ABN 91 124 752 745
Annual Report 2013
Contents
Chairman’s Report
2013 Highlights Summary
Review of Operations
Sustainable Development
Tenement Schedule
Corporate Governance Statement
Directors’ Report
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 Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
Corporate Directory
1
2
3-26
27
28
29-33
34-40
41
42
43
44
45
46-67
68
69-70
71-72
73
Chairman’s Report
Dear Fellow Shareholders,
GBM Resources Limited underwent significant change over the last 12 months as we completed a strategic review
of our operations to better position the company for growth through project development, and to preserve and
grow shareholder value in a challenging market.
With backing from our major Singaporean shareholders, the Company commenced a review for near-term gold
production acquisition opportunities in the region with the objective of becoming a low-cost gold producer and
to take advantage of the strong growth potential of South East Asia.
Acquiring 40% of Angka Alamjaya Sdn Bhd (AASB), which holds the Lubuk Mandi Gold Mine in Peninsular Malaysia,
for 15% of GBM shares, in August this year, offers the Company potential for early cashflow from the re-treatment
of tailings before moving to hard rock mining.
Commissioning a processing plant at the Lubuk Mandi Gold Mine and production of gold concentrate could occur
as early as March 2014. Both parties also intend to complete an Initial Public Offering of AASB on the Singapore
Stock Exchange during 2014.
This strategic review also enabled us to implement major expenditure reduction initiatives across the operations.
The Company has focussed its priorities on:
n Continue field programmes on the Mount Morgan Gold-Copper Project, targeting the Sandy Creek, Smelter
Return and Oaky Creek prospects to progress them as drill ready targets this year.
n Drilling of priority prospects including Bronzewing Bore (Bungalien Project) and the Mount Margaret West Project
within the farm-in Joint Venture area. GBM has secured an approved $2.5 million budget, for the 12 months
to 31 March 2014, on the farm-in projects with Japanese trading house partners, Pan Pacific Copper Co. Ltd.
and Mitsui & Co.
n Continue to investigate funding opportunities to progress the Pre-Feasibility Studies for the Milo IOCG-REE
Project.
n Major expenditure reduction initiatives implemented which achieved further annualised savings of $600,000.
This includes salary reductions for executive directors, senior staff and reductions in other external service costs,
so as to prioritise exploration expenditure.
The Board and management believes it is important to ensure that it is taking all possible steps to preserve
shareholder value and believe we are well positioned to fast-track to production and grow our asset base and
to deliver shareholders long-term value creation.
On behalf of the Board, I would like to acknowledge and thank our shareholders for their support during this pivotal
year for the Company.
We look forward to sharing further updates on the progress of our development plans during the year ahead.
Peter Thompson
Executive Chairman
GBM Resources Annual Report 2013
1
2013 Highlights Summary
The Company completed a strategic assessment of its activities during the year and commenced a review for
near-term gold production acquisition opportunities with the objective of becoming a low-cost gold producer and
to take advantage of the strong growth potential of South East Asia.
This resulted in the Company acquiring 40% of Lubuk Mandi Gold Mine in Peninsular Malaysia with Angka Alamjaya
Sdn Bhd (AASB), which holds the project, for 15% of GBM shares in August this year. The Lubuk Mandi Gold project
offers the potential for early production by the re-treatment of tailings, progressing to hard rock mining.
A zero harm record in safety and environment during 2013 is in line with the Company’s zero harm policy, and
is a record that the management and board of GBM are rightly proud of. We continue to improve our safety and
environmental management systems while exploring efficiently, aiming to discover and develop projects in the
shortest possible timeframe.
Exploration highlights for the 2013 financial year included:
n Zero LTI’s and Environmental incidents during the year.
n Acquisition of a 40% stake in the Lubuk Mandi gold project in Malaysia.
n Completion of a development plan for Lubuk Mandi showing an exploration target of up to 440,000
ounces of gold** and potential for early cashflow from tailings retreatment.
n Positive scoping study completed for the polymetallic Milo IOCG-REEY deposit.
n Maiden CuEq resource announced for the Milo Project.
n Discovery of copper mineralization associated with an altered hydrothermal breccia at Oakey Creek
in the Mount Morgan Project area.
n
Intersection of anomalous copper mineralization in the first scout hole in the Mount Margaret Project
area near Cloncurry.
Pan Pacific Copper and Mitsui JV representatives in the field with GBM exploration staff.
2 GBM Resources Annual Report 2013
Review of Operations
1.0 Exploration Strategy
Corporate Goal
GBM is focused on delivery of shareholder value through
discovery or acquisition and development of world class
gold and copper deposits. The company is determined
to achieve this in a safe and responsible manner with the
highest regard for the environment and communities in
which we work.
Exploration strategy
Since listing in October 2007, GBM’s Board has
maintained a constant focus on creating shareholder
wealth through discovery and development of world
class gold and copper gold deposits. During the past
twelve months the Board, recognising the continued
strength of gold as a commodity and changing economic
climate for exploration companies, has further honed
the focus on gold. Long term forecasts for price and
demand of both primary target commodities copper and
gold remain sound at a time when other commodities
are forecast to be approaching oversupply and prices
are falling. As a result the company has identified
and proceeded to acquire a significant stake in a
near production gold asset in an exciting and under-
explored gold province, the Lubuk Mandi Gold Project
in Peninsular Malaysia. At the time of writing, resource
drilling was advancing in parallel with a pre-feasibility
study to treat mine tailings from previous operations, and
to test extensions to gold mineralisation which yielded
over 100,000 ounces in previous open pit mining.
The Board also recognise that during the exploration
process, mineralisation enriched in other commodities
may also be identified providing further opportunities to
add additional shareholder value. This was highlighted
last year with the implementation of a scoping study
covering the Milo IOCG REE deposit in Queensland. The
results of this study are summarised later in this report.
Further opportunities identified include extensive REE
mineralisation associated with the Milo IOCG system,
significant tungsten and molybdenum intersections at the
Yea project, extensive graphite occurrences in the Mount
Margaret Project north of Cloncurry and Phosphate at
the Bungalien Project south of Mt Isa.
GBM is committed to continuing to actively pursue
discovery and development as the means to create
shareholder value. Despite challenging market
conditions, the company has succeeded in maintaining
exploration and development activity at a high level as
part of maximising the potential for near term discovery
(see Figure 2).
The current downturn in mineral exploration has, and
will continue to result in a range of exploration and
development opportunities emerging for companies
positioned to take advantage of adverse market
conditions. The Board annually reviews the key drivers
of exploration success for GBM. The Board believes that
the eight points listed below are fundamental to ensuring
continued success in discovering new economic mineral
deposits.
These key drivers are outlined as follows:
Identifying opportunities for early production
and cashflow in deposits with potential for major
resource growth.
Acquisition of a significant interest in the Lubuk Mandi
Gold Project in the under-explored Eastern Gold Belt of
Peninsular Malaysia is only the first step in this process.
Current difficult conditions for explorers may present
further opportunities for those with access to funding.
Focus on the discovery of world class gold and
copper gold deposits.
Targeting mineralisation styles capable of delivering
large deposits in commodities with sound historical
and projected demand.
Discovery of a new deposit(s) is the key to adding
significant value to shareholders.
Recently acquired interests in an emerging gold province
compliment previous success in our current exploration
assets. GBM is well on the way to achieving this
outcome.
Competent, rapid and cost effective evaluation
of discoveries.
Ensuring that evaluation of discoveries is cost effective
and timely is essential to unlock value for shareholders
in the most favourable timeframe.
Applying a systems approach to mineral exploration.
The importance of this approach, in ‘seeing what others
have not’, cannot be emphasised too strongly. In many
instances previous exploration has focussed on small
scale prospect level evaluation and failed to understand
the broader geological environment or system. This is
essential to determine the likelihood of major deposits
occurring, and provide vectors to their location and style.
Exploring in regions with historic production offers
a higher probability of new discovery.
Exploration success in recent decades has been strongly
biased to regions with an established mining history.
GBM’s current projects lie in such regions or areas where
recent geological interpretation indicates an extension
of known mineral provinces. Our focus to date has
been toward regions which, apart from being highly
prospective from a mineral exploration perspective,
offer the opportunity to acquire quality tenure in areas
with good infrastructure and access to an experienced
workforce.
GBM Resources Annual Report 2013
3
Review of Operations
Strengthen GBM’s executive and technical
capabilities.
Our technical team, along with a group of specialist
consultants, form the core of GBM’s business and is
essential for successful mineral exploration. The Board
believes that highly experienced and highly motivated
people are the cornerstone for successful exploration
and will be vital in realising GBM’s development and
growth plans in the coming years. The intellectual
capacity to identify opportunities to apply new
technology in exploration, mining and processing will
provide GBM with sound growth options.
Maximising in-ground exploration expenditure.
GBM continues to operate from a small exploration base
in regional Victoria, minimising company overheads.
2.0 Introduction
GBM listed on the ASX in 2007 and now holds an
extensive portfolio of mineral exploration tenements
including licences and applications covering an area of
greater than 5,176 square kilometres in project areas in
Queensland and Victoria. Exploration remains focussed
on the discovery of significant gold and copper-gold
deposits. The combination of location in prospective
mineral provinces, high quality targets, innovative
technology and a high level of exploration activity,
provide GBM with excellent prospects for the discovery
of one or more world class deposits within this high
quality tenement package.
The acquisition of a 40% stake in the Lubuk Mandi
Gold Project in Peninsular Malaysia re-enforces GBM’s
commitment to development and early production, and
also marks a willingness to move outside Australia when
the right opportunity is identified.
The completion of a revised resource, including a
copper-uranium-molybdenite resource, and a positive
scoping study for the Milo IOCG REE Project was
a major milestone for the company. Based on the
assumptions made in this study, which was released
to ASX on 22 November 2012, Milo has the potential
to generate pre tax between $701M (base case) to
$1,160M (upside case) net cashflow after capital.
Figure 1: GBM Resources Project Locations.
4 GBM Resources Annual Report 2013
3.0 Exploration Expenditure and Assets
In the year to 30 June 2013, GBM has completed
drilling programs in Queensland on the FC4S prospect
(Mt Margaret), Bronzewing Bore and Boomerang
Bore prospects (Bungalien), Chumvale prospect
(Brightlands) along with the completion of a scout drill
hole on the Landing Ground prospect (Grassy Bore)
which commenced in June 2012. A total of 5 diamond
drillholes, 3 reverse circulation drill holes, 2 reverse
circulation pre-collared diamond holes and 2 diamond
holes with rotary mud pre-collar have been completed
for totals of 414 metres of RC, 4,408metres of diamond
core and 228 metres of rotary mud respectively.
Soil sampling has been completed at the Milo South
prospect (Brightlands), Smelter Return and Oakey Creek
prospects (Mt Morgan), Malbon2 prospect (EPM 18208),
FC2 and FC12 prospects (Mt Margaret) and Anomalies
E, B, H, I, D, G and F in the Willaura region for a total of
1,014 soil samples and 3001 MMI samples. Rock chip
sampling was undertaken at Oakey Creek and Smelter
Return for a total of 199 rock chip samples. A significant
database relating to these tenements continues to grow
as new tenements are acquired and data becomes
available.
Total exploration expenditure on the Company’s
tenements for 2013 was $5.8 million (including $3.5
million of farm-in funding) compared to a total of $6.9
million in the 2012 financial year. GBM’s exploration
budget has maintained a growth trend since listing –
reflecting the strength of GBM’s exploration targets.
During 2013, activity has seen significant advancement
of the Milo project, stronger focus on gold and continued
strong support from our farm-in partners in other projects
in the Cloncurry Region under the $55m exploration
‘Farm-in’ Agreement between GBM and the Japanese
companies Pan Pacific Copper and Mitsui Corporation.
GBM’s portfolio of mineral exploration assets includes
two inferred resources; the Milo IOCG REEYU Project
with 187Mt containing 113,000t of REEYO and the
Drilling of tailings dam at Lubuk Mandi in Malaysia.
Malmsbury Gold Project with 800,000t containing
over 100,000 ounces of Au. In addition a number of
prospects are essentially ready for drilling with well
defined targets based on geology, geochemistry and
geophysics suggesting that further resource additions
are likely.
GBM’s exploration portfolio has evolved significantly
this year with further progress from targets that are
essentially at conceptual or geological stage to those
with strong results or resources moving closer to
development. In addition, geological and geochemical
data collected in the Milo area support the existence
of a large mineralising system with potential to host
significant additional resources. The Company remains
committed to maximising the ‘in-ground’ component
of its exploration funding as a means of increasing the
likelihood of further resource additions.
Figure 2: GBM annual exploration summary.
GBM Resources Annual Report 2013
5
Review of Operations
4.0 Lubuk Mandi Gold Mine Malaysia
GBM announced on 11 June 2013 that it had entered
a binding agreement to acquire a 40% interest in Anka
Alamjaya Sdn Bhd, a sole purpose Malaysian company
which owns mining rights to the Lubuk Mandi Gold
Project in Malaysia. This agreement was ratified at a
meeting of GBM shareholders on 22 July 2013. Lubuk
Mandi is located approximately 2 kilometres from the
coast near Kuala Terengganu in Terengganu State,
Peninsular Malaysia. Malaysia has a long history of
mining, a skilled workforce and stable government.
The Lubuk Mandi Gold Mine operated as an open cut
mine between 1993 and 1999 with recorded production
of 108,000 ounces of gold. While gold has been known
in Terengganu for centuries, alluvial mining at Lubuk
Mandi appears to have only commenced in 1989,
and virtually no modern exploration for gold has been
conducted in this region which is now recognised as
part of a new gold belt in Malaysia. Following completion
of a due diligence study and compilation of a Project
Development Plan in May, GBM has identified three
main exploration targets**:
n
Tailings dams containing a target of between 1Mt
at 0.7 g/t Au containing 23,000 ounces of gold
and 1.4Mt at 0.9 g/t Au containing 38,000 ounces
of gold.
n Main Zone hosting a target of between 370,000
t averaging 2.9 g/t Au containing 35,000 ounces
of gold and 1,100,000 t averaging 3.6 g/t Au
containing 127,000 ounces of gold.
n East Zone target of between 1,440,000 t averaging
2.5 g/t Au containing 116,000 ounces of gold
and 2,400,000 t averaging 3.6 g/t Au containing
280,000 ounces of gold.
Figure 3: satellite image of current day Lubuk Mandi
Mine Site showing lease outlines in red.
Dendritic native gold in quartz from Lubuk Mandi.
Sample M446 (field of view approx 5mm)
Henney et al 1994 pp33, Characterisation of Gold
from Lubuk Mandi, British Geological Survey
Technical Report WC94021.
Figure 4: Lubuk Mandi mine layout plan
showing exploration target locations.
6 GBM Resources Annual Report 2013
Based on a review of available data, the potential early
route to gold production from Lubuk Mandi is through
retreatment of tailings followed by recommencement
of hardrock mining should resources and reserves
be defined though appropriate testing programmes.
A preliminary exploration and resource definition
programme has been designed and budgeted for all
three potential ore sources.
Review of available information has allowed a conceptual
process flowchart for tailings treatment to be developed.
If confirmed by metallurgical testwork, this would involve
reclaim of tailings from the tailings storage facility on
site, regrinding, flotation and sale of concentrate for final
gold production.
At the time of writing drilling and metallurgical testwork
on the tailings dam was in progress.
**It should be noted that this is an exploration target only,
potential quantity and grade is conceptual in nature,
there has been insufficient exploration to define an
Mineral Resource and it is uncertain if further exploration
will result in the determination of a Mineral Resource.
5.0 Milo IOCG REE Project
The Milo Project on Brightlands EPM14416 is located
due east of Mount Isa, and just 20 kilometres west
of Cloncurry on the Barkley Highway, far northwest
Queensland.
The mineralization is hosted in a northwest striking,
highly brecciated and altered rock coincident with
magnetic highs within a broader magnetic low anomaly
that has been interpreted as a possible buried granite
source for the IOCG & REE mineralisation. The REE
and yttrium mineralisation (REEY) appears to overprint
and envelope the IOCG style Cu-Au-Ag-Mo-U-Co
mineralisation. Drilling shows that the mineralization dips
steeply to the east, is possibly fault related, and that
higher grade copper mineralization plunges to the north.
The mineralization at Milo is considered to be closely
linked to the Cloncurry Flexure, a deep structural feature
in the region.
A total of 32 drillholes have been drilled on Milo so far,
with each phase of drilling extending the main resource
to the north and south. The drilling has delineated
continuous Cu and REE mineralization over a strike
length of 1 kilometre and up to 200 metres wide.
The resource is still open-ended to the north, south
and at depth.
Figure 5: Milo conceptual pit outline over soil geochemistry highlighting the location
of additional high priority target area to the west of the known deposit.
GBM Resources Annual Report 2013
7
Review of Operations
The drilling program intersected some high grade Cu
mineralisation including 2 metres @ 6.19% Cu at 163
metres downhole in MIL015, one of the most southern
drilled holes.
A total of 1594 soil samples and 295 rock samples have
been collected on the Milo prospect to date. From the
data collected it is possible that the total strike length
of the Milo mineralisation could extend for up to two
kilometres.
Soil sampling identified a number of soil geochemical
anomalies within the Milo Prospect area. A number of
parallel zones of coincident Cu-Au-La soil anomalism
have been defined adjacent to drillhole BTD014 where
peak downhole grades of 4,550 ppm Cu, 650ppm La,
and 0.7 ppm Au were returned. It is likely that these
anomalous zones will extend further with additional soil
sampling, that they may be structurally related, and that
drill testing may discover new mineralisation. Additionally,
there is a large Cu-La soil geochemical anomaly west
of the Milo prospect that returned peak assay results
of 1.44% Cu, 0.35 ppm Au, and 120 ppm La that is
associated with a coincident strong magnetic and
topographic high.
The Milo mineralisation is still open-ended to the north,
south and at depth. Further soil sampling and follow-
up drilling will be required to determine the extent of
mineralization.
Milo Scoping Study
The in-depth study released by GBM in November 2012
highlighted that Milo has the potential to become a
mid-tier producer of rare earth oxide products with key
credits for copper, phosphate and uranium. Average
annual production of key commodities is estimated
to be: 3,500t of TREEYO products, 5,300t of copper,
173,000t of phosphate P205 (35%) and 927,000 lbs.
of uranium U3O8.
Key outcomes of the scoping study are:
n A maiden Cu-equivalent inferred JORC resource
estimate of 88 million tonnes containing around
97,000 tonnes of Cu and 14 million pounds of
uranium oxide
n A TREEYO inferred JORC resource of 176 million
tonnes @ 620ppm and 0.75% P2O5
n A long term net cash flow of between A$701 million
– A$1,160 million over an 11 year mine life.
n Mining will be a low cost conventional open-cut with
a crushing rate of 10 Mtpa and onsite processing
n Concentrates will be railed to Townsville and a
scenario is that the REE concentrate can be further
processed in Townsville to produce 99% pure REOs
n
100% GBM owner/operator and funded
Uranium is a significant credit for the Milo Project, and
the announcement by the Queensland Government that
it is moving to allow the recommencement of uranium
mining in that State is very significant for the project.
Figure 6: Proposed Mine layout for Milo Project.
8 GBM Resources Annual Report 2013
The Milo inferred resource contains over 14 Mlbs of
U3O8 making it one of the largest undeveloped uranium
deposits in Queensland.
The scoping study was undertaken on the Milo Deposit
by independent consulting group Mining One Pty Ltd.
The study confirmed the potential of the Milo Project to
be a technically and financially viable project forecast
to have strong operating margins that could deliver
significant cashflows over an initial 11 year mine life.
The study assumed the extraction method to be
conventional open pit mining, with onsite processing
facilities producing concentrates of rare earth elements
(REE), copper (Cu) and phosphate rock (P2O5) with
relatively minor quantities of silver (Ag) and gold (Au)
bullion. The rare earth concentrates would be further
processed to produce REE Oxide products. The
payable commodities considered are a suite of rare
earth elements, copper, gold, silver, molybdenum (Mo),
uranium (U) and phosphate rock.
Core Resources Pty Ltd was contracted to develop a
potential processing flow sheet, and calculate costs and
recoveries based on metallurgical test work conducted
to date. The flow sheet essentially consists of a single
rare earth/apatite (phosphate) processing stream
with a separate flotation circuit to produce a copper
concentrate containing copper, gold, silver, molybdenum
and a separate uranium product. The conceptual flow
sheet includes downstream rare earth separation for
upgrading the rare earth concentrate into separate rare
earth oxides or a mixed rare earth oxide.
was sampled at largely 1 metre intervals and assayed for
a comprehensive suite of elements.
Milo is a large IOCG breccia style deposit with a
TREEYO-enriched halo. Base and precious metal (Cu-
Au-Ag-Mo-Co-U) mineralisation occurs as moderate to
steeply east dipping, sulphide rich breccia zones striking
northwest. The mineralogy of this domain includes
massive to semi-massive pyrite with lesser amounts
of (in order of abundance) pyrrhotite, chalcopyrite and
sphalerite. The sulphide rich zone forms a large, well
defined body up to 200 metres wide. Base and precious
metal grades are variable within the sulphide rich zone.
