ABN 91 124 752 745
Annual Report 2015
Contents
Chairman’s Report
GBM Project Locations
2015 Highlights Summary
Review of Operations
Annual Mineral Resources Statement
Sustainable Development
Tenement Schedule
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss
and Other 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
4-25
26
27
28
29-36
37
38
39
40
41
42-70
71
72-73
74-75
77
Chairman’s Report
Dear Fellow Shareholders
It gives me great pleasure to bring you our Company’s Annual Report for 2015.
Against the backdrop of a poor capital market environment, 2015 saw pivotal success for GBM Resources Limited
(“GBM” or “the company”) as it continues to focus on its course of securing the company’s long term future by
acquiring near-term gold production assets that will compliment and support our exploration strategy .
The Company in April this year acquired Mount Coolon Gold Mines Pty Ltd from Drummond Gold Limited.
The project is located in the Drummond Basin, an established gold mining region with a known gold endowment
of over 7 million ounces of gold. The combined mining and exploration tenements of Mount Coolon have a defined
resource containing over 270,000 ounces of gold. The Company has moved quickly since the acquisition to upgrade
the confidence levels of the key Eugenia resource and add further resources from known project areas. The company
has upgraded most of the Eugenia resource to an Indicated category and has identified significant gold mineralisation
for the Bimurra prospect.
We now remain focused on investigating options to move the Mt Coolon Project towards gold production.
A scoping study to evaluate the feasibility of commencing a heap leach operation to extract gold from oxide
resources at Eugenia and Bimurra is being planned.
Importantly, this Project re-enforces GBM’s commitment to development and early production gold assets.
In keeping with this strategy the Company is also pleased to advise that the Lubuk Mandi Gold Mine in Malaysia is
on track for listing in December this year with all IPO documents soon to be lodged with the Singapore Exchange
for their approval. If successful GBM’s pre IPO interest of 26.7% will add significant value to the Company.
The Company has also been active in exploration in the North West Queensland Mineral Province with
commencement of a drilling program over 2,000 metres at two of our key Iron Oxide Copper Gold (IOCG) targets,
the Brother and FC2 targets which are part of the Bungalien and Mount Margaret Projects and are subject to the
Pan Pacific/Mitsui Farm-in Joint Venture. This follows from the recent budget approval of $2 million to support further
exploration of IOCG style targets on four of our projects in the Cloncurry region during the remainder of 2015 and
early 2016. Currently two diamond drill rigs are operating testing targets defined by systematic exploration.
Significant progress was achieved at our Mount Morgan Copper Gold Project this year with world renowned
Independent expert Dr Greg Corbett of CMC Consulting confirming ‘proof of concept’ for the Company’s
intrusive-related/porphyry style exploration strategy within the Mount Morgan Project.
Our excellent record continues with a zero harm record in safety and environment. This is the fourth consecutive
year that GBM has achieved zero harm, a record the Board and management are proud to uphold and continue
to commit to the Company’s operations in a safe, sustainable, socially and environmentally responsible manner
– now and into the future.
On behalf of the Board I would like to thank all our shareholders, employees, contractors and suppliers
who have contributed to our achievements during the year.
Yours sincerely
Peter Thompson
Executive Chairman
GBM Resources Annual Report 2015
1
Project Snapshot
GBM Project Locations
1. Mount Coolon Gold Mines Pty Ltd
5. Mayfield
100% wholly-owned
Project area 773 km2
Target Epithermal and IRGS Gold
Defined Resources totalling 264,000 ozs gold
Plus additional exploration target between
120,000-230,000 ounces of gold
2. Mount Morgan
100% wholly-owned
Project area 764 km2 (granted)\
Target Copper-Gold Porphyry
3.
4.
Pan Pacific Copper and
Mitsui Corporation Farm-In Projects
100% moving to 49% GBM
Project area 1,486 km2
Target IOCG
Brightlands
100% wholly-owned
Project area 309 km2
Defined Cu-U-Mo-REE-P Resource
containing 108,000t
TREEYO,97,000t Cu 14 M lbs U3O8
100% wholly-owned
Project area 302 km2
Target IOCG
6. Malmsbury
100% wholly-owned
Project area 33 km2
Defined Resource containing 104,000 ozs gold
7.
Yea
100% wholly-owned
Project area 749 km2
Target IRGS
8. Willaura
9.
100% wholly-owned
Project area 226 km2
Target Cu-Au porphyry
Bungalien
100% owned
Project area 385 km2
Target rock phosphate
10. Lubuk Mandi
26.7% Equity investment
Tailing treatment gold operations
Strategy list on Singapore exchange in 2015
2 GBM Resources Annual Report 2015
GBM Project Locations
2015 Highlights Summary
Vision GBM Resources Limited (GBM) remains strongly focused on delivery of shareholder
value through discovery, acquisition and development in key commodities of gold and
copper. The Company is committed to achieving this in a safe and responsible manner
with the highest regard for the environment and communities in which we operate.
Company highlights for the 2015 financial year
n Zero LTI’s and environmental incidents during the year.- GBM has now sustained a record of
zero LTI’s and environmental incidents for last four years. It is the company’s goal to maintain
a record of zero harm.
n Acquired 100% of Mount Coolon Gold Mines Pty Ltd from Drummond Gold Limited. Tenement
package lies in the Drummond Basin in Queensland, one of Australia’s most prominent gold
regions for epithermal vein and stockwork style gold deposits.
n Additional resources containing an estimated 268,000 ounces of gold acquired with Mount
Coolon Gold Mines Pty Ltd.
n Significant advancement with exploration understanding of the Mount Morgan Project area,
magnetic survey confirming additional and known targets as holding potential for hydrothermal
magnetite destruction associated with porphyry intrusion. The concept of porphyry copper-gold
mineralisation is supported by an independent world renowned porphyry and epithermal expert
Dr Greg Corbett of CMC.
n
In conjunction with Farm-In partners Pan Pacific Copper and Mitsui Corporation, GBM
continued to explore under cover for IOCG mineralisation in the Concurry area. Exploration
resulted in at least eight high-priority targets being identified, and which remain to be
drill tested.
n At Lubuk Mandi Gold Mine in Peninsular Malaysia, GBM defined an initial hardrock resource
and the company’s joint venture partners Angka Alamjaya SDN. BHD. (AASB) completed
construction of a 300,000tpa tailings treatment plant. The proposed public listing of AASB
on the Singapore Stock Exchange offers a significant value upgrade for GBM and remains
on track for completion during the 2015 calendar year.
Drilling at ‘The Brothers’ Prospect,
hole BNG003b
GBM Resources Annual Report 2015
3
Review of Operations
1.0 Strategy
The Board and management of GBM Resources continually review the company’s vision, and the strategy in place
to realise this vision. The ongoing downturn in the minerals industry has re-enforced the need for GBM to maintain
a sharp focus on near term production . This downturn is, as predicted, resulting in opportunities for companies able
to acquire quality assets at realistic prices. During the year, GBM has successfully acquired a significant gold project
in the Drummond Basin though the purchase of Mount Coolon Gold Mines Pty Ltd (MCGM) and is in the process
of evaluating the production and growth opportunities that this presents.
GBM recognises a number of key drivers to both short and long-term exploration success. These are summarised
briefly in the seven points below;
n Identify opportunities for early production and cashflow in deposits with potential for major resource growth.
n Focus on the discovery of world-class gold and copper-gold deposits.
n Competent, rapid and cost effective evaluation of discoveries.
n Apply a systematic approach to mineral exploration.
n Explore in regions with historic production offers a higher probability of new discovery.
n Strengthen GBM’s executive and technical capabilities.
n Maximise in-ground exploration expenditure.
These seven drivers are of increased relevance in the current industry downturn if the Company is to achieve
success and capitalise on the opportunities that are presented. The company’s approach to development and
production will also seek to minimise capital and maximise operating efficiencies while striving for zero harm to
our people and the environments in which we operate. We will reduce risk by completing relevant and targeted
testwork and detailed planning. In exploration we aim to reduce risk by joint venturing with experienced companies
to progress projects with potential for world-class discoveries.
4 GBM Resources Annual Report 2015
Mount Coolon
– Glen Eva Pit
2.0 Introduction
The Company now holds nine key project areas covering
an area of greater than 4,600 square kilometres.
Key projects:
n Mount Coolon Gold Mines Pty Ltd
n Lubuk Mandi in Malaysia (through the
companies 26.7% holding in AASB
n Mount Morgan
n Brightlands (including Milo)
n Mount Margaret West
n Bungalien
n Talawanta/Grassy Bore
n Malmsbury
n Yea and Willaura Projects
Historic working at Koala Gold Mine
This portfolio contains projects ranging from those with near-term production potential to grass roots prospects.
In the process of constructing this portfolio, GBM has identified and exhausted a number of acquisition opportunities
and reviewed numerous exploration properties and proposals. At three of these projects, our Farm In partners
Pan Pacific Copper and Mitsui Corporation of Japan are on schedule to earn a 51% interest in the Mount Margaret
West, Bungalien and Talawanta/Grassy Bore along with a small area in the Brightlands Project referred to as
Chumvale Breccia. These projects contain multiple high order exploration targets under cover.
While such under-cover targets represent the future of exploration as targets in exposed areas are depleted, testing
these targets is challenging the use of available geology and our programmes are pushing the limits of available
technology. Recognition of this at an early stage led to the strategic decision to seek suitable partners to support
this exploration programme. Our partners in Pan Pacific Copper and Mitsui have proved an excellent choice,
not only having the financial strength and long term vision to support these programmes, they have provided
strong technical and management input in a truly collegiate fashion. This has enhanced the effectiveness of these
programmes and has undoubtedly raised the probability of ultimate success.
The addition of Mount Coolon Gold Mines Pty Ltd resource base and exploration tenure in the Drummond Basin
has provided another potential short-term gold production scenario for GBM. The Drummond Basin is an area
which has proven fertile for discovery of epithermal and intrusive related gold systems with over 7 million ounces
of gold endowment already demonstrated, and the tenure acquired does hold potential for further significant
discoveries both at the known deposits, and a number of exploration prospects already identified.
GBM’s gold projects now contain an estimated 404,000 ounces of gold at Mount Coolon, Malmsbury and Lubuk
Mandi (26%). The Company holds an extensive portfolio of mineral exploration tenements including licences and
applications covering an area of greater than 2,000 square kilometres in the Northwest Mineral Province, Lachlan
Fold Belt and Drummond Basin, all fertile mineral terrains.
The value of the Lubuk Mandi Gold deposit has been substantially upgraded by the delineation and estimation
of gold resources and the subsequent construction of a tailings treatment plant. This value is set to be unlocked
as this project moves toward listing on the Singapore exchange in 2015.
The resources at Mount Coolon offer potential for near-term gold production in Australia. The Company’s exploration
focus remains squarely on the discovery of significant gold and copper-gold deposits. This may be achieved with
the financial and technical assistance of new joint venture partners in the future.
GBM Resources Annual Report 2015
5
Review of Operations
3.0 Exploration Expenditure and Activity
The key focus this year has been on rapidly upgrading
the resources acquired with Mount Coolon Gold Mines
to enable a scoping study to be commenced. This has
involved GBM management compiling and reviewing
a significant database of geological, geochemical and
spatial data to satisfy the more rigorous requirements
of the JORC (2012) code and to upgrade the largest
deposit (Eugenia) to indicated level. Currently the
Company is reviewing tenders for a scoping study
to evaluate the feasibility of re-commencing gold
production at Mount Coolon, including potential for
a heap leach operation to extract gold from oxide
resources at the largest deposit (Eugenia).
In addition the search for large IOCG deposits in
the Cloncurry region included completion of induced
polarisation surveys (50 line kilometres), MMI soil
geochemistry (255 samples) and drilling 4 diamond
drill holes (1,200 metres) at Mount Margaret West
Project, an extended gravity survey and drilling of one
diamond 714 metre drill hole in the Bungalien Project.
At the Lubuk Mandi Gold Mine in Malaysia, the
Company continues to provide limited technical support
to our partners as they completed construction of the
tailings retreatment plant and advanced toward listing
on the Singapore Stock Exchange (SGX).
Total exploration expenditure on the Company’s
tenements for 2015 was A$2.7 million compared to
a total of A$2.3 million in the 2014 year. This does
not include the estimated A$1.9 acquisition cost of
Mount Coolon Gold Mines. In a time when exploration
expenditure has sharply declined globally, GBM has
sustained a significant level of exploration activity and
strives to maintain a low cost base for exploration
Graph 1: GBM resources annual exploration expenditure.
Graph 2: GBM resource total gold in resources
(including Malmsbury, Mount Coolon and
beneficial share of Lubuk Mandi).
activities and ensure that the in-ground component is
maximised. These factors continue to position GBM
well for future discovery and value creation.
The growth in GBM’s share of gold in resources
accelerated this year with the acquisition of Mount
Coolon Gold Mines. The total gold contained in GBM’s
published resource now totals 404,000 ounces.
Rod Pull at
BNG003b
6 GBM Resources Annual Report 2015
4.0 Mount Coolon Gold Project
(ML1029, ML1085, ML1086, ML10227, EPM7259, EPM15902, EPM25850, EPM25365)
Near-term production potential based on gold resources containing 268,000 ounces of gold. Medium and
longer term potential associated with epithermal and IRGS targets in the Drummond Basin which is a major
gold province and has a known gold endowment of over 7 million ounces of gold.
GBM finalised the purchase of Mount Coolon Gold Mines Pty Ltd from Drummond Gold (ASX: DGO) for cash
consideration of A$850,000 and 50 million ordinary fully paid shares ( ASX release dated 13 April 2015). Mt Coolon
Gold Mines Pty Ltd holds a group of mining tenements located 250km west of Mackay in Queensland in the
northern Drummond Basin and is now a wholly-owned subsidiary of GBM. Included in the acquisition is a modern
site office, four man camp, workshop, a range of exploration and maintenance equipment and field vehicles all
located in the township of Mount Coolon.
The Drummond Basin has been a major gold producer since the recognition of the significance of epithermal
mineralising systems lead to the discovery of a number of gold deposits in the 1980’s including Wirralie, Pajingo
and Yandan. A gold endowment in excess of 7 million ounces has been identified in the Drummond Basin to date.
Deposit styles range from bonanza grade epithermal veins (eg. Pajingo 3.0 million ounces) to bulk tonnage intrusive
related gold deposits (eg. Mt Leyshon 2.1 Million ounces).
The tenement package includes four granted Mining Leases, three granted exploration permits and one exploration
permit application covering a total area of 773 km2. Independent review of these tenements has confirmed that all
are in good standing and key mining licences have recently been renewed until 2024.
RESOuRCES
Mount Coolon Gold Mines Pty Ltd projects host resources containing a total of 268,000 ounces of gold (these
resources are tabulated below). The resource was published by GBM in an ASX release on 27 August 2015.
The inventory is comprised of three deposits of which the largest, Eugenia contains 63% of the total defined
resource and is considered to be of immediate potential by GBM. Eugenia (previously referred to as Police Creek)
is considered to represent the upper levels of a low sulphidation epithermal system.
Figure 1: Mt Coolon Project tenement group and prospect location plan.
GBM Resources Annual Report 2015
7
Review of Operations
4.0 Mount Coolon Gold Project continued
Mineralisation is hosted by quartz veins and sulphide stringers and breccias forming a broad mineralised zone
dipping gently to the west. Mineralisation is hosted by a thick dacitic ignimbrite unit. The area is extensively covered
by shallow, post mineralisation sediments beneath which potential to extend the deposit with further drilling exists.
In addition, to date no feeder zone has been identified and potential exists for the discovery of high grade fissure
veins through further exploration.
The Resource inventory also includes mineralisation at Koala and nearby Golden Bar and Footwall Reef prospects
that are associated with the original mining areas at Mount Coolon. These areas are considered to be part of the
same epithermal, or possibly intrusive related, gold system hosted within volcanic and sub-volcanic andesitic rocks
of the basal Drummond Basin Cycle 1 sequence. A well-developed vertical zonation indicates the mineralisation
is open to depth and along strike to the south and the deposit is considered to hold potential for further
resource additions.
In addition, the Glen Eva resource is part of a low sulphidation quartz-adularia-pyrite gold epithermal vein system
located in the basal sequence (Cycle 1) of the Drummond Basin. Mineralisation occurs under the pit as colloform
and crustiform quartz veins within hydrothermal brecciated dacitic volcanics. The system is structurally complex with
several episodes of mineralisation. The lode is between 3-6m in true width, is continuous for 330m of strike and is
intersected in drillholes at vertical depths up to 120m below surface. A typical high level bonanza fissure vein, the
significant sinter volume suggests significant depth continuity and size potential beyond the current drilling extent.
The Mount Coolon Gold Mines Pty Ltd acquisition provided an opportunity to rapidly upgrade the confidence levels
of the key Eugenia resource, and to quickly add further resources from known project areas.
