Dome Gold Mines
Annual Report 2016

Plain-text annual report

ANNUAL REPORT 30 JUNE 2016 DOME GOLD MINES LIMITED ABN 49 151 996 566 FIJI Figure 1 – Tenement Location Map Yasawa Islands Yadua Vanua Levu Qamea Laucala Tavenui LABASA Rabi Mamanuca Islands SPL1454 Viti Levu NADI SPL1452 SIGATOKA SPL1495 SUVA Beqa Vatulele SPL1451 VUNISEA Ono Kadavu Yacata Koro LOMA LOMA Makogai Wakaya Vatu Vara Batiki Nairai Gau Koro Sea Moala Cicia Tuvuca Nayau Lakeba Oneata Moce Namuka-i-lau Totoya Kabara FIJI New Caledonia Australia South Pacific Ocean New Zealand 2 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 3 CONTENTS 4 5 25 26 27 28 29 30 31 55 56 59 61 CHAIRMAN’S MESSAGE DIRECTORS’ REPORT AUDITOR’S INDEPENDENCE DECLARATION DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT 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 CONSOLIDATED FINANCIAL STATEMENTS DIRECTORS’ DECLARATION INDEPENDENT AUDITOR’S REPORT ASX ADDITIONAL INFORMATION CORPORATE DIRECTORY 2 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 3 Dome Gold Mines Ltd and its controlled entities CHAIRMAN’S MESSAGE Chairman’s Message Dear Shareholder Dear Shareholder, I am pleased to present Dome’s Annual Report for the year ended 30 June 2016. Welcome to Dome Gold Mines Limited’s second Annual Report since listing on the Australian Securities The past year has been one of mixed fortunes, with significant advances made on our flagship project, the Sigatoka Iron Exchange in October 2013. This report covers the 12 month period to 30 June 2015, a year in which your Sands, while activity on our Ono Island Gold and Namoli-Wainivau Copper-Gold Projects has been subdued due to lack Company took a major leap forward with the acquisition of a 100% interest in Magma Mines Limited, of funding for field work. Nevertheless, we remain enthusiastic about our gold and copper projects and believe that once bringing Magma’s wholly owned Sigatoka Iron Sands project into Dome’s portfolio. that will yield exciting results. sufficient funding is available, we will be able to proceed rapidly with geophysical and drilling programs at those projects Sigatoka is an attractive mineral sands mining project that is now Dome’s flagship and will, we believe, become a successful dredge mining operation within two years. Since acquiring Magma, Dome has Even though activities have been constrained over the past year, we have been able to move the Sigatoka Project forward produced a maiden JORC 2012 Resource Estimate for the Sigatoka project, which then became the basis of a pre-feasibility study. That study indicated robust economics for a sand dredging operation that would by the achievement of several important milestones. Two events in particular stand out. Last October we received formal produce 351,000 tpa of magnetite sand (an iron ore), as well as 260,000 tpa of non-magnetic heavy approval of our Environmental Impact Assessment (‘EIA’) Report for Sigatoka. Acceptance of this report by the Government mineral sand concentrate, nearly 2 million tpa of industrial sand and 684,000 tpa of gravel. This mix of of Fiji opened the way for Dome to lodge an application for a mining lease (‘ML’) late in 2015 to cover the proposed project products would give Sigatoka a competitive edge compared with other iron ore producers and the low area. Government officials are now examining the ML application and EIA as part of the normal mining approval process. capital cost and superb location at the Sigatoka River mouth only add to the commercial strength of our project. No obstacles have so far been raised by those officials but the evaluation process is perhaps taking longer than usual, primarily due, it would appear, to delays resulting from the impact of the two tropical cyclones that hit Fiji early in 2016. Although no new drilling was completed at Sigatoka during the year, Dome was able to undertake further quality circumstances it is quite understandable that there will be delays in the resumption of normal business by Government. The first of those cyclones was particularly severe, causing much damage, especially in the north of the country. In these Dome has also completed an Environmental Impact Assessment report for Sigatoka and has recently had the exploration tenement that covers the project (SPL 1495) renewed for three years. The next steps at Sigatoka will include further resource drilling, both onshore at Koroua Island, and offshore from the river mouth, where there is excellent potential for additional resources with good grades. We will also soon be assessment studies on the sand deposit. A quantity of washed sand that was produced during a pilot plant test program on applying for a mining lease over the project and moving on to undertake a Definitive Feasibility Study. a Sigatoka bulk sample was submitted for chemical analysis and mineralogical examination. The results confirmed that the Discussions have already been held with a number of overseas entities that could supply dredging sand from this deposit is physically suitable for use in concrete and qualifies as industrial sand. This is important, as a very large equipment, project finance and markets for our products. part of the revenue from a mining operation at Sigatoka is expected to come from the sale of industrial sand, which thus With its strong potential for stable cash flow, Sigatoka is rightly our flagship project and we intend to becomes a key economic driver for the entire project, regardless of the prevailing price for magnetite sand as an iron ore. continue to put our prime focus on bringing Sigatoka to production as soon as possible. Investigations in the past year at our other iron sand project, the Nasivi Delta, have not given us the encouragement we sought and accordingly, the Company will relinquish that tenement (SPL 1454) in the near future, allowing Company continued its contribution to the social and economic wellbeing of the communities in which we operate. This us to concentrate on Sigatoka. Dome takes its corporate citizen responsibilities in Fiji very seriously and although our field activities were subdued, the was expressed principally over the past year as assistance provided to schools in relation to classroom equipment and students in those schools. building and maintenance supplies, the provision of which has significantly improved the educational experience of the Elsewhere, we have completed geological programs at both our Kadavu Islands gold-silver project (SPL 1451), 90km south of Viti Levu, and the Nadrau Porphyry Copper-Gold project (SPL 1452), in the highlands of Viti Levu. Encouraging results were generated in each case. At Kadavu it is Ono Island that has With signs of a turnaround in sentiment towards junior resource companies emerging in the Australian market, particularly in emerged as the primary target, with the identification of two large, high sulphidation epithermal gold respect of gold, Dome is moving ahead with its plans for the exploration of its Ono Island Gold Project. The Company has systems. At Nadrau, we have now recognised two key targets – Namoli and Wainivau – each of which outlined at surface two adjacent, high sulphidation epithermal gold prospects on Ono that are believed to offer excellent exhibits clear porphyry style copper mineralisation parameters. The next step at both Ono Island and the potential for the discovery of a substantial gold deposit, analogous with other such deposits around the Pacific Rim of Fire. Namoli-Wainivau pair is expected to be an induced polarisation (IP) geophysical survey that should help The first part of the new program will be an Induced Polarisation (‘IP’) geophysical survey that will help delineate drill targets delineate targets for exploration drilling in the future. for the following phase of exploration. The IP survey is currently scheduled for the August to October period of 2016. Drilling will ensue as soon as possible thereafter, subject to funding. The appointment of Mr Jack McCarthy as CEO of Dome has been a significantly positive move for the Company and I am very grateful to Jack for the substantial contribution he has made to the success of the Dome has continued to raise working capital during the past year by placements to sophisticated and overseas investors Company so far. During the year, Dome raised approximately $5.3 million in share capital, which is a and I sincerely thank them for their support. Our Japanese director, Mr Tadao Tsubata, has been the driving force behind remarkable achievement when capital markets have generally been so tough for resource companies. Our most of this capital raising and I thank him for all the time and commitment he has given to the Company. I would also like to Japanese director, Mr Tadao Tsubata, has been the driving force behind most of this capital raising and I sincerely thank him for that support. extend my thanks to the other Directors of Dome, to Mr Jack McCarthy, CEO of Dome, and to all of his staff for their loyalty and endeavour on behalf of our shareholders. That same level of commitment extends through all of Dome’s ranks and I take this opportunity once again It is taking us longer than we anticipated to reach our stated goals but as time has elapsed and new information has come to thank our staff, both in Australia and Fiji, for their hard work and loyalty over the past year. With their continued efforts and the ongoing support of our shareholders, I believe we can look forward to an exciting to hand, to say nothing of the very significant increase in the price of gold, our confidence has grown. We remain convinced year ahead, as we move towards our goal of becoming Fiji’s dominant mining company. that Dome will deliver to its shareholders the value we see currently lying latent in the ground. G G LOWDER G G LOWDER Chairman Dome Gold Mines Ltd 1 4 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 5 DIRECTORS’ REPORT The Directors of Dome Gold Mines Ltd present their report, together with the financial statements of the consolidated entity, being Dome Gold Mines Ltd ('Dome' or 'the Company') and its controlled entities (‘the Group’) for the financial year ended 30 June 2016. DIRECTORS' DETAILS The following persons were Directors of Dome during or since the end of the financial year. Other current directorships: None Previous directorships (last 3 years): Queensland Mining Corporation Ltd (resigned July 2013) Interests in shares: 570,000 Interest in options: None DR GARRY LOWDER Chairman Independent Non-Executive Director Member of Audit and Risk Committee Director since 1 March 2012 Bachelor of Science with 1st Class Honours in Geology (University of Sydney) Doctor of Philosophy (University of California, Berkeley) Advanced Management Program (Harvard University) Fellow, Australasian Institute of Mining and Metallurgy Member, Australian Institute of Company Directors Dr Garry Lowder is a geologist who has spent over 45 years in the Australian and international mining industries. As an exploration geologist, Garry has worked in Australia, Indonesia and Papua New Guinea, playing key roles in the discovery of several mineral deposits, including the Northparkes copper, Cowal gold and Conrad silver deposits in NSW, the Paddington gold and Wodgina tantalum deposits in WA and the North Sulawesi porphyry copper deposits in Indonesia. Over the past 30 years Garry has held senior management positions with Australian mining companies and also spent four years in government as Director General of Mineral Resources in NSW. In 1997 he founded Malachite Resources Limited, listing it on the ASX (MAR) in 2002 and retiring as managing director late in 2011; he retired from the position of non-executive Chairman at the end of November, 2012. Garry was also an independent, non-executive director (and for three years, chairman) of ASX- listed Straits Resources Limited from 1997 until he retired from that Board in mid-2011. He is free from any business or other relationship that could materially interfere with the independent exercise of his judgment. 4 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 5 MR ANDREW SKINNER Non-Executive Director and Chair of Audit Committee Director since 8 July 2011 Master of Economics – Professional Accounting (Macquarie University) Master of Corporate Governance (Macquarie University) Diploma Property Development Distinction (UTS) Member, CPA Australia Member, Australian Institute of Company Directors Mr Andrew Skinner qualified as a Chartered Accountant in 1986 with Price Waterhouse Coopers and commenced a specialisation in superannuation law and practice. He works extensively in business structuring and tax advice. In 2004 Andrew was the founding director of Augur Resources Ltd which Other current directorships: Zamia Metals Ltd GPS Alliance Holdings Ltd Previous directorships (last 3 years): went on to list on the ASX (AUK). Currently, Andrew is Principal None Interests in shares: 3,210,000 Interest in options: None of Andrew Skinner & Associates Pty Ltd a CPA Public Practice based in Chatswood. Andrew is also a Justice of the Peace and a Registered Tax Agent. Andrew's extensive experience with mineral exploration companies resulted in his appointment as a director of Zamia Metals Ltd (ZGM), which listed on the ASX in January 2007, and he remains on that Board as Executive Chairman. Involved with Dome Mines since July 2009, Andrew has been working with the management and shareholders to bring Dome to its current state. Andrew is a Sessional Lecturer at Macquarie University in the School of Accounting and Corporate Governance teaching in the fields of Enterprise Risk Management, Sustainability Reporting and Business Ethics and Corporate Governance. He has also taught the subject Leading Organisation Change at the UBSS Business School in their Master of Business Administration Degree. Andrew has recently been appointed to the Academic Board of the Churchill Institute of Higher Education in recognition of his accounting and academic capabilities. He is currently enrolled in a Master of Research in Accounting completing a thesis on Integrated Reporting considering the "Fifth Capital" being the meaning and measurement of Social and Relational Capital. He is free from any business or other relationship that could materially interfere with the independent exercise of his judgment. 6 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 7 MR TADAO TSUBATA Non-Executive Director Director since 8 July 2011 Bachelor of Arts in Economics (Kokushikan University, Tokyo, Japan) Mr Tadao Tsubata studied at Kokushikan University, Tokyo, in the Department of Politics and Economics, graduating in 1991 with a B.A. in Economics. From 1991 to 1997, Tadao worked in corporate finance at a major Japanese securities company. From this role he moved to a major international life insurance and investment company where he was involved in retail offerings and distribution of the business in Japan. Establishing his first business in life insurance distribution and agencies in 2001, this formed the basis of a new business being a Japanese focused asset management company. In early 2010 the asset management company’s activities grew in prominence and a number of private investment funds were formed to specifically target investments internationally, in mining exploration, primary production and other growth industries. Tadao continues in the role of Chief Executive Officer of this business with operations in many countries including Australia. Other current directorships: None Previous directorships (last 3 years): None Interests in shares: 16,845,726 Interest in options: None 6 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 7 MR ALLEN JAY Non-Executive Director Director since 29 March 2012 Bachelor of Earth Science (Geology) (Macquarie University) Chemistry Certificate - Inorganic Analytical Chemistry (Newcastle Technical College) Mr Allen Jay has extensive experience as a geologist and analytical chemist, working in Australia, Fiji, the Philippines and Indonesia in the mining industry in roles ranging from regional exploration to project management. For five years, Allen led the exploration team in the evaluation of Fiji’s Namosi porphyry Other current directorships: copper deposits. These are located on tenements now owned None by Newcrest that are adjacent to Dome’s Central Viti Levu Previous directorships (last 3 years): Project. None Interests in shares: 350,000 Interest in options: None Allen has been a Geologist/Geochemist for the last 40 years and is a member of AusIMM. Previously Allen worked for Placer Dome Asia Pacific as Exploration Manager, Projects, Philippines and then became its Regional Exploration Manager overseeing project work in the Philippines, Indonesia, New South Wales and Western Australia. He holds a Bachelor of Earth Science (Geology) from Macquarie University and a Chemistry Certificate – Inorganic Analytical Chemistry from the Newcastle Technical College, Newcastle. Allen has also performed geological consultancy work for Dome for which he has been paid. 8 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 9 MS SARAH HARVEY Alternate Director Appointed 8 December 2015, resigned 21 July 2016 Bachelor of Arts (University of Adelaide) Bachelor of Laws (University of Adelaide) Master of Laws (College of Law, Sydney) Certificate in Governance Practice (Institute of Governance) Ms Sarah Harvey has worked for 15 years, in both private practice and in the corporate sector. In recent years Sarah has been focused on company secretariat services as Legal Director of her own practice, providing board and director advice in strategic planning and review, due diligence, risk compliance and corporate governance. She holds a BA, LLB.MA (Law) and is a member of the Institute of Governance. Other current directorships: None Previous directorships (last 3 years): None Interests in shares: 20,776,499 Interest in options: None COMPANY SECRETARY Mr Marcelo Mora holds a Bachelor of Business degree and Graduate Diploma of Applied Corporate Governance, and is a member of the Governance Institute of Australia. Mr Mora is a Chartered Secretary and has been an accountant for more than 30 years and has experience in resources and mining companies both in Australia and internationally, providing financial reporting and company secretarial services to a range of publicly listed companies. Marcelo has been the Company Secretary since Dome was incorporated on 8 July 2011. 