ABN 91 124 752 745
Annual Report
2016 Contents
Chairman’s Report
Company Snapshot – GBM Project Locations
Our Vision – Our Values – 2016 Highlights Summary
Review of Operations
Tenement Schedule
Annual Mineral Resources Statement
Sustainable Development
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
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2
3
4-20
21
22-24
25
26-32
33
34
35
36
37
38-64
65
66-67
68-69
71
Chairman’s Report
Dear Shareholders
On behalf of the Board of Directors of GBM Resources I am pleased to present you with the Company’s 2016
Annual Report.
As a board we set several key corporate and project objectives for the year with the key objective to become
a gold producer in the near-term. This objective remains on track with the progress of the Company’s flagship
Mount Coolon Gold Project.
We have increased the size, scope and viability of the Mount Coolon Gold Project over the last financial year.
The Scoping Study demonstrated positive project economics of heap leaching the oxide resource at the Eugenia
Deposit and has the potential to see the Company achieve near-term gold production with potential to generate
a strong positive cash flow and growth opportunities. Further exploration works are currently being completed
in parallel with the Eugenia Deposit with a focus on investigating development options including the potential for
near-term production from toll milling of the Koala and Glen Eva gold resources.
Exploration work completed by the Company at Mount Morgan has led to the re-classification of Mount Morgan
as a porphyry-related deep epithermal style. This follows with acquiring one of the largest-known mineralised
porphyry copper systems in eastern Australia, The Moonmera Copper-Molybdenum Project from Rio Tinto, which
lies less than 10 km away from Mount Morgan. The focus for the Company in 2017 will be around unlocking the
potential higher-grade mineralisation zones by undertaking a project wide data compilation and review.
In keeping with our strategy, the Company is also pleased to advise that the Lubuk Mandi Gold Mine in Malaysia
listed on the Singapore Exchange, and following the Joint Venture partner’s operations incorporated into a
new company, GBM now has an 11% equity interest, via its holding of 35 million ordinary shares in Anchor
Resources Limited.
We have also continued into our fifth consecutive year with an excellent record of zero harm in safety and
environment. This is a credit to our people and an indication of the Company’s committed approach to operating
in a safe, sustainable, socially and environmental responsible manner.
On behalf of the Board, I would like to thank all our shareholders, employees, contractors and suppliers who have
contributed to our success and achievements during the year.
Yours sincerely
Peter Thompson
Executive Chairman
GBM Resources Annual Report 2016
1
Company Snapshot
Figure 1: Project Location Plan.
GBM Project Locations
1. Mount Coolon Gold Mines
5. Mayfield
100% owned
Project area 773km2
Target Epithermal and IRGS Gold
Defined Resources totalling 315,000 ounces of gold
Plus additional exploration target between
120,000-230,000 ounces of gold
2. Mount Morgan
100% owned
Project area 781km2 (granted),
Target Copper-Gold Porphyry
3.
4.
Brightlands
100% owned
Project area 292km2
Defined Cu-U-Mo-REE-P Resource containing
108,000 t TREEYO,97,000t Cu 14 M lbs U3O8
Pan Pacific Copper and Mitsui Corporation
Farm-In Projects
100% moving to 49% GBM
Project area 631km2
Target IOCG
100% owned
Project area 302km2
Target IOCG
6. Malmsbury
100% owned
Project area 25km2
Defined Resource containing
104,000 ounces of gold
7.
Yea
100% owned
Project area 187km2
Target IRGS
8. Willaura
100% owned
Project area 223km2
Target Cu-Au porphyry
9.
Lubuk Mandi
Equity investment
Tailing treatment gold operations
Listed on Singapore Exchange in April 2016
2 GBM Resources Annual Report 2016
Our Vision
Our Values
GBM Resources Limited is
SAFETY
development of projects in
INTEGRITY
focused on delivering value
to our shareholders through
discovery, acquisition and
key commodities of gold
and copper globally.
Highlights in 2016
SUSTAINABILITY We have the highest regard and support
We take care of our safety, health and
wellness by recognising, assessing and
managing risk to continue our goal of
zero harm.
for the environment and local communities
in which we operate.
We behave ethically and respect each other
and the customs, cultures and laws in which
we operate.
RESPONSIBILITY We deliver on our commitments and work
together with all stakeholders.
n Our Excellent record continues of zero LTI’s and environmental incidents this year – this is the fifth consecutive
year that GBM has achieved zero harm. This is a credit to our people and an indication of the Company’s
stringent and high safety and environment standards – now and into the future.
n Mount Coolon Gold Project:
• The mineral resource at Mount Coolon Gold Project has been upgraded compliant with JORC code 2012
and estimated to contain 315,000 ounces of gold.
• Successful exploration has identified six major gold mineralisation systems hosting defined resources at
Eugenia, Koala and Glen Eva. To date 45 exploration prospects associated within these areas have been
identified and will be systematically assessed.
• Significant resource increase at Koala Gold Mine by 135% to 1.4 million tonnes at an average grade of
2.6 g/t containing an estimated 118,700 ounces. The Koala Gold Deposit now has an identified gold
endowment (past production and current resources) containing an estimated 378,000 ounces with
significant exploration upside.
• Scoping Study demonstrates positive project economics of heap leaching the oxide resource at Eugenia
Deposit. The mine is a small open pit, heap leach gold operation, to operate over a 16-month period, with the
potential to generate a strong positive cash flow. Next step is to proceed with and complete a Feasibility Study.
