Dome Gold Mines
Annual Report 2018

Plain-text annual report

ABN 49 151 996 566 Annual Report 30 June 2018 Dome Gold Mines Ltd and its controlled entities Table of Contents Chairman’s Message ................................................................................................................... 1 Directors’ Report ........................................................................................................................ 3 Auditor’s Independence Declaration ........................................................................................ 27 Corporate Governance Statement ............................................................................................. 28 Consolidated Statement of Profit or Loss and Other Comprehensive Income ......................... 29 Consolidated Statement of Financial Position .......................................................................... 30 Consolidated Statement of Changes in Equity.......................................................................... 31 Consolidated Statement of Cash Flows .................................................................................... 32 Notes to the Consolidated Financial Statements ....................................................................... 33 Directors’ Declaration ............................................................................................................... 59 Independent Auditor’s Report ................................................................................................... 60 ASX Additional Information .................................................................................................... 63 Corporate Directory .................................................................................................................. 66 Dome Gold Mines Ltd and its controlled entities Chairman’s Message Dear Shareholder I am pleased to present the Annual Report of Dome Gold Mines Limited for the year ended 30 June 2018. The past twelve months have seen significant advances at both our Sigatoka Ironsand Project and Ono Island Gold Project in Fiji, while our third project (Nadrau Copper-Gold) currently has a lower priority and awaits further exploration at a later date. At Sigatoka, the main focus of activity was on Koroua Island, near the mouth of the Sigatoka River, where a comprehensive drilling programme was completed, utilising the company’s own sonic drill rig. This work filled an important gap in our knowledge of sand distribution and thickness within the currently delineated Sigatoka JORC 2012 mineral resource, defined by earlier sonic drilling. Correlation from hole to hole was good, with generally about 2m of silty clay/loam overburden above some 8m of coarse to very coarse sand and up to 15m of finer sand below that. Most drill holes extended from surface to about 25m and the majority of these ended in mineralised fine sand. The results from the island drilling are very encouraging, with thick sand sequences and heavy mineral abundances, including magnetite, consistent with those in the existing resource. A little more drilling remains to be done in this area and once that is completed, a new mineral resource estimate will be commissioned for Sigatoka. While we await that resource upgrade we are pleased to note the emergence of strong domestic demand for sand and gravel within Fiji as a result of the country’s ongoing infrastructure development and economic growth. We expect therefore to find local markets for most if not all of our expected industrial sand and gravel production, with only the magnetite and bulk heavy mineral concentrates to be exported in full. Our ability to supply high quality industrial sand to the Fijian domestic market will be of significant economic benefit to the country and its people. For Dome, that will be a very pleasing outcome, as we are always very conscious that we are guests in Fiji. As such, we are well aware of the need to meet our social and economic responsibilities for our host nation and constantly strive to exceed expectations in that regard. Ono Island, situated approximately 80km south of Fiji’s main island, has been the other principal site of exploration activity by Dome over the past year. Here the targets of interest are two adjacent gold prospects of high sulphidation, epithermal type. These are expressed at surface by intense rock alteration and (oxidised) sulphide mineralisation over a wide area, accompanied by anomalous gold, silver, arsenic and other metals in soil samples. Encouraged by the size and intensity of alteration and mineralisation at Ono, and recognising the significant analogy between Ono and other Southwest Pacific gold prospects and mines, Dome conducted a geophysical (IP) survey over the two prospects in 2016. That work identified strong chargeability anomalies at depth, with attendant zones of high resistivity. This was interpreted as strongly indicative of the potential for epithermal gold mineralisation at depth and represented a very attractive exploration target. Accordingly, an initial diamond drilling programme was designed and implemented during the first half of 2018. That work was performed for Dome by a Fiji-based contractor known as Geodrill. This first phase programme saw a total of 2276m of drilling in seven holes, testing parts of both the eastern and western Naqara prospects on Ono. All seven holes intersected rock displaying strong to intense argillic (clay) alteration, accompanied by silicification and the presence of sulphides (mainly pyrite) on fractures, in veins and as disseminated grains. Maximum sulphide mineralisation corresponded well to the targeted zones of high chargeability, confirming the veracity of the IP survey and interpretation. Anomalous copper, molybdenum and weakly anomalous gold and silver values were reported from assays of drill core and these results provide much encouragement that the Naqara prospects comprise a fertile, metal-bearing system. With such a large volume of rock to be tested (roughly 2km3 in the top 500m), as yet quite limited information on what might actually be controlling metal distribution, and only seven drill holes to date, the search for gold at Ono is very much a work in progress. A good deal more drilling will be required to unveil Ono’s secrets. In keeping with industry best practice in mineral exploration, Dome will carry out a thorough review of results to date, including 3-D modelling of geophysics, geochemistry, alteration and sulphide distribution, before we launch a second phase of drilling. That modelling should help us identify specific gold targets more definitively than was possible before any direct sub-surface information was available from drilling. In particular, we will be looking for evidence of boiling zones and other geological factors that may control the distribution and deposition of gold. 1 Dome Gold Mines Ltd and its controlled entities Chairman’s Message As mentioned above, Dome takes its social responsibility towards the Government and people of Fiji very seriously and over the past year we have continued to give financial and material support to the Fijian communities in which we work. Ms Jean White has once again led that process and her expertise in this area is much appreciated by both Dome and our Fijian hosts. At the end of July, 2018, Dome announced that it had signed a Heads of Agreement with IHC Robbins, a wholly owned affiliate of Royal IHC of the Netherlands (IHC), appointing them as contractor to carry out, when requested, a Definitive Feasibility Study (DFS) for Dome at Sigatoka. The DFS contract is seen as the beginning of a long term strategic relationship between the companies that will include the appointment of IHC as Engineering, Procurement and Construction manager at Sigatoka when, assuming a positive DFS result, the project proceeds to development. I believe the new relationship with IHC will prove to be of great value to Dome, as IHC is a world leader in the manufacture and operation of dredge mining and mineral sand processing equipment. They will bring to us a great depth of expertise in recovering sand in the marine and estuarine environments in an economic and environmentally sound manner. IHC has its roots in 17th century Netherlands and that long history will bring much credibility to our undertaking at Sigatoka. It is a pleasure for me once again to thank my fellow directors at Dome, Mr Tadao Tsubata and Ms Sarah Harvey, for their expertise and support throughout the year. Mr Tsubata, in particular, has continued to form an important bridge to our Japanese shareholders and to bring new capital to the company from Japanese investors. His financial role has been critical to our ability to get on with the job in Fiji and thus begin to realise for all shareholders the value we see waiting for release at our Fijian projects. Finally, I would like to thank the staff and contractors of Dome, who have continued to serve the company with unstinting loyalty. Mr Jack McCarthy, as CEO, has provided strong leadership and firm control of our programme, aided more recently by Dr Matthew White, who has been appointed pro tem as exploration manager. They have been well supported by a small administrative staff in Sydney and by a very effective team in Fiji, who are keen to build wealth for their country, their company and themselves by the diligent application of their skills to the discovery and development of Fiji's mineral resources. G. G. LOWDER Chairman 2 Dome Gold Mines Ltd and its controlled entities 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 2018. 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 Committee Director since 1 March 2012 Dr Garry Lowder is a geologist who has spent over 45 years in the Australian and international mining industries. As an exploration geologist, Garry has worked in Australia, Indonesia and Papua New Guinea, playing key roles in the discovery of several mineral deposits, including the Northparkes copper, Cowal gold and Conrad silver deposits in NSW, the Paddington gold and Wodgina tantalum deposits in WA and the North Sulawesi porphyry copper deposits in Indonesia. Over the past 30 years Garry has held senior management positions with Australian mining companies and also spent four years in government as Director General of Mineral Resources in NSW. In 1997 he founded Malachite Resources Limited, listing it on the ASX (MAR) in 2002 and retiring as managing director late in 2011; he retired from the position of non-executive Chairman of Malachite 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. Other current Directorships: None Previous Directorships (last 3 years): None Interests in shares: 570,000 shares Interests in options: 500,000 options 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. 