8 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 9 PRINCIPAL ACTIVITIES The principal activities of the Group have been the continuing exploration and evaluation of its projects in Fiji. No significant changes in the nature of these activities occurred during the year. REVIEW OF OPERATIONS AND FINANCIAL RESULTS Projects Dome, through its wholly owned Fijian subsidiaries, Dome Mines Ltd and Magma Mines Ltd holds 100% of three Special Prospecting Licences (SPL) in Fiji, namely, SPL1495 (Sigatoka Iron Sand Project), SPL1451 (Kadavu Island Project) and SPL1452 (Nadrau Project). The company also held 100% of SPL1454 (Nasivi Delta Project) until it was relinquished in the September 2015 quarter. Figure 1 – Dome Gold Mine’s project locations SPL 1495 Sigatoka Iron Sand Project • This tenement of 2,522.69ha on the south coast of Viti Levu, the largest island of Fiji, covers the plains at the mouth of the Sigatoka River, the river itself and an area offshore. • Dome’s most advanced project with a Mining Lease applied for and Definitive Feasibility Study planned. • • • Initial JORC 2012 resource estimate was published in October 2014. Environmental Impact Assessment report produced December 2014. Pre-feasibility Study report completed early 2015. In October 2014 the company announced a maiden JORC 2012 Resource Estimate for its 100%-owned Sigatoka Iron Sand Project, located on the main island of Viti Levu, Fiji (see Figure 2). A maiden Resource Estimate of 131.6 million tonnes included Indicated Mineral Resources of 25 million tonnes @11.6% HM at Sigatoka River, and Inferred Mineral Resources of 100.7 Mt @ 17% HM at the onshore Kulukulu deposit and 5.9 million tonnes @ 11% HM at Sigatoka River. The Resource consists of detrital magnetite and other heavy minerals in a coastal sand deposit. The iron sands will be dredged from the Sigatoka river bed and processed by gravity and magnetic separation to produce saleable products ready for export. 10 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 11 In addition to magnetite concentrate, non-magnetic heavy mineral concentrate and sand and gravel suitable for industrial or land reclamation uses are expected to be produced during processing. 10 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 11 Figure 2 – Sigatoka River and Kulukulu resource area and estimates In December 2014 Dome received an Environmental Impact Assessment report prepared by independent environmental specialists, Corerega Environment Consultants. The report concluded that “(t)he proposed mining, dredging and mineral extraction development project is likely to have significant economic benefits to the local area, the region and the Country of Fiji and local residents are likely to benefit from the increase in productivity of land, river and marine environment and through job opportunities”. Dome announced the completion of a positive Pre-Feasibility Study (PFS) in March 2015. The PFS concluded that a viable dredge mining and sand processing operation to recover industrial sand, gravel, magnetite concentrate (iron ore) and a bulk non-magnetic heavy mineral concentrate, all products have local or international markets. The PFS recommended completion of a Definitive Feasibility Study (DFS) that will include the operation of a pilot processing plant to produce product samples that can be used for establishing market prices. In addition, the DFS will generate process engineering data needed for the design and equipment selection of a full scale process plant. The DFS will also provide support to seek funds to implement the mining operation. Although the iron ore price has been in decline recently, due to market saturation, the potential to generate stable revenue by producing multiple products for sale, as well as its coastal location, give the Sigatoka Project commercial advantages that many other iron ore projects do not possess. The renewal of SPL1495 for a new 3-year period for the licence was granted by the Mineral Resources Department on 13 July 2015. SPL 1451 Ono Island Project • This tenement of 3,028ha on Ono Island, the eastern most island of the Kadavu Group, covers a number of hydrothermally altered and mineralised areas and caldera/volcanic centres. • Two high sulphidation epithermal gold-silver targets and possible deeper porphyry copper- gold exploration targets (Naqara East and Naqara West) have been identified by geological mapping (Fig. 3). • The prospect is spatially associated with shoshonitic volcanic centres that appear similar in alteration style, geological formation and metal geochemical anomalism to the Lepanto gold- copper deposit in the Philippines. • The Company now proposes to undertake Induced Polarisation geophysical surveys to produce 3-dimensional models that will assist with targeting of exploration diamond drilling. During the year the Company relinquished the Kadavu (or Gasele) block reducing the tenement from 4,213 ha to 3,028 ha in area. A soil sampling geochemical program completed on the Gasele Block did not reveal any areas of elevated metals and the Company decided to focus solely on the Naqara East and Naqara West prospects on Ono Island. The Company has lodged an application to renew SPL1451 for a further 3-year period which expired on 22 August 2016, and believes there is no reason why the renewal will not be approved. 12 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 13 Figure 3 – Conceptual cross section of the high sulphidation epithermal system mapped on Ono Island SPL 1452 Nadrau Project • This tenement of 33,213ha on Fiji’s main island, Viti Levu, is adjacent to the world class Namosi Porphyry copper-gold Project that reportedly contains 1.88 billion tonnes grading 0.37% Copper (Cu) and 0.12g/t Gold (Au). • The Dome tenement contains two large copper-gold-silver ionic leach geochemical anomalies (Namoli and Wainivau prospects) interpreted to be related to intrusive centres that are as yet largely untested by drilling. • Geological mapping and rock chip sampling has discovered porphyry intrusive complexes at both the Namoli and Wainivau Prospects with alteration, mineralisation and vein types typical of mineralised systems. • Copper-magnetite bearing veins have been discovered in outcrop at the Wainivau prospect. • Also, in the eastern section of the tenement is the large Wainivalau Intrusive Complex that has yet to be investigated for porphyry copper-gold systems analogous to those at Namosi-Wasoi to the south. Dome announced in July 2014 that its geologists had discovered outcropping copper mineralisation during exploration field work at the Wainivau Prospect, part of the Nadrau Porphyry Copper-Gold Project on Fiji’s main island of Viti Levu. Dome found the copper minerals (malachite and chalcopyrite) associated with magnetite and pyrite in veinlets within outcropping and hydrothermally altered porphyry intrusive rocks. The veins and their geological setting are interpreted to be typical of the roof of a mineralised porphyry system. The Company has obtained quotes to undertake three-dimensional Induced Polarisation and ground magnetometer surveys over the two porphyry copper-gold prospects, namely Namoli and the Wainivau (see Figures 4 & 5). The objective of this work is to provide subsurface mapping data on the intrusive systems whose interpretation will assist with targeting of exploration diamond drill holes. 12 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 13 Figure 4 – Conceptual cross section of the Namoli porphyry intrusive system. Note the drill hole as shown is as proposed and has not yet been drilled. Figure 5 – Wainivau porphyry system conceptual cross section. Note the drill hole as shown is as proposed and has not yet been drilled. During the year the Company relinquished an area not considered prospective in the central part of SPL 1452. The relinquishment reduced the area of the tenement by 9,357 ha, from 42,570ha to 33,213ha and split the tenement into two blocks, an eastern block immediately north on the Namosi SPL and a second western block covering the Namoli and Wainivau porphyry copper-gold prospects. The Company has lodged an application to renew SPL1452 for a further 3-year period which expired on 26 August 2016, and believes there is no reason why the renewal will not be approved. 14 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 15 SPL 1454 Nasivi Delta Project The Company relinquished SPL 1454 in the September 2015 quarter in light of the persistence of the weak iron ore market and the limited size of the ironsand deposits drilled offshore of the Nasivi-Yaqara Deltas. As part of the relinquishment process sonic drill cores from 12 drill holes on the Nasivi Delta were donated by the Company to the University of the South Pacific Geoscience Department in Suva. The remaining core was donated to the Mineral Resources Department core library in Suva. Mineral Resources Statement Summarised below by JORC Classification are the resource estimates for the Sigatoka River and Kulukulu areas. The resource estimate was prepared by independent resource consultants and issued in a report entitled “Sigatoka Ironsand Project JORC 2012 Report Mineral Resource Estimate” dated 8 October 2014 and announced to the market in an ASX release dated 10 October 2014. Resource comparison 2016 to 2015 There has been no reduction or increase in the resource estimate during the reporting period. Governance Arrangements Dome’s management and Board of Directors include individuals with many years’ work experience in the mineral exploration and mining industry who monitor all exploration programs and oversee the preparation of reports on behalf of the Company by independent consultants. The exploration data is produced by or under the direct supervision of qualified geoscientists. In the case of drill hole data half core samples are preserved for future studies and quality assurance and quality control. The Company uses only accredited laboratories for analysis of samples and records the information in electronic databases that are automatically backed up for storage and retrieval purposes. 14 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 15 No material changes Dome Gold Mines Ltd confirms that it is not aware of any new information or data that would materially affect the information included in the market announcements dated 23 July 2015, 12 October 2015 and 15 August 2016, and that all material assumptions and technical parameters in the market announcements continue to apply and have not materially changed. Statement of Compliance The information in this Annual Report that relates to Mineral Resources is based on information compiled by Mr Geoffrey Richards, a Competent Person who is a member of the Australian Institute of Geoscientists, Mr Richard Stockwell, a Competent Person who is a member of the Australian Institute of Geoscientists, and Mr Gavin Helgeland, a Competent Person who is a member of the Australian Institute of Geoscientists. Mr Richards is a geological consultant and Director of Lionhart Consulting Services, and Mr Stockwell is Managing Director and Mr Helgeland is Principal Geologist of Hornet Drilling and Geological Services Pty Ltd. Mr Richards, Mr Stockwell and Mr Helgeland collectively and individually have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration at Sigatoka and to the activity being undertaken to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Richards, Mr Stockwell and Mr Helgeland consent to the inclusion in the Annual Report of the matters based on their information in the form and context in which it appears. They do not hold shares in Dome and have been paid normal consulting fees for provision of this information. The information in this Annual Report that relates to Exploration Results is based on information compiled by John V McCarthy, who is the Chief Executive Officer of the Company. Mr McCarthy is a geologist who is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr McCarthy, through his family Superfund, holds shares in the Company. He consents to the inclusion in this Annual Report of the matters based on his information in the form and context in which it appears. Inclusion on ASX All Ordinaries Index Effective from 18 March 2016, Dome was included in the ASX Top 500 All Ordinaries Index. Alternate Director On 8 December 2015, Ms Sarah Harvey was appointed as an Alternate Director of the Company for Mr Allen Jay. The appointment was for 12 months or until Mr Jay ceased to be a Director of Dome, subject to renewal, and was intended to provide continuity of corporate governance while Mr Jay underwent medical treatment. Mr Jay has fully recovered from his medical treatment and on 21 July 2016 Ms Harvey resigned as Alternate Director. Financial Results As at 30 June 2016, Dome held $319,028 cash and cash equivalents as per note 9 of the financial statements. The loss of the Group for the financial year after providing for income tax amounted to $1,393,340 (2015: $2,654,043). The net asset position of the Group decreased from $27,541,213 at 30 June 2015 to $27,116,618 at 30 June 2016. 16 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 17 SIGNIFICANT CHANGES IN STATE OF AFFAIRS In the opinion of the Directors, significant changes in the state of affairs of the Group that occurred during the year ended 30 June 2016 were as follows: Magma Fiji transfer of shareholding As part of a rationalisation of the Group, on 1 March 2016 the total 250,000 shares in Magma Mines Ltd (Fiji) were transferred to Dome Gold Mines Ltd by Magma Mines Pty Ltd (Australia), giving Dome Gold Mines Ltd 100% direct ownership of Magma Mines Ltd (Fiji). Magma Mines Ltd (Fiji) is the 100% holder of SPL1495 Sigatoka Ironsands tenement. Issue of share capital For the year ended 30 June 2016, Dome has raised $747,418 by private placement, and $299,999 upon exercise of options. The funds are being used for exploration and general working capital. Details of these raising are as follows: • On 1 July 2015 the Company completed a placement of 1,144,791 fully paid ordinary shares at $0.36 per share to raise $412,125. • On 15 July 2015 the Company issued 166,666 fully paid ordinary shares upon an exercise of options at $0.20 per share raising $33,333. • On 13 August 2015 the Company issued 166,666 fully paid ordinary shares upon an exercise of options at $0.20 per share raising $33,333. • On 16 September 2015 the Company issued 166,666 fully paid ordinary shares upon an exercise of options at $0.20 per share raising $33,333. • On 1 October 2015 the Company issued 1,000,000 fully paid ordinary shares upon an exercise of options at $0.20 per share raising $200,000. • On 12 November 2015 the Company completed a placement of 882,350 fully paid ordinary shares at $0.38 per share to raise $335,293. DIVIDENDS No dividends were declared or paid during the financial year (2015: $nil). EVENTS ARISING SINCE THE END OF THE REPORTING PERIOD Subsequent to the end of the financial year: Issue of share capital • On 9 August 2016 the Company completed a placement of 7,500,000 fully paid ordinary shares at $0.20 per share to raise $1,500,000, and issued 7,500,000 unlisted options which expire on 9 August 2017. • On 16 August 2016 the Company completed a placement of 502,840 fully paid ordinary shares at $0.25 per share to raise $125,710. • On 16 August 2016 the Company completed a placement of 1,188,058 fully paid ordinary shares at $0.21 per share to raise $249,492. Induced Polarisation (IP) survey – Ono Island The Company announced on 15 August 2016 the commencement of an Induced Polarisation (IP) Survey at its Ono Island Project. Dome has engaged Fender Geophysics to undertake an Offset Pole Dipole IP survey on the Naqara East and Naqara West high sulphidation epithermal gold prospects on the northern section of Ono Island. The approximately 20.5 line-kilometre survey is scheduled to 16 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 17 commence during the week of 22 August 2016 and will take approximately 30 days to complete. Data collected during the survey will be processed and interpreted in Sydney as the survey progresses and will be used to assist with targeting future exploration diamond drilling. The Naqara East and Naqara West prospects were outlined by soil geochemistry and geological mapping that showed the presence of multi-element anomalies associated with silica-clay alteration minerals typical of those found in high sulphidation epithermal systems in volcanic terrain. The two prospects are located on the northern rim of a central volcanic caldera that created the island, which is about 4 million years old. In the Company’s opinion Ono Island represents one of the last epithermal systems to be explored on volcanic islands along the so-called “rim-of-fire” in the south Pacific. No other matters or circumstances have arisen since the end of the year that have significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years. LIKELY DEVELOPMENTS, BUSINESS STRATEGIES AND PROSPECTS The Group will continue to explore and evaluate the Company's exploration projects with the aim of identifying potential mineral resources, and will continue to seek and assess new opportunities in the Fiji mineral sector with the objective of adding significant shareholder value to Dome. The Directors are unable to comment on the likely results from the Group’s planned exploration activities due to the speculative nature of such activities. DIRECTORS’ MEETINGS The number of Directors’ Meetings (including meetings of Committees of Directors) held during the year, and the number of meetings attended by each Director is as follows: BOARD MEETINGS AUDIT COMMITTEE MEETINGS Director Entitled to attend Attended Entitled to attend Attended Garry G Lowder Andrew B Skinner Tadao Tsubata Allen Jay Sarah E Harvey 8 8 8 8 5 8 8 8 4 5 2 2 - - - 2 2 - - - 18 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 19 UNISSUED SHARES UNDER OPTION Unissued ordinary shares of Dome under option at the date of this report are: Number of options Exercise price Expiry Date 7,500,000 $0.20 9 August 2017 Details of options issued by the Company are set out in the share based payments note to the financial report. The names of persons who currently hold options are entered in the register of options kept by the Company pursuant to the Corporations Act 2011. This register may be inspected free of charge. All options expire on the expiry date. The persons entitled to exercise the options do not have, by virtue of the options, the right to participate in the share issue of any other body corporate. SHARES ISSUED DURING OR SINCE THE END OF THE YEAR AS A RESULT OF EXERCISE During or since the end of the financial year, the Company issued ordinary shares as a result of the exercise of options as follows (there were no amounts unpaid on the shares issued): Date options exercised Issue price per share ($) Number of shares issued 15 July 2015 13 August 2015 16 September 2015 1 October 2015 $0.20 $0.20 $0.20 $0.20 166,666 166,666 166,666 1,000,000 18 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 19 REMUNERATION REPORT (AUDITED) The Directors of Dome Gold Mines Ltd (the ‘Group’) present the Remuneration Report for Non-Executive Directors, Executive Directors and other Key Management Personnel, prepared in accordance with the Corporations Act 2001 and the Corporations Regulations 2001. The Remuneration Report is set out under the following main headings: a. principles used to determine the nature and amount of remuneration; b. details of remuneration; c. share-based remuneration; and d. other information. a. Principles used to determine the nature and amount of remuneration Key management personnel have authority and responsibility for planning, directing and controlling the activities of the Group. Key management personnel comprise the Directors of the Company. No other employees have been deemed to be key management personnel. The remuneration policy of Directors and senior executives is to ensure the remuneration package properly reflects the persons’ duties and responsibilities, and that remuneration is competitive in attracting, retaining and motivating people of the highest quality. The Board is responsible for reviewing its own performance. The evaluation process is designed to assess the Group’s business performance, whether long term strategic objectives are being achieved, and the achievement of individual performance objectives. Remuneration generally comprises of salary and superannuation. The remuneration disclosed below represents the cost to the Group for services provided under these arrangements. No Directors or senior executives received performance related remuneration. The salary component of each Director’s remuneration is made up of fixed remuneration paid monthly. There were no remuneration consultants used by the Company during the year ended 30 June 2016, or in the prior year. Vote and comments made at the Company’s last Annual General Meeting The Remuneration Report of Dome Gold Mines Ltd for the financial year ended 30 June 2015 was approved by shareholders on a show of hands at the Company’s Annual General Meeting. 