities

Receipt of research and development tax rebate

Year ended
30/06/18
$

Year ended
30/06/17
$

Note

(452,177)

(356,268)

(172,279)

(36,763)

435,384

Net cash (used)/generated by operating activities

(624,456)

42,353

Cash flows from investing activities

Interest received

Receipt of research and development tax rebate for exploration assets

Payments for plant and equipment

Payments for exploration and evaluation activities

Payments for deposits

Net cash generated/(used) by investing activities

Cash flows from financing activities

Proceeds from issues of equity securities

Payment for share issue costs

Proceeds from share application monies

Net cash generated by financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the financial year

4,294

234,033

(10,064)

3,899

68,127

(1,226,312)

(457,205)

(483,827)

(1,481,876)

(385,179)

2,608,833

942,065

(151,796)

(5,628)

315,456

2,772,493

936,437

666,162

593,611

959,279

365,668

Cash and cash equivalents at the end of the financial year

1,625,441

959,279

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes

For personal use only

DGO Gold LImited

Notes to the financial statements

for the year ended 30 June 2018

Income taxes

Notes to the financial statements
1. General information
2. New accounting standards for application in future periods
3. Significant accounting policies
4. Critical accounting judgements and estimates
5. Business and geographical segments
6.
7. Cash and cash equivalents
8. Trade and other receivables
9. Assets classified as held for sale
10. Property, plant and equipment
11. Exploration and evaluation expenditure
12. Trade and other payables
13. Provisions
14. Issued capital
15. Reserves
16. Accumulated losses
17. Loss per share
18. Dividends
19. Commitments
20. Subsidiaries
21. Notes to the statement of cash flows
22. Contingent liabilities and contingent assets
23. Financial instruments
24. Key management personnel compensation
25. Related party transactions
26. Parent entity disclosures
27. Remuneration of auditors
28. Events after the reporting date
Directors’ declaration
Independent auditors’ report
Unaudited additional ASX and other information as at 10 September 2018
Tenements held

20
20
21
26
26
27
27
28
28
29
30
30
30
31
32
32
32
32
33
33
33
34
34
36
36
36
37
37
38
39
43
44

For personal use only

DGO Gold LImited

1. General information

DGO Gold Limited (the Company) is a public company listed on the Australian Securities Exchange (trading under the
code DGO), incorporated in Australia and operating in Queensland. DGO Gold Limited’s registered office and its
principal place of business are as follows:

Registered office
L17 41 Exhibition St
Melbourne Vic 3000

Principal place of business
L17 41 Exhibition St
Melbourne Vic 3000

The Groups’ principal activity in the course of the financial year was to consider opportunities to acquire or joint venture
gold exploration tenements with particular emphasis on gold based on research undertaken with the University of
Tasmania on sediment hosted gold deposits in Australia.

The consolidated financial statements of DGO Gold Limited and its subsidiary (collectively, the Group) were authorised
for issue by the Directors on 12 September 2018.

2. New accounting standards for application in future periods
Accounting standards issued by the AASB that are not yet mandatorily applicable to the Group, together with an
assessment of the potential impact of such pronouncements on the Group when adopted in future periods, are
discussed below:

AASB 9: Financial Instruments and associated amending standards (applicable to annual reporting periods beginning
on or after 1 January 2018).

This standard and its consequential amendments are currently applicable to annual reporting periods beginning on or
after 1 January 2018. This standard introduces new classification and measurement models for financial assets, using a
single approach to determine whether a financial asset is measured at amortised cost or fair value. To be classified and
measured at amortised cost, assets must satisfy the business model test for managing the financial assets and have
certain contractual cash flow characteristics. All other financial instrument assets are to be classified and measured at
fair value. This standard allows an irrevocable election on initial recognition to present gains and losses on equity
instruments (that are not held-for-trading) in other comprehensive income, with dividends as a return on these
investments being recognised in profit or loss. In addition, those equity instruments measured at fair value through other
comprehensive income would no longer have to apply any impairment requirements nor would there be any 'recycling'
of gains or losses through profit or loss on disposal. The accounting for financial liabilities continues to be classified and
measured in accordance with AASB 139, with one exception, being that the portion of a change of fair value relating to
the entity's own credit risk is to be presented in other comprehensive income unless it would create an accounting
mismatch.

The Group has evaluated the impact adoption of this standard and determined there will be no material impacts in the
current reporting period.

The Group anticipates that the investment in De Grey Mining Limited completed on 11 July 2018 will be carried at fair
value through other comprehensive income.

AASB 16 Leases
This standard and its consequential amendments are currently applicable to annual reporting periods beginning on or
after 1 January 2019. When effective, this standard will replace the current accounting requirements applicable to
leases in AASB 117 Leases and related interpretations. AASB 16 introduces a single lessee accounting model that
eliminates the requirement for leases to be classified as operating or finance leases. This means that for all leases, a
right-to-use asset and a liability will be recognised, with the right-to-use asset being depreciated and the liability being
unwound in principal and interest components over the life of the lease.

The Group has evaluated the impact adoption of this standard. Upon adoption of this standard, it is the Group’s
intention to transition using the modified retrospective approach, where the right-of-use asset is recognised at the date
of initial application at an amount equal to the lease liability, using the entity’s current incremental borrowing rate.
Comparative figures are not restated.

Based on the transition approach and the entity’s current leasing arrangements the entity has determined there will be
no material impacts in the current or future reporting periods and on foreseeable future transactions.

There are no other standards that are not yet effective and that would be expected to have a material impact on the
group in the current or future reporting periods and on foreseeable future transactions.

For personal use only

DGO Gold LImited

3. Significant accounting policies

Statement of compliance
The financial report is a general purpose financial report which has been prepared in accordance with the Corporations
Act 2001, Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board’s other
authoritative pronouncements.

The financial statements comprise the consolidated financial statements of the Group. For the purpose of preparing the
consolidated financial statements, the Company is a for-profit entity.

The financial statements and notes of the Group also comply with International Financial Reporting Standards (‘IFRS’)
as issued by the International Accounting Standards Board.

New Accounting Standards and Interpretations

The Group adopted all new Accounting Standards and Interpretations effective for the year ended 30 June 2018. There
were no material impacts on the financial statements of the Group as a result of adopting these standards.

Basis of preparation
The financial report has been prepared on the basis of historical cost, except for assets classified as held for sale that
have been measured at fair value. Cost is based on the fair values of the consideration given in exchange for assets. All
amounts are presented in Australian dollars, unless otherwise noted.

