Annual Financial Report
for the financial year ended
30 June 2017
1
Financial
Report
Table of Contents
Directors’ Report
Corporate Governance Statement
Auditor’s Independence Declaration
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Auditor’s Report
ASX Additional Information
84 119 904 880
Level 6, 412 Collins Street Melbourne VIC 3000
ABN
Address
Telephone +61 2 6076 2336
Email
Website
info@dartmining.com.au
www.dartmining.com.au
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18
40
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43
2
Directors’ Report
The Directors of Dart Mining NL submit their report for the year ended
30 June 2017 and to the date of this report.
Operating and Financial Review
The year to 30 June 2017 has been a year of progress in several ongoing
corporate and operational areas.
Dart’s dispute with Aus. Industry moved forward with a substantial
reduction in the company’s potential liability in relation to R&D
concessions paid to the company over 2012 and 2013 financial years. The
company’s disputed amount has reduced to approximately $320 k from
circa $2m previously. Dart is in ongoing discussions in relation to this
issue.
Dart announced in February its acquisition of 50/50 joint-venture
tenements covering Gold and Lithium properties from Northern Mine
Ventures. Transfer of these joint-venture leases to Dart’s 100% benefit are
now subject to Ministerial approval and we hope to finalise this in
September or October 2017.
More Lithium prospective ground has been applied for EL006486 (Mt.
Creek), in and around our pre-existing leases. Leases EL006277 (Glen
Wills) and EL006300 (Eskdale) have now been officially granted. In
addition, EL5315 (Mitta) has been renewed for a further period.
The company has pursued exploration and development activities within its
three defined strategies – Lithium, Porphyries, Orogenic Gold. As
previously communicated, development focus in these areas is pointed
towards joint-venture arrangements, with suitable partners, who have
technical and financial capacity to progress each strategy. Joint-venture
discussions in relation to each of the strategies have been, and continue to
be, pursued with vigor.
Exploration work has continued, particularly on the Lithium tenements,
with encouraging identification of sizeable pegmatite dykes and the
positive identification of Spodumene mineralisation along with good
Lithium grades. To date we have only taken random rock-chip samples but
we anticipate more definitive and specific sampling over the months ahead.
Now that we have the granted EL’s 006277, and 006300 we are no longer
as constrained in our exploration activities.
The company’s administrative cost base has been reduced over the year
and we see little room for further productive expenditure cuts.
Commodity tailwinds in Lithium, Copper, and Gold are driven by both
demand and supply side factors. This is constructive and adds further
credence to the company’s valuable portfolio of prospective leases.
The year ahead, we hope, will bring progress at all levels and particularly
in the Lithium and Porphyry exploration areas.
The board sincerely thanks Dart’s shareholders for their continuing support
and encouragement and we trust that we can make a difference to the
company’s fortunes over the next 12 months.
Financial overview
Operating results for the year
The loss for the consolidated entity after income tax was $715,393 (2016:
loss $717,334). This result is consistent with expectations of costs
associated with the exploration and development programs budgeted
and undertaken that reflect:
• costs associated with managing the exploration program;
• reduced activity on research and development exploration
expenditure associated with the Polygonal Vortex Model; and
• corporate overheads associated with statutory and regulatory
requirements as a consequence of being listed on the Australian
Securities Exchange.
Review of financial position
At the end of the financial year, a proportion of the funds raised in prior
financial years were held by the Group as cash investments for use in
future financial periods. The Group strives to maximise the return on
these funds for exploration purposes by investing surplus funds and
minimising expenditure on corporate overheads.
Cash flows
The cash flows of the Group consist primarily of payments to suppliers and
employees used in advancing the Unicorn Project, together with payments
both for exploration activities on tenements held by the Group and the
maintenance of the corporate head office. Primarily, head office manages
existing projects as well as costs involved in investigating new exploration
opportunities.
Capital raising and capital structure
During the year under review, the Group raised $1,008,095 (net of capital
raising costs) through the issue of 111,461,335 ordinary shares (2016:
56,765,732 ordinary shares).
3
Directors’ Report
Information on Directors
The names and details of the Company’s Directors in office during the
financial year and until the date of this report are as follows. Directors
were in office for this entire period unless otherwise stated.
Names, qualifications, experience and special
responsibilities
James Chirnside Chairman / Managing Director
Appointed 18 June 2015
James Chirnside has been involved in financial and commodity markets over
a thirty---year period. Before studying at Edith Cowan University in Western
Australia James worked for Mt Newman Mining in the Pilbara as a
geologist’s assistant.
During the early part of his formal career he worked for global commodity
trading house Bunge where he traded in a range of food, fiber, steel and
metal commodities. James went on to run the overnight commodity---trading
desk in Melbourne for Bell Commodities where mining clients would hedge
metal production on the London Metal Exchange. James worked for
Investment Bank County NatWest in London where during the first gulf war
he traded crude oil for the firm. James then moved to Hong Kong with
Regent Pacific Group where he was responsible for resources investment
across Asia Pacific as well as the firm’s proprietary activities in base and
precious metals trading.
Since returning to Australia and establishing his own asset management
company in 2002, James has been involved in investment across the Asia
Pacific region.
In 1994 James’ Regent Pacific Hedge fund was ranked 1st in the world by
S&P Micropal for Emerging Market Funds.
In 2006 James was awarded 1st place in the Australian Hedge Fund awards
for best performing fund.
In 2008 James’ fund was ranked 1st place out of 495 funds investing across
the Asia Pacific region and returned 30% for investors that year.
Other current directorships of listed companies
Mercantile Investments Ltd
WAM Capital Ltd
Cadence Capital Ltd
Ask Funding Ltd
Former directorships of listed companies in the last three years
Murchison Metals Ltd
Luke Robinson Non-executive Director
Appointed 18 June 2015
Luke Robinson has worked in Financial Markets for 20 years with a number of
stockbroking and advisory firms including Phillip Capital and Citi Group.
Recently he has worked as an executive director of Melanesian Exploration, a
privately held company, where he was responsible for researching, identifying
and acquiring mainly petroleum assets in Papua New Guinea. Luke was a
senior client advisor with Philip Capital where he was responsible for advising
Institutional and Sophisticated individual investors in the Australian share
market. Luke’s main focus was in resources companies including mining and
energy where he originated and distributed capital raisings for small and mid-
sized companies. Luke holds a B. Sc. in Microbiology from the University of
Melbourne.
Other current directorships of listed companies
None.
Former directorships of listed companies in the last three years
None.
Russell Simpson Non-executive Director
Appointed 18 June 2015
Russell Simpson has been a successful Riverena Farmer, Merino breeder
and irrigator from two Murray River water irrigation schemes for over 40
years. Taking a keen interest in commodity markets, particularly
agricultural, gold and metals for the past 20 years, he has been an investor
in Dart Mining since 2008 and a substantial shareholder since 2009.
Other current directorships of listed companies
None.
Former directorships of listed companies in last three years
None.
Meredith Lyons Alternate Non-executive Director
Appointed 23 June 2015
Meredith was appointed as an alternate Director by Russell Simpson to act
on his behalf when he is not able to exercise his powers as a Director. Her
appointment will continue until Mr Simpson revokes it or ceases to be a
Director, whichever occurs first.
Other current directorships of listed companies
None.
Former directorships of listed companies in last three years
None.
Julie Edwards Company Secretary
Appointed 1 July 2015
Julie Edwards was appointed as the Chief Financial Officer of Dart on 8 July
2015. She has had over 20 years’ experience and involvement in the
management of accounting and finance functions. She holds a Bachelor of
Commerce degree, is a member of CPA Australia, holds a CPA Public
Practice Certificate and is a registered Tax Agent.
Other current directorships of listed companies
None.
Former directorships of listed companies in last three years
None.
4
Directors’ Report
Shareholdings of directors and other key
management personnel
The interests of each director and other key management personnel, directly
and indirectly, in the shares and options of Dart Mining NL at the date of
this report are as follows
Key management
personnel
Ordinary
shares
Incentive rights and
options over ordinary
shares(unlisted)
R M Simpson 32,386,795
J Chirnside
D G Turnbull
2,970,297
4,459,179
-
-
250,000
Corporate information
Corporate structure
Dart Mining NL is a no liability company limited by shares that is
incorporated and domiciled in Australia. Dart Mining NL has prepared a
consolidated financial report incorporating Dart Resources Pty Ltd, Mt
Unicorn Holdings Pty Ltd and Mt View Holdings Pty Ltd all of which
were controlled by the Company (comprising the Group) during the
financial year and are included in the financial statements.
Principal activities
Principal activities of the Dart Mining Group during the financial year
were to conduct a PFS of the development of its Unicorn Project,
containing molybdenum, copper and silver, and continue exploration for
base metals and gold in north-east Victoria whilst also evaluating
opportunities to expand its footprint to other regions of Australia and
abroad.
Employees
The Company had 5 employees as at 30 June 2017 (2016:
8 employees).
Dividend
No dividends in respect of the current financial year have been paid,
declared or recommended for payment.
Summary of shares and options on issue
At 30 June 2017, the Group has 411,485,049 ordinary shares and
1,250,000 unlisted options and incentive rights on issue. Details of the
options and incentive rights are as follows:
Number of
shares under
option
400,000
850,000
Class of
shares
Exercise price
(cents)
Expiry date
Ordinary
Ordinary
3
6
31 December 2017
31 December 2017
During the financial year, no incentive rights were granted to Key
Management Personnel of the Company:
Significant changes in state of affairs
There were no significant changes in the state of affairs of the Group during
the financial year.
Significant events after balance date
The Company has received from AusIndustry a Certificate of Finding in
relation to the Company’s R & D claims for the years 2011/12, 2012/13. The
Certificate of Finding sets out a preliminary view of AusIndustry that the full
amount of the Tax Offset is potentially repayable by the Company.
In response to the Certificate of Finding, the Company has submitted an
application for internal review by a new assessor at AusIndustry, and engaged
International Technology Group (ITG), a leading professional advisory firm
specialising in R & D matters, to assist it (refer Note 1(n) & Note 20).
On 11 September 2017 the Company announced that it will be undertaking a 1
for 2 Entitlements Issue at $0.005 per share to raise approximately $1.028
million. In addition, one free attaching option for every new share will be
issued, exercisable at one cent and expiring on 28 February 2019.
