ABN 49 151 996 566
Annual Report
30 June 2019
Dome Gold Mines Ltd
and its controlled entities
Table of Contents
Chairman’s Message ................................................................................................................... 1
Directors’ Report ........................................................................................................................ 3
Auditor’s Independence Declaration ........................................................................................ 30
Corporate Governance Statement ............................................................................................. 31
Consolidated Statement of Profit or Loss and Other Comprehensive Income ......................... 32
Consolidated Statement of Financial Position .......................................................................... 33
Consolidated Statement of Changes in Equity.......................................................................... 34
Consolidated Statement of Cash Flows .................................................................................... 35
Notes to the Consolidated Financial Statements ....................................................................... 36
Directors’ Declaration ............................................................................................................... 65
Independent Auditor’s Report ................................................................................................... 66
ASX Additional Information .................................................................................................... 69
Corporate Directory .................................................................................................................. 72
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 2019.
Over the past twelve months the principal focus of Dome’s activities has been the Sigatoka Ironsand
Project, where the signing of a contract with Brisbane-based IHC Robbins in December, 2018, has led to
the commencement of a definitive feasibility study for development of Sigatoka as a multi-product sand
mining operation.
The definitive feasibility study (“DFS”) is being conducted in stages, with the results of each stage guiding
the emphasis of the work that follows. To begin with, three bulk samples of sand from Sigatoka, each
amounting to about 850kg, were collected in the field and then shipped to IHC Robbins’ facilities in
Brisbane. These three samples came respectively from the Sigatoka River, the foreshore and the Koroua
Island resource areas. At IHC Robbins each sample in turn was subjected to a systematic pilot plant
metallurgical test work programme, aimed at identifying the main constituents and their variability cross the
different resource areas, while assessing the potential to produce commercial products from that material.
At the same time, various options for future development were considered, including the optimal scale of
production, the suitability of different mining methods and the possible economics of each case.
Results from this work to date have been most encouraging. The main constituents of each sample are
quartz and acid igneous lithic fragments, with subordinate basic igneous fragments and sedimentary rock
fragments. There is some variation in the proportions of these components between river, foreshore and
island sources but not so much as to require different processing methods. Deleterious components are
minimal or absent and the slime content is low in each case. Importantly, it is becoming clear that the
application of a simple sand processing flowsheet, involving washing, size grading, gravity and magnetic
separation, is able to generate commercial grade products. These include magnetite (iron ore), as well as
high quality industrial sand and gravel products that would comply with Australian standards. In particular,
each processed sand product meets Australian standards for fine aggregate in terms of particle size and
alkali-silica reactivity. Together these products seem capable of forming the basis of a sand mining
operation that would have robust economics and continue for a long period.
The DFS work so far has indicated that the best development option is likely to involve staged
development, beginning with sand mining in the foreshore area using specialised sand pumps, such as
those manufactured by IHC Robbins’ parent company, Royal IHC of The Netherlands. This approach would
minimise initial capital requirements, have a low environmental impact and lead to rapid generation of
significant cash flow. The products from such an operation would include a magnetite concentrate for
export and substantial quantities of industrial sand for which there is a ready market in Fiji. The relative
quantities of these and other possible products will be determined more precisely as the DFS continues
and will be driven by the actual make-up of the resource that is mined in the first operational stage.
Dome has identified a strong demand for industrial sand in other parts of the Pacific Basin, especially in
Asia, and we believe that our product would easily meet the quality requirements of those markets. The
expectation, therefore, is that the Sigatoka project would expand production fairly rapidly as those export
markets are captured and regular supply lines are set up. This could lead to a trebling of initial production
within three years of commencement of mining, with commensurate increase in the cash flow generated
and an increase in profit margins as economies of scale are realised.
Substantial DFS work remains to be done, including defining the process flowsheet in detail, specifying and
selecting the equipment needed for mining and processing, site planning and establishing personnel
requirements. The existing environmental study will also need to be updated and fine-tuned to the specifics
of the proposed mining operation. That work will take another six to nine months and we must be patient as
these critical, behind-the-scene studies are carried out.
1
Dome Gold Mines Ltd
and its controlled entities
Chairman’s Message
Elsewhere, Dome’s exploration activities in Fiji over the past year have been low-key, recognising the
importance of advancing our flagship project at Sigatoka as rapidly as possible. At Nadrau, a substantial
quantity of valuable data from past exploration activity by other companies has been identified, analysed
and compiled into our exiting database. Those earlier results strongly support our belief in the potential for
discovery of a major copper-gold deposit, of porphyry type, in this area. Further work at Nadrau will take
place in the coming year but the project is unlikely to see major exploration activity until Sigatoka is in
production and generating a healthy cash flow. Similarly, the attractive gold exploration targets at Ono
Island will see only minimal activity while Sigatoka feasibility and development are underway.
The Dome Board has continued to function effectively throughout the year and I thank my fellow directors,
Mr Tadao Tsubata and Ms Sarah Harvey, for their commitment and wise counsel. Mr Tsubata forms a
critical link to our Japanese shareholders and he has spent a great deal of time keeping these important
stakeholders informed of our progress. I am particularly grateful to him for this valuable role and it has been
my pleasure to join Mr Tsubata in meeting and greeting some of these shareholders during short visits I
have made to Tokyo in the period.
Finally, I would like to thank the staff and contractors of Dome, who have continued to serve the company
with loyalty and belief in our future. Mr Jack McCarthy, who retired as Chief Executive Officer at the end of
May, 2019, has provided strong leadership and firm control of our programme. I wish him well in his
retirement. Dr Matthew White has been appointed as exploration manager for Dome on a contractual basis
and has very successfully led our team in the field. Ms Jean White has once again been effective in her
role of community liaison in Fiji. These key operatives have been well supported by a small group of
administrative staff in Sydney and by a very effective team in Fiji.
Dome is on the cusp of major growth as the DFS continues and leads to the expected development of
mining at Sigatoka. I join all other shareholders in looking forward with keen anticipation to the
realisation of the economic potential we have painstakingly identified over the past several years in
Fiji.
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 2019.
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: 52,342,393 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 Fiji project location map
SPL 1495 Sigatoka Iron Sand Project
Special Prospecting Licence (SPL) 1495 was renewed for a further 3-year period on February
11, 2019
This tenement of 2,522.69ha is located on the south coast of Viti Levu and 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 (DFS) commenced by IHC
Robbins in December 2018 to support an application for a Mining Lease. An Environmental
Impact Assessment report produced December 2014 will also be updated during the DFS.
Pre-feasibility Study report completed early 2015.
An Initial JORC 2012 resource estimate was published in October 2014.
An update of the initial JORC 2012 resource estimates will be produced during 2019 following
completion of sonic drill programs on parts of the deposit not drilled previously.
A report by IHC Robbins on pilot plant scale metallurgical test programs on 3 x 850kg samples
was completed in June 2019.
5
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
The pilot plant produced titano-magnetite with between 56.9 and 57.9% Fe, 6.5 and 6.6% Ti and
0.4% V.
Washed sand also produced in the pilot plant meets Australian Standards for construction sand.
Figure 2 – Special Prospecting Licence (SPL) 1495 map showing extent of sand deposit
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 Figures 2 & Table
1). The maiden Resource Estimate of 131.6 million tonnes included Indicated Mineral Resources of
25 million tonnes @11.6% HM at Sigatoka River and Inferred Mineral Resources of 100.7 Mt @ 17%
HM at the onshore Kulukulu deposit and 5.9 million tonnes @ 11% HM at Sigatoka River.
The Resource consists of lithic fragments and quartz rich sand containing detrital titano-magnetite
and other heavy minerals. The deposit formed in a coastal environment over an extended period of
geological time.
6
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
Table 1 – Details of the Initial JORC 2012 resource estimates based on analytical analyses of sonic
drill core samples from the Sigatoka Deposit.
In addition to titano-magnetite concentrate, sand and gravel suitable for construction or land
reclamation uses are also expected to be produced during processing. A shortage of construction
sand is an emerging issue in Fiji as restrictions on upland river mining are being enforced.
During 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
deposits 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 in 2017, a part of the
deposit that is not yet included in the JORC 2012 resource
estimates.
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.
On July 30, 2018 Dome announced that a binding Heads of Agreement (“HoA”) had been entered into
between Dome and IHC Robbins, a wholly owned subsidiary of Royal IHC of the Netherlands (“IHC”).
The HoA establishes a strategic relationship between Dome and IHC that will initially involve
completion of a DFS on the Sigatoka Iron Sand project. Assuming the DFS concludes that mining is
viable, IHC will, subject to documentation at the time, assume the role of Engineering, Procurement
and Construction manager.