The following significant accounting policies have been adopted in the preparation and presentation of the financial
report:

(a) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and controlled by the
Company (its subsidiary) (referred to as ‘the Group’ in these financial statements). Control is based on whether
the investor has power over the investee, exposure, or rights, to variable returns from its involvement in the
investee, and the ability to use its power over the investee to affect the amount of the returns.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of
comprehensive income from the effective date of acquisition or up to the effective date of disposal, as
appropriate.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies into line with those used by other members of the Group. All intra-group transactions, balances, income
and expenses are eliminated in full on consolidation.

(b) Going concern

The consolidated financial statements have been prepared on a going concern basis which contemplates that the
group will continue to meet its commitments and can therefore continue normal business activities and the
realisation of assets and settlement of liabilities in the ordinary course of business.

Because of the nature of the operations, exploration companies, such as DGO Gold Limited, find it necessary on
a regular basis to raise additional cash funds to fund future exploration and investment activity and meet other
necessary corporate expenditure. At the date of this financial report, the ability of the group to execute its
currently planned exploration and evaluation activities requires the group to raise additional capital with the next
18 months.

DGO Gold Limited successfully completed a capital raising in July 2018 raising $4,909,190 in a 1 for 2 non-
renounceable entitlement offer for ordinary shares at an offer price of $0.75 with 1 new option for every new
shared issued. These options are exercisable at $1 on or before 31 December 2021. The funding was used to
subscribe to complete the placement in De Grey Mining.

The directors have concluded as a result of the requirement to raise funds in the future there exists a material
uncertainty that may cast significant doubt regarding the group's and the Company's ability to continue as a going
concern and therefore, the group and Company may be unable to realise their assets and discharge their
liabilities in the normal course of business. Nevertheless, after taking into account the current financial position of
the Company, the directors have a reasonable expectation that the group and the Company will have adequate
resources to fund its future operational requirements and for these reasons they continue to adopt the going
concern basis in preparing the financial report.

Should the Group be unable to continue as a going concern, it may be required to realise its assets and
extinguish its liabilities other than in the ordinary course of business, and at amounts that differ from those stated
in the financial statements.

For personal use only

DGO Gold LImited

3. Significant accounting policies (continued)

This financial report does not include any adjustments relating to the recoverability and classification of recorded
asset amounts or the amounts or classification of liabilities and appropriate disclosures that may be necessary
should the Group be unable to continue as a going concern.

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.

(d) Employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long
service leave, and sick leave when it is probable that settlement will be required and they are capable of being
measured reliably. Liabilities recognised in respect of short-term employee benefits are measured at their
nominal values using the remuneration rate expected to apply at the time of settlement.

The Group recognises a liability for long service leave measured as the present value of expected future
payments to be made in respect of services provided by employees up to the reporting date using the projected
unit credit method. Consideration is given to expected future wage and salary levels, experience of employee
departures, and periods of service. Expected future payments are discounted using market yields at the reporting
date on high quality corporate bonds with terms to maturity and currencies that match, as closely as possible, the
estimated future cash outflows.

(e) Financial assets

Available for Sale (AFS) financial assets
Listed shares held by the Group that are traded in an active market are classified as AFS and are stated at fair
value. Investments in unlisted shares that are not traded in an active market but that are also classified as AFS
financial assets and stated at fair value (when the directors consider that fair value can be reliably measured).
Gains and losses arising from changes in fair value are recognised in other comprehensive income and
accumulated in the investments revaluation reserve, with the exception of impairment losses, interest calculated
using the effective interest method, and foreign exchange gains and losses on monetary assets, which are
recognised in profit or loss. Where the investment is disposed of or is determined to be impaired, the cumulative
gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit or loss.

Investments are recognised and derecognised on trade date where the purchase or sale of an investment is
under a contract whose terms require delivery of the investment within the timeframe established by the market
concerned, and are initially measured at fair value, net of transaction costs except for those financial assets
classified as at fair value through profit or loss which are initially measured at fair value.

Other financial assets are classified into the following specified categories: financial assets ‘at fair value through
profit or loss’, ‘held-to-maturity investments’, ‘available-for-sale’ financial assets, and ‘loans and receivables’.
The classification depends on the nature and purpose of the financial assets and is determined at the time of
initial recognition.

Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating
interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis for debt instruments other than those financial assets ‘at
fair value through profit or loss’.

Loans and receivables
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in
an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost
using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of financial assets
Financial assets, other than those at fair value through profit or loss, are assessed for indicators of impairment at
each reporting date. Financial assets are impaired where there is objective evidence that as a result of one
or more events that occurred after the initial recognition of the financial asset the estimated future cash flows of
the investment have been impacted.

For financial assets carried at amortised cost, the amount of the impairment is the difference between the assets
carrying amount and the present value of estimated future cash flows, discounted at the original effective interest
rate.

For personal use only

DGO Gold LImited

3. Significant accounting policies (continued)
(e) Financial assets (continued)

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with
the exception of trade receivables where the carrying amount is reduced through the use of an allowance
account. When a trade receivable is uncollectable, it is written off against the allowance account. Subsequent
recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying
amount of the allowance account are recognised in profit or loss.

With the exception of available-for-sale equity instruments, if, in a subsequent period, the amount of the
impairment loss decreases and the decrease can be related objectively to an event occurring after the
impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the
extent the carrying amount of the investment at the date the impairment is reversed does not exceed what the
amortised cost would have been had the impairment not been recognised.

In respect of available-for-sale- equity instruments, any subsequent increase in fair value after an impairment
loss is recognised directly in equity.

Derecognition of financial assets
The Group derecognises a financial asset only when the contractual rights to the cash flow from the asset expire,
or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and
continues to control the transferred asset, the Group recognises a retained interest in the asset and an
associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of
ownership of the transferred financial asset, the Group continues to recognise the financial asset and also
recognises a collateralised borrowing for the proceeds received.

(f)

Exploration and evaluation assets

An exploration and evaluation asset shall only be recognised in relation to an area of interest if the following
conditions are satisfied:

(i)
(ii)

the rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:




the exploration and evaluation expenditures are expected to be recouped through successful
development and exploitation of the area of interest, or alternatively, by its sale; or
exploration and evaluation activities in the area of interest have not at the reporting date
reached a stage which permits a reasonable assessment of the existence or otherwise of
economically recoverable reserves, and active and significant operations in, or in relation to, the
areas of interest are continuing.

Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable
area of interest. These costs are only carried forward to the extent that they are expected to be recouped
through the successful development of the area or where activities in the area have not yet reached a stage that
permits reasonable assessment of the existence of economically recoverable reserves. Accumulated costs in
relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the
area is made. Capitalised exploration and evaluation expenditure is also written off in circumstances where the
Board has made a determination in consideration of external indicators of impairment.

When production commences, the accumulated costs for the relevant area of interest are amortised over the life
of the area according to the rate of depletion of the economically recoverable reserves. A regular review is
undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in
relation to that area of interest.

(g)

Impairment of tangible and intangible assets

At each reporting date, the Group reviews the carrying amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Where the asset does not generate cash flows that are independent from other assets, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent
basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or
otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent
allocation basis can be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for
impairment annually and whenever there is an indication that the asset may be impaired. Recoverable amount is
the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset for which the estimates of future cash flows have
not been adjusted.

For personal use only

DGO Gold LImited

3. Significant accounting policies (continued)

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount,
the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss
is recognised in profit or loss immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is
increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised in
profit or loss immediately.

Exploration and evaluation are assessed for impairment when facts and circumstances suggest that the carrying
value of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the
exploration and evaluation asset (or the cash generating unit(s) to which it has been allocated, being no larger
than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an
impairment loss subsequently reverses, the carrying value of the asset is increased to the revised estimate of its
recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised in the previous years.

(h)

Income tax

Current tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the
taxable profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted or
substantively enacted by reporting date. Current tax for current and prior periods is recognised as a liability (or
asset) to the extent that it is unpaid (or refundable).
The current tax asset is calculated by reference to the estimated Research and Development tax refunds relating
to eligible research and development activities (R&D tax refunds) during the financial year. The Company and
the Group are expecting to receive research and development tax offset with respect to its research and
development activities.

Deferred tax
Deferred tax is accounted for using the balance sheet liability method. Temporary differences are differences
between the tax base of an asset or liability and its carrying amount in the balance sheet. The tax base of an
asset or liability is the amount attributed to that asset or liability for tax purposes.

In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are
recognised to the extent that it is probable that sufficient taxable amounts will be available against which
deductible temporary differences or unused tax losses and tax offsets can be utilised. However, deferred tax
assets and liabilities are not recognised if the temporary differences giving rise to them arise from the initial
recognition of assets and liabilities (other than as a result of a business combination) which affects neither
taxable income nor accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in
subsidiaries, except where the Group is able to control the reversal of the temporary differences and it is
probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets arising
from deductible temporary differences associated with these investments and interests are only recognised to the
extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the
temporary differences and they are expected to reverse in the foreseeable future.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s) when
the asset and liability giving rise to them are realised or settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted by reporting date. The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting
date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation
authority and the Group intends to settle its current tax assets and liabilities on a net basis.

Current and deferred tax for the period
Current and deferred tax is recognised as an expense or income in the income statement, except when it relates
to items credited or debited directly to equity, in which case the deferred tax is also recognised directly in equity.

(i)

Leased assets

Leases are classified as finance leases when the terms of the lease transfer substantially all the risks and
rewards incidental to ownership of the leased asset to the lessee. All other leases are classified as operating
leases.

For personal use only

DGO Gold LImited

3. Significant accounting policies (continued)

Group as lessee
Assets held under finance leases are initially recognised at their fair value or, if lower, at amounts equal to the
present value of the minimum lease payments, each determined at the inception of the lease. The corresponding
liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve
a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against
income, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance
with the Group’s general policy on borrowing costs. Contingent rentals are recognised as expenses in the periods
in which they are incurred.

Finance leased assets are amortised on a straight line basis over the estimated useful life of the asset.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except
where another systematic basis is more representative of the time pattern in which economic benefits from the
leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in
the period in which they are incurred.

(j)

Property, plant and equipment

Plant and equipment, leasehold improvements and equipment under finance lease are stated at cost less
accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition
of the item. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined
by discounting the amounts payable in the future to their present value as at the date of acquisition.

Depreciation is provided on property, plant and equipment, including freehold buildings but excluding land.
Depreciation is calculated on a straight line basis so as to write off the net cost or other revalued amount of each
asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over
the period of the lease or estimated useful life, whichever is the shorter, using the straight line method. The
estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting
period, with the effect of any changes recognised on a prospective basis.

(k)

Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made
of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a
provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the
present value of those cashflows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably.

(l)

Revenue

Revenue is recognised when it is probable that the economic benefit will flow to the Group and the revenue can
be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.

Government grants

Grants from the government are recognised at their fair value where there is reasonable assurance that the grant
will be received and the Group will comply with all the attached conditions. Government grants relating to costs
are deferred and recognised in profit or loss over the period necessary to match them with the costs they are
intended to compensate. Government grants relating to the purchase or development of assets, including
exploration and evaluation activities, are deducted from the carrying value of the asset unless the asset has
previously been written off in which case it is taken to income in profit or loss.

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.

For personal use only

DGO Gold LImited

3. Significant accounting policies (continued)

Other revenue

Other revenue is recognised when it is received or when the right to receive payment is established.

(m) Share-based payments

Equity-settled share-based payments with employees and others providing similar services are measured at the
fair value of the equity instrument at the grant date. Fair value is measured by use of the Black Scholes method.
The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of
non-transferability, exercise restrictions, and behavioural considerations.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-
line basis over the vesting period, based on the Group’s estimate of shares that will eventually vest.

Equity-settled share-based payment transactions with other parties are measured at the fair value of the goods
and services received, except where the fair value cannot be estimated reliably, in which case they are measured
at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the
counterparty renders the service.

For cash-settled share-based payments, a liability equal to the portion of the goods or services received is
recognised at the current fair value determined at each reporting date.

(n) Goods and services tax

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:

(i) where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as

part of the cost of acquisition of an asset or as part of an item of expense; or
for receivables and payables which are recognised inclusive of GST.

(ii)

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables.

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising
from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified
as operating cash flows.

4. Critical accounting judgements and estimates

In the application of the Group’s accounting policies, which are described in note 3, management is required to make
judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from
other sources. The estimates and associated assumptions are based on historical experience and various other factors
that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments.
Actual results may differ from these estimates.

