Dome Gold Mines
Annual Report 2020

Plain-text annual report

Dome Gold Mines Ltd and its controlled entities Table of Contents Chairman’s Message ................................................................................................................... 1 Directors’ Report ........................................................................................................................ 3 Auditor’s Independence Declaration ........................................................................................ 33 Corporate Governance Statement ............................................................................................. 34 Consolidated Statement of Profit or Loss and Other Comprehensive Income ......................... 35 Consolidated Statement of Financial Position .......................................................................... 36 Consolidated Statement of Changes in Equity.......................................................................... 37 Consolidated Statement of Cash Flows .................................................................................... 38 Notes to the Consolidated Financial Statements ....................................................................... 39 Directors’ Declaration ............................................................................................................... 71 Independent Auditor’s Report ................................................................................................... 72 ASX Additional Information .................................................................................................... 75 Corporate Directory .................................................................................................................. 78 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 2020. The past twelve months have been unlike any other period in the Company’s history, as the COVID- 19 pandemic has disrupted our lives and businesses in a manner beyond our control. The pandemic has severely affected international travel and interrupted the normal course of business activity worldwide. Dome has adopted a conservative approach, in accordance with protocols recommended by governments, with the health and wellbeing of our employees and their communities foremost in our minds. The impact for Dome is that strict constraints on movement have been imposed by the Fiji Government as well as a prohibition on overseas travel by the Australian Government, and restrictions on interstate travel within Australia. Fortunately, Dome was able to complete the resource drilling on Sigatoka by early April before the full extent of the COVID crisis emerged. The drilling programme was initiated late in 2019 in the Southern Kulukulu part of the Sigatoka resource area. Logging and sampling of the sand cores was also completed successfully by April and the samples were dispatched to the analytical laboratory in Australia in good time. While that was happening, Dome commissioned a new mineral resource estimate to be undertaken by our resource consultants, which when finished will incorporate the results of the 2019-2020 drilling at Kulukulu South. The outcomes of that work will be released as soon as possible after they are made available to Dome. This resource upgrade will give us high confidence about the size, grade and physical characteristics of the sand resource at which we currently propose to begin mining. Anecdotally we know this area has a higher magnetite content than the Sigatoka resource at large, which should substantially improve the economics of mining. The Kulukulu South area also has good access and freehold land, which will facilitate development when the time comes. While the COVID-19 pandemic has imposed difficulties on Dome there is a lot we can do that should allow us still to achieve much the same timeframe for development as we have previously envisaged. This is because we believe we can streamline much of the remaining DFS programme, carry out some of the work in parallel rather than in sequence, and modify our objectives to target production, even if at a reduced scale, sooner rather than later. The key procedure required for the DFS to advance is the collection of a large bulk sample at Sigatoka and its shipment to the Australian laboratory where the bulk sample will be processed at a pilot scale. That work is intended to confirm the metallurgical characteristics of the Sigatoka sand and produce good quantities of example products that can be used in marketing the anticipated production. Dome is now examining ways this bulk sample can be produced and shipped. We are also pleased to note that international benchmark iron ore prices have increased significantly since their lows in November last year, adding much value to Sigatoka. We also note that demand for industrial sand, such as Sigatoka can produce, continues to be strong. Worldwide, industrial sand for concrete and related uses is the most abundantly consumed raw material, with approximately 30 billion tonnes of such sand used annually. This provides Dome with an outstanding opportunity to make Sigatoka a substantial, multi-commodity mining operation, further enhancing the already strong indicative economics. Dome’s other exploration activities in Fiji over the past year have been low-key, partly because we are so focussed on Sigatoka but also, of course, due to the pandemic. The Nadrau and Ono Island assets remain very valuable and important for Dome regardless. With the gold price now in the vicinity of $US2000 per ounce and the copper price also strong, the inferred value of these properties has increased substantially. Considerable interest in Nadrau and Ono Island arose from other parties during the year and some had begun looking at a possible joint venture with Dome. Those activities have been suspended since the pandemic emerged, especially as they would require site visits, but we fully expect 1 Dome Gold Mines Ltd and its controlled entities Chairman’s Message that interest from major mining groups to reappear when the pandemic comes under control and travel can resume. 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 plays a critical role with regard to our Japanese shareholders and he continues to spend a great deal of time keeping these important stakeholders informed of our progress. I was pleased to meet some of Dome’s Japanese shareholders during a short visit I made to Tokyo during the period and I thank him for arranging these meetings. 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, despite the looming presence of a global pandemic. Dr Matthew White and Mr John McCarthy have provided much appreciated consulting support in the geological and exploration context. 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 finance and administrative staff in Sydney and by an effective team in Fiji. Dome is the sole owner of some very valuable mineral assets in Fiji and I am confident that those assets will yield real returns to our shareholders in the future. I thank shareholders for their patience during the pandemic period and look forward to rewarding that patience as the pandemic subsides and our momentum in Fiji returns. 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 2020. 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 50 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 Heavy Mineral Project • Special Prospecting Licence (SPL) 1495 was renewed for a further 3-year period on February 11, 2019 and will expire on February 10, 2022. • The 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. • • Pre-feasibility Study report completed early 2015. • A Definitive Feasibility Study (DFS) commenced by IHC Robbins in December 2018 to support an application for a Mining Lease was suspended in mid 2019 in order to complete further drilling to upgrade the initial JORC 2012 resource estimates. • Environmental Impact Assessment report produced in December 2014 will be updated during the DFS. 5 Dome Gold Mines Ltd and its controlled entities Directors’ Report • An Initial JORC 2012 resource estimate of 131.4Mt was published in October 2014 and an update of the resource estimate of an additional 52.7Mt was published on December 11, 2019. • A third update of the JORC 2012 resource estimate is expected on completion of laboratory analyses and deposit modelling by the independent resource consultants during 2020. • A report by IHC Robbins on pilot plant scale metallurgical test programs on 3 x 850kg samples was completed in June 2019. • The pilot plant produced titano-magnetite with between 56.9 and 57.9% Fe, 6.5 and 6.6% Ti and 0.4% V by standard wet gravity methods. • Washed sand also produced in the pilot plant meets Australian Standards for construction sand based on independent engineering analyses. Figure 2 – Special Prospecting Licence (SPL) 1495 map showing known 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. The maiden Resource Estimate of 131.4Mt included Indicated Mineral Resources of 25Mt @11.6% Heavy Minerals (HM) at Sigatoka River and Inferred Mineral Resources of 100.7Mt @ 17% HM at the onshore Kulukulu deposit and 5.9Mt @ 11% HM in the Sigatoka Riverbed. New Koroua Island JORC 2012 Resource Estimate On December 11, 2019 the Company announced an update of the initial resource estimates following sonic drilling of Koroura Island (not previously drilled) that added 52.7Mt to the resource base (see Figures 3 and 4 and Appendix 1 – “Table of Resources”). Sonic drilling over the Koroua Island resource area was completed in late 2017 and included a total of 69 sonic drill holes for an average depth of 23.2m. The sonic holes were drilled on a 100m x 200m spaced grid over Koroua Island, which lies immediately west of the Sigatoka River (see Figure 3). A recently completed mineral resource estimate at Koroua Island returned: 6 Dome Gold Mines Ltd and its controlled entities Directors’ Report - 52.7 Mt @ 13.3% HM, with a total of 7.0 Mt contained HM (JORC 2012 Indicated Mineral Resource). - The 300 Gauss (primary magnetic fraction) HM assemblage averages 63% valuable iron sand minerals (largely magnetite, plus lesser goethite and hematite) and is estimated at just over one million tonnes. 