IHC is a major international corporation that has been in the marine vessel and dredge building
industry since the mid-17th century and has “in-depth expertise in the engineering and manufacture of
high-performance integrated vessels and equipment”, particularly for use in sensitive marine
environments. Importantly to Dome and its wholly owned subsidiary Magma Mines Ltd., which holds
title at Sigatoka, IHC is committed to social responsibility and environmental accountability in every
aspect of its operations and ensures their principles apply to suppliers, sub-contractors and society as
a whole.
In the first phase of the DFS, three bulk samples were prepared from retained half drill core stored
onsite at Sigatoka. The samples, of approximately 850 kilograms each, represented the river bed, the
southern part of Koroua Island and the foreshore sand deposits. They were processed in pilot plant
scale mineral processing equipment (see Plates 1, 2 and 3 below) to produce titano-magnetite,
washed sand and gravel.
Test work has progressed well producing results that are similar to those obtained during earlier
laboratory analysis of half-core samples.
The preliminary results indicate that a simple process, combining gravity and magnetic separation
methods, can efficiently recover magnetite and washed sand and gravel as commercial products. An
analysis of development options has identified a staged development program as the best approach
and this option will undergo detailed engineering and costing studies in the next phase of the DFS.
The metallurgical pilot test work included a series of steps (see Plates 1 – 3). These included:
1. Feed Characterisation Stage (preparation of a representative head sample)
2. Feed Preparation Process (sample screening plus sand analyses)
3. Wet Concentration Process (spiral and table tests to produce heavy mineral concentrates,
plus sand and heavy mineral concentrate analyses)
4. Concentrate Upgrade Process (low intensity magnetic separator tests, plus sand and heavy
mineral concentrate analyses)
8
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
5. Construction Sand Process (up current classifier and screening optimisation tests as well as
sand analyses)
The final report on results from the metallurgical pilot test program completed by IHC Robbins was
delivered to Dome on June 12, 2019. This report has been reviewed by Dome’s Staff and
Consultants, and further evaluation of the results is on-going.
The report concluded based on the test results that a simple sand washing process flowsheet will
produce:
1. Titano-magnetite concentrate; and
2. Construction sand and gravel products that comply with Australian standards.
The development process combines gravity and magnetic separation methods, which can efficiently
recover magnetite and washed construction sand (plus minor gravel), as commercial products for
export and sale to local Fiji markets.
Plate 1 – Spirals used to separate heavy minerals from bulk
sand samples, during metallurgical testing at IHC
Robbins metallurgical facility in Brisbane.
9
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
Plate 2 – Darker heavy minerals (including magnetite) are concentrated toward
the centre of the spirals, where they are separated for recovery.
Plate 3 – Titano-magnetite from Sigatoka bulk samples being recovered in a Low Intensity
Magnetic Separator test (LIMS).
A project development options study was also completed by IHC Robbins over the last 2 quarters.
This study has identified that the most favourable development approach at Sigatoka is a multi-stage
strategy with on-land mining as a first stage. This development strategy will undergo more detailed
evaluation, engineering studies and detailed costing analysis, during the next phase of the DFS.
10
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
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.
SPL 1451 Ono Island Project
• SPL1451 was renewed for a three-year period on February 12, 2017.
• 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.
• Further review of all data and 3-D modelling of exploration results to date will 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).
11
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
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.
The area had previously been covered by soil sampling and geological mapping campaigns that
identified
intense argillic alteration and zones of silicification and anomalous
geochemistry.
locations of
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.
12
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
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).
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 the Table below.
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
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.
Holes were designed to test the strongest IP chargeability anomalies at depth. (see Figure 8). These
IP chargeability anomalies lie directly below IP resistivity anomalies (see Figure 9). 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 Plate 4, 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.
13
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
Figure 8 –
IP chargeability cross-section, section showing the trace of drill holes
ONODDH001 and 7. These holes tested the high chargeability anomalies
(red/purple zones) in the lower part of the hole.
Figure 9 –
IP resistivity cross-section, section showing the trace of drill holes
ONODDH001 and 7.
14
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
Plate 4 – 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
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, 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 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.
Rehabilitation, Community Work and Safety
A comprehensive rehabilitation program was completed as part of the drill program. The key outcomes
from this work are summarised below.
Access track preparation was carried out by a 12 tonne Hitachi excavator mobilised from Suva. Pre-
existing historical tracks through the Pine Forests were re-established (total of 2812 m), and new
tracks to the drill pads were also constructed (total of 2967 m). Many of these access roads were left
open at the end of the program as they will help Naqara Village to remove pine logs to the saw mill in
the village.
The excavator and a number of casual workers from Naqara were used to carry out rehabilitation on
all drill pads and along drill tracks. The sumps were filled back in and all rubbish was removed after
15
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
drilling. The collar for each hole was capped with a cement block, with the hole name labelled into the
cement.
Pine trees and grasses were planted on the drill pads and access tracks areas. Two weeks were spent
completing the rehabilitation work associated with the program. Just one week after planting, the pine
trees and grasses had already started growing back.
Compensation payments for land disturbance were paid directly to the Landowners, Lease Holders
and Lands Department. The Pine assessment fees were paid to Forestry Department in Nausori.
A number of community projects were also supported by Dome during the drilling program including:
Completion of the new Naqara School Dormitory.
Demolish old school building.
Clearing house pads.
Digging rubbish dumps and toilet sumps.
Deepening Naqara creek and repairing the seawall at the shoreline.
The drilling program was completed safely without any lost-time incidents. Prior to departure the
villages on Ono were visited to let the local people know that this phase of the exploration program
had concluded and to thank them for their assistance and cooperation.
SPL 1452 Nadrau Project
• The 2-year term of SPL1452 expired on February 13, 2019 and an application for a further renewal
was submitted on February 11, 2019. SPL 1452 was renewed for a further 3-year period on
September 12, 2019. The SPL remained in force during the renewal process.
• 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.
During the July to September 2018 quarter, Dome carried out work on its Nadrau Copper-Gold Project
on Viti Levu, Fiji. The Nadrau Project includes two key prospects, Namoli and Wainivau, which are
highly prospective for large-scale porphyry copper-gold mineralisation. The Namoli and Wainivau
prospects lie within SPL 1452, located adjacent to the very large undeveloped Namosi porphyry
copper-gold resource, held by Newcrest, which contains 8 million ounces of gold and 8.6 million
tonnes of contained copper metal based on published JORC 2012 resource estimates. Namosi is a
giant undeveloped copper-gold resource that is currently in the Prefeasibility Stage. A location map
showing the regional geological setting of SPL 1452, the Namoli and Wainivau prospects, and their
proximity to Newcrest’s Namosi project, is included on Figure 10.
16
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
Figure 10 - Map showing the location of SPL1452 and the Namoli-Wainivau
prospects, in proximity to the large Namosi Cu-Au deposit
managed by Newcrest.
The following work was completed on the Nadrau Project during the financial year:
Site visits to Korolevu and Namoli villages and meetings with the village leaders.
Field trips to Namoli-Wainivau prospects to review the geology, alteration and mineralisation at
surface.
Compilation of previous exploration data over Namoli and Wainivau, completed by Amoco, CRA
and Placer Dome between 1974 and 1994.
Compilation of historical exploration results into a new GIS database to allow new interpretations
and targeting for future Dome exploration programs.
A new stream sediment Bulk Leach Extractable Gold (BLEG) sampling program at Namoli-
Wainivau was completed.
Amoco carried out significant exploration programs at Namoli-Wainivau in the mid-1970s, including
collection of stream sediment samples, rock chip samples, ridge and spur samples, channel sampling,
ground magnetics, IP and diamond drilling (5 holes). Dome has been aware of this historical work for
some years, but a decision was made recently to digitally capture all of this data into a comprehensive
GIS database, to assist with new interpretations and targeting work.
The Amoco IP survey included 25 lines at 200 m spacing over an area of approximately 3.5 square
kilometres. Several IP anomalies were defined. However, only 2 the 6 IP targets defined by Amoco
were drill tested by Amoco. Furthermore, some of the IP anomalies continue to the edge of the survey
boundary, particularly in the north and are likely to extend further north. New IP surveys would be
required to test the true extents of these IP anomalies.
The Amoco drilling program consisted of 5 diamond drill holes for a total of 1168 m. The drilling
returned anomalous copper mineralisation associated with sulphide mineralisation in most of the
holes. Drill core assays were recorded up to 1740 ppm Cu, with wide zones of low-grade copper in
some holes (e.g. hole SFA-74-1 returned 48.2m @ 475 ppm Cu). Higher-grade copper mineralisation
could occur at depth below this relatively shallow drilling program or could be associated with one of
the other untested IP anomalies nearby.