3 Dome Gold Mines Ltd and its controlled entities Directors’ Report 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 to specifically target 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. Other current Directorships: None Previous Directorships (last 3 years): None Interests in shares: 47,342,393 shares Interests in options: 500,000 options 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 Australia) Appointed 27 July 2017 Independent Non-Executive Director Chair of Audit Committee Ms Sarah Harvey has worked for over 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 Certificate in Governance Practice from the GIA. Other current Directorships: None Previous Directorships (last 3 years): None Interests in shares: 20,776,499 shares Interests in options: 500,000 options COMPANY SECRETARY Mr Marcelo Mora holds a Bachelor of Business degree and Graduate Diploma of Applied Corporate Governance. Mr Mora has been a Company Secretary and 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. 4 Dome Gold Mines Ltd and its controlled entities Directors’ Report 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) (see Figure 1). 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. It is Dome’s most advanced project, with a Definitive Feasibility Study planned for 2018 to support an application for a Mining Lease. Environmental Impact Assessment report produced December 2014.  Pre-feasibility Study report completed early 2015.  MRD notification that a Definitive Feasibility Study was required for issue of a Mining Lease 2017.  Resumption of sonic drilling to update/increase the initial JORC 2012 resource estimate in 2017. Initial JORC 2012 resource estimate was published in October 2014 and part of a sonic drilling  program to update this report will be completed in 2018.  Expecting to release a report updating initial JORC 2012 report by December 2018. 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. 5 Dome Gold Mines Ltd and its controlled entities Directors’ Report The Resource consists of detrital magnetite and other heavy minerals in a coastal sand deposit. The iron sand will be dredged from the Sigatoka river bed and processed by gravity and magnetic separation to produce saleable products ready for export. 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 6 Dome Gold Mines Ltd and its controlled entities Directors’ Report In December 2014 Dome received an Environmental Impact Assessment report prepared by independent environmental specialists, Corerega Environment Consultants. The report concluded that “the 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. In July 2017, a program of 67 sonic drill holes commenced on Koroua Island, a part of the heavy mineral and magnetite bearing sand deposit that is not yet part of the JORC 2012 resource estimate (see Figure 3). The drilling confirmed that the island is composed of thick (up to 26m) sand and gravel containing an average of 13% heavy minerals. Figure 4 is a geological cross section showing the distribution of the sand and gravel tested during drilling. Figure 3 – Koroua Island sonic drill holes completed 2017 7 Dome Gold Mines Ltd and its controlled entities Directors’ Report Figure 4 – Geological cross section central Koroua Island showing thickness and continuity of sand and gravel deposit Half sonic core samples were collected for the drilling and shipped to a mineral sands laboratory in Perth, Australia for initial analysis. Composite samples for the heavy minerals extracted from the sand will be sent to IHC Robbins laboratory near Brisbane, Australia where the magnetite will be separated from the heavy mineral concentrate using wet magnetic processes. In addition to Koroua Island, land west of the mouth of the Sigatoka River will also be sonic drilled and the analytical data from this drilling will be used to update the initial JORC 2012 report. 8 Dome Gold Mines Ltd and its controlled entities Directors’ Report 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 justified testing. • A 7-hole exploration diamond drill program commenced in March 2018 and was completed in early July 2018 for a total of 2276m of drilling. Inspection of drill core showed strong sulphide mineralised zones coincident with the Induced Polarisation conductive anomalies, confirming the veracity of the IP interpretations. • Review of all data and 3-D modelling of exploration results to date will now be undertaken before proceeding with the next phase of drilling. Figure 5 – 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 Prior to the exploration diamond drilling, an offset pole-dipole IP survey involving 4 arrays, 2 over each prospect (see Figure 5) was completed. 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 5). 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 6 & 7 are compilations of surface alteration and the processed IP data for the East and West Naqara prospects, known as Naqara East and Naqara West. The area had previously been covered by soil sampling and geological mapping campaigns that identified locations of intense argillic alteration and zones of silicification and anomalous geochemistry, proximal to the northern rim of a volcanic caldera. 9 Dome Gold Mines Ltd and its controlled entities Directors’ Report Figures 6 & 7 – 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 8 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. The Company announced on 19 June 2017 that on-site preparations had commenced in advance of the drill program designed to sample the IP anomalies detected. In January 2018, Dome engaged a Fiji-based drilling contractor, Geodrill, to undertake a diamond drilling program at Ono Island. The drilling commenced on 6 March 2018 and the program was completed on 3 July 2018 for a total of 2276 m. The drilling program tested several epithermal gold targets at two prospects on the Ono Island (Naqara East and Naqara West). The targeting of drill holes on Ono Island was based on the positive results from several exploration campaigns completed by Dome over previous years: 1) ionic leach soil sampling; 2) geological and alteration mapping: and 3) an Induced Polarisation (IP) geophysical survey. 10 Dome Gold Mines Ltd and its controlled entities Directors’ Report The IP survey identified several strong IP chargeability anomalies below the anomalous geology and geochemistry defined at surface. Naqara East shows the strongest IP conductivity response (see Figure 8). Five drill holes were initially proposed (Targets A to E), and another two targets (F and G) were added during the drilling program. Seven diamond holes (ONODDH001 to 7) were drilled to test the Naqara East and Naqara West prospects. One drill hole ONODDH002 was twinned due to hole problems, with the second hole named ONODDH002A. A drill hole location map is included as Figure 9. A table showing the GPS collar co-ordinates for the program is included below in Table 1. Hole Site ONODDH001 ONODDH002 ONODDH002A C E E Collar East WGS84 658082 Collar Nth WGS84 7911718 658343 7911380 658345 7911382 Collar RL (m) 175 218 218 ONODDH003 E Alt 658270 7911359 182 ONODDH004 ONODDH005 ONODDH006 ONODDH007 TOTAL G B A F 656695 7911979 48 656121 7911774 163 656127 7911777 160 657444 7911679 35 Azimuth (Mag) Azimuth (Grid) Dip Depth (m) Total Samples 57 237 237 347 237 257 77 77 70 250 250 -60 431.55 215 -65 131.6 -66 117.5 0 11 0 -90 548.8 169 250 270 90 90 -60 350.5 -60 151.1 -70 251.3 -70 293.7 2276.1 59 58 69 159 740 Table 1 - Drill hole collar details for the 2018 Ono Island Gold Project Drilling Program Figure 8 – Plan showing IP Conductivity at 250 m depth slice, for on Ono Island Gold Project. The IP chargeability response is highest over East Naqara prospect. 11 Dome Gold Mines Ltd and its controlled entities Directors’ Report Figure 9 – Plan showing the drill hole locations and traces for on the Naqara East and Naqara West prospects, Ono Island The Diamond drilling program produced PQ and HQ size drilled core that was laid into core trays for logging and sampling. The drilling was problematical at times and progress was slow. This was due to the high-degree of fracturing and clay alteration causing some holes to collapse in places. Cementing was carried out, in order to secure the holes in areas of poor ground conditions and thus reach deeper levels. The core was cut with a diamond saw and sampled (half-core), before despatching to ALS Laboratories for analysis. QA/QC samples were also included in each batch. The samples were analysed for gold, silver, copper and a range of other elements. Details of the logging and sampling procedures are included in JORC Table 1 (See Dome June Quarter Activities Report). Holes ONODDH001 and ONODDH007 were designed to test the strongest IP chargeability anomalies at depth at Naqara East (see Figure 10). These IP chargeability anomalies lie directly below IP resistivity anomalies (see Figure 11). Drill hole ONODDH001 returned wide zones of clay-magnetite alteration with zones of sulphide mineralisation up to 5% in places (dominantly pyrite) within the host andesitic volcanic rocks. Drill hole ONODDH007 also returned zones of clay alteration within andesitic host rocks, with zones of stronger sulphide mineralisation up to 7% in places (dominantly pyrite). A photo of the sulphide-bearing rock in drill core from ONODDH007 is shown in Figure 12, from 225.7 m depth. The presence of sulphide in the lower part of holes ONODDH001 and 7 explains the IP chargeability responses. This provides Dome with a high degree of confidence that the IP geophysical technique has worked well and is able to detect zones of sulphide mineralisation at depth. 