The Company continues to evaluate the known eight mineralising systems with the aim to advance a number
of near-term production options by the end of this calendar year.
n Acquired 100% of the Moonmera Copper – Molybdenum Project from Rio Tinto Exploration Pty Ltd, one of
n
the largest known mineralised porphyry copper systems in eastern Australia. The tenement is located less
than 10 km from Mount Morgan, and will form part of, GBM’s Mount Morgan Project in Central Queensland.
The Lubuk Mandi Gold Mine in Peninsular Malaysia, successfully listed on the Singapore Exchange (SGX).
GBM holds an equity interest in Anchor Resources Limited the company holding the mining concession for
the Lubuk Mandi Gold Mine. The stock code on SGX for Anchor is 43E.
n Subsequent to the end of the 2016 financial year, the Company completed A$2.6 million capital raising by way
of a placement of 160,500,000 ordinary fully paid shares at 1.6 cents each to fund exploration and feasibility
studies at the 100% owned Mount Coolon Gold Project.
Old Koala Open Pit Mine, Mount Coolon
GBM Resources Annual Report 2016
3
Review of Operations
Exploration Strategy and Activity
GBM remains strategically focused on our Company’s vision, and our exploration efforts over the year has been
to review and develop our large and prospective landholding in highly prospective regions in Queensland and
Victoria, Australia. GBM’s flagship project is the 100% owned Mount Coolon Gold Mines Pty Ltd, which was
successfully acquired from Drummond Gold Limited in 2015. The Project features a number of deposits and
prospects containing high-grade gold mineralisation and is the major focus for the Company as we investigate
options for near-term gold production and growth opportunities. We believe this is a convincing demonstration
of the potential of this region.
To unlock the potential, GBM’s focus is on a number of key drivers for both short and long-term success:
4
Identify opportunities for early production and cashflow in deposits with potential for major resource growth.
4 Focus on the discovery of world-class gold and copper-gold deposits.
4 Competent, rapid and cost effective evaluation of discoveries.
4 Apply a systematic approach to mineral exploration and development.
4 Explore in regions with historic production offers a higher probability of new discovery.
4 Strengthen GBM’s executive and technical capabilities.
4 Maximise in-ground exploration expenditure.
Mount Coolon area
4 GBM Resources Annual Report 2016
Drilling at ‘the Brothers’, Bungalien
Whilst the focus of exploration in 2016 was on increasing the Mineral Resource at Mount Coolon, review of historic
exploration data and drill testing of targets was also completed during the year.
The ongoing review of available exploration data at Mount Coolon identified eight key mineralising systems which
will be systematically assessed. The Mount Coolon assets located in the Drummond Basin, one of Australia’s
most prominent regions for large, epithermal vein and stockwork style gold deposits.
The completion of a deep diamond tail at Bungalien ‘The Brothers’ prospect and the commencement of drilling
at two prospects (FC2 and FC12) at the Mount Margaret West project has provided the confidence to conduct
further exploration work over these highly prospective areas.
These targets are part of the Bungalien and Mount Margaret Projects of which our Farm-In Joint Venture
partners Pan Pacific Copper and Mitsui Corporation of Japan completed the final year of an initial six-year
Farm-In agreement during the March quarter this year. Discussions have continued with Pan Pacific Copper
and they have indicated that they wish to proceed to formalise a joint venture to further progress the exploration
and development of the tenement areas, however, Mitsui have elected not to continue and will withdraw from
the project.
The acquisition from Rio Tinto Exploration of the Moonmera Copper-Molybdenum porphyry Project during
the March quarter this year has undoubtedly raised the prospectivity of the Mt Morgan project area.
The Moonmera Project is one of the largest known mineralised porphyry copper systems in eastern Australia
and is located less than 10km from the world-class Mount Morgan mine in Central Queensland.
Total exploration expenditure on the Company’s tenements for 2016 was A$2.6 million compared to a total
of A$2.7 million in the 2015 year GBM will be stepping up activities in the 2017 financial year with a focus
of bringing the Mount Coolon Gold Project into gold production.
GBM Resources Annual Report 2016
5
Review of Operations
Assets
Diversified Portfolio of tenements – Located in world-class gold and copper regions
GBM listed on the ASX in 2007 and its main focus is in key commodities of gold and copper-gold assets in
Australia. GBM tenements covers an area greater than 3,213 square kilometres in eight major project areas in
Queensland and Victoria. GBM is a holder of 35 million shares in Anchor Resources Limited (Singapore listed)
which owns the Lubuk Mandi Gold Mine in Malaysia. In 2016 financial year our portfolio expanded to include the
Moonmera Copper-Molybdenum Project (located less than 10km from the Mount Morgan Mine) and forms part
of the Mount Morgan Project area.
Mount Coolon Gold Project (100% GBM)
GBM has increased the size, scope and viability of the Mount Coolon Gold Project over the last financial
year, and aims to move into near-term production with potential to generate a strong positive cash flow.
