Dome Gold Mines
Annual Report 2017

Plain-text annual report

ANNUAL REPORT 30 JUNE 2017 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 Yacata Koro LOMA LOMA Mamanuca Islands Viti Levu NADI SPL1452 SIGATOKA Batiki SPL1495 SUVA Beqa Vatulele SPL1451 VUNISEA Ono Kadavu Makogai Wakaya Vatu Vara 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 Dome Gold Mines Ltd Annual Report 30 June 2016 3 CONTENTS 1 3 23 24 25 26 27 28 29 51 52 56 58 CHAIRMAN’S MESSAGE DIRECTORS’ REPORT AUDITOR’S INDEPENDENCE DECLARATION CORPORATE GOVERNANCE STATEMENT CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONSOLIDATED STATEMENT OF CASH FLOWS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DIRECTORS’ DECLARATION INDEPENDENT AUDITOR’S REPORT ASX ADDITIONAL INFORMATION CORPORATE DIRECTORY 2 Dome Gold Mines Ltd Annual Report 30 June 2016 CHAIRMAN’S MESSAGE Dear Shareholder I am pleased to present the Dome Gold Mines Annual Report for the year ended 30 June 2017. After many delays, with a variety of causes, Dome’s work programme in Fiji is finally gathering significant momentum. At Sigatoka, a new round of sonic drilling has commenced, aimed at extending and infilling previous drilling to enlarge and upgrade the already substantial resources outlined within our exploration tenement (SPL1495). Upon completion, this new work will provide the basis for a Final Feasibility Study for proposed sand mining operations at Sigatoka, producing magnetite iron ore and industrial sand, among other products. An application for a mining lease (ML) at Sigatoka is being processed by the Fijian Government’s Mineral Resources Department. We have been advised that grant of the ML will not occur until Dome completes and submits to the Government a full feasibility study for mining, including the expression of costs and revenues in Fijian currency (FJD). The programme now underway will enable us to meet that requirement in a timely manner and we anticipate proceeding with development at Sigatoka soon after the grant of the ML. We continue to be encouraged by the robust economics of the sand mining project, whose commercial strength has only improved with the recent recovery in iron ore prices. Added to that, is an increasing awareness across Asia and the Southwest Pacific (including Australia) of a looming and serious shortage of good quality industrial sand. Dome is one of the few companies listed on the ASX that has significant potential to deliver into this demand and we expect the simple dredging and processing operation at Sigatoka to generate strong and stable revenues for many years to come. While new work is underway at Sigatoka, we have mobilised a field crew onto Ono Island, where the Company holds an exploration tenement (SPL1451) over two adjacent gold prospects of high sulphidation epithermal type. This licence was renewed during the past year for a further three years. Dome’s geologists believe that there is excellent potential for the discovery of a substantial gold deposit at Ono and this interpretation was very much enhanced during the period by the results of a major geophysical survey (involving the induced polarisation, or IP, method). The IP survey showed strong chargeability and resistivity zones at depth below the surface outcrops of veined, altered and geochemically anomalous rocks that characterise both prospects. Such zones will be the targets for a diamond drilling programme planned to commence on Ono shortly. Tenders have been called for the provision of a diamond drill rig capable of drilling HQ core to a depth of 500 metres, together with competent drillers and off-siders and all ancillary equipment and personnel required to drill up to 10 drill holes of up to 500m depth each. Acceptance of a tender and signing of a contract for the planned drilling is expected to be completed very soon. In preparation for this procedure, Dome personnel have been constructing a field camp and operations base at Ono, as well as preparing drill rig access tracks and pad from which to conduct the drilling. Three sites have been selected initially, with a minimum of two holes to be drilled from the first two of them. Later holes will be sited to take account of the results from the initial holes. I am pleased to report that Dome’s exploration tenement at Nadrau on Fiji’s main island of Viti Levu (SPL1452) was also renewed during the year for a further two years. An IP survey, similar to that carried out successfully at Ono, is scheduled to take place at Nadrau’s main target area of Namoli-Wainivau in the first half of 2018. Dome takes its social responsibility very seriously and over the past year we have once again provided financial and material support for the Fijian communities in which we work. Ms Jean White has led that process and her expertise in this area is much appreciated. All at Dome were deeply saddened in March 2017 by the passing of our director, Mr Allen Jay, after a long illness. Allen was much admired, both by his colleagues within the Company and by those he interacted with at a professional and personal level elsewhere. His knowledge and experience of Fiji were of great value to Dome and he is very much missed. Allen was a firm believer in the geological potential of Fiji and a strong advocate for its people. 1 At the end of June 2017, Mr Andrew Skinner retired as a director of Dome, after many years of service, with a particular emphasis on the commercial aspects of the Company's operations in Fiji. I thank him for that service and wish him well in his continuing endeavours. Ms Sarah Harvey was appointed as a director in July. Ms Harvey is a lawyer and her wise counsel will be welcomed by the Board as we proceed in Fiji. As Dome gathers new momentum it is a pleasure for me to once again acknowledge the continuing and very substantial contribution made by my fellow director, Mr Tadao Tsubata. A resident of Japan, Mr Tsubata has been very instrumental in raising capital for Dome and in building the investor support that has put us in a strong position to move forward now that the broader business environment is looking much better. Finally, I would like to thank the staff and contractors of Dome, whose loyalty and hard work have been unstinting. Mr Jack McCarthy, as CEO, has provided strong leadership and firm control of our programme. He has been well backed up by a small but effective staff in Sydney and a very keen team in Fiji, who are now enjoying the opportunity to build wealth for their company, their country and themselves by applying their skills to the discovery and development of Fiji's mineral resource endowment. G. G. LOWDER Chairman Dome Gold Mines Ltd 2 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 2017. DIRECTORS’ DETAILS The following persons were Directors of Dome during or since the end of the financial year. DR GARRY LOWDER 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 Chairman Independent Non-Executive Director Member of Audit and Risk Committee Director since 1 March 2012 Other current Directorships: None Previous Directorships (last 3 years): None Interests in shares: 570,000 shares Interests in options: None in the Australian and Dr Garry Lowder is a geologist who has spent over 45 years 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. 