This is supported by the recent ASX release on 21 September 2015 regarding gold mineralisation at the Bimurra
prospect where the Company has estimated an exploration target range for the Bimurra mineralisation of between
10M tonnes at an average grade of 0.7 g/t Au containing an estimated 230,000 ounces of gold and 4M tonnes
at an average grade of 1.2 g/t Au containing an estimated 120,000 ounces of gold. It should be noted that the
potential quantity and grade is conceptual in nature, there has been insufficient exploration to estimate a Mineral
Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
Project
Location
Measured
Indicated
Inferred
000’t Au g/t Au ozs
000’t Au g/t Au ozs
000’t Au g/t Au ozs
000’t Au g/t Au ozs
Resource Category
Total
Cut-off
Koala
Hecorina Pit
Underground Extension
Tailings
Total
Eugenia
Oxide
Sulphide
Total
Glen Eva
Below pit
Total
305
305
1.6
1.6
15,800
15,800
15
205
11
231
1,445
2,306
3,751
132
305
1.6
15,800
4,114
2.6
5.9
1.6
5.5
0.9
0.9
0.9
7.8
1.4
1,300
39,600
500
40,400
62
6
68
43,300
252
66,100
1,007
109,400
1,260
33,200
21
183,000
1,349
5.3
1.5
5.0
1.2
1.4
1.4
5.9
1.6
15
267
322
604
10,600
300
10,900
9,700
1,698
2.6
5. 7
1.6
3.5
1.0
1,300
None
49,300
3
16,700
None
67,200
53,000
45, 200
3,313
1.04
111,300
54,900
5,011
4,000
154
69,800
5,769
1.0
7.5
1.4
164,300
37,200
268,600
0
0.4
0.4
0.4
3.0
Table 1: Mount Coolon Gold Mines Pty Ltd consolidated gold resources
(for full details please refer to ASX announcement dated 27 August 2015).
The Company confirms that it is not aware of any new information or data that materially affects the information
included in the respective announcements and all material assumptions and technical parameters underpinning
the resource estimate with those announcements continue to apply and have not materially changed.
8 GBM Resources Annual Report 2015
5.0 Mount Morgan Intrusive Related Gold Project
(EPM16057, EPM17105, EPMA17734, EPMA18366,
EPM18811, EPM19288, EPM18812, EPM25177,
EPM25362 & EPM25678)
Exploration Opportunity with potential for copper-
gold porphyry style discoveries in under-explored
terrain adjacent to the 8 million ounce Mount
Morgan Gold-Copper Mine.
The Mount Morgan Project tenements host multiple
high-order geochemical and geophysical anomalies
surrounding the world-class Mount Morgan Gold-
Copper deposit which produced in excess of 8 million
ounces of gold and 400,000 tonnes of copper.
Historic exploration since the 1960’s has produced a
sizeable data library. GBM has invested considerable
time collating and interpreting historic surface,
geophysical and drilling data, using this information to
progressively refine exploration models for the area.
The Company has completed extensive geochemical
sampling and mapping of a number of high-order
targets and many are now at or near drill-testing stage.
Many of the key targets have now been identified for
further exploration including: Smelter Return, Limonite
Hill and other buried targets within the Bajool Project,
Sandy Creek and Oakey Creek and the Mt Gordon
porphyry system.
GBM has progressively acquired ground since project
inception in 2007 and now holds the dominant tenement
position in terms of area covered in the vicinity of the
mine. The wholly-owned project incorporates ten
granted leases totaling over 760km2 with the most
recent EPM granted in April this year (EPM25678
Mountain Maid).
These priority targets for further work have been defined
on a range of features including; soil, rock-chip and
historic drilling, Cu-Au + Mo anomalism, presence of
porphyry or IRGS alteration assemblages in surface
rocks, geophysical signature, prospective host rocks,
structural setting or proximity to Mt Morgan orebody,
and size potential.
1. Limonte Hill
– 12m @ 1.4% Cu & 700 pm Mo
– Series of “Mag Lows” within structural
corridor, including Limonite Hill Cu-Mo
porphyry
– Veneer of cover sediments
2. Mt. Usher
– 100k oz Au production from alluvial
and hard rock
– Junction of 2 major structural linears
– Large mag high rimmed by historic workings
3. Mt. Victoria
– Alluvial gold workings
– 28m @ 0.26 g/t Au in
Devonian basement
4. Mt. Gordon
– Porphyry Cu-Au-Mo
– 23m @ 0.3% Cu,
0.2 g/t Au
– 4km magnetic low
5. Smelter Returns
– 300x400m skarn indentified
– Shallow drilling only
– 8m @ 0.3% Cu, 0.8 g/t Au
– Large untested high tenor
Au-Cu soil anomalies
6. Kyle Mohr
– Intrusive hosted
– Pervasive porphry alteration
– Strong Au-Cu in soils
– No drilling
7. Black Range 1
– 2km alteration zone
– Central breccia gossan with
Zn-Cu-Pb-Ag
8. Sandy Creek
– 4km porphyry-style alteration zone
– Hydrothermal breccia CuO
at surface
– Rock-chips to 39% Cu,
8.59 g/t Au 44ppm Ag
– No drilling
9. Dee Copper Mines
– High grade Au-Cu veins
– Not tested at depth
10. Oakey Creek
– 3x1km porphyry-style alteration
– Rock-chips to 6.7% Cu & 40 ppm Ag
– Not drilled
Figure 2: Mount Morgan Project area plan showing key targets and Tenement status.
GBM Resources Annual Report 2015
9
Review of Operations
BAjOOL – LIMONITE HILL PROjECT
Exploration during 2015 focused on the Bajool area
located east of the Mt Morgan Gold Mine. The Bajool
project encompasses a series of at least 13 magnetic
lows within the Bajool Diorite complex. These lows
are interpreted to result from magnetite destruction
associated with porphyry hydrothermal alteration
and copper, molybdenum and sometimes gold
mineralisation. Most magnetic low targets are buried
under thin cover sediments but where they do outcrop,
evidence of porphyry-style mineralisation is readily
apparent. Limonite Hill and San Jose are well-known
examples and have been subjected to little exploration
in the past.
GBM completed a detailed airborne magnetic survey
during the period, covering most of the Bajool
Complex within the tenement boundaries. The survey
parameters were designed to produce high definition
of the numerous magnetic low anomalies distributed
throughout the complex. A number of magnetic high
anomalies have also been defined from the recent
survey and these may represent skarn or replacement
mineralisation in reactive host rocks at the margin of the
porphyry intrusives.
A structural interpretation of the magnetic data (RTP
and Analytic Signal) indicates a complex intrusive
history of pulsed phases and cross-cutting boundaries,
hornfelsing of host rocks, and a complex fault pattern
including a number of large through-going shear zones.
Some of the more significant magnetic low anomalies
Figure 3: Conceptual model in which Mt Morgan
mineralisation developed within a collapse breccia pipe
overlying a poly-phase porphyry intrusion source
(Menzies & Corbett, 2015).
10 GBM Resources Annual Report 2015
Photo 1: Massive quartz vein with chalcopyrite-
molybdenite rosettes which reported 6m 2.64%Cu +
908ppm Mo from 158m. This photo is take at 164.0m
depth in drill hole 12/28-4 bored into Limonite Hill
prospect. (CR4994, Report on Griselda-Discoverer 28,
Geopeko Ltd, May 1974).
are associated with interpreted structural intersections,
loci for emplacement of mineralised porphyry stocks
or apophyses.
Core from drillhole DDH4 from the Limonite Hill
Prospect was located in the government core library in
Brisbane and a summary log completed. This hole was
drilled in 1973 and predates many recent advances in
understanding intrusive related mineralised systems.
The hole returned 12 metres averaging 1.4% Cu and
0.07% Mo. (refer GBM Report for the Quarter ended
31 December 2014). Geological logging of this hole
confirmed alteration, mineralisation and vein styles
which suggest a porphyry Cu-Mo system is present
at Limonite Hill, hosted by a polyphase intermediate
to felsic igneous intrusive and volcanic complex.
Observations from the drill core and available data
suggest the system is exposed at a high level, and that
the core of the mineralising system may remain intact.
PORPHYRY-RELATED ExPLORATION MODEL
As a follow-up to the re-logging of historic core and the
acquisition of detailed airborne magnetic and radiometric
data from the Limonite Hill and Bajool project area, GBM
contracted Dr Greg Corbett from CMC Consulting to
interpret drill core from beneath and surrounding the
Mount Morgan Gold Mine and to review a number of
GBM prospects at surface and from historic drilling. The
purpose of the review was to confirm and support the
Company’s intrusive-related/porphyry-style exploration
strategy within the Mount Morgan project.
The existence of Permian to Triassic age porphyry-style
Cu-Au +-Mo mineralisation within the project area is well
established. However, much of the historic exploration
effort has been directed towards discovery of VHMS
deposits fitting the accepted deposit model for the
Mount Morgan orebody.
Dr Corbett interpreted the Mt Morgan quartz-sulphide mineralisation as low-sulphide deep epithermal style derived
from a buried magmatic source related to either the nearby Devonian poly-phase tonalite complex or a Permian
intrusive. The quartz sulphide mineralisation at the Lihir Gold Mine in PNG is also interpreted to have been derived
from an underlying porphyry Cu-Au source. The intrusive source at Mt Morgan may be localised on a splay fault off
the NE-trending Slide Fault which transects the mine pit. Splay faults localise many porphyry Cu-Au ore systems
such as Chuquicamata, Frieda, Ridgeway and Cadia East.
Field examination of prospects such as Sandy Creek, Oakey Creek and Limonite Hill (Bajool area) prospects
confirmed GBM’s interpretation of porphyry-related alteration, vein style and mineralisation at these prospects.
Many of the Company’s prospects display classic propyllitic alteration assemblages, ‘D’-vein type quartz-sulphide
vein styles, or epithermal-style disseminated quartz-sulphide and metal assemblages. The evidence from GBM’s
exploration to date, with confirmation from independent experts in the field strongly support the existence of
porphyry systems beneath the present day surface.
GBM consider the Mount Morgan Project as highly prospect and worthy of a substantial exploration programme.
GBM will continue to investigate options to further fund and explore this project including joint venture and
farm-in options.
Figure 4: GBM airborne magnetic survey data. Image is Total Magnetic Intensity Reduced to Pole (TMI RTP).
Interpreted intrusive margins showing complex pulsed and cross-cutting history. Fault interpretation from RTP
and Analytic Signal (AS) data indicates many mag low anomalies are associated with fault intersections and
dilatant structural settings (L5 Limonite Hill, L4 Ultima, L7 San Jose, L1 Ulam Goldfield).
GBM Resources Annual Report 2015 11
Review of Operations
6.0 Lubuk Mandi Gold Project
Near term production opportunity for gold production from
tailings and open cut mining. GBM retains 26.7% equity in
project moving to listing is Singapore during 2015.
The Lubuk Mandi Gold Mine is located on the east coast of the
Malaysian Peninsula in the state and Sultanate of Terengganu,
approximately 7 km south of the state capital city Kuala
Terengganu. Gold was discovered in 1989 at the site and
initially worked as alluvial deposits along a 2 km strike length
prior to hard rock mining at Lubuk Mandi. A CIP/CIL plant
operated between 1993 and 1999, producing over 107,000
ounces of gold and approximately 11,000 ounces of silver.
All mining was by open pit methods.
GBM completed drilling and resource estimation for the
tailings from the previous mining operations resulting in the
announcement in October 2013 (re-issued in November) of a
JORC compliant resource comprising 1.5Mt with an average
grade of 0.7g/t Au containing an estimated 34,800 ounces of
gold. GBM subsequently commissioned metallurgical testwork
and preliminary plant design that demonstrated the practicality
of re-treating these tailings utilising a combination of the proven
technologies of flotation and carbon in pulp to extract the gold.
AASB completed final design and constructed a modified and
downscaled version of the design completed by GBM and its
associated consultants.
Lubuk Mandi Commissioning
As reported in the company’s March 2015 Quarterly Report,
that while there were still some design modifications to be
completed, performance during commission confirmed
that the plant can operate at design capacity, head grades
are in line with resource estimates and that recoveries in
line with metallurgical testwork can be achieved. However
since that time the tailings treatment plant has experienced
ongoing operational issues, resulting largely from the design
modifications and failure to secure suitably qualified key professionals in the management team. As a result, the
Lubuk Mandi tailings treatment plant commissioning phase has been extended to address these issues. The
Company has been informed that the plant resumed operations at a 500tpd rate on 21 July and production
is expected to ramp up to 1000tpd as soon as it is confirmed that all components are operating as required.
Lubuk Mandi Commissioning of flotation cells
GBM’s Malaysian Joint Venture partners are working to incorporate this operation into a new Company
to be listed on the Catalyst Board of the Singapore Stock Exchange.
7.0 Brightlands and Milo IOCG REE Project
Exploration opportunity with multiple targets for copper-gold mineralisation. In addition the Milo IOCG
system already with an estimated resource containing 97,000 tonnes of copper, 14 million pounds of U3O8
and 108,000 tonnes of TREEYO with significant exploration upside.
The Milo Project on Brightlands EPM14416 is located due east of Mount Isa, and just 20 km west of Cloncurry on
the Barkly Highway, far northwest Queensland. Brightland contains numerous targets for structurally hosted and
IOCG style copper and gold copper mineralisation. Previous exploration by GBM has successfully delineated a
large polymetallic resource at Milo. However many targets remain to be fully evaluated, and the Milo area still holds
potential for significant resource extension.
Mineralisation at Milo 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 mineralisation dips steeply to the east, is
possibly fault related, and that higher grade copper mineralisation plunges to the north. The mineralisation at Milo is
considered to be closely linked to the Cloncurry Flexure, a regionally significant deep structural feature in the region.
12 GBM Resources Annual Report 2015
Figure 5: Brightlands tenement group showing major regional structures over detailed TMI RTP image
with prospects and target areas.
The scoping study released by GBM in November 2012
highlighted that Milo hosts a significant polymetallic
resource containing rare earth oxides, copper,
phosphate and uranium. This resource remains open at
depth and along strike. In addition, geochemical surveys
confirm the existence of a number of additional targets
in the Milo area with similar geochemical signatures.
GBM believe that Milo is part of a very large mineralising
system and that significant future exploration is
warranted. In the case of the Milo West target, the
geochemical response is more intense than the Milo
area itself. These anomalies are considered to be part
of the large system operating at Milo and represent
high priority targets for future exploration.
Despite considerable drilling already completed over
a significant strike length, the Milo mineralisation is still
open-ended to the north, south and at depth. Drilling
from the 2012 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 drill holes. A number of parallel zones of
coincident Cu-Au-La soil anomalism have been defined
north west of the resource area and 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.
A total of 1,594 soil samples and 295 rock samples
have been collected on the Milo prospect to date.
Figure 6: Milo conceptual pit outline over soil uranium
geochemistry highlighting the location of additional high
priority target area to the west of the known deposit.
From the data collected it is possible that the total strike
length of the Milo mineralisation could extend for up
to two kilometres. Further soil sampling and follow-up
drilling will be required to determine the full extent of
mineralisation.
The Milo mineral resource estimates were based on
data from 31 holes drilled in a roughly 100m by 50m
grid pattern. The drilling has delineated continuous
Cu and REE mineralisation 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.
These holes total 11,572m, comprising 3,503m of RC
drilling and 8,069m of DD drilling. Of the total, 9,878m
was sampled at largely 1 metre intervals and assayed
for a comprehensive suite of elements.
GBM Resources Annual Report 2015 13
Review of Operations
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
cutoff
(TREEYO
ppm)
tonnes
(Mt)
TREEYO
(ppm, t)
Grades
300
176
620
P2O5
(%, t)
0. 75
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)
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
LREEO
HREEY
Table 2: Milo Inferred TREEYO resource, at a 300ppm TREEYO cut-off. Red designates elements assessed as being
in critical supply by the US Dept. of Energy, Dec 2011: Critical Materials Strategy, P4.
The inferred resource for copper and associated metals is estimated at a 0.1% copper equivalent cut-off as 88 Mt
at 0.11% Cu, 0.04g/t Au, 1.6g/t Ag, 65ppm Mo, 130ppm Co and 60ppm U, containing 300Kt of CuEq metal.
While commodity prices have continued to fall since the initial resource estimation for Milo, the Company believes
that the long term nature of the project and the positive outlook for the key commodities to be produced, combined
with favourable exchange rate movements provide support for the future development of Milo.
Resource
Classification
Inferred
Contained Metal
cutoff
(CuEQ %)
0.10
tonnes
(Mt)
88.4
CuEQ
(%, t)
0.34
Au
(ppm, ozs)
0.04
301,000
126,000
Cu
(ppm, t)
1,090
96,500
Ag
(ppm, ozs)
1.63
4,638,000
Mo
(ppm/t)
65
5,700
Co
(ppm/t)
130
11,700
U3O8
(ppm/Mlbs)
72
14.0
Table 3: Inferred copper equivalent resource (above 0.1% copper equivalent).
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’.
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.