A zone of TREEYO-P2O5 enrichment overprints and
forms a halo to the base metal mineralisation. The REE
zone occurs as a moderate to steeply east dipping,
northwest striking zone with a width of 100m to 200m.
This zone is very continuous at low grades (<200
ppm TREEYO) and has a simple shape. The TREEYO
(total rare earth elements and yttrium as oxides) and
phosphate (P2O5) resource above a 300ppm TREEYO
cutoff is estimated as 176Mt at 620ppm TREEYO and
0.75% P2O5.
As a result of the 2012 drilling campaigns, the Inferred
JORC resource for the REEY component of the Milo
Project from the maiden 103 million tonnes at 760ppm
for approximately 82,500 tonnes of TREEYO (based on a
400ppm cut-off grade) increased to 187 million tonnes at
610ppm for 113,360 tonnes (based on a 300ppm cut-off
grade). This represents an 82% increase in total resource
tonnes and a 25% increase in the total REEYO tonnes.
Milo Mineral Resources
The mineral resource estimates were based on data from
31 holes drilled in a roughly 100m by 50m grid pattern.
These holes total 11,572m, comprising 3,503m of RC
drilling and 8,069m of DD drilling. Of the total, 9,878m
During the 2013 financial year a maiden copper equivalent
resource was announced. This inferred resource is
estimated at a 0.1% copper equivalent cutoff as 88Mt at
0.11% Cu, 0.04g/t Au, 1.6g/t Ag, 65ppm Mo, 130ppm
Co and 60ppm U, containing 300Kt of CuEq metal.
cutoff
(TREEYO
ppm)
tonnes
(Mt)
TREEYO
(ppm, t)
P2O5
(%, t)
CeO2
(ppm, t)
La2O3
(ppm, t)
Nd2O3
(ppm, t)
Pr2O3
(ppm, t)
Sm2O3
(ppm, t)
Eu2O3
(ppm, t)
Gd2O3
(ppm, t)
Y2O3
(ppm, t)
Dy2O3
(ppm, t)
Er2O3
(ppm, t)
Others
(ppm, t)
LREEO
HREEY
Grades
300
176
620
0.75
260
150
80
24
12
4
10
52
8
5
9
Contained Metal
108,000 1,330,000 46,140 26,460 13,850 4,230
2,170
710
1,780
9,150
1,480
850
1,620
Table 1: Milo Inferred TREEYO resource, at a 300ppm TREEYO cutoff. Red designates elements assessed
as being in critical supply by the US Dept. of Energy, Dec 2011: Critical Materials Strategy, P4.
cutoff
(CuEQ %)
0.10
tonnes
(Mt)
88.4
CuEQ
(%, t)
0.34
Au
(ppm, ozs)
0.04
Cu
(ppm, t)
1090
Ag
(ppm, ozs)
Mo
(ppm/t)
1.63
65
Co
(ppm/t)
130
U3O8
(ppm/Mlbs)
72
301,000
126,000
96,500
4,638,000
5,700
11,700
14.0
Resource
Contained Metal
Table 2: Inferred copper equivalent resource (above 0.1% copper equivalent).
GBM Resources Annual Report 2013
9
Review of Operations
Diamond drilling in rugged terrain at Milo IOCG Project near Cloncurry in Queensland.
This resource remains open at depth and along strike. In addition, recent geochemical surveys confirm the existence
of a number of additional targets in the Milo area with similar geochemical signatures. In the case of the Milo West
target, the geochemical response is more intense than the Milo area itself. These anomalies represent high priority
targets for future exploration.
For a complete summary please refer to ASX
announcement dated 22 November 2012,
’Scoping Study Confirms Strong Commercial
Opportunity at GBM’s Milo IOCG-REE Project’.
The Milo Scoping Study by its nature provides
preliminary estimates that are not as reliable or
certain as a Pre-feasibility or Feasibility study
outcomes. The estimates used in the scoping
study are subject to completion of resource drill
out and more comprehensive studies that include,
detailed mine designs, metallurgical testwork, site
construction and detailed capital and operating
cost analysis. The scoping study is designed to +/-
40% level of accuracy.
The Scoping Study findings are not future revenue
or operating forecasts. The study was intended to
give shareholders and investors an indication of the
scope and magnitude of the Milo Project
10 GBM Resources Annual Report 2013
Euhedral quartz and pyrite crystals in mineralised drillcore
from the Milo Project.
3D Map
Figure 7: Milo Resource Model within preliminary open pit shell
(red REE 100ppm resource blocks, green 0.1 CuEq resource blocks).
Figure 8: Milo proposed process flowchart.
GBM Resources Annual Report 2013 11
Review of Operations
6.0 Iron-Oxide-Copper-Gold (IOCG) Style Projects
in the Mount Isa Region
altered mafic and igneous rocks in the basement
containing minor Cu locally.
During 2013 the Company maintained a high level of
activity in exploration for IOCG style deposits in the
North West Mineral Province (Mount Isa Region) of
Queensland. This included GBM’s scoping study of the
emerging Milo System, and activities conducted as part
of a major Farm In Agreement with Pan Pacific Copper
and Mitsui (through their Australian subsidiary, Cloncurry
Exploration and Development Pty Ltd (‘CED’)) over the
Bungalien, Mount Margaret West, Talawanta-Grassy
Bore and Chumvale Breccia Projects.
The Mount Isa area has a long mining history and
supports an active and expanding mining community
providing a close-by skilled workforce and infrastructure
for exploration and future mining developments. The
prospectivity of the district has been enhanced by
discoveries made during the recent mineral exploration
boom in the Mt Isa-Cloncurry area that are now moving
into the development stage (i.e. Rocklands, Merlin,
Mount Margaret deposits).
Exploration on the projects which form part of the
Farm In Agreement with CED included extensive use of
geophysical surveys including gravity, 2DIP, 3DIP, MT,
and down-hole IP and EM. IOCG-style alteration and
low-grade mineralisation was intersected in two holes
at the Bronzewing Bore prospect that had been targeted
via the results of a 3DIP survey. A 3D resistivity model
created from the results of an MT survey at the same
prospect has identified a pair of untested targets in the
vicinity of the successful 2011 hole BNG001. Modelling
of MT results from a survey at the FC4_South prospect
in the Mount Margaret area has also pinpointed several
exciting drill targets for follow up. Gravity surveys over
the Burke Bore area in Bungalien and a number of
Mount Margaret prospects have helped to identify a
series of potential drill targets beneath shallow cover.
The 2012 exploration program included 5,658m of
drilling at 5 different prospects, namely: Bronzewing
Bore, Boomerang Bore, Chumvale, FC4S and FC2W,
along with the completion of TGD005 in early July
2012 on the Landing Ground prospect (which was
included in last years’ Annual report). The drill program
has produced further evidence of a large IOCG system
(BNG005 in 2012) following discovery of IOCG style
mineralisation at Bronzewing Bore (BNG001 2011)
beneath some 350-400 metres of Cambrian Georgina
Basin cover. This was again repeated at the Mt Margaret
project with the discovery of very encouraging IOCG
style mineralisation (FC4_South – MMA001 2012) just
north of Ernest Henry Mine beneath some 60m of
Carpentaria sediment cover. Drilling of two scout holes
into the Landing Ground Prospect in the Grassy Bore
tenement revealed magnetite-bearing hydrothermally-
12 GBM Resources Annual Report 2013
GBM began an extensive wide-spaced Mobile Metal Ion
(MMI) partial leach soil sampling program (1601 samples
collected) over a number of prospects. This geochemical
technique has the potential to detect buried sulphide
deposits through overlying cover. The results received
to date suggest that this will be an important tool in
assisting identification of highly prospective areas on
the tenements.
In summary, the multi-faceted and strategic
exploration program has confirmed the existence of
large mineralising systems (Bronzewing Bore Cu-Au,
FC4_South Cu-Au) and identified potentially fertile
hydrothermal systems (e.g. landing Ground) while
cutting-edge geophysical surveys and soil geochemistry
have provided a number of exciting drill targets for
follow up.
Figure 9: Mt Isa Inlier Project Location Plan.
Open terrain in the Bronzewing Bore target area looking across
to hills on the Fountain Gate Fault in the distance.
6.1 Brightlands Project (EPM14416, EPM18454,
EPM18453, EPM(A)18672, EPM(A)18051)
Chumvale Prospect
(Project is part of the CED Farm in Agreement)
The project area consists of an 8km2 block within the
larger Brightlands tenement (EPM 14416) that is held
by GBM Resources.
The project area covers a prominent WNW-ESE trending
ridge of outcropping Chumvale Breccia. The Chumvale
breccia is an extensive breccia system located along a
WNW-ESE trending structure that is likely related to a
similar structure running NW-SE through the Rocklands
Cu-Au deposit to the north of the Chumvale prospect.
Both the Chumvale prospect and the Rocklands deposit
are located within an interpreted broad, deep-seated
structural corridor termed the Cloncurry Flexure that
trends NE-SW, from Ernest Henry and Great Australia
in the east through the Milo Cu-Au-REE deposit in the
west and on to link with the N-S trending Pilgrim Fault
zone. The Cloncurry Flexure marks a zone of structural
discontinuity where the fold nose of the NE trending
Duck Creek Anticline is in presumed faulted contact with
younger E-W trending rocks of the Tommy Creek Block
to the north. This broad structural corridor is considered
highly prospective for Cu-Au mineralization.
The exploration program at the Chumvale prospect
consisted of additional rock-chip samples, an IP
geophysical survey, a further two scout diamond drill-
holes, and a petrological study of the Zn mineralisation.
The focus of the program was to follow-up on the
encouraging Zn (and minor Cu and Au) intersected in
the 2011 scout drill-holes that targeted an apparent
steeply-dipping conductive lense coincident with the
breccia outcrop.
The two drill-holes intersected dolomitic breccia,
siliceous breccia, altered dolerite, pelite, and siliceous
shale (locally jasper). Dolerite was intersected in the
interpreted footwall of the vertical hole and confirmed
the presence of a large mafic body along the northern
margin of the breccia.
The assays for both holes returned highly anomalous Zn
(15m at 3.5 % Zn in BTD045 between 10 to 25m with a
peak assay of 5.5% Zn at 18m down hole and 16m at
1.3 % Zn in BTD046 from 10 to 26m with peak assay of
1.97% Zn at 16m) in the upper parts of the holes (from
surface), whereas minor Cu occurred locally. High zinc
values appear in the upper weathered breccia zone of
both holes with the Zn concentration decreasing down-
hole in both BTD045 and BTD046.
6.2 Bungalien-Horse Creek Project
(EPM17849, EPM18207, EPM18208 & EPMA25213)
(Project is part of the CED Farm In agreement)
Following the discovery of broad intervals of IOCG style
copper mineralisation below almost 400 metres of cover
rocks in drillhole BNG001 at Bronzewing Bore Prospect
during 2011, significant additional geophysical surveys
and drilling have been completed.
The Bungalien project area consists of EPM’s Bungalien
2, Horse Creek 2, and Limestone Creek, and EPMA The
Brothers and covers an area of 737km2 centred around
100km southwest of Cloncurry. The Bungalien 2 and
Horse Creek 2 tenements were granted in 2012 and
incorporated and replaced the existing enclosed permits
with new titles increasing the total project area.
The structural block containing the Bungalien tenements
is bound on the west by the Pilgrim Fault zone, a major
north-south trending fault separating Cambrian cover
rocks in the east from outcropping Proterozoic rocks
in the west. The eastern margin of the block is marked
by the Overhang Shear that separates the voluminous
felsic and mafic volcanics and quartzite of the Argylla,
Marraba, and Mitakoodi from the slates, shales and Fe-
stones hosting the IOCG deposits along the Starra trend.
GBM Resources Annual Report 2013 13
Review of Operations
Airborne magnetic data over the Bungalien group of
tenements shows a series of magnetic highs some
of which are discrete and associated with gravity
highs. These features may be caused by magnetite
associated with copper-gold mineralisation (possibly in
roof pendants) adjacent to evolved stocks of Wimberu
Granite under the shallow Cambrian and younger
sedimentary cover. Structural and/or lithological trends
and fault intersections are also visible locally via the
combined magnetic and regional gravity data
The main focus of exploration activities was on the
Bronzewing Bore prospect, with smaller programs
continued on the Malbon 2 and Boomerang Bore
prospects, and on a new prospect area around Burke
Bore. Work completed at Bronzewing Bore includes IP,
EM, 2DIP and 3DIP, 3D MT, ground gravity, MMI soil
sampling and 4 deep drill holes. In addition, 2 scout
RC holes were drilled at Boomerang Bore.
After the successful identification of IOCG-style
mineralization and alteration in the Bronzewing Bore
prospect in 2011, an extensive program of geophysics
was carried out to refine drill-targets at the prospect.
A further 4 scout holes were drilled on targets generated
by the combined 2011 and 2012 geophysics, and an
MT survey and model was completed subsequent to
the drilling.
Drill-hole BNG005, located 900m north of BNG001
confirmed the widespread occurrence of anomalous
Cu at the Bronzewing Bore prospect. Chalcopyrite is
observed in the core soon after reaching basement
at 326m down-hole until near the E.O.H at 851m.
This represents a >500m intersection of anomalous
Cu associated with IOCG-style alteration. It has also
demonstrated that Cu-bearing mineralisation (with only
minor magnetite present) occurs within the broader
magnetic high at some distance from the magnetic
high targeted at BNG001. BNG007 drilled in June 2013
intersected minor chalcopyrite-bearing veins in and
adjacent to mafic lenses within a foliated felsic host
(volcanic or shallow intrusive).
Six holes drilled into the basement at Bronzewing Bore
(including the 2011 drill-holes BNG001, 2, 3) have
intersected anomalous Cu mineralisation associated with
IOCG-style mineralisation, veining and alteration. The
best visible intersections occur within holes BNG001
and BNG005.
Figure 10: Inversion model of MT survey over
Bronzewing Bore area highlighting conductive zones
beneath the thich Cambrian cover of the Georgina
Basin. Also showing drillhole locations and MT
stations (crosses).
14 GBM Resources Annual Report 2013
Figure 11: tenement location plan showing subsurface
interpreted geology of the Bungalien Project Area.
Key exploration target areas in white outlines.
Core yard facility In Cloncurry.
A ground gravity survey on Burke Bore prospect
defined six relatively discrete gravity highs. Four of
these anomalies are coincident with, or overlapping and
adjacent to areas of higher magnetic response and are
thus almost certainly basement features. It is possible
that the near-coincident magnetic and gravity highs may
represent magnetite-bearing sulphide bodies adjacent
to Wimberu Granite.
Trace Cu and Au were also intersected from the two
scout drill-holes at Boomerang Bore. The granite,
pegmatite and aplite intersected suggests that these
are late-crystallizing, evolved and oxidized components
of the Wimberu Granite. The magnetite content and
presence of minor alteration supports this interpretation.
Late phases such as this are likely to generate late-stage
hydrothermal fluids capable of generating IOCG-style
alteration and mineralization in the area.
6.3 Talawanta-Grassy Bore Projects
(EPM15406, EPM15681, EPMA18290 & EPMA18291)
(Projects are part of the CED Farm in agreement)
The Talawanta-Grassy Bore project consists of two large
granted exploration permits: EPM15406 (Talawanta) and
EPM15681 (Grassy Bore). Talawanta is located approx.
220kms north of Cloncurry and Grassy Bore is located
approx. 180kms NNW of Cloncurry
Applications for additional areas have been lodged to
include further targets and to assist in a rationalisation
of this tenement group. The total area under licence and
application in this project is over 640 square kilometres.
This project is subject to a farm-in agreement with
PPC and Mitsui Corporation.
The Talawanta and Grassy Bore tenements are located
within the Eastern Fold Belt of the Proterozoic Mount
Isa Inlier, lying within a north-south trending zone of
prominent magnetism commonly associated with
gravity highs that are believed to reflect Proterozoic
basement features beneath ca. 300 to 650m of younger
Carpentaria Basin cover rocks of the Georgina Basin.
The magnetic ridges can be traced back to the Cloncurry
area. The tenement areas have had limited previous
drilling recorded and none on identified prominent
magnetic centres.
GBM has conducted ground gravity surveys over areas
of coincident or near coincident magnetic and gravity
highs in 2010 and 2011, and drilled three scout drill-
holes into selected targets. Two scout drill holes at the
Ibis and Ibis South prospects intersected extensive
magnetite-bearing alteration systems and a scout
hole at Talawanta (Happy Valley) intersected an altered
magnetite rich gabbro.
Talawanta
A large gravity survey was completed over almost the
entire Talawanta tenement area between 2010 and 2011.
The gravity survey was completed at a 500m spacing
and defined large, discrete gravity highs within a broader
magnetic high, adjacent to a large gravity and magnetic
low, interpreted as a granite. The large gravity highs are
not totally coincident with the intense magnetic highs,
indicating that the strongest gravity feature extends
beyond the magnetic high. This could be interpreted as
a potentially mineralised hematite-rich alteration zone
which is part of a very large IOCG system.
The first scout drill-hole on the Talawanta tenement
(TGD003) targeted a discrete, gravity and magnetic high,
at the southern end (but separated from) a north-south
trending gravity high. The gabbro returned an unusually
high background Cu content (average 152ppm Cu from
60 samples assayed) in representative assays from
the hole.
Grassy Bore
Detailed ground gravity surveys were carried out in
2010 and 2011 over a number of coincident gravity and
magnetic highs within the Grassy Bore tenement. The
anomalies included the Ibis and Ibis South prospects,
and the Landing Ground prospect ca. 10km to the north.
3D inversions of both gravity and regional magnetic data
confirmed the existence of a very strong and discrete
gravity and magnetic feature at both the Ibis and Ibis
South locations.
In November 2010, GBM commenced drilling of the first
hole at Grassy Bore, on the Ibis prospect (TGD001).
The occurrence of the magnetite-bearing calc-silicate
hydrothermal system associated with extensive felsic
pegmatites was considered to be encouraging with
respect to the potential for IOCG mineralization in the
immediate area.
The Ibis_South prospect scout drill-hole, TGD002
drilled in 2011 targeted a discrete coincident gravity
and magnetic high within a north-south trending zone
of gravity and magnetic highs.
GBM Resources Annual Report 2013 15
Review of Operations
The Mount Margaret project area tenements are located
to the north and north-west of the Ernest Henry Cu-Au
mine, one of the largest IOCG deposits in the Mount
Isa Inlier. Extensive and locally detailed geophysical
surveys (including gravity, magnetic and IP) have been
undertaken, as well as widespread drill-testing of
anomalies. However, much of the earlier drilling involved
shallow holes, generally <200m in total depth. The
development of Ernest Henry has demonstrated that
these deposits can continue down-dip to depths of
greater than 1000m. GBM’s exploration strategy is to
identify areas with promising structural settings and/or
encouraging drill results associated with near contiguous
magnetic highs that had some scope for further
discovery. In particular areas where further detailed
modern geophysical surveys, in particular gravity and
electrical geophysical techniques may be beneficial.
In very close proximity to the Mt Margaret tenements,
less than four kilometres south from EPM 16398,
lies Ernest Henry. Ernest Henry was discovered in
1991 using aeromagnetics and has a global resource
estimated at 220Mt @ 1.2% Cu and 0.4 g/t Au. The
mineralisation is located in an ovate SSE plunging
breccia pipe with dimensions measuring 300m by 250m.
The breccia has been intersected at depths of 1200m
below surface to date with consistent mineralisation
over this entire distance.
Work completed during the year included the ongoing
review and evaluation of existing geophysical, geological
and drilling data over the tenements, particularly the
large quantity of historical data at FC4S prospect.
Fieldwork consisted of the completion of ground gravity
regional and infill grids over target areas FC4S, FC6,
FC2 and FC12, IP surveys at FC2, FC4S and FC6, a
Magnetotellurics (MT) survey at FC4S as well as large
MMI soil programs over the FC2W, FC12 and FC15
areas and three scout drill holes on FC4S.
FC4S Prospect
The 2012 field program at FC4S confirmed the potential
for a major discovery of IOCG-style mineralisation still
existing within the brownfields terrain in the vicinity of
Ernest Henry.
A number of geophysical surveys were completed at
FC4S during 2012, primarily to confirm the integrity
of historical data or infill areas of sparse data. These
included three East – West IP survey lines in June, a
ground based gravity survey comprised of 251 stations
in August and a 48 point MT survey in October 2012.
An IP survey was carried over the FC4S prospect in
June 2013. Three lines of IP were run over the FC4S
prospect. The lines at FC4S were designed to infill gaps
in the previous data, and confirm the integrity of previous
IP survey work. The survey was also designed to test
the north-east trending linear magnetic high along strike
Figure 12: Talawanta and Grassy Bore tenement areas
with GBM drillholes labelled. Interpreted regional
cross structures in black.