The 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 if the revision affects only that period or in the period of the
revision and future periods if the revision affects both current and future periods.

The following are the critical judgements (apart from those involving estimations, which are dealt with below), that
management has made in the process of applying the Group’s accounting policies and that have the most significant
effect on the amounts recognised in the financial statements:

Impairment of assets and exploration and evaluation expenditure
The Company determines whether non-current assets should be assessed for impairment based on identified
impairment triggers. At each reporting date management assesses the impairment triggers based on their knowledge
and judgement.

5. Business and geographical segments

The Group operates predominately in one business segment being the evaluation and exploration of mineral deposits in
sediment hosted gold deposits in Australia.

For personal use only

DGO Gold LImited

Income taxes

The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense
in the financial statements as follows:

Loss from continuing operations
Income tax benefit calculated at 27.5% (2017: 27.5%)
Tax effects of amounts which are not assessable/ (deductible) in calculating
taxable income
Deferred tax assets not brought to account
Total tax benefit

Year ended
30/06/18
$
(611,890)
168,270

44,774
(213,044)
-

Year ended
30/06/17
$
(201,964)
55,540

(627,401)
571,861
-

(i) The tax rate used in the above reconciliation is the corporate tax rate of 27.5% payable by Australian corporate

entities on taxable profits under Australian tax law.

Unrecognised deferred tax balances

The following deferred tax assets have not been brought to account:
-Share issue costs
-Tax losses revenue

Year ended
30/06/18
$

Year ended
30/06/17
$

30,422
6,929,140
6,959,562

16,829
5,880,059
5,896,888

No deferred tax asset has been recognised as it is not considered probable that there will be sufficient future taxable
profits available against which the unused tax losses can be utilised in the foreseeable future. The Company and
consolidated group are not in a tax consolidated group.

Recognised deferred tax assets and liabilities

Deferred tax assets
Tax losses revenue
Accruals
Employee entitlements

Deferred tax liabilities:

Exploration and evaluation expenditure
Prepayments
Deferred tax liability

7. Cash and cash equivalents

Cash at Bank

Year ended
30/06/18
$

Year ended
30/06/17
$

428,741
24,989
4,259

145,959
5,871
2,166

(451,670)
(6,319)
-

(151,231)
(2,765)
-

Year ended
30/06/18
$

Year ended
30/06/17
$

1,625,441

959,279

For personal use only

DGO Gold LImited

8. Trade and other receivables

Current
Prepayments
Deposits (i)
Goods and services tax receivable

Year ended
30/06/18
$

Year ended
30/06/17
$

22,979
483,827
65,516
572,322

10,054
-
19,251
29,305

(i)

In May 2018 the Company paid a $250,000 deposit for an upcoming placement in De Grey Mining Limited. The
shares under this placement were issued on 11 July 2018. Refer Note 28 for further details.

The remaining $233,827 relates to refundable prepayments of rent for the first year of the term of exploration
licences applied for in Western Australia.

(ii) At 30 June 2018 there were no receivables that were past due or impaired.

9. Assets classified as held for sale

Available for sale investments carried at fair value
Quotes shares – Talisman Mining Limited (i)

Year ended
30/06/18
$

Year ended
30/06/17
$

60,638
60,638

50,000
50,000

(i) During the 2016 financial year, the Company acquired 212,766 quoted shares in Talisman Mining Limited for the
consideration of $100,000. The Directors have determined that the fair value of the shares in Talisman Mining
Limited was $60,638 as at 30 June 2018 ($50,000 as at 30 June 2017) which has been based on the quoted price
of the Talisman Mining Limited shares as at that date. The resulting difference between the consideration and fair
value as on acquisition has been recorded as movement in other comprehensive income of $10,638 in 2018.

The directors have made the decision to sell the available for sale investments in the next 12 months and as a
result of this decision, the Talisman Mining Limited shares have been classified as Assets classified as held for
sale in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations.

For personal use only

DGO Gold LImited

10. Property, plant and equipment

Cost

Balance at 1 July 2016
Additions
Balance at 30 June 2017

Accumulated depreciation
Balance at 1 July 2016
Depreciation expense
Balance at 30 June 2017

Motor
vehicles at
cost

38,568

(26,106)
(3,280)
(29,386)

Leasehold and
freehold
improvements
at cost
$

Furniture
at cost

Other plant and
equipment at
cost

Total

3,506
-
3,506

(3,010)
(327)
(3,337)

13,670
-
13,670

(8,674)
(994)
(9,668)

142,957
-
142,957

198,701
-
198,701

(142,106)
(560)
(142,666)

(179,896)
(5,161)
(185,057)

Net book value as at 30 June 2017

9,182

169

4,002

291

13,644

Cost

Balance at 1 July 2016
Additions
Balance at 30 June 2018

Accumulated depreciation
Balance at 1 July 2017
Depreciation expense
Balance at 30 June 2018

Motor
vehicles at
cost

38,568
-
38,568

(29,386)
(2,066)
(31,452)

Leasehold and
freehold
improvements
at cost
$

Furniture
at cost

Other plant and
equipment at
cost

Total

3,506
-
3,506

13,670
7,713
21,383

142,957
2,350
145,307

198,701
10,063
208,764

(3,337)
(169)
(3,506)

(9,668)
(4,058)
(13,726)

(142,666)
(803)
(143,469)

(185,057)
(7,096)
(192,153)

Net book value as at 30 June 2018

7,116

7,657

1,838

16,611

The following useful lives are used in the calculation of depreciation:

Leasehold and freehold improvements
Motor vehicles
Furniture
Other plant and equipment

10 – 40 years

5 –12 years
10 – 20 years
3 – 25 years

For personal use only

DGO Gold LImited

11. Exploration and evaluation expenditure

Gross carrying amount balance:
Balance at beginning of financial year
Additions
Balance at end of the financial year

Grant Revenue from research and development tax offset applied to exploration
and evaluation expenditure
Balance at beginning of financial year
Research and development tax offset
Balance at end of financial year
Net book value at end of financial year (i)

Year ended
30/06/18
$

Year ended
30/06/17
$

618,059
1,326,538
1,944,597

151,393
466,666
618,059

(68,127)
(234,033)
(302,160)
1,642,437

-
(68,127)
(68,127)
549,932

(i) The exploration and evaluation expenditure for the Group represents capitalised costs of exploration areas of
interest carried forward as an asset in accordance with the accounting policy set out in note 3 (f). The ultimate
recoupment of the exploration and evaluation expenditure in respect of the areas of interest carried forward is
dependent upon the discovery of commercially viable reserves and the successful development and exploitation of
the respective areas or alternatively the sale of the underlying areas of interest for at least their carrying value.
Amortisation, in respect to each relevant area of interest is not charged to the income statement until a mining
operation is ready for commencement or when tenements are relinquished.