Commodity
Copper
Gold
Cobalt
Silver
Uranium
Price
6,836
1,212
40,000
18
40
Molybdenum
38,000
Units
US$/t
US$/oz
US$/t
$/oz
US$/lb
US$/t
Unit Value
68.36
38.97
0.04
0.58
0.08
0.04
Unit
US$/%
US$/ppm
US$/ppm
US$/ppm
US$/ppm
US$/ppm
Conversion Factor
(unit value/Cu % value)
1.0000
0.5700
0.0006
0.0085
0.0012
0.0006
Table 4: Milo copper equivalent prices and conversion factors (see explanatory note above).
Competent Person’s Statement for Exploration Results and Mineral Resources for Milo included in this report that
were previously reported pursuant to JORC 2004: This information has not been updated since to comply with
the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
The information in this report that relates to Mineral Resources (Milo) is based on information compiled by
Kerrin Allwood, who is a Member of The Australasian Institute of Geoscientists Mining and Metallurgy. Mr Allwood
is a full‑time employee of 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.
14 GBM Resources Annual Report 2015
8.0 Mayfield IOCG Project
Exploration opportunity with high order copper-gold geochemical and drilling anomalies adjacent to the
high grade Tick Hill Gold Mine and Trekelano copper mine in Queensland’s North West Mineral Province.
The Mayfield Project is located approximately 150 km SE of Mount Isa within the Mary Kathleen Zone of the Eastern
Succession.
The dominant Proterozoic geology consists of Argylla and Corella Formation volcanics and sediments, located
adjacent to the Pilgrim Fault Zone, a very large, strike slip fault system that extends over 200 km to the north. At
either end of the project sit the Trekelano Cu-Au mine with a resource (2006) of 3.1Mt @ 2.1% Cu and 0.64g/t Au,
and the Tick Hill mine which produced 470,000t averaging 28g/t Au.
The structural setting and fertile Corella Formation rocks combine to produce a highly prospective belt with
numerous IOCG-style Cu-Au and base-metal occurrences defined within. Almost the entire Pilgrim Fault Zone is
currently under lease and recent work by various companies, including Hammer Metals at their Kalman project,
supports the potential for discovery within the Mayfield project.
The project area consists of a single large
tenement with an area of 302 km2, EPM19483
Mayfield. Within the tenement at least three
mineralisation styles have been defined by
previous workers; mylonite-hosted gold only
(e.g. Tick Hill, figure below), ironstone-hosted
magnetic Cu-Au (e.g. Trekelano, figure below)
and Zn-Pb-Ag mineralisation (Delta Maiden
Creek Prospect). Much of the Proterozoic host
to mineralisation in the project area is obscured
beneath thin alluvial or Cambrian cover.
Extensive regional soil sampling indicates that
the magnetic anomalies (generally concealed
beneath the cover) are associated with Cu-Au
or base metal mineralisation along much of
their strike length at Mayfield.
Numerous prospects and targets have been
identified from review of the historic exploration
data. However, whilst good coverage by
conventional soil sampling was completed
along with extensive close-spaced RAB
sampling of top basement, deeper drill testing
by reverse circulation or diamond drilling
methods is very limited, and often absent
entirely from defined prospects.
Most tested targets were generated by the
soil sampling or electro-magnetic geophysical
survey methods. No detailed gravity surveying
appears to have been completed by any
company and the magnetics data was a
secondary target generation tool. As such,
there is considerable scope to make better
use of modern potential field data for future
IOCG exploration.
Figure 7: Mayfield Project; Prospects and copper anomalism in soils
and RAB drilling along the magnetic belt hosting Trekelano mine.
GBM Resources Annual Report 2015 15
Review of Operations
9.0 Gold Projects located within the Lachlan Fold Belt;
Yea, Malmsbury and Willaura Intrusive Related Gold Systems (IRGS)
Exploration opportunity for the discovery of IRGS in the fertile Lachlan Fold Belt of Eastern Australia.
GBM holds three projects with potential for discovery of IRGS and porphyry style mineralisation within the
Lachlan Fold Belt of eastern Australia which hosts a number of world class gold and copper gold deposits which
include the Cadia and Cowal Gold Mines which have known gold resources of 44 million ounces and 5 million
ounces respectively.
Recently developed and evolving tectonic models developed for Eastern Australia offer new orogenic gold and
base metal opportunities in the Lachlan and Delamarian Fold Belts of Eastern Australia. Victoria may host parts
of two mineralised arc systems. In the west,
a Cambrian Andean-style system – the
Miga Arc which would include the Willaura
Project area, and in the east, the Ordovicain
Macquarie Arc which to the north is host to
giant porphyry Cu-Au ore systems at Cadia
and North Parkes.
Porphyry systems worldwide are known
to form clusters and already additional
systems are known in Western Victoria, this
is a new and exciting mineral province at
the early stages of exploration by modern,
system based approach. Through the
Willaura Project, GBM is well positioned
for discovery in this area.
GBM has long recognised that the Lachlan
Fold Belt hosts many intrusive related
mineral systems and this supports the
potential of the Yea, Malmsbury and
Willaura Projects.
9.1 YEA PROjECT
(EL5292, EL5293 & 5347)
Figure 8: Lachlan Fold Belt project locations.
Significant tungsten-molybdenum drill intersections associated with an unexplored Intrusive Related Gold
System represent a rare exploration opportunity.
The first drill hole completed by GBM in 2012 intersected Tungsten and Molybdenum mineralisation which is coarse
grained of significant grade. Monkey Gully is a new Tungsten Molybdenum discovery, and the area still retains
potential for IRGS style gold mineralisation.
The Yea Project tenements are 100% owned by GBM and were acquired by GBM after it recognised potential for
IRGS in an area which contained a number of interesting targets for gold and other minerals. The target for this project
is large IRGS-style Au, W, Mo, Cu deposits related to the Marysville Igneous Complex and hosted within the Black
Range Granodiorite and its associated hornfelsed sedimentary envelope south-east of Yea.
The most advanced prospect is at Monkey Gully where GBM has identified a previously unknown polyphase
intrusive complex. Tungsten and Molybdenum drill intercepts within a large geochemical corridor requires further
testing. GBM completed one diamond drillhole in 2012, results for Tungsten and Molybdenum from GBM’s drilling
at Monkey Gully Include 17metres averaging 0.15% W2O3 and 262ppm Mo and 2 metres averaging 0.27% W2O4
and 1,067ppm Mo. The peak value for tungsten was 5,030ppm from 166 to 167 metres and for molybdenum
1,850ppm from 131 to 132 metres. 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.
(refer GBM Resources Ltd. Quarterly Report, September 2011).
16 GBM Resources Annual Report 2015
Results from the Company’s soil sampling programs indicate that W-Mo-Cu soil anomalism extends for at
least 1,000m in a NW orientation across the prospect. Detailed mapping in 2012 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 a zone of high-
grade gold mineralisation defined by
soil sampling and trenching 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 significant
for tungsten and molybdenum alone,
and are considered strongly supportive
of the existence of an IRGS in the
Monkey Gully area.
9.2 MALMSBuRY PROjECT
(EL4515 and EL5120)
Figure 9: Yea Project tenement location plan showing target locations.
Exploration opportunity with 104,000 ounces of gold already in resources and significant exploration upside.
GBM drilled a one kilometre deep diamond hole which strongly supported the conclusion that the Malmsbury Gold
Project is part of a large Intrusive Related Gold System (IRGS) centred on Belltopper Hill (drilled in March 2010
with assistance from the Victorian Government RDV grants program). IRGS systems are known to persist to much
greater depths in other regions and GBM considers the Malmsbury Project (located in Central Victoria) has the
potential to host a large IRGS in a world class gold province.
Surface geology at Malmsbury reveals a large area of alteration and mineralisation associated with a demonstrated
endowment of almost 200,000 ounces within 200 metres of surface. 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. This endowment
is based on mineralisation within a 2 kilometre section of the Drummond North Goldfield which remains open in
all directions.
Structural geology studies previously commissioned by GBM note a valid comparison of the architecture of the fault
and reef system at Malmsbury with the Fosterville System which hosts a known and growing endowment of 3 million
ounces of gold, and identified additional strong North East trending structures similar to the Leven Star Zone. This
is also supported by reprocessed magnetic data which highlights a clear complex magnetic feature with a similar
trend. An extensive soil sampling program confirmed 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.
GBM Resources Annual Report 2015 17
Review of Operations
9.2 MALMSBuRY PROjECT continued
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 5: 2008 Leven Star Gold Resource Estimate.
Competent Person’s Statement for Exploration Results and
Mineral Resources for Malmsbury included in this report
that were previously reported pursuant to JORC 2004:
This information has not been updated since to comply
with the JORC Code 2012 on the basis that the
information has not materially changed since
it was last reported.
The information in this report that relates to Mineral
Resources (Malmsbury) is based on information
compiled by Kerrin Allwood, who is a Member of
The Australasian Institute of Geoscientists Mining
and Metallurgy.
Mr Allwood is a full‑time employee of 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.
Figure 10: Malmsbury plans showing magnetic feature and major cross structures related to gold mines and resources (left)
and related to gold soil geochemistry (right). Gold in soils defines a strong anomaly at 50 ppb centred on the intersection
of known mineralisation, but trending northwards to areas not previously drill tested.
18 GBM Resources Annual Report 2015
9.3 WILLAuRA PROjECT
(EL4631 and EL5346)
Exploration targets prospective for porphyry style
copper-gold mineralisation in a newly interpreted
Andean style volcanic arc.
The Willaura Project is located within the Stavely Belt
in Western Victoria. This region is now in the focus of
exploration companies due to the recent interpretation
of the area as an ancient Andean style arc, now referred
to as the Miga Arc.
The region has a number of identified porphyry copper
occurrences, recent exploration and ore system
modeling by several companies continues to be tested
by deep drilling. In addition, the Geological Survey of
Victoria in conjunction with Geoscience Australia have
recently completed a 14 hole programme to further
understand the mineral potential of this region. Both
the government surveys and companies, including
Stavely Minerals Ltd have provided expert interpretation
strongly supporting the potential for porphyry copper
mineralisation to occur in the region.
Figure 11: Willaura tenement plan showing location
of key target areas and detail of magnetic features
defining target areas in the Willaura Project area.
GBM’s Willaura Project area is located within the GSV’s
‘Stavely Arc Base Metal-Gold Fairway’ and straddles one of the state’s major deep crustal structures, the Moysten
Fault and lies within the newly identified Miga Arc (similar area to the Stavely Grampians Strucural Zone).
GBM holds two granted exploration licences within the Willaura Project covering an area of approximately 226 km2
included in granted exploration licences. 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 and recent
alluvium covering much of the Willaura target area, modern and advanced “deep seeing” exploration techniques
must be employed to identify suitable drill targets.
10.0 Pan Pacific Copper and Mitsui Farm-In Iron-Oxide-Copper-Gold (IOCG) Style Projects
in the Mount Isa Region
Fully funded exploration opportunity for the discovery of large IOCG style deposits ‘under cover’
in the prolific North West Mineral Province of Queensland.
GBM, in association with our partners Pan Pacific Copper and Mitsui Corporation of Japan, continue to explore
for large IOCG deposits under cover in the North West Mineral Province of Queensland. This Farm-In Agreement
is currently in it’s sixth year of operation. This exploration programme is seeking to discover ore-bodies containing
more than 2 million tonnes of copper and or over 1 million ounces of contained gold in areas where the ancient
Proterozoic Mount Isa Inlier basement is covered by younger sediments. This programme has achieved success in
the discovery of IOCG style mineralisaiton at the Bronzewing Bore Prospect in the Bungalien Project, and in addition
a number of high order targets have been identified in the Mount Margaret West Project area.
The fertile nature of the North West mineral Province for base metal and other minerals make it one of the most
prospective exploration terrains world wide, however there are virtually no discoveries in the covered potions this
terrain. GBM and our partners recognise this as presenting a tremendous opportunity for discovery by applying
rapidly evolving modern exploration technology to these areas. The potential for hidden deposits in the covered
portions of the NW Mineral Province continues to be supported by Queensland and Federal Government backed
initiates including UNCOVER, and a new collaborative venture to promote and facilitate and expediate exploration
targeting in such regions throughout Australia.
The following sections summarise the setting and progress on the key projects that form part of the Pan Pacific
and Mitsui Farm-In Agreement.
GBM Resources Annual Report 2015 19
Review of Operations
10.1 BuNGALIEN – HORSE CREEk PROjECT
(EPM17849, EPM18207, EPM18208 & EPMA25213)
Includes the Bronzewing Bore IOCG discovery
and other high order targets for IOCG style
mineralisation.
The project area consists of; EPM18207 Bungalien 2,
EPM18208 Horse Creek 2, and EPM17849 Limestone
Creek, and EPM25213 The Brothers and covers an area
of 384 km2 located approximately 100km southwest
of Cloncurry, Queensland. The Bungalien 2 and
Horse Creek 2 tenements were granted in 2012 and
incorporated and replaced the existing enclosed permits
with new titles.
The Bungalien project is located adjacent to the major
Pilgrim Fault within the Mount Isa Block Eastern Fold
Belt. The Proterozoic basement lies beneath up to
500m of Georgina Basin cover rocks and is dominated
by felsic volcanics, mafic volcanics and quartzite
intruded by a large pluton and associated stocks of
Wimberu Granite. The Wimberu Granite is a member
of the 1550-1500Ma Williams Batholith plutonic suite
which has a close spatial relationship to copper-gold
mineralisation in the Eastern Succession. Nearby to the
west of the project area lie the Trekelano (Cu-Au) and
Tick Hill (Au) deposits, and to the east the Mount Dore
mineralised corridor which contains past and producing
Cu-Au deposits including Starra, Mount Dore, Mount
Elliot, and the Merlin Mo-Re deposit.
Historical focus west of the Pilgrim Fault and difficulties
associated with exploring beneath the Georgina Basin
cover sequence resulted in minimal past exploration
within the Bungalien Project area. Joint Venture activity
at Bungalien has been driven by the acquisition and
interpretation of geophysical data due to the cover
thickness. Eight deep diamond drill holes have been
completed at Bungalien since program inception,
all targeting potential-field or electrical geophysical
anomalies. All drill holes have intersected IOCG-style
alteration (magnetitie-Kspar-albite-actinolite-carbonate)
and a number have returned significant low-grade
mineralised intercepts.
Following the completion of drill hole BNG008 at
Bronzewing Bore prospect late in the 2014 field season,
early work in 2015 focussed on a review of assay and
downhole data at Bronzewing Bore and the construction
of a working exploration model for the prospect. The
magnetic and gravity inversion models for Bronzewing
Figure 12: Bungalien Project Area tenement location plan
showing the extent of Georgina Basin cover sequence
and IOCG target locations.
Figure 13: Bronzewing Bore Prospect – Geological
interpretation through BNG001 and BNG008.
Magnetic susceptibility downhole trace on left,
copper assays on right.
20 GBM Resources Annual Report 2015
Bore and The Brothers were updated and subjected
to a target generation exercise. One RC drill hole was
completed at Burke Bore, testing a magnetic anomaly
beneath relatively shallow cover. A detailed work
program for the sixth and final field season of the initial
farm-in period was generated in the third quarter.
Bronzewing Bore Prospect diamond drill hole
(BNG008) was designed based on an analysis of previous
drilling and the 3D inversion models of magnetic, gravity
and MT data. The hole was targeted at a presumed
NW-SE trending structural contact zone between
Wimberu Granite and older felsic and mafic volcanics.
The drill hole reached a final depth of 713.8m in early
July and assay results were received in August. An
intense magnetite skarn and breccia zone in Wimberu
Granite of similar width and intensity occurs in both
BNG008 and the nearby hole, BNG001. BNG008
reached the main contact zone with foliated felsic
volcanic/shallow intrusive country rock at a down-hole
depth of ca 680m. Apatite-rich High REE associated
with P and Cu occurs near the upper skarn boundary
in both holes (see figures below). The disseminated
Chalcopyrite in Wimberu Granite in BNG001 could be
indicating a broader mineralised zone remains to be
tested to the NNE.
Of the eight holes now drilled into the basement at
Bronzewing Bore, all have intersected anomalous copper
mineralisation associated with IOCG-style mineralisation,
veining and alteration. The best visible intersections
occur within holes BNG001, BNG005 and now BNG008
and the prospectivity for large IOCG deposits remains
high under deep cover at Bronzewing Bore.
10.2 MOuNT MARGARET WEST PROjECT
(EPM16398, EPM16622, EPM19834, EPMA18172,
EPM18174, EPMA25544 & EPMA25545)
Multiple IOCG targets under shallow cover adjacent
to the Ernest Henry Gold Copper Mine.
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). Tenements
Tommy Creek EPMA25544 and Corella EPMA25545
were granted late in 2014. The project area contains
multiple targets considered prospective for IOCG
style mineralisation.
In very close proximity to the Mt Margaret West
tenements, less than four kilometres south from
EPM16398, 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 containing 2.6M tonnes of copper and 2.8M
ounces of gold. 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.
Figure 14: Mount Margaret West tenement and target plan.