The Landing Ground prospect scout drill holes TGD004
and TGD005 drilled in 2012 were positioned within
prominent and discrete magnetic highs located within
a broader N-S trending magnetic high extending
undercover to the north of known deposits. Both scout
holes TGD004 and TGD005 on this prospect intersected
strongly altered magnetite-rich granitic and mafic rocks.
6.4 Mount Margaret West Project (EPM16398,
EPM16622, EPM 19834, EPMA18172 & EPMA18174)
(Project is part of the CED Farm in agreement)
The Mount Margaret West group of tenements consist
of Mt Malakoff Ext EPM16398, Dry Creek EPM18172,
Dry Creek Ext EPM18174, Mt Marge EPM19834 and
Cotswold EPM16622 (all granted). EPM18172 Dry Creek
(was granted in July 2012 for five years, consolidating
EPM14614 Mt Margaret West and EPM16227 Mt
Margaret West Extended (both licenses conditionally
surrendered).
16 GBM Resources Annual Report 2013
from EHM. Conductive Mesozoic cover
rocks from above the magnetic ridge
and east to the end of the survey lines
were interpreted to mask any possible
chargeability response in the basement,
confirming the pattern observed in the
reprocessed historic data and providing
impetus for the MT survey in this area.
Two small infill gravity surveys were
carried out over part of the FC4S
prospect late June these lines filled in
a gap in the previous sparse data, and
confirmed previous work. The data was
merged with state data and a number
of gridded images were created. The
merged image supports the presence of
a NS-trending gravity ridge coincident
with the ridge of high magnetic response
which hosts the Ernest Henry Mine.
A second discrete and untested gravity
high exists near the eastern tenement margin.
Three holes were drilled on this prospect during the
year, MMA001, MMA002 and MMA003. The first
hole (MMA001) into the initial magnetic-gravity target
intersected a broad interval of low-grade copper
mineralisation averaging 302 ppm from near the top
of basement to 615m. Within this zone numerous
higher grade intervals were intersected including 12m
@ 0.26 wt% Cu. Intense shearing and patchy red rock
alteration observed throughout the hole shows strong
affinities with the Ernest Henry deposit, located less
than 4 km to the south-west of MMA001. MMA002
encountered minor IOCG style mineralisation, and
magnetite-rich lenses were intercepted in MMA003.
Downhole IP surveys were then attempted on
holes MMA001 and 2, but due to hole blockage
only completed on MMA001. The survey provides
chargeability and resistivity profiles through the crust
for comparison with surface IP surveys.
MT geophysical surveys have defined two, possibly
three, large and discrete conductivity anomalies beneath
an area of strongly anomalous gold mineralisation
defined by historic drilling. To date, these targets have
not been drill tested, however both targets show
a spatial relationship with the distribution of gold
mineralisation.
FC2 and FC2W Prospects
Analysis of the historic geophysical and drilling data
over the FC2 magnetic-gravity anomaly suggests the
prospect may be prospective for Starra/Selwyn-style
ironstone-hosted gold and copper mineralisation. Work
on FC2 and FC2W commenced with a 2DIP resistivity
survey initiated over the FC2 prospect in June 2012. The
one line run over the FC2 prospect allowed confirmation
Figure 13: FC2 MMI soil assays with magnetic anomalies (orange)
and gravity anomalies (blue) Inversions.
of the positioning of a chargeability anomaly located
in previous work.
A large ground gravity survey was also completed in
August 2012. The program was designed to cover
the area of sparse existing data coverage west of FC2
prospect (FC2W). Three separate grids were completed;
the main regional grid comprised of 1599 stations at
200x200m point spacing and follow-up grids over
two discrete gravity highs (FC2A and FC2B) in-filled
to 100x100m point spacing.
Following analysis of the regional geophysical data, a
program of MMI (Mobile Metal Ion) soils was undertaken
on this prospect. A total of 296 samples were collected
from a nominal 400x400m grid. The wide spaced grid
produced a number of discrete gold-silver and base
metal anomalies, two of which were chosen for further
infill sampling at 100mx200m spacing. The anomalies
were confirmed as linear trends up to 1km in length,
parallel and coincident or directly adjacent to underlying
basement geophysical features. The targets produced
will be drill tested in the 2014 field program.
FC6 Prospect
Two 2DIP lines and a detailed gravity survey were
undertaken over the FC6 prospect during the year.
The IP survey was designed to confirm the east-west
positioning of a north-south trending chargeability
anomaly detected by WMC. The anomaly was confirmed
and the position of the WMC anomaly corrected
accordingly.
The FC6 gravity survey consisted of 626 gravity stations
on 24 W-E lines with line intervals of 200m and station
intervals of 100m. Interpretation of data from these
surveys identified five geophysical targets within the
FC6 prospect area.
GBM Resources Annual Report 2013 17
Review of Operations
FC12 Prospect
A detailed ground based gravity survey comprising a
total of 796 stations on 20 lines defined a strong gravity
high. Examination of historic drilling on this prospect
confirmed it had missed the peak of the gravity anomaly
by approximately 800m.
An MMI soils program was conducted over an area that
was described as a superimposed anomalous gravity
high and complex circular magnetic high. A total of 257
samples were collected on a 200m grid spacing and
400m line spacing. The MMI survey identified more
defined and prospective geochemical targets.
FC15 Prospect
Incorporates two granted tenements, EPMs 18172
and 18174 and the small EPM 19834 tenement.
The FC15 prospect is highlighted by an obvious large
circular gravity high superimposed on a significant
magnetic high showing limited prior drill testing and
a maximum recorded basement depth of 46m. The
mineral assemblages identified in the historical drilling
indicate the area is potentially prospective for IOCG
style mineralisation.
An extensive MMI soil sampling program over the greater
FC15 prospect area was conducted by GBM during the
year. A total of 355 samples were collected on a 200m
grid spacing and 400m line spacing.
The MMI soils targeted a coincidentregional gravity and
circular magnetic high anomaly in a sparsely and shallow
drilled area in the north of the prospect. Also covered
was the moderate but irregular coincident gravity and
magnetic anomaly to the south. In the southern end
of the prospect, anomalous copper was evident in
historical drill holes (up to 527ppm) but these few drill
holes were shallow and only partially tested this area
of the prospect.
Figure 14: Mount Margaret West tenement and target plan.
18 GBM Resources Annual Report 2013
7.0 Intrusive Related and Porphyry Style
Copper-Gold and Gold Projects
During the year GBM has made significant progress in
the search for IRGS and Porphyry deposits, in particular
at the Mount Morgan Project in Queensland. IRGS and
porphyry deposit styles have previously been identified
by GBM as being capable of delivering world class
deposits of commodities considered to have favourable
long term price forecasts. Such deposits are suited to
extraction by modern, large scale mining methods.
Surface sampling and mapping activity in the Mount
Morgan project area has resulted in the discovery of
a new copper prospect associated with hydrothermal
breccia, alteration and surface copper mineralisation at
Oakey Creek, and extended a large zone of anomalous
copper and gold with coincident porphyry-style
hydrothermal alteration in the Smelter Return area.
At the Willaura Project in Western Victoria, application of
Mobile Metal Ion geochemical sampling has successfully
defined a prospective Au-Cu target associated with
interpreted porphyry intrusive activity.
7.1 Mount Morgan Project (EPM16057, EPM17105,
EPM17163, EPMA17734 & EPMA18366)
The Mount Morgan Project is located 40km south west
of Rockhampton in Queensland in close proximity to
the world class Mt Morgan Copper-Gold mine, which
produced in excess of 8.0M ounces of gold (Au) and
400,000 tonnes of copper (Cu) metal.
Exploration by GBM through 2013 continued intensive
soil sampling and detailed geological mapping of
prioritised prospects in the Mount Morgan Project Area.
This resulted in the discovery of a new breccia style
copper prospect at Oakey Creek.
The project area includes nine licenses (six granted)
covering over 822 km2. Within these existing titles,
numerous targets are defined ranging from early stage
stream sediment anomalies to drill ready geophysical
and geochemical targets. Exploration programs were
Figure 15: Oakey Creek highlighting radiometric
anomaly, copper geochemistry and breccia.
completed during the year at the Smelter Return and
Oaky Creek Prospects.
The Mount Morgan gold-copper deposit has produced
more gold than any other individual deposit in eastern
Australia to date. The orebody was hosted by a
sequence of acid volcanic rocks and sedimentary
rocks occurring as a roof pendant (the Mount Warner
Volcanics) in the late Middle Devonian Mount Morgan
Trondhjemite (377 ± 5 Ma).
7.2 Malmsbury Project (EL4515 and EL5120)
GBM consider the Malmsbury Project (located in Central
Victoria) has the potential to host a large IRGS in a
world class gold province. This is supported by the
large area of alteration and mineralisation associated
with a demonstrated endowment of almost 200,000
ounces within 200 metres of surface. IRGS systems
are known to persist to much greater depths in
other regions.
Core laydown area at Malmsbury in Victoria. This facility stores core from all Victorian Projects.
GBM Resources Annual Report 2013 19
Review of Operations
A major structural and geological review completed
during 2013 has resulted to an improved interpretation
of the Malmsbury Project area. Previous comparisons
of the mineralogy to the nearby multi million ounce
Fosterville Gold Mine have been further supported with
this study noting a valid comparison of the architecture
of the fault and reef system at Malmsbury with the
Fosterville System which hosts over 3 million ounces of
gold. The study also identified additional strong North
East trending structures similar to the Leven Star Zone.
This is supported by a reprocessed magnetic image
which highlights a clear complex magnetic feature with
a similar trend.
Previous exploration results at the Malmsbury Gold
Project indicate the existence a large IRGS in a world
class gold province. Results of an extensive soil sampling
program completed confirm an intense geochemical
anomaly centred over the historic workings of Belltopper
Hill. In addition to gold, coincident anomalism in
elements including Bismuth (a signature mineral of IRGS)
further support the existence of a large IRGS in the
Malmsbury Project area.
Completion of a 12 hole diamond drilling program
during 2008 which targeted the Leven Star Zone, part
of the Malmsbury Project, resulted in the deposit’s
Inferred Resource increasing to 0.8 Mt at an average
grade of 4.0 g/t Au containing 104,000 ounces of gold
using a 2.5 g/t Au cut off grade (see table below). This
cut off was chosen to reflect a grade, which based on
experience is considered to be applicable to extraction
by underground mining methods.
This resource is contained within a 450 metre section
of the Leven Star Zone within the Drummond North
Goldfield which has an identified strike length of over
4,000 metres. The resource is considered open both to
depth and along strike. Details of the parameters used
are contained in the resource statement.
Resource
Classification
Inferred
Tonnes
(x103)
820
Au
(g/t)
4.0
Au (x103
ounces)
104
Note: Cut-off grade of 2.5g/t Au anticipated to reflect
underground mining production costs. Sources; GBM
Resources 2009A, GBM Resources 2009B, Allwood 2008,
Table 3: 2008 Leven Star Gold Resource Estimate
Figure 16: Mount Morgan Project tenement and target location plan showing major structural corridors.
20 GBM Resources Annual Report 2013
Figure 17: Malmsbury plans showing magnetic feature and major cross structures structures related to
gold mines and resources (left) and related to gold soil geochemistry (right).
Available historical, recent exploration and mining data
indicate a known gold endowment of 195,000 ounces of
gold in the near surface (approximately 150 metres from
surface) portion of the structurally controlled mineralised
zones explored or mined to date. This endowment is
based on mineralisation within a 2 kilometre section of
the Drummond North Goldfield which remains open in
all directions.
This endowment comprises 91,000 ounces of historical
production and 104,000 ounces of the current Leven
Star Resource. At this time, historical production from
a number of shafts in the project area is still unknown.
Many zones remain to be drill tested and resources
evaluated. The current estimate of gold endowment is
considered incomplete in the near-surface environment.
A one kilometre deep diamond drill hole was completed
in March 2010 with assistance from the Victorian
Government RDV grants program. Results strongly
support the conclusion that the Malmsbury Gold Project
is part of a large Intrusive Related Gold System (IRGS)
centred on Belltopper Hill.
Gold in soils defines a strong anomaly at 50 ppb centred
on the intersection of known mineralisation, but trending
north wards to areas not previously drill tested. At low
levels (10ppb) this anomaly is continuous over the 2.0
kilometres covered by the initial survey and remains
open to both the East and West. Peak value for Au was
1600ppb. Arsenic and antimony define a very similar
pattern to gold, both reflecting the strong structural
controls known to operate in the area, however Sb is
much more tightly constrained at higher concentrations,
with the Leven Star zone displaying the largest Sb
anomaly. Molybdenum defines a discrete ovoid pattern
centred near the south east margin of the magnetic
feature, and very close to the Missing Link mineralised
zone. Values range from 1 to 33 ppm Mo. The Bismuth
distribution pattern very closely reflects molybdenum,
and also defines a coherent feature centred on the same
area as the Molybdenum anomaly.
7.3 Willaura Project (EL4631 and EL5346)
The Willaura Project is located in western Victoria, east
of the Grampians, between the towns of Lake Bolac
and Ararat.
Application of refined geochemical sampling and
analytical techniques has upgraded previously identified
magnetic Anomalies I and D to drill ready.
The project area straddles one of the state’s major deep
crustal structures, the Moysten Fault and lies within the
Stavely Volcanic Complex, analogous to Mt Lyell and the
Mount Read Volcanics in Tasmania. Nearby porphyry
systems include Thursday’s Gossan (10.6MT Cu @
0.45% Cu open at depth and along strike), Junction
Prospect (39m @ 3.9% Cu), and the Glenlyle Porphyry
(sericite alteration and low grade Cu intersections from
AC drilling).
GBM Resources Annual Report 2013 21
Review of Operations
Figure 18: Distinct MMI soil responses for gold and
copper over the strong basement magnetic feature
interpreted to reflect a felsic intrusive at Anomally ‘I’.
GBM holds three granted exploration licences within the
Willaura Project covering an area of approximately 249
square kilometres, including the recently granted large
lease EL5423.
The Company is targeting a large copper-gold system in
the Stavely Grampians Zone. The Project recognises the
prospective and under-explored nature of the Stavely –
Grampians Zone as a potential host to intrusive related
Cu-Au deposits of the Mount Lyell or Cadia styles.
Discrete magnetic features covered by recent basalt
cover offer potential for new discoveries.
Due to the extensive tertiary basalt covering much of the
Willaura target area, modern and advanced “deep seeing”
exploration techniques must be employed to identify
suitable drill targets. In early 2013, a total of 605 partial
leach Mobile Metal Ion (MMI) soil samples were collected
from the seven magnetic anomalies identified by regional
air magnetics (B, D, E, F, G, H & I). In conjunction with
the MMI soil program, a 105 line km ground magnetic
survey was completed over the Willaura magnetic targets.
Interpretation of this data indicates an anomalous gold
and base metal response directly above Anomaly I and
base metals above Anomaly D.
22 GBM Resources Annual Report 2013
Figure 19: Willaura tenement plan showing
location of key target areas.
Figure 20: Yea Project tenement location plan showing target locations.
7.4 Yea Project (EL5292, EL5293 & EL5347)
The Yea Project is located in central Victoria between
the townships of Yea, Alexandra and Marysville,
approximately 100km north-east of Melbourne.
The first drill hole completed by GBM in 2012 intersected
Tungsten and Molybdenum mineralisation which is
coarse grained of potentially economic grade. Monkey
Gully is a new Tungsten Molybdenum discovery,
and the area still retains potential for IRGS style gold
mineralisation.
The Yea project includes three exploration licences
EL5292 Tin Creek, EL5293 Monkey Gully and EL5347
Rubicon which cover an area of approximately 800
square kilometres. The project area is centred on two
separate intrusive systems; the Black Range Granodiorite
and the Marysville Intrusive Complex.
Recent work by GBM focussed on the Monkey Gully
and Mumbil Mines prospects near Yea in the north-west
of the lease area and included extensive ridge and spur
soi sampling, detailed ground magnetics, extensive
soil sampling and a small diamond drilling program.
Review of previous exploration data has also highlighted
a number of significant geochemical and geophysical
anomalies which represent targets for future exploration.
Logging of the two hole drill program confirmed the
existence of a stockwork of thin quartz comprised
of several generations of veining. Molybdenum and
tungsten mineralisation was observed as coarse
molybdenite and scheelite with associated pyrrhotite
and chalcopyrite. The mineralisation is within and
adjacent to an interpreted high temperature vein set
consistent with observations of occasional surface
outcrops. The peak value for tungsten was 5,030ppm
from 166 to 167 metres and for molybdenum 1,850ppm
from 131 to 132 metres. Copper is also anomalous
throughout most of the hole (peak assay 784ppm Cu
from 8 to 10m).
Results from the soil sampling indicate that the W-Mo-
Cu soil anomalism extends for at least 1,000m in a
NW orientation across the prospect. Detailed mapping
revealed a series of narrow parallel tonalite and dacite
dykes in the centre of the prospect, parallel to the soil
anomaly strike and the regional structural grain.
A program of ridge and spur soil and rock-chip sampling
was completed in the Monkey Gully area concurrently
with the drilling. The program was designed to test
whether a larger IRGS system is present beneath
Monkey Gully and the nearby existing Mumbil Au-Bi-W
prospect. Mumbil is and trenching a zone of high-grade
gold mineralisation defined by soil sampling located
2km NE of Monkey Gully (within GBM’s EL5293). GBM’s
recent work confirmed anomalous Au at the Mumbil
prospect in tourmalinised metasediments hosting
extensive comb quartz veining (0.67g/t Au peak) and
anomalous Au-As-Bi in soils in the area between the
two prospects.
The drilling results at Monkey Gully when considered
with the extensive Au-As soil anomalism and Au-Bi in
tourmaline-altered metasediments within the prospect
area are considered strongly supportive of the existence
of an IRGS in the Monkey Gully area.
GBM Resources Annual Report 2013 23
Review of Operations
8.0 Bungalien Phosphate Project
(The Company holds 100% of the Phosphate rights after
successfully completing the 70% acquisition of the Bungalien
Phosphate rights from Swift Venture Holdings Corporation
on 20 December 2012.)
With P2O5 grades up to 25% in the vast and prospective
Georgina Basin, and located adjacent to Australia’s largest
phosphate deposit at Phosphate Hill, Bunglien Project
remains a highly prospective area for discovery of rock
phosphate resources.
Work on the Bungalien Phosphate project during 2011
advanced our targets in the Georgina Basin sediments which
overlay the Proterozoic basement and continue to emerge as
one of the world’s major phosphate provinces with phosphate
resources currently identified totalling over three billion tonnes.
A total of 43 shallow RC drill holes, drilled in two stages, have
been completed by GBM on the Bungalien Phosphate project
areas located in the Georgina Basin, southeast of Mount
Isa in North Queensland. Results of both drilling campaigns
are very encouraging and confirm the extent of phosphate
prospectivity in the area.
Drilling in the Burke River area returned a peak phosphate
value exceeding 25% P2O5 among the higher grade results
from the 1,436 metre RC drill programmes. Results include
many intersections of significant widths of greater than 10%
P2O5 mineralisation. In addition, scout drill holes PRC024,
PRC025 and PRC026 intersected phosphate mineralisation
in new prospect areas; drill hole PRC026 intersected 7m
@ 4.19% P2O5 in Horse Creek EPM15150, and PRC024
intersected 9m @ 2.14% P2O5 in Limestone Creek
EPM17849. These holes demonstrate that further substantial
areas of these large tenements hold potential for untested
phosphate mineralisation at shallow depths.
Figure 21: Tenement plan for Bungalien Project
showing key phosphate target areas.
Burke River Phosphate area is in the
northwest of the tenement areas.
Figure 22: Burke River Phosphate Prospect drillhole plan.
24 GBM Resources Annual Report 2013
Monkey Gully area, part of Yea Project area in Victoria.
All of these licences and applications (see tenement
schedule) are held 100% by the Company (or its
wholly owned subsidiaries), however all tenements
in the Talawanta-Grassy Bore, Mount Margaret and
Bungalien Projects are subject to a farm-in agreement
with Cloncurry Exploration and Development Pty. Ltd.
(owned by Pan Pacific Copper and Mitsui Corporation).
Application EPMA 18672 is a competing application and
at this stage no indication of priority has been received
by the Company.
It should be noted EPMA 19483, EPMA 19256 and
EPMA 19255 are overlying applications encompassing
existing, granted tenements.
In addition GBM has signed agreements with Newcrest
to acquire EPM 14111 Mayfield2 and EPMA 19483
Mayfield in the Mount Isa area. This is subject to the
transfer being approved. GBM is also awaiting approval
from the Queensland Department on transfer of
Cotswold EPM 16622 from Newcrest to GBM.
A summary of GBM’s tenements is provided in
Table 4 on page 28 of this report.