17
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
CRA carried out regional exploration work in the Namoli-Wainivau area during 1989-1992. The CRA
reports held on file at the MRD Library in Suva (SPL1325) were reviewed by Dome personnel. The
CRA work included rock chip sampling around Namoli-Wainivau, with the best sample returning 1.1
g/t Au near Korolevu village (siliceous breccia gossanous float). Another 6 rock chip samples range
from 0.1 to 0.32 ppm Au.
Placer Dome also carried out regional exploration work in the Namoli-Wainivau during 1993-94. The
Placer report was reviewed at the MRD Library in Suva (SPL1356). Placer collected a number of
stream sediment BLEG samples and -80# stream sediment samples at Namoli-Wainivau. Placer’s
highest stream sediment BLEG gold assay returned 11 ppb Au, and the highest-80# stream sediment
assay was 58 ppb Au. The highest Placer rock chip gold assay was 0.277 g/t Au, taken at the
Wainivau Prospect.
Placer geologists concluded that Namoli-Wainivau includes a very large copper-gold (Cu-Au)
geochemical anomaly, approximately 60 square km in area, and that the area is very prospective for
porphyry Cu-Au deposits similar to Namosi. Placer also noted as had Dome geologists that Amoco’s
drilling in 1975, did not adequately test the best soil and IP anomalies, and that their 5 drill holes are
largely outside the main Copper geochemical soil anomaly. Placer did not complete any further work
after 1994.
A field geological program to Namoli-Wainivau was conducted by Dome geologists between 29
October and 3 November 2018. A total of 46 Stream Sediment Samples and 8 rock chip samples
were collected over a period of 6 days. Field operations were based from Korolevu village and several
local workers were engaged by Dome from Korolevu and Namoli, to assist with the sampling program.
Assay results from samples collected during the geochemical program were received from ALS in
early December 2018. The stream sediment gold and copper plots are shown below on Figures 11
and 12 and they highlight the anomalous gold-copper in the area around Wainivau. Anomalous gold-
copper in stream sediments also extends to the NW of Wainivau towards Namoli. This trend is
broadly coincident with a mapped NW-trending zone of iron-oxide breccia observed in the field. The
breccia itself contains anomalous metals.
The rock chip samples collected by Dome around Wainivau-Namoli returned weakly anomalous
copper assays up to 157 ppm and gold assays up to 0.022 g/t Au. The iron in these samples is
significant (up to 14.5% Fe), which is consistent with the large amount of Fe-oxide observed in some
of the breccia samples.
The new stream sediment data acquired by the Company are consistent with the historical copper-
gold geochemical data from Amoco, CRA, and Placer reports. Dome now has a much higher degree
of confidence in the historical data.
The data shows very encouraging signs that a Cu-Au porphyry system similar to Namosi has potential
to be discovered in the Namoli-Wainivau area. In addition, the exploration GIS dataset provides
significant new insights into this project and new targets for Dome to follow up geologically. Dome’s
recent geochemical surveys using modern laboratories and analytical techniques verify the historical
results. These data confirm that the Namoli-Wainivau targets are prospective for copper-gold
mineralised porphyritic intrusive deposits.
18
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
Figure 11 - Map showing the stream sediment copper assay results from Namoli-
Wainivau prospect.
19
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
Figure 12 - Map showing the stream sediment gold assay results from Namoli-
Wainivau prospect.
20
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 Iron Sand 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 2019
There has been no reduction or increase in the resource estimate during the reporting period.
21
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 30 July 2018, 18
December 2018 and 18 April 2019, 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 a Consulting Geologist 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 and is paid
normal consulting fees for his services. 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 2019, Dome held $19,809 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
$1,770,486 (2018: 1,704,321). The net asset position of the Group decreased from $31,184,063 at 30
June 2018 to $30,893,870 at 30 June 2019.
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 2019 were as follows:
Issue of share capital
For the year ended 30 June 2019, Dome has raised $1,507,404 by private placements. The funds
were used for exploration, general working capital and loan repayment. Details of these raisings are
as follows:
On 13 November 2018 the Company completed a placement of 597,443 fully paid ordinary shares
at $0.20 per share to raise $119,489.
22
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
On 18 December 2018 the Company completed a placement of 551,231 fully paid ordinary shares
at $0.22 per share and 2,834,651 fully paid ordinary shares at $0.215 per share to raise $730,721.
On 18 April 2019 the Company completed a placement of 1,211,166 fully paid ordinary shares at
$0.20 per share to raise $242,233.
On 4 June 2019 the Company completed a placement of 1,074,806 fully paid ordinary shares at
$0.20 per share to raise $214,961.
On 18 June 2019 the Company completed a placement of 1,000,000 fully paid ordinary shares at
$0.20 per share to raise $200,000.
DIVIDENDS
No dividends were declared or paid during the financial year (2018: $nil).
EVENTS ARISING SINCE THE END OF THE REPORTING PERIOD
Subsequent to the end of the financial year:
Issue of share capital
On 11 July 2019 the Company completed a placement of 2,500,000 fully paid ordinary shares at
$0.20 per share to raise $500,000.
On 24 July 2019 the Company completed a placement of 750,000 fully paid ordinary shares at
$0.20 per share to raise $150,000.
On 16 August 2019 the Company completed a placement of 6,500,000 fully paid ordinary shares
at $0.20 per share to raise $1,300,000.
SPL 1495 Sigatoka Iron Sand Project
In August 2019, Dome commenced preparations to resume a sonic drilling program being done in to
collect samples from parts of the Sigatoka sand deposit not previously drilled with analytical and
geological results to be used to update the initial JORC 2012 resource estimates dated October 2014.
The drilling started in Fiji on 9 September 2019.
SPL 1452 Nadrau Project
• The SPL expired on February 13, 2019 and the Company has submitted a renewal application on
February 11, 2019. SPL 1452 was renewed for a further 3-year period on September 12, 2019. The
SPL remained in force during the renewal process.
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.
23
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
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
3
3
3
Attended
3
3
3
Entitled to
attend
2
-
2
Attended
2
-
2
UNISSUED SHARES UNDER OPTION
Unissued ordinary shares of Dome under option as at 30 June 2019 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*
2,015,630
1,074,806
Exercise price
$0.20
$0.20
$0.20
$0.20
$0.20
$0.20
$0.20
$0.40
$0.50
$0.40
$0.50
$0.20
$0.20
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
18 April 2021
4 June 2021
*Options granted by the Company as part of the remuneration package - details of these options are set out in 2018
remuneration 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.
24
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 and
the CEO. 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 15 November 2018. 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 2019,
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 2019 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 ($)
2019
(0.65)
-
(1,770,486)
0.20
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
The Board considers that these indices do not have any impact on the Group’s performance.
25
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
$
2019
2018
2019
2018
2019
2018
Non-executive Directors
Garry Lowder
(Chairman)
Tadao Tsubata
(Director)
Sarah Harvey
(Director)
Other Key Management Personnel
John (Jack) McCarthy
(CEO)*
2019 Total
2018 Total
2019
2018
2019
2018
47,004
40,004
36,000
29,000
36,000
27,000
192,945
200,000
311,949
296,004
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
24,996
24,996
-
-
-
-
25,000
25,000
49,996
49,996
-
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
$
72,000
85,281
36,000
49,281
36,000
47,281
217,945
225,000
361,945
406,843
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 2019.
*John McCarthy retired as CEO from 31 May 2019.
26
Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
c.
Share-based remuneration
All options refer to options over ordinary shares of the Company, which are exercisable on a one-for-
one basis under the terms of the agreement.
There were no options over ordinary shares of the Company granted, exercised, forfeited or lapsed
unexercised which are related to Directors’ or key management personnel’s remuneration during the
year ended 30 June 2019. No terms of equity-settled share based payment transactions have been
altered or modified by the issuing entity during the 2019 financial year.
d.
Other information
Options held by key management personnel
The number of options to acquire shares in the Company during the 2019 reporting period held by
each of the Group’s Key Management Personnel of the Group, including their related parties, is set out
below.
Director
Balance at start
of year
Granted as
remuneration
Received on
exercise
Other changes
YEAR ENDED 30 JUNE 2019
Garry Lowder
Tadao Tsubata
Sarah Harvey
John McCarthy*
500,000
500,000
500,000
-
*John McCarthy retired as CEO from 31 May 2019.
-
-
-
-
-
-
-
-
-
-
-
-
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 2019 reporting period held by each of the
Group’s Key Management Personnel of the Group, including their related parties, is set out below.