GBM Resources Annual Report 2015 21
Review of Operations
10.2 MOuNT MARGARET WEST PROjECT continued
FC2 and FC2W Prospects
The exploration strategy is to identify areas with
promising structural settings, host lithology and/or
encouraging drill results associated with near contiguous
magnetic and/or gravity highs that hold scope for
further discovery. Due to the almost complete cover
by Palaeozoic sediments up to 100m thick across the
project, emphasis is placed on the generation of new
geophysical data and the reprocessing of historic data
using modern techniques to generate drill targets.
Work at Mount Margaret during the year included the
completion of a number of ground-based geophysical
surveys, production of 3D geophysical inversions, soil
sampling and the drilling of three diamond drill holes.
The major elements of the field program included:
drilling of three diamond holes at FC2 (two) and FC4SE
(one) for a total of 1,199.7m., completion of the 14-line
Dipole-dipole IP program across FC2 and FC2W started
in 2014, a 1 km2 3DIP survey over part of FC2 and
the creation of a detailed inversion model, extension of
the FC2 ground gravity survey south to cover the new
Tommy Creek lease, production of magnetic and gravity
3D inversion models from merged historic and JV data,
completion of an MMI soil program at FC2W.
Initial analysis of the historic geophysical and drilling data
over the FC2 magnetic-gravity anomaly suggested the
prospect may be prospective for Starra/Selwyn-style
ironstone-hosted gold and copper mineralisation.
More recent work indicates the potential for Ernest
Henry-style mineralisation based on the structural
setting, lithology and large scale of the magnetic and
gravity anomalies at FC2. Previous work completed in
the area included extensive ground gravity surveying and
MMI soil sampling, a detailed airborne magnetic survey,
a short IP survey and the drilling of three diamond holes
at FC2W.
No ground-based historic exploration had taken place at
FC2W and only minimal drill testing of the FC2 anomaly
was undertaken. The JV focus since work began has
therefore been target generation from data acquisition
and interpretation. This work continued during the
period. A large 3-stage Dipole-dipole IP program
consisting of 14 east-west lines was completed across
much of the prospect area. This work, in conjunction
with reprocessing of historic WMC and MIMDAS IP data,
produced a series of chargeability anomalies which were
progressively ranked for drill testing.
Figure 15: FC2/FC2W Prospects showing complex high magnetic and gravity areas- potentially
reflecting IOCG style alteration and mineralisation. 2015 IP program (pink 2DIP lines and green 3DIP
square) showing priority ratings from 1 to 7. CED JV 2013, 2014 collars with background TMI-RTP
2014 IP program (white lines) with anomalies highlighted (red – significant; recognisable – red/yellow
dashed lines). One 2012 CED JV IP line (red) and historical FC2 collars also shown.
22 GBM Resources Annual Report 2015
Two diamond drill holes were completed at FC2 during
the period for a total of 761.7m. MMA007 was designed
to test an overlapping magnetic/gravity/IP chargeability
anomaly at the SE margin of FC2. It was the priority
target of six defined from geophysical analysis. The hole
intersected a medium to fine-grained mafic intrusive unit
with intense to moderate Magnetite-Actinolite veining
(± Feldspar) and alteration. Magnetite content varies
from < 5% to up to 30% locally. The magnetite is due to
hydrothermal concentration/remobilisation in a Fe-rich
oxidised mafic rock unit and is therefore not a Banded
Iron Formation as suggested in historical reports.
Strong to intense magnetite veining and alteration is
evident across several intervals, and sulphides (pyrite,
chalcopyrite, minor covellite) are typically associated with
veining and are present throughout the hole. Copper
is anomalous throughout the basement (peak 0.13%
Cu), correlating well with both downhole magnetic
susceptibility, sulphur percentage and downhole
IP chargeability.
Drill hole MMA008 intersected a broadly banded
magnetite-actinolite-red feldspar altered calc-silicate
unit with variable modest to very strong magnetite.
An intense magnetite bearing interval is evident down-
hole from ca 150m to 250m. Copper is anomalous in
the strong magnetite zone with a peak assay of 0.25%.
The area is considered to have been upgraded by the
widespread IOCG style alteration and elevated copper
values in this area and further work is required.
11.0 Milo and Sevastapol Graphite Prospects
Figure 16: FC2 Prospect: Plan shows Magnetic
Susceptibility (black) and Chargeability (blue) down-hole
projected to surface for drill collar MMA007 with final
depth; Background is airborne TMI-RTP overlain by
gravity inversion contours (-203 mRL), MIMDAS anomalies
(red lines) and historical collars with max depth.
Between August and December 2014 a program of drilling, rock-chip sampling, mapping and petrographic analysis
was completed at the Sevastopol and Milo prospects within EPM’s 16398 and 14416 respectively, located within
the Cloncurry district, NW Queensland. The program was initially designed to determine the lateral extent, grade and
grain-size of known graphitic shale units at Sevastopol. This information would then be used to estimate an exploration
target range for graphitic carbon and provide the basis for further resource definition drilling work if warranted.
Initial drilling at Sevastopol returned promising grade and thickness potential (37.5m @ 8.1% TGC from surface to
end of hole). Estimated grain-size was very fine, however given the encouraging grade and deposit size potential,
a follow-up program of 14 RC holes was completed with the aim of identifying areas of possible increased grain-size
within the prospect. Late in the Sevastopol program it became clear that the consistently very fine grain-size of
the graphite crystals would be an impediment to the economics of the prospect and it was decided to assess
the graphite potential at the company’s Milo REE-U-Cu asset.
The presence of graphitic shale in the Proterozoic sequence at Milo had been established during the Company’s
resource drilling work. A program of surface mapping and rock-chipping defined extensive graphitic horizons at
surface within and surrounding the proposed pit boundary. High-grade TGC (peak 23.2% TGC) was returned
across the prospect from rock-chip assays. Re-assaying of RC drill chips from an existing GBM drill hole returned
an intersection of 45m @ 12.5% TGC from surface, a very encouraging result (refer GBM Resources Ltd. Quarterly
Report, December 2014). As no bulk sample had been preserved from the existing hole, the decision was made
to twin the hole with a short diamond hole for metallurgical sample collection purposes.
Reflected light microprobe petrology results from a suite of rock-chip and diamond core samples indicated the
graphite grain-size at Milo is extremely fine (generally less than 20 um), downgrading the prospectively of the
area for economic graphite mineralisation. No further work is planned on the graphite prospects at this stage.
GBM Resources Annual Report 2015 23
Review of Operations
12.0 Bungalien Phosphate Project
Exploration opportunity for discovery of phosphate
resources in the Beetle Creek formation, host to
Australia’s largest phosphate mine at Phosphate Hill.
Phosphate occurrence already confirmed by GBM drilling.
GBM has completed 43 shallow RC drill holes for a total of
1,436 metres during two stages on the Bungalien Phosphate
project, confirming the wide extent of phosphate mineralisation
in the area (refer ASX release dated 5 March 2009).
Peak phosphate results returned values exceeding 25% P2O5
and include many intersections of significant widths of greater
than 10% P2O5 mineralisation.
In addition phosphate mineralisation was intersected in
scout drill holes on GBM’s Horse Creek EPM18208 and
Limestone Creek EPM17849 tenements; PRC026 on
Horse Creek intersected 7m @ 4.19% P2O5, and PRC024
on Limestone Creek intersected 9m @ 2.14% P2O5. These
holes demonstrate that further substantial areas of these
large tenements hold potential for untested phosphate
mineralisation at shallow depths. No further exploration
was completed during the year.
Bungalien Project remains a highly prospective area for
discovery of rock phosphate resources. The Georgina Basin
sediments which overlay the Proterozoic basement continues
to emerge as one of the world’s major phosphate provinces
with phosphate resources currently identified totalling over
three billion tonnes.
Figure 17: Location of the Burke Bore phosphate
project within EPM18207.
Figure 18: Drill hole location, best grades and geology of the Burke Bore phosphate prospect.
24 GBM Resources Annual Report 2015
13.0 Tenements
Throughout the year GBM Resources tenement
portfolio has grown to include 44 tenements in ten
project areas; seven licences in Victoria and 37 in
Queensland, two of which are applications (EPMA18672
and EPMA25365), forming a total of 4,595km2 in
the Country’s most prospective areas.
During the reporting period GBM acquired Mt Coolon
Gold Mines Pty Ltd, the tenement package included
four granted mining leases, two granted exploration
permits and one exploration permit application covering
a total of 773 km2. In addition seven new tenements
were granted during the reporting period. Three in the
Mt Morgan region, Central Queensland (EPM 25177,
EPM 25362 and EPM25678) and four in the Mt Isa
region, North West Queensland (EPM 19255,
EPM 25545, EPM25544 and EPM 25213). On grant
of overlying application EPM19255, Talawanta2,
EPM 15406, Talawanta was conditionally surrendered.
All of these licences and applications (see tenement
schedule) are held 100% by the Company (or its
wholly owned subsidiaries). However, a farm-in
agreement exists between GBM Resources and
Cloncurry Exploration and Development Pty. Ltd.
(owned by Pan Pacific Copper and Mitsui Corporation),
and subsequently all tenements in the Talawanta-Grassy
Bore, Mount Margaret and Bungalien Projects are
subject to a farm in agreement. Application EPMA18672
is a competing application and GBM has priority.
In addition GBM has signed agreements with
Newcrest to acquire EPM19483 Mayfield in the
Mount Isa area. This is subject to the transfer
being approved by the Queensland Department.
A summary of GBM’s tenements is provided in Table 6
on page 28 of this report.
Abbreviations
CuEq
EM
IP
RC
REE(O)
Copper Equivalent, as defined in note
in Milo Section.
Electro Magnetic (geophysical surveys)
Induced Polarisation (geophysical surveys)
Reverse circulation drilling
Rare Earth Elements (oxides).
There are 14 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.
Exploration Results previously reported under JORC 2004
Competent Person’s Statement for Exploration Results included in this report that were previously reported pursuant
to JORC 2004: This information has not been updated since to comply with the JORC Code 2012 on the basis that
the information has not materially changed since it was last reported.
The information in this report that relates to Exploration Targets and Exploration Results is based on information
compiled by Neil Norris, who is a Member of The Australasian Institute of Mining and Metallurgy and The Australasian
Institute of Geoscientists. Mr Norris is a full‑time employee of the company, and is a holder of shares and options in
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.
Exploration Results and Mineral Resources previously reported under JORC 2012
The Company confirms that it is not aware of any new information or data that materially affects the information
included in the relevant market announcements and that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.
GBM Resources Annual Report 2015 25
Annual Mineral Resources Statement
The following Annual Statement of Mineral resources statement reflects GBM’s mineral the Company’s resources as
at 30 June 2015. Details of the competent person for each of these resources is provided separately in the relevant
section of this annual report.
For the purpose of preparing this Annual Statement of Mineral resources as at 30 June 2015, GBM has completed
a review of each resource taking into account long term metal price, foreign exchange rates, cost assumptions
based on current industry conditions, any changes that may affect the capability for these resources to be exploited
or which may result in material changes to cut-off grades and physical mining parameters.
Mount Coolon Gold Mines Limited
Details of the Mount Coolon resources can be located in ASX release dated 27 August 2015.
Project
Location
Measured
Indicated
Inferred
000’t Au g/t Au ozs
000’t Au g/t Au ozs
000’t Au g/t Au ozs
000’t Au g/t Au ozs
Resource Category
Total
Cut-off
Koala
Hecorina Pit
Underground Extension
Tailings
Total
Eugenia
Oxide
Sulphide
Total
Glen Eva
Below pit
Total
305
305
1.6
1.6
15,800
15,800
15
205
11
231
1,445
2,306
3,751
132
305
1.6
15,800
4,114
2.6
5.9
1.6
5.5
0.9
0.9
0.9
7.8
1.4
1,300
39,600
500
40,400
43,300
62
6
68
252
66,100
1,007
109,400
1,260
33,200
21
183,000
1,349
5.3
1.5
5.0
1.2
1.4
1.4
5.9
1.6
Malmsbury Gold Project Resources
For original release refer to ASX release dated 19 January 2009.
Resource Classification
Tonnes
Au (g/t)
Au (ozs)
Inferred
820,000
4.0
104,000
15
267
322
604
10,600
300
10,900
9,700
1,698
2.6
5. 7
1.6
3.5
1.0
1,300
None
49,300
3
16,700
None
67,200
53,000
45, 200
3,313
1.04
111,300
54,900
5,011
4,000
154
69,800
5,769
1.0
7.5
1.4
164,300
37,200
268,600
0
0.4
0.4
0.4
3.0
Note: there has been no change in the resource for the Malmsbury Project from the previous year.
Milo IOCG Project
Details of the Milo resource can be located in ASX release dated 9 August 2012.
TREEYO Inferred Resource
cutoff
(TREEYO
ppm)
tonnes
(Mt)
TREEYO
(ppm, t)
Grades
300
176
620
LREEO
HREEY
P2O5
(%, t)
0. 75
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)
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
Copper Equivalent Resource
Resource
Classification
Inferred
Contained Metal
cutoff
(CuEQ %)
0.10
tonnes
(Mt)
88.4
CuEQ
(%, t)
0.34
Au
(ppm, ozs)
0.04
301,000
126,000
Cu
(ppm, t)
1,090
96,500
Ag
(ppm, ozs)
1.63
4,638,000
Mo
(ppm/t)
65
5,700
Co
(ppm/t)
130
11,700
U3O8
(ppm/Mlbs)
72
14.0
Note: There has been no change to Milo Resources during the current reporting year.
The information in this Annual Mineral Resources Statement is based on and fairly represents information and
supporting documentation prepared by the competent persons named in the relevant sections of this report.
The information in this Annual Mineral Resources Statement as a whole that relates to Mineral Resources is based on information
compiled by Neil Norris, who is a Member or Fellow of The Australasian Institute of Mining and Metallurgy. Mr Norris is a holder of shares
and options in the company and 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 2012 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.
26 GBM Resources Annual Report 2015
Sustainable Development
The safety and health of our employees, contractors,
consultants and visitors at work is a core value of GBM
Resources. No other business objective has higher priority.
GBM Resources is committed to providing a safe and
healthy work environment for all employees, contractors,
consultants and visitors and requires that safety should
not be compromised for any other business priority. We
expect and monitor, consultants, suppliers, visitors and
contractors of GBM Resources to have the same high
standards of safety and health as we do.
At GBM Resources Ltd we aspire to zero harm to our
people and the protection of the environment by creating
a safe and sustainable environment for all of our staff
and stakeholders. GBM Resources aims to be among
the safest mineral explorers in the industry. Wherever
we operate we will develop, implement and maintain an
integrated health, safety and environment management
system that drives continual improvement.
GBM has been a signatory to the Australian minerals
industry framework for sustainable development,
Enduring Value, since 2008. Enduring Value recognises
that the future of our industry is inseparable from the
global pursuit of sustainable development.
SAFETY & TRAINING
GBM continues to develop and improve the safety
management system which is already proving very
effective. The company aims to cooperate with
government and the community stakeholders on
occupational health and safety issues and contribute
to the development of relevant occupational health and
safety, legislation standards and research, when needed.
Focus for the current year was placed on identifying and
analysing minor incidents that have potential for more
serious consequences to determine why incidents occur
and to put in place measures to reduce the likelihood of
incidents recurring. This was completed in conjunction
with ongoing reviews of GBM’s Risk Register and
procedures continued throughout the year.
During the current year refresher First Aid Courses
were undertaken during the year for all staff members
to ensure the maximum capability to deal with injuries
should they occur.
COMMuNITY & ENvIRONMENT
n
Identify the cultural values, traditions and beliefs
of the communities and to respect and respond
to those values and belief systems.
n Be open and transparent in all dealings with
communities and in describing and explaining
potential social environmental impacts that
might occur
n
Ensure that communities are fairly compensated
for any activities undertaken on their properties.
GBM Resources is committed to monitoring and
managing the environmental impacts of our activities
to secure a sustainable environmental future for
communities surrounding our sites, even after the
activities cease. During this year the company reviewed
and finalised rehabilitation of sites tested over four years
ago to ensure that no significant long term impacts
were sustained.
The company continues to integrate environmental
management into all facets of our business and to
inform and consult with the community about GBM’s
activities and projects as we continually strive to
improve overall environmental performance
STATISTICS/ACHIEvEMENTS
No lost time injuries or medically treated injuries were
sustained during the 2014/15 field season. During the
12 month reporting period the total recordable injury
frequency rate per million hours worked was maintained
at 0.0 based on combined GBM and contractors
working hours of 23,966. This compares to the 2013/14
average LTIFR published by Safe Work Australia for
the Exploration sector of 2.8. Safety performance is
measured in terms of near misses, Lost Time Injuries
(LTIs) and Medically Treated Injuries (MTIs). Within GBM
Resources, all staff are accountable for implementing
these procedures.
Whilst GBM’s excellent results of zero LTI’s, MTI’s
and Environmental Incidents is an indication of the
Company’s stringent and high Safety and Environment
standards, the company recognises that complacency
cannot be allowed to develop. The company will
continue to develop and improve it’s systems and
strive to maintain a record of zero harm.