9.0 Tenements
GBM reviews and ranks existing tenements and
continues to assess opportunities to add quality
exploration targets to its portfolio by acquisition
of new tenements. The Company currently holds
38 tenements in nine project areas that cover a total
area of approximately 5176 square kilometres in
some of Australia’s most prospective mineral provinces.
This includes 9 applications in Queensland totalling
1,187 square kilometres.
Seven new tenements were granted during year. Two in
the Mt Morgan region, Central Queensland (Limonite Hill
EPM 18811 and Mt Hoopbound EPM 18812), three in
the Mt Margaret region (Cotswold EPM 16622, Mt Marge
EPM 19834 and Dry Creek EPM 18172)and one in the
Bungalien region (Horsecreek2 EPM 18208), North West
Queensland and one in the Willaura region, Victoria (Lake
Bolac2 EL5423). In order for the granting of Horsecreek2
EPM 18208, Horsecreek EPM 14355 and Malbon2 EPM
14142 were conditionally surrendered. Likewise on the
granting of Dry Creek EPM 18172, Mt Margaret West
EPM 14614 and Mt Margaret West Ext EPM 16227
were conditionally surrendered.
Applications that were lodged during the year include
Mt Victoria EPMA 25177 and Lake Bolac2 EL 5423
in the Willaura region, Central Victoria. In addition and
Bajool EPMA 25362 in North West Queensland was
applied for on 1 August 2013.
GBM Resources Annual Report 2013 25
Review of Operations
Abbreviations
CuEq Copper Equivalent, as defined in Note 1 below.
EM Electro Magnetic (geophysical surveys)
IP Induced Polarisation (geophysical surveys)
RC Reverse circulation drilling
REE(O) Rare Earth Elements(oxides). There are14
rare earth elements; Lanthanum (La), Cerium (Ce),
Praseodymium (Pr), Neodymium (Nd), Samarium
(Sm), Europium (Eu), Gadolinium (Gd), Terbium (Tb),
Dysprosium (Dy), Holmium (Ho), Erbium (Er), Thulium
(Tm), Ytterbium (Yb), Lutetium (Lu) but excluding
Promethium (Pm).
TREEY(O) Total Rare Earth element and Yttrium (oxides)
(Yttrium (Y) is not always considered as a Rare Earth
Element but does have many similar properties
Explanatory Notes
* Copper Equivalent calculation represents the total
metal value for each metal, multiplied by the conversion
factor, summed and expressed in equivalent copper
percentage. These results are exploration results only
and no allowance is made for recovery losses that may
occur should mining eventually result. However it is the
company’s opinion that elements considered here have
a reasonable potential to be recovered. It should also
be noted that current state and federal legislation may
impact any potential future extraction of Uranium. Prices
and conversion factors used are summarised below,
rounding errors may occur.
* MMI (Mobile Metal Ion) soil samples were submitted to
SGS laboratories in Perth for analysis. The MMI assay
technique is a proprietary method of SGS laboratories. It
is a partial leach assay method finishing with ICP-MS for
a suite of 53 elements. The sampling method consists
of down-hole composite sampling of a 15cm horizon
consistenetly between 10cm and 25cm below surface.
Sieving is not necessary as this technique is designed
to analyse loosely bound skins deposited on other
grains. Conventional soil samples were submitted to ALS
laboratories for sieving to -80#, grinding and analyses
either in Mount Isa by Au-AA21 and ME-ICP61 or ALS
in Brisbane using ME-ICP41 and Au-AA23 for the Mt
Morgan samples with over limit for Cu (>1%) by Cu-
OG46 for a suite of 35 elements.
*2 Intersections quoted are length weighted averages
of results for individual sample intervals. Samples were
taken at 1 metre intervals in RC drilling by multistage
splitter and generally 1 metre intervals of half sawn core
with maximum of 2 metres for diamond drilling. Analyses
were completed by Amdel in Adelaide using IC2M and
IC2E and Au by FA1, ALS in Mt Isa for all elements other
than gold by ME-MS61, over limit Cu (>1%) by Cu-OG46
and Zn (>10000 ppm) by Zn-OG62 and Au by Au-AA25
in Brisbane.
The information in this report that relates to Mineral
Resources (Milo & Malmsbury) is based on information
compiled by Kerrin Allwood, who is a Member or Fellow
of The Australasian Institute of Mining and Metallurgy.
Mr Allwood is a full-time employee of the Geomodelling
Pty. Ltd a New Zealand based consultancy. Mr Allwood
has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the
‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’. Mr Allwood
consents to the inclusion in the report of the matters
based on his information in the form and context in
which it appears.
The information in this report that relates to Mineral
Resources and Exploration Results is based on
information compiled by Neil Norris, who is a Member of
The Australasian Institute of Mining and Metallurgy. Mr
Norris is a full-time employee of the company. Mr Norris
has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify
as a Competent Person as defined in the 2004 Edition
of the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’. Mr Norris
consents to the inclusion in the report of the matters
based on his information in the form and context in
which it appears.
Forward-Looking Statements
Certain statements made in this report, including,
without limitation, those concerning the Milo Scoping
Study, contain or comprise certain forward-looking
statements regarding GBM Resources Limited’s
exploration operations, economic performance and
financial condition. Although GBM believes that
the expectations reflected in such forward-looking
statements are reasonable, no assurance can be given
that such expectations will prove to have been correct.
Accordingly, results could differ materially from those
set out in the forward-looking statements as a result
of, among other factors, changes in economic and
market conditions, success of business and operating
initiatives, changes in the regulatory environment and
other government actions, fluctuations in metals prices
and exchange rates and business and operational risk
management. GBM undertakes no obligation to update
publicly or release any revisions to these forward-looking
statements to reflect events or circumstances after
today’s date or to reflect the occurrence of unanticipated
events.
26 GBM Resources Annual Report 2013
Sustainable Development
GBM Resources Ltd value the safety and health of all of its employees, contracting partners, site visitors and
the wider community in which they operate, and are committed to a ‘zero harm’ philosophy relating to safety
performance in all areas of the company’s businesses. The Occupational Health and Safety Management System
is aligned to the AS/NZS 4801:2001 standard which provides a framework for industry best practice operations.
As standard practice, the Companies:
n Do not compromise on health and safety standards;
n
n
Include health and safety considerations in planning work;
Identify, assess, mitigate and manage risks;
n Ensure work meets relevant standards and codes of practices;
n Develop, engage and empower employees and contractors;
n Set measurable objectives and targets aimed at continuous improvement and eliminating work related illness;
n Collaborate and communicate with employees with respect to all health and safety endeavours; and
n Maintain a health and safety system based on best industry standards.
Through the above practices, an exceptional level of safety performance at GBM Resources Ltd has been achieved.
The current 12-month rolling total lost time injury frequency rate (LTIFR) is 0.0, based on combined GBM and
contracting partners’ working hours (41,562.55). This compares to the 2011 average LTIFR published by Safe Work
Australia for the Exploration sector of 3.9.
GBM is committed to safe and responsible development of Australia’s mineral resources
The Company’s continued focus on safety has resulted in improved safety performance during the year with no LTI’s
recored. GBM strongly believes that the health and safety of personnel and the environment in which we operate
are of the highest priority in all of our operations.
Safety & Training
A range of training programmes was completed throughout the year as part of the Company’s commitment to the
safety of our people. GBM remains committed to a process of continuous improvement of its standards procedures
and work practices.
Training completed during 2012/2013 included Job Safety Analysis, First Aid and Niton training.
Community & Environment
GBM is committed to working with the communities in which we operate with the aim of reducing our Environmental
impact whilst achieving mutually acceptable rehabilitation outcomes.
GBM will identify and show consideration for the rights, beliefs and concerns of relevant landholders and all other
parties that have a legitimate interest in our exploration activities. To achieve this we will ensure that all of our
employees and contractors are aware of their role in implementing company environmental responsibilities, policies
and commitments.
Each exploration site undergoes a rigorous examination for the environmental aspect prior to, during and after work
has been conducted on the site.
Statistics/Achievements
n No lost time injuries were sustained during operations in 2012/13 (LTI frequency rate of 0.0 against an industry
average of 3.9 in 2011)
n One medically treated injury was sustained during operations in 2012/13
n No significant environmental incidents were sustained in the reporting period
n Refresher First Aid Courses were undertaken during the year for all staff members
n Ongoing reviews of GBM’s Risk Register and procedures continued this year.
GBM Resources Annual Report 2013 27
Tenement Schedule
Project/Name
Tenement No. Owner
GBMR
Equity Manager
Granted
Expiry
Approx
Area (km2)
sub-
blocks/
grats
Status
EL4515
EL5120
EL4631
EL5346
EL5423
EL5293
EL5292
EL5347
VICTORIA
Malmsbury
Belltopper
Lauriston
Willaura
Lake Bolac
Willaura
Lake Bolac2
Yea
Monkey Gully
Tin Creek
Rubicon
QUEEnSLAnD
Drummond Basin
Diamond Creek
Dee Range
Dee Range
Boulder Creek
Black Range
Smelter Return
Limonite Hill
Limonite Hill East
Mt Hoopbound
Mt Victoria
Mount Isa Region
Talawanta – Grassy Bore
Talawanta
Grassy Bore
Talawanta2
Grassy Bore2
Mount Margaret
Mt Malakoff Ext
Cotswold
Mt Marge
Dry Creek
Dry Creek Ext
Brightlands
Brightlands
Brightlands West
Brightlands West Ext.
Wakeful
Highway
Bungalien
Limestone Creek
Bungalien 2
Horse Creek 2
The Brothers
Mayfield
Mayfield
Mayfield2
EPM 19193
EPM16057
EPM17105
EPM17734
EPM18366
EPM18811
EPMA19288
EPM18812
EPMA25177
EPM15406
EPM15681
EPMA19255
EPMA19256
EPM16398
EPM16622
EPM19834
EPM18172
EPM18174
EPM14416
EPMA18051
EPMA18672
EPM18454
EPM18453
EPM17849
EPM18207
EPM18208
EPMA25213
100%
GBMR
27-Jun-11
26-Jun-14
124
38
Granted
GBMR*1/Belltopper Hill
GBMR
100%
100%
GBMR
GBMR
06-Oct-05
17-Dec-08
05-Oct-13
16-Dec-13
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR*2,4/Isa Tenements
GBMR*2,4/Isa Tenements
GBMR*5/Isa Tenements
GBMR*5/Isa Tenements
GBMR*2,4/Isa Tenements
GBMR*2,4/Isa Tenements
GBMR/Isa Tenements
GBMR*5/Isa Tenements
GBMR*5/Isa Tenements
GBMR*2/Isa Brightlands
GBMR/Isa Brightlands
GBMR/Isa Brightlands
GBMR/Isa Brightlands
GBMR/Isa Brightlands
GBMR/Isa Tenements
GBMR*5/Isa Tenements
GBMR*5/Isa Tenements
GBMR/Isa Tenements
100%
100%
100%
100%
100%
100%
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
21-Mar-02
02-Jun-11
03-Dec-12
20-Mar-14
01-Jun-14
02-Dec-17
23-Mar-11
23-Mar-11
27-Feb-12
22-Mar-16
22-Mar-16
26-Feb-17
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
27-Sep-07
26-Mar-08
20-May-09
21-Jun-12
41234
26-Sep-14
25-Mar-15
19-May-14
20-Jun-17
43059
41116
42941
15-Jan-08
28-Sep-07
14-Jan-13
27-Sep-15
19-Oct-10
41243
41337
41103
25-Oct-11
18-Oct-15
43068
43162
42928
24-Oct-14
5-Aug-05
4-Aug-14
23-Jan-12
23-Jan-12
22-Jan-17
22-Jan-17
20-Oct-10
24-May-12
2-Aug-12
19-Oct-15
23-May-17
1-Aug-17
25
31
20
8
218
316
329
155
25
31
20
8
218
316
329
155
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
46
88
81
195
260
29
23
3
325
325
325
322
85
46
3
228
39
254
7
98
13
36
78
325
325
10
302
84
14
27
25
60
80
9
7
1
100
100
100
99
26
14
1
70
12
78
2
30
4
11
24
100
100
3
93
26
Granted
Granted
Granted
Granted
Granted
Appl’n
Granted
Appl’n
Renewal
Granted
Proposal
Appl’n
Granted
Granted
Granted
Granted
Granted
Granted
Proposal
Appl’n
Granted
Granted
Granted
Granted
Granted
Appl’n
Proposal
Renewal
EPMA19483
EPM14111
GBMR*5/Isa Tenements
GBMR*2,4/Isa Tenements
100%
100%
GBMR
GBMR
9-Aug-05
8-Aug-11
Note *1 subject to a 2.5% net smelter royalty to vendors.
*2 subject to a 2% net smelter royalty is payable to Newcrest Mining Ltd.
*3 For Q’ld tenements, 1 sublock ~3.2km2. Underlined areas indicate the tenement is contained in new application area.
*4 subject to approval by DME.
*5 subject to a 2% net smelter royalty payable to Newcrest Mining Ltd. on old boundaries only.
Table 4: GBM Resources Limited tenement summary at 30 June 2013.
28 GBM Resources Annual Report 2013
Corporate Governance Statement
Introduction
Since the introduction of the ASX Corporate Governance
Council’s Principles of Good Corporate Governance
and Best Practice Recommendations (“ASX Guidelines”
or “the Recommendations”), GBM Resources Limited
(“Company”) has made it a priority to adopt systems
of control and accountability as the basis for the
administration of corporate governance. Some of these
policies and procedures are summarised in this report.
Commensurate with the spirit of the ASX Guidelines, the
Company has followed each Recommendation where
the Board has considered the Recommendation to be
an appropriate benchmark for corporate governance
practices, taking into account factors such as the
size of the Company, the Board, resources available
and activities of the Company. Where, after due
consideration, the Company’s corporate governance
practices depart from the Recommendations, the Board
has offered full disclosure of the nature of, and reason
for, the adoption of its own practice.
The Board of the Company is committed to
administering the policies and procedures with openness
and integrity, pursuing the true spirit of corporate
governance commensurate with the Company’s needs.
Further information about the Company’s corporate
governance practices is set out on the Company’s
website at www.gbmr.com.au. In accordance with the
recommendations of the ASX, information published
on the Company’s website includes:
Board Charter
Nomination Committee Charter
Remuneration Committee Charter
Audit and Risk Committee Charter
Corporate Code of Conduct
Performance Evaluation Policy
Continuous Disclosure Policy
Risk Management Policy
Guidelines for Trading in Company Securities
Shareholder Communication Strategy
Diversity Policy
Corporate Governance Council Recommendation 1
Lay Solid Foundations for Management
and Oversight
Role of the Board of Directors
The role of the Board is to increase shareholder value
within an appropriate framework which safeguards the
rights and interests of the Company’s shareholders
and ensure the Company is properly managed.
In order to fulfil this role, the Board is responsible for
the overall corporate governance of the Company
including formulating its strategic direction, setting
remuneration and monitoring the performance of
Directors and executives. The Board relies on senior
executives to assist it in approving and monitoring
expenditure, ensuring the integrity of internal controls
and management information systems and monitoring
and approving financial and other reporting.
In complying with Recommendation 1.1 of the Corporate
Governance Council, the Company has adopted a Board
Charter which clarifies the respective roles of the Board
and senior management and assists in decision making
processes. A copy of the Board Charter is available on
the Company’s website.
Board Processes
An agenda for the meetings has been determined to
ensure certain standing information is addressed and
other items which are relevant to reporting deadlines
and or regular review are scheduled when appropriate.
The agenda is regularly reviewed by the Managing
Director and the Company Secretary.
Evaluation of Senior Executive Performance
The Company has not complied with Recommendation
1.2 of the Corporate Governance Council. Due to
the early stage of development of the Company it is
difficult for quantitative measures of performance to be
established. As the Company progresses its projects,
the Board intends to establish appropriate evaluation
procedures. The Chairman assesses the performance
of the Executive Directors on an informal basis.
Corporate Governance Council Recommendation 2
Structure the Board to Add Value
Explanation for Departures from
Best Practice Recommendations
During the Company’s 2012/2013 financial year the
Company has sought to comply with the Corporate
Governance Principles and the corresponding Best
Practice Recommendations as published by the ASX
Corporate Governance Council (“Corporate Governance
Principles and Recommendations”) and has adopted the
revised Principles and Recommendations taking effect
from reporting periods beginning on or after 1 January
2008. Significant policies and details of any significant
deviations from the principles are specified below.
Board Composition
The Constitution of the Company provides that the
number of Directors shall not be less than three. There
is no requirement for any share holding qualification.
The membership of the Board, its activities and
composition is subject to periodic review. The criteria
for determining the identification and appointment of
a suitable candidate for the Board shall include the
quality of the individual, background of experience and
achievement, compatibility with other Board members,
credibility within the scope of activities
GBM Resources Annual Report 2013 29
Corporate Governance Statement
Corporate Governance Council Recommendation 2
Structure the Board to Add Value (continued)
of the Company, intellectual ability to contribute to Board
duties and physical ability to undertake Board duties
and responsibilities.
Directors are initially appointed by the Board and
are subject to re-election by shareholders at the next
general meeting. In any event one third of the Directors
are subject to re-election by shareholders at each
general meeting.
As at 30 June 2013 the Board was comprised of four
members, two Non-Executive and two Executive. The
Non-Executive Directors were Mr Cameron Switzer and
Mr Guan Huat Loh. On 2 September 2013 Mr Chiau
Woei Lim was appointed as a Non-Executive Director.
The skills, experience and expertise of all Directors is
set out in the Directors’ Report.
The Board has assessed the independence of its Non-
Executive Directors in office during the period according
to the definition contained within the ASX Corporate
Governance Guidelines and has concluded that the two
Non-Executive Directors, Mr Switzer and Mr Loh, met
the recommended independence criteria. Mr Lim does
not meet the recommended independence criteria due
to his substantial shareholding. The Company does not
comply with Recommendation 2.1 of the Corporate
Governance Council.
However, the Board considers that both its structure
and composition are appropriate given the size of the
Company and that the interests of the Company and
its shareholders are well met.
Independent Chairman
The Chairman is not considered to be an independent
director as at the reporting date and as such
Recommendation 2.2 of the Corporate Governance
Council has not been complied with.
Roles of Chairman and Chief Executive Officer
The roles of Chairman and Chief Executive Officer are not
currently exercised by different individuals, and as such
the Company does not comply with Recommendation
2.3 of the Corporate Governance Council.
Nomination Committee
The Board does not have a separate Nomination
Committee comprising of a majority of independent
Directors and as such does not comply with
Recommendation 2.4 of the Corporate Governance
Council. The selection and appointment process
for Directors is carried out by the full Board. The
Board considers that given the importance of Board
composition it is appropriate that all members of the
Board partake in such decision making. The Company
has adopted a Nomination Committee Charter, which
is available for review on the Company’s website.
Evaluation of Board Performance
The Company has not to date implemented a formal
process for the evaluation of the performance
of the Board and as such does not comply with
Recommendation 2.5 of the Corporate Governance
Council. The Board is of the opinion that the competitive
environment in which the Company operates will
effectively provide a measure of the performance of
the Directors. In addition the Chairman assesses the
performance of the Board, individual directors and
key executives on an informal basis.
Education
All Directors are encouraged to attend professional
education courses relevant to their roles.
Independent Professional Advice
and Access to Information
Each Director has the right to access all relevant
information in respect of the Company and to make
appropriate enquiries of senior management. Each
Director has the right to seek independent professional
advice at the Company’s expense, subject to the
prior approval of the Chairman, which shall not be
unreasonably withheld.
Corporate Governance Council Recommendation 3
Promote Ethical and Responsible Decision Making
The Board actively promotes ethical and responsible
decision making.
Corporate Code of Conduct
The Board has adopted a Corporate Code of
Conduct that applies to all employees, executives and
directors of the Company, and as such complies with
Recommendation 3.1 of the Corporate Governance
Council. This Code addresses expectations for conduct
in accordance with legal requirements and agreed
ethical standards. A copy of the Code is available
on the Company’s website.
Guidelines for Trading in Company Securities
The Board has committed to ensuring that the Company,
its Directors and executives comply with their legal
obligations as well as conducting their business in a
transparent and ethical manner. The Board has adopted
a procedure on dealing in the Company’s securities
by directors, officers and employees which prohibits
dealing in the Company’s securities when those persons
possess inside information.
The guidelines also provide that the acknowledgement
of the Chairman or the Board should be obtained prior
to trading. A summary of the Guidelines are available
on the Company’s website.
The Company’s policy restricts, notwithstanding
exceptional circumstances, the trading in Company’s
securities by those individuals covered by the policy to
trading windows that are open for 10 days following the
30 GBM Resources Annual Report 2013
Corporate Governance Council Recommendation 3
Promote Ethical and Responsible Decision Making (continued)
hosting of General Meetings of the Company, the release of annual, half yearly results and quarterly reports and after
any other public announcement on ASX.