48 of the 134 composites have undergone full modal mineral analysis. Four of these have shown traces of fine-grained gold and seven show traces of rare earth minerals. - Figure 3 – Aerial drone survey map of resource areas, previous drill sites and the 2019-20 Kulukulu resource update drilling sites within the Sigatoka Project area The resource estimation assumes a density of 1.8 g/cm3, and a cut-off grade of 8% HM. The Koroua Island sonic drilling and assay programme included standard QA measures to determine precision, accuracy and short-range geological/HM-grade continuity. A quarter core split was used for analysis subsequent to being photographed, geologically logged and measured for magnetic susceptibility. A strong correlation between magnetite content and magnetic susceptibility is observed. Drill samples are subjected to contemporary heavy mineral analytical techniques. Diamantina Laboratory is tasked with splitting, wet-screening and heavy media separation. HM residues are combined to conform to the geological interpretation and composites are sent to IHC Robbins for magnetic separation and XRF. A representative selection of samples from each fraction (relative to inherent value) are then forwarded to Process Mineralogy Consultants for semi-quantitative mineral assemblage determination and grain size analysis. All sample residues are retained for future reference and/or test work. A total of 134 Koroua Island heavy mineral composite samples were subjected to the two-stage magnetic separation and XRF analysis. Of these, 48 underwent the full mineral assemblage and grain size analysis. The analytical results from these composites have been incorporated into the latest mineral resource estimate. 7 Dome Gold Mines Ltd and its controlled entities Directors’ Report Results of sample analysis suggest that HM content is high, with a range of 3.1% to 47.3% and an average of 13.3% HM. As expected, the primary magnetic fraction (300 Gauss) is dominated by iron sand minerals (estimated 62.7% of the fraction) representing over one million tonnes of valuable heavy minerals (largely magnetite, plus lesser goethite and hematite). Of the 48 composite samples sent for mineral assemblage analysis, four recorded traces of fine gold and seven show traces of rare earth minerals. Further investigations are underway to determine the significance and extent of the gold and rare earth minerals discovered at Koroua Island. Updated Total Sigatoka JORC 2012 Resource Estimate The total Mineral Resource inventory for the Sigatoka Iron Sand Project now stands at 184.1 Mt, which includes the following: • 52.7 Mt @ 13.3% HM – Koroura Island (Indicated) • 25.3 Mt @ 11.6% HM – Sigatoka River (Indicated) • 5.9 Mt @ 10.7% HM – Sigatoka River (Inferred) • 100.2 Mt @ 17.2% HM – onshore Kulukulu (Inferred) 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. 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 typical distribution of the sand and gravel tested during drilling. 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. Figure 4 – Geological cross section central Koroua Island showing typical thickness and continuity of the sand and gravel deposit 8 Dome Gold Mines Ltd and its controlled entities Directors’ Report Kulukulu Resource Update Drilling Program Dome has this year completed a sonic drilling program on the Kulukulu area extending westward from the mouth of the Sigatoka River (see Figures 3 & 5). This program commenced on 10 September 2019 and was completed on 3 April 2020. That period included a suspension of drilling for about two months over the peak of the wet season. The drilling consisted of 55 holes for a total advance of 1441.7 m (see Figure 4). A topographic aerial drone survey was flown in the last quarter of 2019 over the Sigatoka resource areas. The digital deliverables from this survey were supplied to Dome in the first quarter of 2020. This aerial drone survey has provided Dome with a very detailed elevation map across the main resource areas within SPL 1495, accurate to within 5 cm. This new dataset will allow precise JORC 2012 resource modelling work to be completed in the coming months as analytical results are received from the laboratory. An aerial image over the drone survey area is included as Figure 3. Figure 5 – Aerial image of the southern Kulukulu area showing recently completed sonic drill holes The 2019-2020 sonic drilling program was conducted on a 70 m x 140 m grid and focused on the southern part of the Inferred Kulukulu Resource (see Figures 3 & 5). This area was targeted by Dome as it appears to contain higher grade heavy mineral mineralisation and will most likely dictate the starting point for sand mining, pursuant to the recommendations of the Definitive Feasibility Study (“DFS”). Sonic drill core samples from the recent drill program have been sent to assay laboratories in Perth, Brisbane and Vancouver and when all data is compiled will be used to update the current JORC 2012 resource status of the area. Initial observations from the recent drilling, combined with results from earlier reconnaissance drilling by Dome at Kulukulu, indicate that the southern Kulukulu area contains abundant sand which is both thick (greater than 30 m) and indicatively rich in magnetite. It therefore will represent an ideal starting point for mining, especially if the present expectation of using IHC-branded TT sand pumps, instead of dredges, receives full endorsement in the final DFS report. 9 Dome Gold Mines Ltd and its controlled entities Directors’ Report Sigatoka Project Definitive Feasibility Study Update 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 riverbed, 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) 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. 10 Dome Gold Mines Ltd and its controlled entities Directors’ Report Plate 1 – Spirals used to separate heavy minerals from bulk sand samples, during metallurgical testing at IHC Robbins metallurgical facility in Brisbane. Plate 2 – Darker heavy minerals (including magnetite) are concentrated toward the centre of the spirals, where they are separated for recovery. 11 Dome Gold Mines Ltd and its controlled entities Directors’ Report 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. 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. 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 June 25, 2020. • 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. 12 Dome Gold Mines Ltd and its controlled entities Directors’ Report Figure 6 – Naqara East and West Prospects on Ono Island showing the extent of hydrothermal alteration, pole-diploe Induced Polarisation (IP) survey lines and nominal drill sites Prior to undertaking exploration diamond drilling, an offset pole-dipole IP survey involving 4 arrays, 2 over each prospect (see Figure 6) 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. Receiver electrodes were placed at 100m intervals along the two survey lines either side of the transmitter line (34 points). Figures 7 & 8 – 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. 13 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 7 & 8 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 locations of intense argillic alteration and zones of silicification and anomalous geochemistry. 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 Company completed an initial diamond drilling program 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. A drill hole location map is included as Figure 9. Table 1 presents the GPS collar co- ordinates and other relevant details for each hole completed in the program. Figure 9 – Exploration drill hole location map of the Naqara East and Naqara West prospects The drilling was problematical at times due to the high degree of fracturing and hydrothermal clay alteration causing some holes to collapse. Cementing was carried out, in order to secure the holes in areas of poor ground conditions and thus reach deeper levels. 14 Dome Gold Mines Ltd and its controlled entities Directors’ Report Hole Site ONODDH001 ONODDH002 ONODDH002A C E E Collar East WGS84 658082 Collar Nth WGS84 7911718 658343 7911380 658345 7911382 Collar RL (m) 175 218 218 ONODDH003 E Alt 658270 7911359 182 ONODDH004 ONODDH005 ONODDH006 ONODDH007 TOTAL G B A F 656695 7911979 48 656121 7911774 163 656127 7911777 160 657444 7911679 35 Azimuth (Mag) Azimuth (Grid) Dip Depth (m) Total Samples 57 237 237 347 237 257 77 77 70 250 250 -60 431.55 215 -65 131.6 -66 117.5 0 11 0 -90 548.8 169 250 270 90 90 -60 350.5 -60 151.1 -70 251.3 -70 293.7 2276.1 59 58 69 159 740 Table 1 – Details of exploration diamond drill holes completed on Ono Island Holes were designed to test the strongest IP chargeability anomalies at depth (see Figure 10). These IP chargeability anomalies lie directly below IP resistivity anomalies (see Figure 11). Drill hole ONODDH001 returned wide zones of clay-magnetite alteration with zones of sulphide mineralisation up to 5% in places (dominantly pyrite) within the host andesitic volcanic rocks. Drill hole ONODDH007 also returned zones of clay alteration within andesitic host rocks, with zones of stronger sulphide mineralisation up to 7% in places (dominantly pyrite). Figure 10 – 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. 15 Dome Gold Mines Ltd and its controlled entities Directors’ Report Figure 11 – IP resistivity cross-section, section showing the trace of drill holes ONODDH001 and 7. A photo below in Plate 4 shows typical sulphide-bearing rock in drill core from ONODDH007 (from 225.7m 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. Plate 4 – Altered and mineralized volcanic host rock with up to 7% metallic sulphide in drill hole ONODDH007, HQ core from 225.7 m depth - Ono Island Project, Fiji 16 Dome Gold Mines Ltd and its controlled entities Directors’ Report 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 Ono Island drill program. 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 sawmill 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 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 • SPL1452 was renewed on August 26, 2019 for a further 3-year period that will expire on August 25, 2022. • The tenement aera of 33,213ha is located on Fiji’s main island, Viti Levu and 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. 