12 Dome Gold Mines Ltd and its controlled entities Directors’ Report Figure 10 – IP chargeability cross-section, section showing the trace of drill holes ONODDH001 and 7 - Ono Island Project, Fiji. These holes were designed to test the high chargeability anomalies (red/purple zones) in the lower part of the hole Figure 11 – IP resistivity cross-section, section showing the trace of drill holes ONODDH001 and 7 - Ono Island Project, Fiji 13 Dome Gold Mines Ltd and its controlled entities Directors’ Report Figure 12 – Altered and mineralized volcanic host rock with up to 7% metallic sulphide in drill hole ONODDH007, HQ core from 355.5 m depth - Ono Island Project, Fiji 14 Dome Gold Mines Ltd and its controlled entities Directors’ Report 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 2.1 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 have 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 13 & 14). 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. Figure 13 – Conceptual cross section of the Namoli porphyry intrusive system. Note the drill hole as shown is as proposed and has not yet been drilled. 15 Dome Gold Mines Ltd and its controlled entities Directors’ Report Figure 14 – Wainivau porphyry system conceptual cross section. Note the drill hole as shown is as proposed and has not yet been drilled. Compilation and interpretation of the soil geochemical, rock chip sampling and geological mapping outline two prospects, namely Namoli and Wainivau. Of the two prospects, the Namoli prospect was recently re-interpreted and there is a strong correlation among anomalous gold, copper and molybdenum soil geochem anomalies and mapped mineralised porphyry intrusive. The next field program will concentrate on this target. The Special Prospecting Licence (SPL 1452) was granted for a further 2-year period on February 13, 2017 and will remain in force until February 13, 2019. 16 Dome Gold Mines Ltd and its controlled entities Directors’ Report Mineral Resources Statement Summarised below by JORC Classification are the resource estimates for the Sigatoka River and Kulukulu areas. The resource estimate was prepared by independent resource consultants and issued in a report entitled “Sigatoka Ironsand Project JORC 2012 Report Mineral Resource Estimate” dated 8 October 2014 and announced to the market in an ASX release dated 10 October 2014. Resource comparison 2018 to 2017 There has been no reduction or increase in the resource estimate during the reporting period. 17 Dome Gold Mines Ltd and its controlled entities Directors’ Report 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 are 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 17 July 2017, 6 March 2018, 15 June 2018 and 30 July 2018, and that all material assumptions and technical parameters in the market announcements continue to apply and have not materially changed. Statement of Compliance The information in this Annual Report that relates to Mineral Resources is based on information compiled by Mr Geoffrey Richards, a Competent Person who is a member of the Australian Institute of Geoscientists, Mr Richard Stockwell, a Competent Person who is a member of the Australian Institute of Geoscientists, and Mr Gavin Helgeland, a Competent Person who is a member of the Australian Institute of Geoscientists. Mr Richards is a geological consultant and Director of Lionhart Consulting Services, and Mr Stockwell is Managing Director and Mr Helgeland is Principal Geologist of Hornet Drilling and Geological Services Pty Ltd. Mr Richards, Mr Stockwell and Mr Helgeland collectively and individually have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration at Sigatoka and to the activity being undertaken to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Richards, Mr Stockwell and Mr Helgeland consent to the inclusion in the Annual Report of the matters based on their information in the form and context in which it appears. They do not hold shares in Dome and have been paid normal consulting fees for provision of this information. The information in this Annual Report that relates to Exploration Results is based on information compiled by John V McCarthy, who is the Chief Executive Officer of the Company. Mr McCarthy is a geologist who is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr McCarthy, through his family Superfund, holds shares in the Company. He consents to the inclusion in this Annual Report of the matters based on his information in the form and context in which it appears. Financial Results As at 30 June 2018, Dome held $1,004,930 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 $1,704,321 (2017: $1,596,892). The net asset position of the Group increased from $28,825,022 at 30 June 2017 to $31,184,063 at 30 June 2018. 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 2018 were as follows: Issue of share capital For the year ended 30 June 2018, Dome has raised $4,440,854 by private placements. The funds are being used for exploration and general working capital. Details of these raisings are as follows:  On 15 November 2017 the Company completed a placement of 2,477,625 fully paid ordinary shares at $0.20 per share to raise $495,525. 18 Dome Gold Mines Ltd and its controlled entities Directors’ Report  On 28 November 2017 the Company completed a placement of 1,454,165 fully paid ordinary shares at $0.20 per share to raise $290,833.  On 14 December 2017 the Company completed a placement of 5,231,512 fully paid ordinary shares at $0.20 per share to raise $1,046,302.  On 3 January 2018 the Company completed a placement of 3,000,000 fully paid ordinary shares at $0.20 per share to raise $600,000.  On 22 January 2018 the Company completed a placement of 4,377,489 fully paid ordinary shares at $0.20 per share to raise $875,498.  On 20 February 2018 the Company completed a placement of 561,990 fully paid ordinary shares at $0.20 per share to raise $112,398.  On 2 May 2018 the Company completed a placement of 5,101,490 fully paid ordinary shares at $0.20 per share to raise $1,020,298. DIVIDENDS No dividends were declared or paid during the financial year (2017: $nil). EVENTS ARISING SINCE THE END OF THE REPORTING PERIOD Subsequent to the end of the financial year: SPL 1495 Sigatoka Iron Sand Project The 3-year licence period expired on July 13, 2018, so notification was made to the Mineral Resources Department (MRD) of the Company’s intention to apply for renewal of the SPL1495 in early June 2018 and an application for renewal of SPL1495 for a further 3-year period for the licence was submitted to MRD on 6 July 2018. On Wednesday September 5, 2018 the Director of the MRD confirmed their full support for the renewal and advised that due to new legal requirements, the Company needed to obtain a letter from the Public Trustee that they had no objection to the renewal. On September 7, 2018 a meeting was held with the Public Trustee, Manager of Estates & Trusts responsible for five beneficiaries of the Work Estate freehold who confirmed her office supported the SPL1495 renewal, and will immediately seek the consent of the five beneficiaries. Since the licence remains in force during the renewal process, it is planned that sonic drilling will resume in September 2018 with completion of the updated JORC 2012 report during December 2018. In July 2018, the Company sought expressions of interest for completion of a Definitive Feasibility Study (DFS) from five major engineering firms with experience in heavy mineral sand deposit mining and processing operations. One international group, IHC Robbins, an affiliate of Royal IHC of the Netherlands (IHC), agreed to enter into a Heads of Agreement with Dome and undertake the DFS as the first part of a developing strategic relationship between the companies. SPL 1451 Ono Island Project Assays for all holes ONODDH001 to ONODDH007 were carried out by ALS Laboratories. Drill hole ONODDH001 (Naqara East), returned anomalous copper assays (to 0.3% Cu) and anomalous molybdenum assays (to 0.2% Mo). The best Mo intercept is 5.05 m @ 0.0643% (643 ppm Mo), from 323 to 328.05 m. This intercept comprises 5 contiguous one metre samples ranging from 110 ppm to 2040 ppm Mo. The gold-silver assay results are slightly anomalous within areas of strong alteration and sulphide mineralisation, but are well below economic levels, with maximum assay values of 0.036 g/t Au and 3.6 g/t Ag. The elevated Cu and Mo and weakly anomalous Au and Ag indicates a metal-bearing epithermal system is present at Naqara East, and that further exploration drilling could define gold mineralisation nearby. In summary, a large sulphide-bearing system weakly anomalous in several metals has been defined at Naqara East prospect on Ono Island, SPL 1451. This system has many similarities to other Pacific Rim gold-copper deposits. The strong epithermal alteration, sulphide mineralisation, elevated Cu-Mo 19 Dome Gold Mines Ltd and its controlled entities Directors’ Report and weakly anomalous Au-Ag in drill core samples is encouraging. Additional systematic drilling is recommended to discover anomalous gold zones within these large sulphide bodies. 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 Tadao Tsubata Sarah E Harvey (appointed 27 July 2017) BOARD MEETINGS AUDIT COMMITTEE MEETINGS Entitled to attend 5 5 4 Attended 5 5 4 Entitled to attend 2 - 2 Attended 2 - 2 UNISSUED SHARES UNDER OPTION Unissued ordinary shares of Dome under option as at 30 June 2018 were as follows: Number of options 1,945,107 2,240,523 4,799,713 3,300,000 4,465,566 162,398 5,672,094 750,000* 750,000* 500,000* 500,000* Exercise price $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.40 $0.50 $0.40 $0.50 Expiry date 15 November 2019 28 November 2019 14 December 2019 3 January 2020 22 January 2020 20 February 2020 2 May 2020 27 July 2020 27 July 2020 31 December 2020 31 December 2020 *Options granted by the Company as part of the remuneration package - details of these options are set out in note 24 to the financial report. The names of persons who currently hold options are entered in the register of options kept by the Company pursuant to the Corporations Act 2011. This register may be inspected free of charge. All options 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. 