Diversity
The Board has adopted a diversity policy that details the purpose of the policy and the employee selection and
appointment guidelines, consistent with the recommendations of the Corporate Governance Council. The Board
believes that the adoption of an efficient diversity policy has the effect of broadening the employee recruitment
pool, supporting employee retention, including different perspectives and is socially and economically responsible
governance practice.
The Company employs new employees and promotes current employees on the basis of performance, ability and
attitude. The Board is continually reviewing its practices with a focus on ensuring that the selection process at all
levels within the organisation is formal and transparent and that the workplace environment is open, fair and tolerant.
The Company, in keeping with the recommendations of the Corporate Governance Council provides the following
information regarding the proportion of gender diversity in the organisation as at 30 June 2013:
Females employed in the Company as a whole
Females employed in the Company in senior positions
Females appointed as a Director of the Company
Proportion of female/total
number of persons employed
2/16
1/2
0/4
The recommendations of the Corporate Governance Council relating to reporting require a Board to set measurable
objectives for achieving diversity within the organisation, and to report against them on an annual basis. The Company
has implemented measurable objectives as follows:
Measurable Objective
Objective Satisfied Comment
Adoption and promotion of
a Formal Diversity Policy.
To ensure Company policies are
consistent with and aligned with
the goals of the Diversity Policy.
To provide flexible work and salary
arrangements to accommodate family
commitments, study and self-improvement
goals, cultural traditions and other personal
choices of current and potential employees.
To implement clear and transparent
policies governing reward and recognition
practices.
To provide relevant and challenging
professional development and training
opportunities for all employees.
Yes
Yes
Yes
Yes
Yes
The Company has adopted a formal diversity
policy which has been made publicly available via
the ASX and the Company’s website.
The Company’s selection, remuneration and
promotion practices are merit based and as such
are consistent with the goals of the Company’s
Diversity Policy.
The Company does, where considered
reasonable, and without prejudice, accommodate
requests for flexible working arrangements.
The Company grants reward and promotion
based on merit and responsibility as part of its
annual and ongoing review processes.
The Company seeks to continually encourage
self-improvement in all employees, irrespective of
seniority, ability or experience, through external
and internal training courses, regular staff
meetings and relevant on job mentoring.
The Company has not implemented specific measurable objectives regarding the proportion of females to be
employed within the organisation or implement requirements for a proportion of female candidates for employment
and Board positions. The Board considers that the setting of quantitative gender based measurable targets is not
consistent with the merit and ability based policies currently implemented by the Company.
GBM Resources Annual Report 2013 31
Corporate Governance Statement
Corporate Governance Council Recommendation 3
Promote Ethical and Responsible Decision Making
(continued)
The Board will consider the future implementation
of gender based diversity measurable objectives
when more appropriate to the size and nature of the
Company’s operations.
Continuous disclosure is discussed at all regular Board
meetings and on an ongoing basis the Board ensures
that all activities are reviewed with a view to the necessity
for disclosure to security holders.
In accordance with ASX Listing Rules the Company
Secretary is appointed as the Company’s disclosure
officer.
Corporate Governance Council Recommendation 4
Safeguarding Integrity in Financial Reporting
Corporate Governance Council Recommendation 6
Respect the Rights of Shareholders
Audit Committee
The Board does not have a separate Audit Committee
with a composition as suggested by Recommendations
4.1 and 4.2 of the Corporate Governance Council, and
as such does not comply with those recommendations.
The full Board carries out the function of an Audit
Committee. The Board believes that the Company is
not of a sufficient size to warrant a separate committee
and that the full Board is able to meet objectives of
the best practice recommendations and discharge
its duties in this area. The relevant experience of
Board members is detailed in the Directors’ section
of the Directors’ Report. The Company has adopted
an Audit and Risk Committee Charter and as such
complies with Recommendation 4.3 of the Corporate
Governance Council.
Financial Reporting
The Board relies on senior executives to monitor
the internal controls within the Company. Financial
performance is monitored on a regular basis by the
Managing Director who reports to the Board at the
scheduled Board meetings.
The Board reviews the performance of the external
auditors on an annual basis and meets with them
during the year to review findings and assist with
Board recommendations.
In the absence of a formal Audit Committee, Non-
Executive Directors of the Company are available for
correspondence with the auditors of the Company.
Corporate Governance Council Recommendation 5
Make Timely and Balanced Disclosure
Continuous Disclosure
The Board is committed to the promotion of investor
confidence by providing full and timely information
to all security holders and market participants about
the Company’s activities and to comply with the
continuous disclosure requirements contained in the
Corporations Act 2001 and the Australian Securities
Exchange’s Listing Rules. The Company has established
written policies and procedures, designed to ensure
compliance with the ASX Listing Rule Requirements, in
accordance with Recommendation 5.1 of the Corporate
Governance Council.
Communications
The Board fully supports security holder participation
at general meetings as well as ensuring that
communications with security holders are effective
and clear. This has been incorporated into a formal
shareholder communication strategy, in accordance
with Recommendation 6.1 of the Corporate Governance
Council. A copy of the policy is available on the
Company’s website.
In addition to electronic communication via the
ASX website, the Company publishes all significant
announcements together with all quarterly reports.
These documents are available in both hardcopy
on request and on the Company website at
www.gbmr.com.au.
Shareholders are able to pose questions on the
audit process and the financial statements directly to
the independent auditor who attends the Company
Annual General Meeting for that purpose.
Corporate Governance Council Recommendation 7
Recognise and Manage Risk
Risk Management Policy
The Board has adopted a risk management policy
that sets out a framework for a system of risk
management and internal compliance and control,
whereby the Board delegates day-to-day management
of risk to the Managing Director, therefore complying
with Recommendation 7.1 of the Corporate Governance
Council. The Board is responsible for supervising
management’s framework of control and accountability
systems to enable risk to be assessed and managed.
Risk Management and the Internal Control System
The Managing Director, with the assistance of senior
management as required, has responsibility for
identifying, assessing, treating and monitoring risks
and reporting to the Board on risk management.
In order to implement the Company’s Risk Management
Policy, it was considered important that the Company
establish an internal control regime in order to:
32 GBM Resources Annual Report 2013
Corporate Governance Council Recommendation 7
Recognise and Manage Risk (continued)
n Assist the Company to achieve its strategic
objectives;
n Safeguard the assets and interests of the
Company and its stakeholders; and
n Ensure the accuracy and integrity of
external reporting.
Key identified risks to the business are monitored
on an ongoing basis as follows:
n Business risk management
n
n
The Company manages its activities within budgets
and operational and strategic plans.
Internal controls
The Board has implemented internal control
processes typical for the Company’s size and stage
of development. It requires the senior executives to
ensure the proper functioning of internal controls
and in addition it obtains advice from the external
auditors as considered necessary.
Financial reporting
Directors approve a budget for the Company
and regularly review performance against budget
at Board Meetings.
n Operations review
Members of the Board regularly visit the
Company’s exploration project areas, reviewing
both geological practices, and environmental
and safety aspects of operations.
n Environment and safety
The Company is committed to ensuring that sound
environmental management and safety practices
are maintained on its exploration activities.
The Company’s risk management strategy is evolving
and will be an ongoing process and it is recognised that
the level and extent of the strategy will develop with the
growth and change in the Company’s activities.
Risk Reporting
As the Board has responsibility for the monitoring of risk
management it has not required a formal report regarding
the material risks and whether those risks are managed
effectively therefore not complying with Recommendation
7.2 of the Corporate Governance Council. The Board
believes that the Company is currently effectively
communicating its significant and material risks to the
Board and its affairs are not of sufficient complexity to
justify the implementation of a more formal system for
identifying, assessing monitoring and managing risk
in the Company.
The Company does not have an internal audit function.
Managing Director and Chief Financial Officer
Written Statement
The Board requires the Managing Director and the
Company Secretary provide a written statement that
the financial statements of company present a true and
fair view, in all material aspects, of the financial position
and operational results and have been prepared in
accordance with Australian Accounting Standards and
the Corporation Act. The Board also requires that the
Managing Director and Company Secretary provide
sufficient assurance that the declaration is founded on a
sound system of risk management and internal control,
and that the system is working effectively.
The declarations have been received by the Board, in
accordance with Recommendation 7.3 of the Corporate
Governance Council.
Corporate Governance Council Recommendation 8
Remunerate Fairly and Responsibly
Remuneration Committee
The Board does not have a separate Remuneration
Committee and as such does not comply with
Recommendations 8.1 and 8.2 of the Corporate
Governance Council. Remuneration arrangements
for Directors are determined by the full Board. The
Board is also responsible for setting performance
criteria, performance monitors, share option schemes,
superannuation, termination and retirement entitlements,
and professional indemnity and liability insurance cover.
The Board considers that the Company is effectively
served by the full Board acting as a whole in
remuneration matters, and ensures that all matters
of remuneration continue to be decided upon in
accordance with Corporations Act requirements, by
ensuring that no Director participates in any deliberations
regarding their own remuneration or related issues.
Distinguish Between Executive
and Non-Executive Remuneration
The Company does distinguish between the remuneration
policies of its Executive and Non-Executive Directors in
accordance with Recommendation 8.3 of the Corporate
Governance Council.
Executive Directors receive salary packages which may
include performance based components, designed to
reward and motivate, including the granting of share
options, subject to shareholder approval and vesting
conditions relating to continuity of engagement.
Non-Executive Directors receive fees agreed on an
annual basis by the Board, within total Non-Executive
remuneration limits voted upon by shareholders at
Annual General Meetings. In the current financial year,
no Non-Executive Director received shares or share
options as remuneration.
GBM Resources Annual Report 2013 33
Directors’ Report
The Directors present their report together with the
consolidated financial statements for the Company
and its controlled entities (‘Group’) for the financial year
ended 30 June 2013.
Directors
The names of Directors in office at any time during or
since the end of the year are:
Peter Thompson
B.Bus, CPA, FCIS
Managing Director/Executive Chairman
Experience
Mr Thompson is a CPA qualified accountant and Fellow
of Chartered Secretaries Australia. He has over 30 years
experience in the mining industry in Australia, UK and
South America. He has held senior roles with several
major companies including Xstrata Plc, MIM Holdings Ltd
and Mt Edon Gold Mines.
Since 2000, Mr Thompson has been involved in the
development of various infrastructure projects, including
mine and refinery expansions and establishment of
infrastructure including roads, rail, port and power utilities.
Mr Thompson has held no other directorships of listed
companies in the last 3 years.
Cameron Switzer
BSc(Hons), MAusMM, MAIG
Non-Executive Director
Experience
Mr Switzer is a geologist with over 24 years of
experience gained in 11 countries. He has held senior
positions with a number of major mining companies
including Senior Project Geologist at Newcrest Mining
Ltd’s Telfer gold mine in Western Australia and Geology
Manager at Acacia Resources Ltd’s Union Reef Gold
Mine in the Northern Territory. Mr Switzer was also
Principal Geologist with MIM Exploration Ltd for seven
years during which time he gained broad experience
with a range of deposits and geological and operating
environments. Mr Switzer has a strong skill base in
Cu Au and most recently coal.
Mr Switzer has a track record in the successful
identification of mineral deposits, highly successful
project generation, exploration management, validation
of resources and the subsequent commercialisation of
resources. Mr Switzer is a geological consultant based
in Queensland.
Mr Switzer is also the President and CEO of TSX.V listed
entity WCB Resources Ltd, a junior explorer focussed
in the Asia Pacific Region.
Mr Switzer has held no other directorships of listed
companies in the last 3 years.
34 GBM Resources Annual Report 2013
Guan Huat (Sunny) Loh
BBA, MBA, ACIS
Non-Executive Director
Experience
Mr Loh is the Managing Director of Swift Venture
Holdings Corporation, an investment Company focussed
on investing in small to mid sized listed companies and
resources based companies in Asia.
Mr Loh is the Vice Chairman and Board Member of
Shanghai Fortune Capital, a professional investment
banking firm based in Shanghai, which has a focus
on the restructuring and disposal of state owned
companies, as well as merger and acquisition advisory
services.
Mr Loh has held no other directorships of listed
companies in the last 3 years.
Chiau Woei Lim
MBA
Non-Executive Director (Appointed 2 September 2013)
Experience
Mr Lim is managing director and major shareholder
of Angka Alamjaya SDN BHD (AASB) which owns the
Lubuk Mandi Gold Mine in Malaysia. Mr Lim has a wealth
of experience in quarrying, construction and property
development.
He holds a MBA from Leicester University UK and
science degree in Electrical and Computer Engineering
from Oklahoma State University, USA.
Mr Lim has held no other directorships of listed
companies in the last 3 years.
neil norris
BSc(Hons), MAIMM, MAIG
Exploration Director – Executive
Experience
Mr Norris is a geologist with over 25 years’ experience
gained in Australia and overseas. Recently he was Group
Exploration Manager for Perseverance Corporation
Limited and spent over ten years with Newmont
Australia Limited holding senior positions in both mining
and exploration areas. A key achievement was his
development of the geological models which contributed
to the discovery of the Phoenix ore body at Fosterville.
Mr Norris was also involved in the discovery of the world
class Cadia and Ridgeway deposits. Mr Norris has a
track record in the successful identification of mineral
deposits and his experience will greatly advance GBM’s
exploration efforts.
Mr Norris has held no other directorships of listed
companies in the last 3 years.
Company Secretary
Equity Securities on Issue
Kevin Hart
FCA
Mr Hart is a Chartered Accountant and was appointed to
the position of Company Secretary on 3 February 2010.
He has over 20 years’ experience in accounting and the
management and administration of public listed entities
in the mining and exploration industry.
He is currently a partner in an advisory firm which
specialises in the provision of company secretarial
services to ASX listed entities.
Meetings of Directors
During the financial year, the following meetings of
Directors (including committees) were held:
Directors’ Meetings
number Eligible
to Attend
number
Attended
P Thompson
C Switzer
N Norris
G Loh
8
8
8
8
8
7
8
6
Principal Activities
The principal activity of the Group during the financial
year was gold and copper exploration in Australia.
Operating and Financial Review
During the financial year the Group’s activities were
focussed on exploration at its IOCG style targets at
the Brightlands Project in Queensland and for gold
mineralisation at the Mt Morgan Gold Project in
Queensland and Malmsbury Gold Project in Victoria.
Full details are available in the Review of Operations
in the Annual Report.
Operating Results
The net loss after income tax attributable to members
of the Group for the financial year to 30 June 2013
amounted to $1,727,043 (2012: $1,196,811).
Financial Position
At the end of the financial year, the Group had
$1,521,888 (2012: $1,590,824) in cash on hand and
on deposit. Carried forward exploration expenditure
was $13,740,089 (2012: $13,202,731).
30 June
2013
30 June
2012
Ordinary fully paid shares
327,415,003 236,181,003
Options over
unissued shares
– 129,493,124
Performance Share Rights
–
350,000
Ordinary Fully Paid Shares
During the year ended 30 June 2013 the Company
issued the following ordinary fully paid shares:
n
n
n
n
n
20,000,000 shares at 5 cents each pursuant
to a share placement;
10,000,000 shares at 5 cents each on the
acquisition of the remaining Bungalien phosphate
assets not already owned by the Company;
10,884,000 shares at 5 cents each pursuant
to a share purchase plan;
350,000 shares on the exercise of employee
performance rights; and
50,000,000 shares at 2 cents each pursuant
to a share placement.
Since 30 June 2013 the Company has issued
57,779,118 shares to nominees of Angka Alamjaya Sdn
Bhd in respect of the acquisition of a 40% interest of that
Company, which holds the Lubuk Mandi gold project
mining concession.
Other than the above, no shares have been issued
between the end of the financial year and the date
of this report.
Options over Ordinary Shares
At 30 June 2013, there were nil (2012: 129,493,124)
options to acquire ordinary shares on issue.
During the year ended 30 June 2013, no options were
issued pursuant to the terms of the Company’s Option
Plan (2012: Nil).
During the year ended 30 June 2013 no options were
issued by the Company.
During the year ended 30 June 2013 no ordinary shares
were issued on exercise of options (2012: Nil).
There were 129,493,124 listed options (GBZOA) which
expired unexercised during the financial year (2012: Nil).
GBM Resources Annual Report 2013 35
Directors’ Report
Equity Securities on Issue (continued)
Other than the following option issues, no options have
been issued, exercised or cancelled between the end of
the financial year and the date of this report:
n
n
n
50 million options issued, exercisable at 3.5 cents
each on or before 30 June 2016, pursuant to a
share placement;
20 million options issued, exercisable at 3.5 cents
each on or before 30 June 2016, pursuant to a
corporate services agreement; and
64,746,562 options issued, exercisable at 3.5 cents
each on or before 30 June 2016, pursuant to a
priority entitlement offer closing on 13 August 2013.
Performance Share Rights
The Company’s Performance Share Rights Plan was
approved by Shareholders at the Company’s Annual
General Meeting held on 30 November 2010.
At 30 June 2013, there were nil (2012: 350,000)
unvested performance share rights to acquire ordinary
shares on issue. The 350,000 performance share
rights on issue at 30 June 2012 vested and became
exercisable on 31 December 2012.
During the year ended 30 June 2013, nil (2012:
1,300,000) performance share rights were issued
pursuant to the terms of the Company’s Performance
Share Rights Plan to employees of the Company.
During the year ended 30 June 2013 350,000 (2012:
1,750,000) ordinary shares were issued on the exercise
of vested performance share rights.
There were no performance share rights cancelled due
to cessation of employment during the financial year
(2012: 300,000). There were no performance share
rights lapsing on expiry date during the financial year
(2012: Nil).
None of the performance share rights on issue entitle the
holder to participate in any share issue of the Company
or any other body corporate.
No performance share rights have been issued,
exercised or cancelled between the end of the financial
year and the date of this report.
Significant Changes in State of Affairs
Other than the following, there were no significant
changes in the state of affairs of the Group during the
financial year, not otherwise disclosed in this Directors’
Report or in the Review of Operations.
n On 20 December 2012, the Company issued
10,000,000 million shares to Swift Venture
Corporation (and its nominees) to acquire the 70%
interest in the Bungalien phosphate rights not
already owned by the Company;
36 GBM Resources Annual Report 2013
n On 11 June 2013 the Company announced
that it had entered into a binding terms sheet to
acquire, subject to shareholder approval and other
conditions precedent, a 40% interest in Angka
Alamjaya Sdn Bhd (AASB), a Malaysian company
which holds the mining concession over the
historic Lubuk Mandi Gold Mine in Malaysia.
Shareholder approval for the acquisition was received
at the Company’s General Meeting on 22 July 2013
and the issue of 57,779,118 ordinary fully paid shares
to acquire the 40% interest in AASB was completed
on 30 August 2013.
Events Subsequent to Balance Date
Other than the following, there has not arisen in the
interval between the end of the financial year and the
date of this report any item, transaction or event of a
material and unusual nature likely, in the opinion of the
Directors of the Company to affect substantially the
operations of the Group, the results of those operations
or the state of affairs of the Group in subsequent
financial years.
n On 22 July 2013 the Company obtained
shareholder approval to proceed with the issue of
shares for the acquisition of the 40% interest in
AASB and to proceed with a Priority Entitlement
Offer of options to holders of listed GBZOA options
that expired on 30 June 2013;
n On 13 August 2013, the Company’s Priority
Entitlement Offer closed with the subsequent issue
of 64,746,562 listed options (GBZO) exercisable
at 3.5 cents each on or before 30 June 2016.
Entitlements under the offer were allotted on
19 August 2013 and the offer was finalised with the
issue of the shortfall options on 27 August 2013.
Total proceeds of $323,733 were received from
the issue of these options;
n On 22 August 2013 the Company completed the
issue of 50 million listed options (GBZO) exercisable
at 3.5 cents each on or before 30 June 2016,
pursuant to shareholder approval received on
22 July 2013 and which were securities attaching to
a share placement completed on 28 June 2013;
n On 30 August 2013 the Company issued 20 million
listed options (GBZO) exercisable at 3.5 cents
each on or before 30 June 2016, to Alvito Capital
Holdings Inc for corporate advisory and promotional
services provided to the Company;
Events Subsequent to Balance Date
(continued)
n On 19 August 2013 the Company advised that it
had completed the Acquisition and Joint Venture
Agreement pursuant to which the Company would
acquire a 40% interest in AASB, a Malaysian
Company holding the mining concession for the
Lubuk Mandi Gold Project, and enter into a joint
venture with AASB to assess, and if positive,
commence recommissioning of the Lubuk Mandi
Gold Project;
On 30 August 2013 the Company completed the
issue of 57,779,118 ordinary fully paid shares to
nominees of AASB in respect of the acquisition; and
n On 2 September 2013 the Company appointed
Mr Chiau Woei Lim, Managing Director of AASB,
to the Board as a Non-Executive Director of GBM
Resources Limited.
Dividends
No dividends were paid during the year and the Directors
recommend that no dividends be paid or declared for
the financial year ended 30 June 2013.