3 MR TADAO TSUBATA Bachelor of Arts in Economics (Kokushikan University, Tokyo) Non-Executive Director Director since 8 July 2011 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 large 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 activities of both the insurance business and the asset management company grew to the extent that a private investment advisory firm was established international investments in mining exploration, primary production and other growth industries. Tadao continues in the role of Chief Executive Officer of this business and its international operations including in Australia. specifically target to MS SARAH HARVEY Bachelor of Arts (University of Adelaide) Bachelor of Laws (University of Adelaide) Master of Laws (College of Law, Sydney) Certificate in Governance Practice Governance) (Institute of Alternate Director (appointed 8 December 2015, resigned 21 July 2016) Non Executive Director & Chair of Audit Committee Director since 27 July 2017 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, 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. 4 Other current Directorships: None Previous Directorships (last 3 years): None Interests in shares: 7,342,393 shares Interests in options: None Other current Directorships: None Previous Directorships (last 3 years): None Interests in shares: 20,776,499 shares Interests in options: None MR ALLEN JAY Bachelor of Earth Science (Geology) (Macquarie University) Chemistry Certificate - Inorganic Analytical Chemistry (Newcastle Technical College) Non-Executive Director Director from 29 March 2012 until 12 March 2017 Mr Allen Jay had 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 copper deposits. These are located on tenements now owned by Newcrest that are adjacent to Dome’s Central Viti Levu Project. Allen had 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 held a Bachelor of Earth Science (Geology) from Macquarie University and a Chemistry Certificate – Inorganic Analytical Chemistry from the Newcastle Technical College, Newcastle. Allen Jay passed away on 12 March 2017 after a long illness. Other current Directorships: None Previous Directorships (last 3 years): None Interests in shares: 350,000 shares Interests in options: None MR ANDREW SKINNER Master of Economics - Professional Accounting (Macquarie University) Master of Corporate Governance (Macquarie University) Diploma Property Development Distinction (UTS) Bachelor of Philosophy (Macquarie University) Member, CPA Australia Non-Executive Director and Chair of Audit Committee Director from 8 July 2011 until 30 June 2017 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. Currently, Andrew is Principal 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 Skinner resigned as a Non-Executive Director of Dome on 30 June 2017. Other current Directorships: Zamia Metals Ltd and GPS Alliance Holdings Ltd Previous Directorships (last 3 years): None Interests in shares: 3,155,000 shares Interests in options: None 5 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. 6 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 (Ono Island Project) and SPL1452 (Nadrau Project). 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. 7 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. Figure 2 – Sigatoka River and Kulukulu resource area and estimates 8 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. 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 further 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 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. Induced Polarisation (IP) arrays were completed in October 2016 identifying anomalies that require testing. A 10-hole exploration diamond drill program is now underway. Figure 3 - Naqara East and West Prospects on Ono Island showing the extent of hydrothermal alteration and the IP survey lines. Proposed drill hole locations (A to E) are based on the IP results and surface geology 9 The Company announced on 7 October 2016 that an offset pole-dipole IP survey has been successfully completed on two adjacent high sulphidation epithermal gold prospects on the northern part of Ono Island. The offset pole-dipole IP survey involved 4 arrays, 2 over each prospect (Figure 3). Transmitter electrodes were placed along a central cut line at 100m intervals with 3 to 4 additional electrodes at the end of each receiver line for totals of between 31 and 32 points per array (gold coloured lines on Figure 3). Receiver electrodes were placed at 100m intervals along the two survey lines either side of the transmitter line (34 points). Two 32 channel IP receivers were used to take 3 to 4 readings at each electrode. Figures 4 & 5 are compilations of surface alteration and the processed IP data for the East and West Naqara prospects, known as Naqara East and Naqara West. These had previously been covered by soil sampling and geological mapping campaigns that identified areas of intense argillic alteration and zones of silicification and anomalous geochemistry, proximal to the northern rim of a volcanic caldera (Figure 6). Figures 4 & 5 – Plots of the chargeability (top) and resistivity responses at an apparent depth of 250m with the outline of the argillic (hatch) and silicification (red) superimposed as well as locations recommended for exploration drilling. The offset pole-dipole survey has been successful in assisting with location of an initial exploration drilling program on Ono Island, one of the few remaining untested epithermal targets along the so-called “Rim of Fire” in the South West Pacific. The schematic model in Figure 6 shows how the hydrothermal alteration, anomalous geochemistry, present land surface and IP data may indicate the presence of gold-silver bearing sulphide mineralisation in this environment. 