Future developments, prospects and business
strategies
The Board of Directors intends to continue with the exploration of the Group’s
tenements and focus on the Unicorn Project. Further details of the Group’s
prospects are included in the Exploration Report.
As the Group is listed on the Australian Securities Exchange, it is subject to the
continuous disclosure requirements of the ASX Listing Rules which require
immediate disclosure to the market of information that is likely to have a
material effect on the price or value of Dart Mining NL’s securities.
The Board of Directors believe they have been compliant with the continuous
disclosure requirements throughout the reporting period and to the date of this
report.
Environmental regulation
The economic entity holds participating interests in a number of exploration
tenements. The various authorities granting such tenements require the
tenement holder to comply with the terms of the grant of the tenement and all
directions given to it under those terms of the tenement. There have been no
known breaches of the tenement conditions and no such breaches have been
notified by any government agencies during either the year ended 30 June
2017 or at the date of this report.
Directors and committee meetings
The Board of Directors established the Audit and Risk Management
Committee on 9 May 2007. The charter for the Audit and Risk Management
Committee was adopted on 12 July 2007 (revised 17 June 2014). The
members of the Committee consist of James Chirnside, Luke Robinson and
Russell Simpson.
The Board of Directors established the Remuneration and Nomination
Committee on 5 December 2012. The charter for the Remuneration and
Nomination Committee was adopted on 19 February 2013 (revised on 17 June
2014). The members of the Committee consist of James Chirnside, Luke
Robinson and Russell Simpson.
The Board of Directors established the Technical Committee on 18 February
2014. The charter for the Technical Committee was adopted on 17 June 2014.
The members of the Committee consist of James Chirnside, Luke Robinson
and Russell Simpson.
5
Directors’ Report
The number of Directors and Committee meetings held during the year and the numbers of meetings attended by each Director and Committee member
were as follows:
Directors
J Chirnside
L Robinson
R Simpson
Directors
J Chirnside
L Robinson
R Simpson
Board of Directors
Audit and Risk Management Committee
Held
5
5
5
Entitled
to attend
5
5
5
Attended
Held
Entitled
to attend
Attended
5
5
5
2
2
2
2
2
2
2
2
2
Remuneration and Nomination Committee
Technical Committee
Held
1
1
1
Entitled to
attend
1
1
1
Attended
Held
Entitled to
attend
Attended
1
1
1
-
-
-
-
-
-
-
-
-
6
Directors’ Report
Indemnification and insurance of directors and
officers
The Company has entered into Deeds of Indemnity with the Directors and
Officers of the Company, indemnifying them against certain liabilities and
costs to the extent permitted by law.
The Company has also agreed to pay a premium in respect of a contract
insuring the directors and officers of the Company. Full details of the cover
and premium are not disclosed as the insurance policy prohibits the
disclosure.
Proceedings on behalf of the Company
No persons have applied for leave of a Court to bring proceedings on behalf
of the Company or 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 any part of those proceedings. The Company was not a party to any
such proceedings during the year.
Non-audit services
The directors are satisfied that the provision of non-audit services during the
year by the auditor (or by another person or firm on the auditor’s behalf) is
compatible with the general standards of independence for auditors imposed
by the Corporations Act 2001.
Auditor independence declaration
The auditor’s independence declaration for the year ended 30 June 2017
has been received and is included in this report.
Remuneration Report - Audited
This remuneration report, which forms part of the Directors’ report, sets out
information about the remuneration of the Group’s directors and other key
management personnel for the financial year ended 30 June 2017. The
prescribed details for each person covered by this report are detailed below.
Details of Directors and other Key
Management Personnel
Directors and other key management personnel of the Group during and
since the end of the financial year are as follows:
Directors
J Chirnside (appointed 18 June 2015)
L Robinson (appointed 18 June 2015)
R Simpson (appointed 18 June 2015)
Other Key Management Personnel
D G Turnbull
Remuneration philosophy
The Board of Directors of Dart Mining NL is responsible for determining
and reviewing compensation arrangements for the Directors, the Managing
Director and other key management personnel after consideration is given to
the recommendations of the Company’s Remuneration and Nomination
Committee. The Remuneration and Nomination Committee’s policy is to
ensure that a remuneration package properly reflects the person’s duties and
responsibilities, with the overall objective of ensuring maximum
stakeholder benefit from the retention of a high quality Board and executive
team. The Board of the Company reviews and adopts or amend the
recommendations of the Remuneration and Nomination Committee as
proposed. The officers of the Company are given the opportunity to receive
their base emolument in a variety of forms, including cash, fringe benefits
such as motor vehicles and incentive rights. It is intended that the manner of
payment chosen will be optimal for the recipient without creating undue cost
to the Group.
To assist in achieving these objectives, the Board’s objective is to link
the nature and amount of Directors and other key management
personnel emoluments to the Company’s financial and operational
performance. It is the Board’s policy that employment contracts are
entered into with all senior executives. At the date of this report,
executive remuneration is set at levels approved by the Board. The
Board has implemented these guaranteed levels of remuneration which are
not dependent on performance in order to ensure the Group’s ability to retain
quality personnel.
Employment Agreements are entered into with Executive Directors and
specified executives.
7
Directors’ Report
The Group’s earnings and movements in shareholders’ wealth for the last 6 financial years to 30 June 2017 is detailed in the following table:
30 June 2017
30 June 2016
30 June 2015
30 June 2014
30 June 2013
30 June 2012
Revenue
15,561
286,628
95,408
$2,167,529
$4,612,093
Net profit/( loss) after tax
(715,393)
(717,334)
(3,146,130)
($1,060,846)
$55,567
Share price at start of year (cents)
Share price at end of year (cents)
Dividends
Basic earnings per share (cents)
Diluted earnings per share (cents)
1.0
0.5
-
(0.21)
(0.21)
1.2
1.0
-
(0.28)
(0.28)
1.6
1.2
-
(1.33)
(1.33)
7
1.6
-
(0.51)
(0.51)
10
7
-
0.03
0.03
$80,135
($2,968,38
6)
6
10
-
(1.98)
(1.98)
The remuneration of Non-executive Directors for the financial
year ended 30 June 2017 is detailed in this report.
Senior executive remuneration
Objective
The Board aims to reward Executives with a level and mix of
remuneration commensurate with their position and responsibilities
within the Company and so as to:
• reward Executives for Company, business unit and
individual performance against targets set by reference to
appropriate benchmarks;
• align the interests of Executives with those of shareholders;
• link reward with the strategic goals and performance of the
Company; and
• ensure total remuneration is competitive by market standards.
Structure
In determining the level and make-up of executive remuneration,
the Board obtained independent advice from external
consultants
on market levels of remuneration for comparable executive roles. It
is
the Board’s policy that employment contracts are entered into
with all senior executives.
Remuneration structure
In accordance with best practice corporate governance, the structure of
non-executive and executive director remuneration is separate and
distinct.
Non-executive director remuneration
Objective
The Board seeks to set aggregate remuneration at a level which
provides the Company with the ability to attract and retain directors of
the highest calibre at a cost that is acceptable to shareholders.
Structure
The Constitution and the ASX Listing Rules specify that the aggregate
remuneration of Non-executive Directors shall be determined from
time to time by a general meeting of the Company’s shareholders. An
amount not exceeding the sum determined is then divided between
the directors as agreed whilst maintaining a surplus amount that can
be attributed to additional Non-executive Directors should they be
appointed at any time. The latest determination was sought and
granted at the Company’s AGM on 2 October 2012 whereby
shareholders approved an aggregate remuneration of $475,000 per
year: an increase from the previous aggregate remuneration amount
of $200,000 per year which was set with the adoption of the
Company’s constitution on 22 June 2006.
The amount of aggregate remuneration sought to be approved by
shareholders and the manner in which it is apportioned amongst
directors is reviewed annually. The Board considers advice from
external consultants as well as the fees paid to Non-executive
Directors of comparable companies when undertaking the annual
review process.
Each Non-executive Director receives a fee for being a Director of the
Group. Directors who are called upon to perform extra services
beyond the Director’s ordinary duties or who are members of Board
Committees may be paid additional fees for those services.
8
Directors’ Report
Service contracts
Service contracts were entered into with Executive Directors and
Specified Executives.
Other Key Management Personnel
All other KMP have rolling contracts with standard termination provisions
as follows:
Notice
period
Payment
in lieu of
notice
Treatment of STI
on termination
Resignation
1 - 3 months
1 - 3 months
Termination for
cause
1 month
1 month
3 months
3 months
Termination
in cases of
disablement,
redundancy or
notice without
cause
Unvested awards
forfeited
Unvested awards
forfeited. Claw back
of deferred STI
payments at the
Board’s discretion
Claw back of
deferred STI
payments at the
Board’s discretion
Managing Director
The terms of an employment agreement with the MD, James
Chirnside, issued on 19 June 2015 include inter alia:
• A fixed remuneration package of $150,000 plus superannuation per
annum, and director’s fees of $30,000 plus Superannuation whilst
engaged as a director of Dart Mining NL.
• Reimbursement of all business related expenses and a motor vehicle
for business use and reasonable private use or a reasonable allowance
should he provide his own motor vehicle to perform work for Dart.
• The agreement can be terminated by either party upon 3 months’
notice being given.
Dean G Turnbull
The terms of an employment agreement with Dean Turnbull include
inter alia:
• A remuneration package of $ 135,000 plus Superannuation per annum,
with annual reviews, together with reimbursement of all business
related expenses including motor vehicle running and maintenance
expenses plus statutory annual leave entitlements;
• A restraint on Dean undertaking additional part-time consulting or
provision of other services which may conflict with the activities
of Dart without the approval of the Chairman which may not be
unreasonably withheld. This restraint continues for 12 months after
cessation of engagement with the Company;
• The agreement can be terminated by either party upon 3 months
notice being given; and
• A bonus may be paid to Dean at the sole discretion of the Board
which is based on certain performance criteria being exceeded for
any pre-determined period.