20 Dome Gold Mines Ltd and its controlled entities Directors’ Report 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. b. c. d. principles used to determine the nature and amount of remuneration; details of remuneration; share-based remuneration; and other information. Principles used to determine the nature and amount of remuneration a. 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. Executive remuneration includes a base salary and superannuation that is set with reference to the market. Fees to non-executive directors reflect the demands which are made on, and the responsibilities of, the directors. Non-executive remuneration comprises fixed fees and compensation that is options over ordinary shares approved by shareholders at the AGM on 16 November 2017. Directors’ fees and payments are reviewed annually by the Board. The Board has also drawn on external sources of information to ensure non-executive directors’ fees and payments are appropriate and in line with the market. 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. There were no remuneration consultants used by the Company during the year ended 30 June 2018, 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 2018 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) Net loss ($) Share price ($) 2018 (0.66) - (1,704,321) 0.14 2017 (0.67) - (1,596,892) 0.24 2016 (0.66) - (1,496,956) 0.42 2015 (1.32) - (2,654,043) 0.37 2014 (1.39) - (1,609,834) 0.27 The Board considers that these indices do not have any impact on the Group’s performance. 21 Dome Gold Mines Ltd and its controlled entities Directors’ Report Details of remuneration b. Details of the nature and amount of each major element of the remuneration of each Director of the Company and other key management personnel of the Group are shown in the table below: Director and other Key Management Personnel Remuneration Short term employee benefits Post-employment benefits Share-based payments Cash salary and fees $ Year Other fees $ Non-cash benefits $ Superannuation $ Fair value of options $ 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Non-executive Directors Garry Lowder (Chairman) Tadao Tsubata (Director) Sarah Harvey1 (Director) Allen Jay2 (Director) Andrew Skinner3 (Director) Other Key Management Personnel John (Jack) McCarthy (CEO) 2018 Total 2017 Total 2018 2017 2018 2017 40,004 17,057 29,000 19,800 27,000 2,000 - 15,300 - 72,600 200,000 180,000 296,004 306,757 - - - - - - - - - 24,000 - - - 24,000 - - - - - - - - - - - - - - 24,996 32,443 - - - - - - - - 25,000 35,000 49,996 67,443 20,281 - 20,281 - 20,281 - - - - - - - 60,843 - Proportion of remuneration performance related % Value of options as a proportion of remuneration % - - - - - - - - - - - - - - 24 - 41 - 43 - - - - - - - 15 - Total $ 85,281 49,500 49,281 19,800 47,281 2,000 - 15,300 - 96,600 225,000 215,000 406,843 398,200 No bonuses or 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 2018. In 2017 “other fees” represented consulting fees for consulting services provided. 1 Sarah Harvey - resigned as an alternate director on 21 July 2016 and appointed as a non-executive director on 27 July 2017 2 Allen Jay – deceased 12 March 2017 3 Andrew Skinner – resigned 30 June 2017 22 Dome Gold Mines Ltd and its controlled entities Directors’ Report c. 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. Share-based remuneration Options were granted to Directors as part of their remuneration during the year ended 30 June 2018. Options were granted for no consideration. Options granted carry no dividends or voting rights when exercised. Details of options granted are set out in the table below. Director Garry Lowder Tadao Tsubata Sarah Harvey Number granted 250,000 250,000 250,000 250,000 250,000 250,000 Grant date 24 November 2017 24 November 2017 24 November 2017 24 November 2017 24 November 2017 24 November 2017 Value per option at grant date $ 0.046 0.035 0.046 0.035 0.046 0.035 Value of options at grant date $ 11,498 8,783 11,498 8,783 11,498 8,783 Number vested 250,000 250,000 250,000 250,000 250,000 250,000 Exercise price $ 0.40 0.50 0.40 0.50 0.40 0.50 Vesting and first exercise date 24 November 2017 24 November 2017 24 November 2017 24 November 2017 24 November 2017 24 November 2017 Last exercise date 27 July 2020 27 July 2020 27 July 2020 27 July 2020 27 July 2020 27 July 2020 The options were provided at no cost to the recipients. All options expire on their expiry date. There were no options over ordinary shares of the Company exercised, forfeited or lapsed unexercised which are related to Directors’ or key management personnel’s remuneration during the year ended 30 June 2018. No terms of equity-settled share based payment transactions have been altered or modified by the issuing entity during the 2018 financial year. 23 Dome Gold Mines Ltd and its controlled entities Directors’ Report d. Other information Options held by key management personnel The number of options to acquire shares in the Company during the 2018 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 2018 Director Balance at start of year Granted as remuneration Received on exercise Other changes Garry Lowder Tadao Tsubata Sarah Harvey John McCarthy - - - - 500,000 500,000 500,000 - - - - - - - - - Held at the end of reporting period 500,000 500,000 500,000 - Shares held by key management personnel The number of ordinary shares in the Company during the 2018 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 2018 Director Balance at start of year Granted as remuneration Received on exercise Other changes Garry Lowder Tadao Tsubata* Sarah Harvey** John McCarthy 570,000 7,342,393 - 260,000 - - - - - - - - - 40,000,000 20,776,449 - Held at the end of reporting period 570,000 47,342,393 20,776,449 260,000 *40,000,000 shares were acquired through off-market transfer during the 2018 reporting period. **Sarah Harvey was appointed as a director on 27 July 2017. She and her related party held 20,776,449 shares as at the date of her appointment. 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. End of audited remuneration report. 24 Dome Gold Mines Ltd and its controlled entities Directors’ Report 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 no other services in addition to their statutory audit duties. The Board may consider to employing the auditor on assignments in addition to their statutory audit duties where the auditor’s expertise and experience with the Group are important provided the auditor is satisfied that the provision of those non-audit services 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. 25 Dome Gold Mines Ltd and its controlled entities Directors’ Report 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 27 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, 13 September 2018 26 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 2018, I declare that, to the best of my knowledge and belief, there have been: a b no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and no contraventions of any applicable code of professional conduct in relation to the audit. Grant Thornton Audit Pty Ltd Chartered Accountants M D Dewhurst Partner – Audit & Assurance Sydney, 13 September 2018 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 www.grantthornton.com.au ‘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. 27 Dome Gold Mines Ltd and its controlled entities 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 2018 is dated as at 30 June 2018 and was approved by the Board on 13 September 2018. 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. 28 Dome Gold Mines Ltd and its controlled entities Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2018 Other income Employee benefits expenses (including directors fees) Other expenses Operating loss Depreciation Finance costs Share based payments Gain/(loss) on foreign exchange Loss before income tax expense Income tax expense Loss for the year Notes 2018 $ 2017 $ 4 5 6 24 9,376 16,004 (538,979) (1,038,734) (1,568,337) (7,008) (25,228) (103,439) (309) (1,704,321) (523,260) (1,026,849) (1,534,105) (9,742) (52,952) - (93) (1,596,892) 7 - (1,704,321) - (1,596,892) Other comprehensive income for the year Items that may be reclassified subsequently to profit or loss: Exchange difference on translating foreign controlled entities 31,187 (62,691) Total comprehensive loss for the year (1,673,134) (1,659,583) Earnings per share Basic and diluted loss per share (cents per share) 8 (0.66) (0.67) The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 29 Dome Gold Mines Ltd and its controlled entities Consolidated Statement of Financial Position as at 30 June 2018 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 2018 $ 2017 $ 9 10 11 12 14 11 15 1,004,930 1,182,258 51,384 76,690 40,609 76,191 1,133,004 1,299,058 233,078 282,739 30,264,494 28,395,904 213,697 211,718 30,711,269 28,890,361 31,844,273 30,189,419 187,649 187,649 146,438 146,438 Borrowings 16 472,561 1,217,959 TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Foreign currency translation reserve Share option reserve Accumulated losses TOTAL EQUITY 472,561 1,217,959 660,210 1,364,397 31,184,063 28,825,022 17 42,049,157 38,120,421 24 205,591 103,439 174,404 - (11,174,124) (9,469,803) 31,184,063 28,825,022 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. 