Director
Balance at start
of year
Granted as
remuneration
Received on
exercise
YEAR ENDED 30 JUNE 2019
Garry Lowder
Tadao Tsubata*
Sarah Harvey
John McCarthy**
570,000
47,342,393
20,776,449
260,000
-
-
-
-
-
-
-
-
Other changes
Held at the end
of reporting
period
570,000
5,000,000 52,342,393
- 20,776,449
-
(260,000)
-
*5,000,000 shares were acquired through off-market transfer during the 2019 reporting period.
** John McCarthy retired as CEO from 31 May 2019. He and his related party held 260,000 shares as at the date
of his retirement.
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 was engaged under a service agreement. His remuneration is reported in the
table in section b above. The terms of his engagement were unspecified, and there was a 3 months’
notice of termination. On 31 May 2019, Mr John McCarthy retired as a CEO of the Company.
Following his retirement, Mr John McCarthy signed a consulting agreement with Dome for his
continuing consulting services with Dome on contract basis when required.
End of audited remuneration report.
27
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.
28
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 30 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, 19 September 2019
29
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 Ltd
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Dome Gold
Mines Ltd for the year ended 30 June 2019, 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, 19 September 2019
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.
30
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 2019 is dated as
at 30 June 2019 and was approved by the Board on 19 September 2019. 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.
31
Dome Gold Mines Ltd
and its controlled entities
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
for the year ended 30 June 2019
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
2019
$
2018
$
4
5
6
28
5,314
9,376
(579,294)
(1,158,750)
(1,732,730)
(10,688)
(27,068)
-
-
(1,770,486)
(538,979)
(1,038,734)
(1,568,337)
(7,008)
(25,228)
(103,439)
(309)
(1,704,321)
7
-
(1,770,486)
-
(1,704,321)
Other comprehensive income for the year
Items that may be reclassified subsequently to profit or
loss:
Exchange difference on translating foreign controlled
entities
151,258
31,187
Total comprehensive loss for the year
(1,619,228)
(1,673,134)
Earnings per share
Basic and diluted loss per share (cents per share)
8
(0.65)
(0.66)
The above consolidated statement of profit or loss and other comprehensive income should be read in
conjunction with the accompanying notes
32
Dome Gold Mines Ltd
and its controlled entities
Consolidated Statement of Financial Position
as at 30 June 2019
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
Borrowings
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Notes
9
10
11
12
14
11
15
16
2019
$
19,809
22,663
36,787
79,259
2018
$
1,004,930
51,384
76,690
1,133,004
171,464
233,078
31,705,357
30,264,494
263,242
213,697
32,140,063
30,711,269
32,219,322
31,844,273
279,531
50,452
329,983
187,649
-
187,649
Borrowings
16
995,469
472,561
TOTAL NON-CURRENT LIABILITIES
995,469
472,561
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Foreign currency translation reserve
Share option reserve
Accumulated losses
TOTAL EQUITY
1,325,452
660,210
30,893,870
31,184,063
17
43,378,192
42,049,157
356,849
103,439
205,591
103,439
(12,944,610)
(11,174,124)
30,893,870
31,184,063
The above consolidated statement of financial position should be read in conjunction with the accompanying
notes.
33
Dome Gold Mines Ltd
and its controlled entities
Consolidated Statement of Changes in Equity
for the year ended 30 June 2019
Foreign
currency
translation
reserves
$
Share
option
reserve
$
Issued
capital
$
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
$
(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
Balance at 1 July 2018
42,049,157
205,591
103,439
(11,174,124)
31,184,063
Transaction with owners
Ordinary shares issued
1,507,404
Transaction costs on issue of shares
(178,369)
Total transactions with owners
1,329,035
-
-
-
Other comprehensive income
Loss for the year
Total comprehensive loss for the year
-
-
-
151,258
-
151,258
-
-
-
-
-
-
-
-
-
-
1,507,404
(178,369)
1,329,035
151,258
(1,770,486)
(1,770,486)
(1,770,486)
(1,619,228)
Balance at 30 June 2019
43,378,192
356,849
103,439
(12,944,610)
30,893,870
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
34
Dome Gold Mines Ltd
and its controlled entities
Consolidated Statement of Cash Flows
for the year ended 30 June 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received
Cash received from other income
Cash paid to suppliers and employees
Interest paid
Other tax received/(paid)
Notes
2019
$
4,988
740
2018
$
9,328
-
(1,583,603)
(1,567,439)
-
26,229
(6,820)
(8,159)
Net cash used in operating activities
18
(1,551,646)
(1,573,090)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid on deposit/advance payment
Cash received on release of bond/deposit
Purchase of property, plant & equipment
Exploration cost payments capitalised
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital
Proceeds from borrowings
Cash paid on share issue costs
Repayment of borrowings
Net cash provided by financing activities
(160,655)
114,543
(24,831)
(665)
-
(54,608)
(1,281,169)
(1,658,344)
(1,352,112)
(1,713,617)
1,507,404
600,000
(135,278)
(53,708)
1,918,418
4,440,854
-
(569,442)
(763,076)
3,108,336
Net decrease in cash and cash equivalents
(985,340)
(178,371)
Cash and cash equivalents at the beginning of the
financial year
1,004,930
1,182,258
Exchange differences on cash and cash equivalents
219
1,043
Cash and cash equivalents at the end of the financial
year
9
19,809
1,004,930
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
.
35
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 2019 were approved and authorised for
issue by the board of directors on 19 September 2019 (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 4, Level 21, 123 Pitt Street, Sydney 2000.
Dome Gold Mines Ltd is the parent company with 100% ownership of:
Magma Mines Pty Ltd;
Dome Mines Pte Ltd (a company limited by shares incorporated in Fiji); and
Magma Mines Pte 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. The Group adopted the new standards
using the modified retrospective approach which means that the cumulative impact of the adoption (if
any) is recognised in retained earnings as of 1 July 2018 and that comparatives will note be restated
AASB 15 Revenue from Contracts with Customers
The Group adopted AASB 15 from 1 July 2018 but does not derive any revenue from its exploration
activities at this stage, as such has not recognised any operating revenue to date. Eventually when the
Group starts generating revenue, revenue will be recognised in accordance with AASB 15. Therefore
there is no impact from the transition from AASB118 to AASB 15.
36
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
2 CHANGES IN ACCOUNTING POLICIES (CONTINUED)
2.1 New and revised standards that are effective and adopted by the Group (continued)
AASB 9 Financial Instruments
AASB 9 sets out requirements for recognising and measuring financial assets, financial liabilities and
somecontracts to buy or sell non-financial items. This standard replaces AASB 139 Financial Instruments:
Recognition and Measurement.
(a) Classification - Financial assets and financial liabilities
AASB 9 contains a new classification and measurement approach for financial assets that reflects the
business model in which assets are managed and their cash flow characteristics. AASB 9 contains three
principal classification categories for financial assets: measured at amortised cost, fair value through
other comprehensive income (FVOCI) and fair value through profit and loss (FVTPL). The standard
eliminates the existing AASB 139 categories of held to maturity, loans and receivables and available for
sale. Loans and receivables are classified and measured at amortised cost.
The Group holds assets in order to collect contractual cash flows, and the contractual terms are solely
payments of outstanding principal and interest on the principal outstanding. The standard requires all
financial liabilities to be subsequently classified at amortised cost, except in certain circumstances, of
which none applies to the Group.
The table below outlines the accounting treatment for financial assets and financial liabilities under AASB
139 as compared to AASB 9.
Financial instrument
Security deposits
Trade and other payables
Borrowings
Previous
AASB 139
Amortised cost
Amortised cost
Amortised cost
Current
AASB 9
Amortised cost
Amortised cost
Amortised cost
The Group’s other receivables do not meet the definition of a financial asset as they include GST
receivable and prepayments. As a result, Group management is satisfied that there is no impact from the
transition from AASB139 to AASB9
(b) Impairment –Trade and other receivables
AASB 9 replaces the ‘incurred loss’ model in AASB 139 with a forward-looking ‘expected credit loss’
(ECL) model. The new impairment model is only relevant to the Group’s financial assets measured at
amortised cost. Given the Group is currently in the exploration phase and does not have trade
receivables there was no impact of adoption of AASB 9 in this respect.
(c) Hedge accounting
The new hedge accounting rules generally allow for more hedge relationships to be eligible for hedge
accounting, as the standard is aligned to a principles-based approach. On basis that the Group does not
have hedging arrangements there is no impact on adoption of AASB 9 to the Group in this respect.