2016 PROjECT HIGHLIGHTS
n Acquired Mt Coolon Gold Mine in April 2015 from Drummond Gold Limited,
n Gold Resource of ~315,000 ounces of gold, up from 268,000 ounces.
n Exploration Target range has been estimated for the Perseverance-Elizabeth area of the Bimurra Prospect of
between 10 million tonnes at an average grade of 0.7 g/t Au containing an estimated 230,000 ounces of gold
and 4 million tonnes at an average grade of 1.2 g/t Au containing an estimated 120,000 ounces of gold.
n Koala Gold Mine resource increased by 135% to 1.4 million tonnes at an average grade of 2.6 g/t,
containing an estimated 118,700 ounces.
n Priority IP Drill Target at Tower Hill, parallel to the Koala Gold Mine – Qld State Government co-funded
Collaborative Drilling Grant to test the IP/magnetic anomaly.
n Eugenia Scoping Study shows robust economics.
n Six major gold mineralising systems identified.
Drilling near Koala Pit
6 GBM Resources Annual Report 2016
Figure 2: Mt Coolon Project tenement group and prospect location plan.
The Mount Coolon Gold Project has continued to be the priority for the Company with the potential for both
near-term production and larger discoveries with long-term production potential being pursued. In April 2015,
GBM completed the acquisition of Mount Coolon Gold Mines from Drummond Gold Pty Ltd which holds a
portfolio of tenements and associated gold resources.
Situated on Queensland’s Drummond Basin, a prolific gold province, which has proven fertile for discovery
of epithermal and intrusive relation gold systems, has a total known gold endowment in excess of
7.5 million ounces of gold.
Located approximately 250km to the West of Mackay in North Queensland, the tenement package includes four
granted Mining Leases and four granted Exploration Permits covering a total area of 773km2 and holds potential
for further significant discoveries both at the know deposits, and at a number of targeted exploration prospects
already identified.
Upgrade and Growing Resource
The year has seen the successful progression of the Company’s resource expansion strategy,
delivering a significant increase in Mount Coolon’s gold resource
The three main deposits (Koala, Glen Eva and Eugenia) which contribute to the resources at the Mount Coolon
Gold Project have been examined, reviewed and upgraded during the year to comply with the requirements
of the guidelines of the JORC code (2012 edition).
GBM made a significant 135% increase to the Koala Gold Mine resource to 1.4 million tonnes, averaging
2.6 g/t Au containing an estimated 118,700 ounces of gold. This brings Mount Coolon gold resource to
approximately 314,700 ounces of gold with an average grade of 1.5 g/t. A total of 57% of gold ounces
are within the Measured and Indicated categories, providing GBM with more confidence in exploring
and continuing to prove and add to the global resource.
GBM Resources Annual Report 2016
7
Review of Operations
Positive Scoping Study
for Eugenia Deposit
Demonstrated positive project economics.
GBM completed the Eugenia heap leach Scoping Study
in August this year (refer ASX announcement 23 August
2016). The study confirmed the potential economic
viability of heap leaching the oxide portion of the
Eugenia Gold Deposit.
The Study demonstrated that the short-term operation
could generate a strong cash flow estimated in excess
of A$22 million using a gold price of A$1,650 per ounce.
The Company in parallel, is also evaluating toll milling
opportunities for the Koala and Glen Eva open cuts
which have the potential to see the Company achieve
gold production in the near-term.
The mine is planned to be a small open cut operation
to operate over a 16-month period. Mining is planned
using truck and excavator mining technique involving
conventional drill and blast, load and haul using contract
mining equipment. The mineralised material will be
crushed and paddock dumped onto prepared heap
leach areas, before stacking and preparing for the
leach process.
The outcome of the Eugenia Heap Leach Scoping
Study demonstrates that a short-term operation
could generate a strong positive cash flow by the
December 2017 quarter.
Ore Tonnes
Ore Grade
Waste Tonnes
Total Tonnes
Strip Ratio
Recovered Ounces
Op. Cost/oz (C1)
Operating life
1,771,000 t
0.71 g/t
1,634,000 t
3,409,000 t
0.92 w/o
32,588 ozs
848 $/oz
16 Months
Revenue (based on $AU1,650/oz)
52,426,000 $
Net Operating Cash flow
before tax
Capital
22,321,000 $
8,312,000 $
Note: C1 = mining and processing expenditure + site general
and administration + transport and refining costs
Table 1: Eugenia Heap Leach Scoping Study
Cash Flow Model Summary.
Figure 3. Schematic diagram illustrating the heap leach process.
8 GBM Resources Annual Report 2016
Six Major Gold Mineralising Systems
Eugenia System
The gold mineralisation at Eugenia is a complex arrangement of at least 5 styles of structurally-controlled quartz
veins and sulphide disseminations, characteristic of a low sulphidation epithermal deposit type. The host rocks
are crystal-rich dacitic ignimbrites located in the Devono-Carboniferous Drummond Basin. The host units are
reported to have a shallow dip to the west combined with inferences of a steeper ‘feeder’ zone in the centre of the
mineralisation. An intermediate argillic alteration assemblage is extensively developed at Eugenia, which exhibits both
vertical and lateral zonation. Higher grade gold mineralisation occurs as quartz-carbonate veins and horizons within
the porous host lithologies. Outcrop is very limited with thick soil cover, namely the Tertiary Suttor Formation to the
north and Quaternary sands to the south. The weathering profile has been interpreted as a truncated lateritic profile
with depth to fresh rock averaging 50m below surface. There is evidence of localised supergene enrichment of the
gold associated with the base of oxidation.