30 Dome Gold Mines Ltd and its controlled entities Consolidated Statement of Changes in Equity for the year ended 30 June 2018 Foreign currency translation reserves $ Share option reserve $ Issued capital $ Balance at 1 July 2016 34,752,434 237,095 Transaction with owners Ordinary shares issued 3,771,204 Transaction costs on issue of shares (403,217) Total transactions with owners 3,367,987 - - - Other comprehensive income Loss for the year Total comprehensive loss for the year - - - (62,691) - (62,691) Balance at 30 June 2017 38,120,421 174,404 Balance at 1 July 2017 38,120,421 174,404 Transaction with owners Ordinary shares issued 4,440,854 Transaction costs on issue of shares (512,118) Share based payments - Total transactions with owners 3,928,736 - - - - Other comprehensive income Loss for the year Total comprehensive loss for the year - - - 31,187 - 31,187 - - - - - - - - - - - 103,439 103,439 - - - Accumulated losses $ Total equity $ (7,872,911) 27,116,618 - - - - 3,771,204 (403,217) 3,367,987 (62,691) (1,596,892) (1,596,892) (1,596,892) (1,659,583) (9,469,803) 28,825,022 (9,469,803) 28,825,022 - - - - - 4,440,854 (512,118) 103,439 4,032,175 31,187 (1,704,321) (1,704,321) (1,704,321) (1,673,134) Balance at 30 June 2018 42,049,157 205,591 103,439 (11,174,124) 31,184,063 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 31 Dome Gold Mines Ltd and its controlled entities Consolidated Statement of Cash Flows for the year ended 30 June 2018 CASH FLOWS FROM OPERATING ACTIVITIES Interest received Cash received from other income Cash paid to suppliers and employees Interest paid Other tax paid Notes 2018 $ 9,328 - 2017 $ 15,931 37,111 (1,567,439) (1,588,907) (6,820) (8,159) - (17,516) Net cash used in operating activities 18 (1,573,090) (1,553,381) CASH FLOWS FROM INVESTING ACTIVITIES Cash paid on deposit/advance payment 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 Cash paid on share issue costs Repayment of borrowings Net cash provided by financing activities (665) (115,966) - - (54,608) (1,658,344) (1,713,617) 4,440,854 (569,442) (763,076) 3,108,336 94,009 200 (9,293) (697,969) (729,019) 3,771,204 (345,893) (278,924) 3,146,387 Net (decrease)/increase in cash and cash equivalents (178,371) 863,987 Cash and cash equivalents at the beginning of the financial year Exchange differences on cash and cash equivalents 1,182,258 1,043 319,028 (757) Cash and cash equivalents at the end of the financial year 9 1,004,930 1,182,258 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. . 32 Dome Gold Mines Ltd and its controlled entities 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 2018 were approved and authorised for issue by the board of directors on 13 September 2018 (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;  Dome Mines Ltd (a company limited by shares incorporated in Fiji); and  Magma Mines Ltd (a company limited by shares incorporated in Fiji). The principal activities of the Group during the financial year have been the continuing exploration and evaluation of the following projects in Fiji:    SPL1451 Ono Island, SPL1452 Nadrau; and SPL1495 Sigatoka Ironsands. 2 CHANGES IN ACCOUNTING POLICIES 2.1 New and revised standards that are effective and adopted by the Group 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 New and revised standards that are not yet adopted by the Group AASB 9 Financial Instruments (effective from 1 January 2018) AASB 9 replaces AASB 139 Financial instruments: Recognition and Measurement and addresses the classification and measurement of financial assets and financial liabilities, including a new expected credit loss model for calculation of impairment of financial assets, and new general hedge accounting requirements. It also carries forward guidance on recognition and derecognition of financial instruments from AASB 139. Impairment The Group does not expect the new standard to have a significant impact on the recognition of impairment loss given the Group is at exploration stage and does not generate any revenue. Hedge accounting The Group does not apply hedge accounting hence no impact is expected. 33 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 2 CHANGES IN ACCOUNTING POLICIES (CONTINUED) 2.2 New and revised Standards that are not yet adopted by the Group (continued) Classification and measurement of financial assets and liabilities The Group’s financial assets comprise mainly of cash and cash equivalents, bond receivables and other receivables; financial liabilities comprise mainly of trade and other payables including loan from the third party. As a result, the new classification requirements will have no material impact. The Company intends to adopt the standard using the modified retrospective approach which means that the cumulative impact of the adoption will be recognised in retained earnings as of 1 July 2018 and that comparatives will not be restated. Establishes a new revenue recognition model 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:   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 at exploration stage and derives nil revenue for the current period, as such, no revenue will be recognised. The new standard is not expected to have a material impact on the transactions and balances recognised in the financial statements. The Company intends to adopt the standard using the modified retrospective approach which means that the cumulative impact of the adoption will be recognised in retained earnings as of 1 July 2018 and that comparatives will not be restated. 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 has operating lease commitments of 3 motor vehicles in Fiji and office lease in Australia (refer to note 13). Given the relatively low value of motor vehicle minimum lease payments and the fact that the current office lease terminates in April 2019, the potential impact on the financial statements is not expected to be significant. The Company intends to adopt the new standard using the modified retrospective approach which means that the cumulative impact of the adoption will be recognised in retained earnings as of 1 July 2019 and that comparatives will not be restated. 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. 34 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 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 2018. The parent controls a subsidiary if it is exposed, or has rights, to variable returns from its investment with the subsidiary and has the ability to affect those returns through its power over the subsidiary. All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group. Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the period are recognised from the effective date of acquisition, or up to the effective date of disposal, as applicable. 3.3 Business combination The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by the Group, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred. The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognised in the acquiree’s financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values. Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of (a) fair value of consideration transferred, (b) the recognised amount of any non-controlling interest in the acquiree and (c) acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount (i.e. gain on a bargain purchase) is recognised in profit or loss immediately. 3.4 Basis of measurement The consolidated financial statements have been prepared on the historical cost basis. 35 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.5 Foreign currency transactions and balances Functional and presentation currency The consolidated financial statements are presented in Australian dollars (AUD), which is also the functional currency of the parent company. Foreign currency transactions and balances Foreign currency transactions are translated into the functional currency of the respective Group entity, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the re- measurement of monetary items at period end exchange rates are recognised in profit or loss. Non-monetary items are not retranslated at period-end and are measured at historical cost (translated using the exchange rates at the date of the transactions), except for non-monetary items measured at fair value which are translated using the change rates at the date when fair value was determined. Foreign operations In the Group's financial statements, all assets, liabilities and transactions of Group entities with a functional currency other than the AUD are translated into AUD upon consolidation. The functional currency of the entities in the Group has remained unchanged during the reporting period. On consolidation, assets and liabilities have been translated into AUD at the closing rate at the reporting date. Goodwill and fair value adjustments arising on the acquisition of a foreign entity have been treated as assets and liabilities of the foreign entity and translated into AUD at the closing rate. Income and expenses have been translated into AUD at the average rate over the reporting period. Exchange differences are charged/credited to other comprehensive income and recognised in the currency translation reserve in equity. On disposal of a foreign operation the cumulative translation differences recognised in equity are reclassified to profit or loss and recognised as part of the gain or loss on disposal. 3.6 Segment Reporting Determination and presentation of operating segments The Group determines and presents operating segments based on the information that is provided internally to the management. An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating segments’ operating results are regularly reviewed by the Group’s management to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. Segment results that are reported to the management include items directly attributable to a segment 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. 36 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.7 Exploration and evaluation expenditure Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as exploration and evaluation assets on an area of interest basis. Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either:  the expenditures are expected to be recouped through successful development and exploitation of the area of interest; or  activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active and significant operations in, or in relation to, the area of interest are continuing. Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and commercial viability and facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For the purposes of impairment testing, exploration and evaluation assets are allocated to cash generating units to which the exploration activity relates. The cash generating unit shall not be larger than the area of interest. Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then reclassified from exploration and evaluation expenditure to mining property and development assets within property, plant and equipment. 3.8 Property, plant and equipment Plant and equipment and computer equipment Plant and equipment (comprising fittings and furniture) and computer equipment are initially recognised at acquisition cost or manufacturing cost, including any costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by the Group’s management. Plant and equipment and computer equipment are measured on the cost basis less subsequent depreciation and impairment losses. Depreciation The depreciable amount of all fixed assets is recognised on a straight-line basis to write down the cost over the assets' estimated useful lives to the Group commencing from the time the asset is ready for use. 