Likely Developments and
Expected Results of Operations
Comments on expected results of the operations of
the Company are included in this report under the
Review of Operations.
Disclosure of other information regarding likely
developments in the operations of the Company in
future financial years and the expected results of those
operations is likely to result in unreasonable prejudice
to the Company. Accordingly, this information has not
been disclosed in this report.
Environmental Issues
The Group 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 the year ended
30 June 2013.
Remuneration Report (Audited)
The remuneration report is set out in the following
manner:
n Policies used to determine the nature and amount
of remuneration
n Details of remuneration
n Service agreements
n Share based compensation
Remuneration Policy
The Board of Directors is responsible for remuneration
policies and the packages applicable to the Directors of
the Company. Whilst the broad remuneration policy is to
ensure that packages offered properly reflect a person’s
duties and responsibilities and that remuneration is
competitive and attracts, retains, and motivates people
of the highest quality, the Board has consciously been
focused on conserving the Company’s funds to ensure
the maximum amount is spent on exploration and mine
development, and this is reflected in the modest level of
Director fees.
The policy of the Group is to offer competitive salary
packages which provide incentive to Directors and
executives and are designed to reward and motivate.
Total remuneration for all Non-Executive Directors was
voted on by shareholders, whereby it is not to exceed
in aggregate $200,000 per annum. Non-Executive
Directors receive fees agreed on an annual basis by
the Board.
At the date of this report, the Company had not entered
into any remuneration packages with Directors or
senior executives which include performance-based
components.
Details of Remuneration for Directors
and Executive Officers
The remuneration of each Director of the Company
and relevant executive officers are set out in the
attached Table.
Remuneration levels are competitively set to attract and
retain appropriately qualified and experienced Directors
and senior executives. The Board of Directors obtains
independent advice when appropriate in reviewing
remuneration packages.
During the year, there were no senior executives who
were employed by the Company for whom disclosure
is required.
GBM Resources Annual Report 2013 37
Directors’ Report
Remuneration Report (Audited) (continued)
2013
Remuneration
of Directors
and Executives
P Thompson
C Switzer
N Norris
G Loh
2012
Remuneration
of Directors
and Executives
P Thompson
C Switzer
N Norris
Short term
Post
Employment
Share Based
Payments
Salary
and fees
$
275,229
36,000
Other
$
–
–
Super-
annuation
$
24,771
–
275,229
20,037
24,771
36,000
–
–
Options/
shares
$
–
–
–
–
–
Total
$
300,0001
36,000
320,0371
36,000
692,037
Share Based
Payments
as % of
remuneration
–
–
–
–
Total Directors
622,458
20,037
49,542
1 From 1 July 2013 total remuneration payable to the Executive Directors Peter Thompson and Neil Norris has been
reduced by $90,000 per annum as part of the Company’s cash conservation measures implemented during the
2012/13 financial year. See disclosure relating to service agreements for further details of remuneration of executive
directors.
Short term
Post
Employment
Share Based
Payments
Salary
and fees
$
275,230
36,000
Other
$
–
–
Super-
annuation
$
24,770
–
275,230
14,026
24,770
Options/
shares
$
–
–
–
–
–
Total
$
300,000
36,000
314,026
12,000
662,026
Share Based
Payments
as % of
remuneration
–
–
–
–
G Loh (appointed 1 March 2012)
12,000
–
–
Total Directors
598,460
14,026
49,540
Options Provided as Remuneration
During the years ended 30 June 2013 and 30 June 2012
no options have been granted and issued to Directors or
Senior Executives of the Company.
No shares were issued to Directors or Senior Executives
of the Company in respect of the exercise of options
previously granted as remuneration.
Service Agreements
Remuneration and other terms of employment for the
Managing Director and Executive Director are set out
in Service Agreements:
Managing Director
The service agreement has a term of 12 months from
1 July 2013. Total remuneration under the contract
of $300,000 per annum inclusive of superannuation
has been reduced to $210,000 per annum as part of
the Company’s cost reduction program. The reduced
remuneration level will remain in place until otherwise
decided by the Board.
The Service agreement contains certain provisions
typically found in contracts of this nature. The Company
may terminate the Service Agreement without cause by
providing nine months written notice to the individual
or by making a payment in lieu of notice. The Service
Agreement may be terminated immediately in the case
of serious misconduct.
The Service Agreement is subject to annual review.
There is no specific cash bonus or other performance
based compensation contemplated in the agreement.
Long term and short term incentives, may be awarded
subject to Board discretion.
Exploration Director
The service agreement has a term of 12 months from
1 July 2013. Total remuneration under the contract
of $300,000 per annum inclusive of superannuation
has been reduced to $210,000 per annum as part of
the Company’s cost reduction program. The reduced
remuneration level will remain in place until otherwise
decided by the Board. In addition the Exploration
Director is given the use of a company vehicle.
38 GBM Resources Annual Report 2013
Remuneration Report (Audited) (continued)
The Service agreement contains certain provisions typically found in contracts of this nature. The Company may
terminate the Service Agreement without cause by providing nine months written notice to the individual or by
making a payment in lieu of notice. The Service Agreement may be terminated immediately in the case of serious
misconduct.
The Service Agreement is subject to annual review.
There is no specific cash bonus or other performance based compensation contemplated in the agreement.
Long term and short term incentives, may be awarded subject to Board discretion.
Share Based Compensation
At the date of this report the Company has not entered into any agreements with Directors or Senior Executives
which include performance based components. Options issued to Directors are approved by shareholders and were
not the subject of an agreement or issued subject to the satisfaction of a performance condition. Options are issued
to provide an appropriate level of incentive using a cost effective means given the Company’s size and stage of
development.
End of Remuneration Report
Directors’ Interests
The relevant interest of each Director in the ordinary shares and options issued by the Company as notified by the
Directors to the Australian Securities Exchange at the date of this report, is set out in the table below.
Ordinary shares
Director
P Thompson
C Switzer
N Norris
G Loh
C Lim (appointed 2/9/13)
Options
Director
P Thompson
C Switzer
N Norris
G Loh
Ordinary shares
held at
1 July 2012
Movement
during the
financial year
Ordinary Shares
held at
30 June 2013
Ordinary shares held
at the date of the
Directors’ Report
9,562, 582
6,393,750
9,250,000
11,067,131
–
Options
held at
1 July 2012
4,937,525
4,346,875
3,093,635
300,000
300,000
300,000
9,862,582
6,693,750
9,550,000
1,820,934
12,888,065
–
–
9,862,582
6,693,750
9,550,000
13,799,377
24,077,285
Movement
during the
financial year1
(4,937,525)
(4,346,875)
(3,093,635)
Options
held at
30 June 2013
Options held at
the date of the
Directors’ Report
–
–
–
–
–
2,468,763
1,878,126
1,546,818
8,900,000
–
17,800,000
(17,800,000)
C Lim (appointed 2/9/13)
–
–
1 Options expired at 30 June 2013.
Loans to Directors and Executives
There were no loans entered into with Directors or executives during the financial year under review.
Other transactions with Directors and executives are set out in Note 21 to the Financial Report.
GBM Resources Annual Report 2013 39
Directors’ Report
Indemnification and Insurance
of Officers and Auditors
During the year, the Company paid an insurance
premium to insure certain officers of the Company. The
officers of the Company covered by the insurance policy
include the Directors named in this report.
The Directors and Officers Liability insurance provides
cover against all costs and expenses that may be
incurred in defending civil or criminal proceedings that
fall within the scope of the indemnity and that may be
brought against the officers in their capacity as officers
of the Company. The insurance policy does not contain
details of the premium paid in respect of individual
officers of the Company. Disclosure of the nature of the
liability cover and the amount of the premium is subject
to a confidentiality clause under the insurance policy.
Other than the above, the Group has not, during or
since the end of the financial year, given an indemnity or
entered an agreement to indemnify, or paid or agreed
to pay insurance premiums for the Directors, officers or
auditors of the Company or the controlled entity.
Proceedings on Behalf
of the Company
No person has applied to the Court under section
237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene
in any proceedings to which the Company is a party,
for the purpose of taking responsibility on behalf of
the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on
behalf of the Company with leave of the Court under
section 237 of the Corporations Act 2001.
Non-Audit Services
No non-audit services were provided by the external
auditors in respect of the current or preceding
financial year.
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as
required under section 307C of the Corporations Act
2001, is set out on the following page.
Signed in accordance with a resolution of the Board of Directors.
Dated this 27th day of September 2013
Peter Thompson
Executive Chairman
40 GBM Resources Annual Report 2013
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of GBM Resources Limited for the year ended
30 June 2013, I declare that to the best of my knowledge and belief, there have been no contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
b) any applicable code of professional conduct in relation to the audit.
This declaration is in respect of GBM Resources Limited and the entities it controlled during the year.
Perth, Western Australia
27 September 2013
L Di Giallonardo
Partner
HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533.
Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (WA Partnership) is a member of
International, a worldwide organisation of accounting firms and business advisers.
20
GBM Resources Annual Report 2013 41
Consolidated Statement of Comprehensive Income
For the Year Ended 30 June 2013
Revenue
Consulting and professional services
Corporate and project assessment costs
Depreciation
Employee benefits expense
Employee share based payments
Exploration expenditure written off and expensed
Other share based payments
Travel expenses
Administration and other expenses
Loss before income tax
Income tax benefit
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Basic loss per share
Diluted loss per share
Note
3
4
4
13
4
5
–
6
6
Consolidated
2013
$
2012
$
430,401
447,951
(203,394)
(179,741)
(39,663)
(435,636)
(23,333)
(1,114,163)
–
(130,417)
(316,047)
(294,136)
–
(41,992)
(480,427)
(137,167)
(212,797)
(375,400)
(94,102)
(267,433)
(2,011,993)
(1,455,503)
284,950
258,692
(1,727,043)
(1,196,811)
–
(1,727,043)
(1,196,811)
Cents
Cents
(0.7)
(0.7)
(0.5)
(0.5)
The accompanying notes form part of these financial statements
42 GBM Resources Annual Report 2013
Consolidated Statement of Financial Position
As at 30 June 2013
Current assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
non-current assets
Trade and other receivables
Exploration and evaluation expenditure
Property, plant and equipment
Total Non-current Assets
TOTAL ASSETS
Current liabilities
Trade and other payables
Total Current Liabilities
TOTAL LIABILITIES
nET ASSETS
Equity
Issued capital
Option reserve
Share based payments reserve
Accumulated losses
TOTAL EQUITY
Note
Consolidated
2013
$
2012
$
18
7
7
8
9
10
11
13
13
13
1,521,888
134,795
1,656,683
1,590,824
411,712
2,002,536
43,608
13,740,089
444,971
40,687
13,202,731
478,561
14,228,668
13,721,979
15,885,351
15,724,515
446,085
446,085
1,435,847
1,435,847
446,085
1,435,847
15,439,266
14,288,668
21,118,244
–
–
(5,678,978)
18,228,936
698,146
920,638
(5,559,052)
15,439,266
14,288,668
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2013 43
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2013
Share
based
Consolidated
Note
Issued
capital
$
Option
reserve
$
payments Accumulated
reserve
$
losses
$
Total
$
Balance at 1 July 2011
16,950,744
698,146
642,071
(4,362,241) 13,928,720
Share based payments
Shares issued
Loss attributable to
members of the Company
Transfer to issued capital
on exercise of
performance rights
13
11
13
13
70,000
1,044,192
–
–
–
–
442,567
–
–
–
512,567
1,044,192
–
(1,196,811)
(1,196,811)
164,000
–
(164,000)
–
–
Balance at 30 June 2012
18,228,936
698,146
920,638
(5,559,052) 14,288,668
Balance at 1 July 2012
18,228,936
698,146
920,638
(5,559,052) 14,288,668
Share based payments
Shares issued
Loss attributable to
members of the Company
Transfer to issued capital
on exercise of
performance rights
Transfer to accumulated
losses on expiry of options
13
11
13
13
13
–
2,854,308
–
35,000
–
–
–
–
(35,000)
–
–
(698,146)
(908,971)
1,607,117
–
–
23,333
–
–
–
23,333
2,854,308
–
(1,727,043)
(1,727,043)
Balance at 30 June 2013
21,118,244
–
–
(5,678,978) 15,439,266
The accompanying notes form part of these financial statements
44 GBM Resources Annual Report 2013
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2013
Note
Consolidated
2013
$
2012
$
Cash flows from operating activities
Interest received
Research and development concession refund
JV management fee income
Payments to suppliers and employees
43,743
543,642
383,737
(1,151,823)
120,663
–
325,329
(1,231,333)
Net cash flows (used in) operating activities
18(b)
(180,701)
(785,341)
Cash flows from investing activities
Funds provided by JV partner under Farm-in agreement
Payments for exploration and evaluation,
including JV Farm-in spend
Payments to acquire property, plant and equipment
Net cash flows (used in) investing activities
Cash flows from financing activities
Proceeds from the issue of shares and options
Share issue costs
Net cash flows from financing activities
3,528,289
2,711,077
(5,838,058)
(32,784)
(6,537,696)
(39,585)
(2,342,553)
(3,866,204)
2,544,200
(89,882)
1,115,000
(70,808)
2,454,318
1,044,192
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning
of the financial year
Cash and cash equivalents at the end
of the financial year
18(a)
18(a)
(68,936)
(3,607,353)
1,590,824
5,198,177
1,521,888
1,590,824
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2013 45
Notes to the Financial Statements
For the Year Ended 30 June 2013
1. Statement of Significant Accounting Policies
GBM Resources Limited (‘the Company’) is a listed public company domiciled in Australia. The consolidated financial
report of the Company for the financial year ended 30 June 2013 comprises the Company and its subsidiaries
(together referred to as the ‘Group’).
The following is a summary of the material accounting policies adopted by the Group in the preparation of the
financial report. The accounting policies have been consistently applied, unless otherwise stated.
a) Basis of Preparation
The financial report is a general purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001, and Australian Accounting Standards and Interpretations. The
financial report has also been prepared on an historical cost basis, unless otherwise stated. The financial report
is presented in Australian dollars.
Adoption of New and Revised Standards –
Changes in accounting policies on initial application of accounting standards
In the year ended 30 June 2013, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the Group’s operations and effective for the current
annual reporting period. It has been determined by the Directors that there is no impact, material or otherwise,
of the new and revised Standards and Interpretations on the Group’s business and, therefore, no change is
necessary to Group accounting policies.
The Directors have also reviewed all new Standards and Interpretations that have been issued but are not yet
effective for the year ended 30 June 2013. As a result of this review the Directors have determined that there is
no impact, material or otherwise, of the new and revised Standards and Interpretations on the Group’s business
and, therefore, no change necessary to Group accounting policies.
b) Statement of Compliance
The financial report was authorised for issue on 27 September 2013.
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report,
comprising the financial statements and notes thereto, complies with International Financial Reporting Standards
(IFRS).
c) Principles of Consolidation
The consolidated financial statements comprise the financial statements of GBM Resources Limited and its
subsidiaries as at 30 June each year (the Group). The financial statements for the subsidiaries are prepared
for the same reporting period as the parent company, using consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and
expenses and profit and losses resulting from intra-group transactions have been eliminated in full. Subsidiaries
are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated
from the date on which the control is transferred out of the Group.
The acquisition of subsidiaries has been accounted for using the purchase method of accounting. The
purchase method of accounting involves allocating the cost of the business combination to the fair value of
the assets acquired and the liabilities and contingent liabilities assumed at the date of acquisition. Accordingly,
the consolidated financial statements include the results of subsidiaries for the period from their acquisition.
Minority interests represent the portion of profit and loss and net assets in subsidiaries not held by the Group
and are presented separately in the consolidated statement of comprehensive income and within equity in the
consolidated statement of financial position.
d) Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the
revenue can be reliably measured. The following specific recognition criteria must also be met before revenue
is recognised:
Interest Revenue
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the
financial asset.
Management Fees
Revenue from farm-in management fees is recognised at the time the fees are invoiced.
46 GBM Resources Annual Report 2013
1. Statement of Significant Accounting Policies (continued)
e)
Income Tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from, or paid to, the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at the balance date between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
• when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; or
• when the taxable temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled
and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which
the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can
be utilised, except:
• when the deferred income tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of
the transaction, affects neither the accounting profit nor taxable profit or loss; or
• when the deductible temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is
probable that the temporary difference will reverse in the foreseeable future and taxable profit will be
available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Unrecognised deferred income tax assets are re-assessed at each balance date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity
and the same taxation authority.
f) Other Taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part
of the expense item as applicable; and
receivables and payables, which are stated with the amount of GST included.
•
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables in the consolidated statement of financial position.
GBM Resources Annual Report 2013 47
Notes to the Financial Statements
For the Year Ended 30 June 2013
1. Statement of Significant Accounting Policies (continued)
g) Financing Costs
Net financing costs comprise interest payable on borrowings calculated using the effective interest method.
Borrowing costs are expensed as incurred and included in net financing costs.
h) Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.
Assets held under finance leases are initially recognised at their fair value or, if lower, the present value of the
minimum lease payments, each determined at the inception of the lease. The corresponding liability to the lessor
is included in the consolidated statement of financial position as a finance lease obligation.
Lease payments are apportioned between finance charges and reduction of the lease obligation so as to
achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly
against income, unless they are directly attributable to qualifying assets, in which case they are capitalised in
accordance with the general policy on borrowing costs – refer Note 1(g).
Finance leased assets are depreciated on a straight line basis over the estimated useful life of the asset.
Operating lease payments are recognised as an expense on a straight line basis over the lease term, except
where another systematic basis is more representative of the time pattern in which economic benefits from the
leased asset are consumed.
i) Cash and Cash Equivalents
Cash and short-term deposits in the consolidated statement of financial position comprise cash at bank and in
hand. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the consolidated statement of cash flows, cash and cash equivalents consist of cash and
cash equivalents as defined above, net of outstanding bank overdrafts.
j)
Trade and Other Receivables
Trade receivables, which generally have 30–90 day terms, are recognised and carried at original invoice amount
less an allowance for any uncollectible amounts. An allowance for doubtful debts is made when there is
objective evidence that the Group will not be able to collect the debts. Bad debts are written off when identified.
k) Plant and Equipment
Plant and equipment is stated at cost, less accumulated depreciation and any accumulated impairment losses.
Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing
the parts is incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying
amount of the plant and equipment as a replacement only if it is eligible for capitalisation.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Office furniture and equipment
Plant and equipment
Motor Vehicles
2.5-20 years
0-40 years
8 years
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate,
at each financial year end.
(i) Impairment
The carrying values of plant and equipment are reviewed for impairment at each reporting date, with recoverable
amount being estimated when events or changes in circumstances indicate that the carrying value may
be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. For an asset that does not generate largely independent cash inflows, recoverable amount is determined
for the cash-generating unit to which the asset belongs, unless the asset’s value in use can be estimated to be
close to its fair value.
An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount.
48 GBM Resources Annual Report 2013
1. Statement of Significant Accounting Policies (continued)
k) Plant and Equipment (continued)
(ii) De-recognition and Disposal
An item of property, plant and equipment is de-recognised upon disposal or when no further future economic
benefits are expected from its use or disposal.
Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is de-
recognised.
l)
Investments and Other Financial Assets
Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classified
as either financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments,
or available-for-sale investments, as appropriate. When financial assets are recognised initially, they are
measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable
transactions costs. The Group determines the classification of its financial assets after initial recognition and,
when allowed and appropriate, re-evaluates this designation at each financial year-end.
All regular way purchases and sales of financial assets are recognised on the trade date i.e. the date that the
Group commits to purchase the asset. Regular way purchases or sales are purchases or sales of financial
assets under contracts that require delivery of the assets within the period established generally by regulation
or convention in the marketplace.
(i) Financial Assets at Fair Value through Profit or Loss
Financial assets classified as held for trading are included in the category ‘financial assets at fair value through
profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling in
the near term. Derivatives are also classified as held for trading unless they are designated as effective hedging
instruments. Gains or losses on investments held for trading are recognised in profit or loss.
(ii) Held-to-Maturity Investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-
to-maturity when the Group has the positive intention and ability to hold to maturity.
Investments intended to be held for an undefined period are not included in this classification. Investments
that are intended to be held-to-maturity, such as bonds, are subsequently measured at amortised cost. This
cost is computed as the amount initially recognised minus principal repayments, plus or minus the cumulative
amortisation using the effective interest method of any difference between the initially recognised amount
and the maturity amount. This calculation includes all fees and points paid or received between parties to the
contract that are an integral part of the effective interest rate, transaction costs and all other premiums and
discounts. For investments carried at amortised cost, gains and losses are recognised in profit or loss when the
investments are de-recognised or impaired, as well as through the amortisation process.
(iii) Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. Such assets are carried at amortised cost using the effective interest method.
Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired,
as well as through the amortisation process.