The Eugenia deposit still has exploration upside with extensions indicated by some drill hole intersections to the
east, and also potential to discover a higher grade ‘feeder’ vein below the existing deposit yet to be fully explored.
Koala System
The detailed review of the geology of the Koala Deposit confirmed that lower grade stockwork mineralisation
extends for several metres on either side of the central high-grade chalcedony zone both below the open pit,
and around the old underground workings. The new resource model (tabulated below) includes this mineralisation
which contributes to the increase in contained ounces in a resource which is considered to be of sufficient grade
to support open pit mining.
Resource Category
Ore Type
Cutoff Grade
(g/t Au)
Fresh
open pit
Oxide
Indicated
Transition
underground Fresh
Sub Total Indicated
Fresh
open pit
Oxide
Inferred
Transition
underground Fresh
Sub Total Inferred
Fresh
open pit
Oxide
Total
Transition
underground Fresh
TOTAL
0.4
0.4
0.4
2.0
0.4
0.4
0.4
2.0
0.4
0.4
0.4
2.0
Tonnes
(t)
250,000
30,000
90,000
50,000
420,000
600,000
40,000
110,000
230,000
980,000
850,000
70,000
190,000
280,000
1,400,000
Grade
Au (g/t)
Contained Gold
(ozs)
2.9
1.1
3.3
3.0
2.8
2.3
0.8
1.6
3.9
2.6
2.5
0.9
2.4
3.7
2.6
22,800
1,100
9,600
5,100
38,500
44,900
1,200
5,600
28,500
80,200
67,700
2,200
15,100
33,700
118,700
Table 2: Koala summary reported by resource category and oxidation state.
Please note rounding: tonnes (1,000 t), grade (0.1 g/t) and contained gold (100 ounces).
The total historical production from underground mining to 1940 was 303,408 tonnes @ 18.4g/t Au, for 179,475
ounces of gold and 60,000 ounces of silver. A further 270,000 tonnes averaging 5.6 g/t Au yielded 53,000 ounces
of gold from open cut mining in the 1990s. GBM believe that drilling may not have tested the limits of mineralisation
either at depth or along strike. The known mineralisation has been mined and prospected over a strike length in
excess of one kilometre. In addition, a number of structural targets exist in the area nearby which hold potential
to host structural repeats of the Koala Gold Mine setting.
GBM Resources Annual Report 2016
9
Review of Operations
Glen Eva Gold Mine
The Deposit currently hosts a Resource estimated at
154,000 tonnes averaging 7.5 g/t Au containing 37,200
ounces of gold. This high-grade Deposit remains open
at depth, and exploration along strike does not appear
to have penetrated the shallow cover that obscures the
extensions to the mineralisation. A number of prospects
have been generated in close proximity to the Glen Eva
Gold Mine by mapping, geophysical analyses and soil
sampling including; Four Posts, Fence, Serpent and
Arsenic Anomaly. More distal prospects include Eastern
Siliceous Zone, Canadian-Blackbutt, Last Stand and
Porcupine each show evidence of gold mineralisation
and alteration and remain to be investigated in detail
by GBM.
Bimurra Prospect
GBM completed an initial review of the exploration data
available which identifies extensive gold mineralisation at
the Bimurra Gold Prospect. An Exploration Target range
has been estimated for the Perseverance-Elizabeth area
of the Bimurra Prospect of between 10 million tonnes at
an average grade of 0.7 g/t Au containing an estimated
230,000 ounces of gold and 4 million tonnes at an
average grade of 1.2 g/t Au containing an estimated
120,000 ounces of gold (refer ASX announcement
21 September 2015).
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.
The Bimurra Project area prospect represents a
large mineralising hydrothermal system (The Bimurra
Hydrothermal System) hosting numerous prospects
and mineral occurrences, almost all fit into the styles
generally associated with epithermal low sulphidation
mineralising systems. Previous explorers have identified
and named nine gold prospects; Blenheim, Hilltop,
Perserverance, Elizabeth, Bimurra East, Camp Creek,
Ramillies, Bungobine Peak and Bimurra North East.
In addition, a number of conceptual targets have been
identified based on structural interpretation, soil and
rock chip geochemistry. The area is also dotted with
occasional unnamed pits and shafts from historic
prospecting activity.
GBM is in the process of locating and compiling data
from previous explorers and to date have assembled
a data set which includes analyses, survey information
and geological data including 9,285 samples from
130 drill holes. Initial interpretation and modelling
is now well advanced for the main Bimurra mineral
occurrence, which includes the Perseverance and
Elizabeth zones, the two most intensely tested areas
by previous explorers.
Detailed mapping has identified many continuous
and semi-continuous zones of chalcedonic quartz
veining, stockwork and brecciation. Rock sampling
and drill testing, both diamond and reverse circulation
percussion, has confirmed that gold mineralisation
continues to depth and over significant strike lengths.
Conway System
Contains multiple prospects and is considered to hold
potential for both bonanza epithermal vein style deposits
and bulk tonnage low grade disseminated deposits.
Prospects identified by previous explorers include:
Wobegong, Red Flag Hill, Quartz Reef Hill, Split Hill,
Bustard Egg Hill, Mill Hill, Big Sinter Hill
and Sinter Valley.