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 2.5-4.2 years Prime cost Exploration furniture and fittings 3-8.3 years Exploration plant and equipment 2.5-8.3 years Office equipment 2-10 years 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. 37 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 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. 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. 38 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 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. 39 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 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 ($30,264,494 at 30 June 2018) (2017: $28,395,904) 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) (iii) Share-based payments (Note 3.20) 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 $1,704,321 (2017: $1,596,892), used $3,231,434 (2017: $2,251,350) of net cash in operations including payments for exploration during the year ended 30 June 2018, and has a cash balance of $1,004,930 at 30 June 2018 (2017: $1,182,258). 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. 40 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.17 Impairment testing of non-current assets For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely independent cash inflows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level. All other individual assets or cash-generating units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s or cash-generating unit's carrying amount exceeds its recoverable amount, which is the higher of fair value less costs to sell and value-in- use. To determine the value-in-use, management estimates expected future cash flows from each cash- generating unit and determines a suitable interest rate in order to calculate the present value of those cash flows. The data used for impairment testing procedures are directly linked to the Group's latest approved budget, adjusted as necessary to exclude the effects of future reorganisations and asset enhancements. Discount factors are determined individually for each cash-generating unit and reflect management’s assessment of respective risk profiles, such as market and asset-specific risks factors. With the exception of goodwill, all assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist. An impairment charge is reversed if the cash-generating unit’s recoverable amount exceeds its carrying amount. 3.18 Equity and reserves Share capital represents the fair value of shares that have been issued. Any transaction costs associated with the issuing of shares are deducted from share capital, net of any related income tax benefits. Other components of equity include the following:   Foreign currency translation reserve – comprises foreign currency translation differences arising on the translation of financial statements of the Group's foreign entities into AUD; and Share option reserve – comprises fair value of options granted to the Company’s Directors and contractor; 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. 41 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.19 Employee benefits (continued) 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. 3.20 Share-based payments The Group operates equity-settled share-based remuneration plans for its Directors and contractor. None of the Group’s plans feature any options for a cash settlement. All compensation or goods and services received in exchange for the grant of any share-based payment are measured at their fair values. Where the Company’s Directors and contractor are rewarded using share-based payments, the fair values are determined indirectly by reference to the fair value of the equity instruments granted. This fair value is appraised at the grant date and excludes the impact of non- market vesting conditions (for example profitability and sales growth targets and performance conditions). All share-based remuneration is ultimately recognised as an expense in profit or loss with a corresponding credit to share option reserve. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Upon exercise of share options, the proceeds received net of any directly attributable transaction costs are allocated to share capital. 4 OTHER INCOME Interest income Total other income 2018 $ 9,376 9,376 2017 $ 16,004 16,004 42 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 5 OTHER EXPENSES Consultant expenses Loss on disposal of property, plant & equipment Office expenses Other expenses Total other expenses 6 FINANCE COSTS Interest expenses for borrowings at amortised cost - Related party - Third party 7 INCOME TAX (a) Income tax expense/(benefit) Current tax Deferred tax (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% (2017: 27.5%) Increase/(decrease) in income tax expense due to: Assessable income/ non-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 2018 $ 613,297 1,339 277,340 146,758 1,038,734 2,604 22,624 25,228 - - - 2017 $ 625,309 3,572 279,913 118,055 1,026,849 4,726 48,226 52,952 - - - (1,704,321) (1,596,892) (468,688) (439,145) 15,701 453,581 (1,879) 1,285 - 10,724 441,320 (20,235) 7,336 - 2,656,883 774,945 (1,827,397) 1,604,431 2,237,637 634,043 (1,407,515) 1,464,165 43 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 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 2018 $ 2017 $ (1,704,321) (1,596,892) No of Shares Weighted average number of shares at the end of the year used in basic and diluted loss per share 256,514,342 236,975,726 Basic and diluted loss per share (cents) (0.66) (0.67) 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 1,004,930 1,004,930 1,182,258 1,182,258 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 2,526 48,858 51,384 76,690 76,690 114,543 98,324 830 213,697 797 39,812 40,609 76,191 76,191 114,543 96,356 819 211,718 44 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 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 2018 $ 6,832 (3,034) 3,798 13,904 (7,776) 6,128 480,282 (286,947) 193,335 45,141 (15,324) 29,817 233,078 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 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: Exploration computer equipment $ Exploration furniture and fittings $ Exploration plant and equipment $ Office equipment $ 6,131 4,564 (3,206) (54) 7,435 (4,841) (644) 2,443 50 (2,992) 12,580 487 - (235) 12,832 (4,966) (1,536) - 93 (6,409) 502,543 1,885 - (9,157) 495,271 (156,061) (77,581) - 2,688 (230,954) 50,425 2,357 (28,038) - 24,744 (31,711) (9,743) 24,266 - (17,188) Total $ 571,679 9,293 (31,244) (9,446) 540,282 (197,579) (89,504) 26,709 2,831 (257,543) 4,443 6,423 264,317 7,556 282,739 Gross carrying amount Balance at 1 July 2016 Additions Disposals Net exchange difference Balance at 30 June 2017 Depreciation and impairment Balance at 1 July 2016 Depreciation Disposals Net exchange difference Balance at 30 June 2017 Carrying amount as at 30 June 2017 45 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 12 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Movements in carrying amounts (continued) Exploration computer equipment $ Exploration furniture and fittings $ Exploration plant and equipment $ Office equipment $ 7,435 2,995 (972) (2,679) 53 6,832 (2,992) (997) 972 13 (30) (3,034) 12,832 1,382 (482) - 172 13,904 (6,409) (1,763) 482 - (86) (7,776) 495,271 19,624 (43,809) 2,679 6,517 480,282 (230,954) (80,588) 27,540 (13) (2,932) (286,947) 24,744 30,607 (10,210) - - 45,141 (17,188) (7,008) 8,872 - - (15,324) Total $ 540,282 54,608 (55,473) - 6,742 546,159 (257,543) (90,356) 37,866 - (3,048) (313,081) 3,798 6,128 193,335 29,817 233,078 Gross carrying amount Balance at 1 July 2017 Additions Disposals Reallocation Net exchange difference Balance at 30 June 2018 Depreciation and impairment Balance at 1 July 2017 Depreciation Disposals Reallocation Net exchange difference Balance at 30 June 2018 Carrying amount as at 30 June 2018 13 LEASES Operating leases as lessee The Group has operating lease commitments of 3 motor vehicles in Fiji and office lease in Australia. The motor vehicles rental contract has a non-cancellable term of three years. The office lease contract has a non-cancellable term of two years and one month. The future minimum lease payments are as follows: 30 June 2018 30 June 2017 Within 1 year $ Minimum Lease Payments Due After 3 years $ 1-3years $ 183,829 210,791 21,613 202,905 - 1,939 Total $ 205,442 415,635 Lease expenses during the year amounted to $210,598 (2017: $219,260) representing the minimum lease payments. 46 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 14 CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE Balance at 1 July 2016 Expenditure capitalised during the year Balance at 30 June 2017 Balance at 1 July 2017 Expenditure capitalised during the year Balance at 30 June 2018 $ 27,689,854 706,050 28,395,904 28,395,904 1,868,590 30,264,494 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 2018. 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 2018 $ 114,149 30,220 18,037 25,243 187,649 2017 $ 100,692 12,689 12,683 20,374 146,438 472,561 - 472,561 1,119,938 98,021 1,217,959 The outstanding loan payable to a third party as at 30 June 2018 is $472,561 (2017: $1,119,938). The agreed interest rate on the unsecured loan is 5%. The facility is not secured. The facility with a third party available as at 30 June 2018 is $527,439 (2017: $Nil). The facility was extended during the reporting period from 31 December 2018 to 31 December 2020. There is no outstanding loan payable to a related party as at 30 June 2018 (2017: $98,021), refer to Note 20. The total facility of the Company with a related party is $3,500,000 as at 30 June 2018 (2017: $3,500,000). The agreed interest rate on the unsecured loan is 5%. The facility is not secured. The facility was extended during the reporting period from 31 December 2018 to 31 December 2020. 