20 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 21 b. Details of remuneration Details of the nature and amount of each major element of the remuneration of each Director of the Company and other key management personnel of the Group are shown in the table below: Director and other Key Management Personnel Remuneration Short term employee benefits Post- employment benefits Share- based payments Cash salary and fees $ Year Other fees $ Non-cash benefits $ Super- annuation $ Fair value of options $ Total $ Proportion of remuneration performance related % Value of options as a proportion of remuneration % Non Executive Directors Garry Lowder (Chairman) Allen Jay (Director) Tadao Tsubata (Director) Andrew Skinner (Director) 2016 14,500 2015 17,250 2016 39,600 - - - 2015 41,800 42,800 2016 39,600 2015 41,800 2016 39,600 - - - 2015 41,800 4,707 Sarah Harvey (Alternate Director) 2016 14,000 2015 - Other Key Management Personnel John (Jack) McCarthy (CEO) 2016 180,000 2015 135,000 66,000 2016 Total 2016 327,300 - 2015 Total 2015 277,650 113,507 - - - - - - - - - - - - - - - - - 35,000 35,000 - - - - - - - - 35,000 26,250 70,000 61,250 - - - - - - - - - - - - - - 49,500 52,250 39,600 84,600 39,600 41,800 39,600 46,507 14,000 - 215,000 227,250 397,300 452,407 - - - - - - - - - - - - - - - - - - - - - - - - - - - - No bonuses or other performance related compensation payments were paid during the current year to Directors or executives. The Group employed no other key management personnel. No shares were granted to key management personnel as compensation during the year ended 30 June 2016. In 2015, “other fees” represented consulting fees for consulting services provided. 20 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 21 c. Share-based remuneration All options refer to options over ordinary shares of the Company, which are exercisable on a one-for- one basis under the terms of the agreement. There were no options over ordinary shares of the Company granted, exercised, forfeited or lapsed unexercised which are related to Directors’ or key management personnel’s remuneration during the year ended 30 June 2016. No terms of equity-settled share based payment transactions have been altered or modified by the issuing entity during the 2016 financial year. d. Other information Shares held by key management personnel The number of ordinary shares in the Company during the 2016 reporting period held by each of the Group’s Key Management Personnel of the Group, including their related parties, is set out below. Year ended 30 June 2016 Director Balance at start of year Granted as remuneration Received on exercise Other changes Held at the end of reporting period Garry Lowder 570,000 Andrew Skinner 3,210,000 Tadao Tsubata 26,840,000 Allen Jay 350,000 John McCarthy 260,000 Sarah Harvey* 20,776,499* - - - - - - - - - - - - - - 570,000 3,210,000 (9,994,274) 16,845,726 - - - 350,000 260,000 20,776,499 *Sarah Harvey was appointed as an alternate director on 8 December 2015 and held 20,776,449 shares as at the date of appointment. Note: None of the shares included in the table above are held nominally by key management personnel. Options held by key management personnel As at 30 June 2016, no Directors or senior executives held options of the Company. During the year, 1,250,000 options held by Andrew Skinner expired on 30 September 2015. There is no other movement of the number of options held by key management personnel from 30 June 2015. End of audited remuneration report. 22 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 23 ENVIRONMENTAL LEGISLATION The Group is subject to state, federal and international environmental legislation. The Group has complied with its environmental obligations and no environmental breaches have been notified by any Government agency to the date of this Directors’ Report and the Directors do not anticipate any obstacles in complying with the legislation. INDEMNITIES GIVEN AND INSURANCE PREMIUMS PAID TO AUDITORS AND OFFICERS During the year, Dome paid a premium to insure officers of the Group. The officers of the Group covered by the insurance policy include all Directors. The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of the Group, and any other payments arising from liabilities incurred by the officers in connection with such proceedings, other than where such liabilities arise out of conduct involving a wilful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else to cause detriment to the Group. Details of the amount of the premium paid in respect of insurance policies are not disclosed as such disclosure is prohibited under the terms of the contract. The Group has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify any current or former officer or auditor of the Group against a liability incurred as such by an officer or auditor. NON-AUDIT SERVICES During the year, Grant Thornton, the Company’s auditors, performed certain other services in addition to their statutory audit duties. The Board has considered the non-audit services provided during the year by the auditor and, in accordance with written advice provided by resolution of the Audit and Risk Committee, is satisfied that the provision of those non-audit services during the year is compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 for the following reasons: • all non-audit services were subject to the corporate governance procedures adopted by the Company and have been reviewed by the Audit and Risk Committee to ensure they do not impact upon the impartiality and objectivity of the auditor; and • the non-audit services do not undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor’s own work, acting in a management or decision- making capacity for the Company, acting as an advocate for the Company or jointly sharing risks and rewards. Details of the amounts paid to the auditors of the Company, Grant Thornton, and its related practices for audit and non-audit services provided during the year are set out in Note 19 to the Financial Statements. 22 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 23 Dome Gold Mines Ltd and its controlled entities Chairman’s Message Dear Shareholder, Welcome to Dome Gold Mines Limited’s second Annual Report since listing on the Australian Securities Exchange in October 2013. This report covers the 12 month period to 30 June 2015, a year in which your Company took a major leap forward with the acquisition of a 100% interest in Magma Mines Limited, bringing Magma’s wholly owned Sigatoka Iron Sands project into Dome’s portfolio. Sigatoka is an attractive mineral sands mining project that is now Dome’s flagship and will, we believe, become a successful dredge mining operation within two years. Since acquiring Magma, Dome has produced a maiden JORC 2012 Resource Estimate for the Sigatoka project, which then became the basis of a pre-feasibility study. That study indicated robust economics for a sand dredging operation that would produce 351,000 tpa of magnetite sand (an iron ore), as well as 260,000 tpa of non-magnetic heavy mineral sand concentrate, nearly 2 million tpa of industrial sand and 684,000 tpa of gravel. This mix of products would give Sigatoka a competitive edge compared with other iron ore producers and the low capital cost and superb location at the Sigatoka River mouth only add to the commercial strength of our project. Dome has also completed an Environmental Impact Assessment report for Sigatoka and has recently had the exploration tenement that covers the project (SPL 1495) renewed for three years. The next steps at Sigatoka will include further resource drilling, both onshore at Koroua Island, and offshore from the river mouth, where there is excellent potential for additional resources with good grades. We will also soon be applying for a mining lease over the project and moving on to undertake a Definitive Feasibility Study. Discussions have already been held with a number of overseas entities that could supply dredging equipment, project finance and markets for our products. With its strong potential for stable cash flow, Sigatoka is rightly our flagship project and we intend to continue to put our prime focus on bringing Sigatoka to production as soon as possible. Investigations in the past year at our other iron sand project, the Nasivi Delta, have not given us the encouragement we sought and accordingly, the Company will relinquish that tenement (SPL 1454) in the near future, allowing us to concentrate on Sigatoka. Elsewhere, we have completed geological programs at both our Kadavu Islands gold-silver project (SPL 1451), 90km south of Viti Levu, and the Nadrau Porphyry Copper-Gold project (SPL 1452), in the highlands of Viti Levu. Encouraging results were generated in each case. At Kadavu it is Ono Island that has PROCEEDINGS ON BEHALF OF THE COMPANY emerged as the primary target, with the identification of two large, high sulphidation epithermal gold systems. At Nadrau, we have now recognised two key targets – Namoli and Wainivau – each of which No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring exhibits clear porphyry style copper mineralisation parameters. The next step at both Ono Island and the proceedings on behalf of the Company, or to intervene in any proceedings to which the Company Namoli-Wainivau pair is expected to be an induced polarisation (IP) geophysical survey that should help is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those delineate targets for exploration drilling in the future. proceedings. The appointment of Mr Jack McCarthy as CEO of Dome has been a significantly positive move for the Company and I am very grateful to Jack for the substantial contribution he has made to the success of the Company so far. During the year, Dome raised approximately $5.3 million in share capital, which is a AUDITOR'S INDEPENDENCE DECLARATION remarkable achievement when capital markets have generally been so tough for resource companies. Our Japanese director, Mr Tadao Tsubata, has been the driving force behind most of this capital raising and I A copy of the Auditor’s Independence Declaration as required under s307C of the Corporations Act sincerely thank him for that support. 2001 is included on page 25 of this financial report and forms part of this Directors’ Report. That same level of commitment extends through all of Dome’s ranks and I take this opportunity once again to thank our staff, both in Australia and Fiji, for their hard work and loyalty over the past year. With their Signed in accordance with a resolution of the Directors. continued efforts and the ongoing support of our shareholders, I believe we can look forward to an exciting year ahead, as we move towards our goal of becoming Fiji’s dominant mining company. G G LOWDER Garry Lowder Chairman Sydney, 8 September 2016 1 24 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 25 Level 17, 383 Kent Street Sydney NSW 2000 Level 17, 383 Kent Street Sydney NSW 2000 Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230 Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230 T +61 2 8297 2400 F +61 2 9299 4445 E info.nsw@au.gt.com W www.grantthornton.com.au T +61 2 8297 2400 F +61 2 9299 4445 E info.nsw@au.gt.com W www.grantthornton.com.au Auditor’s Independence Declaration To the Directors of Dome Gold Mines Limited Auditor’s Independence Declaration To the Directors of Dome Gold Mines Limited In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Dome Gold Mines Limited for the year ended 30 June 2016, I declare that, to the best of my knowledge and belief, there have been: In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Dome Gold Mines Limited for the year ended 30 June 2015, I declare that, to the best of my knowledge and belief, there have been: a b a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and no contraventions of any applicable code of professional conduct in relation to the b audit. no contraventions of any applicable code of professional conduct in relation to the audit. GRANT THORNTON AUDIT PTY LTD Chartered Accountants GRANT THORNTON AUDIT PTY LTD Chartered Accountants C F Farley Partner - Audit & Assurance C F Farley Partner - Audit & Assurance Sydney, 8 September 2016 Sydney, 28 August 2015 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited. ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited. Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies. Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies. 19 19 24 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 25 CORPORATE GOVERNANCE STATEMENT The Board is committed to achieving and demonstrating the highest standards of corporate governance. Corporate Governance is about having a set of core values and behaviours that underpin the Company’s activities and ensure transparency, fair dealing and protection of the interests of stakeholders. Dome Gold Mines Ltd and its Controlled Entities (‘the Group’) have adopted the third edition of the Corporate Governance Principles and Recommendations which was released by the ASX Corporate Governance Council on 27 March 2014 and became effective for financial years beginning on or after 1 July 2014. The Group’s Corporate Governance Statement for the financial year ending 30 June 2016 is dated as at 30 June 2016 and was approved by the Board on 19 August 2016. A description of the Company’s current corporate governance practices is set out in the Company’s Corporate Governance Statement, which is available on the Company’s website at www.domegoldmines.com.au. 26 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 27 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016 Other income Employee benefits expenses (including directors fees) Other expenses Operating loss Depreciation Finance costs Impairment Gain/(loss) on foreign exchange Loss before income tax expense Income tax expense Loss for the year Notes 4 5 6 7 2016 $ 2015 $ 318,467 42,758 (655,726) (467,331) (1,089,439) (1,260,676) (1,426,698) (1,685,249) (16,053) (53,786) (15,723) (97,063) - (1,070,410) 103,197 214,402 (1,393,340) (2,654,043) - - (1,393,340) (2,654,043) Other comprehensive income for the year Items that may be reclassified subsequently to profit or loss: Exchange difference on translating foreign controlled entities (14,109) (1,012) Total comprehensive loss for the year (1,407,449) (2,655,055) Earnings per share Basic and diluted loss per share (cents per share) 8 (0.61) (1.32) The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 26 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 27 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016 CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Capitalised exploration and evaluation expenditure Other assests TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Notes 2016 $ 2015 $ 9 10 11 12 14 11 15 319,028 2,245,950 68,118 28,109 42,347 32,267 415,255 2,320,564 374,100 459,058 27,689,854 27,037,069 192,367 189,796 28,256,321 27,685,923 28,671,576 30,006,487 111,028 111,028 616,995 616,995 Borrowings 16 1,443,930 1,848,279 TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Foreign currency translation reserve Accumulated losses TOTAL EQUITY 1,443,930 1,848,279 1,554,958 2,465,274 27,116,618 27,541,213 17 34,752,434 33,769,580 10,925 25,034 (7,646,741) (6,253,401) 27,116,618 27,541,213 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. 