12. Trade and other payables

Trade payables (i)
Subscription liability (ii)
Other – accrued expenses
Other – PAYG payable

Year ended
30/06/18
$
95,701
315,456
90,869
8,410
510,436

Year ended
30/06/17
$

93,383
-
21,350
3,431
118,164

(i) The average credit period on purchases of goods is 30 days. No interest is charged on the trade payables.
(ii) During the year the Company received payments in advance for the non-renounceable entitlement offer announced
on the ASX on 4 July 2018. As at 30 June 2018 the amounts were refundable should the raising not proceed and
as a result these amounts are shown as a Subscription Liability above.

13. Provisions

Current
Employee benefits (i)

Year ended
30/06/18
$

Year ended
30/06/17
$

15,489
15,489

7,877
7,877

(i) The Group’s current employee benefits are represented by provisions for long service leave totalling $15,489 in
2018, and annual leave totalling $7,877 in 2017. The average number of employees during the current financial
year was 5 employees.

For personal use only

DGO Gold LImited

14. Issued capital

Fully paid ordinary shares

Fully paid ordinary shares
Balance at beginning of financial year
Issue of shares under entitlements offer
Issue of shares under private placements
Issue of shares under option conversion
Share issue costs
Balance at end of financial year

Number of shares on issue

Balance as at beginning of the year
Issue of shares under entitlements offer (i)
Issue of shares under private placements (ii)
Issue of shares under private placements (iii)
Issue of shares under option conversion (iv)
Balance as at the end of the year

Number of options on issue

Balance as at beginning of the year
Issue of options under entitlements offer (i)
Issue of options under private placements (ii)
Issue of options under private placements (iii)
Exercise of options (iv)
Balance as at the end of the year

Year ended
30/06/18
$
23,749,024

Year ended
30/06/17
$
21,232,367

21,232,367
-
1,174,542
1,434,291
(92,176)
23,749,024

20,350,768
724,667
217,398
-
(60,466)
21,232,367

Year Ended
30/06/18
No.
9,565,527
-
-
1,948,162
3,585,726
15,099,415

Year ended
30/06/18
$

Year Ended
30/06/18
No.
3,768,259
-
-
698,162
(3,585,726)
880,695

Year Ended
30/06/17
No.
5,797,268
2,898,666
869,593
-
-
9,565,527

Year ended
30/06/17
$

Year Ended
30/06/17
No.

-
2,898,666
869,593
-
-
3,768,259

(i) On 22 June 2017 the Company issued 2,898,666 fully paid ordinary shares at an issue price of $0.25 (25 cents)
and 2,898,666 free attaching options exercisable at $0.40 on or before 30 June 2020 pursuant to the non-
renounceable entitlement offer.

(ii) On 26 June 2017, the Company completed a placement of a total of 869,593 fully paid ordinary shares at an issue
price of $0.25 (25 cents) per share and 869,593 free attaching options exercisable at $0.40 on or before 30 June
2020.

(iii) On 7 September 2017, through a private placement, the Company issued 698,162 fully paid ordinary shares at an
issue price of $0.25. Attached to these shares were 698,162 options exercisable at $0.40 on or before 30 June
2020. On 4 April 2018 the Company issued 1,250,000 fully paid ordinary shares at an issue price of $0.80.

(iv) During the year 3,585,726 $0.40 options were exercised, raising $1,434,291.

Share options on issue as at 30 June 2018
A total of 880,695 options exercisable at $0.40 on or before 30 June 2020 (DGOAI) are on issue.

Capital Management
Management controls the capital of the group in order to fund its operations and continue as a going concern. The
Group does not have any externally imposed capital requirements.

For personal use only

DGO Gold LImited

15. Reserves

Option premium reserve (i)
Share revaluation reserve (ii)

Year ended
30/06/18
$

Year ended
30/06/17
$

300,652
10,638
311.290

300,652
-
300,652

(i) The option premium reserve is a result of options being provided to directors.
(ii) The share revaluation reserve is due to the change in value of shares owned in Talisman Mining Limited.

16. Accumulated losses

Balance at beginning of financial year
Net loss attributable to members of the parent entity
Balance at end of financial year

17. Loss per share

Loss per share
Basic and diluted loss per share (cents per share)

Year ended
30/06/18
$
20,056,900
611,890
20,668,790

Year ended
30/06/17
$
19,854,936
201,964
20,056,900

Year ended
30/06/18
Cents per
share

Year ended
30/06/17
Cents per
share

(5)

(3)

Basic (loss) per share from continuing and discontinued operations
The net (loss) and weighted average number of ordinary shares used in the calculation of basic (loss) per share from
continuing and discontinued operations are as follows:

Net (loss)

Weighted average number of ordinary shares used in the calculation of basic (loss)
per share

Year ended
30/06/18
$

Year ended
30/06/17
$

(611,890)

(201,964)

Year Ended
30/06/18
No.

Year Ended
30/06/17
No.

10,845,763

5,880,654

Options could potentially dilute basic loss per share in the future but were not included in the calculation of diluted
earnings per share for 2018 or 2017 as they were anti-dilutive.

18. Dividends

There were no dividends paid or proposed during the current or previous financial year.

For personal use only

DGO Gold LImited

19. Commitments

Various state government departments require holdings of mining tenement to pay rent, rates and to meet minimum
exploration expenditures. The Group can apply to relinquish its mining tenements at any time thereby extinguishing its
obligations to meet its rental obligations and minimum exploration expenditure on the mining tenements. Any variations
to the terms of the current and future tenement holdings, the granting of new tenements and changes at renewal or
expiry, will change the minimum exploration expenditures relating to the tenements.