9
Directors’ Report
Remuneration of directors and other key management personnel for the year ended 30 June 2017
Short term benefits
Post-employment
benefits
Share-
based
payments
Termination
payments
Total Percentage
of share-
based
payments
Salaries,
fees and
leave
$
2017
Executive Directors
James Chirnside
178,750
Non-executive Directors
Current
Luke Robinson
Russell Simpson
F
o
r
m
Dean G Turnbull
e
r
30,000
-
30,000
134,579
373,329
Cash
bonus
$
-
-
-
-
-
Non-
monetary
benefits
$
Superannuation
Options/
Incentive
rights
$
- 16,981
-
-
-
-
2,850
2,850
12,785
35,466
$
-
-
-
-
-
$
$
%
-
195,731
0.00%
-
-
-
-
32,850
32,850
147,364
408,795
0.00%
0.00%
-
0.00%
0.00%
Short term benefits
Post-employment
benefits
Share-
based
payments
Termination
payments
Total
Percentage
of share-
based
payments
Salaries,
fees and
leave
$
2016
Executive Directors
James Chirnside
180,603
Non-executive Directors
Current
Luke Robinson
Russell Simpson
F
o
r
m
Dean G Turnbull
e
r
John Nethersole
57,976
-
30,579
135,746
57,457
462,361
Cash
bonus
$
-
-
-
-
-
Non-
monetary
benefits
$
Superannuation
Options/
Incentive
rights
$
-
17,157
-
-
-
-
5,507
2,905
12,895
4,188
42,652
$
-
-
-
-
-
$
$
%
-
-
-
-
-
197,760
0.00%
63,483
33,484
0.00%
0.00%
148,691
61,645
505,063
0.00%
0.00%
0.00%
Bonuses
No cash bonuses were granted to Executive Directors during the financial year ended 30 June 2017 (2016: $nil).
10
Directors’ Report
Employee options
At the end of the financial year, the following share-based payment arrangements were in existence:
Grantee
Number
Grant date
Expiry date
S Dunn
S Dunn
J Nethersole
N Purden
N Purden
D G Turnbull
200,000
200,000
250,000
200,000
150,000
250,000
18 Dec 2014
18 Dec 2014
31 Dec 2017
31 Dec 2017
18 Dec 2014
31 Dec 2017
18 Dec 2014
31 Dec 2017
18 Dec 2014
31 Dec 2017
18 Dec 2014
31 Dec 2017
Exercise price
(cents)
Fair value at
grant date
(cents)
Vesting date
3
6
6
3
6
6
1.180
0.740
0.740
1.180
0.740
0.740
18 Dec 2014
18 Dec 2014
18 Dec 2014
18 Dec 2014
18 Dec 2014
18 Dec 2014
These options and incentive rights are not quoted, not transferrable and may be exercised at any time after vesting date.
The following table summarises the value of remuneration options and incentive rights granted, exercised or lapsed during the year:
C J Bain
J Cornelius
S G Poke
R G Udovenya
D G Turnbull
Value of incentive rights
granted
Value of options
exercised
Value of options
cancelled
Value of options
lapsed at lapse date
$
-
-
-
-
-
$
-
-
-
-
-
$
-
6,450
-
-
-
$
43,900
-
43,900
43,900
4,600
This directors’ report is signed in accordance with a resolution of directors made pursuant to s.298(2) of the Corporations Act 2001.
James Chirnside
Chairman
Melbourne
20 September 2017
Luke Robinson
Director
Russell Simpson
Director
11
Corporate Governance Statement
The Board of Directors of Dart Mining NL (the Company) is responsible for establishing the corporate governance framework of the Group having regard to the
ASX Corporate Governance Council (CGC) published guidelines as well as its corporate governance principles and recommendations. The Board guides and
monitors the business and affairs of the Company on behalf of the shareholders by whom they are elected and to whom they are accountable.
The Company’s corporate governance statement for 2017 is located on the Company’s website at www.dartmining.com.au – about us – Corporate Policy.
12
13
Consolidated Statement of Comprehensive Income
For the financial year ended 30 June 2017
Continuing operations
Revenue
Consultancy fees
Professional fees
Employee benefits expense
Exploration costs written-off
Depreciation and amortisation expense
Office expenses
Finance expenses
Administrative expenses
Travel related expenses
Expenses
Profit/(loss) before income tax expense
Income tax expense
Profit/(loss) for the year
Other comprehensive income
Items that will not be reclassified to profit or loss
Items that may be reclassified subsequently to profit or loss
Other comprehensive income for the year
Total comprehensive income for the year
Attributable to:
Net profit/(loss) attributable to
Members of the parent entity
Non-controlling interests
Total comprehensive income
Earnings per share
From continuing and discontinued operations
Basic earnings per share (cents)
Diluted earnings per share (cents)
The accompanying notes form part of these financial statements
Consolidated Group
2017
$
2016
$
15,561
(66,097)
(148,796)
(184,453)
(67,316)
)
(17,272)
(53,019)
(2,086)
(167,253)
(24,662)
(730,954)
)
(715,393)
-
(715,393)
286,628
(76,406)
(222,432)
(281,835)
(77,489)
(9,085)
(133,284)
(2,362)
(185,024)
(16,045)
(1,003,962)
(717,334)
(1,060,846)
-
(717,334)
-
-
-
-
-
-
(715,393)
(717,334)
(715,393)
(717,334)
-
-
(715,393 )
(717,334)
(0.21)
(0.21)
(0.28)
(0.28)
Note
4
5
6
9
9
14
Consolidated Statement of Financial Position
As at 30 June 2017
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current assets
Property, plant and equipment
Other non-current assets
Deferred exploration and evaluation costs
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Provisions
Total current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Retained earnings
TOTAL EQUITY
The accompanying notes form part of these financial statements
Consolidated
30 June 2017
Note
$
30 June 2016
$
10
11
15
13
15
14
16
17
18
27
218,722
8,916
24,000
251,638
62,555
239,214
8,266,729
8,568,498
8,820,136
95,245
84,803
180,048
180,048
8,640,088
19,934,094
11,010
(11,305,016)
8,640,088
436,598
19,847
-
456,445
88,017
182,585
7,930,972
8,201,574
8,658,019
242,700
67,933
310,633
310,633
8,347,386
,390
18,925,999
193,060
(10,771,673)
8,347,386
15
Consolidated Statement of Changes in Equity
For the financial year ended 30 June 2017
Consolidated
Balance at 1 July 2015
Comprehensive income
Profit/(loss) for the year
Other comprehensive income for the year
Total comprehensive income for the year
Transactions with owners, in their capacity as
owners, and other transfers
Options and performance rights issued
Fair value of lapsed options transferred
Shares issued during the year
Capital raising costs
Total transactions with owners and other
transfers
Ordinary share
capital
Option reserve
Accumulated
losses
$
$
$
Total
$
18,379,349
386,158
(10,247,437)
8,518,070
-
-
-
-
-
605,001
(58,351)
546,650
-
-
-
-
-
(193,098)
-
-
(717,334)
(717,334)
-
-
(717,334)
(717,334)
-
193,098
-
-
-
-
605,001
(58,351)
546,650
(193,098)
193,098
Balance at 30 June 2016
18,925,999
193,060
(10,771,673)
8,347,386
Balance at 1 July 2016
Comprehensive income
Profit/(loss) for the year
Other comprehensive income for the year
Total comprehensive income for the year
Transactions with owners, in their capacity as
owners, and other transfers
Options and performance rights issued
Fair value of lapsed options transferred
Shares issued during the year
Capital raising costs
Total transactions with owners and other
transfers
18,925,999
193,060
(10,771,673)
8,347,386
-
-
-
-
1,059,664
(51,569)
1,008,095
-
-
-
-
(182,050)
-
-
-
(715,393)
(715,393)
-
-
(715,393)
(715,393)
-
182,050
-
-
-
-
-
1,059,664
(51,569)
1,008,095
Balance at 30 June 2017
19,934,094
11,010
(11,305,016)
8,640,088
The accompanying notes form part of these financial statements
16
Consolidated Statement of Cash Flows
For the year ended 30 June 2017
Note
Consolidated
2017
$
2016
$
Cash flows from operating activities
Other income
Research and development grant received
Interest received
Payments to suppliers and employees
Net cash provided by/(used in) operating activities
22a
Cash flows from investing activities
Payments for exploration costs
Purchase of property, plant and equipment
Disposal/(purchases) of property, plant and equipment
Security deposits refunded (held)
Net cash provided by/(used) in investing activities
Cash flows from financing activities
Proceeds from issue of ordinary shares
Payment of share issue costs
Net cash provided by/(used in) financing activities
Net increase/(decrease) in cash held
Cash and cash equivalent at the beginning of the financial year
Cash and cash equivalent at the end of the financial year
10
The accompanying notes form part of these financial statements
-
13,097
2,512
(854,810)
(839,201)
(371,315)
(3,608)
(11,847)
-
(386,770)
1,059,664
(51,569)
1,008,095
(217,876)
436,598
218,722
30,169
245,197
15,962
(950,087)
(658,759)
(649,599)
(13,451)
29,500
15,170
(618,380)
605,001
(58,351)
546,650
(730,489)
1,167,087
436,598
17
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 1 Corporate information
The consolidated financial statements of Dart Mining NL and its
subsidiaries (collectively, the Group) for the year ended 30 June 2017 were
authorised for issue in accordance with a resolution of the Directors on 20
September 2017.
Dart Mining NL (the Company or the parent) is a for profit company limited
by shares incorporated in Australia whose shares are publicly traded on the
Australian Stock Exchange.
Note 2 Summary of significant accounting policies
Basis of preparation
These financial statements are general-purpose financial statements which
have been prepared in accordance with the Australian Accounting
Standards, Australian Accounting Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board and the
Corporations Act 2001
Australian Accounting Standards set out accounting policies that the
Australian Accounting Standards Board has concluded would result
in
financial statements containing relevant and reliable information
about transactions, events and conditions. Compliance with Australian
Accounting Standards ensures that the financial statements and
notes also comply with International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards Board. Material
accounting policies adopted in the preparation of the financial statements
are presented below and have been consistently applied unless stated
otherwise.
Except for cash flow information, the financial statements have been
prepared on an accrual basis and are based on historical costs, modified
where applicable by the measurement at fair value of selected non-current
assets, financial assets and financial liabilities.
The nature of the operations and principal activities of the Group are
described in the Directors’ Report. Information on the Group’s structure
is provided in Note 12. Information on other related party relationships is
provided in Note 25.
Current and deferred income tax expense/ (income) is charged or credited
outside profit or loss when the tax relates to items that are recognised
outside profit or loss.