28 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 29 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016 Issued capital $ Foreign currency translation reserves $ Accumulated losses $ Total equity $ Balance at 1 July 2014 6,377,744 26,046 (3,599,358) 2,804,432 Transaction with owners Ordinary shares issued Transaction costs on issue of shares Total transactions with owners Other comprehensive income Loss for the year Total comprehensive loss for the year 27,914,910 (523,074) 27,391,836 - - - - - - (1,012) - - - - 27,914,910 (523,074) 27,391,836 (1,012) - (2,654,043) (2,654,043) (1,012) (2,654,043) (2,655,055) Balance at 30 June 2015 33,769,580 25,034 (6,253,401) 27,541,213 Balance at 1 July 2015 33,769,580 25,034 (6,253,401) 27,541,213 Transaction with owners Ordinary shares issued Transaction costs on issue of shares Total transaction with owners Other comprehensive income Loss for the year Total comprehensive loss for the year 1,047,417 (64,563) 982,854 - - - - - - (14,109) - - - - 1,047,417 (64,563) 982,854 (14,109) - (1,393,340) (1,393,340) (14,109) (1,393,340) (1,407,449) Balance at 30 June 2016 34,752,434 10,925 (7,646,741) 27,116,618 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 28 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 29 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2016 Notes 2016 $ 2015 $ CASH FLOWS FROM OPERATING ACTIVITIES Interest received Cash received from other income Cash paid to suppliers and employees Interest paid Other tax received 24,180 254,236 26,554 15,528 (1,754,445) (1,630,155) (82,164) (22,848) 11,952 28,219 Net cash used in operating activities 18 (1,546,241) (1,582,702) CASH FLOWS FROM INVESTING ACTIVITIES Cash paid on deposit/advance payment Cash paid on other investment activities Cash received on acquisition of subsidiary Cash received on bond refund Purchase of property, plant & equipment Exploration cost payments capitalised Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of share capital Proceeds from borrowings Cash paid on share issue costs Funds held on trust for unissued shares Repayment of borrowings Net cash provided by financing activities (5,869) (5,292) - 10,545 (617) (1,936) - 1,955 - (10,088) (490,527) (947,858) (491,760) (957,927) 635,293 4,064,439 100,000 - (148,206) (439,431) - 412,125 (475,970) (934,347) 111,117 3,102,786 Net (decrease)/increase in cash and cash equivalents (1,926,884) 562,157 Cash and cash equivalents at the beginning of the financial year 2,245,950 1,671,348 Exchange differences on cash and cash equivalents (38) 12,445 Cash and cash equivalents at the end of the financial year 9 319,028 2,245,950 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. 30 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 31 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The Financial Report includes the consolidated financial statements and notes of Dome Gold Mines Ltd and controlled entities (‘Group’). 1 GENERAL INFORMATION AND STATEMENT OF COMPLIANCE The consolidated general purpose financial statements of the Group have been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. Compliance with Australian Accounting Standards results in full compliance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The Group is a for- profit entity for the purpose of preparing the financial statements. The consolidated financial statements for the year ended 30 June 2016 were approved and authorised for issue by the board of directors on 8 September 2016 (see note 28). Dome Gold Mines Limited is the Group’s ultimate parent company. Dome Gold Mines Ltd is a public company limited by shares incorporated and domiciled in Australia on 8 July 2011. The registered office is Level 7, 71 Macquarie Street, Sydney, NSW 2000. Dome Gold Mines Ltd is the parent company with 100% ownership of: • Magma Mines Pty Ltd; • Dome Mines Ltd (a company limited by shares incorporated in Fiji); and • Magma Mines Ltd (a company limited by shares incorporated in Fiji). The principal activities of the Group during the financial year have been the continuing exploration and evaluation of the following projects in Fiji: • • • SPL1451 Ono Island, SPL1452 Nadrau; and SPL1495 Sigatoka Ironsands. The Company relinquished its SPL1454 tenement in light of the persistence of the weak iron ore market and the limited size of the ironsand deposits drilled offshore of the Nasivi-Yaqara Deltas. 2 CHANGES IN ACCOUNTING POLICIES 2.1 New and revised standards that are effective for these financial statements The Group has adopted all of the new, revised or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Group. 30 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 31 2.2 Accounting Standards issued but not yet effective and have not been early adopted by the Group AASB 9 Financial Instruments (effective from 1 January 2018) AASB 9 introduces new requirements for the classification and measurement of financial assets and liabilities. These requirements improve and simplify the approach for classification and measurement of financial assets compared with the requirements of AASB 139. The Group is yet to undertake a detailed assessment of the impact of AASB 9. However, based on the entity’s preliminary assessment, the Standard is not expected to have a material impact on the transactions and balances recognised in the financial statements when it is first adopted for the year ending 30 June 2019. AASB 15 Revenue from Contracts with Customers (effective from 1 January 2018) AASB 15: replaces AASB 118 Revenue, AASB 111 Construction Contracts and some revenue-related Interpretations:  Establishes a new revenue recognition model  Changes the basis for deciding whether revenue is to be recognised over time or at a point in time  Provides new and more detailed guidance on specific topics (e.g., multiple element arrangements, variable pricing, rights of return, warranties and licensing)  Expands and improves disclosures about revenue The Group is yet to undertake a detailed assessment of the impact of AASB 15. However, based on the Group’s preliminary assessment, the Standard is not expected to have a material impact on the transactions and balances recognised in the financial statements when it is first adopted for the year ending 30 June 2019. AASB 16 Leases (effective from 1 January 2019) AASB 16 replaces AASB 117 Leases and some lease-related Interpretations: • Requires all leases to be accounted for ‘on-balance sheet’ by lessees, other than short-term and low value asset leases • Provides new guidance on the application of the definition of lease and on sale and lease back accounting • Largely retains the existing lessor accounting requirements in AASB 117 • Requires new and different disclosures about leases The Group is yet to undertake a detailed assessment of the impact of AASB 16. However, based on the Group’s preliminary assessment, the Standard is not expected to have a material impact on the transactions and balances recognised in the financial statements when it is first adopted for the year ending 30 June 2020. In addition to the AASB 9, AASB 15 and AASB 16 discussed above, a number of additional amendments have also been issued but are not effective for the current year end, which will be applicable to the Group, but are unlikely to have a material impact on the financial statements, based on management’s initial consideration. 32 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 33 3 SUMMARY OF ACCOUNTING POLICIES 3.1 Overall considerations The significant accounting policies that have been used in the preparation of these consolidated financial statements are summarised below. The consolidated financial statements have been prepared using the measurement bases specified by Australian Accounting Standards for each type of asset, liability, income and expense. The measurement bases are more fully described in the accounting policies below. 3.2 Basis of consolidation The Group financial statements consolidate those of the parent company and all of its subsidiary undertakings drawn up to 30 June 2016. The parent controls a subsidiary if it is exposed, or has rights, to variable returns from its investment with the subsidiary and has the ability to affect those returns through its power over the subsidiary. All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group. Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the period are recognised from the effective date of acquisition, or up to the effective date of disposal, as applicable. 3.3 Business combination The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the Group, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred. The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognised in the acquiree’s financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition- date fair values. Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of (a) fair value of consideration transferred, (b) the recognised amount of any non- controlling interest in the acquiree and (c) acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount (i.e. gain on a bargain purchase) is recognised in profit or loss immediately. 32 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 33 3.4 Basis of measurement The consolidated financial statements have been prepared on the historical cost basis. 3.5 Foreign currency transactions and balances Functional and presentation currency The consolidated financial statements are presented in Australian dollars (AUD), which is also the functional currency of the parent company. Foreign currency transactions and balances Foreign currency transactions are translated into the functional currency of the respective Group entity, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the re- measurement of monetary items at period end exchange rates are recognised in profit or loss. Non-monetary items are not retranslated at period-end and are measured at historical cost (translated using the exchange rates at the date of the transactions), except for non-monetary items measured at fair value which are translated using the change rates at the date when fair value was determined. Foreign operations In the Group's financial statements, all assets, liabilities and transactions of Group entities with a functional currency other than the AUD are translated into AUD upon consolidation. The functional currency of the entities in the Group has remained unchanged during the reporting period. On consolidation, assets and liabilities have been translated into AUD at the closing rate at the reporting date. Goodwill and fair value adjustments arising on the acquisition of a foreign entity have been treated as assets and liabilities of the foreign entity and translated into AUD at the closing rate. Income and expenses have been translated into AUD at the average rate over the reporting period. Exchange differences are charged/credited to other comprehensive income and recognised in the currency translation reserve in equity. On disposal of a foreign operation the cumulative translation differences recognised in equity are reclassified to profit or loss and recognised as part of the gain or loss on disposal. 3.6 Segment Reporting Determination and presentation of operating segments The Group determines and presents operating segments based on the information that is provided internally to the management. An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating segments’ operating results are regularly reviewed by the Group’s management to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. Segment results that are reported to the management include items directly attributable to a segment 34 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 35 as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company’s headquarter), head office expenses, and income tax assets and liabilities. Segment capital expenditure is the total costs incurred during the period to acquire property, plant and equipment, and intangible assets other than goodwill. 3.7 Exploration and evaluation expenditure Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as exploration and evaluation assets on an area of interest basis. Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either:  the expenditures are expected to be recouped through successful development and exploitation of the area of interest; or  activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active and significant operations in, or in relation to, the area of interest are continuing. Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and commercial viability and facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For the purposes of impairment testing, exploration and evaluation assets are allocated to cash generating units to which the exploration activity relates. The cash generating unit shall not be larger than the area of interest. Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then reclassified from exploration and evaluation expenditure to mining property and development assets within property, plant and equipment. 3.8 Property, plant and equipment Plant and equipment and computer equipment Plant and equipment (comprising fittings and furniture) and computer equipment are initially recognised at acquisition cost or manufacturing cost, including any costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by the Group’s management. Plant and equipment and computer equipment are measured on the cost basis less subsequent depreciation and impairment losses. Depreciation The depreciable amount of all fixed assets is recognised on a straight-line basis to write down the cost over the assets' estimated useful lives to the Group commencing from the time the asset is ready for use. 34 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 35 The depreciation rates and useful lives used for each class of depreciable assets are: Class of fixed asset Exploration computer equipment Exploration furniture and fittings Exploration plant and equipment Office equipment Useful Lives 2.5-4.2 years 3-8.3 years 2.5-8.3 years 2.5-20 years Depreciation basis Prime cost Prime cost Prime cost Prime cost Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognised in profit or loss within other income or other expenses. 3.9 Leased assets Operating leases All other leases are treated as operating leases. Where the Group is a lessee, payments on operating lease agreements are recognised as an expense on a straight-line basis over the lease term. Associated costs, such as maintenance and insurance, are expensed as incurred. 3.10 Income tax The charge for current income tax expense is based on the profit for the period adjusted for any non-assessable or disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the date of the statement of financial position. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items recognised directly to equity, in which case the deferred tax is adjusted directly against equity. Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised. The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law. 3.11 Revenue Interest income is reported on an accruals basis using the effective interest method. R&D refunds are reported on an accruals basis and recognised as other income. 36 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 37 3.12 Goods and services tax (GST) Revenues, expenses and assets are recognised exclusive of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian or Fiji Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. 3.13 Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits with a maturity of three months or less. 3.14 Financial instruments Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument, and are measured initially at fair value adjusted by transactions costs, except for those carried at fair value through profit or loss, which are measured initially at fair value. Subsequent measurement of financial assets and financial liabilities are described below. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires. Classification and subsequent measurement of financial assets Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classified as either financial assets at fair value through profit or loss, loans and receivables, held-to- maturity investments, or available-for-sale investments, as appropriate. The Group determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re- evaluates this designation at each financial period end. Loans and other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial recognition, these are measured at amortised cost using the effective interest method, less provision for impairment. Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments. Individually significant receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default. Receivables that are not considered to be individually impaired are reviewed for impairment in groups, which are determined by reference to the industry and region of a counterparty and other credit risk characteristics. The impairment loss estimate is then based on recent historical counterparty default rates for each identified group. 36 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 37 Classification and subsequent measurement of financial liabilities The Group’s financial liabilities include borrowings and trade and other payables, which are measured subsequently at amortised cost using the effective interest method. Trade and other payables, including accruals for goods received but not yet billed, are recognised when the Group becomes obliged to make future payments principally as a result of the purchase or goods and services. Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. 3.15 Significant accounting judgments and key estimates The preparation of financial reports requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Estimates and assumptions are continuously evaluated and are based on management’s experience and other factor, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes would differ from these estimates if different assumptions were used and different conditions existed. In particular, the Group has identified the following areas where significant judgements, estimates and assumptions are required, and where actual results were to differ, may materially affect the financial position or financial results reported in future periods. (i) Exploration and evaluation expenditure (Note 14) All capitalised exploration and evaluation expenditure ($27,689,854 at 30 June 2016) (2015: $27,037,069) has been capitalised on the basis that: • the expenditures are expected to be recouped through successful development and exploitation of the area of interest; or • activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable assessment of the existence or other wise of economically recoverable reserves and active and significant operations in, or in relation to, the area of interest are continuing. • The renewal of exploration licences is expected to be a routine process up until such a point as the entity is able to apply for a mining licence. (ii) Going concern (Note 3.16) 3.16 Going concern The consolidated financial statements have been prepared on a going concern basis which contemplates the realisation of assets and settlement of liabilities in the ordinary course of business. The Group has incurred a trading loss of $1,393,340 (2015: $2,654,043), used $2,036,768 (2015: $2,530,560) of net cash in operations including payments for exploration during the year ended 30 June 2016, and has a cash balance of $319,028 at 30 June 2016 (2015: $2,245,950). These conditions give rise to a material uncertainty that may cast significant doubt upon the Group's ability to continue as a going concern. Since the year end, the Group has raised $1,875,202 from the issue of shares. The ongoing operation of the Group is dependent upon: 38 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 39   the Group raising additional funding from shareholders or other parties; and/or  the Group reducing expenditure in-line with available funding. The Directors have prepared cash flow projections that support the ability of the Group to continue as a going concern. These cash flow projections assume the Group obtains sufficient additional funding from shareholders or other parties. If such funding is not achieved, the Group plans to reduce expenditures significantly. In the event that the Group does not obtain additional funding and/or reduce expenditure in-line with available funding, it may not be able to continue its operations as a going concern and therefore may not be able to realise its assets and extinguish its liabilities in the ordinary course of operations and at the amounts stated in the financial report. 