(iv) Available-for-Sale Investments
Available-for-sale investments are those non-derivative financial assets that are designated as available-for-
sale or are not classified as any of the three preceding categories. After initial recognition available-for sale
investments are measured at fair value with gains or losses being recognised as a separate component of
equity until the investment is derecognised or until the investment is determined to be impaired, at which
time the cumulative gain or loss previously reported in equity is recognised in profit or loss.
The fair value of investments that are actively traded in organised financial markets is determined by reference
to quoted market bid prices at the close of business on the balance date. For investments with no active
market, fair value is determined using valuation techniques. Such techniques include using recent arm’s length
market transactions; reference to the current market value of another instrument that is substantially the same;
discounted cash flow analysis and option pricing models.
GBM Resources Annual Report 2013 49
Notes to the Financial Statements
For the Year Ended 30 June 2013
1. Statement of Significant Accounting Policies (continued)
m) Exploration and Evaluation Expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied:
(i)
(ii)
the rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:
(a)
the exploration and evaluation expenditures are expected to be recouped through successful
development and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the reporting date reached
a stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of interest
are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation
and amortised of assets used in exploration and evaluation activities. General and administrative costs are only
included in the measurement of exploration and evaluation costs where they are related directly to operational
activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the
carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable
amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated
being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss
(if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised for
the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest,
the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified
to development.
n)
Impairment of Assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any
such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate
of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell
and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets or groups of assets and the asset’s value in use cannot
be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-
generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds
its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its
recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset. Impairment losses relating to continuing operations are recognised in those expense categories
consistent with the function of the impaired asset unless the asset is carried at re-valued amount (in which case
the impairment loss is treated as a re-valuation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the
recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a
change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was
recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That
increased amount cannot exceed the carrying amount that would have been determined, net of depreciation,
had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss
unless the asset is carried at re-valued amount, in which case the reversal is treated as a re-valuation increase.
After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying
amount, less any residual value, on a systematic basis over its remaining useful life.
50 GBM Resources Annual Report 2013
1. Statement of Significant Accounting Policies (continued)
o) Trade and Other Payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services
provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes
obliged to make future payments in respect of the purchase of these goods and services.
p)
Interest Bearing Liabilities
All loans and borrowings are initially recognised at the fair value of the consideration received less directly
attributable transaction costs.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost
using the effective interest method.
Gains and losses are recognised in profit or loss when the liabilities are de-recognised.
q) Employee Benefits
(i) Wages, Salaries, Annual Leave and Sick Leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and non-accumulating sick
leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect
of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when
the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and
are measured at the rates paid or payable.
(ii) Long Service Leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the
present value of expected future payments to be made in respect of services provided by employees up to the
reporting date using the projected unit credit method. Consideration is given to expected future wage and salary
levels, experience of employee departures, and period of service. Expected future payments are discounted
using market yields at the reporting date on national government bonds with terms to maturity and currencies
that match, as closely as possible, the estimated future cash outflows.
r) Share Based Payments
Equity Settled Transactions
The Group provides benefits to employees (including senior executives) of the Group in the form of share based
payments, whereby employees render services in exchange for shares or rights over shares (equity-settled
transactions).
The cost of these equity-settled transactions with employees is measured by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value of options is determined by using a Black
and Scholes model. Share rights are valued at the underlying market value of the ordinary shares over which
they are granted.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions
linked to the price of the shares of GBM Resources Limited (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant
employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects (i) the extent to which the vesting period has expired and (ii) the Group’s best estimate of the number
of equity instruments that will ultimately vest. No adjustment is made for the likelihood of market performance
conditions being met as the effect of these conditions is included in the determination of fair value at grant
date. The charge or credit to the consolidated statement of comprehensive income for a period represents
the movement in cumulative expense recognised as at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only
conditional upon a market condition.
GBM Resources Annual Report 2013 51
Notes to the Financial Statements
For the Year Ended 30 June 2013
1. Statement of Significant Accounting Policies (continued)
r) Share Based Payments (continued)
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had
not been modified. In addition, an expense is recognised for any modification that increases the total fair value
of the share based payment arrangement, or is otherwise beneficial to the employee, as measured at the date
of modification.
If an equity-settled award is cancelled, the cumulative expense recognised in respect of that award is transferred
from its respective reserve to accumulated losses. However, if a new award is substituted for the cancelled
award and designated as a replacement award on the date that it is granted, the cancelled and new awards
are treated as if they were a modification of the original award, as described in the previous paragraph.
s) Share Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net of tax, from the proceeds.
t) Earnings Per Share
Basic earnings per share (“EPS”) is calculated by dividing the net profit or loss attributable to members of the
Company for the reporting period, after excluding any costs of servicing equity (other than ordinary shares
and converting preference shares classified as ordinary shares for EPS calculation purposes), by the weighted
average number of ordinary shares of the Company, adjusted for any bonus element.
Diluted EPS is calculated by dividing the basic EPS earnings, adjusted by the after tax effect of financing costs
associated with dilutive potential ordinary shares and the effect on revenues and expenses of conversion,
by the weighted average number of ordinary shares and potential dilutive ordinary shares, adjusted for any
bonus element.
u) Critical Accounting Estimates and Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the Group and that are believed
to be reasonable under the circumstances.
Accounting for capitalised mineral exploration and evaluation expenditure
The Group’s accounting policy is stated at 1(m). A regular review is undertaken of each area of interest to
determine the reasonableness of the continuing carrying forward of costs in relation to that area of interest.
Share based payments
The Group uses independent advisors to assist in valuing share based payments.
Estimates and assumptions used in these valuations are disclosed in the notes in periods when these share
based payments are made.
52 GBM Resources Annual Report 2013
2. Financial Risk Management
The Group has exposure to a variety of risks arising from its use of financial instruments. This note presents
information about the Group’s exposure to the specific risks, and the policies and processes for measuring and
managing those risks. Further quantitative disclosures are included throughout this financial report. The Board of
Directors has overall responsibility for the risk management framework.
a) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from transactions with customers and investments.
Trade and other receivables
The Group has no investments and the current nature of the business activity does not result in trading
receivables. The receivables that the Group recognises through its normal course of business are short term
in nature and the most significant (in quantity) is the receivable from the Australian Taxation Office and interest
receivable. The risk of non recovery of receivables from this source is considered to be negligible.
Cash deposits
The Group’s primary banker is Commonwealth Bank. At balance date all operating accounts and funds held
on deposit are with this bank. The Directors believe any risk associated with the use of only one bank is
mitigated by its size and reputation. Except for this matter the Group currently has no significant concentrations
of credit risk.
b) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Group’s reputation.
The Group manages its liquidity risk by monitoring its cash reserves and forecast spending. Management
is cognisant of the future demands for liquid finance resources to finance the Group’s current and future
operations, and consideration is given to the liquid assets available to the Group before commitment is made
to future expenditure or investment.
c) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters,
while optimising any return.
Currency risk
The Group is not exposed to any currency risk other than the respective functional currencies of each Company
within the Group, the Australian dollar (AUD).
Interest rate risk
As the Group has significant interest bearing assets, the Group’s income and operating cash flows are materially
exposed to changes in market interest rates. The assets are short term interest bearing deposits, and no
financial instruments are employed to mitigate risk (Note 16 – Financial Instruments).
d) Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. The Board of Directors monitors capital
expenditure and cash flows as mentioned in (b).
GBM Resources Annual Report 2013 53
Notes to the Financial Statements
For the Year Ended 30 June 2013
3. Revenue
Interest income
Joint venture management fee
4. Expenses
Employee expenses
Gross employee benefit expense:
Wages and salaries
Directors’ fees
Superannuation expense
Other employee costs
Less amount allocated to exploration
Net consolidated statement of comprehensive income
employee benefit expense
Depreciation expense:
Office equipment and software
Site equipment
Motor vehicles
Exploration costs:
Unallocated exploration costs
Exploration costs written off
Note
9
9
9
8
Consolidated
2013
$
46,664
383,737
430,401
2012
$
122,622
325,329
447,951
1,668,099
72,000
147,137
78,504
1,965,740
(1,530,104)
1,763,943
48,000
158,475
131,919
2,102,337
(1,621,910)
435,636
480,427
21,250
2,083
16,330
39,663
136,381
977,782
1,114,163
24,385
2,083
15,524
41,992
159,310
53,487
212,797
5. Income Tax
Income tax recognised in profit and loss
a)
The prima facie tax benefit on the operating result is reconciled
to the income tax provided in the financial statements as follows:
Accounting loss before income tax from continuing operations
(2,011,993)
(1,455,503)
Income tax benefit calculated at 30%
Share based payments
Capital raising costs claimed
Exploration costs written off
Unused tax losses and temporary differences
not recognised as deferred tax assets
R&D tax concession
Income tax (benefit) reported in the
consolidated statement of comprehensive income
(603,598)
7,000
(58,789)
293,335
362,052
(284,950)
(436,651)
153,770
(87,110)
16,046
353,945
(258,692)
(284,950)
(258,692)
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by Australian corporate entities
on taxable profits under Australian tax law. There has been no change in the corporate tax rate when compared with
the previous reporting period.
54 GBM Resources Annual Report 2013
5. Income Tax (continued)
b) Unrecognised deferred tax assets and liabilities
The following deferred tax assets and liabilities
have not been brought to account:
Unrecognised deferred tax assets relate to:
Losses available for offset against future taxable income
Capital raising costs
Accrued expenses and liabilities
Unrecognised deferred tax liabilities relate to:
Exploration expenditure
Net unrecognised deferred tax asset
Consolidated
2013
$
2012
$
5,484,166
130,512
73,976
5,688,654
4,654,374
164,087
131,338
4,949,799
(4,122,027)
(3,912,746)
(4,122,027)
(3,912,746)
1,566,627
1,037,053
The deductible temporary differences and tax losses do not expire under current tax legislation. Potential deferred
tax assets attributable to tax losses carried forward have not been brought to account because the Directors do
not believe it is appropriate to regard realisation of the future tax benefit as probable.
The potential future income tax benefit will only be obtained if:
(i)
the Group derives future assessable income of a nature and an amount sufficient to enable the benefit to be
realised in accordance with Division 170 of the Income Tax Assessment Act 1997;
(ii)
the Group companies continue to comply with the conditions for deductibility imposed by the law; and
(iii) no changes in tax legislation adversely affect the Group in realising the benefits.
6. Loss Per Share
Loss used in calculation of loss per share
(1,727,043)
(1,196,811)
Consolidated
2013
$
2012
$
Basic earnings/(loss) per share
Weighted average number of shares used
in the calculation of earnings per share
Cents
Cents
(0.7)
(0.5)
#
#
266,121,118
222,862,253
Options and performance share rights
Options and share rights to acquire ordinary shares granted by the Company and not exercised at the reporting date
have been included in the determination of diluted earnings per share to the extent to which they are dilutive.
GBM Resources Annual Report 2013 55
Notes to the Financial Statements
For the Year Ended 30 June 2013
Note
7. Trade and Other Receivables
Current
Amounts due from farm-in partner
Research and development tax concession
GST recoverable
Other debtors
non-current
Security and environmental bonds
Consolidated
2013
$
95,129
–
36,118
3,548
134,795
43,608
43,608
2012
$
–
258,692
59,158
93,862
411,712
40,687
40,687
8. Exploration and Evaluation Expenditure
Exploration and evaluation phase:
Capitalised costs at the start of the financial year
Costs capitalised during the financial year
Capitalised costs written off during the financial year
4
13,202,731
1,515,140
(977,782)
9,478,299
3,777,919
(53,487)
Capitalised costs at the end of the financial year
13,740,089
13,202,731
Ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on successful
development and commercial exploitation or alternatively, sale of the respective areas.
9. Property, Plant and Equipment
Carrying values at 30 June 2013:
Land:
Cost
Depreciation
Office equipment and software:
Cost
Depreciation
Site equipment and plant:
Cost
Depreciation
Motor vehicles:
Cost
Depreciation
Total
56 GBM Resources Annual Report 2013
308,499
–
308,499
153,402
(123,087)
30,315
22,545
(6,800)
15,745
130,633
(40,221)
90,412
444,971
308,499
–
308,499
147,330
(101,838)
45,492
22,545
(4,717)
17,828
130,633
(23,891)
106,742
478,561
9. Property, Plant and Equipment (continued)
Note
Consolidated
2013
$
2012
$
Reconciliation of movements:
Land:
Opening net book value
Cost of additions
Disposals
Depreciation
Closing net book value
Office equipment and software:
Opening net book value
Cost of additions
Disposals
Depreciation
Closing net book value
Site equipment and plant:
Opening net book value
Cost of additions
Disposals
Depreciation
Closing net book value
Motor vehicles:
Opening net book value
Cost of additions
Disposals
Depreciation
Closing net book value
Total
10. Trade and Other Payables
Current
Trade creditors
Sundry creditors and accruals
Employee leave liabilities
Advanced JV Farm-in funds unspent
4
4
4
308,499
–
–
–
308,499
45,492
6,073
–
(21,250)
30,315
17,828
–
–
(2,083)
15,745
106,742
–
–
(16,330)
90,412
444,971
141,486
208,012
96,587
446,085
–
446,085
308,499
–
–
–
308,499
27,212
42,665
–
(24,385)
45,492
19,910
–
–
(2,082)
17,828
98,635
23,631
–
(15,524)
106,742
478,561
580,918
515,190
81,698
1,177,806
258,041
1,435,847
GBM Resources Annual Report 2013 57
Notes to the Financial Statements
For the Year Ended 30 June 2013
11. Issued Capital
Issued capital at the balance date
327,415,003 236,181,003
21,118,244
18,228,936
Issue
price
2013
no.
2012
No.
2013
$
2012
$
Movements in issued capital:
On issue at the start of the year
Shares issued on the exercise
of vested performance rights
Shares issued on the exercise
of vested performance rights
Share placement
Shares issued in consideration
for corporate services
Share purchase plan
Share placement
Shares issued to acquire
phosphate rights
Shares issued on the exercise
of vested performance rights
Share placement
Share issue costs
236,181,003 219,793,503
18,228,936
16,950,744
$0.09
$0.10
$0.08
$0.10
$0.05
$0.05
–
–
–
1,100,000
650,000
13,937,500
–
–
–
99,000
65,000
1,115,000
–
10,884,000
20,000,000
700,000
–
–
–
544,200
1,000,000
70,000
–
–
$0.05
10,000,000
$0.10
$0.02
350,000
50,000,000
–
–
–
–
–
500,000
–
35,000
1,000,000
(189,892)
–
–
(70,808)
On issue at the end of the reporting year
327,415,003 236,181,003
21,118,244
18,228,936
Shares Subject to Restriction Agreement
At balance date there were no ordinary shares subject to any restrictions.
12. Options and Performance Rights
Details of the Company’s Incentive Option Scheme are provided at Note 14.
a) Options over unissued shares
Options on issue at the balance date
Movements in options:
Options on issue at the start of the year
Options issued for corporate services
(Note 13)
Options cancelled on expiry
Options on issue at the end
of the reporting year
2013
no.
2012
No.
2013
$
2012
$
– 129,493,124
–
698,146
129,493,124 113,793,124
698,146
698,146
–
(129,493,124)
15,700,000
–
–
(698,146)
–
– 129,493,124
–
698,146
i) Options Issued, Exercised and Expired During the Year
During the financial year the Company granted no options over unissued shares (2012: 15,700,000).
During the year, no options over unissued shares were exercised (2012: Nil).
During the year, 129,493,124 options were cancelled on expiry of their exercise term (2012: Nil).
ii) Options on Issue at the Balance Date
The number of options outstanding over unissued ordinary shares at 30 June 2013 is nil (2012: 129,493,124).
58 GBM Resources Annual Report 2013
12. Options and Performance Rights (continued)
a) Options over unissued shares (continued)
iii) Subsequent to the Balance Date
Other than the following option issues, no options have been issued, exercised or cancelled between the end of the
financial year and the date of this report:
•
•
•
50 million options issued, exercisable at 3.5 cents each on or before 30 June 2016, pursuant to a share
placement;
20 million options issued, exercisable at 3.5 cents each on or before 30 June 2016, pursuant to a corporate
services agreement; and
64,746,562 options issued, exercisable at 3.5 cents each on or before 30 June 2016, pursuant to a priority
entitlement offer closing on 13 August 2013.
iv) Basis and assumptions used in the valuation of options granted in the period
There were no options granted during the period.
b) Performance Share Rights
Details of the Company’s Performance Rights Plan are provided at Note 14.
Issue
price
2013
no.
2012
No.
2013
$
2012
$
Performance rights on issue
at the balance date
Movements in share rights:
Share rights on issue at the
start of the year
Share rights issued to employees
during the year
Vested share rights exercised
during the year
Unvested share rights lapsed
Performance share rights on issue
at the end of the reporting year
Number of vested performance share rights
at the end of the reporting year
–
350,000
350,000
1,100,000
Nil
–
1,300,000
(350,000)
–
(1,750,000)
(300,000)
–
–
350,000
–
–
–
–
–
–
–
–
–
–
–
–
–
i) Performance share rights Issued, Exercised and Expired during the Year
During the financial year the Company granted nil performance share rights (2012: 1,300,000)
During the year, 350,000 vested share rights were exercised into ordinary fully paid shares (2012: 1,750,000).
No unvested performance share rights were cancelled on cessation of employment (2012: 300,000).
ii) Performance share rights on Issue at the Balance Date
The number of share rights, vested unexercised and un-vested at 30 June 2013 is nil (2012: 350,000).
iii) Subsequent to the Balance Date
No share rights have been granted, exercised or cancelled subsequent to the reporting date.
iv) Basis and assumptions used in the valuation of share rights granted in the period
Share rights are valued at the underlying market value of the ordinary shares over which they are granted.
GBM Resources Annual Report 2013 59
Notes to the Financial Statements
For the Year Ended 30 June 2013
13. Reserves and Accumulated Losses
Share based payments reserve i
Opening balance
Employee share based payments – performance rights
Share based payments – options issued for corporate services
Transferred to issued capital on exercise of performance rights
Transferred to accumulated losses on cancellation of expired options
Closing balance
Option reserve ii
Opening balance
Transferred to accumulated losses on cancellation of expired options
Closing balance
Accumulated Losses
Opening balance
Net loss attributable to the members of the Company
Transferred from reserves on cancellation of expired options
Closing balance
Consolidated
2013
$
2012
$
920,638
23,333
–
(35,000)
(908,971)
–
698,146
(698,146)
–
642,071
137,167
305,400
(164,000)
–
920,638
698,146
–
698,146
(5,559,052)
(1,727,043)
1,607,117
(4,362,241)
(1,196,811)
–
(5,678,978)
(5,559,052)
i) Share based payments reserve
The share based payments reserve represents the fair value of performance share rights and options, issued as
consideration for services to employees or consultants as remuneration, or to third parties for the acquisition of
assets, goods or services.
ii) Option reserve
The option reserve represents the proceeds received on the issue of options.
14. Employee Benefits
Details of the Company’s share right and option plans, under which share rights and options are issuable to
employees, directors and consultants are summarised below. Details of share rights and options issued to Directors
and executives are set out in Note 20.
Incentive Option Plan
The Company has a formal option plan for the issue of options to employees, directors and consultants, which was
approved by shareholders at the Company’s Annual General Meeting on 30 November 2010. Options are granted
free of charge and are exercisable at a fixed price in accordance with the terms of the grant. Options over unissued
shares are issued under the terms of the Plan at the discretion of the Board.
There are no options on issue under the Incentive Option Plan at 30 June 2013 (2012: nil). Refer to Note 12(a).
Performance Rights Plan
The Company has a formal plan for the issue of performance share rights to employees, which was approved by
shareholders at the Company’s Annual General Meeting on 30 November 2010. Share rights are granted free of
charge and are exercisable into ordinary fully paid shares in accordance with the terms of the grant. Share rights
are issued to employees under the terms of the Plan at the discretion of the Board.
There are nil share rights on issue under the Performance Rights Plan at 30 June 2013 (2012: 350,000).
Refer to Note 12(b).
60 GBM Resources Annual Report 2013
15. Segment Reporting
Operating segments are identified and segment information disclosed, where appropriate, on the basis of internal
reports reviewed by the Company’s Board of Directors, being the Group’s Chief Operating Decision Maker, as defined
by AASB 8.
The Group has identified its operating segments based on the internal reports that are reviewed and used by the
Board of Directors in assessing performance and determining the allocation of resources. Reportable segments
disclosed are based on aggregating operating segments, where the segments have similar characteristics. The
Group’s sole activity is mineral exploration and resource development wholly within its Brightlands IOCG project in
North Queensland, and its Malmsbury Gold Project in Victoria, Australia, therefore it has aggregated all operating
segments into the one reportable segment being mineral exploration.
The reportable segment is represented by the primary statements forming these financial statements.
16. Financial Instruments
Credit risk
The Directors do not consider that the Group’s financial assets are subject to anything more than a negligible level
of credit risk, and as such no disclosures are made. Refer to Note 2(a).