Except for business combinations, no deferred income tax is recognised
from the initial recognition of an asset or liability, where there is no effect
on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are
expected to apply to the period when the asset is realised or the liability is
settled. Their measurement also reflects the manner in which management
expects to recover or settle the carrying amount of the related asset or
liability. With respect to non-depreciable items of property, plant and
equipment measured at fair value and items of investment property
measured at fair value, the related deferred tax liability or deferred tax asset
is measured on the basis that the carrying amount of the asset will be
recovered entirely through sale.
Deferred tax assets relating to temporary differences and unused tax losses
are recognised only to the extent that it is probable that future taxable profit
will be available against which the benefits of the deferred tax asset can be
utilised.
(a) Principles of consolidation
The consolidated financial statements incorporate the assets, liabilities and
results of entities controlled by Dart Mining NL at the end of the reporting
period. A controlled entity is any entity over which Dart Mining NL has the
ability and right to govern the financial and operating policies so as to obtain
benefits from the entity’s activities.
The result of subsidiaries acquired or disposed of during the year are included in
the consolidated statement of comprehensive income from the effective date of
acquisition or up to the effective date of disposal, as appropriate. A list of
controlled entities is contained in Note 12 to the financial statements.
In preparing the consolidated financial statements, all intra-group balances and
transactions between entities in the consolidated group have been eliminated in
full.
Where temporary differences exist in relation to investments in subsidiaries,
branches, associates and joint ventures, deferred tax assets and liabilities are
not recognised where the timing of the reversal of the temporary difference
can be controlled and it is not probable that the reversal will occur in the
foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right
of set-off exists and it is intended that net settlement or simultaneous
realisation and settlement of the respective asset and liability will occur.
Deferred tax assets and liabilities are offset where : (a) a legally enforceable
right of offset exists; and (b) the deferred tax assets and liabilities relate to
income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities where it is intended that net
settlement or simultaneous realisation and settlement of the respective asset
and liability will occur in future periods in which significant amounts of
deferred tax assets or liabilities are expected to be recovered or settled.
(b) Income tax
The income tax expense (income) for the year comprises current income tax
expense (income) and deferred tax expense/ (income).
Current income tax expense charged to profit or loss is the tax payable on
taxable income. (Current tax liabilities)/assets are measured at the amounts
expected to be paid to/ (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax assets and
deferred tax liability balances during the year and unused tax losses.
18
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Acquisition
(c) Property, plant and equipment
i)
Items of property, plant and equipment are initially recorded at cost
net of GST and depreciated as outlined below.
ii) Depreciation of property, plant and equipment
Property, plant and equipment are depreciated on a straight-line basis
at rates based upon the expected useful lives of these
assets. The useful lives of these assets are detailed in Note 13 to the
financial statements.
iii) Disposal
The gain or loss arising on disposal or retirement of property, plant or
equipment is determined as the difference between the sales
proceeds and the carrying amount of the asset and is recognised in
profit and loss.
iv) Subsequent measurement
Property, plant and equipment are subsequently measured at
amortised cost. Amortised cost is calculated as the amount at
which the asset is measured at initial recognition less any
depreciation or impairment.
(d) Deferred exploration and evaluation
In accordance with AASB 6 Exploration For and Evaluation of Mineral
Resources, exploration and evaluation expenditure incurred is accumulated
in respect of each identifiable area of interest. Other than Research and
Development costs (see Note 2 (e)) these costs are only carried forward to
the extent that they are expected to be recouped through the successful
development of the area or where activities in the area have not yet reached
a stage which permits reasonable assessment of the existence of
economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full
against operating results in the year in which the decision to abandon the
area is made.
When production commences, the accumulated costs for the relevant area of
interest are amortised over the life of the area according to the rate of
depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the
appropriateness of continuing to carry forward costs in relation to that area
of interest.
Costs of site restoration are provided over the life of the facility from when
exploration commences and are included in the costs of that stage. Site
restoration costs include the dismantling and removal of mining plant,
equipment and building structures, waste removal and rehabilitation of the
site in accordance with the clauses of the mining permits. Such costs are
determined using estimates of future costs, current legal requirements and
technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted for on a prospective
basis. In determining the costs of site restoration there is uncertainty
regarding the nature and extent of the restoration due to community
expectations and future legislation. Accordingly the costs are determined on
the basis that restoration will be completed within one year of abandoning a
site.
(e) Research and development costs
Research costs relating to the development of exploration models are
expensed as incurred.
(f) Financial instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the entity
becomes a party to the contractual provisions to the instrument. For
financial assets, this is equivalent to the date that the Company commits
itself to either the purchase or sale of the asset (i.e. trade date accounting
is adopted).
Financial instruments are initially measured at fair value plus transaction
costs except where the instrument is classified at fair value through profit
or loss in which case transaction costs are expensed to profit or loss
immediately.
Classification and subsequent measurement
Financial instruments are subsequently measured at fair value,
amortised cost using either the effective interest method or cost
Amortised cost is calculated as the amount at which the financial
assets or financial liability is measured at initial recognition less
principal repayments, any reduction for impairment and adjusted
for any cumulative amortisation of the difference between that
initial amount and the maturity amount calculated using the
effective interest method.
Fair value is determined based on current bid prices for all
quoted investments. Valuation techniques are applied to determine
the fair value for all unlisted securities, including recent arm’s length
transactions, by reference to similar instruments and option pricing
models.
The effective interest method is used to allocate interest income
or interest expense over the relevant period and is equivalent
to the rate that discounts estimated future cash payments or
receipts (including fees, transaction costs and other premiums or
discounts) over the expected life (or when this cannot be reliably
predicted, the contractual term) of the financial instrument to the
net carrying amount of the financial asset or financial liability.
Revisions to expected future net cash flows will necessitate
an adjustment to the carrying amount with a consequential
recognition of an income or expense item in profit or loss.
The Group does not designate any interests in subsidiaries,
associates or joint venture entities as being subject to the
requirements of accounting standards specifically applicable to
financial instruments.
(i) Loans and receivables
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active
market and are subsequently measured at amortised cost. Gains
or losses are recognised in profit or loss through the
amortisation process and when the financial asset is de-
recognised.
(ii) Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets
that have fixed maturities and fixed or determinable payments, and
it is the Group’s intention to hold these investments to maturity.
They are subsequently measured at amortised cost. Gains or losses
are recognised in profit or loss through the amortisation process
and when the financial asset is de-recognised.
Financial liabilities
(iii)
Non-derivative financial liabilities other than financial guarantees
are subsequently measured at amortised cost. Gains or
losses are recognised in profit or loss through the amortisation
process and when the financial asset is de-recognised.
19
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Impairment
At the end of each reporting period the Group assesses whether there is
objective evidence that a financial asset has been impaired. A financial asset
(or a group of financial assets) is deemed to be impaired if, and only if, there is
objective evidence of impairment as a result of one or more events (a “loss
event”) having occurred, which has an impact on the estimated future cash
flows of the financial asset(s).
In the case of available-for-sale financial assets, a significant or prolonged
decline in the market value of the instrument is considered to constitute a loss
event. Impairment losses are recognised in profit or loss immediately. Also,
any cumulative decline in fair value previously recognised in other
comprehensive income is reclassified to profit or loss at this point.
In the case of financial assets carried at amortised cost, loss events may
include: indications that the debtors or a group of debtors are experiencing
significant financial difficulty, default or delinquency in interest or principal
payments; indications that they will enter bankruptcy or other financial
reorganisation; and changes in arrears or economic conditions that correlate
with defaults.
For financial assets carried at amortised cost (including loans and
receivables), a separate allowance account is used to reduce the carrying
amount of financial assets impaired by credit losses. After having taken all
possible measures of recovery, if management establishes that the carrying
amount cannot be recovered by any means, at that point the written-off
amounts are charged to the allowance account or the carrying amount of
impaired financial assets is reduced directly if no impairment amount was
previously recognised in the allowance account.
When the terms of financial assets that would otherwise have been past due or
impaired have been renegotiated, the Group recognises the impairment for
such financial assets by taking into account the original terms as if the terms
have not been renegotiated so that the loss events that have occurred are duly
considered.
De-recognition
Financial assets are de-recognised when the contractual rights to receipt of
cash flows expire or the asset is transferred to another party whereby the entity
no longer has any significant continuing involvement in the risks and benefits
associated with the asset. Financial liabilities are de-recognised when the
related obligations are discharged, cancelled or have expired. The difference
between the carrying amount of the financial liability extinguished or
transferred to another party and the fair value of consideration paid, including
the transfer of non-cash assets or liabilities assumed, is recognised in the
statement of comprehensive income or profit or loss.
(g) Impairment of assets
At the end of each reporting period, the Group assesses whether there is any
indication that an asset may be impaired. The assessment will include the
consideration of external and internal sources of information including
dividends received from subsidiaries, associates or jointly controlled entities
deemed to be out of pre-acquisition profits. If such an indication exists, an
impairment test is carried out on the asset by comparing the recoverable
amount of the asset, being the higher of the asset’s fair value less costs to sell
and value in use, to the asset’s carrying amount. Any excess of the asset’s
carrying amount over its recoverable amount is recognised immediately in
profit or loss, unless the asset is carried at a revalued amount in accordance
with another Standard (e.g. in accordance with the revaluation model in
AASB 116: Property, Plant and Equipment). Any impairment loss of a
revalued asset is treated as a revaluation decrease in accordance with that
other Standard.
Where it is not possible to estimate the recoverable amount of an individual
asset, the Group estimates the recoverable amount of the cash-generating unit
to which the asset belongs.
Impairment testing is performed annually for goodwill, intangible assets with
indefinite lives and intangible assets not yet available for use.
(h) Leases
Leases are classified at their inception as either operating or finance leases
based on the economic substance of the agreement so as to reflect the risks and
benefits incidental to ownership.
Operating Leases
The minimum lease payments of operating leases, where the lesser effectively
retains substantially all of the risks and benefits of ownership of the leased
item, are recognised as an expense on a straight line basis. Contingent rentals
are recognised as an expense in the financial year in which they are incurred.
Finance Leases
Leases which effectively transfer substantially the entire risks and benefits
incidental to ownership of the leased item to the Group are capitalised at the
present value of the minimum lease payments and disclosed as property, plant
and equipment under lease. A lease liability of equal value is also recognised.