High-grade results have been reported by previous
explorers including 2 metres @27.0 g/t Au and 2 metres
@9.3 g/t Au at Wobegong Prospect (refer Drummond
Gold Ltd. IPO Prospectus 6 November 2007). Future
work by GBM will seek to verify previous drill results
and include them in a database to support analyses
and interpretation.
Verbena Sinter
Located 15 kilometres south east of Mount Coolon
and Koala Gold Mine on the same structural corridor.
The sinter outcrops over a 1.5 kilometre strike length
and up to 600 metres wide. Rock chip sampling and
shallow Reverse Circulation (RC) drilling have in the
past confirmed the presence of gold mineralisation,
but no Resource has been substantiated.
It is considered possible that an improved understanding
of the nature of the hydrothermal system operating
at the Verbena Sinter may lead to future discovery
of epithermal gold mineralisation at this prospect.
FY2017 Outlook
Further exploration works are currently being completed
in parallel with the ongoing Eugenia Heap Leach Study,
with a focus on investigating development options
including the potential for near-term production from
toll milling of the Koala and Glen Eva gold resources.
The Company expects to be in a position by the end
of December quarter this calendar year to confirm the
intention to proceed with the development of either toll
milling the open cuts, progress with the Eugenia Heap
Leach or both.
Resource drilling to upgrade geological and
geotechnical understanding of areas around the
old Koala underground mine workings is placed
to continue during the September quarter.
10 GBM Resources Annual Report 2016
Figure 4: Mt Coolon Prospect Location Map.
GBM Resources Annual Report 2016 11
Review of Operations
Mount Morgan Porphyry Copper-Gold Project,
Queensland (100% GBM)
Significant exploration potential in multi-million
ounce gold province.
The Project tenements surround the world-class
Mount Morgan Au Cu deposit which has produced
in excess of 8 million ounces of gold and
400,000 tonnes of copper.
2016 PROjECT HIGHLIGHTS
n Re-classification of Mount Morgan as a
porphyry-related deep epithermal style deposit.
n GBM acquired 100% of the Moonmera Copper-
Molybdenum Project from Rio Tinto Exploration
Pty Ltd in February 2016.
n Outstanding exploration project – one of
the largest known porphyry copper systems
in Eastern Australia.
n GBM currently undertaking project wide data
compilation and review, with a view to investigate
options to further fund and explore this project
including joint venture and farm-in options.
The Mount Morgan Project has a highly prospective
exploration tenement portfolio incorporating 11 granted
leases covering a total of approximately 781 square
kilometres. The tenements include: Smelter Return,
Limonite Hill and other buried targets within the Bajool
Project, Sandy Creek and Oakey Creek and the
Mt Gordon porphyry system.
The Company completed work with world-renowned
porphyry consultant Dr Greg Corbett of CMC Consulting
during the year, which has led to the re-classification of
Mount Morgan as a porphyry-related deep epithermal
style deposit.
The Company acquired the Moonmera Copper-
Molybdenum Project from Rio Tinto Exploration in
February this year and is a significant addition to GBM’s
existing Mount Morgan Copper Gold Project portfolio.
The single, very large 2 x 2.5 kilometre porphyry located
within tenement (EPM19849) was acquired from Rio for
the equivalent of A$35,000 in GBM ordinary shares. The
terms of the acquisition include a Net Smelter Royalty
(1%) on all minerals produced from the project area and
a Vendor Back-in Option whereby Rio has the option
to purchase, at fair market value, a 65% interest in the
project in the event that a Mineral Resource is identified
within the tenement that has an in-situ value of A$1.5
billion or greater. If the Back-in Option is exercised, both
parties become Joint Venture partners. In addition GBM
granted Rio a first right of refusal over the following
Victorian exploration prospects; Willaura, Lake Bolac,
Monkey Gully, Tin Creek and Rubicon.
MOUNT MORGAN PIC??
Drilling FC2, Mount Margaret West
12 GBM Resources Annual Report 2016
1. Limonte Hill
– 12m @ 1.4% Cu & 700 pm Mo
– Limonite Hill Cu-Mo porphyry
– Series of “Mag Lows” within structural
corridor
– 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
– Shallow drilling only
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,
8.5 g/t Au 44ppm Ag
– No drilling
9. Dee Copper Mines
– High grade Au-Cu veins
– Porphyry-related ‘D-veins?’
– Not tested at depth
10. Oakey Creek
– 3x1km porphyry-style alteration
– Rock-chips to 6.7% Cu & 40 ppm Ag
– Not drilled
11. Moonmera
– 3x2km porphyry system
– Crackle veins, pebble breccias
– Pervasive low-grade Cu-Mo
– Discrete high-grade zones
– Large tonnage potential
Figure 5: GBM tenements and prospect areas. Moonmera Prospect area hatched in red.
Mineralisation at Moonmera was first reported more than a century ago, at the time when minor small-scale
mining at the deposit was taking place. Historic drilling has shown the potential for high-grade mineralisation
at the prospect with intersections reported above 3% copper and 300pm molybdenum.1
In 1983, previous explorers explored for a small higher-grade resource for Mount Morgan mine mill feed.