GBM also achieved a record of no environmental
incidents for the year. A record it is equally determined
to maintain by continuing to improve and develop the
systems already in place.
GBM’s LTIFR vs Industry LTIFR
8
0
-
7
0
0
2
9
0
-
8
0
0
2
0
1
-
9
0
0
2
1
1
-
0
1
0
2
2
1
-
1
1
0
2
3
1
-
2
1
0
2
4
1
-
3
1
0
2
5
1
-
4
1
0
2
Graph 3: GBM’s year-on-year safety performance
against industry average.
GBM Resources Annual Report 2015 27
Tenement Schedule
Project/Name
Tenement
No.
Owner
Manager
Interest
Status
Granted
Expiry
Approx
Area
(km2)
Sub-
blocks
State
JV
EL4515
EL5120
EL5346
EL5423
EL5293
EL5292
EL5347
vICTORIA
Malmsbury
Belltopper
Lauriston
Willaura
Willaura
Lake Bolac2
Yea
Monkey Gully
Tin Creek
Rubicon
QuEENSLAND
Mount Morgan
Dee Range
Boulder Creek
Black Range
Smelter Return
Limonite Hill
Limonite Hill East
Mt Hoopbound
Mt Victoria
Bajool
Mountain Maid
MOuNT ISA REGION
Talawanta-Grassy Bore
Talawanta2
Grassy Bore2
Mount Margaret
Mt Malakoff Ext
Cotswold
Mt Marge
Dry Creek
Dry Creek Ext
Corella
Tommy Creek
Brightlands
Brightlands
Brightlands West
Brightlands West Ext.
Wakeful
Highway
Bungalien
Limestone Creek
Bungalien 2
Horse Creek 2
The Brothers
Mayfield
Mayfield
Mt Coolon
Mt Coolon
Mt Coolon East
Mt Coolon North
Conway
Koala 1
Koala Camp
Koala Plant
Glen Eva
EPM16057
EPM17105
EPM17734
EPM18366
EPM18811
EPM19288
EPM18812
EPM25177
EPM25362
EPM25678
EPM19255
EPM19256
EPM16398
EPM16622
EPM19834
EPM18172
EPM18174
EPM25545
EPM25544
EPM14416
EPM18051
EPMA18672
EPM18454
EPM18453
EPM17849
EPM18207
EPM18208
EPM25213
EPM19483
EPM15902
EPMA25850
EPM25365
EPM7259
ML 1029
ML 1085
ML 1086
ML 10227
GBMR*1/Belltopper Hill
GBMR/Belltopper Hill
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR*2/Isa Tenements
GBMR*2/Isa Tenements
GBMR*2 /Isa Tenements
GBMR*2 /Isa Tenements
GBMR/Isa Tenements
GBMR*2/Isa Tenements
GBMR*2/Isa Tenements
GBMR/Isa Tenements
GBMR/Isa Tenements
GBMR*2/Isa Brightlands
GBMR/Isa Brightlands
GBMR/Isa Brightlands
GBMR/Isa Brightlands
GBMR/Isa Brightlands
GBMR/Isa Tenements
GBMR*2/Isa Tenements
GBMR*2/Isa Tenements
GBMR/Isa Tenements
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
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
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%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Granted
Granted
06-Oct-05
17-Dec-08
05-Oct-15
16-Dec-15
Granted
Granted
02-Jun-11
03-Dec-12
01-Jun-16
02-Dec-17
Granted
Granted
Granted
23-Mar-11
23-Mar-11
27-Feb-12
22-Mar-16
22-Mar-16
26-Feb-17
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
27-Sep-07
26-Mar-08
20-May-09
21-Jun-12
21-Nov-12
31-Oct-13
26-Jul-12
26-Aug-14
27-Nov-14
09-Apr-15
26-Sep-16
25-Mar-17
19-May-16
20-Jun-17
20-Nov-17
30-Oct-18
25-Jul-17
25-Aug-17
26-Nov-17
08-Apr-18
Granted
Granted
26-Aug-14
27-Jun-14
25-Aug-19
26-Jun-18
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Appl’n
Granted
Granted
Granted
Granted
Granted
Granted
19-Oct-10
30-Nov-12
04-Mar-13
13-Jul-12
25-Oct-11
20-Mar-15
11-Nov-14
18-Oct-15
29-Nov-17
03-Mar-18
12-Jul-17
24-Oct-16
19-Mar-17
10-Nov-16
5-Aug-05
22-Oct-13
4-Aug-16
21-Oct-18
23-Jan-12
23-Jan-12
22-Jan-17
22-Jan-17
20-Oct-10
24-May-12
2-Aug-12
16-Oct-14
19-Oct-15
23-May-17
1-Aug-17
15-Oct-19
25
8
8
218
316
329
104
46
88
81
98
260
29
23
3
111
26
325
322
85
46
3
189
39
59
33
254
7
16
13
20
49
163
163
10
GBMR*2,4/Isa Tenements
GBMR
100%
Granted
11-Mar-14
10-Mar-19
302
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
100%
100%
100%
100%
100%
100%
100%
100%
Granted
Appl’n
Granted
Granted
Granted
Granted
Granted
Granted
13-Jun-08
12-Jun-18
18-Sep-14
18-May-90
30-May-74
27-Jan-94
27-Jan-94
05-Dec-96
17-Sep-19
17-May-19
31-Jan-24
31-Jan-24
31-Jan-24
31-Dec-16
325
260
146
39
0.7
0.0
1.0
1.3
25
8
8
218
316
329
104
14
27
25
30
80
9
7
1
34
8
100
99
26
14
1
58
12
18
10
78
2
5
4
6
15
50
50
3
93
100
80
45
12
Vic
Vic
Vic
Vic
Vic
Vic
Vic
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Qld
Qld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
Q’ld
CED JV
CED JV
CED JV
CED JV
CED JV
CED JV
CED JV
CED JV
CED JV
CED JV*5
CED JV
CED JV
CED JV
CED JV
Notes:
*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. On all or part of the tenement area.
*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 of transfer from Newcrest.
*5 GBM holds approximately 40% of AASB.
*6 Chumvale prospect within GBM’s Brightlands tenement.
Table 6: GBM Resources Limited tenement summary at 30 June 2015.
28 GBM Resources Annual Report 2015
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 2015.
Frank Cannavo
Non-Executive Director (appointed 5 August 2014)
(Executive Director from 5 August 2014 to
15 April 2015)
Directors
The names of Directors in office at any time during
or since the end of the year are:
Peter Thompson
BBus, CPA, FCIS
Executive Chairman
Experience
Mr Thompson is a CPA qualified accountant and
Fellow of Governance Institute of Australia. He has over
35 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.
Experience
Mr Cannavo is an experienced public company director
with significant business and investment experience
working with exploration companies in the mining
industry, and has been instrumental in assisting several
listed and unlisted companies achieve their growth
strategies through the raising of investment capital
and the acquisition of assets.
Previously, Mr Cannavo was a founding director
of Fortis Mining Ltd (resigned 23 December 2011).
Following completion of the acquisition of the
Kazakhstan potash projects, Fortis Mining Ltd was
renamed to Kazakhstan Potash Corporation Ltd
(ASX: KPC). He was also previously a director of a
Great Western Exploration Ltd (resigned 11 October
2013), a public listed company on the ASX with mining
interests in Western Australia. In addition, he has
been a director of several other ASX-listed companies
including Hannans Reward Ltd (resigned 24 March
2009), Motopia Ltd (resigned 8 August 2011) and
ATOS Wellness Ltd (resigned 14 January 2011).
Mr Thompson has held no other directorships of listed
companies in the last 3 years.
Mr Cannavo has held no other directorships of listed
companies in the last 3 years.
Neil Norris
BSc (Hons), MAusIMM, MAIG, MAICD
Exploration Director – Executive
Experience
Mr Norris is a geologist with over 30 years’ experience
gained in Australia and overseas. Prior to joining GBM,
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.
Hun Seng Tan
Non-Executive Director (appointed 15 April 2015)
Mr Tan has over 30 years’ experience in the process
engineering sector both in China and Singapore.
He was founder of BMS Technology PL, a manufacturer
for the hard disk industry in Singapore and China.
Mr Tan led BMS Technology in a successful merger
and later 100% acquisition of that company by Nidec
Corporation of Japan which is listed on both the
New York and Tokyo stock exchanges.
Mr Tan holds a Master of Business Administration
from University of Hull, United Kingdom and obtained
his Advanced Diploma in Management Study and
Production Engineering. Mr Tan has a proven track
record in business development and extensive business
relations in China and the Asia capital markets.
Mr Tan has held no other directorships of listed
companies in the last 3 years.
GBM Resources Annual Report 2015 29
Directors’ Report
Directors (continued)
Former Directors
Chiau Woei Lim
MBA
Non-Executive Director (resigned 30 July 2015)
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.
Guan Huat (Sunny) Loh
BBA, MBA, ACIS
Non-Executive Director (resigned 5 August 2014)
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.
Company Secretary
Cameron Switzer
BSc (Hons), MAusMM, MAIG
Non-Executive Director (resigned 5 August 2014)
Mr kevin Hart
BComm, FCA
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.
Mr Hart is a Chartered Accountant and was appointed
to the position of Company Secretary on 3 February
2010. He has over 30 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
3
1
3
1
3
2
1
3
1
3
1
3
2
1
P Thompson
C Switzer (resigned 5/8/14)
N Norris
G Loh (resigned 5/8/14)
C Lim
F Cannavo (appointed 5/8/14)
H Tan (appointed 15/4/15)
30 GBM Resources Annual Report 2015
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 Queensland IOCG
prospects under the farm-in agreement with Mitsui and
Pan Pacific, and on the acquisition of the Mt Coolon
Gold Project from Drummond Gold Limited.
Operating Results
The net loss after income tax attributable to members
of the Group for the financial year to 30 June 2015
amounted to $4,545,251 (2014: $6,680,236). Including
in the loss for the financial year is $2,996,328 in
respect of exploration costs written off and expensed
(2014: $3,510,5587), and the Company’s share of the
net loss of its equity accounted associate amounting
to $630,691 (2014: $2,208,466).
Financial Position
At the end of the financial year, the Group had
$1,107,721 (2014: $527,372) in cash on hand and
on deposit. Carried forward exploration and evaluation
expenditure was $10,355,613 (2014: $10,569,552).
Equity Securities on Issue
30 june 2015 30 June 2014
Options over Ordinary Shares
At 30 June 2015, there were 177,746,562 options
to acquire ordinary shares on issue.
During the year ended 30 June 2015, no options
were issued pursuant to the terms of the Company’s
Option Plan.
During the year ended 30 June 2015, the following
options were issued by the Company:
n
43,000,000 options issued, exercisable at 3.5 cents
each on or before 30 June 2016, pursuant to a
share placement as attaching securities.
During the year ended 30 June 2015 no ordinary shares
were issued on exercise of options.
There were no options lapsed unexercised during the
financial year.
No options have been issued, exercised or cancelled
between the end of the financial year and the date
of this report.
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 2012.
At 30 June 2015, there were nil performance share
rights to acquire ordinary shares on issue.
During the year ended 30 June 2015, there were no
performance share rights issued, becoming vested,
exercised or cancelled.
Ordinary fully paid shares
557,894,121 385,194,121
Options over
unissued shares
177,746,562
134,746,562
No performance share rights have been issued,
becoming vested, exercised or cancelled between
the end of the financial year and the date of this report.
Ordinary Fully Paid Shares
During the year ended 30 June 2015 the Company
issued the following ordinary fully paid shares:
n
n
n
100,000,000 shares to professional and
sophisticated investors pursuant to a share
placement at 2.0 cents per share;
50,000,000 shares in part consideration for the
acquisition of the issued capital of Mt Coolon Gold
Mines Pty Ltd at a deemed price of 2.3 cents per
share; and
22,700,000 shares to professional and
sophisticated investors pursuant to a share
placement at 2.5 cents per share.
No shares have been issued 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 During the year the Company acquired a 100%
interest in the share capital of Mount Coolon Gold
Mines Pty Ltd from Drummond Gold Limited for
consideration of 50,000,000 ordinary fully paid
shares and $850,000 cash.
GBM Resources Annual Report 2015 31
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 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.
Directors’ Report
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 30 July 2015 the Company accepted the
resignation of Mr Chiau Woei Lim as a director
of the Company.
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 2015.
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 2015.
32 GBM Resources Annual Report 2015
Remuneration Report (Audited) (continued)
Details of Remuneration for Directors and Executive Officers
The remuneration of each Director of the Company and relevant executive officers (together known
as Key Management Personnel or KMP) 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.
2015
Remuneration
of kMP
Directors
P Thompson1
C Switzer
N Norris1
G Loh
C Lim
F Cannavo
H Tan
Total Directors
Short term
Post
Employment
Share Based
Payments
Salary
and fees
$
207,500
3,000
Other
$
–
–
Super-
annuation
$
19,712
–
193,700
11,124
18,401
3,000
–
119,917
16,000
543,117
–
–
–
–
–
–
10,252
–
11,124
48,365
Options/
shares
$
–
–
–
–
–
–
–
–
Total
$
227,212
3,000
223,225
3,000
–
130,169
16,000
602,606
Share Based
Payments
as % of
remuneration
%
–
–
–
–
–
–
–
1 During the 2015 financial year total remuneration payable to the Executive Directors Peter Thompson and Neil Norris
continued to be paid on a temporary reduced basis. As a further cost reduction program for the 2016 financial year
no further remuneration is being paid to executive or non-executive directors of the Company, until such time as the
Board considers that the Company has sufficient cash resources. This is a temporary measure to ensure that the
current strategies in place are achieved by the Company.
2014
Remuneration
of kMP
Directors
P Thompson2
C Switzer
N Norris2
G Loh
C Lim
Short term
Post
Employment
Share Based
Payments
Salary
and fees
$
214,1363
36,000
Other
$
–
–
Super-
annuation
$
19,808
–
198,2963
20,037
18,342
36,000
–
–
–
–
–
Options/
shares
$
–
–
–
–
–
–
Total
$
233,944
36,000
236,675
36,000
–
542,619
Share Based
Payments
as % of
remuneration
%
–
–
–
–
–
Total Directors
484,432
20,037
38,150
2 From 1 July 2013 total remuneration payable to the Executive Directors Peter Thompson and Neil Norris was
reduced on a temporary basis, by $90,000 per annum as part of the Company’s cash conservation measures
implemented during the 2012/13 financial year. From 1 April 2014 to 31 July 2015 remuneration payable to the
Executive Directors was further reduced, on a temporary basis, to $125,000 per annum, exclusive of superannuation.
3 Includes payments for unused annual leave.
See disclosure relating to service agreements for further details of remuneration of executive directors.
GBM Resources Annual Report 2015 33
Directors’ Report
Remuneration Report (Audited) (continued)
Options Provided as Remuneration
During the years ended 30 June 2014 and 30 June 2015
no options have been granted and issued to KMP of
the Company.
No shares were issued to KMP of the Company in
respect of the exercise of options previously granted
as remuneration.
Service Agreements
Remuneration and other terms of employment for the
Executive Directors are set out in Service Agreements:
Peter Thompson – Executive Chairman
The service agreement has a term of 12 months
from 1 September 2015. Total remuneration under
the contract of $300,000 per annum inclusive of
superannuation has been temporarily reduced to
$235,425 per annum as part of the Company’s cost
reduction program. As a further cost reduction effort no
remuneration will be paid from 1 October 2015, which
was voluntarily adopted by the Chairman. This 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.
Neil Norris – Exploration Director
The service agreement has a term of 12 months
from 1 September 2015. Total remuneration under
the contract of $300,000 per annum inclusive of
superannuation has been temporarily reduced to
$217,000 per annum as part of the Company’s cost
reduction program. As a further cost reduction effort no
remuneration will be paid from 1 October 2015, which
was voluntarily adopted by the Exploration Director.
This 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.
Frank Cannavo – Executive Director
Mr Cannavo resigned from his executive role
on 15 April 2015.
The executive services agreement was effective
for a term of 7 months to 28 February 2015.
Total remuneration paid under the contract was
$118,161 inclusive of superannuation.
There were no termination benefits payable on
termination of the executive service contract.
Share Based Compensation
At the date of this report the Company has not
entered into any agreements with KMP 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.
