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
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CONTENTS
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55
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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
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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
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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:
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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.
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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
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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.
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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.
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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
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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
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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
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57
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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
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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.
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Dome Gold Mines Ltd Annual Report 30 June 2016
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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
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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