The consolidated entity has no finance leases as at 30 June 2017.
(i) Employee benefits
Provision is made for the Group’s liability for employee benefits arising from
services rendered by employees to the end of the reporting period. Employee
benefits that are expected to be settled within one year have been measured at
the amounts expected to be paid when the liability is settled.
Employee benefits payable later than one year have been measured at the
present value of the estimated future cash outflows to be made for those
benefits. In determining the liability, consideration is given to employee wage
increases and the probability that the employee may satisfy any vesting
requirements. These cash flows are discounted using market yields on
national government bonds with terms to maturity that match the expected
timing of cash flows attributable to employee benefits.
(j) Provisions
Provisions are recognised when the group has a legal or constructive
obligation, as a result of past events, for which it is probable that an outflow
of economic benefits will result and that outflow can be reliably measured.
(k) Cash and cash equivalents
Cash and cash equivalents include deposits available on demand with banks.
(l) Issued capital
Issued and paid up capital is recognised at the fair value of the consideration
received by the Company.
Transaction costs arising on the issue of equity instruments are recognised
directly in equity as a reduction of the proceeds of the equity instrument to
which the costs relate. Transaction costs are costs that are incurred directly in
connection with the issue of those equity instruments and which would not
have been incurred had those instruments not been issued.
(m) Share-based payments
The Group measures the cost of equity-settled transactions with employees
and consultants by reference to the fair value of the equity instruments at the
date at which they are granted. The fair value is determined by using the
Black-Scholes model, using the assumptions detailed in Note 23.
(i)
The fair value determined at the grant date of the equity settled share
based payment is expensed on a straight-line basis over the vesting period,
based on the directors’ estimate of shares that will eventually vest.
(ii) Equity-settled share based payment transactions with other parties are
measured at the fair value of the goods and services received, except where the
fair value cannot be estimated reliably, in which these are measured at the fair
value of the equity instruments granted at the date the entity obtains the goods
or the counterparty renders the service.
20
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
(n) Going concern basis
The Group is involved in the exploration and evaluation of mineral tenements
and as such expects to be cash absorbing until these tenements demonstrate
that they contain economically recoverable reserves.
As at 30 June 2017, the Group had a surplus of current assets over current
liabilities of $71,590 (2016: $145,812) including cash reserves of $218,722
(2016: $436,598).
For the year ended 30 June 2017, the Group reported net cash outflows from
operations and investing activities of $839,201 (2016: $658,759) and
$386,770 (2016: $618,380) respectively. These cash outflows were offset by
net cash inflows from financing activities of $1,008,095 (2016: $546,650)
resulting in total cash inflows/ (outflows) for the year of ($217,876) (2016:
(($730,489)).
As noted in the June 2016 Financial Report,Dart Mining NL received a
notification from Innovation Australia (formerly AusIndustry) stating that the
previous R&D Claims were not core R&D activities in accordance with the
Industry Research and Development Act 1986.
Subsequently, submissions have been made in an endeavor to resolve the
matter. Preliminary advice from the independent expert that there was a
reasonable degree of confidence that significant aspects of the claim will be
allowed, has proven correct. Two activities, including the major focus of our
R&D work have been accepted as eligible. However, work on two other
activities was not allowed. The amount which was potentially refundable to
the Australian Taxation Office was $2,033,733, this has now been reduced to
$321,584. The issue of the two remaining activities, which are closely
connected to our basic research work and are critical in our work going
forward are still in the process of being resolved.
The financial statements have been prepared on a going concern basis which
contemplates the continuity of normal business activities and the realisation
of assets and settlement of liabilities in the ordinary course of business.
The ability of the Group to continue as a going concern for the twelve months
from the date of this report is dependent on its ability to control its overhead
costs and exploration expenditures and to generate additional funds from
activities including:
• other future equity or debt fund raisings;
•
the potential farm-out of participating interests in the Group’s tenements;
and
•
successful development of existing tenements.
Having carefully assessed the likelihood of securing additional funding or
entering into farm-out arrangements including the funds raised subsequent to
the balance date and the Group’s ability to effectively manage their
expenditures and cash flows from operations, the directors believe that the
Group will continue to operate as a going concern for the foreseeable future
and therefore it is appropriate to prepare the financial statements on a going
concern basis.
(o) Revenue and other income
Revenue is measured at the fair value of the consideration received or
receivable after taking into account any trade discounts and volume rebates
allowed. When the inflow of consideration is deferred it is treated as the
provision of financing and is discounted at a rate of interest that is generally
accepted in the market for similar arrangements. The difference between the
amount initially recognised and the amount ultimately received is interest
revenue.
Interest revenue is recognised using the effective interest method.
All revenue is stated net of the amount of goods and services tax.
(p) Trade and other receivables
Trade and other receivables include amounts due from customers for goods
sold and services performed in the ordinary course of business. Receivables
expected to be collected within 12 months of the end of the reporting period
are classified as current assets. All other receivables are classified as non-
current assets.
Trade and other receivables are initially recognised at fair value and
subsequently measured at amortised cost using the effective interest method,
less any provision for impairment. Refer to Note 2(f) for further discussion on
the determination of impairment losses.
(q) Trade and other payables
Trade and other payables represent the liabilities for goods and services
received by the entity that remain unpaid at the end of the reporting period.
The balance is recognised as a current liability with the amounts normally
paid within 30 days of recognition of the liability.
Receivables and payables are stated inclusive of the amount of GST
receivable or payable. The net amount of GST recoverable from, or payable
to, the ATO is included with other receivables or payables in the statement of
financial position.
(r) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST,
except where the amount of GST incurred is not recoverable from the
Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of the amount of GST
receivable or payable. The net amount of GST recoverable from, or payable
to, the ATO is included with other receivables or payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash
flows arising from investing or financing activities which are recoverable
from, or payable to, the ATO are presented as operating cash flows included
in receipts from customers or payments to suppliers.
(s) Government grants
Government grants are recognised at fair value where there is reasonable
assurance that the grant will be received and all grant conditions will be met.
Grants relating to expense items are recognised as income on the date of
receipt of the grant. Grants relating to assets are credited to deferred income
at fair value and are credited to income over the expected useful life of the
asset on a straight-line basis.
Repayment of Government grants are recognised at fair value where there is a
reasonable likelihood that a repayment will be required.
(t) Comparative figures
When required by Accounting Standards, comparative figures have been
adjusted to conform to changes in presentation for the current financial year.
Where the Group retrospectively applies an accounting policy, makes a
retrospective restatement or reclassifies items in its financial statements, an
additional (third) statement of financial position as at the beginning of the
preceding period in addition to the minimum comparative financial statement
is presented.
21
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
(u) Critical accounting judgements and sources of
estimations
In applying the Group’s accounting policies, management is required to make
judgements, estimates and assumptions about the carrying values of assets
and liabilities. These estimates and assumptions are made based on past
experience and other factors that are considered relevant. Actual results may
differ from these estimates. All estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects
both current and future periods.
The following describes critical judgements that management has made in the
process of applying the Group’s accounting policies and that have the most
significant effect on the amounts recognised in the financial statements:
Impairment of deferred exploration costs
The Group’s accounting policy for exploration expenditure results in some
items being capitalised for an area of interest where it is considered likely to
be recoverable in the future or where the activities have not reached a stage
which permits a reasonable assessment of the existence of reserves.
Management is required to make certain estimates and assumptions as to
future events and circumstances which may change as new information
becomes available. If a judgement is made that recovery of a capitalised
expenditure is unlikely, the relevant amount will be written off to the income
statement.
(v) New Accounting Standards for Application in Future
Periods
Accounting Standards issued by the AASB that are not yet mandatorily
applicable to the Group, together with an assessment of the potential impact
of such pronouncements on the Group when adopted in future periods, are
discussed below:
-
AASB 9: Financial Instruments and associated Amending Standards
(applicable to annual reporting periods beginning on or after 1 July
2018).
The Standard will be applicable retrospectively (subject to the
provisions on hedge accounting outlined below) and includes revised
requirements for the classification and measurement of financial
instruments, revised recognition and derecognition requirements for
financial instruments and simplified requirements for hedge accounting.
The key changes that may affect the Group on initial application include
certain simplifications to the classification of financial assets,
simplifications to the accounting of embedded derivatives, upfront
accounting for expected credit loss, and the irrevocable election to
recognize gains and losses on investments in equity instruments that are
not held for trading in other comprehensive income. AASB 9 also
introduces a new model for hedge accounting that will allow greater
flexibility in the ability to hedge risk, particularly with respect to hedges
of non-financial items, Should the entity elect to change its hedge
policies in line with the new hedge accounting requirements of the
Standard, the application of such accounting would be largely
prospective.
Although the directors anticipate that the adoption of AASB 9 may
have an impact on the Group’s financial instruments, including
hedging activity, it is impracticable at this stage to provide a
reasonable estimate of such impact.
-
AASB 16: Leases (applicable to annual reporting periods beginning on
or after 1 July 2019)
When effective, this Standard will replace the current accounting
requirements applicable to leases in AASB 117: Leases and related
Interpretations. AASB 16 introduces a single accounting model that
eliminates the requirement for leases to be classified as operating or
finance leases.
The main changes introduced by the new Standard are as follows:
-
-
-
-
recognition of a right-of-use asset and liability for all leases
(excluding short-term leases with less than 12 months of
tenure and leases relating to low-value assets);
depreciation of right-of-use assets in line with AASB 116:
Property, Plant and Equipment in profit or loss and
unwinding of the liability in principal and interest
components;
inclusion of variable lease payments that depend on an index
or a rate in the initial measurement of the lease liability
using the index or rate at the commencement date;
application of a practical expedient to permit a lessee to
elect not to separate non-lease components and
insteadaccount for all components as a lease; and
-
inclusion of additional disclosure requirements.
The transitional provisions of AASB 16 allow a lessee to either
retrospectively apply the Standard to comparatives in line with AASB or
recognize the cumulative effect of retrospective application as an adjustment
to opening equity on the date of initial application.
Although the directors anticipate that the adoption of AASB 16 will impact
the Group’s financial statements, it is impracticable at this stage to provide a
reasonable estimate of such impact.
