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
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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
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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.
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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.
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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.
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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:
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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Dome Gold Mines Ltd
and its controlled entities
Directors’ Report
Figure 14 - Map showing the stream sediment gold assay results from Namoli-Wainivau
prospect.
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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.
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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
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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.
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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