Some reported intersections from this shallow drilling program are2:
n DDH61/13 – 12m @ 1.11 % Cu and 113ppm Mo from 27m in sericitised breccia & quartz diorite
•
Incl. 3m @ 3.4 % Cu and 142 ppm Mo
n PDH63 – 3m @ 3.0 % Cu & 160 ppm Mo from 13m in quartz-sericite porphyry
n PDH43 – 9m @ 1.34 % Cu & 460 ppm Mo from 10m in quartz diorite porphyry breccia
n PDH38 – 7m @ 1.3 % Cu & 155 ppm Mo from 9m in altered breccia
n DDH61/3 – 7m @ 1.1% Cu from 11m in altered intrusive
Mapping by previous explorers, CRA Exploration, revealed a highly complex, multi-phase porphyry intrusive
system with widespread crackle-veining, mineralised breccia and disseminated sulphide and oxide mineralisation.
In 2014 Rio modelling of the high-quality magnetic data produced a largely untested anomaly wholly concealed
beneath the Jurassic cap that obscures the western half of the prospect.
1
2
(Whitcher, I.G., 1962 ‘Final Report on Investigation of the Moonmera Copper Mineralisation, Mount Morgan District,
Queensland’ CRAE Report No. 4078).
(A. Taube B.Sc. Aust IMM., April 1983 ‘Results of Geopeko Investigation of the Moonmera Prospect C.M.L.’s 128 and 129;
Mount Morgan 1 and the Moonmera triangle Area, A. to P.508M GEOPEKO A Division of Peko-Wallsend Operations Ltd).
GBM Resources Annual Report 2016 13
Review of Operations
FY2017 Outlook
GBM’s growth strategy is focused around unlocking the potential mineralisation zones by undertaking a project wide
data compilation and review, with a view to investigate options to further fund and explore this project including joint
venture and farm-in options.
GBM has been developing a coherent geological model of the mineralisation as well as validating historic data from
previous mining operations within the Mount Morgan Deposit.
The future exploration programme at Moonmera will include the processing and interpretation of historic drilling,
geophysical and surface geochemical data. Existing Induced Potential (IP) geophysical surveys have detected known
sulphide mineralisation.
Systematic soil geochemistry over suitable areas and a new IP survey using modern techniques and high-power
transmitters may delineate high-grade mineralised zones within the greater magnetic anomaly. The western lobe
target has no previous IP coverage due to the rugged topography associated with the Jurassic sandstone cap.
Drill-testing of electrical targets will follow.
Figure 6: Plan view of Moonmera with outlines of the west, central and east lobes of the Rio magnetic inversion
highlighting the cluster of historic drilling where the central and east anomalies approach the surface.
The margin of the Jurassic plateau covering the western lobe is marked in black.
14 GBM Resources Annual Report 2016
Other Exploration Interests
Brightlands and Milo Iron-Oxide Copper-Gold (IOCG) REE Project
Exploration opportunity with multiple targets for copper-gold mineralisation.
In addition, the Milo IOCG system with an estimated resource containing 97,000 tonnes of copper,
14 million pounds of U3O8 and 108,000 tonnes of TREEYO shows significant exploration upside.
The Milo Project on Brightlands EPM14416 is located due east of Mount Isa, and just 20 kilometres west of
Cloncurry on the Barkley Highway, far northwest Queensland. 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.
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 100 metres to 200 metres.
This zone is very continuous at low grades (<200 ppm TREEYO) and has a simple shape.
Figure 7: Brightlands tenement group showing major regional structures over detailed TMI RTP image
with prospects and target areas.
GBM Resources Annual Report 2016 15
Review of Operations
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 kilometres south east of Mount Isa within the Mary Kathleen Zone
of the Eastern Succession.
At either end of the project sit the Trekelano Cu-Au mine with a resource (2006) of 3.1 million tonnes @ 2.1% Cu
and 0.64g/t Au, and the Tick Hill mine which produced 470,000 tonnes 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.
16 GBM Resources Annual Report 2016
Figure 8: Mayfield project locations.
Pan Pacific /Mitsui Farm-in Projects
Partnering with world-class companies to explore and develop outstanding exploration opportunities
in the prolific North West province of Queensland
2016 PROjECT HIGHLIGHTS
n Drilling targets F2 &F12 prospects at Mount Margaret West Project.
n Completion of a deep diamond tail at Bungalien ‘The Brothers’ prospect.
n
n
Target style IOCG mineralisation.
The Bungalien and Mount Margaret Projects are part of the Joint Venture.
The Mount Margaret West project is part of a
Farm-in Joint Venture with leading multinational
companies, Pan Pacific Co Ltd and Mitsui & Co
Ltd through their Australian registered subsidiary
Cloncurry Exploration & Development (CED).
The project is situated less than four kilometres
south from Ernest Henry Cu-Au-Magnetite Mine,
which was discovered in 1991.
The Mount Margaret tenements are in an area of
shallow cover (<100) over Proterozoic rocks that
include the host to the nearby Ernst Henry Mine.
The project area contains multiple targets
considered highly prospective for IOCG style
mineralisation. Exploration by CED to date has
been focused on reviewing the historical work
(drilling, geophysics, soil sampling) conducted by
companies such as Chevron, BHP, WMC, MIMEX
and Xstrata with the aim to identify gaps in the
previous exploration efforts and to delineate and
explore new areas that remain untested.
Priority was given during the year to the
completion of a deep diamond tail at Bungalien
‘The Brothers’ prospect and the commencement
of drilling at two highly ranked prospect areas
(FC2 and FC12). Both prospect displaying classic
IOCG-style anomalous magnetic and gravity
signatures and inadequate historic drill testing
through thin cover sediments.