2.2 New and revised standards that are not yet adopted by the Group
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
37
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)
The Group has operating lease commitments of 3 motor vehicles in Fiji and office leases in both Fiji and
Australia. On adoption of AASB 16, the Group will recognise on its balance sheet the minimum lease
payments under its lease arrangements as ‘right-of-use assets’ with a corresponding financial lease
liability. The financial liability will be adjusted for lease prepayments, lease incentives received, initial
direct costs incurred and an estimate of any future restoration, removal or dismantling costs. Straight-line
operating lease expense recognised previously recognised under AASB 117 will be replaced with a
depreciation charge for the leased asset (included in operating costs), and an interest expense on the
recognised lease liability (included in finance costs). In the earlier periods of the lease, the expenses
associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB
117. However EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results will be
improved as the operating expense is replaced by interest expense and depreciation in profit or loss
under AASB 16. For classification within the statement of cash flows, the lease payments will be
separated into both a principal (financing activities) and interest (operating activities) component.
Based on the Group’s preliminary assessment, a right of use asset of $428,620 and lease liability of
$403,980 is expected to be recognised effective 1 July 2019.
The Group 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 note be restated.
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 2019. 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.
38
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED)
3.3 Business combination
The Group applies the acquisition method in accounting for business combinations.
The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of
the acquisition-date fair values of assets transferred, liabilities incurred and the equity interests issued by
the Group, which includes the fair value of any asset or liability arising from a contingent consideration
arrangement. Acquisition costs are expensed as incurred.
The Group recognises identifiable assets acquired and liabilities assumed in a business combination
regardless of whether they have been previously recognised in the acquiree’s financial statements prior to
the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition-date
fair values.
Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess
of the sum of (a) fair value of consideration transferred, (b) the recognised amount of any non-controlling
interest in the acquiree and (c) acquisition-date fair value of any existing equity interest in the acquiree,
over the acquisition-date fair values of identifiable net assets. If the fair values of identifiable net assets
exceed the sum calculated above, the excess amount (i.e. gain on a bargain purchase) is recognised in
profit or loss immediately.
3.4 Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis.
3.5 Foreign currency transactions and balances
Functional and presentation currency
The consolidated financial statements are presented in Australian dollars (AUD), which is also the
functional currency of the parent company.
Foreign currency transactions and balances
Foreign currency transactions are translated into the functional currency of the respective Group entity,
using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign
exchange gains and losses resulting from the settlement of such transactions and from the re-
measurement of monetary items at period end exchange rates are recognised in profit or loss.
Non-monetary items are not retranslated at period-end and are measured at historical cost (translated
using the exchange rates at the date of the transactions), except for non-monetary items measured at fair
value which are translated using the change rates at the date when fair value was determined.
Foreign operations
In the Group's financial statements, all assets, liabilities and transactions of Group entities with a
functional currency other than the AUD are translated into AUD upon consolidation. The functional
currency of the entities in the Group has remained unchanged during the reporting period.
On consolidation, assets and liabilities have been translated into AUD at the closing rate at the reporting
date. Goodwill and fair value adjustments arising on the acquisition of a foreign entity have been treated
as assets and liabilities of the foreign entity and translated into AUD at the closing rate. Income and
expenses have been translated into AUD at the average rate over the reporting period. Exchange
differences are charged/credited to other comprehensive income and recognised in the currency
translation reserve in equity. On disposal of a foreign operation the cumulative translation differences
recognised in equity are reclassified to profit or loss and recognised as part of the gain or loss on
disposal.
39
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED)
3.6 Segment Reporting
Determination and presentation of operating segments
The Group determines and presents operating segments based on the information that is provided
internally to the management.
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any
of the Group’s other components. All operating segments’ operating results are regularly reviewed by the
Group’s management to make decisions about resources to be allocated to the segment and assess its
performance, and for which discrete financial information is available.
Segment results that are reported to the management include items directly attributable to a segment as
well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate
assets (primarily the Company’s headquarter), head office expenses, and income tax assets and
liabilities.
Segment capital expenditure is the total costs incurred during the period to acquire property, plant and
equipment, and intangible assets other than goodwill.
3.7 Exploration and evaluation expenditure
Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as exploration
and evaluation assets on an area of interest basis.
Exploration and evaluation assets are only recognised if the rights of the area of interest are current and
either:
the expenditures are expected to be recouped through successful development and exploitation of the
area of interest; or
activities in the area of interest have not at the reporting date, reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves and
active and significant operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine
technical feasibility and commercial viability and facts and circumstances suggest that the carrying
amount exceeds the recoverable amount. For the purposes of impairment testing, exploration and
evaluation assets are allocated to cash generating units to which the exploration activity relates. The
cash generating unit shall not be larger than the area of interest.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of
interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first
tested for impairment and then reclassified from exploration and evaluation expenditure to mining
property and development assets within property, plant and equipment.
40
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED)
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
2-20 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.
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.
.
41
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED)
3.10 Income tax (continued)
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
The Group currently does not have any revenue. The SPL licenses of the Group only permit the Group to
carry out exploration activities. Once the Group reaches the production phase, revenue will be recognised
using the 5-step process:
1 Identifying the contract with a customer
2 Identifying the performance obligations
3 Determining the transaction price
4 Allocating the transaction price to the performance obligations
5 Recognising revenue when/as performance obligation(s) are satisfied.
The total transaction price for a contract is allocated amongst the various performance obligations based
on their relative stand-alone selling prices. The transaction price for a contract excludes any amounts
collected on behalf of third parties.
Accounting policy for comparative period
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.
3.14 Financial instruments
Recognition and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the
contractual provisions of the financial instrument.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset
expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial
liability is derecognised when it is extinguished, discharged, cancelled or expires.
42
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED)
3.14 Financial instruments (continued)
Classification and initial measurement of financial assets
Except for those trade receivables that do not contain a significant financing component and are
measured at the transaction price in accordance with AASB 15, all financial assets are initially measured
at fair value adjusted for transaction costs (where applicable).
Financial assets, other than those designated and effective as hedging instruments, are classified into the
following categories:
• amortised cost
• fair value through profit or loss (FVTPL)
• fair value through other comprehensive income (FVOCI).
In the periods presented the corporation does not have any financial assets categorised as FVOCI. The
classification is determined by both:
• the entity’s business model for managing the financial asset
• the contractual cash flow characteristics of the financial asset.
All income and expenses relating to financial assets that are recognised in profit or loss are presented
within finance costs, finance income or other financial items, except for impairment of trade receivables
which is presented within other expenses.
Subsequent measurement of financial assets
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not
designated as FVTPL):
• they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows
• the contractual terms of the financial assets give rise to cash flows that are solely payments of principal
and interest on the principal amount outstanding
After initial recognition, these are measured at amortised cost using the effective interest method.
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.
Financial assets at fair value through profit or loss (FVTPL)
Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to
collect and sell’ are categorised at fair value through profit and loss. Further, irrespective of business
model financial assets whose contractual cash flows are not solely payments of principal and interest are
accounted for at FVTPL. All derivative financial instruments fall into this category.
Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The
fair values of financial assets in this category are determined by reference to active market transactions
or using a valuation technique where no active market exists.
43
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED)
3.14 Financial instruments (continued)
Impairment of financial assets
AASB 9’s impairment requirements use more forward-looking information to recognise expected credit
losses – the ‘expected credit loss (ECL) model’. This replaced AASB 139’s ‘incurred loss model’.
Instruments within the scope of the new requirements included loans and other debt-type financial
assets measured at amortised cost and FVOCI, trade receivables, contract assets recognised and
measured under AASB 15 and loan commitments and some financial guarantee contracts (for the
issuer) that are not measured at fair value through profit or loss.
Recognition of credit losses is no longer dependent on the Group first identifying a credit loss event.
Instead the Group considers a broader range of information when assessing credit risk and measuring
expected credit losses, including past events, current conditions, reasonable and supportable forecasts
that affect the expected collectability of the future cash flows of the instrument.
In applying this forward-looking approach, a distinction is made between:
• financial instruments that have not deteriorated significantly in credit quality since initial recognition or
that have low credit risk (‘Stage 1’) and
• financial instruments that have deteriorated significantly in credit quality since initial recognition and
whose credit risk is not low (‘Stage 2’).
‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting date.
‘12-month expected credit losses’ are recognised for the first category while ‘lifetime expected credit
losses’ are recognised for the second category.
Measurement of the expected credit losses is determined by a probability-weighted estimate of credit
losses over the expected life of the financial instrument.