22
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 3 Parent information
Statement of Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained earnings
Total equity
Statement of Profit or Loss and Other Comprehensive Income
Total profit/(loss)
Total comprehensive income/(loss)
Note 4 Revenue and other income
Revenue from continuing operations
Sales revenue
– Research and development grant
Other revenue
– Interest received
– Other revenue
Consolidated
2017
$
2016
$
251,633
8,582,459
8,834,092
180,244
-
180,244
8,653,848
456,445
8,215,534
8,671,979
310,833
-
310,833
8,361,146
19,934,094
33,070
18,925,999
215,120
(11,313,316)
(10,779,973)
8,653,848
8,361,146
(715,393)
(715,393)
(717,334)
(717,334)
-
-
2,464
13,097
15,561
15,561
245,196
245,196
11,262
30,170
41,432
286,628
23
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 5 Profit/(loss) for the year
Profit/(loss) before income tax from operations include the following expenses
Exploration expenses written off
Depreciation
Note 6 Tax expense
(a) The prima facie tax on profit from ordinary activities before income tax is reconciled to the
income tax expense
Profit/(loss) from continuing operations
Income tax expense (benefit) calculated at 27.5% (2016: 30%)
Effect of non-deductible expenses
Effect of deductible temporary differences
Effect of unused tax losses and tax offsets not recognised as deferred tax assets
Utilisation of tax losses brought forward
Income tax expense
(b) Tax losses not brought to account
Tax losses brought forward
Current year tax losses
Effect of change in tax rate from 30% to 27.5%
Utilisation of tax losses brought forward
Recognition of tax losses – correction prior years
Tax losses carried forward
Consolidated
2017
$
2016
$
67,316
17,272
77,489
9,085
(715,393)
(196,733)
49,343
(147,196)
294,586
-
-
4,312,491
294,586
(362,581)
-
38,479
4,282,975
(717,334)
(215,200)
)
149,676
(288,600)
354,124
-
-
2,918,378
354,124
-
-
1,039,989
4,312,491
24
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 7 Key management personnel compensation
Total remunerations paid to KMP of the Company and the Group during the year are as follows :
Short-term employee benefits
Post-employment benefits
Share-based payments
Long-term employee benefits
Termination payments
Total KMP compensation
Consolidated
2017
$
2016
$
373,329
35,466
-
-
-
462,361
42,652
-
-
-
408,795
505,013
KMP options and rights holdings
There were no listed options over ordinary shares held during the financial year by KMP of the Group (2016: Nil)
The number of unlisted options and incentive rights over ordinary shares held during the financial year by each KMP of the Group is as follows:
Balance at
beginning of year
Incentive rights
granted as
remuneration
during the year
Incentive rights
exercised, lapsed or
excluded during
the year
Net other
changes1
Balance at
end of year
2017
D G Turnbull
2016
D G Turnbull
J Nethersole2
J Cornelius
2,250,000
2,250,000
2,250,000
250,000
750,000
3,250,000
-
-
-
-
-
-
2,000,000
2,000,000
-
-
250,000
250,000
-
-
-
-
-
2,250,000
(250,000)
(750,000)
-
-
(1,000,000)
2,250,000
1 Net other changes represents reductions to Directors’ options or shareholdings on their resignations.
2 J Nethersole resigned as CFO of the company in July 2015, but continued to hold options in the company.
2 J Cornelius retired as CEO of the company in July 2015, but continued to hold options in the company
25
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 7 Key management personnel compensation (continued)
KMP shareholdings
The number of ordinary shares held by each KMP of the Group or their nominees during the financial year is as follows:
Balance at
beginning of year
Shares acquired
through exercise
of options and
incentive rights
Shares disposed
Share aquired
Balance at
end of year
2017
J Chirnside
R Simpson
D G Turnbull
2016
J Chirnside
R Simpson
D G Turnbull
2,970,297
30,386,795
4,459,179
37,816,271
-
23,945,817
4,459,179
-
-
-
-
2,970,297
6,440,978
-
28,404,996
9,411,275
-
-
-
-
-
-
-
-
-
2,000,000
-
-
-
-
-
-
2,970,297
32,386,795
4,459,179
39,816,271
2,970,297
30,386,795
4,459,179
37,816,271
Note 8 Auditor’s remuneration
Amounts received or due and receivable by MSI Ragg Weir for:
Audit or review of the financial statements of the Group
Consolidated
2017
$
2016
$
27,850
25,195
26
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 9 Earnings per share
(a) Reconciliation of earnings to profit and loss
Net profit/(loss) for the year
Earnings/(loss) used to calculate basic EPS
(b) Weighted average number of ordinary shares outstanding during the year used in the calculation of
basic EPS
Basic earnings per share
Diluted earnings per share
Consolidated
2017
$
2016
$
(715,393)
(715,393)
(717,334)
)
(717,334)
344,855,032
257,128,833
(0.21)
(0.21)
(0.28)
(0.28)
Diluted earnings per share is calculated after classifying all options on issue remaining unconverted at 30 June 2017 as potential ordinary shares. At 30
June 2017, the Company had on issue 1,250,000 (2016: 8,200,000) options and incentive rights over unissued capital and had incurred a net loss. Unlisted
options are not considered dilutive and have not been included in the calculations of diluted earnings per share.
Note 10 Cash and cash equivalent
Cash at bank and on hand
Note 11 Trade and other receivables
Accrued interest – other persons/corporations
GST receivable
Others
218,722
218,722
436,598
436,598
295
8,621
-
8,916
343
19,429
75
19,847
No receivable amounts were past due or impaired at 30 June 2017 (2016: Nil)
Credit risk
The Group has no significant concentration of credit risk with respect to any single counter party or group of counter-parties other than those receivables
specifically provided for and mentioned within Note 11. The class of assets described as Trade and Other Receivables is considered to be the main source of
credit risk related to the Group.
27
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 12 Controlled entities
Dart Resources Pty Ltd
Mt Unicorn Holdings Pty Ltd
Mt View Holdings Pty Ltd
Country of
incorporation
Australia
Australia
Australia
Percentage owned (%)
2017
100%
100%
100%
2016
100%
100%
100%
For each of the controlled entities that the place of business is the same as the place of incorporation. The activities of these entities are not material to the
Group.
There are no significant restrictions on the Group’s or its controlled entities ability to access or use the assets and settle the liabilities of the Group nor are
there restrictions on ownership changes to these entities.
Note 13 Property, plant and equipment
Plant and equipment
At cost
Accumulated depreciation
Computer equipment & software
At cost
Accumulated depreciation
Motor vehicles
At cost
Accumulated depreciation
Total property, plant and equipment
Consolidated
2017
$
2016
$
105,249
(98,146)
7,103
67,431
(50,775)
16,656
126,309
(87,513)
38,796
62,555
157,408
(152,338)
5,070
149,642
(127,562)
22,080
126,309
(65,442)
60,867
88,017
28
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 13 Property, plant and equipment (continued)
Plant & equipment
Computer
equipment &
software
Motor vehicles
Total
$
6,008
1,334
(790)
(1,482)
5,070
5,070
4,072
(868)
(1,171)
7,103
3 – 6 years
3 – 4 years
4 – 5 years
Consolidated
Balance at 1 July 2015
Additions
Depreciation expense
Depreciation expense capitalised
Balance at 30 June 2016
Balance at 1 July 2016
Additions/(Disposals)
Depreciation expense
Depreciation expense capitalised
Balance at 30 June 2017
The following useful lives are used in the calculation of depreciation:
Plant and equipment
Computer equipment & software
Motor vehicles
Note 14 Deferred exploration and evaluation
Balance at beginning of financial year
Current year expenditure capitalised – mining exploration
Current year expenditure capitalised – joint ventures
Exploration costs written-off
Balance at end of financial year
Comprising:
-
-
CC
-
Deferred
Deferred mining exploration expenditure
Deferred joint ventures expenditure
$
17,371
12,115
(5,141)
(2,265)
22,080
22,080
6,639
(9,047)
(3,016)
16,656
1
$
83,48
(500)
(3,153)
(18,961)
60,867
60,867
-
(7,357)
(14,714)
38,796
$
106,860
12,949
(9,084)
(22,708)
88,017
88,017
10,711
(17,272)
(18,901)
62,555
Consolidated
2017
$
7,930,972
282,736
120,337
(67,316)
8,266,729
8,092,486
174,243
2016
$
7,393,445
493,794
121,222
(77,489)
7,930,972
7,809,750
121,222
Ultimate recovery of deferred exploration and evaluation costs is dependent upon the success of Pre-feasibility Studies, exploration and evaluation
or sale or farm-out of the exploration interests. A percentage of the CEO’s salary and associated costs are capitalised in line with the Company’s
policy for capitalising costs directly relating to pre-feasibility and exploration. Namely, the Company has four cost centres, Corporate, Pre-feasibility,
Research and Development and Exploration. Where identifiable, costs associated with the Pre-feasibility and Exploration cost centres are
capitalised. These costs are annually reviewed for impairment and a charge is made direct to the Income Statement of the Company when an
impairment is identified. An impairment for 2017 of $67,316 (2016: $77,489) was brought to account for the financial year for costs associated with the
projects and areas within the Beechworth Tenement. The Company still intends to continue activity on the remaining tenements under its control.
29
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 15 Other assets
CURRENT
Prepayments
NON-CURRENT
Bond security for exploration tenement licences
Bond security for company credit cards
Receivable from joint ventures
Investment in joint ventures
Rental property bonds
Note 16 Trade and other payables
CURRENT
Trade payables
Sundry payables
Terms and conditions relating to the above financial instruments:
(i) Trade creditors are non-interest bearing and are usually settled on 30 day terms.
(ii)
Other creditors are non-interest bearing and have an average term of 30 days.
Note 17 Provisions
CURRENT
Short term employee benefits
Consolidated
2017
$
2016
$
24,000
24,000
50,772
10,000
174,243
3,330
869
239,214
-
-
51,363
10,000
121,222
-
-
182,585
15,184
80,061
95,245
21,667
221,033
242,700
84,803
67,933
30
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 18 Issued capital
411,485,049 fully paid ordinary shares (2016 : 300,023,714)
Ordinary shares
Consolidated
Balance at the beginning of the financial year
Shares issued during the year
Less transaction costs arising from issue of shares
Balance at end of financial year
Terms and conditions of contributed equity
Consolidated
2017
$
2016
$
19,934,094
18,925,999
2017
No
300,023,714
111,461,335
-
411,485,049
$
18,925,999
1,059,664
(51,569)
19,934,094
2016
No
243,257,982
56,765,732
-
$
18,379,349
605,001
(58,351)
300,023,714
18,925,999
Ordinary shares
Ordinary shares have the right to receive dividends as declared and, in the event of winding up of the Company, to participate in the proceeds from the sale
of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or
by proxy, at a meeting of the Company.