34 GBM Resources Annual Report 2015
Remuneration Report (Audited) (continued)
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
Ordinary shares
held at
1 july 2014
Movement
during the
financial year
Ordinary shares
held at
30 june 2015
Ordinary shares held
at the date of the
Directors’ Report
9,862,582
–
9,862,582
9,862,582
C Switzer (resigned 5/8/14)
6,693,750
(6,693,750)2
–
–
N Norris
9,550,000
–
9,550,000
9,550,000
G Loh1 (resigned 5/8/14)
13,856,708
(13,856,708)2
–
–
C Lim (appointed 2/9/13)
24,077,285
F Cannavo (appointed 5/8/14)
H Tan (appointed 15/4/2015)
1 Shares acquired on market.
–
–
–
–
24,077,285
24,077,285
–
–
16,000,000
16,000,000
16,000,000
2 Shares held on ceasing to be a director of the Company on 5 August 2014.
Options
Director
P Thompson
Options
held at
1 july 2014
2,468,763
Movement
during the
financial year
Options
held at
30 june 2015
Options held at
the date of the
Directors’ Report
–
2,468,763
2,468,763
C Switzer (resigned 5/8/14)
1,878,126
(1,878,126)3
–
–
N Norris
1,546,818
–
1,546,818
1,546,818
G Loh (resigned 5/8/14)
8,900,000
(8,900,000)3
C Lim (appointed 2/9/13)
F Cannavo (appointed 5/8/14)
H Tan (appointed 15/4/15)
–
–
–
–
–
–
–
–
–
–
3 Options held on ceasing to be a director of the Company on 5 August 2014.
–
–
–
–
Loans to Directors and Executives
There were no loans entered into with Directors or executives during the financial year under review.
Other Transactions with key Management Personnel
During the financial year the Company incurred costs on behalf of its associate Angka Alamjaya Sdn Bhd (AASB),
a Company associated with Mr Chiau Woei Lim, in respect of AASB’s operations on a reimbursable basis.
During the 2015 financial year an amount of $296,963 (2014: $1,237,364) was incurred by the Company on
behalf of AASB, and a total of $700,020 (2014: $732,491) has been reimbursed to the Company by AASB.
At 30 June 2015 an amount of $101,856 is outstanding.
Other than the above, there are no transactions with Directors, or Director related entities or associates.
End of Remuneration Report
GBM Resources Annual Report 2015 35
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 29th day of September 2015
Peter Thompson
Executive Chairman
36 GBM Resources Annual Report 2015
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 2015, 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.
Perth, Western Australia
29 September 2015
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.
12
GBM Resources Annual Report 2015 37
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For the Year Ended 30 June 2015
Revenue
Consulting and professional services
Corporate and project assessment costs
Share of net loss of associate
Depreciation
Employee benefits expense
Impairment expense
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
Note
3
30
11
4
4
8
4
15
5
Consolidated
2015
$
2014
$
287,393
273,469
(254,656)
(84,963)
(630,691)
(38,192)
(410,865)
(58,499)
(2,996,328)
–
(156,020)
(202,430)
(184,573)
(111,716)
(2,208,466)
(36,439)
(315,813)
–
(3,510,587)
(400,000)
(164,043)
(169,792)
(4,545,251)
(6,827,960)
–
147,724
(4,545,251)
(6,680,236)
Other comprehensive income
–
–
Total comprehensive loss for the year
(4,545,251)
(6,680,236)
Basic loss per share
Diluted loss per share
6
6
(0.9)
(0.9)
(1.8)
(1.8)
Cents
Cents
The accompanying notes form part of these financial statements
38 GBM Resources Annual Report 2015
Consolidated Statement of Financial Position
As at 30 June 2015
Current assets
Cash and cash equivalents
Trade and other receivables
Assets held for sale
Total Current Assets
Non-current assets
Trade and other receivables
Exploration and evaluation expenditure
Property, plant and equipment
Investments accounted for using the equity method
Total Non-current Assets
TOTAL ASSETS
Current liabilities
Trade and other payables
Total Current Liabilities
Non-current liabilities
Provision for rehabilitation
Total Non-current Liabilities
TOTAL LIABILITIES
NET ASSETS
Equity
Issued capital
Option reserve
Share based payments reserve
Accumulated losses
Note
Consolidated
2015
$
2014
$
21
7
8
7
9
10
11
12
13
14
16
16
16
1,107,721
123,655
–
1,231,376
527,372
570,943
308,499
1,406,814
411,857
10,355,613
205,171
–
30,936
10,569,552
100,033
630,691
10,972,641
11,331,212
12,204,017
12,738,026
616,596
616,596
396,054
396,054
446,066
446,066
–
–
1,012,650
446,066
11,191,367
12,291,960
27,372,099
323,733
400,000
(16,904,465)
23,927,441
323,733
400,000
(12,359,214)
TOTAL EQuITY
11,191,367
12,291,960
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2015 39
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2015
Consolidated
Note
Issued
capital
$
Option
reserve
$
payments Accumulated
reserve
$
losses
$
Total
$
Share
based
Balance at 1 July 2013
Share based payments
Shares issued (net of costs)
Options issued pursuant to
priority entitlement offer
Loss attributable to
members of the Company
21,118,244
–
2,809,197
–
–
16
14
16
16
–
–
–
323,733
–
(5,678,978) 15,439,266
400,000
–
–
–
–
–
400,000
2,809,197
323,733
–
–
(6,680,236)
(6,680,236)
Balance at 30 June 2014
23,927,441
323,733
400,000
(12,359,214) 12,291,960
Balance at 1 july 2014
23,927,441
323,733
400,000
(12,359,214) 12,291,960
Shares issued (net of costs)
14
3,444,658
Loss attributable to
members of the Company
16
–
–
–
–
–
3,444,658
–
(4,545,251)
(4,545,251)
Balance at 30 june 2015
27,372,099
323,733
400,000
(16,904,465) 11,191,367
The accompanying notes form part of these financial statements
40 GBM Resources Annual Report 2015
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2015
Note
Consolidated
2015
$
2014
$
Cash flows from operating activities
Interest received
Research and development concession refund
JV management fee income
Payments to suppliers and employees
Net cash flows (used in) operating activities
21(c)
Cash flows from investing activities
Payments for bonds and security deposits
Proceeds on redemption of bonds and
security deposits
Payments on acquisition of equity investments
Funds provided by JV partner under
Farm-in agreement
Payments for exploration and evaluation,
including JV Farm-in spend
Proceeds on sale of property, plant and equipment
Payments to acquire property, plant and equipment
Payments made on behalf of associate
Proceeds received on reimbursement by associate
30
20,502
–
250,375
(1,188,788)
(917,911)
(23,640)
14,595
(800,000)
21,416
147,724
250,447
(942,688)
(523,101)
–
14,277
(7,980)
2,086,461
2,087,059
(2,740,369)
264,452
(954)
(296,963)
700,020
(2,261,651)
–
–
(1,237,364)
732,491
Net cash flows (used in) investing activities
(796,398)
(673,168)
Cash flows from financing activities
Proceeds from the issue of shares and options
Share issue costs
Net cash flows from financing activities
14
2,567,500
(272,842)
2,294,658
323,733
(121,980)
201,753
Net increase/(decrease) in cash and cash equivalents
580,349
(994,516)
Cash and cash equivalents at the beginning
of the financial year
Cash and cash equivalents at the end
of the financial year
21(a)
21(a)
527,372
1,521,888
1,107,721
527,372
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2015 41
Notes to the Financial Statements
For the Year Ended 30 June 2015
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 2015 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 2015, 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 2015. 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.
Going Concern Basis for Preparation of Financial Statements
The financial statements have been prepared on the going concern basis which contemplates the continuity
of normal business activities and the realisation of assets and discharge of liabilities in the normal course of
business. The ability of the Group to continue to adopt the going concern assumption will depend on future
successful capital raisings, the successful exploration and subsequent exploitation of the Group’s tenements
and/or sale of non-core assets.
As at 30 June 2015 the Group has cash assets of $1,107,721, and total current liabilities at that date
amounting to $616,596. The loss for the 2015 financial year was $4,545,251 of which $2,996,328 related to
the write off of previously capitalised exploration costs and $630,691 to the Group’s share of the net loss of its
Associate. Operating cash outflows for the year were $917,911. During the year to 30 June 2015 the Company
successfully raised $2,294,658 (net of costs) and will be required to raise additional funds in order to meet its
budgeted expenditure.
The Group’s operations in Mt Isa North Queensland, pursuant to the farm-in arrangement with Pan Pacific
and Mitsui are fully funded until 31 March 2016 at which point Pan Pacific and Mitsui will have earned a
51% joint venture interest in the farm-in assets.
The Group continues to engage with potential partners to fund the advance of the Mt Coolon gold project,
Mt Morgans copper-gold project and the Milo IOCG project, and the Group retains a 26.7% interest in its
Associate Angka Alamjaya Sdn Bhd that is currently in the process of listing on the Singapore Securities
Exchange.
In addition the Group has implemented a number of cost reduction strategies which include, following a period
of reduced director remuneration, the cessation of the payment of director remuneration from 1 October 2015
until such time as the Board considers that sufficient cash resources are available.
The Directors will continue to manage the Group’s activities with due regard to current and future funding
requirements.The directors reasonably expect that the Company will be able to raise sufficient capital to fund
the Group’s exploration and working capital requirements, and that the Group will be able to settle debts as
and when they become due and payable. On this basis the Directors are therefore of the opinion that the use
of the going concern basis is appropriate in the circumstances.
Should the Company be unable to raise the required funding, there is a material uncertainty that may cast
significant doubt on whether the company will be able to continue as a going concern and therefore, whether
it will be able to realise its assets and extinguish its liabilities in the normal course of business and at the
amounts stated in the financial report.
42 GBM Resources Annual Report 2015
1. Statement of Significant Accounting Policies (continued)
b) Statement of Compliance
The financial report was authorised for issue on 29 September 2015.
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.
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.
GBM Resources Annual Report 2015 43
Notes to the Financial Statements
For the Year Ended 30 June 2015
1. Statement of Significant Accounting Policies (continued)
e)
Income Tax (continued)
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.
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.
44 GBM Resources Annual Report 2015
1. Statement of Significant Accounting Policies (continued)
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:
Property and improvements
10-40 years
Office furniture and equipment
2.5-20 years
Plant and equipment
Motor Vehicles
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.
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.
GBM Resources Annual Report 2015 45
Notes to the Financial Statements
For the Year Ended 30 June 2015
1. Statement of Significant Accounting Policies (continued)
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.
v) Investment in Associated Entities
The Group’s investment in its associate is accounted for using the equity method of accounting in the
consolidated financial statements, after initially being recognised at cost. The associate is an entity in which the
Group has significant influence and which is neither a subsidiary nor a joint venture. Significant influence is the
power to participate in the financial and operating decisions of the investee but is not control or joint control
over those policies.
Under the equity method, the investment in the associate is carried in the consolidated statement of financial
position at cost plus post-acquisition changes in the Group’s share of net assets of the associate. Goodwill
relating to an associate is included in the carrying amount of the investment and is not amortised.
46 GBM Resources Annual Report 2015
1. Statement of Significant Accounting Policies (continued)
l)
Investments and Other Financial Assets (continued)
v) Investment in Associated Entities (continued)
After application of the equity method, the Group determines whether it is necessary to recognise any
additional impairment loss with respect to the Group’s net investment in the associate.
Goodwill included in the carrying amount of the investment in an associate is not tested separately; rather
the entire carrying amount of the investment is tested for impairment as a single asset. If an impairment is
recognised, the amount is not allocated to the goodwill of the associate.
The consolidated statement of comprehensive income reflects the Group’s share of the results of operations
of the associate, and its share of post-acquisition movements in reserves is recognised in reserves. The
cumulative post-acquisition movements are adjusted against the carrying amount of the investment.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any
unsecured long-term receivable and loans, the Group does not recognise further losses, unless it has incurred
obligations or made payments on behalf of the associate.
Upon disposal of an associate that results in the Group losing significant influence over that associate, any
retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial
recognition as a financial asset in accordance with AASB 139. The difference between the previous carrying
amount of the associate attributable to the retained interest and its fair value is included in the determination
of the gain or loss on disposal of the associate. In addition, the Group accounts for all amounts previously
recognised in other comprehensive income in relation to that associate on the same basis as would be required
if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously
recognised in other comprehensive income by that associate would be reclassified to profit or loss on disposal
of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a
reclassification adjustment) when it loses significant influence over that associate.
When a Group entity transacts with its associate, profits and losses resulting from those transactions with the
associate are recognised in the Group’s consolidated financial statements only to the extent of interests in the
associate that are not related to the Group.
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) the rights to tenure of the area of interest are current; and (ii) at least one of the following conditions is also met:
a)
b)
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
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.
GBM Resources Annual Report 2015 47
Notes to the Financial Statements
For the Year Ended 30 June 2015
1. Statement of Significant Accounting Policies (continued)
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.
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.
48 GBM Resources Annual Report 2015
1. Statement of Significant Accounting Policies (continued)
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.
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.
GBM Resources Annual Report 2015 49
Notes to the Financial Statements
For the Year Ended 30 June 2015
1. Statement of Significant Accounting Policies (continued)
u) Business combinations
The acquisition method of accounting is used to account for all business combinations, including business
combinations involving entities or business under common control, regardless of whether equity instruments
or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the
fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The
consideration transferred also includes the fair value of any contingent consideration arrangement and the fair
value of any pre-existing equity interest in the subsidiary. Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with
limited exceptions, measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition
basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-
controlling interest’s proportionate share of the acquiree’s net identifiable assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the
acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share
of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of
the net identifiable assets of the subsidiary acquired and the measurement of all amounts has been reviewed,
the difference is recognised directly in profit or loss as a bargain purchase.
Where a business combination is achieved in stages, the Group’s previously held equity interest in the acquiree
is remeasured to fair value at the acquisition date (i.e. the date when the Group attains control) and the
resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior
to the acquisition date that have previously been recognised in other comprehensive income are reclassified
to profit or loss where such treatment would be appropriate if that interest were disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which
the combination occurs, the Group reports provisional amounts for the items for which the accounting is
incomplete. These provisional amounts are adjusted during the measurement period (see above), or additional
assets or liabilities recognised, to reflect new information obtained about facts and circumstances that existed
as of the acquisition date that, if known, would have affected the amounts recognised as of that date.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are
discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental
borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier
under comparable terms and conditions.
Where the consideration transferred by the Group in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured at
its acquisition-date fair value. Changes in the fair value of the contingent consideration that qualify as
measurement period adjustments are adjusted retrospectively, with corresponding adjustments against
goodwill. Measurement period adjustments are adjustments that arise from additional information obtained
during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and
circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair value of contingent consideration that do not qualify as
measurement period adjustments depends on how the contingent consideration is classified. Contingent
consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent
settlement is accounted for within equity. Contingent consideration that is classified as an asset or liability
is remeasured at subsequent reporting dates in accordance with AASB 139, or AASB 137 ‘Provisions,
Contingent Liabilities and Contingent Assets’, as appropriate, with the corresponding gain or loss being
recognised in profit or loss.
v) Non-current assets (or disposal groups) held for sale
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use. This condition is regarded as met
only when the asset (or disposal group) is available for immediate sale in its present condition subject only
to terms that are usual and customary for sales for such asset (or disposal groups) and the sale is highly
probable. Management must be committed to the sale, which should be expected to qualify for recognition
as a complete sale within one year from the date of classification.
50 GBM Resources Annual Report 2015
1. Statement of Significant Accounting Policies (continued)
v) Non-current assets (or disposal groups) held for sale (continued)
When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and
liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless
of whether the Group will retain a non-controlling interest om it former subsidiary, after the sale.
When the Group is committed to a sale plan involving disposal of an investment, or a portion of an investment,
in an associate or joint venture, the investment or the portion of the investment that will be disposed of is
classified as held for sale when the criteria described above are met, and the Group discontinues the use of the
equity method in relation to the portion that is classified as held for sale. Any retained portion of an investment
in an associate or joint venture that has not been classified as held for sale continues to be accounted for using
the equity method. The Group discontinues the use of the equity method at the time of disposal when the
disposal results in the Group losing significant influence over the associate or joint venture.
After the disposal takes place, the Group accounts for any retained interest in the associate or joint venture
in accordance with AASB 139 unless the retained interest continues to be an associate or a joint venture, in
which case the Group uses the equity method.
Non-current assets (and disposal groups) are classified as held for sale and measured at the lower of their
carrying amount and fair value less costs to sell.
w) Provision for restoration and rehabilitation
A provision for restoration and rehabilitation is recognised when there is a present obligation as a result of
development activities undertaken, it is probable that an outflow of economic benefits will be required to settle
the obligation, and the amount of the provision can be measured reliably. The estimated future obligations
include the costs of abandoning sites, removing facilities and restoring the affected areas.
The provision for future restoration costs is the best estimate of the present value of the expenditure required
to settle the restoration obligation at the balance date. Future restoration costs are reviewed annually and any
changes in the estimate are reflected in the present value of the restoration provision at each balance date.
The initial estimate of the restoration and rehabilitation provision is capitalised into the cost of the related asset
and amortised on the same basis as the related asset, unless the present obligation arises from the production
of inventory in the period, in which case the amount is included in the cost of production for the period.
Changes in the estimate of the provision for restoration and rehabilitation are treated in the same manner,
except that the unwinding of the effect of discounting on the provision is recognised as a finance cost rather
than being capitalised into the cost of the related asset.
x) Parent entity financial information
The financial information for the parent entity, HLB Limited, disclosed in Note 31 has been prepared on the
same basis as the consolidated financial statements, except as set out below.
Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the parent entity’s
financial statements. Dividends received from associates are recognised in the parent entity’s profit or loss,
rather than being deducted from the carrying amount of these investments.
y) 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 continuing to carry forward 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.
GBM Resources Annual Report 2015 51
Notes to the Financial Statements
For the Year Ended 30 June 2015
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 19 – 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).
52 GBM Resources Annual Report 2015
3. Revenue
Gain on disposal of assets
Interest income
Joint venture management fee
Other income
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:
Property and improvements
Office equipment and software
Site equipment
Motor vehicles
Exploration costs:
Unallocated exploration costs
Exploration costs written off
Note
10
10
10
10
9
Consolidated
2015
$
14,452
21,194
250,375
1,372
287,393
2014
$
–
23,022
250,447
–
273,469
1,267,405
4,000
120,515
70,530
1,462,450
(1,051,585)
1,264,570
102,000
116,359
17,543
1,500,472
(1,184,659)
410,865
315,813
3,667
11,834
5,239
17,452
38,192
120,977
2,875,351
2,996,328
–
18,027
2,083
16,329
36,439
121,118
3,389,469
3,510,587
GBM Resources Annual Report 2015 53
Notes to the Financial Statements
For the Year Ended 30 June 2015
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
(4,545,251)
(6,680,236)
Consolidated
2015
$
2014
$
Income tax benefit calculated at 30%
Share based payments
Share of net loss of equity accounted associate
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
(1,363,575)
–
189,207
(63,578)
862,605
375,341
–
(2,004,071)
120,000
662,540
(58,908)
1,016,841
263,598
(147,724)
–
(147,724)
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.
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
Provisions
Unrecognised deferred tax liabilities relate to:
Exploration expenditure
Net unrecognised deferred tax asset
6,348,935
96,473
23,054
118,816
6,587,278
5,718,137
78,199
35,960
–
5,832,296
(3,106,684)
(3,170,866)
3,480,594
2,661,430
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)
ii)
iii)
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;
the Group companies continue to comply with the conditions for deductibility imposed by the law; and
no changes in tax legislation adversely affect the Group in realising the benefits.
54 GBM Resources Annual Report 2015
6. Loss Per Share
Loss used in calculation of loss per share
(4,545,251)
(6,680,236)
Consolidated
2015
$
2014
$
Basic loss per share
Weighted average number of shares used
in the calculation of earnings per share
Cents
Cents
(0.9)
#
(1.8)
#
487,748,368
375,696,184
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.
7. Trade and Other Receivables
Current
Amounts due from farm-in partner
Amounts due from Associate (Note 25)
GST recoverable
Other debtors
Non-current
Security and environmental bonds1
Consolidated
2015
$
–
101,816
20,882
957
123,655
411,857
411,857
2014
$
29,932
504,873
36,138
–
570,943
30,936
30,936
1 Included in non-current assets at 30 June 2015 is an amount of $371,183 in respect of security deposits paid
to the Queensland State Government in respect of the exploration licences and mining leases recognised on
acquisition of Mt Coolon Gold Mines Pty Ltd (refer Note 30).
8. Assets Held for Sale
Land reclassified as held for sale
Reconciliation:
Balance at the start of the financial year
Reclassified from non-current assets
Impairment charge
Sale of asset
Balance at the end of the financial year
–
308,499
308,499
–
(58,499)
(250,000)
–
–
308,499
–
–
308,499
During the 2014 financial year the Board made the decision to dispose of the freehold land held at its Malmsbury
Gold Project in Victoria. The carrying value of $308,499 was reclassified from non-current assets (property, plant
and equipment) to current assets, (assets held for sale).
During the 2015 financial year the Company recognised an impairment charge of $58,499 in respect of the
reclassified asset to its estimated recoverable value of $250,000 at the time of this assessment. The sale of the
property was completed prior to 30 June 2015. The total proceeds received upon settlement were $264,452,
the profit on sale is therefore $14,452, after taking into account the previous impairment charge of $58,499.
GBM Resources Annual Report 2015 55
Notes to the Financial Statements
For the Year Ended 30 June 2015
9. Exploration and Evaluation Expenditure
Exploration and evaluation phase:
Capitalised costs at the start of the financial year
Fair value of exploration costs recognised on
acquisition of Mt Coolon Gold Mines Pty Ltd (Note 30)
Costs capitalised during the financial year
Capitalised costs written off during the
financial year (Note 4)
Note
Consolidated
2015
$
2014
$
10,569,552
13,740,089
1,880,984
780,428
–
218,932
(2,875,351)
(3,389,469)
Capitalised costs at the end of the financial year
10,355,613
10,569,552
Ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on successful
development and commercial exploitation or alternatively, sale of the respective areas.
10. Property, Plant and Equipment
Carrying values at 30 june:
Property and improvements:
Cost
Depreciation
Office equipment and software:
Cost
Depreciation
Site equipment and plant:
Cost
Depreciation
Motor vehicles:
Cost
Depreciation
Total
Reconciliation of movements:
Land:
Opening net book value
Transferred to assets held for sale
Closing net book value
Property and improvements:
Opening net book value
Net book value of assets recognised on
acquisition of Mt Coolon Gold Mines Pty Ltd
Depreciation
Closing net book value
56 GBM Resources Annual Report 2015
8
30
4
193,117
(104,989)
88,128
172,211
(164,031)
8,180
221,124
(170,015)
51,109
161,638
(103,884)
57,754
205,171
–
–
–
–
91,795
(3,667)
88,128
–
–
–
153,402
(141,114)
12,288
22,545
(8,883)
13,662
130,633
(56,550)
74,083
100,033
308,499
(308,499)
–
–
–
–
–
Note
Consolidated
2015
$
2014
$
10. Property, Plant and Equipment (continued)
Reconciliation of movements: (continued)
Office equipment and software:
Opening net book value
Net book value of assets recognised on
acquisition of Mt Coolon Gold Mines Pty Ltd
Cost of additions
Depreciation
Closing net book value
Site equipment and plant:
Opening net book value
Net book value of assets recognised on acquisition
of Mt Coolon Gold Mines Pty Ltd
Depreciation
Closing net book value
Motor vehicles:
Opening net book value
Net book value of assets recognised on acquisition
of Mt Coolon Gold Mines Pty Ltd
Depreciation
Closing net book value
Total
30
4
30
4
30
4
12,288
6,772
954
(11,834)
8,180
13,662
42,686
(5,239)
51,109
30,315
–
–
(18,027)
12,288
15,745
–
(2,083)
13,662
74,083
90,412
1,123
(17,452)
57,754
205,171
–
(16,329)
74,083
100,033
11. Investments Accounted for
Using the Equity Method
a) Carrying value of investments
Associated companies
b) Details of associated companies
–
630,691
Ownership Interest
Carrying Amount
of investment
Name
Angka Alamjaya
Sdn Bhd (AASB)
Country of
Incorporation
Shares
30 june
2015
%
30 June
2014
%
30 june
2015
$
30 June
2014
$
Malaysia
Ord
26.7%
40%
–
630,691
During the comparative period the Company acquired a 40% interest in the ordinary share capital of Angka Alamjaya
Sdn Bhd (AASB), a Malaysian company that holds the mining concession for the Lubuk Mandi Gold Project in
Malaysia. Consideration for the acquisition was 57,779,118 fully paid GBM Resources Ltd shares at a fair value
of 4.9 cents per share (Note 24).
During the current period, AASB issued further shares (to shareholders other than GBM) which has resulted in
GBM’s interest in AASB reducing to 26.7%. GBM has no contracted or other obligation to fund the operations of
AASB, and therefore recognises its share of the losses of AASB to the extent of its initial investment in AASB only.
GBM Resources Annual Report 2015 57
Notes to the Financial Statements
For the Year Ended 30 June 2015
Note
Consolidated
2015
$
2014
$
11. Investments Accounted for
Using the Equity Method (continued)
c)
Movements during the period in equity accounted
investments in associated companies
Balance at the beginning of the financial period
Initial investment in AASB during the period – issue of
57,779,118 ordinary fully paid shares @ 4.9 cents per share
Share of AASB loss after tax for the financial period
Other movements for the financial period1
14
630,691
–
(630,691)
–
–
2,831,177
(2,208,466)
7,980
Balance at the end of the financial period
–
630,691
1 Other costs for the financial period relate to costs
associated with the acquisition of the initial 40% interest
in the share capital of Angka Alamjaya Sdn Bhd (AASB).
d)
Associate’s summarised statement
of comprehensive income
Revenue
Loss from continuing operations
Other comprehensive income for the period
Total comprehensive loss for the period
e) Associate’s summarised assets and liabilities
Current assets
Non-current assets
Current liabilities
Non-current liabilities1
Net assets
–
(1,966,749)
–
–
(1,001,584)
–
(1,966,749)
(1,001,584)
2,213,589
13,305,168
(2,495,874)
(8,595,572)
2,267,480
5,956,287
(1,661,466)
(4,985,573)
4,427,311
1,576,728
1 Note, non-current liabilities include convertible debt funding of $8,595,572 (2014: $4,985,573).
f) Reconciliation of the above summarised financial information
to the carrying amount of the investment in Associate
recognised in the consolidated financial statements
Net assets of Associate
Other changes in net assets of Associate1
Proportion of Group’s ownership interest in Associate
Carrying amount of the Group’s ownership interest in Associate
4,427,311
(4,427,311)
26.7%
–
1,576,728
–
40%
630,691
1 Note, the Company’s Associate issued shares during the financial year for project acquisition and fund raising
purposes, resulting in an increase in its net assets. The Company has not recognised an increase in the carrying
value of its investment in its Associate in respect of these changes.
58 GBM Resources Annual Report 2015
12. Trade and Other Payables
Current
Acquisition costs payable1
Unspent farm-in contribution liability2
Trade creditors
Sundry creditors and accruals
Employee leave liabilities
1 Acquisition costs payable to Drummond Gold Limited
pursuant to the acquisition of Mt Coolon Gold Mines
Pty Ltd (Note 30).
2 Liability recognised for farm-in contributions received
by the Company prior to the end of the financial year
for which corresponding project costs had not yet been
incurred at that date.
13. Provisions
Non-current
Rehabilitation provision1
Note
30
Consolidated
2015
$
50,000
216,129
232,093
41,527
76,847
616,596
2014
$
–
–
290,049
101,149
54,868
446,066
30
396,054
–
1 A provision for rehabilitation was recognised during the 2015 financial year on acquisition of Mt Coolon Gold Mines
Pty Ltd (Note 30).
Issue
price
2015
No.
2014
No.
2015
$
2014
$
14. Issued Capital
Issued capital at the balance date
557,894,121 385,194,121
27,372,099
23,927,441
Movements in issued capital:
On issue at the start of the year
Shares issued to acquire interest
in AASB (Note 11)
Share placement
Share placement
Shares issued to acquire interest in
Mt Coolon Gold Mines Pty Ltd
(Note 30)
Share issue costs
On issue at the end of the
reporting year
385,194,121 327,415,003
23,927,441
21,118,244
$0.049
$0.02
$0.025
–
100,000,000
22,700,000
57,779,118
–
–
–
2,000,000
567,500
2,831,177
–
–
$0.023
50,000,000
–
–
–
1,150,000
(272,842)
–
(21,980)
557,894,121 385,194,121
27,372,099
23,927,441
Shares Subject to Restriction Agreement
At balance date there were no ordinary shares subject to any restrictions.
GBM Resources Annual Report 2015 59
Notes to the Financial Statements
For the Year Ended 30 June 2015
15. Options and Performance Rights
Details of the Company’s Incentive Option Scheme are provided at Note 17.
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 16)
Options issued pursuant to priority entitlement offer
Options issued attaching to share placement1
2015
No.
2014
No.
177,746,562
134,746,562
134,746,562
–
–
43,000,000
–
20,000,000
64,746,562
50,000,000
Options on issue at the end of the reporting year
177,746,562
134,746,562
1 Options exercisable at 3.5 cents each and expiring 30 June 2016
issued as attaching securities to share placements.
i) Options Issued, Exercised and Expired During the Year
During the financial year the Company issued and granted 43,000,000 options over unissued shares
(2014: 134,746,562), which attached to the placement shares.
During the year, no options over unissued shares were exercised (2014: Nil).
During the year, no options were cancelled on expiry of their exercise term (2014: Nil).
ii) Options on Issue at the Balance Date
The number of options outstanding over unissued ordinary shares at 30 June 2015 is 177,746,562
(2014: 134,746,562).
iii) Subsequent to the Balance Date
No options have been issued, exercised or cancelled between the end of the financial year and the date
of this report.
iv) Basis and assumptions used in the valuation of options granted in the period
Options issued during the financial year were issued as free attaching securities to a share placement
and no fair value attributed to them in this financial report.
b) Performance Share Rights
Details of the Company’s Performance Rights Plan are provided at Note 17.
i) Performance share rights Issued, Exercised and Expired during the Year
During the financial year the Company granted nil performance share rights (2014: nil).
During the year, no vested share rights were exercised into ordinary fully paid shares (2014: nil).
No unvested performance share rights were cancelled on cessation of employment (2014: nil).
ii) Performance share rights on Issue at the Balance Date
The number of share rights, vested unexercised and un-vested at 30 June 2015 is nil (2014: nil).
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.
60 GBM Resources Annual Report 2015
16. Reserves and Accumulated Losses
Share based payments reserve(i)
Opening balance
Share based payments – options issued for corporate services (Note 15)
Closing balance
Option reserve(ii)
Opening balance
Options issued pursuant to priority entitlement offer (Note 15)
Closing balance
Accumulated losses
Opening balance
Net loss attributable to the members of the Company
Closing balance
Consolidated
2015
$
400,000
–
400,000
323,733
–
323,733
2014
$
–
400,000
400,000
–
323,733
323,733
(12,359,214)
(4,545,251)
(5,678,978)
(6,680,236)
(16,904,465)
(12,359,214)
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.
17. Employee Benefits
Details of the Company’s performance right and share option plans, under which performance 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 the Remuneration Report that forms part of the Directors’ Report.
Incentive Option Plan
The Company has a formal option plan for the issue of options to employees, directors and consultants, which
was last 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 2015 (2014: nil). Refer to Note 15(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 no share rights on issue under the Performance Rights Plan at 30 June 2015 (2014: nil). Refer to Note 15(b).
GBM Resources Annual Report 2015 61
Notes to the Financial Statements
For the Year Ended 30 June 2015
18. 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 activity is mineral exploration and resource development within Australia, and mineral exploration and
resource development in Malaysia (via the investment in an associate).
The reportable segments are represented as follows:
30 june 2015
Revenue
Joint venture management fee
Total segment revenue
Australia
$
Malaysia
$
Consolidated
$
250,375
250,375
–
–
250,375
250,375
Segment net operating loss after tax
(3,914,560)
(630,691)
(4,545,251)
Other revenue – unallocated
Share of loss of associates and joint ventures
Depreciation
Exploration expenditure written off and expensed
Segment assets
Capital expenditure during period
Investment in acquisition of subsidiary
Segment liabilities
Segment non-current assets
30 june 2014
Revenue
Joint venture management fee
Total segment revenue
–
–
(38,192)
(2,996,328)
12,204,017
954
2,000,000
(1,012,650)
10,972,641
250,447
250,447
–
(630,691)
–
–
37,018
(630,691)
(38,192)
(2,996,328)
–
–
–
–
–
–
–
12,204,017
954
2,000,000
(1,012,650)
10,972,641
250,447
250,447
Segment net operating loss after tax
(4,471,770)
(2,208,466)
(6,680,236)
Other revenue – unallocated
Share of loss of associates and joint ventures
Depreciation
Exploration expenditure written off and expensed
Income tax benefit
–
–
(36,439)
(3,510,587)
147,724
–
(2,208,466)
–
–
–
23,022
(2,208,466)
(36,439)
(3,510,587)
147,724
Segment assets
12,107,335
630,691
12,738,026
Capital expenditure during period
Segment liabilities
218,932
446,066
–
–
218,932
446,066
Segment non-current assets
10,700,521
630,691
11,331,212
62 GBM Resources Annual Report 2015
19. 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, other
than the recording of an impairment charge of $58,499 in relation to the asset held for sale (Note 8).
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).
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 2015
Trade and other payables 616,596
616,596
616,596
616,596
616,596
616,596
30 june 2014
Trade and other payables 290,049
290,049
290,049
290,049
290,049
290,049
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
The Group does not have any interest bearing liabilities to report a weighted average interest rate.
Interest rate risk
At the reporting date the interest profile of the Group’s interest-bearing financial instruments were:
Fixed rate instruments:
Financial liabilities
variable rate instruments:
Financial assets
Consolidated
2015
$
–
–
1,107,721
1,107,721
2014
$
–
–
527,372
527,372
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.
GBM Resources Annual Report 2015 63
Notes to the Financial Statements
For the Year Ended 30 June 2015
19. Financial Instruments (continued)
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
$
11,077
(11,077)
11,077
(11,077)
5,274
(5,274)
5,274
(5,274)
30 june 2015
Variable rate instruments
30 june 2014
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.