Classification and measurement of financial liabilities
The Group’s financial liabilities include borrowings, trade and other payables and derivative financial
instruments.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction
costs unless the Group designated a financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method
except for derivatives and financial liabilities designated at FVTPL, which are carried subsequently at fair
value with gains or losses recognised in profit or loss (other than derivative financial instruments that are
designated and effective as hedging instruments).
All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in
profit or loss are included within finance costs or finance income.
44
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED)
3.14 Financial instruments (continued)
Derivative financial instruments
Derivative financial instruments are accounted for at fair value through profit and loss (FVTPL) except for
derivatives designated as hedging instruments in cash flow hedge relationships, which require a specific
accounting treatment. To qualify for hedge accounting, the hedging relationship must meet all of the
following requirements:
• there is an economic relationship between the hedged item and the hedging instrument
• the effect of credit risk does not dominate the value changes that result from that economic relationship
• the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged
item that the entity actually hedges and the quantity of the hedging instrument that the entity actually uses
to hedge that quantity of hedged item.
Accounting policy for comparative period
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.
45
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 ($31,705,357 at 30 June 2019) (2018: $30,264,494)
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 approval of the consolidated financial
statements, all licences have been renewed and are up to date.
(ii) Going concern (Note 3.16)
3.16 Going concern
The consolidated financial statements have been prepared on a going concern basis which contemplates
the realisation of assets and settlement of liabilities in the ordinary course of business.
The Group has incurred a trading loss of $1,770,486 (2018: $1,704,321), used $2,832,815 (2018:
$3,231,434) of net cash in operations including payments for exploration during the year ended 30 June
2019, and has a cash balance of $19,809 at 30 June 2019 (2018: $1,004,930), and current liabilities
exceed current assets by $250,724. However, subsequent to 30 June 2019, the Group has received
$1,950,000 in addition from shareholders via capital raising. 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.
46
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- financial 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.
47
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
Other
Total other income
2019
$
5,074
240
5,314
2018
$
9,376
-
9,376
48
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% (2018: 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
2019
$
662,536
240
338,399
157,575
1,158,750
25,102
1,966
27,068
-
-
-
2018
$
613,297
1,339
277,340
146,758
1,038,734
2,604
22,624
25,228
-
-
-
(1,770,486)
(1,704,321)
(486,884)
(468,688)
21,306
449,939
14,306
1,333
-
15,701
453,581
(1,879)
1,285
-
3,127,878
720,025
(2,185,055)
1,662,848
2,656,883
774,945
(1,827,397)
1,604,431
49
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
2019
$
2018
$
(1,770,486)
(1,704,321)
No of Shares
Weighted average number of shares at the end of
the year used in basic and diluted loss per share
271,577,741
256,514,342
Basic and diluted loss per share (cents)
(0.65)
(0.66)
As the Group is loss making, none of the potentially dilutive securities are currently dilutive.
9 CASH AND CASH EQUIVALENTS
For the purpose of the Statement of Cash Flows, cash includes cash on hand, cash at bank and short
term deposits at call, net of any outstanding bank overdraft, if any. Cash at the end of the year as shown
in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as
follows
Cash at bank
Total cash and cash equivalents
10 TRADE AND OTHER RECEIVABLES
Other receivables
Other tax receivables
Total other receivables
11 OTHER ASSETS
Current
Prepayments
Total other current assets
Non-current
Bank guarantee deposit
Bond deposit
Other capital costs
Total other non-current assets
19,809
19,809
1,171
21,492
22,663
36,787
36,787
159,874
102,509
859
263,242
1,004,930
1,004,930
2,526
48,858
51,384
76,690
76,690
114,543
98,324
830
213,697
50
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
2019
$
6,350
(1,880)
4,470
14,384
(9,945)
4,439
498,458
(375,248)
123,210
61,209
(21,864)
39,345
171,464
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
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
$
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
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
51
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
$
6,832
2,362
(3,048)
204
6,350
(3,034)
(1,808)
3,048
(86)
(1,880)
13,904
-
-
480
14,384
(7,776)
(1,900)
-
(269)
(9,945)
480,282
2,013
-
16,163
498,458
(286,947)
(78,818)
-
(9,483)
(375,248)
45,141
20,455
(4,387)
-
61,209
(15,324)
(10,688)
4,148
-
(21,864)
Total
$
546,159
24,830
(7,435)
16,847
580,401
(313,081)
(93,214)
7,196
(9,838)
(408,937)
4,470
4,439
123,210
39,345
171,464
Gross carrying amount
Balance at 1 July 2018
Additions
Disposals
Net exchange difference
Balance at 30 June 2019
Depreciation and impairment
Balance at 1 July 2018
Depreciation
Disposals
Net exchange difference
Balance at 30 June 2019
Carrying amount as at 30
June 2019
13 LEASES
Operating leases as lessee
The Group has operating lease commitments of 3 motor vehicles in Fiji and office lease in both Fiji and
Australia.
The motor vehicles rental contract and office lease in Fiji both have a non-cancellable term of three years.
The office lease contract in Australia has a non-cancellable term of one year and ten months.
The future minimum lease payments are as follows:
30 June 2019
30 June 2018
Within 1 year
$
297,732
183,829
1-3years
$
162,192
21,613
Minimum Lease Payments Due
After 3 years
$
Total
$
459,924
205,442
-
-
Lease expenses during the year amounted to $262,436 (2018: $210,598) representing the minimum
lease payments.
52
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
14 CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE
Balance at 1 July 2017
Expenditure capitalised during the year
Balance at 30 June 2018
Balance at 1 July 2018
Expenditure capitalised during the year
Balance at 30 June 2019
$
28,395,904
1,868,590
30,264,494
30,264,494
1,440,863
31,705,357
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 2019.
15 TRADE AND OTHER PAYABLES
Current
Accruals
Trade creditors
Other payables
Provisions
Total other payables
16 BORROWINGS
Current
Loan from related party
Total borrowings
Non-current
Loan from third party
Loan from related party
Total borrowings
2019
$
186,089
41,274
34,066
18,102
279,531
50,452
50,452
421,028
574,441
995,469
2018
$
114,149
30,220
18,037
25,243
187,649
-
-
472,561
-
472,561
The outstanding loan payable to a third party as at 30 June 2019 is $421,028 (2018: $472,561). The
agreed interest rate on the unsecured loan is 5%. The facility is not secured. The remaining facility with a
third party available as at 30 June 2019 is $578,972 (2018: $527,439). The facility was extended from 31
December 2018 to 31 December 2020.
The Company has three loan facilities with related parties, refer to Note 20(a).
The outstanding loan payable to the first related party as at 30 June 2019 is $50,452 (2018: $Nil). The
agreed interest rate on this unsecured loan is 10%. The facility is not secured and expires on 30 June
2020. The Company has used all facility available with this related party as at 30 June 2019 (2018: $Nil).
53
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
16 BORROWINGS (CONTINUED)
The outstanding loan payable to the second related party as at 30 June 2019 is $574,441 (2018: $Nil).
The agreed interest rate on the unsecured loan is 10%. The facility is not secured. The Company has
used all facility available with this related party as at 30 June 2019 (2018: $Nil). The facility was extended
during the reporting period from 30 June 2019 to 31 December 2020.
There is no outstanding loan payable to the third related party as at 30 June 2019 (2018: $Nil) and the
facility is available for use till 31 December 2020. The total facility of the Company with this related party
is $3,500,000 as at 30 June 2019 (2018: $3,500,000). The agreed interest rate on the unsecured loan is
5%. The facility is not secured.
17
ISSUED CAPITAL
2019
2018
Ordinary shares fully paid
276,300,997
43,378,192
269,031,700
42,049,157
Shares
$
Shares
$
Movements in ordinary share capital
Ordinary shares
Balance at 1 July 2017
No. of
shares
$
246,827,429
38,120,421
Fully paid ordinary shares issued 15 November 2017 at $0.20
2,477,625
495,525
Fully paid ordinary shares issued 28 November 2017 at $0.20
Fully paid ordinary shares issued 14 December 2017 at $0.20
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
Fully paid ordinary shares issued 2 May 2018 at $0.20
Less costs of issue
1,454,165
5,231,512
3,000,000
4,377,489
561,990
5,101,490
-
290,833
1,046,302
600,000
875,498
112,398
1,020,298
(512,118)
Balance at 30 June 2018
269,031,700
42,049,157
Balance at 1 July 2018
269,031,700
42,049,157
Fully paid ordinary shares issued 13 November 2018 at $0.20
Fully paid ordinary shares issued 18 December 2018 at $0.22
Fully paid ordinary shares issued 18 December 2018 at $0.215
Fully paid ordinary shares issued 18 April 2019 at $0.20
Fully paid ordinary shares issued 4 June 2019 at $0.20
Fully paid ordinary shares issued 18 June 2019 at $0.20
Less costs of issue
Balance at 30 June 2019
597,443
551,231
2,834,651
1,211,166
1,074,806
1,000,000
119,489
121,271
609,450
242,233
214,961
200,000
-
(178,369)
276,300,997
43,378,192
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.