10 Figure 6 – Schematic model of a volcano showing the typical location of sulphide mineralisation relative to the interpreted land surface on Ono Island. The Company announced on 19 June 2017 that on-site preparations have commenced in advance of a drill program designed to sample the IP anomalies detected. The preparations include modification to a large building in Naqara village that will be used as an office and accommodation for Dome’s geological team. Adjacent to the building core handling and logging infrastructure will also be built. During this construction stage access tracks to the first 5 drill sites will be marked in preparation for the arrival of an excavator. A diamond drill rig will be mobilised by self-propelled barge to Ono in the near future, subject to rig availability. Up to 10 diamond drill holes are planned, each up to 500m deep, in the first stage of the program. Plate 1 – Refurbished building that will provide office and accommodation for the geological team on Ono Island 11 Plate 2 – Core handling building being constructed in preparation for Ono Island diamond drilling program The renewal of SPL1451 for a further 3-year period for the licence was granted by the Mineral Resources Department on 13 February 2017. 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 7 & 8). 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. The renewal of SPL1452 for a further 2-year period for the licence was granted by the Mineral Resources Department on 13 February 2017. 12 Figure 7 – 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 8 – Wainivau porphyry system conceptual cross section. Note the drill hole as shown is as proposed and has not yet been drilled. 13 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 8 2014 and announced to the market in an ASX release dated 10 October 2014. Resource comparison 2017 to 2016 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. 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 15 August 2016, 7 October 2016, 17 February 2017, 19 June 2017, 29 June 2017 and 17 July 2017, 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 14 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. Financial Results As at 30 June 2017, Dome held $1,182,258 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 $1,596,892 (2016: $1,496,956). The net asset position of the Group increased from $27,116,618 at 30 June 2016 to $28,825,022 at 30 June 2017. 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 2017 were as follows: Issue of share capital For the year ended 30 June 2017, Dome has raised $3,771,204 by private placements. The funds are being used for exploration and general working capital. Details of these raisings are as follows:  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.  On 16 August 2016 the Company completed a placement of 1,188,058 fully paid ordinary shares at $0.21 per share and 502,840 fully paid ordinary shares @ $0.25 to raise $375,202.  On 5 April 2017 the Company completed a placement of 1,567,500 fully paid ordinary shares at $0.215 per share to raise $337,013.  On 19 June 2017 the Company completed a placement of 3,973,976 fully paid ordinary shares at $0.20 per share to raise $794,795.  On 29 June 2017 the Company completed a placement of 3,820,969 fully paid ordinary shares at $0.20 per share to raise $764,194. DIVIDENDS No dividends were declared or paid during the financial year (2016: $nil). 15 EVENTS ARISING SINCE THE END OF THE REPORTING PERIOD Subsequent to the end of the financial year: Drilling resumed at Sigatoka The Company announced on 17 July 2017 that sonic drilling will resume on its industrial sand-magnetite Sigatoka Project during that week. The program is designed to drill parts of the sand deposit on Koroura Island not drilled previously and on freehold not drilled in sufficient detail in earlier programs. Data collected will be used to update the existing JORC 2012 report. Options expired 7,500,000 unquoted options at an exercise price of $0.20 expired unexercised on 9 August 2017. 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: Director Garry G Lowder Andrew B Skinner (resigned 30 June 2017) Tadao Tsubata Allen Jay (deceased 12 March 2017 Sarah E Harvey (resigned 21 July 2016) UNISSUED SHARES UNDER OPTION BOARD MEETINGS AUDIT COMMITTEE MEETINGS Entitled to attend 4 Attended 4 Entitled to attend 2 Attended 2 4 4 3 - 4 4 2 - 2 - - - 2 - - - Unissued ordinary shares of Dome under option as at 30 June 2017 were as follows: 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. 16 All options expired on the expiry date. The persons entitled to exercise the options did not have, by virtue of the options, the right to participate in the share issue of any other body corporate. SHARES ISSUED AS A RESULT OF EXERCISE During or since the end of the financial year, the Company did not issue ordinary shares as a result of the exercise of options. 17 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 2017, 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 2016 was approved by shareholders on a show of hands at the Company’s Annual General Meeting. Consequences of performance on shareholder wealth In considering the Group’s performance and benefits for shareholder wealth, the Board has regard to the following indices in respect of the current financial year and the previous four (4) financial years: Item EPS (cents) Dividends (cents per share) 2017 (0.67) - 2016 (0.66) - 2015 (1.32) - 2014 (1.39) - 2013 (1.35) - Net loss ($) Share price ($) (1,596,892) (1,496,956) (2,654,043) (1,609,834) (1,191,769) 0.24 0.42 0.37 0.27 - The Board considers that these indices do not have any impact on the Group’s performance. 