The expected outlays (that can be extinguished at any time) for granted tenements are as follows:-

Exploration and evaluation expenditure
No longer than 1 year
Longer than 1 year and not longer than 5 years
Longer than 5 years

20. Subsidiaries

Name of entity

Country of incorporation

Parent entity
DGO Gold Limited (i),(ii)
Subsidiaries
Yandan Gold Mines Pty Ltd (i),(ii)

Australia

Year ended
30/06/18
$

Year ended
30/06/17
$

1,736,883
3,356,895
-
5,093,778

1,145,195
3,020,195
-
4,165,390

Ownership interest

2018
%

2017
%

100

(i) The parent and the subsidiaries are not within a tax consolidated group.
(ii) There are no significant restrictions of the ability of the Group to use any of the Group’s assets to settle the

liabilities of the Group.

21. Notes to the statement of cash flows

(a) Reconciliation of cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents includes cash on hand and in banks and
investments in money market instruments, net of outstanding bank overdrafts. Cash and cash equivalents at the end of
the financial year as shown in the cash flow statement is reconciled to the related items in the statement of financial
position as follows:

Cash and cash equivalents

Year ended
30/06/18
$
1,625,441

Year ended
30/06/17
$
959,279

Reconciliation of (loss)/profit for the period to net cash flows from operating activities

Year ended
30/06/18
$

(611,890)
(4,294)
7,096
-

(46,265)
(12,925)
-

36,210
7,612

(624,456)

Year ended
30/06/17
$
(201,964)
(3,899)
5,161
30,851

(2,281)
409
260,429

(46,353)
-

42,353

Net (loss) for the year
Interest income
Depreciation
Impairment quoted securities
Decrease/(increase) in assets:

Trade and other receivables
Prepayments
Government grant receivable
(Decrease)/increase in liabilities:
Trade and other payables
Provision – Employee benefits
Net cash used from operating activities

For personal use only

DGO Gold LImited

22. Contingent liabilities and contingent assets

The Directors are not aware of any contingent liabilities or contingent assets that are likely to have a material effect on
the results of the Group as disclosed in these financial statements.

23. Financial instruments

(a) Financial risk management objectives
The Board monitors and manages the financial risk relating to the operations of the Group. The Group’s activities
include exposure to market risk, fair value interest rate risk, credit risk, liquidity risk and cash flow interest rate risk. The
overall risk management program focuses on the unpredictability of the finance markets and seeks to minimise the
potential adverse effects on the financial performance. Risk management is carried out under the direction of the Board
of Directors.

There have been no substantive changes to the Group’s exposure to financial instrument risk, its objectives, polices and
processes for managing those risks or the methods to measure them form previous periods throughout these financial
statements.

(b) Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset,
financial liability and equity instrument are disclosed in note 3 to the financial statements.

(c) Market price risk
The Group is involved in the exploration and development of mining tenements for base metals including gold and
copper. Revenue associated with metal sales, and the ability to raise funds through equity and debt are dependent upon
the commodity price for resources. Currently the Group does not have any revenue from metal sales.

(d) Interest rate risk
There is a limited amount of interest rate risk relating to the cash and cash equivalents that the Company holds in
deposits. The Group will be exposed to further interest rate risk if it intends to borrow funds in the future for acquisition
and development.

(e) Credit risk management
The maximum credit risk equals the carrying amount of the financial assets as recognised in the Statement of Financial
Position.

(f) Fair value of financial instruments
The fair values of financial assets and financial liabilities are determined as follows:



the fair value of financial assets and financial liabilities with standard terms and conditions and traded on
active liquid markets are determined with reference to quoted market prices; and
the fair value of other financial assets and financial liabilities (excluding derivative instruments) are determined
in accordance with generally accepted pricing models based on discounted cash flow analysis; and
the Directors consider that the carrying amounts of financial assets and financial liabilities recorded at
amortised cost in the financial statements approximate their fair values.

Due to their short term nature, the carrying amounts of financial assets and financial liabilities approximate the fair
values.

(g) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who has 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 monitoring forecast and actual cash flows and
working capital and matching the maturity profiles of financial assets, expenditure commitments and liabilities.

(h) Cash flow and interest rate risk
The Group’s income and operating cash flows are not materially exposed to changes in market interest rates.

(i) Capital risk management
The Group manages its capital to ensure that it will be able to continue as a going concern. The capital structure of the
Group includes equity attributable to equity holders of the parent, comprising of issued capital, reserves and
accumulated losses as disclosed in notes 14, 15 and 16 respectively. The Group operates its exploration and
evaluation activities through its wholly owned subsidiary. None of the Group’s entities are subject to externally imposed
capital requirements. The Group intends to use a variety of capital market issues to meet anticipated funding
requirements. The Group currently has no short-term or long-term borrowings. The Group does not have any unused
credit facilities.

For personal use only

DGO Gold LImited

23. Financial instruments (continued)

Fair value measurements recognised in the consolidated statement of financial position
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at
fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.



Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for
identical assets or liabilities.
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level
1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices).
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset
or liability that are not based on observable market data (unobservable inputs).

2018

Level 1

Level 2

Level 3

Total

Available held for sale
Quoted securities in Talisman Mining Limited

60,638
60,638

-
-

60,638
60,638

2017

Level 1

Level 2

Level 3

Total

Available-for-sale financial assets
Quoted securities in Talisman Mining Limited

50,000
50,000

-
-

50,000
50,000

There were no transfers between level 1 and 2 in the period.

Liquidity and interest risk tables
The following tables detail the Group’s remaining contractual maturity for its non-derivative financial assets and
liabilities. The tables have been drawn up based on undiscounted cash flows and detail the Group’s exposure to liquidity
and interest rate risk as at 30 June 2017 and 30 June 2018:

2018

Weighted
average
effective
interest rate
%

Financial assets
Non-interest bearing
Variable interest rate instrument

-
0.62

Financial liabilities
Non-interest bearing

2017

Weighted
average
effective
interest rate
%

Financial assets
Non-interest bearing
Variable interest rate instrument

-
0.62

Financial liabilities
Non-interest bearing

Less than 1
month

1-3 months

3 months to
1 year

1-5 years

5 + years

Total

315,516
1,625,441
1,940,957

233,827
-
233,827

487,386
487,386

23,050
23,050

-
-
-

-
-

-
-
-

-
-

-
-
-

-
-

549,343
1,625,441
2,174,784

510,436
510,436

Less than 1
month

1-3 months

3 months to
1 year

1-5 years

5 + years

Total

19,251
959,279
978,530

-
-
-

84,814
84,814

33,350
33,350

-
-
-

-
-

-
-
-

-
-

-
-
-

-
-

19,251
959,279
978,530

118,164
118,164

For personal use only

DGO Gold LImited

24. Key management personnel compensation

Short-term employee benefits
Post-employment benefits
Other long-term benefits
Termination benefits
Share-based payment

25. Related party transactions

Year ended
30/06/18
$
265,000
18,050
15,489
-
-
298,539

Year ended
30/06/17
$
275,050
18,050
-
-
-
293,100

(a) Equity interests in related parties
Equity interest in subsidiary
Details of the percentage of ordinary shares held in the subsidiary are disclosed in note 20 to the financial statements.