3.17 Impairment testing of non-current assets For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely independent cash inflows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level. All other individual assets or cash-generating units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s or cash-generating unit's carrying amount exceeds its recoverable amount, which is the higher of fair value less costs to sell and value- in-use. To determine the value-in-use, management estimates expected future cash flows from each cash-generating unit and determines a suitable interest rate in order to calculate the present value of those cash flows. The data used for impairment testing procedures are directly linked to the Group's latest approved budget, adjusted as necessary to exclude the effects of future reorganisations and asset enhancements. Discount factors are determined individually for each cash-generating unit and reflect management’s assessment of respective risk profiles, such as market and asset-specific risks factors. With the exception of goodwill, all assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist. An impairment charge is reversed if the cash-generating unit’s recoverable amount exceeds its carrying amount. 3.18 Equity and reserves Share capital represents the fair value of shares that have been issued. Any transaction costs associated with the issuing of shares are deducted from share capital, net of any related income tax benefits. Other components of equity include the following:  Foreign currency translation reserve – comprises foreign currency translation differences arising on the translation of financial statements of the Group’s foreign entities into AUD; and • Retained earnings include all current and prior period retained losses. 38 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 39 3.19 Employee benefits Short-term employee benefits Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly within twelve (12) months after the end of the period in which the employees render the related service. Examples of such benefits include wages and salaries, non-monetary benefits and accumulating sick leave. Short-term employee benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled. Other long-term employee benefits The Group’s liabilities for annual leave are included in other long term benefits as they are not expected to be settled wholly within twelve (12) months after the end of the period in which the employees render the related service. They are measured at the present value of the expected future payments to be made to employees. The expected future payments incorporate anticipated future wage and salary levels, experience of employee departures and periods of service, and are discounted at rates determined by reference to market yields at the end of the reporting period on high quality corporate bonds that have maturity dates that approximate the timing of the estimated future cash outflows. Any re-measurements arising from experience adjustments and changes in assumptions are recognised in profit or loss in the periods in which the changes occur. The Group presents employee benefit obligations as current liabilities in the statement of financial position if the Group does not have an unconditional right to defer settlement for at least twelve (12) months after the reporting period, irrespective of when the actual settlement is expected to take place. 4 OTHER INCOME R&D refund Sundry income Interest income Total other income 5 OTHER EXPENSES Consultant expenses Magma Mines acquisition costs Office expenses Other expenses Tenement related costs Total other expenses 2016 $ 291,347 - 27,120 318,467 2016 $ 687,672 - 312,050 77,230 12,487 2015 $ - 15,528 27,230 42,758 2015 $ 776,088 46,820 321,790 79,892 36,086 1,089,439 1,260,676 40 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 41 6 FINANCE COSTS Interest expenses for borrowings at amortised cost - Related Party - Third Party 7 INCOME TAX (a) Income tax expense/(benefit) Current tax Deferred tax 2016 $ 219 53,567 53,786 2016 $ - - - 2015 $ 24,297 72,766 97,063 2015 $ - - - (b) Reconciliation of income tax expense to prima facie tax payable: Loss before tax (1,393,340) (2,654,043) Prima facie income tax benefit at the Australian tax rate of 28.5% (2015: 30%) Increase/(decrease) in income tax expense due to: Assessable income/ non-deductible expenses Non-assessable income/ deductible expenses Tax loss not recognised Effect of net deferred tax assets/(liabilities) not recognised Impact of overseas tax differential Income tax expense/(benefit) (c) Unrecognised deferred tax assets Deferred tax assets have not been recognised in respect of the following items: Tax loss Other deferred tax assets Deferred tax liability in relation to exploration costs Net deferred tax assets not recognised 8 LOSS PER SHARE Basic and diluted loss per share have been calculated using: (397,102) (796,213) 7,167 (29,530) 481,294 (70,915) 9,086 - 2,623,423 507,736 (1,267,775) 1,863,384 11,989 (55,261) 522,949 311,183 5,353 - 2,099,812 440,150 (1,147,970) 1,391,992 Loss for the year attributable to equity holders of the Company Weighted average number of shares at the end of the year used in basic and diluted loss per share 2016 $ 2015 $ (1,393,340) (2,654,043) No of Shares 227,638,654 201,264,536 Basic and diluted loss per share (cents) (0.61) (1.32) As the Group is loss making, none of the potentially dilutive securities are currently dilutive. 40 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 41 9 CASH AND CASH EQUIVALENTS For the purpose of the Statement of Cash Flows, cash includes cash on hand, cash at bank and short term deposits at call, net of any outstanding bank overdraft, if any. Cash at the end of the year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows Cash at bank Total cash and cash equivalents 10 TRADE AND OTHER RECEIVABLES Other receivables Other tax receivables Total other receivables 11 OTHER ASSETS Current Prepayments Total other current assets Non-current Bank guarantee deposit Bond deposit Other capital costs Total other non-current assets 2016 $ 319,028 319,028 2016 $ 9,119 58,999 68,118 2016 $ 28,109 28,109 94,009 97,523 835 192,367 2015 $ 2,245,950 2,245,950 2015 $ 928 41,419 42,347 2015 $ 32,267 32,267 106,060 82,931 805 189,796 42 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 43 12 PROPERTY, PLANT AND EQUIPMENT Exploration computer equipment At cost Less accumulated depreciation (depreciation is capitalised as deferred expenditure) Total exploration computer equipment Exploration furniture and fittings At cost Less accumulated depreciation (depreciation is capitalised as deferred expenditure) Total exploration furniture and fittings Exploration plant and equipment At cost Less accumulated depreciation (depreciation is capitalised as deferred expenditure) Total exploration plant and equipment Office equipment At cost Less accumulated depreciation Total office equipment Total 2016 $ 6,131 (4,841) 1,290 12,580 (4,966) 7,614 502,543 (156,061) 346,482 50,425 (31,711) 18,714 374,100 2015 $ 6,028 (3,270) 2,758 12,132 (2,218) 9,914 486,765 (74,529) 412,236 49,957 (15,807) 34,150 459,058 42 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 43 Movements in carrying amounts Movements in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Gross carrying amount Balance at 1 July 2014 Additions Acquisition through business combination Disposals Net exchange difference Balance at 30 June 2015 Depreciation and impairment Balance at 1 July 2014 Depreciation Disposals Net exchange difference Exploration computer equipment $ Exploration furniture and fittings $ Exploration plant and equipment $ Office equipment $ Total $ 3,229 - 2,592 - 207 6,028 (179) (3,091) - - - 1,985 10,752 (1,462) 857 12,132 - (2,749) 531 - 21,866 246 438,446 (9,454) 35,661 486,765 (9,061) (67,159) 1,720 (29) 43,497 7,857 68,592 10,088 - (1,397) 451,790 (12,313) - 36,725 49,957 554,882 (1,057) (10,297) (15,722) (88,721) 972 - 3,223 (29) Balance at 30 June 2015 (3,270) (2,218) (74,529) (15,807) (95,824) Carrying amount as at 30 June 2015 2,758 9,914 412,236 34,150 459,058 Gross carrying amount Balance at 1 July 2015 Additions Disposals Net exchange difference Balance at 30 June 2016 Depreciation and impairment Balance at 1 July 2015 Depreciation Disposals Net exchange difference 6,028 12,132 - - 103 6,131 (3,270) (1,507) - (64) - - 448 486,765 8,934 (10,661) 17,505 49,957 554,882 617 (149) 9,551 (10,810) - 18,056 12,580 502,543 50,425 571,679 (2,218) (2,666) - (82) (74,529) (80,888) 1,727 (2,371) (15,807) (95,824) (16,053) (101,114) 149 - 1,876 (2,517) Balance at 30 June 2016 (4,841) (4,966) (156,061) (31,711) (197,579) Carrying amount as at 30 June 2016 1,290 7,614 346,482 18,714 374,100 44 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 45 13 LEASES Operating leases as lessee The Group leases 3 motor vehicles in Fiji under an operating lease. The future minimum lease payments are as follows: 30 June 2016 30 June 2015 Minimum Lease Payments Due Within 1 year $ 1-3 years $ After 3 years $ 32,725 38,209 3,011 34,464 - - Total $ 35,736 72,673 Lease expenses during the year amounted to $39,614 (2015: $35,306) representing the minimum lease payments. The rental contract has a non-cancellable term of three years. 14 CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE Balance at 1 July 2014 Expenditure on acquisition through business combination Expenditure capitalised during the year Impairment – SPL 1454 (relinquished) Balance at 30 June 2015 Balance at 1 July 2015 Expenditure capitalised during the year Balance at 30 June 2016 $ 1,676,551 25,342,078 1,088,850 (1,070,410) 27,037,069 27,037,069 652,785 27,689,854 The Directors have considered the requirements of AASB 6: Exploration for and Evaluation of Mineral Resources, and reviewed the carrying value of capitalised exploration and evaluation expenditure. Based on this review, the Directors consider the carrying value of each area of interest is supported by the anticipated future value. Furthermore, there are no indicators that the carrying values are impaired as at 30 June 2016. Given the fall in the sale price for iron ore, the Directors have decided not to continue exploration on SPL 1454. 15 TRADE AND OTHER PAYABLES Current Trade creditors Other creditors Accruals Total other payables 2016 $ 71,099 - 39,929 111,028 2015 $ 85,951 412,125 118,919 616,995 44 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 45 16 BORROWINGS Non-current Loan from third party Loan from related party Total borrowings 2016 $ 2015 $ 1,343,711 100,219 1,443,930 1,848,279 - 1,848,279 The outstanding loan payable to a third party as at 30 June 2016 is $1,343,711 (2015: $1,848,279). The agreed interest rate on the unsecured loan is 5%. The facility is not secured. There is no further facility with a third party available as at 30 June 2016 (2015: $Nil). The outstanding loan payable to a related party as at 30 June 2016 is $100,219 (2015: $Nil), refer to Note 20. The total facility of the Company with a related party is $3,500,000 as at 30 June 2016 (2015: $3,500,000), which expires on 31 December 2018. The facility is not secured. The agreed interest rate on the unsecured loan is 5%. 17 ISSUED CAPITAL Ordinary shares fully paid 228,274,086 34,752,434 224,746,947 33,769,580 2016 Shares 2015 $ Shares $ Movements in ordinary share capital Ordinary shares Balance at 1 July 2014 Fully paid ordinary shares issued 7 July 2014 at $0.26 Fully paid ordinary shares issued 17 July 2014 at $0.24 Notes No. of shares $ 119,436,540 1,923,077 4,166,666 6,377,744 500,000 1,000,000 Fully paid ordinary shares issued 26 August 2014 at $0.26 87,117,198 22,650,471 Fully paid ordinary shares issued 26 September 2014 at $0.26 Fully paid ordinary shares issued 8 January 2015 at $0.26 Fully paid ordinary shares issued 8 January 2015 at $0.30 Fully paid ordinary shares issued 2 April 2015 at $0.27 Fully paid ordinary shares issued 2 April 2015 at $0.30 Fully paid ordinary shares issued 10 April 2015 at $0.30 Fully paid ordinary shares issued 14 May 2015 at $0.33 Fully paid ordinary shares issued 26 May 2015 at $0.33 Fully paid ordinary shares issued 10 June 2015 at $0.33 Fully paid ordinary shares issued 11 June 2015 at $0.20 Fully paid ordinary shares issued 26 June 2015 at $0.36 Less costs of issue Balance at 30 June 2015 461,538 769,230 515,000 3,384,052 82,734 176,600 637,432 1,521,846 908,724 166,666 3,479,644 - 120,000 200,000 154,500 913,694 24,820 52,980 210,353 502,209 299,879 33,333 1,252,672 (523,075) 224,746,947 33,769,580 Balance at 1 July 2015 224,746,947 33,769,580 Fully paid ordinary shares issued 1 July 2015 at $0.36 Fully paid ordinary shares issued 15 July 2015 at $0.20 Fully paid ordinary shares issued 13 August 2015 at $0.20 Fully paid ordinary shares issued 16 September 2015 at $0.20 Fully paid ordinary shares issued 1 October 2015 at $0.20 Fully paid ordinary shares issued 12 November 2015 at $0.38 (1) (2) (3) (4) Less costs of issue Balance at 30 June 2016 1,144,791 166,666 166,666 166,666 1,000,000 882,350 - 412,125 33,333 33,333 33,333 200,000 335,293 (64,563) 228,274,086 34,752,434 46 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 47 The share capital of Dome Gold Mines consists only of fully paid ordinary shares. All shares are equally eligible to receive dividends and the repayment of capital and represent one vote at the shareholders' meeting of Dome Gold Mines. (1) On 15 July 2015, the Company issued 166,666 fully paid ordinary shares at $0.20 per share through exercise of options, amounting to $33,333. (2) On 13 August 2015, the Company issued 166,666 fully paid ordinary shares at $0.20 per share through exercise of options, amounting to $33,333. (3) On 16 September 2015, the Company issued 166,666 fully paid ordinary shares at $0.20 per share through exercise of options, amounting to $33,333. (4) On 1 October 2015, the Company issued 1,000,000 fully paid ordinary shares at $0.20 per share through exercise of options, amounting to $200,000. 18 CASH FLOW INFORMATION Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows: Reconciliation of cash Cash and cash equivalents 2016 $ 2015 $ 319,028 2,245,950 Reconciliation of cash flow from operations with loss from ordinary activities after income tax Loss from ordinary activities after income tax (1,393,340) (2,654,043) Non-cash flows in loss from ordinary activities Depreciation and amortisation Impairment of exploration assets Foreign exchange (gain)/loss Changes in other assets and liabilities Trade receivables and other assets Trade and other payables Net cash used in operating activities 16,053 - (98,514) 450,181 (33,485) (487,136) (1,546,241) 15,723 1,070,410 (214,402) 36,086 48,239 115,285 (1,582,702) 19 REMUNERATION OF AUDITORS During the year, the following services were paid or payable for services provided by the auditor of the company: Grant Thornton Audit Pty Ltd Audit services Taxation services Total remuneration of auditor 2016 $ 60,000 8,250 68,250 2015 $ 59,500 19,100 78,600 46 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 47 20 RELATED PARTIES TRANSACTIONS The Group has a loan from a related party as described below. Loan from related party Beginning of the year Loans advanced Loan repayments Interest charged Non-related party loan End of period 2016 $ - 100,000 - 219 - 100,219 2015 $ - 1,008,353 (268,003) 24,297 (764,647) - The agreed interest on the loans is 5%. It is not secured and repayable by 31 December 2018. 21 COMMITMENTS AND CONTINGENCIES Tenement expenditure commitments Within one year Between one to five years Total 2016 $ 2015 $ 1,677,350 779,921 2,457,271 - 2,965,948 2,965,948 There are no contingent assets or liabilities as at the date of this financial report. SPL 1451 was valid until 22 August 2016, SPL 1452 was valid until 26 August 2016, and SPL 1495 is valid until 13 July 2018. SPL 1451 and 1452 are in the process of being renewed at the date of this report. Management consider the risk of these not being renewed to be remote. 22 SEGMENT REPORTING Segment information is presented in respect of the Group’s management and internal reporting structure. Inter-segment pricing is determined on an arm’s length basis. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly income earning assets and revenue, interest bearing loans, borrowings and expenses, and corporate assets and expenses. Segment capital expenditure is the total cost incurred during the year to acquire segment assets that are expected to be used for more than one year. 48 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 49 Geographical segments For the financial year ended 30 June 2016 the Company principally operated in Fiji in the mineral exploration sector. The Group has one reportable segment, as described below: OPERATING SEGMENT 30 June 2015 Segment revenue Revenue – external Finance income Total revenue Depreciation Segment loss Segment assets Segment liabilities 30 June 2016 Segment revenue Revenue – external Finance income Total revenue Depreciation Segment gain/(loss) Segment assets Segment liabilities Fiji $ Unallocated $ Consolidated Total $ - 676 676 - 15,528 26,554 42,082 15,528 27,230 42,758 (15,723) (15,723) (566,092) (2,087,951) (2,654,043) 25,874,828 4,131,659 30,006,487 2,853,254 (387,980) 2,465,274 - 731 731 - 291,347 26,389 317,736 291,347 27,120 318,467 (16,053) (16,053) 65,425 (1,458,765) (1,393,340) 26,254,331 2,417,245 28,671,576 3,176,150 (1,621,191) 1,554,959 Reconciliation of reportable segment profit & loss, assets and liabilities Loss before tax Loss before tax for reportable segment Other loss before tax unallocated Consolidated loss before tax Assets Total assets for reportable segments Intercompany eliminations Other assets unallocated Consolidated assets Liabilities Total liabilities for reportable segments Intercompany eliminations Other liabilities unallocated Consolidated liabilities 2016 $ 2015 $ 65,425 (566,092) (1,458,765) (2,087,951) (1,393,340) (2,654,043) 26,254,331 (3,523,020) 5,940,265 25,874,828 (6,527,253) 10,658,912 28,671,576 30,006,487 3,176,150 2,853,254 (3,523,020) (6,527,253) 1,901,829 1,554,959 6,139,273 2,465,274 48 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 49 23 PARENT ENTITY DISCLOSURES As at and throughout the financial year ended 30 June 2016 the parent entity of the Group was Dome Gold Mines Ltd. Statement of profit or loss and other comprehensive income Net loss for the year Other comprehensive income Total comprehensive loss Statement of financial position Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Net assets Equity Issued capital Accumulated losses Total equity 2016 $ 2015 $ (2,098,848) (1,951,767) - - (2,098,848) (1,951,767) 3,880,851 24,893,486 28,774,337 107,670 1,443,930 1,551,600 7,483,293 23,314,971 30,798,264 611,254 1,848,279 2,459,533 27,222,737 28,338,731 34,752,434 (7,529,697) 33,769,580 (5,430,849) 27,222,737 28,338,731 The directors are of the opinion that no contingencies existed at, or subsequent to year end. 24 POST-REPORTING DATE EVENTS Subsequent to the end of the financial year: Issue of share capital • On 9 August 2016 the Company completed a placement of 7,500,000 fully paid ordinary shares at $0.20 per share to raise $1,500,000, and issued 7,500,000 unlisted options which expire on 9 August 2017. • On 16 August 2016 the Company completed a placement of 502,840 fully paid ordinary shares at $0.25 per share to raise $125,710. • On 16 August 2016 the Company completed a placement of 1,188,058 fully paid ordinary shares at $0.21 per share to raise $249,492. Induced Polarisation (IP) survey – Ono Island The Company announced on 15 August 2016 the commencement of an Induced Polarisation (IP) Survey at its Ono Island Project. Dome has engaged Fender Geophysics to undertake an Offset Pole Dipole IP survey on the Naqara East and Naqara West high sulphidation epithermal gold prospects on the northern section of Ono Island. The approximately 20.5 line-kilometre survey is scheduled to commence during the week of 22 August 2016 and will take approximately 30 days to complete. Data collected during the survey will be processed and interpreted in Sydney as the survey progresses and will be used to assist with targeting future exploration diamond drilling. 50 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 51 The Naqara East and Naqara West prospects were outlined by soil geochemistry and geological mapping that showed the presence of multi-element anomalies associated with silica-clay alteration minerals typical of those found in high sulphidation epithermal systems in volcanic terrain. The two prospects are located on the northern rim of a central volcanic caldera that created the island, which is about 4 million years old. In the Company’s opinion Ono Island represents one of the last epithermal systems to be explored on volcanic islands along the so-called “rim-of-fire” in the south Pacific. No other matters or circumstances have arisen since the end of the year that have significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years. 25 SUBSIDIARIES Particulars in relation to controlled entities: Controlled entities Dome Mines Limited Magma Mines Pty Ltd Magma Mines Limited Country of incorporation Fiji Australia Fiji Company interest in ordinary shares 2016 % 2015 % 100 100 100 100 100 100 26 FINANCIAL INSTRUMENT RISK 26.1 Risk management objectives and policies The Group is exposed to various risks in relation to financial instruments. The Group's financial assets and liabilities by category are summarised in note 3.14. The main types of risks are market risk, credit risk and liquidity risk. The Group's risk management is coordinated by management, in close co-operation with the board of directors, and focuses on actively securing the Group's short to medium term cash flows by minimising the exposure to financial markets. The Group does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Group is exposed are described below. The Group is exposed to market risk through its use of financial instruments and specifically to currency risk and certain other price risks, which result from both its operating and investing activities. 50 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 51 26.2 Market risk analysis The Group is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk and certain other price risks, which result from both its operating and investing activities. Foreign currency sensitivity Most of the Group's transactions are carried out in AUD. Exposures to currency exchange rates arise from the Group's overseas purchases, which are primarily denominated in Fijian dollars (FJD). To mitigate the Group's exposure to foreign currency risk, non-AUD cash flows are monitored. The following table illustrates the sensitivity of profit in regards to the Group's financial assets and financial liabilities and the AUD/FJD exchange rate 'all other things being equal'. It assumes a +/- 5% change of the AUD/FJD exchange rate for the year ended 30 June 2016. This percentage has been determined based on the average market volatility in exchange rates in the previous 12 months. The sensitivity analysis is based on the Group's foreign currency financial instruments held at each reporting date and also takes into account forward exchange contracts that offset effects from changes in currency exchange rates. If the AUD had strengthened against the FJD by 5% (2015: 5%) then this would have had the following impact: 30 June 2016 30 June 2015 Profit for the year 151,085 141,392 Equity 151,085 141,392 If the AUD had weakened against the FJD by 5% (2015: 5%) then this would have had the following impact: 30 June 2016 30 June 2015 Profit for the year (151,085) (141,392) Equity (151,085) (141,392) Exposures to foreign exchange rates vary during the year depending on the volume of overseas transactions. Nonetheless, the analysis above is considered to be representative of the Group's exposure to currency risk. 52 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 53 Interest rate sensitivity Interest risk arises from the use of interest bearing financial instruments. It is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk). The Group's policy is to minimise interest rate cash flow risk exposures on financing. Borrowings are therefore usually at fixed rates. At 30 June 2016, the Group is not exposed to changes in market interest rates through borrowings as all borrowings are at fixed interest rates. At 30 June 2016, the Group’s exposure to cash flow interest relates primarily to cash at bank of the Group which bears floating rates. The Group is considering investing surplus cash in long term deposits at fixed rates in the future. As at the end of the reporting period, the Group had the following floating financial instruments: 2016 2015 Weighted average interest rate % Balance $ Weighted average interest rate % Balance $ Cash and cash equivalents 0.89 319,028 1.57 2,245,950 The following table demonstrates the sensitivity to a 0.5% change in interest rates, with all other variables held constant, of the Group’s profit (through the impact on floating rate financial assets and financial liabilities). 2016 +0.5% $ 1,595 -0.5% $ (1,595) 2015 +0.5% $ 11,230 -0.5% $ (11,230) Profit/(loss) for the year 26.3 Credit risk analysis Credit risk is the risk that a counterparty fails to discharge an obligation to the Group. The Group is exposed to this risk for various financial instruments, for example by receivables from other parties, placing deposits etc. The Group's maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at the reporting date, as summarised below: Classes of financial assets - carrying amounts: Cash and cash equivalents Trade and other receivables Bank guarantee deposit Bond deposit Carrying amount 2016 $ 319,028 68,118 94,009 97,523 2015 $ 2,245,950 42,347 106,060 82,931 578,678 2,477,288 The Group continuously monitors defaults of other counterparties, identified either individually or by group, and incorporates this information into its credit risk controls. Where available at reasonable cost, external credit ratings and/or reports on other counterparties are obtained and used. The Group's policy is to deal only with creditworthy counterparties. 52 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 53 The Group's management considers that all the above financial assets that are not impaired or past due for each of the reporting dates under review are of good credit quality. The Group currently has no receivables from trading therefore is not exposed to credit risk in relation to trade receivables. None of the Group's financial assets are secured by collateral or other credit enhancements. The credit risk for cash and cash equivalents, bank guarantee deposit, bond deposit and tax refunds is considered negligible, since the counterparties are reputable banks and government body with high quality external credit ratings. 26.4 Liquidity risk analysis Liquidity risk is that the Group might be unable to meet its obligations. The Group manages its liquidity needs by monitoring scheduled debt servicing payments for financial liabilities as well as forecast cash inflows and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and week-to-week basis, as well as on the basis of a rolling 30- day projection. Long-term liquidity needs for a 180-day and a 360-day lookout period are identified monthly. Net cash requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period. The Group's objective is to maintain cash and marketable securities to meet its liquidity requirements for 90-day periods at a minimum. This objective was met for the reporting periods. Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities. 27 CAPITAL RISK MANAGEMENT Our objective of capital risk management is to manage capital and safeguard our ability to continue as a going concern, and to generate returns for shareholders. The Group manages its risk exposure of its financial instruments in accordance with the guidance of the Board of Directors. The Group uses different methods to manage and minimise its exposure to risks. These include monitoring levels of interest rates fluctuations to maximise the return of bank balances and the flexing of the gearing ratios. Liquidity risk is monitored through the development of future rolling cash flow forecasts. The final approval and monitoring of any of these policies is done by the Board which review and agrees on the policies for managing risks. The primary responsibility to monitor the financial risks lies with the Directors and the Company Secretary under the authority of the Board. The Board approved policies for managing risks including the setting up of approval limits for purchases and monitoring projections of future cash flows. 28 AUTHORISATION OF FINANCIAL STATEMENTS The consolidated financial statements for the year ended 30 June 2016 (including comparatives) were approved by the board of directors on 8 September 2016. 54 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 55 Dome Gold Mines Ltd and its controlled entities Chairman’s Message Dear Shareholder, Welcome to Dome Gold Mines Limited’s second Annual Report since listing on the Australian Securities Exchange in October 2013. This report covers the 12 month period to 30 June 2015, a year in which your Company took a major leap forward with the acquisition of a 100% interest in Magma Mines Limited, bringing Magma’s wholly owned Sigatoka Iron Sands project into Dome’s portfolio. Sigatoka is an attractive mineral sands mining project that is now Dome’s flagship and will, we believe, become a successful dredge mining operation within two years. Since acquiring Magma, Dome has produced a maiden JORC 2012 Resource Estimate for the Sigatoka project, which then became the basis of a pre-feasibility study. That study indicated robust economics for a sand dredging operation that would produce 351,000 tpa of magnetite sand (an iron ore), as well as 260,000 tpa of non-magnetic heavy mineral sand concentrate, nearly 2 million tpa of industrial sand and 684,000 tpa of gravel. This mix of products would give Sigatoka a competitive edge compared with other iron ore producers and the low capital cost and superb location at the Sigatoka River mouth only add to the commercial strength of our project. DIRECTORS’ DECLARATION Dome has also completed an Environmental Impact Assessment report for Sigatoka and has recently had The directors of the Company declare that: the exploration tenement that covers the project (SPL 1495) renewed for three years. The next steps at Sigatoka will include further resource drilling, both onshore at Koroua Island, and offshore from the river mouth, where there is excellent potential for additional resources with good grades. We will also soon be 1. In the opinion of the Directors of Dome Gold Mines Limited: applying for a mining lease over the project and moving on to undertake a Definitive Feasibility Study. Discussions have already been held with a number of overseas entities that could supply dredging equipment, project finance and markets for our products. a) The consolidated financial statements and notes of Dome Gold Mines Limited are in accordance with the Corporations Act 2001, including: i. Giving a true and fair view of its financial position as at 30 June 2016 and of its With its strong potential for stable cash flow, Sigatoka is rightly our flagship project and we intend to continue to put our prime focus on bringing Sigatoka to production as soon as possible. Investigations in the past year at our other iron sand project, the Nasivi Delta, have not given us the encouragement we sought and accordingly, the Company will relinquish that tenement (SPL 1454) in the near future, allowing us to concentrate on Sigatoka. performance for the financial year ended on that date; and ii. Complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and b) There are reasonable grounds to believe that Dome Gold Mines Limited will be able Elsewhere, we have completed geological programs at both our Kadavu Islands gold-silver project (SPL 1451), 90km south of Viti Levu, and the Nadrau Porphyry Copper-Gold project (SPL 1452), in the highlands of Viti Levu. Encouraging results were generated in each case. At Kadavu it is Ono Island that has emerged as the primary target, with the identification of two large, high sulphidation epithermal gold systems. At Nadrau, we have now recognised two key targets – Namoli and Wainivau – each of which exhibits clear porphyry style copper mineralisation parameters. The next step at both Ono Island and the Namoli-Wainivau pair is expected to be an induced polarisation (IP) geophysical survey that should help delineate targets for exploration drilling in the future. 2. The Directors have been given the declarations required by Section 295A of the to pay its debts as and when they become due and payable. Corporations Act 2001 from the Chief Executive Officer and Chief Financial Officer (or The appointment of Mr Jack McCarthy as CEO of Dome has been a significantly positive move for the equivalent) for the financial year ended 30 June 2016. Company and I am very grateful to Jack for the substantial contribution he has made to the success of the Company so far. During the year, Dome raised approximately $5.3 million in share capital, which is a remarkable achievement when capital markets have generally been so tough for resource companies. Our 3. Note 1 confirms that the consolidated financial statements also comply with Japanese director, Mr Tadao Tsubata, has been the driving force behind most of this capital raising and I sincerely thank him for that support. International Financial Reporting Standards. That same level of commitment extends through all of Dome’s ranks and I take this opportunity once again Signed in accordance with a resolution of the Directors. to thank our staff, both in Australia and Fiji, for their hard work and loyalty over the past year. With their continued efforts and the ongoing support of our shareholders, I believe we can look forward to an exciting year ahead, as we move towards our goal of becoming Fiji’s dominant mining company. G G LOWDER Garry Lowder Chairman Dated this 8 September 2016 Sydney 1 54 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 55 Level 17, 383 Kent Street Sydney NSW 2000 Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230 T +61 2 8297 2400 F +61 2 9299 4445 E info.nsw@au.gt.com W www.grantthornton.com.au Independent Auditor’s Report To the Members of Dome Gold Mines Limited Report on the financial report We have audited the accompanying financial report of Dome Gold Mines Limited (the Company), which comprises the consolidated statement of financial position as at 30 June 2016, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the consolidated entity comprising the Company and the entities it controlled at the year’s end or from time to time during the financial year. Directors’ responsibility for the financial report The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001. The Directors’ responsibility also includes 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. The Directors also state, in the notes to the financial report, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, the financial statements comply with International Financial Reporting Standards. Auditor’s responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require us to comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited. Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies. 49 56 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 57 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. Auditor’s opinion In our opinion: a the financial report of Dome Gold Mines Limited is in accordance with the Corporations Act 2001, including: i ii giving a true and fair view of the consolidated entity’s financial position as at 30 June 2016 and of its performance for the year ended on that date; and complying with Australian Accounting Standards and the Corporations Regulations 2001; and b the financial report also complies with International Financial Reporting Standards as disclosed in the notes to the financial statements. Material uncertainty regarding continuation as a going concern Without qualifying our opinion, we draw attention to Note 3.16 to the financial statements which indicates the consolidated entity incurred a net loss of $1,393,340, has net cash used in operations (including payments for exploration) of $2,036,768 during the year ended 30 June 2016, and has a cash balance of $319,028 as at that date. These conditions, along with other matters as set forth in Note 3.16, indicate the existence of a material uncertainty which may cast significant doubt about the Group’s ability to continue as a going concern and therefore, the Group may be unable to realise its assets and discharge its liabilities in the normal course of business, and at the amounts stated in the financial report. 50 56 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 57 58 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 59 Report on the remuneration report We have audited the remuneration report included in pages 21 to 22 of the directors’ report for the year ended 30 June 2016. The Directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards. Auditor’s opinion on the remuneration report In our opinion, the remuneration report of Dome Gold Mines Limited for the year ended 30 June 2016, complies with section 300A of the Corporations Act 2001. GRANT THORNTON AUDIT PTY LTD Chartered Accountants C F Farley Partner - Audit & Assurance Sydney, 8 September 2016 ASX ADDITIONAL INFORMATION Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set out below. The information is effective as at 31 August 2016. SECURITIES EXCHANGE The Company is listed on the Australian Securities Exchange. The Home Exchange is Sydney. SUBSTANTIAL SHAREHOLDERS The number of substantial shareholders and their associates are set out below: Shareholder Number of shares Onizaki Corporation Fleet Market Investments Pty Ltd Hillside Meadows Ltd Summerfell Investments Ltd Long-Last Enterprises Ltd Tiger Ten Investment Limited 30,000,000 19,776,499 18,750,000 17,333,333 16,823,850 16,357,826 VOTING RIGHTS The voting rights attached to ordinary shares, as set out in the Company’s Constitution, are that every member in person or by proxy, attorney or representative, shall have one vote on a show of hands and one vote for each share held on a poll. A member holding partly paid shares is entitled to a fraction of a vote equivalent to the proportion which the amount paid up bears to the issue price for the shares. Options don’t carry voting rights. DISTRIBUTION OF SHAREHOLDERS The total distribution of fully paid shareholders, being the only class of equity was as follows: Holding 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over Total Number of holders Ordinary Shares Unlisted options Expiring 9 August 2017 3 18 186 142 83 432 - - - - 2 2 There were 4 holders of less than a marketable parcel of 1,429 ordinary shares. Number of ordinary shares issued: 237,464,984 Number of unlisted options issued: 7,500,000 58 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 59 ON MARKET BUY BACK There is no on market buy-back. TWENTY LARGEST SHAREHOLDERS As at 31 August 2016, the twenty largest quoted shareholders held 81.26% of the fully paid ordinary shares as follows: Ordinary Shares Name Onizaki Corporation Fleet Market Investments Pty Ltd Hillside Meadows Ltd Summerfell Investments Ltd Long-Last Enterprises Ltd Tiger Ten Investment Limited Brave Top Enterprises Ltd Hadeon Valley Holdings Inc. Globe Street Investments Pty Ltd Cybersys Inc Globe Street Investments Pty Ltd Globe Street Investments Pty Ltd Thamadia Nominees Pty Ltd Mr Huanrong Ma Precious Tori Ltd Monex Boom Securities (HK) Ltd Adowork Co Ltd SST Trading Pty Ltd Mr Hiromitsu Tsuruta Mr Qian Yu TENEMENTS SCHEDULE Quantity 30,000,000 19,776,499 18,750,000 17,333,333 16,823,850 16,357,826 10,500,000 10,166,667 10,000,000 8,000,000 5,000,000 5,000,000 5,000,000 3,416,666 3,339,458 3,174,174 2,916,667 2,750,000 2,577,432 2,083,333 % 12.63 8.33 7.90 7.30 7.08 6.89 4.42 4.28 4.21 3.37 2.11 2.11 2.11 1.44 1.41 1.34 1.23 1.16 1.09 0.88 Tenement Location Holder Area (Ha) Expiry Date SPL 1451 SPL 1452 Ono Island Dome Mines Ltd 3,028 22/08/2016* Nadrau Dome Mines Ltd 33,213 26/08/2016* SPL 1495 Sigatoka Iron Sand Magma Mines Ltd 2,522 13/07/2018 Interest % 100 100 100 Note: Magma Mines Ltd and Dome Mines Ltd are wholly owned subsidiaries of Dome Gold Mines Ltd. All tenements are located in the Republic of Fiji. *Applications to renew these Special Prospecting Licences for a further 3-year period were submitted to the Mineral Resources Department, Fiji on 19 August 2016 (SPL 1451) and on 1 September 2016 (SPL 1452). The Company believes there is no reason why the renewals will not be approved. 60 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 61 CORPORATE DIRECTORY ABN 49 151 996 566 Directors Dr Garry Lowder (Chairman) Mr Andrew Skinner (Non-Executive Director) Mr Tadao Tsubata (Non-Executive Director) Mr Allen Jay (Non-Executive Director) Company Secretary Mr Marcelo Mora Corporate Office Level 7, 71 Macquarie Street Sydney NSW 2000 Australia Registered Office Level 7, 71 Macquarie Street Sydney NSW 2000 Australia Auditors Grant Thornton Audit Pty Ltd Level 17, 383 Kent Street Sydney NSW 2000 Bankers National Australia Bank 255 George Street Sydney NSW 2000 Solicitors Websters Level 11, 37 Bligh Street Sydney NSW 2000 60 Dome Gold Mines Ltd Annual Report 30 June 2016 Dome Gold Mines Ltd Annual Report 30 June 2016 61 Dome Gold Mines Ltd ABN 49 151 996 566 Level 7, 71 Macquarie Street Sydney NSW 2000 Australia GPO Box 1759 Sydney 2001 Australia T +61 2 8203 5620 F +61 2 9241 2013 E info@domegoldmines.com.au W www.domegoldmines.com.au NOTICE OF ANNUAL GENERAL MEETING – and – EXPLANATORY MEMORANDUM – and – PROXY FORM DATE & TIME OF MEETING: Thursday 27 October 2016 at 11 am VENUE: Level 7, 71 Macquarie Street Sydney NSW 2000 These documents should be read in their entirety. If shareholders are in any doubt as to how they should vote, they should seek advice from their professional advisors. DOME GOLD MINE S LTD ABN 49 151 996 566 Level 7, 71 Macquarie Str eet Sydney NSW 2000 Australia GPO Box 1759 Sydney NSW 2001 Australia T +61 2 8203 5620 F +61 2 9241 2013 E info@domegoldmines.com.au W www.domegoldmines.com.au NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that the Annual General Meeting of members is to be convened at Level 7, 71 Macquarie Street, Sydney, NSW, 2000 on 27 October 2016 at 11 am. ORDINARY BUSINESS 1. Financial Reports for the Year Ended 30 June 2016 AGENDA To receive and consider the Company's Annual Financial Reports, the Directors' Report and the Auditor's Report for the year ended 30 June 2016. To consider and, if thought fit, pass the following resolutions, with or without amendment: 2. 3. 4. 5. 6. 7. 8. 9. Resolution 1 'That the Remuneration Report for the year ended 30 June 2016 be and is hereby adopted.' Adoption of the Remuneration Report Re-election of a Director Resolution 2 'That Tadao Tsubata be and is hereby re-elected as a Director.' Ratification of Prior Issue Shares Resolution 3 'That the issue of 882,350 fully paid ordinary shares in the Company on 12 November 2015 for $0.38 per share to Masahiro Kikawa be and is hereby ratified for the purposes of ASX Listing Rules 7.4 and 7.5.’ Ratification of Prior Issue Shares Resolution 4 'That the issue of 7,500,000 fully paid ordinary shares in the Company on 9 August 2016 for $0.20 per share to Brave Top Enterprises Ltd and Cybersys Inc., be and is hereby ratified for the purposes of ASX Listing Rules 7.4 and 7.5. Resolution 5 'That the grant of 7,500,000 unlisted options in the Company on 9 August 2016 to Brave Top Enterprises Ltd and Cybersys Inc., is hereby ratified for the purposes of ASX Listing Rules 7.4 and 7.5.’ Ratification of Prior Issue Options Ratification of Prior Issue Shares Resolution 6 'That the issue of 1,188,058 fully paid ordinary shares in the Company on 16 August 2016 for $0.21 per share to Katsuji Kato and Godo Kaike be and is hereby ratified for the purposes of ASX Listing Rules 7.4 and 7.5.’ Resolution 7 'That the issue of 502,840 fully paid ordinary shares in the Company on 16 August 2016 for $0.25 per share to Hirofumi Suzuki be and is hereby ratified for the purposes of ASX Listing Rules 7.4 and 7.5.’ Ratification of Prior Issue Shares Additional capacity to issue securities Resolution 8 'That the additional capacity to issue equity securities up to 10% of the issued capital of the Company as set out in the Explanatory Memorandum attached to this Notice of Meeting be and is hereby approved for the purposes of ASX Listing Rule 7.1A.' To transact any other business that may be brought forward in accordance with the Company's Constitution. By order of the Board Marcelo Mora Company Secretary 21 September 2016 DOME GOLD MINE S LTD ABN 49 151 996 566 Level 7, 71 Macquarie Str eet Sydney NSW 2000 Australia GPO Box 1759 Sydney NSW 2001 Australia T +61 2 8203 5620 F +61 2 9241 2013 E info@domegoldmines.com.au W www.domegoldmines.com.au 1 EXPLANATORY MEMORANDUM TO THE NOTICE OF ANNUAL GENERAL MEETING This Explanatory Memorandum has been prepared to assist members to understand the business to be put to members at the Annual General Meeting to be held at Level 7, 71 Macquarie Street, Sydney, NSW, on Thursday, 27 October 2016 at 11 am Eastern Daylight Saving Time (EDST). 1. Financial Report The Financial Report, Directors' Report and Auditor's Report for the Company for the year ended 30 June 2016 will be laid before the meeting. There is no requirement for shareholders to approve these reports, however, the Chairman of the meeting will allow a reasonable opportunity to ask the auditor questions about the conduct of the audit and the content of the Auditor's Report. 2. Adoption of Remuneration Report The Remuneration Report, which can be found as part of the Directors’ Report in the Company's 2016 Annual Report, contains certain prescribed details, sets out the policy adopted by the Board of Directors and discloses the payments to key management personnel, Directors and senior executives. In accordance with section 250R of the Corporations Act, a resolution that the Remuneration Report be adopted must be put to the vote. The resolution is advisory only and does not bind the Directors or the Company. Shareholders will be given a reasonable opportunity at the meeting to comment on and ask questions about the Company’s Remuneration Report. The Chairman intends to exercise all undirected proxies in favour of Resolution 1. If the Chairman of the Meeting is appointed as your proxy and you have not specified the way the Chairman is to vote on Resolution 1, by signing and returning the Proxy Form, you are considered to have provided the Chairman with an express authorisation for the Chairman to vote the proxy in accordance with the Chairman's intention. Voting Exclusion Statement A vote on the resolution must not be cast (in any capacity) by or on behalf of any of the following persons: a member of the key management personnel details of whose remuneration are included in the remuneration report; a close related party of such a member. However such a person may cast a vote on the resolution if: the person does so as a proxy appointed by writing that specifies how the proxy is to vote on the proposed resolution; and the vote is not cast on behalf of such a person. The Directors recommend that you vote IN FAVOUR of advisory Resolution 1. The Chairman of the Meeting intends to vote undirected proxies IN FAVOUR of Resolution 1. 3. Re-election of Tadao Tsubata In accordance with Article 39.1 of the Company's Constitution, a Director must not hold office without re-election past the third Annual General Meeting following the Director’s appointment or three years, whichever is longer. A Director who retires in accordance with these requirements is eligible for re-election. Mr Tadao Tsubata retires by rotation and, being eligible, offers himself for re-election. Mr Tadao Tsubata graduated with a B.A. in Economics in 1991 from Kokushikan University, Tokyo. From 1991 to 1997, Tadao worked in corporate finance at a major Japanese securities company. From this role he moved to a major international life insurance and investment company where he was involved in retail offerings and distribution of the business in Japan. Establishing his first business in life insurance distribution and agencies in 2001, this formed the basis of a new business being a Japanese focused asset management company. In early 2010 the asset management company’s activities grew in prominence and a number of private investment funds were formed to specifically target investments internationally, in mining exploration, primary production and other growth industries. Tadao continues in the role of Chief Executive Officer of this business with operations in many countries including Australia. The Directors recommend that you vote IN FAVOUR of Resolution 2. The Chairman for this Resolution intends to vote undirected proxies IN FAVOUR of Resolution 2. 2     4. Ratification of Prior Issue of Shares On 12 November 2016, the Company issued 882,350 ordinary shares to raise $335,293. The shares were issued under the 15% placement capacity under the Listing Rules, and the issue of the shares did not breach ASX Listing Rule 7.1 at the time they were originally issued. Resolution 3 seeks Shareholders ratification pursuant to ASX Listing Rule 7.4 of this share issue. By ratifying this issue, the Company will retain flexibility to issue equity securities in the future up to the 15% annual placement capacity set out in ASX Listing Rule 7.1 without the requirement to obtain prior shareholders’ approval. For the purpose of Listing Rule 7.5, the following information is provided:  Number of securities allotted: Issue price: Terms:  Names of allottees: Intended use of funds: 882,350 on 12 November 2016. $0.38 per share. Fully paid ordinary shares ranking pari passu with existing fully paid ordinary shares. Mr Masahiro Kikawa who is not a related party. To further advance the exploration program in Fiji and working capital. Voting Exclusions on this Resolution: The Company will disregard any votes cast on this Resolution by Masahiro Kikawa and any of his associates. However, the Company need not disregard a vote if: (a) (b) it is cast by a person as a proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or it is cast by the person Chairing the meeting as a proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. The Directors recommend that you vote IN FAVOUR of Resolution 3. The Chairman of the Meeting intends to vote undirected proxies IN FAVOUR of Resolution 3. 5. Ratification of Prior Issue of Shares On 9 August 2016, the Company issued 7,500,000 ordinary shares to raise $1,500,000. The shares were issued under the 15% placement capacity under the Listing Rules, and the issue of the shares did not breach ASX Listing Rule 7.1 at the time they were originally issued. Resolution 4 seeks Shareholders ratification pursuant to ASX Listing Rule 7.4 of this share issue. By ratifying this issue, the Company will retain flexibility to issue equity securities in the future up to the 15% annual placement capacity set out in ASX Listing Rule 7.1 without the requirement to obtain prior shareholders’ approval. For the purpose of Listing Rule 7.5, the following information is provided:  Number of securities allotted: 7,500,000 on 9 August 2016. Issue price: Terms:  Names of allottees: Intended use of funds: $0.20 per share. Fully paid ordinary shares ranking pari passu with existing fully paid ordinary shares. Brave Top Enterprises Ltd. Cybersys Inc. none of whom are related parties. To further advance the exploration program in Fiji and working capital. 5,000,000 ordinary shares 2,500,000 ordinary shares Voting Exclusions on this Resolution: The Company will disregard any votes cast on this Resolution by Brave Top Enterprises Ltd and Cybersys Inc., and any of their associates. However, the Company need not disregard a vote if: (a) (b) it is cast by a person as a proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or it is cast by the person chairing the meeting as a proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. The Directors recommend that you vote IN FAVOUR of Resolution 4. The Chairman of the Meeting intends to vote undirected proxies IN FAVOUR of Resolution 4. 3       6. Ratification of the issue of Options Resolution 5 seeks the ratification by shareholders of the grant of 7,500,000 options in the Company on 9 August 2016 for the purposes of Listing Rule 7.4 and 7.5. The issue of the options did not breach ASX Listing Rule 7.1 at the time they were originally issued. This ratification will provide the Company with the ability to raise further funds, if required, will maximise the flexibility of the Company’s funds management and will facilitate planning for the Company’s ongoing activities. For the purpose of Listing Rule 7.5, the following information is provided:  Number of securities allotted: 7,500,000 on 9 August 2016. Issue price:  Terms: Nil  Unlisted options. Each option entitles the holder to subscribe for and be allotted one ordinary share in Dome Gold Mines Ltd at an exercise price of 20 cents per option. The rights of the option holder can be changed to comply with the listing rules when the company undertakes a reorganization of capital at the time of the reorganization. The options do not entitle the holder to participate in new issues without exercising the options. The options do not confer the right to change the exercise price nor a change to the underlying number of ordinary shares over which it can be exercised. The options are transferable.  Upon exercise of the options, the options will convert into fully paid ordinary shares which will rank equally in all respects with existing fully paid ordinary shares.  Names of allottees: Brave Top Enterprises Ltd Cybersys Inc. none of whom are related parties. 5,000,000 unlisted options. 