18 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 Year Cash salary & fees $ 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) Sarah Harvey (Alternate Director) 2017 2016 2017 2016 2017 2016 2017 2016 2017 17,057 14,500 15,300 39,600 19,800 39,600 - - - - - - 72,600 24,000 39,600 2,000 2016 14,000 Other Key Management Personnel John (Jack) McCarthy (CEO) 2017 Total 2016 Total 2017 2016 2017 2016 180,000 180,000 306,757 24,000 327,300 - - - - - - - - - - - - - - - - - - - - 32,443 35,000 - - - - - - - - 35,000 35,000 67,443 70,000 - - - - - - - - - - - - - - 49,500 49,500 15,300 39,600 19,800 39,600 96,600 39,600 2,000 14,000 215,000 215,000 398,200 397,300 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 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 2017. In 2017 “other fees” represented consulting fees for consulting services provided. 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 2017. No terms of equity-settled share based payment transactions have been altered or modified by the issuing entity during the 2017 financial year. 19 d. Other information Shares held by key management personnel The number of ordinary shares in the Company during the 2017 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 2017 Director Balance at start of year Granted as remuneration Received on exercise Other changes Held at the end of reporting period Garry Lowder Andrew Skinner* 570,000 3,210,000 Tadao Tsubata 16,845,726 Allen Jay** John McCarthy 350,000 260,000 Sarah Harvey*** 20,776,499 - - - - - - - - - - - - - (55,000) (9,503,333) - - - 570,000 3,155,000 7,342,393 350,000 260,000 20,776,499 * Andrew Skinner resigned on 30 June 2017 and held 3,155,000 as at the date of his resignation. ** Allen Jay passed away on 12 March 2017 and held 350,000 shares as at the date of his death. *** Sarah Harvey resigned as an alternate director on 21 July 2016 and held 20,776,449 shares as at the date of her resignation. Note: None of the shares included in the table above are held nominally by key management personnel. Service Agreements for Directors and key management personnel Directors are engaged under contracts. Their remuneration is not fixed and fluctuates in line with the financial situation of the Company. The terms of their engagement are unspecified, and there is no period of notice of termination. Mr John V McCarthy is engaged under a service agreement. His remuneration is reported in the table in section b above. The terms of his engagement are unspecified, and there is a 3 months’ notice of termination. Options held by key management personnel As at 30 June 2017, no Directors or senior executives held options of the Company. End of audited remuneration report. 20 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 AND INSURANCE OF OFFICERS AND AUDITORS 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 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 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. PROCEEDINGS OF BEHALF OF THE COMPANY No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. 21 AUDITOR'S INDEPENDENCE DECLARATION A copy of the Auditor’s Independence Declaration as required under s307C of the Corporations Act 2001 is included on page 23 of this financial report and forms part of this Directors’ Report. Signed in accordance with a resolution of the Directors. G. G. Lowder Chairman Sydney, 14 September 2017 22 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 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 2017, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b no contraventions of any applicable code of professional conduct in relation to the audit. GRANT THORNTON AUDIT PTY LTD Chartered Accountants M D Dewhurst Partner - Audit & Assurance Sydney, 14 September 2017 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. 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 2017 is dated as at 30 June 2017 and was approved by the Board on 14 September 2017. 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. 24 CONSOLIDATED STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017 Other income Employee benefits expenses (including directors fees) Other expenses Operating loss Depreciation Finance costs Gain/(loss) on foreign exchange Loss before income tax expense Income tax expense Loss for the year Notes 2017 $ 2016 (restated) $ 4 5 6 7 16,004 318,467 (523,260) (1,026,849) (1,534,105) (9,742) (52,952) (93) (655,726) (1,089,439) (1,426,698) (16,053) (53,786) (419) (1,596,892) (1,496,956) - - (1,596,892) (1,496,956) Other comprehensive income for the year Items that may be reclassified subsequently to profit or loss: Exchange difference on translating foreign controlled entities (62,691) 89,507 Total comprehensive loss for the year (1,659,583) (1,407,449) Earnings per share Basic and diluted loss per share (cents per share) 8 (0.67) (0.66) The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 25 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 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 assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Notes 2017 $ 2016 (restated) $ 9 10 11 12 14 11 15 1,182,258 40,609 76,191 1,299,058 319,028 68,118 28,109 415,255 282,739 374,100 28,395,904 27,689,854 211,718 192,367 28,890,361 28,256,321 30,189,419 28,671,576 146,438 146,438 111,028 111,028 Borrowings 16 1,217,959 1,443,930 TOTAL NON-CURRENT LIABILITIES 1,217,959 1,443,930 TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Foreign currency translation reserve Accumulated losses TOTAL EQUITY 1,364,397 1,554,958 28,825,022 27,116,618 17 38,120,421 34,752,434 174,404 237,095 (9,469,803) (7,872,911) 28,825,022 27,116,618 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. 