(b) Transactions with key management personnel
Key management personnel compensation
The aggregate compensation made to key management personnel are disclosed in note 24 of the financial
statements and details of the compensation made to key management personal has been provided in the
Remuneration Report which forms part of the Directors’ Report. Included in the Remuneration Report includes is a
payment of $75,000 (net of GST) (2017: $85,050) for Company Secretarial Services to Kaus Australis Pty Ltd a related
party of Mr. Michael Ilett.

Other related party transactions

Exploration Drill Rigs Pty Ltd, a company related to Mr. Michael Ilett and Mr. Ross Hutton, provides the DGO Gold Ltd
with office accommodation, outgoings, telephone, electricity and receptionist services for a total of $18,450 (2017:
$19,637) per annum excluding goods and services tax.

Lion Capital Management Pty Ltd, a company related to Mr. J B Parncutt, provided DGO Gold Ltd with office
accommodation, outgoings, telephone, electricity, director travel expenses, Executive Assistant and Analyst Services for
a total of $54,899 in 2018 (2017: $nil) excluding goods and services tax. Included in the Remuneration Report is a
payment of $5,200 (net of GST) for CFO Services to Lion Capital Management Pty Ltd a related party of Mr. J. B.
Parncutt.

26. Parent entity disclosures

The parent entity in the Group is DGO Gold Limited which was incorporated in Brisbane, Australia on 5 April 2007.

Financial position

Current assets
Non-current assets

Total assets

Current liabilities
Non-Current Liabilities

Total Liabilities

Issued capital
Accumulated losses
Share revaluation reserve
Option Premium Reserve

Total equity

Total equity and liabilities

Year ended
30/06/18
$

3,629,560
16,611

3,646,171

473,182
-

473,182

Year ended
30/06/17
$
1,037,914
424,145

1,462,059

126,041
-

126,041

25,900,737
(22,039,039)
10,638
300,652

23,384,080
(22,348,714)
-
300,652

3,172,988

1,336,018

3,172,988

1,462,059

For personal use only

DGO Gold LImited

26. Parent entity disclosures (continued)

Financial performance

Loss for the year

Other comprehensive income

Total comprehensive (loss)

27. Remuneration of auditors

Auditor of the parent entity

Year ended
30/06/18
$

Year ended
30/06/17
$

(690,325)
10,638

(679,687)

(164,708)
-

(164,708)

Audit and review of financial statements – BDO Audit Pty Ltd
Other services – BDO (QLD) Pty Ltd

43,278
9,181

52,459

41,200

The auditor of DGO Gold Limited is BDO Audit Pty Ltd. BDO also supplies consulting work to DGO Gold Limited on an
as required basis, including taxation advice.

28. Events after the reporting date

The Company announced an issue of 6,545,587 fully paid ordinary shares at an issue price of 75 cents per share and
6,545,587 free attaching options exercisable at $1 cent per share on or before 31 December 2020 to various
shareholders pursuant to a non-renounceable entitlement offer announced on the ASX on 4 July 2018.

On 11 July 2018 DGO Gold Limited was issued with 25 million shares at 20c per share, 12,500,000 options exercisable
at $0.25 by 30 November 2019, and 12,500,000 options exercisable at $0.30 by 30 May 2021 in De Grey Mining
Limited under the terms and conditions of the Share Subscription Agreement with De Grey Mining Limited dated 22 May
2018.

For personal use only

DGO Gold LImited

Directors’ declaration

The directors of the Company declare that:

1. The financial statements, comprising the consolidated statement of profit or loss and other comprehensive
income, consolidated statement of financial position, consolidated statement of cash flows, consolidated
statement of changes in equity and accompanying notes, are in accordance with the Corporations Act 2001
and:

comply with Australian Accounting Standards and the Corporations Regulations 2001; and

a.
b. give a true and fair view of the Group’s financial position as at 30 June 2018 and of its performance

for the year ended on that date.

2. The Company has included in the notes to the financial statements an explicit and unreserved statement of
compliance with International Financial Reporting Standards as issued by International Accounting Standards
Board.
In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable.

4. The remuneration disclosures included in pages 8 to 12 of the directors’ report (as part of audited
Remuneration Report), for the year ended 30 June 2018, comply with section 300A of the Corporations Act
2001.

5. The directors have been given the declarations by the executive chairman and chief financial officer required

by section 295A of the Corporations Act 2001.

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the
directors by:

Eduard Eshuys
Executive Chairman
Melbourne, 12 September 2018

For personal use only

Tel: +61 7 3237 5999
Fax: +61 7 3221 9227
www.bdo.com.au

Level 10, 12 Creek St
Brisbane QLD 4000
GPO Box 457 Brisbane QLD 4001
Australia

INDEPENDENT AUDITOR'S REPORT

To the members of DGO Gold Limited

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of DGO Gold Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2018, 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 report, including a summary of significant accounting policies and the directors’
declaration.

In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:

(i)

Giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its
financial performance for the year ended on that date; and

(ii)

Complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.

Material uncertainty related to going concern

We draw attention to Note 3(b) in the financial report which describes the events and/or conditions
which give rise to the existence of a material uncertainty that may cast significant doubt about the
group’s ability to continue as a going concern and therefore the group may be unable to realise its
assets and discharge its liabilities in the normal course of business. Our opinion is not modified in
respect of this matter.

For personal use onlyKey audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.

Recoverability of exploration and evaluation assets

Key audit matter

How the matter was addressed in our audit

Refer to notes 4 and 11 in the financial report

Our procedures included, but were not limited to the

The Group carries exploration and evaluation assets as

following:

at 30 June 2018 in relation to the application of the

 Obtaining from management a schedule of areas

Group’s accounting policy for exploration and

of interest held by the Group and assessed as to

evaluation assets, as set out in note 3(f).

whether the Group had rights of tenure over the

The recoverability of exploration and evaluation asset

is a key audit matter due to:



The significance of the total; and

The level of procedures undertaken to

evaluate management’s application of the

requirements of AASB 6 Exploration for and

Evaluation of Mineral Resources (‘AASB 6’) in

light of any indicators of impairment that may

be present.

relevant exploration areas by obtaining external

confirmation from the relevant government

agency and also considered whether the Group

maintains tenements in good standing.