17 Dome Gold Mines Ltd and its controlled entities Directors’ Report • 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. • 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 12. Figure 12 - Map showing the location of SPL1452 and the Namoli-Wainivau prospects and its proximity to the large Namosi Cu-Au deposit majority owned and managed by Newcrest. 18 Dome Gold Mines Ltd and its controlled entities Directors’ Report 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 and map bush track access points. • Continued compilation of previous exploration data over Namoli and Wainivau, completed by Amoco, CRA and Placer Dome between 1974 and 1994. 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 anomaly targeting. An Amoco IP survey included 25 lines at 200m spacing over an area of approximately 3.5 square km. 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 1168m. The drilling returned anomalous copper mineralisation associated with sulphide mineralisation in most of the holes. Drill core assays were recorded up to 1740ppm Cu, with wide zones of low-grade copper in some holes (e.g. hole SFA-74-1 returned 48.2m @ 475ppm 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. 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 1.1g/t Au near Korolevu village (siliceous breccia gossanous float). Another 6 rock chip samples range from 0.1 to 0.32ppm 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 11ppb Au, and the highest-80# stream sediment assay was 58ppb Au. The highest Placer rock chip gold assay was 0.277g/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 Cu geochemical soil anomaly. Placer did not complete any further work after 1994. A field geological program to Namoli-Wainivau was conducted by Dome geologists. A total of 46 Stream Sediment Samples and 8 rock chip samples were collected over a period of 6 days. The stream sediment gold and copper plots are shown below on Figures 13 and 14 and they highlight the anomalous gold-copper in the area around Wainivau that 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. Rock chip samples collected by Dome around Wainivau-Namoli returned weakly anomalous copper assays up to 157ppm and gold assays up to 0.022g/t Au. The iron in these samples is significant (up to 14.5% Fe). This stream sediment data acquired by the Company are consistent with the historical copper-gold geochemical data from Amoco, CRA, and Placer therefore increasing confidence in the historical data. 19 Dome Gold Mines Ltd and its controlled entities Directors’ Report 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 geological targets. Dome’s own geochemical surveys using modern laboratories and analytical techniques verify the historical results. Figure 13 - Map showing the stream sediment copper assay results from Namoli-Wainivau prospect. 20 Dome Gold Mines Ltd and its controlled entities Directors’ Report Figure 14 - Map showing the stream sediment gold assay results from Namoli-Wainivau prospect. 21 Dome Gold Mines Ltd and its controlled entities Directors’ Report Implications of Covid-19 Pandemic The pandemic has severely affected international travel and the normal course of business activity world-wide has been interrupted. In contrast to parts of Australia, where Dome is based, Fiji managed to control the outbreak reasonably well, with relatively low numbers of people becoming infected in Fiji. Dome was able to complete the resource drilling at Sigatoka by early April and delivered the drill samples to the laboratory very quickly. The only field activity remaining for the short to medium term is the collection of a bulk sample at Sigatoka for dispatch to the Australian mineral processing laboratory where it will be used in the continuing Definitive Feasibility Study (DFS). This activity will not require anyone to travel to Fiji from Australia as the local staff can manage the process. The rest of 2020-21 will be focused on continuation of the DFS including final upgrade (currently underway) of the JORC 2012 mineral resource estimate. This work, will essentially be office-based and can proceed despite general pandemic restrictions. As the DFS nears completion some travel may become necessary, but we expect that by then the current travel restrictions will have been eased. Dome is fortunate its program has progressed to the point where it can proceed to completion of the DFS this financial year, despite the COVID-19 crisis. This can be accomplished without a major delay or time loss for development of the Sigatoka project. In Sydney and Fiji, the Company is observing all the recommended protocols, including suspension of all international and domestic travel. In Sydney office, Dome has been restricting the number of staff working in office with the rest of staff working from home, maintaining the required social distancing rules and practicing rigid hygiene procedures. While in Fiji, the Company stood down most staff from mid-April with only one staff member working in office running daily administration and accounts matters, other staff can be called on casual basis whenever required during the Pandemic period. The active operations are currently on hold in Fiji, Dome will resume normal course of business as soon as the restrictions are lifted. 22 Dome Gold Mines Ltd and its controlled entities Mineral Resources Statement – Attachment A This 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 11 October 2014 and update announced to the market in ASX releases dated 11 December 2019. Resource comparison 2019 to 2020 There has been an increase due to further drilling and no reduction in the resource estimate during the reporting period. 23 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 11 December 2019 and 24 July 2020, 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 report that relates to Mineral Resources is based on information compiled by Mr Richard Stockwell, a Competent Person who is a fellow of the Australian Institute of Geoscientists, and Mr Gavin Helgeland, a Competent Person who is a member of the Australian Institute of Geoscientists. Mr Stockwell is Managing Director of Placer Consulting Pty Ltd and Mr Helgeland is a specialised resource geologist who is a self- employed consultant working with Placer Consulting. 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 Stockwell and Mr Helgeland consent to the inclusion in the 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 and Matthew J White. Mr McCarthy is a Consulting Geologist of the Company 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. Dr Matthew White is a Consulting Geologist of the Company who has over twenty-five years’ global experience working in the mineral resources industry. He has worked for multi-national mining companies and junior explorers, as well as private organisations and consultancy groups. His experience spans project generation, exploration program design, exploration management, resource estimation and feasibility studies. Matthew’s technical and management experience covers a range of commodities, in Australia and the Asia-Pacific region. He has worked in previous roles as Chief Executive Officer, Exploration Manager, Chief Geologist and Consultant Geologist. He has extensive knowledge of the exploration process and modern exploration techniques (e.g. geochemical exploration, geophysical surveying, geological mapping, exploration drilling and resource modelling). Matthew has completed a PhD research project and is regarded as a specialist in volcanic terranes. Dr White currently runs his own consultancy company White Geoscience Pty Ltd, based in Brisbane, through which he gets his consulting fees paid. He is a Competent Person/Qualified Person for reporting of Exploration Results in several commodities, as per a range of international reporting standards, including the JORC (2012) Code. He is a member of the Australian Institute of Geoscientists (AIG), the Geological Society of Australia (GSA) and the Society of Economic Geology, USA (SEG). 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. 24 Dome Gold Mines Ltd and its controlled entities Directors’ Report Financial Results The loss of the Group for the financial year after providing for income tax amounted to $2,003,468 (2019: $1,770,486). The net asset position of the Group increased from $30,893,870 at 30 June 2019 to $31,500,329 at 30 June 2020. 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 2020 were as follows: Issue of share capital For the year ended 30 June 2020, Dome has raised $3,037,591 by private placements. The funds were used for exploration, general working capital and loan repayment. Details of these raisings are as follows: • 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. • On 01 November 2019 the Company completed a placement of 2,659,853 fully paid ordinary shares at $0.20 per share to raise $531,971. • On 10 December 2019 the Company completed a placement of 500,000 fully paid ordinary shares at $0.20 per share to raise $100,000. • On 19 December 2019 the Company completed a placement of 578,102 fully paid ordinary shares at $0.20 per share to raise $115,620. • On 31 January 2020 the Company completed a placement of 500,000 fully paid ordinary shares at $0.20 per share to raise $100,000. • On 31 March 2020 the Company completed a placement of 1,200,000 fully paid ordinary shares at $0.20 per share to raise $240,000. DIVIDENDS No dividends were declared or paid during the financial year (2019: $nil). EVENTS ARISING SINCE THE END OF THE REPORTING PERIOD Subsequent to the end of the financial year: Issue of share capital and options • On 24 July 2020 the Company completed a placement of 3,150,000 fully paid ordinary shares at $0.17 per share to raise $535,500 and issued 3,150,000 unlisted options at $0.17 exercise price expiring on 23 July 2023. Expiration of unlisted options • On 27 July 2020 the Company advised that 1,500,000 unquoted options granted to directors on 24 November 2017 expired unexercised. SPL 1495 Sigatoka Iron Sand Project Due to Covid-19 Pandemic and restrictions of international travel, the Company stood down most staff in Fiji until January 2021 with only one staff working in Fiji office running accounts and administration matters. Other staff can be called to work on casual basis when required. While in Australia, the Company continued to carry out laboratory analysis work for a new mineral resource estimate. The following work was underway subsequent to the end of the period: • Submission of density test work samples for Sigatoka River, Koroua Island and pending for Club Masa (Kulukulu South) • Continuation of resource estimation at Club Masa • Completion of resource estimates and report proposed by end of September 25 Dome Gold Mines Ltd and its controlled entities Directors’ Report SPL 1451 Ono Island Project • The SPL expired on 12 February 2020 and the Company submitted a renewal application on 17 February 2020. SPL 1451 was renewed for a further 3-year period on 10 July 2020 from 25 June 2020 to 24 June 2023. 