26 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017 Foreign currency translation reserves $ Issued capital $ Accumulated losses $ Total equity $ Balance at 1 July 2015 (restated) 33,769,580 147,588 (6,375,955) 27,541,213 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 1,047,417 (64,563) 982,854 - - - - - - 89,507 - - - - 1,047,417 (64,563) 982,854 89,507 - (1,496,956) (1,496,956) 89,507 (1,496,956) (1,407,449) Balance at 30 June 2016 (restated) 34,752,434 237,095 (7,872,911) 27,116,618 Balance at 1 July 2016 (restated) 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 34,752,434 10,925 (7,646,741) 27,116,618 3,771,204 (403,217) 3,367,987 - - - 237,095 (7,872,911) 27,116,618 - - - (62,691) - - - - 3,771,204 (403,217) 3,367,987 (62,691) - (1,596,892) (1,596,892) (62,691) (1,596,892) (1,659,583) Balance at 30 June 2017 38,120,421 174,404 (9,469,803) 28,825,022 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 27 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017 CASH FLOWS FROM OPERATING ACTIVITIES Interest received Cash received from other income Cash paid to suppliers and employees Interest paid Other tax (paid)/received Notes 2017 $ 2016 $ 15,931 37,111 24,180 254,236 (1,588,907) (1,754,864) - (17,516) (82,164) 11,952 Net cash used in operating activities 18 (1,553,381) (1,546,660) CASH FLOWS FROM INVESTING ACTIVITIES Cash paid on deposit/advance payment Cash paid on other investment activities Cash received on release of bond/deposit Cash received from disposal of property, plant & equipment 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 Repayment of borrowings Net cash provided by financing activities (115,966) - 94,009 200 (9,293) (697,969) (729,019) 3,771,204 - (345,893) (278,924) 3,146,387 (5,869) (5,292) 10,545 - (617) (490,527) (491,760) 635,293 100,000 (148,206) (475,970) 111,117 Net increase/(decrease) in cash and cash equivalents 863,987 (1,927,303) Cash and cash equivalents at the beginning of the financial year Exchange differences on cash and cash equivalents 319,028 (757) Cash and cash equivalents at the end of the financial year 9 1,182,258 2,245,950 381 319,028 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. 28 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 2017 were approved and authorised for issue by the board of directors on 14 September 2017 (see note 29). 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 Suite 2, Level 8, 17-19 Bridge Street, Sydney 2000. Dome Gold Mines Ltd is the parent company with 100% ownership of:  Magma Mines Pty Ltd;   Magma Mines Ltd (a company limited by shares incorporated in Fiji). Dome Mines Ltd (a company limited by shares incorporated in Fiji); and 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. 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. 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. 29 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. Based on the Group’s preliminary assessment, the Standard is 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. 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 2017. 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. 30 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. 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. 31 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 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. 32 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. The depreciation rates and useful lives used for each class of depreciable assets are: Class of fixed asset Useful Lives Depreciation basis Exploration computer equipment Exploration furniture and fittings Exploration plant and equipment Office equipment 2.5-4.2 years 3-8.3 years 2.5-8.3 years 2-20 years 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. Refundable research and development costs are reported as a government grant through other income. 33 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. 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. 34 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 ($28,395,904 at 30 June 2017) (2016: $27,689,854) 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. As at the date of reporting, all licences have been renewed and are up to date. (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 $1,596,892 (2016: $1,496,956), used $2,251,350 (2016: $2,036,768) of net cash in operations including payments for exploration during the year ended 30 June 2017, and has a cash balance of $1,182,258 at 30 June 2017 (2016: $319,028). These conditions give rise to a material uncertainty that may cast significant doubt upon the Group's ability to continue as a going concern. The ongoing operation of the Group is dependent upon:   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. 35 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. 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. 36 4 OTHER INCOME R&D refund Interest income Total other income 5 OTHER EXPENSES Consultant expenses Loss on disposal of property, plant & equipment Office expenses Other expenses Tenement related costs Total other expenses 6 FINANCE COSTS Interest expenses for borrowings at amortised cost - - 7 Related party Third party INCOME TAX (a) Income tax expense/(benefit) Current tax Deferred tax 2017 $ - 16,004 16,004 2017 $ 625,309 3,572 279,913 118,055 - 2016 $ 291,347 27,120 318,467 2016 $ 687,672 - 312,050 77,230 12,487 1,026,849 1,089,439 2017 $ 4,726 48,226 52,952 2017 $ - - - - (b) Reconciliation of income tax expense to prima facie tax payable: Loss before tax Prima facie income tax benefit at the Australian tax rate of 27.5% (2016: 28.5%) 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 balances 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 37 (1,596,892) (439,145) 10,724 - 441,320 (20,235) 7,336 - 2,237,637 634,043 (1,407,515) 1,464,165 2016 $ 219 53,567 53,786 2016 (restated) $ - - (1,496,956) (426,633) 7,167 - 481,294 (70,915) 9,087 - 2,623,423 542,743 (1,267,775) 1,898,391 8 LOSS PER SHARE Basic and diluted loss per share have been calculated using: Loss for the year attributable to equity holders of the Company 2017 $ 2016 (restated) $ (1,596,892) (1,496,956) No of Shares Weighted average number of shares at the end of the year used in basic and diluted loss per share 236,975,726 227,638,654 Basic and diluted loss per share (cents) (0.67) (0.66) As the Group is loss making, none of the potentially dilutive securities are currently dilutive. 