The issued capital of the Company quoted on the ASX comprises 411,485,049 ordinary shares (2016: 300,023,714).
Share options
There were no share options issued during the financial year (2016: nil).
At the end of the financial year, there were 1,250,000 (2016: 8,200,000) unlisted options on issue
Securities
Unlisted
Unlisted
Expiry date
Number
Exercise price
(cents)
Escrow period
31 December 2017
31 December 2017
850,000
400,000
6
3
-
-
The following options expired during the 2017 financial year
Securities
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Expiry date
Number
Exercise price
(cents)
Expired on
20 March 2017
20 March 2017
31 December 2016
30 August 2016
31 December 2016
30 June 2017
100,000
100,000
3,000,000
1,000,000
2,000,000
750,000
18
22
15
11
11
6
20 March 2017
20 March 2017
31 December 2016
30 August 2016
31 December 2016
30 June 2017
31
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 19 Expenditure commitments
Exploration expenditure
rights
Under the terms of the exploration tenement licences, the Group has a commitment to meet a minimum expenditure requirement in order to keep its
current. The minimum expenditure requirement is not recognised as a liability in the Statement of Financial Position of the Group as the Group may relinquish
its rights to a particular tenement thereby removing the requirement to meet the minimum expenditure requirement.
Not longer than 1 year
Between 1 and 5 years
Longer than 5 years
Operating leases
Consolidated
2017
$
367,033
393,116
-
760,149
2016
$
543,394
544,681
-
1,088,075
The Group has commercial leases on property. These leases have an average life of between zero and one year with renewal options on the property
leases. There are no restrictions upon the lessee by entering into these leases.
Future minimum lease payments payable under non-cancellable operating leases as at the balance date are as follows:
Not longer than 1 year
Between 1 and 5 years
Licence agreement
10,644
-
10,644
16,871
16,8719
3,029
19,900
The Group has a licence agreement for exclusive use of an office area. This licence is for 3 years and is not expected to be renewed. There are no restrictions
upon the lessee by entering into this agreement.
Future minimum payments payable under a non-cancellable agreement as at the balance date are as follows:
Not longer than 1 year
Between 1 and 5 years
24,423
-
24,423
30,219
24,423
54,642
Note 20 Contingent liabilities and contingent assets
The company establishes an accrued liability for claims when it determines that a loss is probable and the amount of the loss can be reasonably
estimated. Accruals will be adjusted from time to time, as appropriate, in the light of additional information.
As noted in the June 2016 Annual Financial Report, Dart Mining NL received a notification from Innovation Australia (formerly AusIndustry) stating
that the previous R&D Claims did not contain core or supporting R&D activities in accordance with the Industry Research and Development Act 1986.
Subsequently, submissions have been made in an endeavor to resolve the matter. Preliminary advice from the independent expert that there was a
reasonable degree of confidence that significant aspects of the claim will be allowed, has proven correct. Two activities, including the major focus of
our R&D work have been accepted as eligible. However, work on two other activities was not allowed. The amount which was potentially refundable
to the Australian Taxation Office was $2,033,733 and this has now been reduced to $321,584. The issue of the two remaining activities, which are
closely connected to our basic research work and are ctitical in our work going forward, are still in the process of being resolved.
Under tenement licence conditions in Victoria the Group is required to rehabilitate each licence area to its original state subsequent to any
exploration work. Rehabilitation costs are estimated not to exceed $60,000.
No contingent assets existed at the reporting date.
Note 21 Operating segments
The Group’s activities consist of base metal and gold exploration currently in one geographic region of north-east Victoria. There are no other significant
classes of business, either singularly or in aggregate. Internal monthly management reports are provided to the Group’s Directors that consolidate
operations in one segment. Therefore, the Group’s activities are classed as one business segment and as a result operating and financial information are not
separately disclosed in this note.
32
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 22 Cash-flow information
a) Reconciliation of cash flow from operations with profit after income tax
Profit/(loss) after income tax
Non- cash flows in profit/(loss)
Depreciation
Exploration cost written off
Loss on disposal of assets
Changes in assets and liabilities
(Increase)/Decrease in receivables
(Increase)/Decrease in other assets
Increase/(Decrease) in trade payables and accruals
Increase/(Decrease) in provisions
Cash flow from operations
b) Reconciliation of cash
Cash balance comprises:
Cash on hand and at call
Term deposits
c)
Financing facility
The Group has no available finance facilities at balance date.
d) Non-cash financing and investing activities
There were no non-cash financing or investing activities during the financial year.
Consolidated
2017
$
2016
$
(715,393)
(717,334)
17,272
-
1,136
26,202
(24,000)
(151,995)
7,577
(839,201)
218,722
-
218,722
9,084
77,489
-
30,580
(48,933)
(30,808)
21,163
(658,759)
436,598
-
436,598
33
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 23 Share-based payments
Executive options
Share-based payment options held at the end of the reporting year were as follows:
Grant date
Grantee
Number
Vesting date
Expiry date
Exercise price
(cents)
12 Dec 2014
18 Dec 2014
D G Turnbull
J Nethersole
250,000
250,000
12 Dec 2014
18 Dec 2014
31 Dec 2017
31 Dec 2017
6
6
Other options
Grant date
18 Dec 2014
18 Dec 2014
Number
Vesting date
Expiry date
Exercise price
(cents)
400,000
350,000
18 Dec 2014
18 Dec 2014
31 Dec 2017
31 Dec 2017
3
6
Fair value at
grant date
(cents)
0.74
0.74
Fair value at
grant date
(cents)
1.18
0.74
There was no share options and incentive rights granted during the financial year. Options were priced using a Black-Scholes model. Where relevant, the
expected life used in the model has been adjusted based on management’s best estimate for the effects of non-transferability, exercise restrictions.
Expected volatility is based on the historical share price volatility of the Company over the reporting period.
Weighted average remaining contractual life
Share options outstanding at 30 June 2017 had a weighted average contractual life of 184 days (2016: 260 days)
Movements in share-based payments options
Balance at beginning of year
Cancelled
Expired
Balance at end of year
Exercisable at end of year
2017
2016
Number Weighted average
exercise price
Number Weighted average
exercise price
(cents)
(cents)
8,200,000
(750,000)
(6,200,000)
1,250,000
1,250,000
15,473,048
(7,273,048)
-
8,200,000
8,200,000
5
11
34
Notes to the consolidated financial statements
For the financial year ended 30 June 2017
Note 24 Events after the reporting period
On 11 September 2017 the Company announced that it will be undertaking a 1 for 2 Entitlements Issue at $0.005 per share to raise approximately $1.028
million. In addition, one free attaching option for every new share will be issued, exercisable at one cent and expiring on 28 February 2019.
No other matters or circumstances have arisen since the end of the financial year that have significantly affected or may have a significant effect on the financial
operations of the Group, the financial performance of those operations or the financial position of the Group in the subsequent financial year.
Note 25 Related party transactions
Key Management Personnel
Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any
Director (executive or otherwise) of the entity are considered Key Management Personnel (refer Note 7).
Other related parties
Other related parties include entities controlled by the ultimate parent entity and entities over which key management personnel have joint control.
Transactions with related parties
Transactions with related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise
stated.
There were no related party transactions.
35
Notes to the consolidated financial statements
For the financial year ended 30 June 2017
Note 26 Financial risk management
The Group’s financial instruments consist mainly of deposits with banks, receivables and trade and other payables.
The totals of each category of financial instruments, measured in accordance with AASB139 as detailed in the accounting policies to these financial
statements are as follows :
Financial assets
Cash and cash equivalents
Other receivables
Other non-current receivables
Total financial assets
Financial liabilities
Financial liabilities at amortised costs - trade and other payables
Total financial liabilities
Consolidated
2017
$
2016
$
218,722
8,916
-
227,638
95,245
95,245
436,598
19,847
182,585
639,030
242,700
242,700
Specific financial risk exposures and Management
The main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate risk and
foreign currency risk. There have been no substantive changes in the types of risks the Group is exposed to, how these risks arise, or the Board’s objectives,
policies and processes for managing or measuring the risks from the previous period.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a
policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Group’s exposure to credit risks
are continuously monitored and controlled by counterparty limits that are reviewed and approved by the management on a regular basis. The Group does not
have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The credit risk on liquid
funds and derivative financial instruments is limited as the counterparties are banks with high credit ratings assigned by international credit rating agencies.
The carrying amount of financial assets recorded in the financial statements, net of any allowances
for losses, represent the Group’s maximum exposure to
credit risk.
Liquidity risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an appropriate liquidity risk management framework
for the management of the Group’s short, medium and long- term funding and liquidity management requirements. The Group manages liquidity risk by
maintaining adequate reserves and banking facilities by continuously monitoring forecast and actual cash flows and matching profiles of financial assets and
liabilities.
36
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 26 Financial risk management (continued)
The following table details the Group’s remaining contractual maturity for its financial liabilities and financial assets
Within 1 year
1 to 5 years
Over 5 years
Total
2017
2016
2017
2016
2017
2016
2017
2016
Consolidated
Financial liabilities due for
payment
Trade and other payable
95,245
242,700
Total contractual outflows
95,245
242,700
Financial assets cash
flow realisable
Cash and cash equivalents
218,722
436,598
-
-
-
-
-
-
Loans and other receivables
Other non-interest bearing
receivables
-
-
272,872
182,585
8,916
19,847
-
-
Total anticipated inflows
227,638
456,445
272,872
182,585
Net (outflow)/inflow on financial
instruments
132,393
213,745
272,872
182,585
-
-
-
-
-
-
-
-
-
-
-
-
-
-
95,245
95,245
242,700
242,700
218,722
436,598
272,872
182,585
8,916
19,847
500,510
639,030
405,265
396,330
Market risk
Interest rate risk
The Group’s exposure to market risk primarily consist of financial risks associated with changes in interest rates as detailed below. As the level of risk is low,
the Group does not use any derivatives to hedge its exposure. Market risks are managed through cash flow forecasts and sensitivity analysis on a regular basis.