 Making enquiries of management with respect to

the status of ongoing exploration programs in the

respective areas of interest and assessing the

Group's cashflow budget for the level of

budgeted spend on exploration projects and held

discussions with directors of the Group as to

their intentions and strategy

 Considered whether any areas of interest had

reached a stage where a reasonable assessment

of economically recoverable reserves existed.

 Considered whether there are any other facts or

circumstances that existed to indicate

impairment testing was required.



Enquiring of management, reviewing ASX

announcements and reviewing directors' minutes

to ensure that the Group had not decided to

discontinue activities in any applicable areas of

interest and to assess whether there are any

other facts or circumstances that existed to

indicate impairment testing was required.

We also assessed the adequacy of the related

disclosures in Note 4, Note 11 and Note 3(f) to the

financial statements.

For personal use onlyOther information

The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2018, but does not include the
financial report and the auditor’s report thereon.

Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.

In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:

http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf

This description forms part of our auditor’s report.

For personal use onlyReport on the Remuneration Report

Opinion on the Remuneration Report

We have audited the Remuneration Report included in pages 8 to 12 of the directors’ report for the
year ended 30 June 2018

In our opinion, the Remuneration Report of DGO Gold Limited for the year ended 30 June 2018,
complies with section 300A of the Corporations Act 2001.

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.

BDO Audit Pty Ltd

T R Mann
Director

Brisbane, 12 September 2018

For personal use onlyDGO Gold LImited

Unaudited additional ASX and other information as at 10 September 2018
Number of holders of equity securities
21,645,002 fully paid ordinary shares are held by 631 individual shareholders. All issued ordinary shares carry one vote
per share. There is not a market buyback occurring.

Distribution of holders of equity securities

100,001 and Over

50,001 to 100,000

10,001 to 50,000

5,001 to 10,000

1,001 to 5,000

1 to 1,000

Total

Fully paid
Ordinary
Shares

19,094,169

88.22

973,674

902,861

229,251

336,316

108,731

4.50

4.17

1.06

1.55

0.50

21,645,002

100.00

Line
item

Holding less than a marketable parcel

77,844

Twenty largest shareholders of quoted equity securities

Ordinary shareholders

A/C Designation

Fully paid ordinary shares

Number

Percentage

GINGA PTY LTD

NATIONAL NOMINEES LIMITED

CAIRNGLEN INVESTMENTS P/L

WOODFORD SUPER FUND

ANDAMA HOLDINGS PTY LTD

4,524,333

3,907,152

3,225,000

2,707,783

ESHUYS SUPER PTY LTD

1,287,453

CAIRNGLEN INVESTMENTS PTY LTD

RESOURCE SURVEYS PTY LTD

RESOURCE SURVEYS S/F

SHERATAN PTY LTD

GEE NOMINEES PTY LTD

R & M SUPERANNUATION FUND

RESOURCE SURVEYS PTY LTD

RESOURCE SURVEYS S/F

RESOURCE SURVEYS PTY LTD

BNP PARIBAS NOMINEES PTY LTD

GEE NOMINEES PTY LTD

MR BRICE KENNETH MUTTON & MRS GAI MUTTON

MRS MARJORIE CLARE ESHUYS

SCINTILLA STRATEGIC INVESTMENTS LIMITED

CITICORP NOMINEES PTY LIMITED

CAIRNGLEN INVESTMENTS PTY LTD

EST TREVOR NEIL HAY

MR ALEXANDER ANGELO EPIS & MS ENA PHILLIPS

995,177

420,000

325,000

270,000

258,246

200,000

189,056

165,000

145,669

135,060

120,000

111,040

108,200

93,752

91,500

20.90

18.05

14.90

12.46

5.95

4.60

1.94

1.50

1.25

1.19

0.92

0.87

0.76

0.67

0.62

0.61

0.51

0.50

0.43

0.42

Total

Balance of register

Grand total

19,279,421

2,365,581

89.07

10.93

21,645,002

100.00

For personal use onlyDGO Gold LImited

Substantial shareholders

GINGA PTY LTD

LION NOMINEES LIMITED

CAIRNGLEN INVESTMENTS P/L

ANDAMA HOLDINGS PTY LTD

EDUARD ESHUYS

Ordinary shareholders

Fully Paid Shares

Number

4,524,333

2,340,250

4,353,377

2,696,247

2,308,259

16,222,466

TOTAL
(i)

These are shares in which the Director’s individually hold a relevant interest or hold an interest through a related
party.

Tenements held
The following table details the list of mineral tenements granted and under application:

Tenements - Granted

Tenements Applications

Area
(km2)

Western Australia

Eastern Goldfields

Mt Edwards

E15/1465, 1488, 1514

Ora Banda

P24/4946 - 4956

Black Flag

P24/4986 - 4992, E24/197

Deleta
Lake Randall JV

Pilbara

Mallina
Fortescue Group

E15/1573

E47/3327 - 3329

E45/5031 – 5035

656

213

3,363

E38/3343-3344

E45/5030, E45/5084
E46/1203-1204
E46/1207-1208
E46/1228-1229
E47/3898
E47/3900-3901
E47/3909

E51/1590, 1729, 1730,
1748 – 1753 1833

E51/1897

1,702

6,115

EL5770, EL5812, EL5946

EL5737, EL5876, EL5877
EL6036 EL6209
EL5813

E2018/120

Wirrabara

EL6237

E2017/00053

328

1228

145

755

Murchison

Yerrida Basin

Sub-Total

South Australia

Adelaide Fold Belt

Mt Barker

Dawson
Yerelina

For personal use only

DGO Gold LImited

Stuart Shelf
Bookaloo

Pernatty

Sub-Total

TOTAL

EL6030

EL6145

490

269

3,215

9,330

Competent person statement
Exploration or technical information in this release has been prepared by Mr. David Hamlyn, who is a part time
employee of DGO Gold Limited and a Member of the Australian Institute of Mining and Metallurgy. Mr. Hamlyn has
sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code). Mr. Hamlyn consents to the report being
issued in the form and context in which it appears.

For personal use only