54
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
Decrease/(increase) in trade receivables and other
assets
Increase in trade and other payables
Share based payments
2019
$
2018
$
19,809
1,004,930
(1,770,486)
(1,704,321)
10,688
240
25,210
130,839
51,863
-
7,008
1,339
(5,579)
(15,121)
40,145
103,439
Net cash used in operating activities
(1,551,646)
(1,573,090)
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
60,500
60,500
60,000
60,000
20 RELATED PARTY TRANSACTIONS
(a) The Group has loans from related parties as described below.
Loan from related parties
Beginning of the year
Loans advanced
Loan repayments
Interest withholding tax
Interest charged
End of period
-
600,000
(209)
-
25,102
624,893
98,021
-
(99,870)
(755)
2,604
-
The agreed interest on the loans is 10%. The loans are unsecured. An amount of $50,452 is provided by
a member of key management personnel and the remaining $574,441 is provided by a Company wherein
a member of key management personnel is a director. Amounts are repayable in full by 30 June 2020
and 31 December 2020 respectively.
55
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
Total short term employee benefits
Post-employment benefits
Superannuation
Total post-employment benefits
Share-based payments
2019
$
311,949
311,949
49,996
49,996
-
2018
$
296,004
296,004
49,996
49,996
60,843
Total remuneration
361,945
406,843
There are no other related party transactions during the year ended 30 June 2019.
21 CONTINGENCIES AND COMMITMENTS
Minimum tenement expenditure requirements
Within one year
Between one to five years
Total
2019
$
361,326
3,131,150
3,492,476
2018
$
378,145
224,422
602,567
The minimum tenement expenditure requirements are guidelines only by the Mineral Resources
Department in Fiji.
SPL 1451 is valid until 12 February 2020, SPL 1495 is valid until 10 February 2022, and SPL 1452 is
valid until 26 August 2022.
Additional bond requirements
Within one year
Between one to five years
Total
2019
$
-
33,548
33,548
2018
$
-
-
-
Commitments
The Group entered into an agreement with IHC Robbins to undertake a Definitive Feasibility Study (DFS)
on the Sigatoka Iron sand Project during December 2018. As at the reporting date the Group’s
commitment from this arrangement is capped at $3 million, of which $500,000 work has been completed
including study mobilisation and commencement of test work, options assessment and test work
completion. The Group has the ability to terminate the arrangement at any time, in such a situation the
Group’s commitment will be capped to the extent of work performed by IHC Robbins as of the date of
termination.
Guarantees
The Group has a bank guarantee of $159,874 (2018: $114,543), and bond deposits totalling $102,509
(2018: $98,324) as at 30 June 2019.
There are no other contingent assets or liabilities as at the date of this financial report.
56
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 2019 the Group principally operated in Fiji in the mineral exploration sector.
The Group has two reportable segments, as described below.
Operating Segment
Ironsand Project
$
Gold Projects
$
Corporate
$
Consolidated
total
$
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
30 June 2019
Segment revenue
External revenue
Finance income
Total revenue
Depreciation
-
512
512
-
-
355
355
-
240
4,207
4,447
240
5,074
5,314
(10,688)
(10,688)
Segment profit/(loss)
(9,429)
(9,229)
(1,751,828)
(1,770,486)
Segment assets
28,948,207
3,016,007
255,108
32,219,322
Segment liabilities
2,792,985
2,488,139
(3,955,672)
1,325,452
57
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 corporate assets
Consolidated assets
Liabilities
Total liabilities for reportable segments
Intercompany eliminations
Other corporate liabilities
Consolidated liabilities
23 PARENT ENTITY DISCLOSURES
2019
$
2018
$
(18,658)
(1,751,828)
(1,770,486)
31,964,214
(5,596,878)
5,851,986
32,219,322
5,281,124
(5,596,878)
1,641,206
1,325,452
(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
As at and throughout the financial year ended 30 June 2019 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
2019
$
(1,751,944)
164,129
(1,587,815)
5,317,576
26,746,176
32,063,752
313,320
995,469
1,308,789
30,754,963
43,378,192
(12,860,559)
133,891
103,439
30,754,963
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
The Directors are of the opinion that no contingencies existed at, or subsequent to year end.
58
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
24 POST-REPORTING DATE EVENTS
Subsequent to the end of the financial year:
Issue of share capital
On 11 July 2019 the Company completed a placement of 2,500,000 fully paid ordinary shares at
$0.20 per share to raise $500,000.
On 24 July 2019 the Company completed a placement of 750,000 fully paid ordinary shares at $0.20
per share to raise $150,000.
On 16 August 2019 the Company completed a placement of 6,500,000 fully paid ordinary shares at
$0.20 per share to raise $1,300,000.
SPL 1495 Sigatoka Iron Sand Project
In August 2019, Dome commenced preparations to resume a sonic drilling program being done in to
collect samples from parts of the Sigatoka sand deposit not previously drilled with analytical and
geological results to be used to update the initial JORC 2012 resource estimates dated October 2014.
The drilling started in Fiji on 9 September 2019.
SPL 1452 Nadrau Project
• The SPL expired on February 13, 2019 and the Company has submitted a renewal application on
February 11, 2019. SPL 1452 was renewed for a further 3-year period on September 12, 2019. The SPL
remained in force during the renewal process.
No other matters or circumstances have arisen since the end of the year that have significantly affected
or may significantly affect the operations of the Group, the results of those operations, or the state of
affairs of the Group in future financial years.
25 SUBSIDIARIES
Particulars in relation to controlled entities:
Controlled entities
Dome Mines Pte Limited
Magma Mines Pty Ltd
Magma Mines Pte Limited
26 FINANCIAL INSTRUMENT RISK
Country of
incorporation
Company interest in
ordinary shares
2019
%
100
100
100
2018
%
100
100
100
Fiji
Australia
Fiji
26.1 Risk management objectives and policies
The Group is exposed to various risks in relation to financial instruments. The Group's financial assets
and liabilities by category are summarised in note 3.14. The main types of risks are market risk, credit risk
and liquidity risk.
The Group's risk management is coordinated by management, in close co-operation with the board of
directors, and focuses on actively securing the Group's short to medium term cash flows by minimising
the exposure to financial markets.
The Group does not actively engage in the trading of financial assets for speculative purposes nor does it
write options. The most significant financial risks to which the Group is exposed are described below.
The Group is exposed to market risk through its use of financial instruments and specifically to currency
risk and certain other price risks, which result from both its operating and investing activities.
59
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
26 FINANCIAL INSTRUMENT RISK (CONTINUED)
26.2 Market risk analysis
The Group is exposed to market risk through its use of financial instruments and specifically to currency
risk, interest rate risk and certain other price risks, which result from both its operating and investing
activities.
Foreign currency sensitivity
Most of the Group's transactions are carried out in AUD. Exposures to currency exchange rates arise
from the Group's overseas purchases, which are primarily denominated in Fijian dollars (FJD). To
mitigate the Group's exposure to foreign currency risk, non-AUD cash flows are monitored.
The following table illustrates the sensitivity of profit in regards to the Group's financial assets and
financial liabilities and the AUD/FJD exchange rate 'all other things being equal'. It assumes a +/- 5%
change of the AUD/FJD exchange rate for the year ended 30 June 2019. 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% (2018: 5%) then this would have had the following
impact:
30 June 2019
30 June 2018
Profit for the year
$
-
-
Equity
$
250,253
227,097
If the AUD had weakened against the FJD by 5% (2018: 5%) then this would have had the following
impact:
30 June 2019
30 June 2018
Profit for the year
$
-
-
Equity
$
(250,253)
(227,097)
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 2019, the Group is not exposed to changes in market interest
rates through borrowings as all borrowings are at fixed interest rates.
At 30 June 2019, 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.
60
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
26 FINANCIAL INSTRUMENT RISK (CONTINUED)
26.2 Market risk analysis (continued)
As at the end of the reporting period, the Group had the following floating financial instruments:
2019
Weighted
average
interest rate
%
Balance
$
2018
Weighted
average
interest rate
%
Balance
$
Cash and cash equivalents
0
19,809
0.46
1,004,930
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).