47 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 17 ISSUED CAPITAL 2018 2017 Ordinary shares fully paid 269,031,700 42,049,157 246,827,429 38,120,421 Shares $ Shares $ Movements in ordinary share capital Ordinary shares 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 No. of shares $ 228,274,086 34,752,434 7,500,000 1,188,058 502,840 1,567,500 3,973,976 3,820,969 - 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 Balance at 1 July 2017 Fully paid ordinary shares issued 15 November 2017 at $0.20 Fully paid ordinary shares issued 28 November 2017 at $0.20 246,827,429 38,120,421 2,477,625 1,454,165 495,525 290,833 Fully paid ordinary shares issued 14 December 2017 at $0.20 5,231,512 1,046,302 Fully paid ordinary shares issued 3 January 2018 at $0.20 Fully paid ordinary shares issued 22 January 2018 at $0.20 Fully paid ordinary shares issued 20 February 2018 at $0.20 3,000,000 4,377,489 561,990 600,000 875,498 112,398 Fully paid ordinary shares issued 2 May 2018 at $0.20 5,101,490 1,020,298 Less costs of issue Balance at 30 June 2018 - (512,118) 269,031,700 42,049,157 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. 48 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 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 Loss from ordinary activities after income tax Non-cash flows in loss from ordinary activities Depreciation and amortisation Loss on sale of property, plant & equipment Changes in other assets and liabilities (Increase)/decrease in trade receivables and other assets Increase in trade and other payables Share based payments 2018 $ 2017 $ 1,004,930 1,182,258 (1,704,321) (1,596,892) 7,008 1,339 (5,579) (15,121) 40,145 103,439 9,742 3,572 (29,898) 35,345 24,750 - Net cash used in operating activities (1,573,090) (1,553,381) 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 Total remuneration of auditor 60,000 60,000 50,000 50,000 20 RELATED PARTY TRANSACTIONS (a) 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 withholding tax Interest charged End of period 98,021 - (99,870) (755) 2,604 - 100,219 - (6,924) - 4,726 98,021 The agreed interest on the loans is 5%. It is not secured and repayable in full by 31 December 2020. 49 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 20 RELATED PARTY TRANSACTIONS (CONTINUED) (b) Transactions with key management personnel Key management of the Group are Dome’s CEO and members of Board of directors. Key management personnel remuneration is shown in the table below: Short term employee benefits Cash salaries and fees Other fees Total short term employee benefits Post-employment benefits Superannuation Total post-employment benefits Share-based payments 2018 $ 296,004 - 296,004 49,996 49,996 60,843 2017 $ 306,757 24,000 330,757 67,443 67,443 - Total remuneration 406,843 398,200 There are no other related party transactions during the year ended 30 June 2018. 21 COMMITMENTS AND CONTINGENCIES Minimum tenement expenditure requirements Within one year Between one to five years Total 2018 $ 378,145 224,422 602,567 2017 $ - 1,698,408 1,698,408 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 in the process of being renewed at the date of this report. Dome continues to retain ownership of SPL 1495 until a decision of renewal is made, accordingly no commitments have been included above as the terms of the tenement license has not been formally approved. Management consider the risk of this not being renewed to be remote. Guarantees The Group has three bank guarantees totalling $155,077 as at 30 June 2018 (2017: $154,540). There are no other contingent assets or liabilities as at the date of this financial report. 50 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 22 SEGMENT REPORTING Segment information is presented in respect of the Group’s management and internal reporting structure. Transactions with business segments are 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. Business segments For the year ended 30 June 2018 the Group principally operated in Fiji in the mineral exploration sector. During the year ended 30 June 2018 management has re-assessed how financial information is presented to the chief operating decision makers. This re-assessment is reflective of the progress being made in exploration activity and the need to distinguish between the Group’s ironsand and gold projects. The Group now has two reportable segments, as described below. Comparative financial information has been restated to reflect this change. Operating Segment Ironsand Project $ Gold Projects $ Unallocated $ Consolidated total $ 30 June 2017 Segment revenue Finance income Total revenue Depreciation 475 475 - 250 250 - 15,279 15,279 (9,742) 16,004 16,004 (9,742) Segment profit/(loss) (11,673) (8,275) (1,576,944) (1,596,892) Segment assets 27,231,839 1,606,794 1,350,786 30,189,419 Segment liabilities 2,085,439 1,461,666 (2,182,708) 1,364,397 30 June 2018 Segment revenue Finance income Total revenue Depreciation Share-based payments 481 481 - - 252 252 - - 8,643 8,643 9,376 9,376 (7,008) (7,008) (103,439) (103,439) Segment profit/(loss) (9,291) (8,514) (1,686,516) (1,704,321) Segment assets 27,869,488 2,822,607 1,152,178 31,844,273 Segment liabilities 2,451,407 2,388,863 (4,180,060) 660,210 51 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 22 SEGMENT REPORTING (CONTINUED) Reconciliation of reportable segment profit & loss, assets and liabilities Loss before tax Loss before tax for reportable segment Other loss before tax unallocated Consolidated loss before tax Assets Total assets for reportable segments Intercompany eliminations Other assets unallocated Consolidated assets Liabilities Total liabilities for reportable segments Intercompany eliminations Other liabilities unallocated Consolidated liabilities 23 PARENT ENTITY DISCLOSURES 2018 $ 2017 $ (17,805) (1,686,516) (1,704,321) 30,692,095 (5,109,973) 6,262,151 31,844,273 4,840,270 (5,109,973) 929,913 660,210 (19,948) (1,576,944) (1,596,892) 28,838,633 (3,877,282) 5,228,068 30,189,419 3,547,105 (3,877,282) 1,694,574 1,364,397 As at and throughout the financial year ended 30 June 2018 the parent entity of the Group was Dome Gold Mines Ltd. Statement of profit or loss and other comprehensive income Net loss for the year Other comprehensive income Total comprehensive loss Statement of financial position Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Net assets Equity Issued capital Accumulated losses Foreign currency translation reserve Share option reserve Total equity 2018 $ (2,004,947) 36,202 (1,968,745) 5,783,482 25,832,627 31,616,109 129,805 472,561 602,366 31,013,743 42,049,157 (11,108,615) (30,238) 103,439 31,013,743 2017 $ (1,571,625) (68,786) (1,640,411) 5,090,469 25,220,542 30,311,011 142,739 1,217,959 1,360,698 28,950,313 38,120,421 (9,103,668) (66,440) - 28,950,313 The Directors are of the opinion that no contingencies existed at, or subsequent to year end. 52 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 24 SHARE-BASED PAYMENT During the year ended 30 June 2018, the Group had two share-based payment arrangements. Both will be settled in equity. Options were granted to non-executive Directors and a contractor respectively under each scheme as part of their remuneration packages. Options were granted for no consideration and carry no dividends or voting rights when exercised. Options under both schemes vest on issue date. Each option allows the holder to purchase one ordinary share at the price determined at grant date. Share options and weighted average exercise prices are as follows for the reporting periods presented: Options issued to directors Options issued to contractors Weighted average exercise price ($) - - - - - - 0.45 - - - 0.45 - 0.45 Number of shares - - - - - - 1,500,000 - - - 1,500,000 - 1,500,000 Weighted average exercise price ($) - - - - - - 0.45 - - - 0.45 - 0.45 Number of shares - - - - - - 1,000,000 - - - 1,000,000 - 1,000,000 Outstanding at 1 July 2016 Granted Forfeited Exercised Expired Outstanding at 30 June 2017 Granted Forfeited Exercised Expired Outstanding at 30 June 2018 Exercisable at 30 June 2017 Exercisable at 30 June 2018 The fair values of options granted were determined using a variation of the Black-Scholes option pricing model. The fair value is appraised at the grant date and excludes the impact of non-market vesting conditions. The following principal assumptions were used in the valuation: Valuation assumptions Grant date Vesting period ends Share price at date of grant Expected volatility Option life Dividend yield Risk free investment rate Weighted average fair value at grant date Weighted average exercise price at grant date Exercisable from Exercisable to Options issued to directors 24 November 2017 27 July 2020 $0.21 61.74% 977 days - 1.92% $0.04 $0.45 24 November 2017 27 July 2020 Options issued to contractors 24 November 2017 31 December 2020 $0.21 58.44% 1,134 days - 1.92% $0.04 $0.45 24 November 2017 31 December 2020 The underling expected volatility was determined by reference to historical data of the Company’s shares over a period of time. No special features inherent to the options granted were incorporated into measurement of fair value. In total, $103,439 (2017: Nil) expenses, all of which are related to equity-settled share-based payment transactions, have been included in profit or loss and credited to share option reserve. 