The Group is exposed to interest rate risks as it holds funds at both fixed and variable interest rates. The risk is managed through the use of cash flow
forecasts supplemented by sensitivity analysis.
The Group currently holds no amounts of borrowed funds.
Interest rate sensitivity analysis
A sensitivity analysis has been determined based on the exposure to interest rates at reporting date with the stipulated change taking place at the beginning of
the financial year and held constant throughout the reporting period. A 50-basis point increase or decrease is used when reporting
interest rate risk internally
to key management personnel and represents management’s assessment of the possible change in interest rates.
Year ended 30 June 2017
+/- 0.5% in interest rates
Year ended 30 June 2016
+/- 0.5% in interest rates
There have been no changes in any methods or assumptions used to prepare the above analysis from the previous year.
Consolidated
Profit
$
1,094
2,183
Equity
$
1,094
2,183
37
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 26 Financial risk management (continued)
Fair value
The Directors consider that the carrying amounts of financial assets and financial liabilities recorded at cost less any accumulated impairments in the
financial statements approximates their fair values.
The fair values of financial assets and financial liabilities are determined as follows:
• Holdings in unlisted shares are measured at cost less any impairments. The directors consider that no other measure could be used reliably;
• Other financial assets and financial liabilities are determined in accordance with generally accepted pricing models.
Fair value estimation
The fair value of financial assets and financial liabilities are presented in the following table and can be compared to their carrying amounts as presented
in the Statement of Financial Position. Fair value is the amount at which an asset could be exchanged, or a liability settled between knowledgeable,
willing parties in an arm’s length transaction.
Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material impact on the
amounts estimated. Areas of judgment and the assumptions have been detailed below. Where possible, valuation information used to calculate fair value is
extracted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values for listed securities are
obtained from quoted market bid prices. Where securities are unlisted and no market quotes are available, fair value is obtained using discounted cash flow
analysis and other valuation techniques commonly used by market participants.
Differences between fair values and carrying amounts of financial instruments with fixed interest rates are due to the change in discount rates being
applied by the market since their initial recognition by the Group. Most of these instruments, which are carried at amortised cost (i.e. term receivables, held-
to-maturity assets), are to be held until maturity and therefore the fair value figures calculated bear little relevance to the Group.
2017
2016
Carrying amount
Fair value
Carrying amount
Fair value
Financial assets
Cash and cash equivalents
Loans and other receivables
Other non-interest bearing receivables
Total financial assets
Financial liabilities
Trade and other payables
Total financial liabilities
218,722
239,214
8,916
466,852
95,245
95,245
218,722
239,214
8,916
466,852
95,245
95,245
436,598
182,585
19,847
639,030
242,700
242,700
436,598
182,585
19,847
639,030
242,700
242,700
The fair values disclosed in the above table have been determined based on the following methodologies:
Cash and cash equivalents, trade and other receivables and trade and other payables are short-term instruments in nature whose carrying amount
to fair value. Trade and other payables excludes amounts provided for annual leave, which is outside the scope of AASB 139.
is equivalent
Financial Instruments Measured at Fair Value
The financial instruments recognised at fair value in the Statement of Financial position have been analysed and classified using a fair value hierarchy
reflecting the significance of the inputs used in making the measurements. The fair value hierarchy consists of the following levels:
- quoted prices in active markets for identical assets or liabilities (Level 1)
- inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from
prices) (Level 2); and
- inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
38
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2017
Note 26 Financial risk management (continued)
Consolidated
2017
Financial assets
Cash and cash equivalents
Cash on hand and fixed interest deposits
2016
Financial assets
Cash and cash equivalents
Cash on hand and fixed interest deposits
Note 27 Reserves
Level 1
$
Level 2
$
Level 3
$
Total
$
-
-
218,722
436,598
-
-
218,722
436,598
Equity - settled benefits reserve
The equity-settled benefits reserve is used to recognise the fair value options issued to Directors, employees and third parties.
Balance at beginning of financial year
Share-based payments reclassified
Balance at end of financial year
Note 28 Company details
Registered office of the Company:
Level 6, 412 Collins Street,
Melbourne, Victoria.
Principal place of business:
4 Bryant Street,
Corryong, Victoria.
Share Registry:
Link Market Services Limited
Level 1, 333 Collins Street
Melbourne Vic 3000
Phone: +61 1300 554 474
Fax: +61 2 9287 0303
Consolidated
2017
$
193,060
(182,050)
11,010
2016
$
386,158
(193,098)
193,060
39
Directors’ Declaration
ln accordance with a resolution of the directors of Dart Mining NL, the Directors of the Company declare that:
1 the financial statements and notes, as set out on pages 14 to 39, are in accordance with the Corporations Act 2001 and:
(a) comply with Accounting Standards which, as stated in accounting policy note 2 to the financial statements, constitutes compliance with
International Financial Reporting Standards (lFRS); and
(b) give a true and fair view of the financial position as at 30 June 2017 and of the performance for the year ended on that date of the
consolidated group:
2 in the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable;
3 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
The Company and a wholly-owned subsidiary, Dart Resources Pty Ltd, have entered into a deed of cross guarantee under which the Company and
subsidiary guarantee the debts of each other.
its
At the date of this declaration, there are reasonable grounds to believe that the companies which are party to this deed of cross guarantee will be
able to meet any obligations or liabilities to which they are, or may become subject to, by virtue of the deed.
James Chirnside
Chairman
Melbourne
20 September 2017
Luke Robinson
Director
Russell Simpson
Director
40
41
42
ASX Addititional Information
Additional information required by the Australian Securities Exchange Ltd Listing Rules and not disclosed elsewhere in this report is as follows. The
information is current as at 5 September 2017.
Twenty largest shareholders
Rank
Name of holder
1
2
3
4
5
6
7
8
9
10
11
12
13
13
14
15
16
17
18
19
20
20
20
20
20
20
20
KALAN SEVEN PTY LTD
MR RUSSELL SIMPSON & MRS ELIZABETH SIMPSON & MS MEREDITH SIMPSON
MR RUSSELL SIMPSON & MRS ELIZABETH SIMPSON & MS MEREDITH SIMPSON
MR PHILIP ALAN KENNETH NAYLOR & MRS ANDREA NAYLOR
MR PAUL DOMINIC FERGUSON
SPECIALISED ALLOYS SERVICES PTY LTD
MR DUANE LAWRENCE HICKS
J P MORGAN NOMINEES AUSTRALIA LIMITED
PICTON COVE PTY LTD
MR DANNY EU HUAT KHOO
CITICORP NOMINEES PTY LIMITED
NORTH EAST GEOLOGICAL CONTRACTORS PTY LTD
MR VINCENZO BRIZZI & MRS RITA LUCIA BRIZZI
MR GRAHAM BRADSHAW
HERITAGE PACIFIC PTY LTD
MRS MEREDITH HILARY LYONS
B HOCHWIMMER & ASSOCIATES PTY LTD
COVEN-SA LTD
MR RICHARD ANTHONY DOWNIE
RAMTEX PTY LTD
ARISION PTY LTD
MR JAMES PATRICK TUITE & MRS WENDY TUITE
MR GRAHAM LAYTON ROSEN TEAL
ESSELMONT PTY LIMITED
MR PHILIP ALAN KENNETH NAYLOR & MR RAYMOND JAMES SHAW
MISS BARBARA MARY FREEMAN
COMSEC NOMINEES PTY LIMITED
Total
Shares on issue
Ordinary fully paid shares
411,485,049
Substantial Shareholders
Substantial shareholders as advised to the Company are set out below:
Name
Mr P.A.K. Naylor
MR RUSSELL SIMPSON & MRS ELIZABETH SIMPSON & MS MEREDITH SIMPSON
No. of ordinary
shares held
Issued
Capital
%
42,615,801
10.36
16,716,464
15,670,331
14,318,481
10,835,083
9,990,099
9,815,246
8,678,814
7,692,320
5,547,000
5,004,469
4,459,179
4,000,000
4,000,000
3,500,000
3,463,173
3,250,483
3,200,000
3,076,961
3,076,930
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
3,000,000
4.06
3.81
3.48
2.63
2.43
2.39
2.11
1.87
1.26
1.22
1.08
0.97
0.97
0.85
0.84
0.79
0.78
0.75
0.75
0.73
0.73
0.73
0.73
0.73
0.73
0.04
199,910,834
48.58
No. of Ordinary
Shares
Percentage of
Issued Capital
63,691,763
32,386,795
15.5
7.9
43
ASX Addititional Information
Distribution of member holdings
Size of holding
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total Holders
Ordinary shares
No of holders
No of shares
55
82
213
650
372
1,372
9,501
312,344
1,851,130
27,023,950
382,288,124
411,485,049
The number of security investors holding less than a marketable parcel of securities is 932 with a combined total of 22,566,514 securities.
Voting Rights
All shares carry one vote per share without restriction.
Tenement schedule
Tenement number
Licensed holder
Name & region of subject of licence
EL 4724
EL 4726
EL 5467
EL 5468
EL 5058
EL 5194
ML 5559
EL 6277
EL 6300
EL 4697
EL 5315
MIN 5538
MIN 5306
MIN 5246
Dart Mining NL
Buckland, North-east Victoria including Fairleys prospect
Dart Mining NL
Dart, North-east Victoria including Mountain View, Elliot, Morgan and Unicorn prospects
Dart Mining NL
McCormack’s, North-east Victoria.
Dart Mining NL
Upper Murray, North-east Victoria.
Dart Mining NL
Cudgewa and Koetong, North-east Victoria abutting Dart EL
Dart Mining NL
Mt. Alfred, North-east Victoria abutting Dart EL
Dart Mining NL
Mountain View, North-east Victoria
Dart Mining NL
Empress, North-east Victoria
Dart Mining NL
Eskdale, North-east Victoria
Northern Mine
Ventures
Northern Mine
Beechworth, North-east Victoria (joint venture tenement)
Mitta, North-east Victoria (joint venture tenement)
Northern Mine
Rushworth, Central Victoria (joint venture tenement)
Northern Mine
Rushworth, Central Victoria (joint venture tenement)
Northern Mine
Rushworth, Central Victoria (joint venture tenement)
44