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 $ 2016 $ 28,109 28,109 94,009 97,523 835 192,367 2017 $ 1,182,258 1,182,258 2017 $ 797 39,812 40,609 9,119 58,999 68,118 2017 $ 76,191 76,191 114,543 96,356 819 211,718 38 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 2017 $ 7,435 (2,992) 4,443 12,832 (6,409) 6,423 495,271 (230,954) 264,317 24,744 (17,188) 7,556 282,739 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 39 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 2015 Additions Disposals Exploration computer equipment $ Exploration furniture and fittings $ Exploration plant and equipment $ Office equipment $ Total $ 6,028 12,132 486,765 49,957 554,882 - - - - 8,934 (10,661) 617 (149) - 9,551 (10,810) 18,056 Net exchange difference 103 448 17,505 Balance at 30 June 2016 6,131 12,580 502,543 50,425 571,679 Depreciation and impairment Balance at 1 July 2015 Depreciation Disposals Net exchange difference (3,270) (1,507) - (64) (2,218) (2,666) - (82) (74,529) (15,807) (95,824) (80,888) (16,053) (101,114) 1,727 (2,371) 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 Gross carrying amount Balance at 1 July 2016 Additions Disposals Net exchange difference Balance at 30 June 2017 Depreciation and impairment 6,131 4,564 (3,206) (54) 7,435 12,580 502,543 487 - 1,885 50,425 2,357 - (28,038) (235) (9,157) - 12,832 495,271 24,744 571,679 9,293 (31,244) (9,446) 540,282 Balance at 1 July 2016 (4,841) (4,966) (156,061) (31,711) (197,579) Depreciation Disposals Net exchange difference (644) 2,443 50 (1,536) (77,581) - 93 - 2,688 (9,743) 24,266 - (89,504) 26,709 2,831 Balance at 30 June 2017 (2,992) (6,409) (230,954) (17,188) (257,543) Carrying amount as at 30 June 2017 4,443 6,423 264,317 7,556 282,739 40 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 2017 30 June 2016 Minimum Lease Payments Due Within 1 year $ 1-3years $ After 3 years $ 24,281 32,725 42,653 3,011 1,939 - Total $ 68,873 35,736 Lease expenses during the year amounted to $35,824 (2016: $39,614) 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 2015 Expenditure capitalised during the year Balance at 30 June 2016 Balance at 1 July 2016 Expenditure capitalised during the year Balance at 30 June 2017 $ 27,037,069 652,785 27,689,854 27,689,854 706,050 28,395,904 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 2017. 15 TRADE AND OTHER PAYABLES Current Accruals Trade creditors Other payables Provisions Total other payables 16 BORROWINGS Non-current Loan from third party Loan from related party Total borrowings 2017 $ 100,692 12,689 12,683 20,374 146,438 2017 $ 2016 $ 39,929 6,873 47,172 17,054 111,028 2016 $ 1,119,938 98,021 1,217,959 1,343,711 100,219 1,443,930 41 The outstanding loan payable to a third party as at 30 June 2017 is $1,119,938 (2016: $1,343,711). 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 2017 (2016: $Nil). The outstanding loan payable to a related party as at 30 June 2017 is $98,021 (2016: $100,219), refer to Note 20. The total facility of the Company with a related party is $3,500,000 as at 30 June 2017 (2016: $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 246,827,429 38,120,421 228,274,086 34,752,434 2017 2016 Shares $ Shares $ Movements in ordinary share capital Ordinary shares Balance at 1 July 2015 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 Less costs of issue No. of shares 224,746,947 1,144,791 166,666 166,666 166,666 1,000,000 882,350 - $ 33,769,580 412,125 33,333 33,333 33,333 200,000 335,293 (64,563) Balance at 30 June 2016 228,274,086 34,752,434 Balance at 1 July 2016 Fully paid ordinary shares issued 9 August 2016 at $0.20 Fully paid ordinary shares issued 16 August 2016 at $0.21 Fully paid ordinary shares issued 16 August 2016 at $0.25 Fully paid ordinary shares issued 5 April 2017 at $0.215 Fully paid ordinary shares issued 19 June 2017 at $0.20 Fully paid ordinary shares issued 29 June 2017 at $0.20 Less costs of issue 228,274,086 7,500,000 1,188,058 502,840 1,567,500 3,973,976 3,820,969 - 34,752,434 1,500,000 249,492 125,710 337,013 794,795 764,194 (403,217) Balance at 30 June 2017 246,827,429 38,120,421 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. 42 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 Reconciliation of cash flow from operations with loss from ordinary activities after income tax 2017 $ 2016 (restated) $ 1,182,258 319,028 Loss from ordinary activities after income tax (1,596,892) (1,496,956) Non-cash flows in loss from ordinary activities Depreciation and amortisation (Gain)/loss on sale of property, plant & equipment Changes in other assets and liabilities Trade receivables and other assets Trade and other payables 9,742 3,572 (29,898) 35,345 24,750 16,053 - 450,181 (28,802) (487,136) Net cash used in operating activities (1,553,381) (1,546,660) 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 20 RELATED PARTY 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 End of period 2017 $ 50,000 - 50,000 2017 $ 100,219 - (6,924) 4,726 98,021 2016 $ 60,000 8,250 68,250 2016 $ - 100,000 - 219 100,219 The agreed interest on the loans is 5%. It is not secured and repayable in full by 31 December 2020. 43 21 COMMITMENTS AND CONTINGENCIES Minimum tenement expenditure requirements Within one year Between one to five years Total 2017 $ - 1,698,408 1,698,408 2016 $ 1,677,350 779,921 2,457,271 There are no contingent assets or liabilities as at the date of this financial report. The minimum tenement expenditure requirements are guidelines only by the Mineral Resources Department in Fiji. SPL 1451 is valid until 12 February 2020, SPL 1452 is valid until 12 February 2019, and SPL 1495 is valid until 12 July 2018. 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. Geographical segments For the financial year ended 30 June 2017 the Company principally operated in Fiji in the mineral exploration sector. The Group has one reportable segment, as described below: Operating Segment 30 June 2016 (restated) Segment revenue Revenue – external Finance income Total revenue Depreciation Segment loss Fiji $ Unallocated $ Consolidated total $ - 730 730 - (33,508) 291,347 26,390 317,737 (16,053) (1,463,448) 291,347 27,120 318,467 (16,053) (1,496,956) Segment assets 26,254,331 2,417,245 28,671,576 Segment liabilities 3,176,150 (1,621,192) 1,554,958 44 Operating Segment Fiji $ Unallocated $ Consolidated total $ 30 June 2017 Segment revenue Revenue – external Finance income Total revenue Depreciation - 725 725 - Segment profit/(loss) (19,948) - 15,279 15,279 - 16,004 16,004 (9,742) (1,576,944) (9,742) (1,596,892) Segment assets 26,611,433 3,577,986 30,189,419 Segment liabilities 3,547,105 (2,182,708) 1,364,397 Reconciliation of reportable segment profit & loss, assets and liabilities Loss before tax Loss before tax for reportable segment Other loss before tax unallocated Prepayments Consolidated loss before tax Assets Total assets for reportable segments Intercompany eliminations Prepayments Other assets unallocated Consolidated assets Liabilities Total liabilities for reportable segments Intercompany eliminations Prepayments Other liabilities unallocated Consolidated liabilities 2017 $ 2016 (restated) $ (19,948) (1,576,944) (1,596,892) 26,611,433 (3,877,282) 7,455,268 30,189,419 3,547,105 (3,877,282) 1,694,574 1,364,397 (33,508) (1,463,448) (1,496,956) 26,254,331 (3,523,020) 5,940,265 28,671,576 3,176,150 (3,523,020) 1,901,828 1,554,958 23 PARENT ENTITY DISCLOSURES As at and throughout the financial year ended 30 June 2017 the parent entity of the Group was Dome Gold Mines Ltd. Statement of profit or loss & other comprehensive income Net loss for the year Other comprehensive income Total comprehensive loss 2017 $ (1,571,625) (68,786) (1,640,411) 2016 $ (2,101,194) 2,346 (2,098,848) 45 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 Foreign currency translation reserve Total equity 2017 $ 5,090,469 25,220,542 30,311,011 142,739 1,217,959 1,360,698 2016 $ 3,880,851 24,893,486 28,774,337 107,670 1,443,930 1,551,600 28,950,313 27,222,737 38,120,421 (9,103,668) (66,440) 28,950,313 34,752,434 (7,532,043) 2,346 27,222,737 The directors are of the opinion that no contingencies existed at, or subsequent to year end. 24 RESTATEMENT It has been identified that the gains and losses arising from translation of the intercompany loans the parent has made to its Fijian subsidiaries had been recorded as part of the profit or loss for the period. This is inconsistent with the requirements of AASB 121, which states that such exchange differences shall be recognised in other comprehensive income. These financial statements have been restated to present the comparatives for the year ended 30 June 2016, and the balances as at 30 June 2016 to reflect the correct treatment, of taking the translation gains or losses on the group loans through other comprehensive income to the “Foreign currency translation reserve”. The impacts of this restatement on the comparatives presented in the financial statements are as summarised below: Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2016 Loss for the period Exchange difference on translating foreign controlled entities As previously presented $ Restatement adjustment $ Restated $ 1,393,340 103,616 1,496,956 14,109 (103,616) (89,507) Total comprehensive income 1,407,449 - 1,407,449 46 Statement of Financial Position As at 30 June 2016 Net assets Equity Issued capital Foreign currency translation reserve Accumulated losses Total equity As previously presented $ 27,116,618 34,752,434 10,925 (7,646,741) 27,116,618 Restatement adjustment $ - - 226,170 (226,170) - Restated $ 27,116,618 34,752,434 237,095 (7,872,911) 27,116,618 25 POST-REPORTING DATE EVENTS Subsequent to the end of the financial year: Drilling resumed at Sigatoka The Company announced on 17 July 2017 that sonic drilling will resume on its industrial sand-magnetite Sigatoka Project during that week. The program is designed to drill parts of the sand deposit on Koroura Island not drilled previously and on freehold not drilled in sufficient detail in earlier programs. Data collected will be used to update the existing JORC 2012 report. Options expired 7,500,000 unquoted options at an exercise price of $0.20 expired unexercised on 9 August 2017. 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. 26 SUBSIDIARIES Particulars in relation to controlled entities: Controlled entities Dome Mines Limited Magma Mines Pty Ltd Magma Mines Limited Country of incorporation Company interest in ordinary shares 2017 % 2016 % Fiji Australia Fiji 100 100 100 100 100 100 47 27 FINANCIAL INSTRUMENT RISK 27.1 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. 27.2 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 2017. 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% (2016: 5%) then this would have had the following impact: 30 June 2017 30 June 2016 Profit for the year $ 168,726 151,085 Equity $ 168,726 151,085 If the AUD had weakened against the FJD by 5% (2016: 5%) then this would have had the following impact: 30 June 2017 30 June 2016 Profit for the year $ (168,726) (151,085) Equity $ (168,726) (151,085) 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. 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). 48 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 2017, the Group is not exposed to changes in market interest rates through borrowings as all borrowings are at fixed interest rates. At 30 June 2017, 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: 2017 2016 Weighted average interest rate % Balance $ Weighted average interest rate % Balance $ Cash and cash equivalents 0.58 1,182,258 0.89 319,028 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). 2017 2016 +0.5% $ 5,911 -0.5% $ (5,911) +0.5% $ 1,595 -0.5% $ (1,595) Profit/(loss) for the year 27.3 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 Carrying amounts: Cash and cash equivalents Trade and other receivables Bank guarantee deposit Bond deposit Carrying amount 2017 $ 2016 $ 1,182,258 40,609 114,543 96,356 1,433,766 319,028 68,118 94,009 97,523 578,678 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. 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. 49 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. 27.4 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. 28 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. 29 AUTHORISATION OF FINANCIAL STATEMENTS The consolidated financial statements for the year ended 30 June 2017 (including comparatives) were approved by the board of directors on 14 September 2017. 50 DIRECTORS’ DECLARATION The directors of the Company declare that: 1 In the opinion of the Directors of Dome Gold Mines Limited: 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 2017 and of its 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 to pay its debts as and when they become due and payable. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 2 from the Chief Executive Officer and Chief Financial Officer (or equivalent) for the financial year ended 30 June 2017. Note 1 confirms that the consolidated financial statements also comply with International Financial 3 Reporting Standards. Signed in accordance with a resolution of the Directors. G. G. Lowder Chairman Dated 14 September 2017 Sydney 51 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 Audit of the Financial Report Opinion We have audited the financial report of Dome Gold Mines Limited (the Company), and its subsidiaries (the Group) which comprises the consolidated statement of financial position as at 30 June 2017, 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, and notes to the consolidated financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion, the accompanying consolidated financial report of Dome Gold Mines Limited, is in accordance with the Corporations Act 2001, including: a Giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its performance for the year ended on that date; and b Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material Uncertainty Related to Going Concern We draw attention to Note 3.16 in the financial statements, which indicates that the Group incurred a net loss of $1,596,892, used $2,251,350 of net cash in operations. As stated in Note 3.16, these events or conditions, along with other matters as set forth in Note 3.16, indicate that a material uncertainty exists that may cast doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial report of the current period. These matters were addressed in the context of our audit of the consolidated financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matter How our audit addressed the key audit matter Exploration and Evaluation Assets – valuation Note 3 and 14 At 30 June 2017 the carrying value of Exploration and Evaluation Assets was $28,395,904. In accordance with AASB 6 Exploration for and Evaluation of Mineral Resources, the company is required to assess at each reporting date if there are any triggers for impairment which may suggest the carrying value is in excess of the recoverable value. There are a number of assumptions made when assessing the recoverability of capitalised costs many times it is hinged upon the future success of projects. This area is a key audit matter due to the inherent subjectivity that is involved in the Group making judgements in relation to the evaluation for any impairment indicators, in accordance with AASB 6: Exploration for and Evaluation of Mineral Resources. - Our procedures included, amongst others:  Obtaining the management prepared reconciliation of capitalised exploration and evaluation expenditure and agreeing to the general ledger;  Reviewing management’s area of interest considerations against AASB 6;  Conducting a detailed review of management’s assessment of trigger events prepared in accordance with AASB 6 including; - Tracing projects to statutory registers, exploration licenses and third party confirmations to determine whether a right of tenure existed; Enquiry of management regarding their intentions to carry out exploration and evaluation activity in the relevant exploration area, including review of managements’ budgeted expenditure; - Understanding whether any data exists to suggest that the carrying value of these exploration and evaluation assets are unlikely to be recovered through development or sale;  Reviewing the appropriateness of the related disclosures within the financial statements. Information Other than the Financial Report and Auditor’s Report Thereon The Directors are responsible for the other information. The other information comprises the information in the Group’s annual report for the year ended 30 June 2017, but does not include the financial report and the auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors’ for the Financial Report The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our auditor’s report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 18 to 20 of the directors’ report for the year ended 30 June 2017. In our opinion, the Remuneration Report of Dome Gold Mines Limited, for the year ended 30 June 2017, complies with section 300A of the Corporations Act 2001. Responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. GRANT THORNTON AUDIT PTY LTD Chartered Accountants M D Dewhurst Partner - Audit & Assurance Sydney, 14 September 2017 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 2017. 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 30,000,000 19,776,499 18,750,000 17,333,333 16,823,850 CLASS AND 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: Range 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over Total Total Shareholders Total No of Shares 5 22 175 139 93 434 1,013 65,302 1,743,400 3,406,789 241,610,925 246,827,429 LESS THAN MARKETABLE PARCELS On 31 August 2017, there were 15 holders of less than a marketable parcel of 2,273 ordinary shares. 56 ON MARKET BUY BACK There is no on market buy-back. ESCROWED SECURITIES As at 31 August 2017, there were no escrowed securities. TWENTY LARGEST SHAREHOLDERS As at 31 August 2017, the twenty largest quoted shareholders held 77.54% of the fully paid ordinary shares as follows: Name Onizaki Corporation Fleet Market Investments Pty Ltd Hillside Meadows Ltd Summerfell Investments Ltd Long-Last Enterprises Ltd Brave Top Enterprises Ltd Hadeon Valley Holdings Inc. Globe Street Investments Pty Ltd Globe Street Investments Pty Ltd Cybersys Inc Tiger Ten Investment Limited Primavera Thamadia Nominees Pty Ltd Mr Masayuki Kudo Monex Boom Securities (HK) Ltd Mr Zhengjian Xu Miyashita Denki Mr Katsuji Kato SST Trading Pty Ltd Mr Hiromitsu Tsuruta TENEMENTS SCHEDULE Ordinary Shares Quantity 30,000,000 19,776,499 18,750,000 17,333,333 16,823,850 10,500,000 10,166,667 10,000,000 10,000,000 8,000,000 7,292,393 5,000,000 5,000,000 3,973,976 3,560,895 3,426,666 3,360,171 3,099,220 2,750,000 2,577,432 % 12.15 8.01 7.60 7.02 6.82 4.25 4.12 4.05 4.05 3.24 2.95 2.03 2.03 1.61 1.44 1.39 1.36 1.26 1.11 1.04 Tenement Location Holder SPL 1451 SPL 1452 SPL 1495 Ono Island Nadrau Sigatoka Dome Mines Ltd Dome Mines Ltd Magma Mines Ltd Area (Ha) 3,028 33,213 2,522 Expiry Date 12/02/2020 12/02/2019 13/07/2018 Interest % 100 100 100 Note: Magma Mines Ltd and Dome Mines Ltd, both incorporated in Fiji, are wholly owned subsidiaries of Dome Gold Mines Ltd. All tenements are located in the Republic of Fiji. 57 CORPORATE DIRECTORY ABN 49 151 996 566 Directors Dr Garry Lowder (Chairman) Mr Tadao Tsubata (Non-Executive Director) Ms Sarah Harvey (Non-Executive Director) Company Secretary Mr Marcelo Mora Corporate Office Suite 2, Level 8, 17-19 Bridge Street Sydney NSW 2000 Australia Registered Office Suite 2, Level 8, 17-19 Bridge 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 58 Dome Gold Mines Ltd ABN 49 151 996 566 Level 8, 17-19 Bridge 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