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. 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 4 4 4 Attended 4 4 4 Entitled to attend 2 - 2 Attended 2 - 2 UNISSUED SHARES UNDER OPTION Unissued ordinary shares of Dome under option as at 30 June 2020 were as follows: Number of options * 750,000 * 750,000 * 500,000 * 500,000 2,015,630 1,074,806 1,250,000 375,000 1,250,000 9,725,000 3,457,807 400,000 650,000 960,000 Exercise price $ 0.40 $ 0.50 $ 0.40 $ 0.50 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 Expiry date 27 July 2020 27 July 2020 31 December 2020 31 December 2020 18 April 2021 4 June 2021 11 July 2021 24 July 2021 26 July 2021 16 August 2021 1 November 2021 10 December 2021 31 January 2022 31 March 2022 *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. 26 Dome Gold Mines Ltd and its controlled entities Directors’ Report 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. 27 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 executives. 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 only directors’ fees. 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 2020, 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 2020 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 ($) Share price ($) 2020 (0.70) - 2019 (0.65) - 2018 (0.66) - 2017 (0.67) - 2016 (0.66) - (2,003,468) 0.20 (1,770,486) 0.20 (1,704,321) 0.14 (1,596,892) 0.24 (1,496,956) 0.42 The Board considers that these indices do not have any impact on the Group’s performance. 28 Dome Gold Mines Ltd and its controlled entities Directors’ Report b. Details of the nature and amount of each major element of the remuneration of key management personnel of the Group are shown in the table below: Details of remuneration Key Management Personnel Remuneration Short term employee benefits Post-employment benefits Share-based payments Garry Lowder (Chairman) Tadao Tsubata (Director) Sarah Harvey (Director) John (Jack) McCarthy (CEO)* 2020 Total 2019 Total Year 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Cash salary and fees $ Other fees $ 69,406 47,004 46,000 36,000 46,000 36,000 - 192,945 161,406 311,949 - - - - - - - - - - Accrued fees $ 16,000 - 10,000 - 10,000 - - - 36,000 - Superannuation $ 6,594 24,996 - - - - - 25,000 6,594 49,996 Fair value of options $ - - - - - - - - - - Total $ 92,000 72,000 56,000 36,000 56,000 36,000 - 217,945 204,000 361,945 Proportion of remuneration performance related % Value of options as a proportion of remuneration % - - - - - - - - - - - - - - - - - - - - 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 2020. *John McCarthy retired as CEO from 31 May 2019 and has worked as a consultant during the year ended 30 June 2020 29 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 2020. No terms of equity-settled share-based payment transactions have been altered or modified by the issuing entity during the 2020 financial year. d. Other information Options held by key management personnel The number of options to acquire shares in the Company during the 2020 reporting period held by each of the Group’s Key Management Personnel of the Group, including their related parties, is set out below. YEAR ENDED 30 JUNE 2020 Balance at start of year Granted as remuneration Received on exercise Other changes Held at the end of reporting period Garry Lowder Tadao Tsubata Sarah Harvey 500,000 500,000 500,000 - - - - - - - - - 500,000 500,000 500,000 Shares held by key management personnel The number of ordinary shares in the Company during the 2020 reporting period held by each of the Group’s Key Management Personnel of the Group, including their related parties, is set out below. YEAR ENDED 30 JUNE 2020 Balance at start of year Granted as remuneration Received on exercise Other changes Held at the end of reporting period Garry Lowder Tadao Tsubata Sarah Harvey 570,000 52,342,393 20,776,449 - - - - - - - 570,000 - 52,342,393 - 20,776,449 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. End of audited remuneration report. 30 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. 31 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 33 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, 24 September 2020 32 Level 17, 383 Kent Street Sydney NSW 2000 Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230 T +61 2 8297 2400 F +61 2 9299 4445 E info.nsw@au.gt.com W www.grantthornton.com.au Auditor’s Independence Declaration To the Directors of Dome Gold Mines Limited In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Dome Gold Mines Limited for the year ended 30 June 2020, 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 C F Farley Partner – Audit & Assurance Sydney, 24 September 2020 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. 33 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 2020 is dated as at 30 June 2020 and was approved by the Board on 24 September 2020. 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. 34 Dome Gold Mines Ltd and its controlled entities Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2020 Other income Employee benefits expenses (including directors fees) Other expenses Operating loss Depreciation Finance costs Loss on foreign exchange Loss before income tax expense Income tax expense Loss for the year Notes 2020 $ 2019 $ 4 5 6 7 55,039 5,314 (658,656) (1,049,346) (1,652,963) (249,202) (100,997) (306) (2,003,468) (579,294) (1,158,750) (1,732,730) (10,688) (27,068) - (1,770,486) - (2,003,468) - (1,770,486) Other comprehensive income for the year Items that may be reclassified subsequently to profit or loss: Exchange difference on translating foreign controlled entities 8,085 151,258 Total comprehensive loss for the year (1,995,383) (1,619,228) Earnings per share Basic and diluted loss per share (cents per share) 8 (0.70) (0.65) The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 35 Dome Gold Mines Ltd and its controlled entities Consolidated Statement of Financial Position as at 30 June 2020 CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Right-of-use assets Capitalised exploration and evaluation expenditure Other assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Lease liabilities Trade and other payables Provisions Borrowings TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Notes 9 10 11 12 13 14 11 13 15 16 2020 $ 13,642 21,770 35,797 71,209 2019 $ 19,809 22,663 36,787 79,259 95,838 148,776 171,464 - 32,585,436 31,705,357 262,821 263,242 33,092,871 32,140,063 33,164,080 32,219,322 209,055 283,281 32,765 - 525,101 - 261,429 18,102 50,452 329,983 Borrowings 16 1,138,650 995,469 TOTAL NON-CURRENT LIABILITIES 1,138,650 995,469 TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Foreign currency translation reserve Share option reserve Accumulated losses TOTAL EQUITY 1,663,751 1,325,452 31,500,329 30,893,870 17 45,980,034 43,378,192 364,934 103,439 356,849 103,439 (14,948,078) (12,944,610) 31,500,329 30,893,870 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. 36 Dome Gold Mines Ltd and its controlled entities Consolidated Statement of Changes in Equity for the year ended 30 June 2020 Foreign currency translation reserves $ Share option reserve $ Issued capital $ Accumulated losses $ Total equity $ 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 Balance at 1 July 2019 43,378,192 356,849 103,439 (12,944,610) 30,893,870 Transaction with owners Ordinary shares issued 3,037,591 Transaction costs on issue of shares (435,749) Total transactions with owners 2,601,842 Other comprehensive income Loss for the year Total comprehensive loss for the year - - - - - - 8,085 - 8,085 - - - - - - - - - - 3,037,591 (435,749) 2,601,842 8,085 (2,003,468) (2,003,468) (2,003,468) (1,995,383) Balance at 30 June 2020 45,980,034 364,934 103,439 (14,948,078) 31,500,329 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 37 Dome Gold Mines Ltd and its controlled entities Consolidated Statement of Cash Flows for the year ended 30 June 2020 CASH FLOWS FROM OPERATING ACTIVITIES Interest received Cash received from government grant / other income Cash paid to suppliers and employees Interest paid Other tax (paid)/received Notes 2020 $ 4,874 50,000 2019 $ 4,988 740 (1,634,458) (1,583,603) (72,295) (31,587) - 26,229 Net cash used in operating activities 18 (1,683,466) (1,551,646) 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 (1,461) 3,173 (19,875) (781,958) (800,121) (160,655) 114,543 (24,831) (1,281,169) (1,352,112) Proceeds from issue of share capital 3,037,591 1,507,404 Proceeds from borrowings Repayment of lease liabilities Repayment of borrowings Cash paid on share issue costs Net cash provided by financing activities 130,000 (184,930) (26,438) (478,839) 2,477,384 600,000 (53,708) - (135,278) 1,918,418 Net decrease in cash and cash equivalents (6,203) (985,340) Cash and cash equivalents at the beginning of the financial year Exchange differences on cash and cash equivalents 19,809 1,004,930 36 219 Cash and cash equivalents at the end of the financial year 9 13,642 19,809 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. 