Impairment losses
The Directors do not consider that any of the Group’s financial assets are subject to impairment at the reporting
date. No impairment expense or reversal of impairment charge has occurred during the reporting period.
Liquidity risk
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding
the impact of netting agreements. Refer to Note 2(b):
Consolidated
Carrying
amount
$
Contractual
cash flows
$
6 months
or less
$
6-12
months
$
1-2
years
$
2-5
years
$
More than
5 years
$
30 June 2013
Trade and other payables 141,486
141,486
141,486
141,486
141,486
141,486
30 June 2012
Trade and other payables 580,918
580,918
580,918
580,918
580,918
580,918
–
–
–
–
–
–
–
–
–
–
–
–
The Group does not have any interest bearing liabilities to report a weighted average interest rate.
Currency risk
The Group does not have any direct exposure to foreign currency risk, other than in respect of its impact on the
economy and commodity prices generally. Refer to Note 2 (c).
Interest rate risk
At the reporting date the interest profile of the Group’s interest-bearing financial instruments were:
–
–
–
–
–
–
Consolidated
2013
$
2012
$
–
–
1,521,888
1,521,888
1,590,824
1,590,824
GBM Resources Annual Report 2013 61
Fixed rate instruments:
Financial liabilities
Variable rate instruments:
Financial assets
Notes to the Financial Statements
For the Year Ended 30 June 2013
16. Financial Instruments (continued)
Fair value sensitivity analysis for fixed rate investments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss,
and the Group does not designate derivatives as hedging instruments under a fair value hedge accounting model.
Therefore a change in interest rates at the reporting date would not affect profit or loss.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) equity and
profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant.
Profit and Loss
Equity
100bp
increase
$
100bp
decrease
$
100bp
increase
$
100bp
decrease
$
15,219
(15,219)
15,219
(15,219)
15,908
(15,908)
15,908
(15,908)
30 June 2013
Variable rate instruments
30 June 2012
Variable rate instruments
Fair values
Fair values versus carrying amounts
The carrying amounts of financial assets and liabilities as described in the consolidated statement of financial
position represent their estimated net fair value.
17. Commitments
a) Exploration
The Group has certain obligations to perform minimum exploration work on mineral leases held. These obligations
may vary over time, depending on the Group’s exploration programmes and priorities. As at balance date, total
exploration expenditure commitments on tenements held by the Group have not been provided for in the financial
statements. These obligations are also subject to variations by farm-out arrangements or sale of the relevant
tenements. This commitment does not include the expenditure commitments which are the responsibility of the
joint venture partners.
b) Operating Lease Commitments
The Group has no operating lease commitments.
c) Contractual Commitment
The Group has no contractual commitments.
62 GBM Resources Annual Report 2013
Consolidated
2013
$
2012
$
1,389,984
131,904
1,521,888
1,465,538
125,286
1,590,824
18. Notes to the Statement of Cash Flows
a) Cash Assets
Cash at bank and on hand
Bank at call cash account
Total cash and cash equivalents
The Bank at call account holds funds at call subject to certain trading
restrictions and pays interest at an average of 5.20% (2012:5.20%).
b)
Reconciliation of Loss from Ordinary Activities after
Income Tax to net Cash Used In Operating Activities
Profit/(Loss) after income tax
(1,727,043)
(1,196,811)
Add (less) non-cash items:
Depreciation
Share based payments
Exploration expenditure written off and expensed
Changes in assets and liabilities:
Increase/(decrease) in trade creditors and accruals
(Increase)/decrease in sundry receivables
(Increase)/decrease in research and development tax concession receivable
Net cash flow from operations
39,662
23,333
1,114,163
18,530
91,962
258,692
(180,701)
41,992
512,567
212,797
(633)
(96,561)
(258,692)
(785,341)
During the 2013 financial year the Company issued 10,000,000 ordinary fully paid shares in consideration for
the acquisition of the 70% Bungalien Phosphate rights from Swift Venture Corporation. The value of the shares
amounted to $500,000.
During the 2012 financial year the Company issued 15,700,000 listed options, exercisable at 20 cents each on
or before 30 June 2013, in consideration for corporate and public relations services to the Company. The value
of the options granted amounted to $305,400).
During the 2012 financial year the Company issued 700,000 ordinary fully paid shares in consideration for corporate
services to the Company. The value of the shares issued amounted to $70,000.
19. Auditor’s Remuneration
Amounts received or receivable by HLB Mann Judd for:
Audit and review of financial reports
27,750
26,970
GBM Resources Annual Report 2013 63
Notes to the Financial Statements
For the Year Ended 30 June 2013
20. Controlled Entities
a) Particulars in Relation to Ownership of Controlled Entities
Belltopper Hill Pty Ltd
Syndicated Resources Pty Ltd
Willaura Minerals Pty Ltd
Isa Brightlands Pty Ltd
Isa Tenements Pty Ltd
Bungalien Phosphate Pty Ltd
b)
GBM Resources Limited –
Investments in Controlled Entities
Belltopper Hill Pty Ltd
Syndicated Resources Pty Ltd
Willaura Minerals Pty Ltd
Isa Brightlands Pty Ltd
Isa Tenements Pty Ltd
Bungalien Phosphate Pty Ltd
2013
%
100
100
100
100
100
100
$
596,850
100
–
1
1
10
596,962
2012
%
100
100
100
100
100
100
$
596,850
100
810,000
1
1
10
1,406,962
During the 2013 financial year the Company recognised a provision against the investment in Willaura Minerals Pty
Ltd. The fair value of this investment had previously been recognised as fair value acquisition costs on consolidation
in respect of the Willaura Minerals assets acquired on the Company’s initial public offer. The impairment expense has
been included in the write off of exploration costs (Note 4).
2,204,082
–
–
7,630,888
1,368,324
–
(1,726,492)
–
–
–
–
–
–
2,044,873
–
(810,000)
4,466,859
810,211
–
(1,196,811)
–
–
–
–
–
–
(1,726,492)
(1,196,811)
c) Loans to/(from) Controlled Entities
Belltopper Hill Pty Ltd
Syndicated Resources Pty Ltd
Willaura Minerals Pty Ltd
Isa Brightlands Pty Ltd
Isa Tenements Pty Ltd
Bungalien Phosphate Pty Ltd
d) Contribution to Consolidated Result
GBM Resources Limited
Belltopper Hill Pty Ltd
Syndicated Resources Pty Ltd
Willaura Minerals Pty Ltd
Isa Brightlands Pty Ltd
Isa Tenements Pty Ltd
Bungalien Phosphate Pty Ltd
Total
64 GBM Resources Annual Report 2013
21. Key Management Personnel Disclosures
a) Details of Key Management Personnel
The following were key management personnel of the Group at any time during the year and unless otherwise
stated were key management personnel for the entire year.
Non-Executive Directors
Cameron Switzer – Non-Executive Director
Guan Huat Loh – Non-Executive Director
Executive Directors
Peter Thompson – Managing Director
Neil Norris – Exploration Director
Total remuneration paid to key management personnel during the year:
Short-term benefits
Post-employment benefits
Consolidated
2013
$
642,495
49,542
692,037
2012
$
612,486
49,540
662,026
b) Option Holdings of Key Management Personnel
Director
P Thompson
C Switzer
N Norris
G Loh
Balance at
Beginning
of Year
4,937,525
4,346,875
3,093,635
17,800,000
Options
Exercised
Options
Expired
Balance at
End of Year
Vested at
30 June 2013
Exercisable
–
–
–
–
(4,937,525)
(4,346,875)
(3,093,635)
(17,800,000)
–
–
–
–
–
–
–
–
c) Shareholdings of Key Management Personnel
Director
P Thompson
C Switzer
N Norris
G Loh
Balance at
Beginning
of Year
Granted
as
Remuneration
Issued on
Exercise
of Options
Net
Change
Other
9,562,582
6,393,750
9,250,000
11,067,131
–
–
–
–
–
–
–
–
300,000
300,000
300,000
1,565,000
Balance at
End of Year
9,862,582
6,693,750
9,550,000
12,632,131
d) Other Transactions and Balances with Key Management Personnel
During the financial year the Company acquired the 70% interest in the Bungalien phosphate rights that it didn’t
own from Swift Venture Corporation, a Company associated with one of the directors of the Company, Mr Sunny
Loh. Subsequent to shareholder approval at the Company’s annual general meeting, the Company issued, on
20 December 2012, 10 million shares to Swift Venture Corporation (and its nominees) as consideration for the
acquisition.
Other than the above, there are no transactions with Directors, or Director related entities or associates, other than
those reported in the remuneration disclosures in the Remuneration Report contained in the Directors’ Report.
GBM Resources Annual Report 2013 65
Notes to the Financial Statements
For the Year Ended 30 June 2013
22. Related Party Transactions
Total amounts receivable and payable from entities in the wholly-owned
group (see Note 20 for details of controlled entities) at balance date:
non-Current Receivables
Loans to controlled entities
non-Current Payables
Loans from controlled entities
Consolidated
2013
$
2012
$
11,203,294
10,087,783
–
(810,000)
23. Events Subsequent to Balance Date
Other than the following, there has not arisen in the interval between the end of the financial year and the date of
this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the
Company to affect substantially the operations of the Group, the results of those operations or the state of affairs of
the Group in subsequent financial years.
• On 22 July 2013 the Company obtained shareholder approval to proceed with the issue of shares for the
acquisition of the 40% interest in Angka Alamjaya Sdn Bhd (AASB) and to proceed with a Priority Entitlement
Offer of options to holders of listed GBZOA options that expired on 30 June 2013;
• On 13 August 2013, the Company’s Priority Entitlement Offer closed with the subsequent issue of 64,746,562
listed options (GBZO) exercisable at 3.5 cents each on or before 30 June 2016. Entitlements under the offer
were allotted on 19 August 2013 and the offer was finalised with the issue of the shortfall options on 27 August
2013. Total proceeds of $323,733 were received from the issue of these options;
• On 22 August 2013 the Company completed the issue of 50 million listed options (GBZO) exercisable at
3.5 cents each on or before 30 June 2016, pursuant to shareholder approval received on 22 July 2013
and which were securities attaching to a share placement completed on 28 June 2013;
• On 30 August 2013 the Company issued 20 million listed options (GBZO) exercisable at 3.5 cents each on or
before 30 June 2016, to Alvito Capital Holdings Inc for corporate advisory and promotional services provided
to the Company;
• On 19 August 2013 the Company advised that it had completed the Acquisition and Joint Venture Agreement
pursuant to which the Company would acquire a 40% interest in AASB, a Malaysian Company holding the
mining concession for the Lubuk Mandi Gold Project, and enter into a joint venture with AASB to assess, and
if positive, commence recommissioning of the Lubuk Mandi Gold Project.
On 30 August 2013 the Company completed the issue of 57,779,118 ordinary fully paid shares to nominees
of AASB in respect of the acquisition; and
• On 2 September 2013 the Company appointed Mr Chiau Woei Lim, Managing Director of AASB, to the Board
as a Non-Executive Director of GBM Resources Limited.
24. Dividends
There are no dividends paid or payable during the year ended 30 June 2013 or the 30 June 2012 comparative year.
66 GBM Resources Annual Report 2013
25. Contingencies
i) Contingent liabilities
There were no material contingent liabilities not provided for in the financial statements of the Group as at 30 June
2013 or 30 June 2012.
ii) Native Title and Aboriginal Heritage
Native title claims have been made with respect to areas which include tenements in which the Group has an
interest. The Group is unable to determine the prospects for success or otherwise of the claims and, in any event,
whether or not and to what extent the claims may significantly affect the Group or its projects. Agreement is being
or has been reached with various native title claimants in relation to Aboriginal Heritage issues regarding certain
areas in which the Group has an interest.
iii) Contingent assets
There were no material contingent assets as at 30 June 2013 or 30 June 2012.
26. Parent Entity Information
Financial position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
nET ASSETS
Equity
Issued capital
Option reserve
Share based payments reserve
Accumulated losses
TOTAL EQUITY
Financial performance
Loss for the year
Other comprehensive income
Total comprehensive loss
Contingent liabilities
For full details of contingent liabilities see Note 25.
Commitments
For full details of commitments see Note 17.
Consolidated
2013
$
2012
$
1,656,683
14,228,668
2,002,536
14,531,979
15,885,351
16,534,515
(446,085)
–
(1,435,847)
(810,000)
(446,085)
(2,245,847)
15,439,266
14,288,668
21,118,244
–
–
(5,678,978)
18,228,936
698,146
920,638
(5,559,052)
15,439,266
14,288,668
(1,726,492)
–
(1,196,811)
–
(1,726,492)
(1,196,811)
GBM Resources Annual Report 2013 67
Directors’ Declaration
For the Year Ended 30 June 2013
1.
In the opinion of the Directors:
a)
the accompanying financial statements and notes are in accordance with the Corporations Act 2001
including:
i.
giving a true and fair view of the Group’s financial position as at 30 June 2013 and of its
performance for the year then ended; and
ii.
complying with Accounting Standards and Corporations Regulations 2001.
b)
c)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
the financial statements and notes are in accordance with International Financial Reporting Standards
issued by the International Accounting Standards Board.
2. This declaration has been made after receiving the declarations required to be made to the directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2013.
This declaration is made in accordance with a resolution of the Board of Directors.
Peter Thompson
Executive Chairman
Dated this 27th day of September 2013
68 GBM Resources Annual Report 2013
INDEPENDENT AUDITOR’S REPORT
To the members of GBM Resources Limited
Report on the Financial Report
We have audited the accompanying financial report of GBM Resources Limited (“the company”), which
comprises the consolidated statement of financial position as at 30 June 2013, the consolidated statement of
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of
cash flows for the year then ended, notes comprising a summary of significant accounting policies and other
explanatory information, and the directors’ declaration for the consolidated entity. The consolidated entity
comprises the company and the entities it controlled at the year’s end or from time to time during the
financial year.
Directors’ responsibility for the financial report
The directors of the company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
is free from material misstatement, whether due to fraud or error.
In Note 1(b), the directors also state, in accordance with Accounting Standard AASB 101: Presentation of
Financial Statements, that the financial report complies with International Financial Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit
in accordance with Australian Auditing Standards. Those standards require that we comply with relevant
ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable
assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the
risks of material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the company’s preparation and fair
presentation of the financial report in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the directors, as well as evaluating the overall presentation of the financial
report.
Our audit did not involve an analysis of the prudence of business decisions made by directors or management.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act
2001.
HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533.
Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (WA Partnership) is a member of
International, a worldwide organisation of accounting firms and business advisers.
GBM Resources Annual Report 2013 69
51
Auditor’s opinion
In our opinion:
(a) the financial report of GBM Resources Limited is in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2013 and
of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b) the financial report also complies with International Financial Reporting Standards as disclosed in
Note 1(b).
Report on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended 30 June 2013.
The directors of the company are responsible for the preparation and presentation of the remuneration
report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing
Standards.
Auditor’s opinion
In our opinion the remuneration report of GBM Resources Limited for the year ended 30 June 2013 complies
with section 300A of the Corporations Act 2001.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
27 September 2013
L Di Giallonardo
Partner
70 GBM Resources Annual Report 2013
52
ASX Additional Information
Pursuant to the Listing Rules of the Australian Securities Exchange Limited, the shareholder information set out below
was applicable as at 27 September 2013.
a. Distribution of Equity Securities
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Listed Shares (GBZ)
Listed Options (GBZO)
Number
of Holders
52
84
152
563
309
1,160
Securities
Held
10,725
328,967
1,331,559
24,705,239
358,817,631
385,194,121
Number
of Holders
Securities
Held
1
3
3
22
81
110
800
10,500
23,750
920,090
133,791,422
134,746,562
There are 296 shareholders holding unmarketable parcels represented by 11,111 shares.
b. Substantial Shareholders
The Company has received no current notifications for inclusion on the Register of Substantial Shareholders
(who hold 5% or more of the issued capital).
c. Twenty Largest Shareholders
Shareholder
UOB Kay Hian Pte Ltd
Citicorp Nominees Pty Ltd
Chew Leok Chuan
Sung Yoon Chon
HSBC Custody Nominees (Australia) Limited
Tan Thiam Chye
Lion Resources Development Pte Ltd
Superfine Nominees Pty Ltd
Swift Venture Holdings Corporation
Cheng Ee Huang
Constance Tan Chai Ai
Carpentaria Corporation Pty Ltd
Neil Norris
Australian Global Capital Pty Ltd
Bell Potter Nominees Ltd
De Gracie Nominees Pty Ltd
Hong Wei Boon
Kevin James Hendry
Ivan Perry Wu
Fullerton Private Capital Pty Ltd
Shares
Held
61,491,851
51,574,228
19,900,000
13,200,000
10,762,421
10,000,000
10,000,000
9,862,582
8,366,708
5,500,000
4,900,000
4,856,250
4,800,000
4,500,000
4,496,000
3,750,000
3,500,000
2,833,334
2,626,500
2,200,000
% of Issued
Capital
15.96%
13.39%
5.17%
3.42%
2.79%
2.60%
2.60%
2.56%
2.17%
1.43%
1.27%
1.26%
1.25%
1.17%
1.17%
0.97%
0.91%
0.74%
0.68%
0.57%
239,119,874
62.08%
GBM Resources Annual Report 2013 71
ASX Additional Information
d. Twenty Largest Option Holders
Optionholder
Alvito Capital Holdings Inc
Constance Tan Cai Ai
Chew Leok Chuan
Swift Venture Holdings Corporation
Bell Potter Nominees Limited
Sung Yoon Chon
Rosegate Investments Pty Ltd
ABN Amro Clearing Sydney Nominees Pty Ltd
Au Sai Chuen
Sin Yew Seng (2004) Pte Ltd
John Saunders
Kevin Harvey & Ruth Linda Payne
Superfine Nominees Pty Ltd
HSBC Custody Nominees (Australia) Limited
KP Super Fund A/c
KP Family Fund A/c
Tan Hong Huat
De Gracie Nominees Pty Ltd
Shahrin Mohd Shahir
Shahrin Bin Mond Shahir
Options
Held
24,350,000
22,400,000
10,000,000
8,900,000
6,702,188
5,725,000
5,142,500
3,199,300
2,600,000
2,500,000
2,460,709
2,316,250
1,718,750
1,552,500
1,491,500
1,422,500
1,400,000
1,296,818
1,250,000
1,250,000
% of Issued
Options
18.07%
16.62%
7.42%
6.61%
4.97%
4.25%
3.82%
2.37%
1.93%
1.86%
1.83%
1.72%
1.28%
1.15%
1.11%
1.06%
1.04%
0.96%
0.93%
0.93%
107,678,015
79.91%
e. Voting Rights
In accordance with the Company’s Constitution, voting rights in respect of ordinary shares are on a show of hands
whereby each member present in person or by proxy shall have one vote and upon a poll, each share will have
one vote.
f. Restricted Securities
There are no restricted securities.
72 GBM Resources Annual Report 2013
Corporate Directory
Directors
Peter Thompson
Managing Director/
Executive Chairman
Cameron Switzer
Non-Executive Director
Guan Huat Loh
Non-Executive Director
Chiau Woei Lim
Non-Executive Director
Neil Norris
Executive Director/
Exploration Director
Company Secretary
Kevin Hart
Registered Office
Suite 8, 7 The Esplanade
Mt Pleasant WA 6153
AUSTRALIA
Telephone: +61 8 9316 9100
Facsimile: +61 8 9315 5475
Principal Place of Business
Suite 8, 7 The Esplanade
Mt Pleasant WA 6153
AUSTRALIA
Telephone: +61 8 9316 9100
Facsimile: +61 8 9315 5475
Website and email address
Website: www.gbmr.com.au
Email:
admin@gbmr.com.au
Exploration Office
10 Parker Street
PO Box 658
Castlemaine VIC 3450
AUSTRALIA
Telephone: +61 3 5470 5033
Auditors
HLB Mann Judd
Level 4, 130 Stirling Street
Perth WA 6000
AUSTRALIA
Share Registry
Advanced Share Registry Services
150 Stirling Highway
Nedlands WA 6009
AUSTRALIA
Telephone: +61 8 9389 8033
Facsimile: +61 8 9389 7871
Securities Exchange Listing
GBM Resources Limited
– shares & options are
listed on the Australian
Securities Exchange
(ASX Code: GBZ, GBZO)
Solicitors
Steinepreis Paganin
Lawyers and Consultants
Level 4, Next Building
16 Milligan Street
Perth WA 6000
AUSTRALIA
Wallbrook Investor Relation
Suite 8, 11 Collin Grove Street
West Perth WA 6005
Karen Oswald Account Director
Mobile:
0423 602 353
GBM Resources Annual Report 2013 73
Suite 8, 7 The Esplanade, Mt Pleasant WA 6153 Australia
Telephone: +61 8 9316 9100 • Facsimile: +61 8 9315 5475
Website: www.gbmr.com.au • Email: admin@gbmr.com.au