2019
+0.5%
$
-0.5%
$
2018
+0.5%
$
-0.5%
$
Profit/(loss) for the year
99
(99)
5,025
(5,025)
26.3 Credit risk analysis
Credit risk is the risk that a counterparty fails to discharge an obligation to the Group. The Group is
exposed to this risk for various financial instruments, for example by receivables from other parties,
placing deposits etc. The Group's maximum exposure to credit risk is limited to the carrying amount of
financial assets recognised at the reporting date, as summarised below:
Classes of financial assets -
Carrying amounts:
Cash and cash equivalents
Trade and other receivables
Bank guarantee deposit
Bond deposit
Carrying amount
2019
$
19,809
22,663
159,874
102,509
304,855
2018
$
1,004,930
51,384
114,543
98,324
1,269,181
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.
61
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
26 FINANCIAL INSTRUMENT RISK (CONTINUED)
26.4 Liquidity risk analysis
Liquidity risk is that the Group might be unable to meet its obligations. The Group manages its liquidity
needs by monitoring scheduled debt servicing payments for financial liabilities as well as forecast cash
inflows and outflows due in day-to-day business. The data used for analysing these cash flows is
consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in
various time bands, on a day-to-day and week-to-week basis, as well as on the basis of a rolling 30-day
projection. Long-term liquidity needs for a 180-day and a 360-day lookout period are identified monthly.
Net cash requirements are compared to available borrowing facilities in order to determine headroom or
any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over
the lookout period.
The Group's objective is to maintain cash and marketable securities to meet its liquidity requirements for
90-day periods at a minimum. This objective was met for the reporting periods. Funding for long-term
liquidity needs is additionally secured by an adequate amount of committed credit facilities.
The carrying amount of financial liabilities recognised at the reporting date, as summarised below:
30 June 2019
Carrying value
Contractual amount
Borrowings
Trade and other payables
Total
$
1,045,921
279,531
1,325,452
Total Within one year
$
55,452
279,531
334,983
$
1,135,332
279,531
1,414,863
30 June 2018
Carrying value
Contractual amount
Borrowings
Trade and other payables
Total
$
472,561
187,649
660,210
Total Within one year
$
-
187,649
187,649
$
482,486
187,649
670,135
Between one to
five years
$
1,079,880
-
1,079,880
Between one to
five years
$
482,486
-
482,486
27 CAPITAL RISK MANAGEMENT
Our objective of capital risk management is to manage capital and safeguard our ability to continue as a
going concern, and to generate returns for shareholders. The Group manages its risk exposure of its
financial instruments in accordance with the guidance of the Board of Directors. The Group uses different
methods to manage and minimise its exposure to risks. These include monitoring levels of interest rates
fluctuations to maximise the return of bank balances and the flexing of the gearing ratios. Liquidity risk is
monitored through the development of future rolling cash flow forecasts.
The final approval and monitoring of any of these policies is done by the Board which review and agrees
on the policies for managing risks.
The primary responsibility to monitor the financial risks lies with the Directors and the Company Secretary
under the authority of the Board. The Board approved policies for managing risks including the setting up
of approval limits for purchases and monitoring projections of future cash flows.
62
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
28 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 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
($)
-
0.45
-
-
-
0.45
-
-
-
0.45
0.45
0.45
Number of
shares
-
1,500,000
-
-
-
1,500,000
-
-
-
1,500,000
1,500,000
1,500,000
Weighted
average
exercise price
($)
-
0.45
-
-
-
0.45
-
-
-
0.45
0.45
0.45
Number of
shares
-
1,000,000
-
-
-
1,000,000
-
-
-
1,000,000
1,000,000
1,000,000
Outstanding at 1 July 2017
Granted
Forfeited
Exercised
Expired
Outstanding at 30 June 2018
Granted
Forfeited
Exercised
Expired
Outstanding at 30 June 2019
Exercisable at 30 June 2018
Exercisable at 30 June 2019
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, Nil (2018: $103,439) expenses was recognised, 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.
63
Dome Gold Mines Ltd
and its controlled entities
Notes to the Consolidated Financial Statements
29 AUTHORISATION OF FINANCIAL STATEMENTS
The consolidated financial statements for the year ended 30 June 2019 (including comparatives) were
approved by the board of directors on 19 September 2019.
64
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 2019 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 2019.
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 19 September 2019
Sydney
65
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 Ltd
Report on the audit of the financial report
Opinion
We have audited the financial report of Dome Gold Mines Ltd (the Company) and its subsidiaries (the Group), which
comprises the consolidated statement of financial position as at 30 June 2019, 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 2019 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.
66
Material uncertainty related to going concern
We draw attention to Note 3.16 in the financial statements, which indicates that the Company incurred a net loss of $1,770,486
during the year ended 30 June 2019, and as of that date, the Company’s current liabilities exceeded its current assets by
$250,724. 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 Company’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.
In addition to the matter described in the Material uncertainty related to going concern section, we have determined the
matters described below to be the key audit matters to be communicated in our report.
Key audit matter
Exploration and Evaluation Assets – valuation
Note 3 and 14
At 30 June 2019 the carrying value of Exploration and
Evaluation Assets was $31,705,357.
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.
How our audit addressed the key audit matter
Our procedures included, amongst others:
Obtaining the management prepared reconciliation of
capitalised exploration and evaluation expenditure and
agreeing to the general ledger;
Evaluating management’s area of interest
considerations against AASB 6;
Conducting a detailed analysis 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;
Evaluating the competence, capabilities and objectivity
of management’s experts in the evaluation of potential
impairment triggers; and
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 2019, 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.
67
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
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 25 to 27 of the Directors’ report for the year ended 30 June
2019.
In our opinion, the Remuneration Report of Dome Gold Mines Ltd, for the year ended 30 June 2019 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, 19 September 2019
68
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 2019.
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
45,000,000
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
462
41
286,050,997
40,775,837
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 AND OPTIONHOLDERS
The total distribution of fully paid shareholders, being the only class of equity was as follows:
Range
Total
Shareholders
Total
Optionholders
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
9
16
165
144
128
462
-
-
-
1
40
41
69
Dome Gold Mines Ltd
and its controlled entities
ASX Additional Information
LESS THAN MARKETABLE PARCELS
On 31 August 2019, there were 20 holders of less than a marketable parcel of 2,565 ordinary shares.
TWENTY LARGEST SHAREHOLDERS
As at 31 August 2019, the twenty largest quoted shareholders held 70.69% of the fully paid ordinary
shares as follows:
Name
Blue Ridge Interactive Limited
Onizaki Corporation
Fleet Market Investments Pty Ltd
Brave Top Enterprises Ltd
Ordinary Shares
Quantity
45,000,000
30,000,000
19,776,499
10,500,000
Globe Street Investments Pty Ltd
10,000,000
Globe Street Investments Pty Ltd
10,000,000
Monex Boom Securities (HK) Ltd
Cybersys Inc
Tiger Ten Investment Limited
Mr Zhengjian Xu
Mr Hwaeun Park
Citicorp Nominees Pty Limited
Precious Tori Limited
Primavera
Thamadia Nominees Pty Ltd
BNP Paribas Nominees Pty Ltd
Mr Masayuki Kudo
Mr Katsuji Kato
Mr Makoto Sakamoto
Mr Akio Miyashita
8,406,955
8,000,000
7,292,393
6,797,613
6,367,734
6,291,563
5,783,539
5,000,000
5,000,000
3,999,490
3,973,976
3,382,720
3,362,000
3,289,163
%
15.73
10.49
6.91
3.67
3.50
3.50
2.94
2.80
2.55
2.38
2.23
2.20
2.02
1.75
1.75
1.40
1.39
1.18
1.18
1.15
TWENTY LARGEST OPTIONOLDERS
As at 31 August 2019, 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 2019, there were no escrowed securities.
70
Dome Gold Mines Ltd
and its controlled entities
ASX Additional Information
TENEMENTS SCHEDULE
Tenement
Location
Holder
SPL 1451
Ono Island
Dome Mines Pte Ltd
Area
(Ha)
3,028
Expiry Date
12/02/2020
SPL 1452
Nadrau
Dome Mines Pte Ltd
33,213
26/08/2022
SPL 1495
Sigatoka
Magma Mines Pte Ltd
2,522
11/02/2022
Interest
%
100
100
100
Note: Magma Mines Pte Ltd and Dome Mines Pte Ltd, both incorporated in Fiji, are wholly owned
subsidiaries of Dome Gold Mines Ltd. All the tenements are located in the Republic of Fiji.
71
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 4, Level 21, 123 Pitt Street
Sydney NSW 2000
Australia
Registered Office
Suite 4, Level 21, 123 Pitt 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
72