38 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 2020 were approved and authorised for issue by the board of directors on 24 September 2020 (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 or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. The following Accounting Standards and Interpretations adopted during the year are most relevant to the consolidated entity: Interpretation 23 Uncertainty over Income Tax The Group has adopted Interpretation 23 from 1 July 2019. The interpretation clarifies how to apply the recognition and measurement requirements of AASB 112 ‘Income Taxes’ in circumstances where uncertain tax treatments exists. The interpretation requires: the consolidated entity to determine whether each uncertain tax treatment should be treated separately or together, based on which approach better predicts the resolution of the uncertainty; the consolidated entity to consider whether it is probable that a taxation authority will accept an uncertain tax treatment; and if the consolidated entity concludes that it is not probable that the taxation authority will accept an uncertain tax treatment, it shall reflect the effect of uncertainty in determining the related taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates, measuring the tax uncertainty based on either the most likely amount or the expected value. In making the assessment it is assumed that a taxation authority will examine amounts it has a right to examine and have full knowledge of all related information when making those examinations. Interpretation 23 was adopted using the modified retrospective approach and as such comparatives have not been restated. There was no impact of adoption on the opening accumulated losses as at 1 July 2019. 39 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 16 Leases The Group has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117 'Leases' and for lessees eliminates the classifications of operating leases and finance leases. Except for short-term leases and leases of low-value assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in operating costs) and an interest expense on the recognised lease liabilities (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 improve as the operating expense is now replaced by interest expense and depreciation in profit or loss. For classification within the statement of cash flows, the interest portion is disclosed in operating activities and the principal portion of the lease payments are separately disclosed in financing activities. For lessor accounting, the standard does not substantially change how a lessor accounts for leases. 2.2 Impact of adoption AASB 16 was adopted using the modified retrospective approach and as such the comparatives have not been restated. The impact of adoption on opening accumulated losses as at 1 July 2019 was as follows: 1 July 2019 $ Operating lease commitments as at 1 July 2019 (AASB 117) Operating lease commitments discount based on the weighted average incremental borrowing rate (AASB 16) Right-of-use assets (AASB 16) 459,924 (31,422) 428,502 Lease liabilities – current (AASB 16) Lease liabilities – non-current (AASB 16) De-recognition of lease prepayment as at 1 July 2019 Impact on opening accumulated losses as at 1 July 2019 (403,863) - (24,639) - The weighted average incremental borrowing rate applied to lease liabilities recognised under AASB 16 was 10%. There was no impact on accumulated losses upon adoption of AASB 16. When adopting AASB 16 from 1 July 2019, the group has applied the following practical expedients: applying a single discount rate to the portfolio of leases with reasonably similar characteristics; • accounting for leases with a remaining lease term of 12 months as at 1 July 2019 as short-term leases; • excluding any initial direct costs from the measurement of right-of-use assets; • using hindsight in determining the lease term when the contract contains options to extend or terminate • the lease; and not apply AASB 16 to contracts that were not previously identified as containing a lease. • 40 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES 3.1 Overall considerations The significant accounting policies that have been used in the preparation of these consolidated financial statements are summarised below. The consolidated financial statements have been prepared using the measurement bases specified by Australian Accounting Standards for each type of asset, liability, income and expense. The measurement bases are more fully described in the accounting policies below. 3.2 Basis of consolidation The Group financial statements consolidate those of the parent company and all of its subsidiary undertakings drawn up to 30 June 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. 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. 41 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.5 Foreign currency transactions and balances Functional and presentation currency The consolidated financial statements are presented in Australian dollars (AUD), which is also the functional currency of the parent company. Foreign currency transactions and balances Foreign currency transactions are translated into the functional currency of the respective Group entity, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the re-measurement of monetary items at period end exchange rates are recognised in profit or loss. Non-monetary items are not retranslated at period-end and are measured at historical cost (translated using the exchange rates at the date of the transactions), except for non-monetary items measured at fair value which are translated using the change rates at the date when fair value was determined. Foreign operations In the Group's financial statements, all assets, liabilities and transactions of Group entities with a functional currency other than the AUD are translated into AUD upon consolidation. The functional currency of the entities in the Group has remained unchanged during the reporting period. On consolidation, assets and liabilities have been translated into AUD at the closing rate at the reporting date. Goodwill and fair value adjustments arising on the acquisition of a foreign entity have been treated as assets and liabilities of the foreign entity and translated into AUD at the closing rate. Income and expenses have been translated into AUD at the average rate over the reporting period. Exchange differences are charged/credited to other comprehensive income and recognised in the currency translation reserve in equity. On disposal of a foreign operation the cumulative translation differences recognised in equity are reclassified to profit or loss and recognised as part of the gain or loss on disposal. 3.6 Segment Reporting Determination and presentation of operating segments The Group determines and presents operating segments based on the information that is provided internally to the management. An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating segments’ operating results are regularly reviewed by the Group’s management to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. Segment results that are reported to the management include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company’s headquarter), head office expenses, and income tax assets and liabilities. Segment capital expenditure is the total costs incurred during the period to acquire property, plant and equipment, and intangible assets other than goodwill. 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. 42 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.7 Exploration and evaluation expenditure (Continued) Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either: • the expenditures are expected to be recouped through successful development and exploitation of the area of interest; or • activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active and significant operations in, or in relation to, the area of interest are continuing. Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and commercial viability and facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For the purposes of impairment testing, exploration and evaluation assets are allocated to cash generating units to which the exploration activity relates. The cash generating unit shall not be larger than the area of interest. Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then reclassified from exploration and evaluation expenditure to mining property and development assets within property, plant and equipment. 3.8 Property, plant and equipment Plant and equipment and computer equipment Plant and equipment (comprising fittings and furniture) and computer equipment are initially recognised at acquisition cost or manufacturing cost, including any costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by the Group’s management. Plant and equipment and computer equipment are measured on the cost basis less subsequent depreciation and impairment losses. Depreciation The depreciable amount of all fixed assets is recognised on a straight-line basis to write down the cost over the assets' estimated useful lives to the Group commencing from the time the asset is ready for use. The depreciation rates and useful lives used for each class of depreciable assets are: Class of fixed asset Useful Lives Depreciation basis Exploration computer equipment 2.5-4.2 years Prime cost Exploration furniture and fittings 3-8.3 years Exploration plant and equipment 2.5-8.3 years Office equipment 2-20 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. 43 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.9 Income tax The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: • When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or • When the taxable temporary difference is associated with interests in subsidiaries and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. 3.10 Revenue Revenue from contracts with customers 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. Interest Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset. 44 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.11 Government grants Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised against the asset released to profit or loss over the expected useful life of the related asset as a reduced depreciation charge. 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. 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. 45 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) 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. 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. 