A total of 5 moderate depth drillholes have been
completed by the Joint Venture across both
prospects, including two at FC12 during this
year. As a result of this drilling program, FC2
remains highly prospective for the discovery of
economic Cu-Au mineralisation whilst FC12 has
been downgraded due to poor assay results
and unfavourable host rock lithology.
Figure 9: GBM-CED JV tenement location plan.
These targets are part of the Bungalien and
Mount Margaret Projects of which our Joint Venture partners Pan Pacific Copper of Japan completed the final year
of an initial six-year Farm-In agreement during the March quarter this year.
Discussions are continuing with Pan Pacific Copper as they have indicated that they wish to proceed to formalise
a joint venture to further progress the exploration and development of the tenement areas.
GBM Resources Annual Report 2016 17
Review of Operations
Victoria Gold Projects Intrusive related
Gold Systems (IRGS) (100% GBM)
Malmsbury Gold Project (EL4515 and EL5120)
Exploration opportunity with 104,000 ounces
of gold already in resources
and significant exploration upside.
The Malmsbury Gold Project is part of a large Intrusive
Related Gold System (IRGS) centred on Belltopper
Hill and 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.
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 million tonnes 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.
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.
Yea W-Mo-Au IRGS Prospect
A detailed grid soil sampling program was completed
at the Monkey Gully prospect located near Yea,
north-east of Melbourne. The program was designed
to infill existing soil sampling and attempt to define
the distribution of W-Mo relative to surface mapping
to better understand the controls on mineralisation.
Excellent correlation was reported for the elements
of interest at Monkey Gully; Mo-W-Cu (co-efficient
of determination, R2 > 0.97) and Fe, As (R2 > 0.91).
18 GBM Resources Annual Report 2016
The recent Niton work also supported the evidence for
the gold-bearing nature of the system at Monkey Gully
with more than 60 results reporting anomalous gold,
all from the central dyke/W-Mo zone. Conventional soil
sampling has returned peaks of 3.1 ppm Au (historic)
and 0.1 ppm Au (GBM) and gold was weakly anomalous
in MGDD08 (peak 0.3 ppm) and in historic drilling
(peak 0.8 ppm).
Two target styles have been proposed at Monkey Gully;
a near surface target of multiple close-spaced dykes
and dyke contacts and a deeper mineralised carapace
over the tonalite source intrusion. Given the size of the
central magnetic high (2 kilometre x 0.8 kilometre) and
the modelled association with a mineralised tonalite
carapace, the deep target has significant exploration
potential for a large-tonnage W-Mo +- Au IRGS deposit.
Willaura Prorphyry Cu–Au Prospect
A Target Exploration Grant was awarded during the year
to GBM for a work proposal relating to Anomaly ‘I’ within
EL5423 Lake Bolac. The proposed program consists
of soil sampling, IP geophysics and RC and DD drill
testing.
Grant funding of A$184,950 is available for the three-
staged program and is conditional upon GBM meeting
existing expenditure requirements for EL5423.
Figure 10: Yea project location and tenement plan.
Figure 11: Yea Monkey Gully prospect mapping, soil sampling (conventional and Niton assays)
and drill collar/trace location plan with downhole W-Mo shown.
GBM Resources Annual Report 2016 19
Review of Operations
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.
Tenement Summary
GBM Resources strong tenement portfolio consists
of 37 Exploration Permit for Minerals and four Mining
leases in nine provinces around Queensland and Victoria
all of which are granted covering a total of 3212 square
kilometres in the Country’s most prospective areas.
During the reporting period GBM acquired Moonmera
EPM 19849 from Rio Tinto. The tenement covers an
area of five sub-blocks (19 square kilometres) and holds
a key part in GBMs Mount Morgan Project.
In addition one new tenement was granted during the
reporting period, Brightlands West Ext EPM 18672
consisting of five sub-blocks located in the Mt Isa
region, North West Queensland forming part of the
Brightlands Project.
All of these licences (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 Mount Margaret and Bungalien Projects are
moving to 51% ownership by our Joint Venture partners.
In addition the transfer of EPM 19483 Mayfield
from Newcrest into GBM was approved during the
reporting period.
A summary of GBM’s tenements is provided in Table 3
on page 21 of this report.
Inspecting core at Bimurra
20 GBM Resources Annual Report 2016
Tenement Schedule
Project/Name
VICTORIA
Malmsbury
Belltopper
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
Moonmera
Mt Victoria
Bajool
Mountain Maid
Mount Isa Region
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
The Brothers
Mayfield
Mayfield
Mt Coolon
Mt Coolon
Mt Coolon East
Mt Coolon North
Conway
Koala 1
Koala Camp
Koala Plant
Glen Eva
Tenement
No.