20. 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.
Minimum expenditure requirements for the following 12 months on the Group’s exploration licences as at
30 June 2015, including licences subject to farm-in arrangements are approximately $2,886,800 (2014: $1,756,500).
b) Operating Lease Commitments
The Group has no operating lease commitments.
c) Contractual Commitment
The Group has no contractual commitments.
21. Notes to the Statement of Cash Flows
a) Cash and cash equivalents
Cash at bank and on hand
Bank at call cash account
Total cash and cash equivalents
Consolidated
2015
$
1,007,721
100,000
1,107,721
2014
$
438,765
88,607
527,372
The Bank at call account holds funds at call subject to certain trading restrictions and pays interest at an average
of 3.30% (2014:3.30%), and matures on 24 September 2015.
64 GBM Resources Annual Report 2015
21. Notes to the Statement of Cash Flows (continued)
b) Cash balances not available for use
Included in cash and cash equivalents are amounts pledged
as guarantees for the following:
Corporate credit card facility
100,000
88,607
Consolidated
2015
$
2014
$
Also included in cash and cash equivalents as at 30 June 2015 are
amounts of $216,129 (2014: nil) in respect of funds received from the
Company’s farm-in partner and for which costs had not been incurred
at that date. This amounts has been recognised as a liability
as at 30 June 2015 (Note 12).
c)
Reconciliation of Loss from Ordinary Activities after
Income Tax to Net Cash used In Operating Activities
Profit/(Loss) after income tax
Add (less) non‑cash items:
Gain on sale of assets
Impairment charge
Depreciation
Share based payments
Exploration expenditure written off and expensed
Share of net loss of equity accounted associate
Changes in assets and liabilities:
Increase/(decrease) in trade creditors and accruals
(Increase)/decrease in sundry receivables
Net cash flow from operations
Material non‑cash transactions
(4,545,251)
(6,680,236)
(14,452)
58,499
38,192
–
2,996,328
630,691
(84,338)
2,420
–
–
36,439
400,000
3,510,587
2,208,466
(295)
1,938
(917,911)
(523,101)
2015
During the 2015 financial year the Company issued 50,000,000 ordinary fully paid shares at a fair value of 2.3 cents
per share to Drummond Gold Limited as part consideration for the acquisition of a 100% interest in the issued
capital of Mt Coolon Gold Mines Pty Ltd.
2014
During the 2014 financial year the Company completed the following material non-cash settled transactions:
•
•
Issued 20,000,000 listed GBZO options, exercisable at 3.5 cents each and expiring 30 June 2016,
in consideration for corporate advisory and public relations services. The fair value of the options issued
amounted to $400,000.
Issued 57,779,118 ordinary fully paid shares to nominees of Angka Alamjaya Sdn Bhd (AASB) for a 40% interest
in the issued capital of AASB, a Company which holds the mining concession for the Lubuk Mandi Gold Project
in Malaysia. The fair value of the shares issued amounted to $2,831,177 (Note 11).
22. Auditor’s Remuneration
Amounts received or receivable by HLB Mann Judd for:
– Audit and review of financial reports
29,000
30,100
GBM Resources Annual Report 2015 65
Notes to the Financial Statements
For the Year Ended 30 June 2015
23. 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
Mt Coolon Gold Mines 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
Mt Coolon Gold Mines Pty Ltd
Bungalien Phosphate Pty Ltd
During the 2015 financial year, the Company acquired a 100% interest
in the issued capital of Mt Coolon Gold Mines Pty Ltd for consideration
of $850,000 cash plus 50,000,000 ordinary fully paid shares.
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
Mt Coolon Gold Mines Pty Ltd
Bungalien Phosphate Pty Ltd
d) Contribution to Consolidated Result
GBM Resources Limited
Belltopper Hill Pty Ltd1
Syndicated Resources Pty Ltd
Willaura Minerals Pty Ltd
Isa Brightlands Pty Ltd1
Isa Tenements Pty Ltd1
Mt Coolon Gold Mines Pty Ltd
Bungalien Phosphate Pty Ltd
2015
%
2014
%
100
100
100
100
100
100
100
$
596,850
100
–
1
1
2,000,000
10
2,596,962
2,241,115
–
–
7,741,121
1,577,361
164,606
–
(1,676,101)
–
–
–
(2,650,531)
(209,036)
(9,583)
–
100
100
100
100
100
100
–
$
596,850
100
–
1
1
10
596,962
2,288,211
–
–
7,672,176
1,368,324
–
–
(3,968,535)
(1,254,868)
–
–
(88,514)
(1,368,319)
–
–
Total
(4,545,251)
(6,680,236)
1 Contribution to net result by subsidiary companies relates to previously
capitalised exploration costs written off during the financial year.
66 GBM Resources Annual Report 2015
24. 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 (resigned 5 August 2014)
Guan Huat Loh – Non-Executive Director (resigned 5 August 2014)
Chiau Woei Lim – Non-Executive Director
Hun Seng Tan – Non-Executive Director (appointed 15 April 2015)
Frank Cannavo – Non-Executive Director (15 April 2015 to current)
Executive Directors
Peter Thompson – Managing Director/Executive Chairman
Neil Norris – Exploration Director
Frank Cannavo – Executive Director (appointed 5 August 2014 to 15 April 2015)
Total remuneration paid to key management personnel during the year:
Short-term benefits
Post-employment benefits
Consolidated
2015
$
2014
$
554,241
48,365
602,606
504,469
38,150
542,619
b) Other Transactions and Balances with key Management Personnel
During the 2014 financial year the Company issued 57,779,118 ordinary fully paid shares to nominees of Angka
Alamjaya Sdn Bhd (AASB) to acquire a 40% interest in the issued capital of AASB, a Company associated with
Mr Chiau Woei Lim. As a nominee of AASB, Mr Lim received 24,077,285 shares in GBM Resources. Mr Lim is a
shareholder and director of AASB. The fair value of shares issued to nominees of AASB to acquire the 40% interest
was $2,831,177 (Note 11).
Other than the above, there are no transactions with Directors, or Director related entities or associates, other than
those reported in Note 25.
25. Related Party Transactions
Total amounts receivable and payable from entities in the wholly-owned
group (see Note 23 for details of controlled entities) at balance date:
Non-Current Receivables
Loans to controlled entities
Non-Current Payables
Loans from controlled entities
11,724,203
11,268,711
–
–
Transactions with Associate – Angka Alamjaya Sdn Bhd (AASB)
During the financial year the Company incurred costs of $296,963 (2014: $1,237,364) in respect of AASB’s
operations on a reimbursable basis. As at 30 June 2015 an amount of $700,020 (2014: $732,491) has been
reimbursed to the Company, and an amount of $101,816 (2014: $504,873) is outstanding as at 30 June 2015
(Note 7).
GBM Resources Annual Report 2015 67
Notes to the Financial Statements
For the Year Ended 30 June 2015
26. 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 30 July 2015 the Company accepted the resignation of Mr Chiau Woei Lim as a director of the Company.
27. Dividends
There are no dividends paid or payable during the year ended 30 June 2015 or the 30 June 2014 comparative year.
28. Contingencies
i) Contingent liabilities
There were no material contingent liabilities not provided for in the financial statements of the Group
as at 30 June 2015 or 30 June 2014.
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 2015 or 30 June 2014.
29. Prior Period Adjustment – Investment in Associate
The share of the net loss of, and carrying value of the investment in, the Company’s associate, which is accounted
for using the equity method (refer Note 7) has been re-stated in these financial statements for the comparative
period ended 30 June 2014.
The amounts re-stated are as follows:
Original
Comparative Amount
Re-stated
Comparative Amounts
Share of net associate loss for the year ended 30 June 2014
$(400,634)
$(2,208,466)
Carrying value of investment in associate as at 30 June 2014
$2,438,523
$630,691
Accumulated losses at 30 June 2014
$(10,551,382)
$(12,359,214)
The amounts stated in the interim financial statements for the 12 months ended 30 June 2014 were prepared
on the basis of financial information provided by the Company’s associate, Angka Alamjaya Sdn Bhd (AASB).
Audited financial statements for AASB for the period ended 31 December 2013 were signed on 21 January
2015. The Company noted a material difference between the original financial information provided by AASB and
that presented in the audited financial statements, and has accordingly reflected a correction to the comparative
amounts in the current financial statements. The difference in the share of loss to be recognised is as a result of
a change in accounting treatment of a number of significant items plus the identification of additional expenses
incurred prior to the 30 June 2014.
68 GBM Resources Annual Report 2015
30. Acquisition of Subsidiary – Mt Coolon Gold Mines Pty Ltd
During the 2015 financial year the Company completed the acquisition of the issued capital of Mt Coolon Gold
Mines Pty Ltd from Drummond Gold for the total consideration of $850,000 plus 50,000,000 ordinary fully paid
shares. The acquisition has been accounted for as an asset acquisition rather than a business combination.
Consideration
The fair value of consideration provided for the acquisition was:
Details
Cash payable
Shares transferred
Total Consideration Payable
$850,000
50 million shares at fair
value of 2.3 cents per share1
Fair Value ($)
$850,000
$1,150,000
$2,000,000
1 The fair value of the shares was determined as the listed share price of the Company’s shares as at 10 April 2015,
being the trading day prior to completion of the transaction.
At the date of this report an amount of $50,000 was payable to Drummond Gold Limited pursuant to the
transactions pending completion of administrative matters (Note 12).
Acquisition related costs
Costs incurred by the Company in relation to the acquisition of Mt Coolong Gold Mines Pty Ltd amounting to
$84,963 have been included as an expense in the Statement of Profit or Loss and Other Comprehensive Income.
As the acquisition is being reinstated for as an asset acquisition, the Company was entitled to capitalise these costs,
however has resolved to expense them.
Identifiable assets acquired and liabilities assumed
The following table sets out the recognised amounts of assets acquired
and liabilities assumed at the acquisition date:
Security Deposits (Note 7)
Other receivables
Property, plant and equipment(i)
Capitalised exploration costs (Note 9)
Rehabilitation provision (Note 13)
Total net assets acquired
$
371,183
1,511
142,376
1,880,984
(396,054)
2,000,000
i) Included in the identifiable property, plant and equipment assets are the
following specific net book values (Note 10):
Property and improvements
Office equipment and software
Site equipment and plant
Motor vehicles
Total property, plant and equipment
Statement of Cash Flows
Total cash consideration
Less: amount payable (Note 12)
Total cash paid
$
91,795
6,772
42,686
1,123
142,376
$
850,000
(50,000)
800,000
GBM Resources Annual Report 2015 69
Notes to the Financial Statements
For the Year Ended 30 June 2015
31. 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 28.
Commitments
For full details of commitments see Note 20.
2015
$
2014
$
1,230,271
10,577,944
1,406,756
11,331,270
11,808,215
12,738,026
(616,848)
–
(616,848)
(446,066)
–
(446,066)
11,191,367
12.291.960
27,372,099
323,733
400,000
(16,904,465)
23,927,441
323,733
400,000
(12,359,214)
11,191,367
12,291,960
(4,545,251)
–
(6,680,236)
–
(4,545,251)
(6,680,236)
70 GBM Resources Annual Report 2015
Directors’ Declaration
For the Year Ended 30 June 2015
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 2015 and of its
performance for the year then ended; and
ii.
complying with Accounting Standards and Corporations Regulations 2001.
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
(c)
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 2015.
This declaration is made in accordance with a resolution of the Board of Directors.
Peter Thompson
Executive Chairman
Dated this 29th day of September 2015
GBM Resources Annual Report 2015 71
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 2015, the
consolidated statement of profit or loss and other 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 Group. The Group 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 Group’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.
72 GBM Resources Annual Report 2015
52
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 Group’s financial position as at 30 June 2015 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).
Emphasis of matter
Without qualifying our opinion, we draw attention to Note 1(a) to the financial report which indicates
that the ability of the Group to continue as a going concern is dependent on the ability to raise
sufficient capital to meet its exploration and working capital requirements. Should the Company not
be able to raise sufficient capital, there is a material uncertainty that may cast significant doubt on the
ability of the Company to continue as a going concern and, therefore, that it may be unable to realise
its assets and discharge its liabilities in the normal course of business.
Report on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended 30 June
2015. 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 2015
complies with section 300A of the Corporations Act 2001.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
29 September 2015
L Di Giallonardo
Partner
53
GBM Resources Annual Report 2015 73
ASX Additional Information
Pursuant to the Listing Rules of the Australian Securities Exchange Limited, the shareholder information set out below
was applicable as at 30 September 2015.
a. Distribution of Equity Securities
Listed Shares (GBZ)
Listed Options (GBZO)
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Number
of Holders
Securities
Held
Number
of Holders
50
75
135
461
268
989
9,657
289,467
1,188,734
19,242,467
537,163,796
2
3
3
21
84
Securities
Held
1,800
10,500
23,750
854,857
176,855,655
557,894,121
113
177,746,562
There are 322 shareholders holding less than a marketable parcel of shares.
b. Substantial Shareholders
An extract of the Company’s register of Substantial Shareholders (who hold 5% or more of the issued capital) is set
out below:
Shareholder
Drummond Gold Limited
c. Twenty Largest Shareholders
Shareholder
UOB Kay Hian Pte Ltd
Citicorp Nominees Pty Ltd
Drummond Gold Limited
HSBC Custody Nominees (Australia) Limited
Chew Leok Chuan
BNP Paribas Nominees Pty Ltd
Richgroup Holdings International Pte Ltd
Superfine Nominees Pty Ltd
RHB Securities Singapore Pte Ltd
Swift Venture Holdings Corporation
Lay Hong Lim
Cheng Ee Huang
Neil Norris
De Gracie Nominees Pty Ltd
Kevin James Hendry
KH & RL Payne
Vissing Holdings Pty Ltd
Foundation Asset Pty Ltd
Thong Kum Cheong
Ivan Perry Wu
Shares
Held
% of Issued
Capital
50,000,000
8.96%
Shares
Held
191,205,629
69,446,011
50,000,000
23,709,021
19,900,000
14,644,190
10,000,000
9,862,582
8,445,973
8,366,708
6,943,346
5,500,000
4,800,000
3,750,000
2,833,334
2,421,666
2,300,001
2,183,333
2,000,000
2,000,000
% of Issued
Capital
34.27%
12.45%
8.96%
4.25%
3.57%
2.63%
1.79%
1.77%
1.51%
1.50%
1.25%
0.99%
0.86%
0.67%
0.51%
0.43%
0.41%
0.39%
0.36%
0.36%
Total
440,311,794
78.92%
74 GBM Resources Annual Report 2015
d. Twenty Largest Option Holders
Optionholder
UOB Kay Hian
Constance Tan Cai Ai
Chew Leok Chuan
Swift Venture Holdings Corporation
KH & RL Payne
Bell Potter Nominees Limited
Sung Yoon Chon
Lay Hong Lim
Sung Yoon Chon
Alvito Capital Holdings Inc
Tan Hong Huat
Jason Separovic
Rosegate Investments Pty Ltd
JM & SM Separovic
Au Sai Chuen
Sin Yew Seng (2004) Pte Ltd
John Saunders
Timewise Holdings Pty Ltd
ABN Amro Clearing Sydney Nominees Pty Ltd
Beachstone Nominees Pty Ltd
Options
Held
29,400,000
22,400,000
10,000,000
8,900,000
7,917,286
6,702,188
6,270,500
6,108,000
5,725,000
5,615,000
4,894,000
4,800,000
3,000,000
3,000,000
2,600,000
2,500,000
2,460,709
2,350,000
2,200,000
2,150,000
% of Issued
Options
15.54%
12.60%
5.63%
5.01%
4.45%
3.77%
3.53%
3.44%
3.22%
3.16%
2.75%
2.70%
1.69%
1.69%
1.46%
1.41%
1.38%
1.32%
1.24%
1.21%
Total
138,992,683
78.20%
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.
GBM Resources Annual Report 2015 75
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76 GBM Resources Annual Report 2015
Quartz veining at Limonite Hill, Mount Morgan Project
Corporate Directory
Directors
Peter Thompson – Executive Chairman
Hun Seng Tan – Non-Executive Director
Neil Norris – Executive Director – Exploration Director
Frank Cannavo – Non-Executive Director
Auditors
HLB Mann Judd
Level 4, 130 Stirling Street
Perth WA 6000
AUSTRALIA
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
Exploration Office
10 Parker Street
PO Box 658
Castlemaine VIC 3450
AUSTRALIA
Telephone: +61 3 5470 5033
Share Registry
Advanced Share Registry Services
110 Stirling Highway
Nedlands WA 6009
AUSTRALIA
Telephone: +61 8 9389 8033
Facsimile: +61 8 9262 3723
Securities Exchange Listing
GBM Resources Limited
– shares and 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
Website and Email Address
Website: www.gbmr.com.au
Email:
admin@gbmr.com.au
GBM Resources Annual Report 2015 77
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