46 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) 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. 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) Coronavirus (COVID-19) pandemic Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the Group based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the Group operates. The potential impact has been detailed on page 22 of Directors’ Report. (ii) Income tax The Group is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The Group recognises liabilities for anticipated tax audit issues based on the Group's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made. 47 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 (Continued) (iii) Exploration and evaluation expenditure (Note 14) All capitalised exploration and evaluation expenditure ($32,585,436 at 30 June 2020) (2019: $31,705,357) has been capitalised on the basis that: • acquisition of rights to explore; or topographical or geological costs; or drilling and/or trenching; or sampling and assaying; or feasibility studies; or Indirect costs associated with above mentioned costs Expenditure relates to: - - - - - - 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. • • • (iv) 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 $2,003,468 (2019: $1,770,486), used $2,465,424 (2019: $2,832,815) of net cash in operations including payments for exploration during the year ended 30 June 2020, and has a cash balance of $13,642 at 30 June 2020 (2019: $19,809), and current liabilities exceed current assets by $453,892 (2019: $250,724). However, subsequent to 30 June 2020, the Group has received $535,500 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. 48 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. 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. 49 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) 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 Right-of-use assets A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. 3.21 Lease liabilities A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. 3.22 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). 50 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 3 SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 3.22 Share-based payments (Continued) 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 Government grant – cash boost Other Total other income 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 Interest for lease 2020 $ 5,039 50,000 - 55,039 2020 $ 704,237 - 222,489 122,620 1,049,346 63,535 12,078 25,384 100,997 2019 $ 5,074 - 240 5,314 2019 $ 662,536 240 338,399 157,575 1,158,750 25,102 1,966 - 27,068 51 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 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% (2019: 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 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 - - - - - - (2,003,468) (1,770,486) (550,954) (486,884) 10,354 489,754 49,511 1,335 - 21,306 449,939 14,306 1,333 - 3,607,942 6,287 (1,111,559) 2,502,670 2,397,224 3,127,878 720,025 (2,185,055) 1,662,848 2020 $ 2019 $ (2,003,468) (1,770,486) No of Shares Weighted average number of shares at the end of the year used in basic and diluted loss per share 287,980,571 271,577,741 Basic and diluted loss per share (cents) (0.70) (0.65) As the Group is loss making, none of the potentially dilutive securities are currently dilutive. 52 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 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 trade and other receivables 11 OTHER ASSETS Current Prepayments Total other current assets Non-current Bank guarantee deposit (refer to note below) Bond deposit (refer to note below) Other capital costs Total other non-current assets 13,642 13,642 27 21,743 21,770 35,797 35,797 159,874 102,084 863 262,821 19,809 19,809 1,171 21,492 22,663 36,787 36,787 159,874 102,509 859 263,242 Bank guarantee and bond deposits are held in Banks as security against tenements held by the Group. These are restricted until exploration licenses are relinquished or transferred to a separate license. 53 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 2020 $ 6,373 (3,965) 2,408 14,669 (11,857) 2,812 514,513 (454,644) 59,869 63,571 (32,822) 30,749 95,838 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 54 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 12 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) 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 Total $ $ 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 45,141 20,455 (4,387) - 546,159 24,830 (7,435) 16,847 61,209 580,401 (286,947) (15,324) (313,081) (78,818) (10,688) (93,214) - (9,483) 4,148 - 7,196 (9,838) (375,248) (21,864) (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 Exploration computer equipment $ Exploration furniture and fittings $ Exploration plant and equipment $ Office equipment Total $ $ Gross carrying amount Balance at 1 July 2019 Additions Disposals Net exchange difference 6,350 14,384 498,458 61,209 580,401 - - 23 216 - 69 16,665 (2,936) 2,326 2,994 (632) - 19,875 (3,568) 2,418 Balance at 30 June 2020 6,373 14,669 514,513 63,571 599,126 Depreciation and impairment Balance at 1 July 2019 Depreciation Disposals Net exchange difference (1,880) (2,081) - (4) (9,945) (1,865) - (47) (375,248) (21,864) (408,937) (80,019) (11,590) (95,555) 2,359 (1,736) 632 2,991 - (1,787) Balance at 30 June 2020 (3,965) (11,857) (454,644) (32,822) (503,288) Carrying amount as at 30 June 2020 2,408 2,812 59,869 30,749 95,838 55 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 13 LEASES The Group has operating lease commitments of 3 motor vehicles in Fiji and office leases in both Fiji and Australia. Each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. The table below describes the nature of the Group’s leasing activities by type of right-to-use assets recognised on the balance sheet. Right-of-use assets Range of remaining term No of right- of-use assets leased Average remaining lease term No of leases with extension options No of leases with options to purchase No of leases with termination options No of leases with variable payments linked to an index Office 2 4-7 months 6 months Motor vehicles 1 3 months 3 months - - - - - - - - Right-of-use Assets the amount of the initial measurement of lease liability Right-of-use assets are measured at cost comprising the following: • • any lease payments made at or before the commencement date less any lease incentives received • any initial direct costs, and • restoration costs. Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. Right-of-use assets are presented in the statement of financial position as follows: Non-current assets Right-of-use assets Less: Accumulated depreciation Consolidated 2020 $ 2019 $ 428,502 (279,726) 148,776 - - - As at the reporting date, the consolidated entity has two leased office premises and one motor vehicle under operating leases expiring in one year, with in certain instances options to extend. On renewal, the terms of the lease are renegotiated. 56 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 13 LEASES (CONTINUED) Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Consolidated Balance at 30 June 2019 Adoption of AASB 16 on 1 July 2019 (refer note 2.2) Adjustment of Operating lease commitments discount Other adjustment of depreciation capitalised Depreciation expense Balance at 30 June 2020 $ - 459,924 (31,422) (42,114) (237,612) 148,776 30 June 2020 $ 30 June 2019 $ 146,214 2,562 148,776 - - - Right-of-use assets Office Motor vehicles Total right-of-use assets Lease Liabilities Lease liabilities include the net present value of the following lease payments: • • variable lease payment that are based on an index or a rate, initially measured using the index or rate fixed payments (including in-substance fixed payments), less any lease incentives receivable; as at the commencement date; • amounts expected to be payable by the Group under residual value guarantees; the exercise price of a purchase option if the group is reasonably certain to exercise that option; and • • payments of penalties for terminating the lease, if the lease term reflects the group exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the entity’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. To determine the incremental borrowing rate, the Group uses recent arm's length borrowing rate received as a starting point, adjusted to reflect changes in financing conditions since borrowing was received, making adjustments specific to the lease (e.g. term, country, currency and security). Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. 57 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 13 LEASES (CONTINUED) Lease liabilities are presented in the statement of financial position as follows: Current Non-current Total lease liabilities 209,055 - 209,055 - - - The lease liabilities are secured by the related underlying assets. Future minimum lease payments at 30 June 2020 were as follows: 30 June 2020 Lease payments Finance charges Net present value 30 June 2019 Lease payments Finance charges Net present value Minimum lease payments due Within one year $ 212,945 (3,890) 209,055 One to two years $ - - - - - - - - - Total $ 212,945 (3,890) 209,055 - - - Additional profit or loss and cash flow information Amounts recognised in the statement of profit or loss and other comprehensive income: Depreciation Interest expenses on lease Amounts recognised in the statement of cash flows: 30 June 2020 $ 237,612 25,384 30 June 2019 $ - - Repayment of lease liabilities Interest paid Amount recognised as part of exploration cost payments capitalised Total cash outflow in respect of leases in the year 184,930 25,384 54,926 265,240 - - - 58 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 14 CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE Balance at 1 July 2018 Expenditure capitalised during the year Balance at 30 June 2019 Balance at 1 July 2019 Expenditure capitalised during the year Balance at 30 June 2020 $ 30,264,494 1,440,863 31,705,357 31,705,357 880,079 32,585,436 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 2020. 