2,500,000 unlisted options. Intended use of funds: No funds were raised. Voting Exclusions on this Resolution: The Company will disregard any votes cast on this Resolution by Brave Top Enterprises Ltd and Cybersys Inc., and any of their associates. However, the Company need not disregard a vote if: (a) (b) it is cast by a person as a proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or it is cast by the person chairing the meeting as a proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. The Directors recommend that you vote IN FAVOUR of Resolution 5. The Chairman of the Meeting intends to vote undirected proxies IN FAVOUR of Resolution 5. 4        7. Ratification of Prior Issue of Shares On 16 August 2016, the Company issued 1,188,058 ordinary shares to raise $249,492. The shares were issued under the 15% placement capacity under the Listing Rules, and the issue of the shares did not breach ASX Listing Rule 7.1 at the time they were originally issued. Resolution 6 seeks Shareholders ratification pursuant to ASX Listing Rule 7.4 of this share issue. By ratifying this issue, the Company will retain flexibility to issue equity securities in the future up to the 15% annual placement capacity set out in ASX Listing Rule 7.1 without the requirement to obtain prior shareholders’ approval. For the purpose of Listing Rule 7.5, the following information is provided:  Number of securities allotted: Issue price: Terms:  Names of allottees: Intended use of funds: 1,188,058 on 16 August 2016. $0.21 per share. Fully paid ordinary shares ranking pari passu with existing fully paid ordinary shares. Mr Katsuji Kato. Mr Godo Kaike none of whom are related parties To further advance the exploration program in Fiji and working capital. 594,029 ordinary shares 594,029 ordinary shares Voting Exclusions on this Resolution: The Company will disregard any votes cast on this Resolution by Katsuji Kato and Godo Kaike and any of their associates. However, the Company need not disregard a vote if: (a) (b) it is cast by a person as a proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or it is cast by the person chairing the meeting as a proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. The Directors recommend that you vote IN FAVOUR of Resolution 6. The Chairman of the Meeting intends to vote undirected proxies IN FAVOUR of Resolution 6. 8. Ratification of Prior Issue of Shares On 16 August 2016, the Company issued 502,840 ordinary shares to raise $125,710. The shares were issued under the 15% placement capacity under the Listing Rules, and the issue of the shares did not breach ASX Listing Rule 7.1 at the time they were originally issued. Resolution 7 seeks Shareholders ratification pursuant to ASX Listing Rule 7.4 of this share issue. By ratifying this issue, the Company will retain flexibility to issue equity securities in the future up to the 15% annual placement capacity set out in ASX Listing Rule 7.1 without the requirement to obtain prior shareholders’ approval. For the purpose of Listing Rule 7.5, the following information is provided:  Number of securities allotted: Issue price: Terms:  Names of allottees: Intended use of funds: 502,840 on 16 August 2016. $0.25 per share. Fully paid ordinary shares ranking pari passu with existing fully paid ordinary shares. Mr Hirofumi Suzuki who is not a related party. To further advance the exploration program in Fiji and working capital. Voting Exclusions on this Resolution: The Company will disregard any votes cast on this Resolution by Hirofumi Suzuki and any of his associates. However, the Company need not disregard a vote if: (a) (b) it is cast by a person as a proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or it is cast by the person chairing the meeting as a proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. The Directors recommend that you vote IN FAVOUR of Resolution 7. The Chairman of the Meeting intends to vote undirected proxies IN FAVOUR of Resolution 7. 5       9. Approval of additional capacity to issue securities ASX Listing Rule 7.1A enables the Company to issue equity securities up to 10% of its issued share capital through placements over a 12 month period after the AGM ('10% Placement Facility'). The 10% Placement Facility is in addition to the Company's 15% placement capacity under ASX Listing Rule 7.1. Resolution 8, which is a Special Resolution requiring 75% of votes cast to be in favour of the resolution, seeks shareholder approval for the Company to have the ability to issue equity securities under the 10% Placement Facility on the following terms: (a) Placement Period Shareholder approval of the 10% Placement Facility is valid from the date of the AGM and expires on the earlier of: (i) the date that is 12 months after the date of the AGM; or (ii) the date of the approval by shareholders of a transaction under ASX Listing Rules 11.1.2 (a significant change to the nature or scale of activities) or 11.2 (disposal of main undertaking). (b) Equity Securities Any equity securities issued under the 10% Placement Facility must be in the same class as an existing quoted class of equity securities of the Company which, in the Company's case, are fully paid ordinary shares. (c) Formula for calculating 10% Placement Facility. The maximum number of shares that can be issued under the 10% Placement Facility is calculated as follows: (A x D) – E Where: A is the number of fully paid ordinary shares on issue 12 months before the date of issue or agreement: (i) (ii) (iii) plus the number of fully paid ordinary shares issued in the 12 months under an exception in ASX Listing Rule 7.2; plus the number of partly paid ordinary shares that became fully paid in the 12 months; plus the number of fully paid shares issued in the 12 months with approval of holders of shares under Listing Rule 7.1 and 7.4; (iii) less the number of fully paid shares cancelled in the 12 months. D is 10%. E is the number of fully paid ordinary shares issued or agreed to be issued under ASX Listing Rule 7.1A.2 in the 12 months before the date of the issue or agreement to issue that are not issued with the approval of shareholders under ASX Listing Rules 7.1 or 7.4. The current maximum number of shares, as at the date of this meeting, that can be issued under the 10% Placement Facility is 227,391,736. The Company’s current capacity to issue securities as at the date of the meeting pursuant to listing rule 7.1 is 34,108,760. (d) Minimum Issue Price The minimum issue price of equity securities issued for the purpose of Listing Rule 7.1.A.3 must be not less than 75% of the volume weighted average price of equity securities in the same class calculated over the 15 trading days on which trades were recorded immediately before: (i) (ii) the date on which the price at which the equity securities are to be issued is agreed; or if the equity securities are not issued within 5 trading days of the date in paragraph (i) above, the date on which the equity securities are issued. (e) Risk of Economic and Voting Dilution If Resolution 8 is approved by shareholders and the Company issues equity securities under the 10% Placement Facility, the existing shareholders' voting power in the Company will be diluted as shown in the table below. Further, there is a risk that: 6 (i) (ii) the market price for the Company's equity securities may be significantly lower on the date of the issue of the equity securities than on the date of the AGM; and the equity securities may be issued at a price that is at a discount to the market price for the Company's equity securities on the issue date. Because Variable A in the formula for calculating 10% Placement Facility, and consequently the number of shares that can be issued under the 10% Placement Facility, can change during the Placement Period, the table below shows a matrix of scenarios of the potential dilution of existing shareholders as at the date of the AGM on the basis of: (i) (ii) the issue price of equity securities being the current approximate market price of fully paid ordinary shares, plus 50% and minus 50%; and the maximum number of shares that can be issued under the 10% Placement Facility in accordance with the definition of Variable A in the formula for calculating 10% Placement Facility increasing by 50% and 100%. Variable A in 10% Placement Facility under ASX Listing Rule 7.1A.2 Voting Dilution and Placement Facility Capacity Current Variable A 227,391,736 shares 50% increase in current Variable A 341,087,604 shares 100% increase in current Variable A 454,783,472 shares 10% 22,739,174 Shares 13.0% 34,108,760 Shares 16.7% 45,478,347 shares 50% Decrease in Current Approximate Market Price $0.175 Issue Price and Funds Raised Current Approximate Market Price $0.350 50% Increase in Current Approximate Market Price $0.525 $3,979,355 $7,958,711 $11,938,066 $5,969,033 $11,938,066 $17,907,099 $7,958,711 $15,917,422 $23,876,132 As an example, if Variable A is increased to 454,783,472 shares, the 10% Placement Facility capacity is 45,478,347 shares and therefore the dilution of existing shares as at the date of the AGM, being 227,391,736 shares, is calculated as: 45,478,347 ÷ (227,391,736 + 45,478,347) = 16.7% (f) Other Matters The Company may issue equity securities under the 10% Placement Facility for cash consideration to support the Company's ongoing exploration activities and working capital or non-cash consideration for the acquisition of compatible business opportunities which may arise. In such circumstances the Company will provide a valuation of the non-cash consideration as required by ASX Listing Rule 7.1A. The Company’s allocation policy is dependent on the prevailing market conditions at the time of any proposed issue pursuant to the 10% Placement Facility. As there is no issue currently proposed, the identity of the allottees is not currently known and will be determined on a case-by-case basis at the time of allotment, having regard to factors including, but not limited to, the following: (i) the methods of raising funds that are available to the Company, including but not limited to, rights issues or other issues in which existing security holders can participate; (ii) the effect of the issue of the equity securities on the control of the Company; (iii) the financial situation and solvency of the Company; and (iv) advice from corporate, financial and broking advisers (if applicable). The allottees under the 10% Placement Facility have not currently been determined but may include existing substantial shareholders and/or new shareholders who are not related parties or associates of a related party of the Company. As the Company has not previously obtained shareholder approval under ASX Listing Rule 7.1A, no equity securities have been issued under the 10% Placement Facility. 7 Voting Exclusion: The Company will disregard any votes cast on Resolution 8 by: a person who may participate in the proposed issue; and a person who might obtain a benefit, except a benefit solely in the capacity of a holder of ordinary securities, if the resolution is passed and any such associates of that person. However, the Company need not disregard a vote if: it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or it is cast by the person chairing the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. The Directors recommend that you vote IN FAVOUR of Resolution 8. The Chairman of the Meeting intends to vote undirected proxies IN FAVOUR of Resolution 8. 8     DOME GOLD MINES LTD (ACN 151 996 566) PROXY FORM Shareholder: I/We being a member/s of Dome Gold Mines Ltd and entitled to attend and vote HEREBY APPOINT the Chairman of the Meeting (mark box) OR if you are not appointing the Chair of the Meeting as your proxy, please write the name of the person or body corporate (excluding the registered shareholder) you are appointing as your proxy below or failing him, the Chairman of the Meeting, as my/our Proxy to vote for me/us and on my/our behalf and to vote in accordance with the following directions (or if no directions have been given, as the proxy sees fit) at the Annual General Meeting of Members of the Company to be held at 11 am on 27 October 2016 and at any adjournment thereof. The Proxy is directed by me/us to vote as indicated by the marks in the appropriate voting boxes below: RESOLUTIONS FOR AGAINST ABSTAIN 1. Adoption of the Remuneration Report 2. Re-election of Mr Tadao Tsubata as a Director 3. Ratification of prior issue of shares 4. Ratification of prior issue of shares 5. Ratification of prior issue of shares 6. Ratification of prior issue of shares 7. Ratification of prior issue of shares 8. Approval additional capacity to issue equity securities The Chairman of the Meeting is authorised to exercise undirected proxies on remuneration related matter (Resolution 1): If I/we have appointed the Chairman of the Meeting as my/our proxy or the Chairman of the Meeting becomes my/our proxy by default, by signing and submitting this form I/we expressly authorise the Chairman of the Meeting to exercise my/our proxy in respect of Resolution 1 (except where I/we have indicated a different voting intention above) even though Resolution 1 is connected directly or indirectly with the remuneration of a member of key management personnel for Dome Gold Mines Ltd, which includes the Chairman. The Chairman of the Meeting intends to vote all undirected proxies in favour of each resolution (including Resolution 1). If you have appointed the Chairman of the Meeting as your proxy (or the Chairman of the Meeting becomes your proxy by default), and you wish to give the Chairman specific voting directions on an item, you should mark the appropriate box/es opposite those resolutions above (directing the Chairman to vote for, against or to abstain from voting). If you mark the Abstain box for a particular item, you are directing your proxy not to vote on your behalf on a show of hands or on a poll and your vote will not be counted in calculating the required majority if a poll is called. PLEASE SIGN HERE - This section must be signed in accordance with the instructions overleaf to enable your directions to be implemented. Individual or Securityholder 1 Securityholder 2 Securityholder 3 Sole Director and Sole Company Secretary Dated: ___/___/ 2016 Director Director/Company Secretary How to Complete the Proxy Form 1 Appointment of a Proxy If you wish to appoint the Chairman of the Meeting as your proxy, mark the box. If the individual or body corporate you wish to appoint as your proxy is someone other than the Chairman of the Meeting please write the full name of that individual or body corporate in the space provided. If you leave this section blank, or your named proxy does not attend the meeting, the Chairman of the Meeting will be your proxy. A proxy need not be a securityholder of the company. Votes on Items of Business You may direct your proxy how to vote by placing a mark in one of the three boxes opposite each item of business. All your securities will be voted in accordance with such a direction unless you indicate only a portion of voting rights are to be voted on any item by inserting the percentage or number of securities you wish to vote in the appropriate box or boxes. If you do not mark any of the boxes on a given item, your proxy may vote as he or she chooses. If you mark more than one box on an item your vote on that item will be invalid. Voting restrictions Any member of the key management personnel of the Company’s consolidated group whose remuneration details are included in the Remuneration Report (or a closely related party of any such member), may not vote, and the Company will disregard the votes cast by such persons on Resolution 1, unless the vote is cast: 2 3 as a proxy appointed in writing which specifies how the proxy is to vote on Resolution1; or the proxy is the Chairman of the meeting, and: o o the appointment does not specify the way the proxy is to vote on the resolution; and the appointment expressly authorises the Chairman to exercise the proxy even if the resolution is connected directly or indirectly with the remuneration of the key management personnel. 4 Appointment of a Second Proxy You are entitled to appoint up to two proxies to attend the meeting and vote on a poll. If you wish to appoint a second proxy, an additional Proxy Form may be obtained by telephoning the company or you may copy this form. To appoint a second proxy you must: (a) on each of the first Proxy Form and the second Proxy Form state the percentage of your voting rights or number of securities applicable to that form. If the appointments do not specify the percentage or number of votes that each proxy may exercise, each proxy may exercise half your votes. Fractions of votes will be disregarded. (b) return both forms together. 5 Signing Instructions You must sign this form as follows in the spaces provided: Individual: where the holding is in one name, the holder must sign. Joint Holding: where the holding is in more than one name, all of the securityholders should sign. Power of Attorney: to sign under Power of Attorney, you must have already lodged this document with the registry or the Company. If you have not previously lodged this document for notation, please attach a certified photocopy of the Power of Attorney to this form when you return it. Companies: where the company has a Sole Director who is also the Sole Company Secretary, this form must be signed by that person. If the company (pursuant to section 204A of the Corporations Act 2001) does not have a Company Secretary, a Sole Director can also sign alone. Otherwise this form must be signed by a Director jointly with either another Director or a Company Secretary. Please indicate the office held by signing in the appropriate place. 6 Persons entitle to attend and vote The Company has determined, in accordance with regulation 7.11.37 of the Corporations Regulations 2001 (Cth), that the Company's shares quoted on the ASX Limited at 7.00 pm Sydney time on 25 October 2016 are taken, for the purposes of the Annual General Meeting to be held by the persons who held them at that time. Accordingly, those persons are entitled to attend and vote (if not excluded) at the meeting. If a representative of a corporate Securityholder or proxy is to attend the meeting the appropriate "Certificate of Appointment of Corporate Representative" should be produced prior to admission. A form of the certificate may be obtained from the company's share registry. Lodgment of a Proxy This Proxy Form (and any Power of Attorney under which it is signed) must be received at an address given below no later than 48 hours before the time appointed for holding the meeting Documents may be lodged: IN PERSON: BY MAIL: BY FAX: BY E-MAIL: Registered Office – Level 7, Macquarie Street, Sydney, NSW 2000, Australia GPO Box 1759, Sydney, NSW 2001, Australia +61 2 9241 2013 info@domegoldmines.com.au  