53 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 25 POST-REPORTING DATE EVENTS Subsequent to the end of the financial year: SPL 1495 Sigatoka Iron Sand Project The 3-year licence period expired on July 13, 2018, so notification was made to the Mineral Resources Department (MRD) of the Company’s intention to apply for renewal of the SPL1495 in early June 2018 and an application for renewal of SPL1495 for a further 3-year period for the licence was submitted to MRD on 6 July 2018. On Wednesday September 5, 2018 the Director of the MRD confirmed their full support for the renewal and advised that due to new legal requirements, the Company needed to obtain a letter from the Public Trustee that they had no objection to the renewal. On September 7, 2018 a meeting was held with the Public Trustee, Manager of Estates & Trusts responsible for five beneficiaries of the Work Estate freehold who confirmed her office supported the SPL1495 renewal, and will immediately seek the consent of the five beneficiaries. Since the licence remains in force during the renewal process, it is planned that sonic drilling will resume in September 2018 with completion of the updated JORC 2012 report during December 2018. In July 2018, the Company sought expressions of interest for completion of a Definitive Feasibility Study (DFS) from five major engineering firms with experience in heavy mineral sand deposit mining and processing operations. One international group, IHC Robbins, an affiliate of Royal IHC of the Netherlands (IHC), agreed to enter into a Heads of Agreement with Dome and undertake the DFS as the first part of a developing strategic relationship between the companies. SPL 1451 Ono Island Project Assays for all holes ONODDH001 to ONODDH007 were carried out by ALS Laboratories. Drill hole ONODDH001 (Naqara East), returned anomalous copper assays (to 0.3% Cu) and anomalous molybdenum assays (to 0.2% Mo). The best Mo intercept is 5.05 m @ 0.0643% (643 ppm Mo), from 323 to 328.05 m. This intercept comprises 5 contiguous one metre samples ranging from 110 ppm to 2040 ppm Mo. The gold-silver assay results are slightly anomalous within areas of strong alteration and sulphide mineralisation, but are well below economic levels, with maximum assay values of 0.036 g/t Au and 3.6 g/t Ag. The elevated Cu and Mo and weakly anomalous Au and Ag indicates a metal-bearing epithermal system is present at Naqara East, and that further exploration drilling could define gold mineralisation nearby. In summary, a large sulphide-bearing system weakly anomalous in several metals has been defined at Naqara East prospect on Ono Island, SPL 1451. This system has many similarities to other Pacific Rim gold-copper deposits. The strong epithermal alteration, sulphide mineralisation, elevated Cu-Mo and weakly anomalous Au-Ag in drill core samples is encouraging. Additional systematic drilling is recommended to discover anomalous gold zones within these large sulphide bodies. 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. 54 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 26 SUBSIDIARIES Particulars in relation to controlled entities: Controlled entities Dome Mines Limited Magma Mines Pty Ltd Magma Mines Limited 27 FINANCIAL INSTRUMENT RISK Country of incorporation Company interest in ordinary shares 2018 % 100 100 100 2017 % 100 100 100 Fiji Australia Fiji 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 2018. 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% (2017: 5%) then this would have had the following impact: 30 June 2018 30 June 2017 Profit for the year $ - - Equity $ 227,097 168,726 55 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 27 FINANCIAL INSTRUMENT RISK (CONTINUED) 27.2 Market risk analysis (continued) If the AUD had weakened against the FJD by 5% (2017: 5%) then this would have had the following impact: 30 June 2018 30 June 2017 Profit for the year $ - - Equity $ (227,097) (168,726) 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). 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 2018, the Group is not exposed to changes in market interest rates through borrowings as all borrowings are at fixed interest rates. At 30 June 2018, 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: 2018 Weighted average interest rate % Balance $ 2017 Weighted average interest rate % Balance $ Cash and cash equivalents 0.46 1,004,930 0.58 1,182,258 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). 2018 +0.5% $ -0.5% $ 2017 +0.5% $ -0.5% $ Profit/(loss) for the year 5,025 (5,025) 5,911 (5,911) 56 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 27 FINANCIAL INSTRUMENT RISK (CONTINUED) 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: Cash and cash equivalents Trade and other receivables Bank guarantee deposit Bond deposit Carrying amount 2018 $ 2017 $ 1,004,930 51,384 114,543 98,324 1,269,181 1,182,258 40,609 114,543 96,356 1,433,766 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. 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. 57 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 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 2018 (including comparatives) were approved by the board of directors on 13 September 2018. 58 Dome Gold Mines Ltd and its controlled entities 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 2018 and of its performance for the financial year ended on that date; and ii Complying with Australian Accounting Standards (including Interpretations) and the Corporations Regulations 2001; and the Australian Accounting 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. 2 The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Chief Executive Officer and Chief Financial Officer (or equivalent) for the financial year ended 30 June 2018. 3 Note 1 confirms that the consolidated financial statements also comply with International Financial Reporting Standards. Signed in accordance with a resolution of the Directors G. G. Lowder Chairman Dated this 13 September 2018 Sydney 59 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 445 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 2018, 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 financial statements, including a summary of significant accounting policies, and the Directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: a Giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its performance for the year ended on that date; 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 auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 www.grantthornton.com.au ‘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. 60 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 $1,704,321 during the year ended 30 June 2018, and used $3,231,434 of net cash in operations including payments for exploration. 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 financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matter Exploration and Evaluation Assets – valuation Note 3 and 14 At 30 June 2018 the carrying value of Exploration and Evaluation Assets was $30,264,494. How our audit addressed the key audit matter Our procedures included, amongst others:  Obtaining the management prepared reconciliation of 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. 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 included in the Group’s annual report for the year ended 30 June 2018, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and 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 Group 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 61 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 21 to 24 of the Directors’ report for the year ended 30 June 2018. In our opinion, the Remuneration Report of Dome Gold Mines Limited, for the year ended 30 June 2018 complies with section 300A of the Corporations Act 2001. Responsibilities The Directors of the Group 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, 13 September 2018 62 Dome Gold Mines Ltd and its controlled entities 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 2018. 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 Blue Ridge Interactive Limited Onizaki Corporation Fleet Market Investments Pty Ltd Number of Shares 40,000,000 30,000,000 19,776,499 THE NUMBER OF HOLDERS IN EACH CLASS OF SECURITIES As at 31 August 2018, the number of holders in each class of securities on issue were as follows: Type of security Ordinary shares Unlisted options Number of holders Number of securities 455 28 269,031,700 25,085,401 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 Total Shareholders Total No of Shares 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over Total 10 17 167 144 117 455 1,724 44,462 1,663,800 3,792,364 263,529,350 269,031,700 63 Dome Gold Mines Ltd and its controlled entities ASX Additional Information DISTRIBUTION OF OPTIONHOLDERS The total distribution of unlisted optionholders was as follows: Expiry Date Number of holders Exercise Price 15 November 2019 27 July 2020 27 July 2020 31 December 2020 31 December 2020 28 November 2019 14 December 2019 3 January 2020 22 January 2020 20 February 2020 2 May 2020 3 3 3 1 1 4 7 5 5 2 2 $0.20 $0.40 $0.50 $0.40 $0.50 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 LESS THAN MARKETABLE PARCELS On 31 August 2018, there were 18 holders of less than a marketable parcel of 2,174 ordinary shares. TWENTY LARGEST SHAREHOLDERS As at 31 August 2018, the twenty largest quoted shareholders held 75.20% of the fully paid ordinary shares as follows: Name Blue Ridge Interactive Limited Onizaki Corporation Fleet Market Investments Pty Ltd Precious Tori Ltd Brave Top Enterprises Ltd Ordinary Shares Quantity 40,000,000 30,000,000 19,776,499 12,964,250 10,500,000 Globe Street Investments Pty Ltd 10,000,000 Globe Street Investments Pty Ltd 10,000,000 Mr Zhengjian Xu Cybersys Inc Monex Boom Securities (HK) Ltd Tiger Ten Investment Limited BNP Paribas Nominees Pty Ltd Primavera Thamadia Nominees Pty Ltd Mr Hwaeun Park Mr Masayuki Kudo Mr Katsuji Kato Mr Akio Miyashita Creative Management Consultants Co Ltd Mr Nurbol Nazarbayev 8,320,888 8,000,000 7,593,027 7,292,393 6,788,597 5,000,000 5,000,000 4,764,092 3,973,976 3,382,720 3,289,163 2,866,754 2,802,647 % 14.87 11.15 7.35 4.82 3.90 3.72 3.72 3.09 2.97 2.82 2.71 2.52 1.86 1.86 1.77 1.48 1.26 1.22 1.07 1.04 64 Dome Gold Mines Ltd and its controlled entities ASX Additional Information TWENTY LARGEST OPTIONOLDERS As at 31 August 2018, there were no optionholders that held 20% or more of the unquoted options. ON MARKET BUY BACK There is no on market buy-back. ESCROWED SECURITIES As at 31 August 2018, there were no escrowed securities. TENEMENTS SCHEDULE Tenement Location Holder Area (Ha) Expiry Date SPL 1451 Ono Island Dome Mines Ltd 3,028 12/02/2020 SPL 1452 Nadrau Dome Mines Ltd 33,213 12/02/2019 SPL 1495 Sigatoka Magma Mines Ltd 2,522 13/07/2018* Interest % 100 100 100 *Application to renew this Special Prospecting Licence for a further 3-year period was submitted to the Mineral Resources Department, Fiji on July 6, 2018. The Company believes there is no reason why the licence will not be renewed. 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. 65 Dome Gold Mines Ltd and its controlled entities 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 66 

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