15 TRADE AND OTHER PAYABLES Current Accruals Trade creditors Other payables Total trade and other payables 16 BORROWINGS Current Loan from related party Total borrowings Non-current Loan from third party Loan from related party Total borrowings 2020 $ 196,213 68,323 18,745 283,281 - - 377,133 761,517 1,138,650 2019 $ 186,089 41,274 34,066 261,429 50,452 50,452 421,028 574,441 995,469 The outstanding loan payable to a third party as at 30 June 2020 is $377,133 (2019: $421,028). 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 2020 is $122,867 (2019: $578,972). The facility was extended to 31 December 2021. 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 2020 is $113,441 (2019: $50,452). The agreed interest rate on this unsecured loan is 10%. The facility is not secured. The remaining facility with this related party available as at 30 June 2020 is $6,559 (2019: $Nil). The facility was increased to $120,000 and extended to 31 December 2021 during the reporting period. The outstanding loan payable to the second related party as at 30 June 2020 is $648,076 (2019: $574,441). The agreed interest rate on the unsecured loan is 10%. The facility is not secured. The remaining facility 59 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 16 BORROWINGS (CONTINUED) with the related party available as at 30 June 2020 is $51,924 (2019: $Nil). The facility was increased to $700,000 and extended to 31 December 2021 during the reporting period. There is no outstanding loan payable to the third related party as at 30 June 2020 (2019: $Nil) and the facility is available for use till 31 December 2021. The total facility of the Company with this related party is $3,500,000 as at 30 June 2020 (2019: $3,500,000). The agreed interest rate on the unsecured loan is 5%. The facility is not secured. 17 ISSUED CAPITAL 2020 2019 Ordinary shares fully paid 291,488,952 45,980,034 276,300,997 43,378,192 Shares $ Shares $ Movements in ordinary share capital Ordinary shares Balance at 1 July 2018 No. of shares $ 269,031,700 42,049,157 Fully paid ordinary shares issued 13 November 2018 at $0.20 597,443 119,489 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 Balance at 1 July 2019 Fully paid ordinary shares issued 11 July 2019 at $0.20 Fully paid ordinary shares issued 24 July 2019 at $0.20 551,231 2,834,651 1,211,166 1,074,806 1,000,000 - 121,271 609,450 242,233 214,961 200,000 (178,369) 276,300,997 43,378,192 276,300,997 43,378,192 2,500,000 750,000 500,000 150,000 Fully paid ordinary shares issued 16 August 2019 at $0.20 6,500,000 1,300,000 Fully paid ordinary shares issued 1 November 2019 at $0.20 2,659,853 Fully paid ordinary shares issued 10 December 2019 at $0.20 Fully paid ordinary shares issued 19 December 2019 at $0.20 Fully paid ordinary shares issued 31 January 2020 at $0.20 500,000 578,102 500,000 Fully paid ordinary shares issued 31 March 2020 at $0.20 1,200,000 531,971 100,000 115,620 100,000 240,000 Less costs of issue Balance at 30 June 2020 - (435,749) 291,488,952 45,980,034 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. 60 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 18 CASH FLOW INFORMATION Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows: Reconciliation of cash Cash and cash equivalents Reconciliation of cash flow from operations with loss from ordinary activities after income tax Loss from ordinary activities after income tax Non-cash flows in loss from ordinary activities Depreciation and amortisation Loss on sale of property, plant & equipment Changes in other assets and liabilities Increase in trade receivables and other assets Increase in trade and other payables 2020 $ 2019 $ 13,642 19,809 (2,003,468) (1,770,486) 249,202 - (2,282) (251) 73,333 10,688 240 25,210 130,839 51,863 Net cash used in operating activities (1,683,466) (1,551,646) 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 61,500 61,500 60,500 60,500 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 624,893 120,000 (46,912) - 63,536 761,517 - 600,000 (209) - 25,102 624,893 The agreed interest on the loans is 10%. The loans are unsecured. An amount of $113,441 is provided by a member of key management personnel and the remaining $648,076 is provided by a Company wherein a member of key management personnel is a director. Amounts are repayable in full by 31 December 2021 respectively. 61 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 2020 $ 161,406 161,406 6,594 6,594 - 2019 $ 311,949 311,949 49,996 49,996 - Total remuneration 168,000 361,945 There are no other related party transactions during the year ended 30 June 2020. 21 CONTINGENCIES AND COMMITMENTS Minimum tenement expenditure requirements Within one year Between one to five years Total 2020 $ 1,135,556 2,236,005 3,371,561 2019 $ 361,326 3,131,150 3,492,476 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 Commitments 2020 $ 101,126 50,563 151,689 2019 $ - 33,548 33,548 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 under this arrangement is capped at $3 million and the Group has the ability to terminate the agreement 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. Pursuant to terms of the agreement with IHC Robbins the DFS work was suspended after the first stage of the study, which included commencement of test work, options assessment and reporting, at a cost of $500,000, which has been paid. The DFS has not yet resumed and there is no further commitment until it does. 62 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 21 CONTINGENCIES AND COMMITMENTS (CONTINUED) Guarantees The Group has a bank guarantee of $159,874 (2019: $159,874), and bond deposits totalling $102,084 (2019: 102,509) as at 30 June 2020. There are no other contingent assets or liabilities as at the date of this financial report. 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 2020 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 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 30 June 2020 Segment revenue External revenue Finance income Total revenue Depreciation - 942 942 - - 703 703 50,000 3,394 53,394 50,000 5,039 55,039 - (249,202) (249,202) Segment profit/(loss) (10,161) (8,467) (1,984,840) (2,003,468) Segment assets 29,680,687 3,098,342 385,051 33,164,080 Segment liabilities 3,185,181 2,568,246 (4,089,676) 1,663,751 63 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 Prepayments Other loss before tax unallocated Consolidated loss before tax Assets Total assets for reportable segments Prepayments Intercompany eliminations Other corporate assets Consolidated assets Liabilities Total liabilities for reportable segments Prepayments Intercompany eliminations Other corporate liabilities Consolidated liabilities 23 PARENT ENTITY DISCLOSURES 2020 $ 2019 $ (18,628) (1,984,840) (2,003,468) 32,779,029 (6,055,931) 6,440,982 33,164,080 5,753,427 (6,055,931) 1,966,255 1,663,751 (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 As at and throughout the financial year ended 30 June 2020 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 2020 $ (1,984,374) 9,742 (1,974,632) 5,776,050 27,242,725 33,018,775 498,653 1,138,650 1,637,303 31,381,472 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 45,980,034 (14,845,634) 143,633 103,439 31,381,472 43,378,192 (12,860,559) 133,891 103,439 30,754,963 The Directors are of the opinion that no contingencies existed at, or subsequent to year end. 64 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 and options • On 24 July 2020 the Company completed a placement of 3,150,000 fully paid ordinary shares at $0.17 per share to raise $535,500 and issued 3,150,000 unlisted options at $0.17 exercise price expiring on 23 July 2023. Expiration of unlisted options • On 27 July 2020 the Company advised that 1,500,000 unquoted options granted to directors on 24 November 2017 expired unexercised. SPL 1495 Sigatoka Iron Sand Project Due to Covid-19 Pandemic and restrictions of international travel, the Company stood down most staff in Fiji until January 2021 with only one staff working in Fiji office running accounts and administration matters. Other staff can be called to work on casual basis when required. While in Australia, the Company continued to carry out laboratory analysis work for a new mineral resource estimate. The following work was underway subsequent to the end of the period: • Submission of density test work samples for Sigatoka River, Koroua Island and pending for Club Masa (Kulukulu South) • Continuation of resource estimation at Club Masa • Completion of resource estimates and report proposed by end of September SPL 1451 Ono Island Project • The SPL expired on 12 February 2020 and the Company submitted a renewal application on 17 February 2020. SPL 1451 was renewed for a further 3-year period on 10 July 2020 from 25 June 2020 to 24 June 2023. 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 Country of incorporation Company interest in ordinary shares 2020 % 100 100 100 2019 % 100 100 100 Fiji Australia Fiji 65 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 26 FINANCIAL INSTRUMENT RISK 26.1 Risk management objectives and policies The Group is exposed to various risks in relation to financial instruments. The Group's financial assets and liabilities by category are summarised in note 3.14. The main types of risks are market risk, credit risk and liquidity risk. The Group's risk management is coordinated by management, in close co-operation with the board of directors, and focuses on actively securing the Group's short to medium term cash flows by minimising the exposure to financial markets. The Group does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Group is exposed are described below. The Group is exposed to market risk through its use of financial instruments and specifically to currency risk and certain other price risks, which result from both its operating and investing activities. 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% (2019: 5%) then this would have had the following impact: 30 June 2020 30 June 2019 Profit for the year $ - - Equity $ 272,299 250,253 If the AUD had weakened against the FJD by 5% (2019: 5%) then this would have had the following impact: 30 June 2020 30 June 2019 Profit for the year $ - - Equity $ (272,299) (250,253) 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. 66 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) 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 2020, the Group is not exposed to changes in market interest rates through borrowings as all borrowings are at fixed interest rates. At 30 June 2020, the Group’s exposure to cash flow interest relates primarily to cash at bank of the Group which bears floating rates. The Group is considering investing surplus cash in long term deposits at fixed rates in the future. As at the end of the reporting period, the Group had the following floating financial instruments: 2020 Weighted average interest rate % Balance $ 2019 Weighted average interest rate % Balance $ Cash and cash equivalents 0 13,642 0 19,809 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). 2020 +0.5% $ -0.5% $ 2019 +0.5% $ -0.5% $ Profit/(loss) for the year 68 (68) 99 (99) 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 2020 $ 13,642 21,770 159,874 102,084 297,370 2019 $ 19,809 22,663 159,874 102,509 304,855 67 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 26 FINANCIAL INSTRUMENT RISK (CONTINUED) 26.3 Credit risk analysis (continued) 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. 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 2020 Carrying value Contractual amount Borrowings Trade and other payables Lease liability Total $ 1,138,650 316,046 209,055 1,663,751 Total Within one year $ - 316,046 209,055 525,101 $ 1,274,014 316,046 209,055 1,799,115 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 Between one to five years $ 1,274,015 - - 1,274,015 Between one to five years $ 1,079,880 - 1,079,880 68 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 27 CAPITAL RISK MANAGEMENT Our objective of capital risk management is to manage capital and safeguard our ability to continue as a going concern, and to generate returns for shareholders. The Group manages its risk exposure of its financial instruments in accordance with the guidance of the Board of Directors. The Group uses different methods to manage and minimise its exposure to risks. These include monitoring levels of interest rates fluctuations to maximise the return of bank balances and the flexing of the gearing ratios. Liquidity risk is monitored through the development of future rolling cash flow forecasts. The final approval and monitoring of any of these policies is done by the Board which review and agrees on the policies for managing risks. The primary responsibility to monitor the financial risks lies with the Directors and the Company Secretary under the authority of the Board. The Board approved policies for managing risks including the setting up of approval limits for purchases and monitoring projections of future cash flows. 28 SHARE BASED PAYMENT During the year ended 30 June 2020, no options were issued in exchange for goods or services provided. The Group had two share-based payment arrangements in previous years. 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 Outstanding at 1 July 2017 Granted Forfeited Exercised Expired Outstanding at 30 June 2018 Granted Forfeited Exercised Expired Outstanding at 30 June 2019 Granted Forfeited Exercised Expired Outstanding at 30 June 2020 Exercisable at 30 June 2018 Exercisable at 30 June 2019 Exercisable at 30 June 2020 Weighted average exercise price ($) - 0.45 - - - 0.45 - - - 0.45 - - - 0.45 0.45 0.45 0.45 Number of shares - 1,500,000 - - - 1,500,000 - - - 1,500,000 - - - 1,500,000 1,500,000 1,500,000 1,500,000 Weighted average exercise price ($) - 0.45 - - - 0.45 - - - 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 1,000,000 1,000,000 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. 69 Dome Gold Mines Ltd and its controlled entities Notes to the Consolidated Financial Statements 28 SHARE BASED PAYMENT (CONTINUED) 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 (2019: Nil) expense 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. 29 AUTHORISATION OF FINANCIAL STATEMENTS The consolidated financial statements for the year ended 30 June 2020 (including comparatives) were approved by the board of directors on 24 September 2020. 70 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 2020 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 2020. 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 24 September 2020 Sydney 71 Level 17, 383 Kent Street Sydney NSW 2000 Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230 T +61 2 8297 2400 F +61 2 9299 445 E info.nsw@au.gt.com W www.grantthornton.com.au Independent Auditor’s Report To the Members of Dome Gold Mines Limited Report on the audit of the financial report Opinion We have audited the financial report of Dome Gold Mines Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2020, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies, and the Directors’ declaration. In our opinion, the accompanying 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 2020 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. Material uncertainty related to going concern We draw attention to Note 3.16 in the financial statements, which indicates that the Group incurred a net loss of $2,003,468 during the year ended 30 June 2020, and as of that date, the Group’s current liabilities exceeded its current assets by $453,892. As stated in Note 3.16, these events or conditions, along with other matters as set forth in Note 3.16, indicate that a material uncertainty exists that may cast doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. 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. 72  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 How our audit addressed the key audit matter Exploration and evaluation assets - Notes 3.7 & 14 At 30 June 2020 the carrying value of exploration and evaluation assets was $32,585,436. In accordance with AASB 6 Exploration for and Evaluation of Mineral Resources, the Group 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. The process undertaken by management to assess whether there are any impairment triggers in each area of interest involves an element of management judgement. This area is a key audit matter due to the significant judgement involved in determining the existence of impairment triggers. Our procedures included, amongst others:     obtaining the management reconciliation of capitalised exploration and evaluation expenditure and agreeing to the general ledger; reviewing management’s area of interest considerations against AASB 6; testing a sample of expenditure capitalised by tracing to underlying support in order to understand the nature of the item and whether the expenditure was attributable to an area of interest, and therefore whether capitalisation was in accordance with the recognition criteria of AASB 6; conducting a detailed review of management’s assessment of trigger events prepared in accordance with AASB 6 including; – tracing projects to statutory registers, exploration licenses and third party confirmations to determine whether a right of tenure existed; – enquiring of management regarding their intentions to carry out exploration and evaluation activity in the relevant exploration area, including review of management’s 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; and  assessing the appropriateness of the related financial statement disclosures. 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 2020, 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. 73  Responsibilities of the Directors’ for the financial report The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.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 28 to 30 of the Directors’ report for the year ended 30 June 2020. In our opinion, the Remuneration Report of Dome Gold Mines Limited, for the year ended 30 June 2020 complies with section 300A of the Corporations Act 2001. Responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Grant Thornton Audit Pty Ltd Chartered Accountants C F Farley Partner – Audit & Assurance Sydney, 24 September 2020 74 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 2020. 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 The total distribution of fully paid shareholders and Optionholders as at 31 August 2020 was as follows: Type of security Ordinary shares Unlisted options Number of holders Number of securities 461 20 294,638,952 25,308,243 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 and unlisted optionholders 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 13 13 164 140 131 461 - - - - 20 20 75 Dome Gold Mines Ltd and its controlled entities ASX Additional Information LESS THAN MARKETABLE PARCELS On 31 August 2020, there were 22 holders of less than a marketable parcel of 2,703 ordinary shares. TWENTY LARGEST SHAREHOLDERS As at 31 August 2020, 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 Citicorp Nominees Pty Limited Mr Hwaeun Park Cybersys Inc Tiger Ten Investment Limited Primavera Thamadia Nominees Pty Ltd BNP Paribas Nominees Pty Ltd Mr Masayuki Kudo HSBC Custody Nominees (Australia) Limited Mr Katsuji Kato Mr Akio Miyashita Mr Zhengjian Xu Precious Tori Limited 9,610,759 9,167,152 8,743,512 8,000,000 7,292,393 5,000,000 5,000,000 4,159,416 3,973,976 3,687,979 3,682,720 3,589,163 3,544,782 3,375,639 % 15.27 10.18 6.71 3.56 3.39 3.39 3.26 3.11 2.97 2.72 2.48 1.70 1.70 1.41 1.35 1.25 1.25 1.22 1.20 1.15 TWENTY LARGEST OPTIONOLDERS As at 31 August 2020, there was one optionholder that held 20% or more of the unquoted options. Name Diana Development Ltd Unlisted Options Quantity % 7,832,955 30.95 76 Dome Gold Mines Ltd and its controlled entities ASX Additional Information ON MARKET BUY BACK There is no on market buy-back. ESCROWED SECURITIES As at 31 August 2020, there were no escrowed securities. TENEMENTS SCHEDULE Tenement Location Holder SPL 1451 Ono Island Dome Mines Pte Ltd Area (Ha) 3,028 Expiry Date 24/06/2023 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. 77 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 Bradfield & Scott Lawyers Level 1, 20 Hunter Street Sydney NSW 2000 78 DOME GOLD MINES LTD ABN 49 151 996 566 Suite 4, Level 21, 123 Pitt Street, Sydney NSW 2000 Australia GPO Box 1759 Sydney NSW 2001 Australia T +61 2 8203 5620 F +61 2 9012 0041 E info@domegoldmines.com.au W www.domegoldmines.com.au 

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