Owner
Manager
Interest
Status
Granted
Expiry
Approx
Area (km2)
Sub-
blocks
EL4515
GBMR*1/Belltopper Hill
GBMR
100%
pending
06-Oct-05
05-Oct-15
EL5346
EL5423
EL5293
EL5292
EL5347
EPM16057
EPM17105
EPM17734
EPM18366
EPM18811
EPM19288
EPM18812
EPM19849
EPM25177
EPM25362
EPM25678
EPM16398
EPM16622
EPM19834
EPM18172
EPM18174
EPM25545
EPM25544
EPM14416
EPM18051
EPM18672
EPM18454
EPM18453
EPM17849
EPM18207
EPM25213
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR*3
GBMR
GBMR
GBMR
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/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
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%
pending
Granted
pending
pending
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
02-Jun-11
03-Dec-12
01-Jun-16
02-Dec-17
23-Mar-11
23-Mar-11
27-Feb-12
22-Mar-16
22-Mar-16
26-Feb-17
27-Sep-07
26-Mar-08
20-May-09
21-Jun-12
21-Nov-12
31-Oct-13
26-Jul-12
12-Apr-13
26-Aug-14
27-Nov-14
09-Apr-15
19-Oct-10
30-Nov-12
04-Mar-13
13-Jul-12
25-Oct-11
20-Mar-15
11-Nov-14
5-Aug-05
22-Oct-13
16-Jun-16
23-Jan-12
23-Jan-12
26-Sep-16
25-Mar-17
19-May-18
20-Jun-17
20-Nov-17
30-Oct-18
25-Jul-17
11-Apr-18
25-Aug-17
26-Nov-17
08-Apr-18
18-Oct-20
29-Nov-17
03-Mar-18
12-Jul-17
24-Oct-16
19-Mar-17
10-Nov-16
4-Aug-16
21-Oct-18
15-Jun-21
22-Jan-17
22-Jan-17
20-Oct-10
24-May-12
16-Oct-14
19-Oct-20
23-May-17
15-Oct-19
EPM19483
GBMR*2/Isa Tenements
GBMR
100%
Granted
11-Mar-14
10-Mar-19
EPM15902
EPM25850
EPM25365
EPM7259
ML 1029
ML 1085
ML 1086
ML 10227
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
Granted
Granted
Granted
Granted
Granted
Granted
Granted
13-Jun-08
07-Sep-15
18-Sep-14
18-May-90
30-May-74
27-Jan-94
27-Jan-94
05-Dec-96
12-Jun-18
06-Sep-20
17-Sep-19
17-May-19
31-Jan-24
31-Jan-24
31-Jan-24
31-Dec-16
25
5
218
86
91
10
46
88
81
98
260
29
23
16
3
111
26
85
46
3
189
39
59
33
254
7
16
6
10
49
120
10
302
325
260
146
39
0.7
0.0
1.0
1.3
25
5
218
86
91
10
14
27
25
30
80
9
7
5
1
34
8
26
14
1
58
12
18
10
78
2
5
2
3
15
37
3
93
100
80
45
12
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 subject to 1% smelter royaly and other conditions to Rio Tinto; transfer documents with Department.
Table 3: GBM Tenement summary table as at 30 June 2016.
GBM Resources Annual Report 2016 21
Annual Mineral Resources Statement
The following Annual Statement of Mineral Resources statement reflects the Company’s mineral resources
as at 30 June 2016.
For the purpose of preparing this Annual Statement of Mineral resources as at 30th of June 2016, 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. It should be
emphasised that this is a summary only and for further detail the reader is referred to the respective ASX releases.
In relation to commodities key to GBM’s resource base the company holds the following views;
n Operating costs in the industry have significantly decreased since the end of the commodities boom.
In particular the availability and cost of labour, fuel and mining equipment has reduced.
n
The gold price is widely forecast to hold at least in the short to medium term with a number of forecasters
seeing potential for further increases in the medium to long term.
n Copper is widely forecast to enter a period of production shortfall in the long term putting upward pressure on
prices. However short term price forecasts are contradictory suggesting increased supply pressure and lower
prices in the coming year.
n REE demand continues to grow and uncertainty continues over the level of REE production sourced from illegal
mining in China. This should result in price increases in the medium to longer term.
n AUS$ is widely tipped to fall from the current level of around US$0.75 to as low as US$0.65 which would have
a further positive impact for Australian sourced metal production.
With these factors in mind the company believes that there is a reasonable expectation that resources at all projects
will eventually support mining operations.
Mount Coolon Gold Mines Limited
The Mount Coolon Project is located in the Drummond Basin in Queensland. Tenements and resources are owned
by 100% owned subsidiary, Mount Coolon Gold Mines Pty. Ltd.
Details relating to changes in the Mount Coolon resources since the last Annual Statement of Mineral Resources are
contained in ASX releases on the 08/07/2016 ‘Koala Gold Resource Increased by 135%’ and on the 23/08/2016,
‘Eugenia Heap Leach Scoping Study Demonstrates Potential Economic Viability, Mt Coolon Gold Project,
Queensland’.
Project
Location
Measured
Indicated
Inferred
Cut-off
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
Koala
Open Pit
Underground Extension
Tailings
Total
Eugenia
Oxide
Sulphide
Total
Glen Eva
Below pit
Total
114
114
1.6
1.7
6,200
6,200
370
50
9
429
1,305
2,127
3,432
132
114
1.7
6,200
3,993
2.8
3
1.6
2.8
0.9
0.9
0.9
7.8
1.4
33,500
5,100
400
39,000
39,300
750
230
980
219
62,300
1,195
101,600
1,414
33,200
21
173,800
2,415
2.1
3.9
2.5
0.7
1.2
1.1
5.9
1.7
51,700
1,110
28,500
280
124
80,200
1,514
5,100
1,524
45,500
3,322
50,600
4,846
4,000
154
134,800
6,514
2.4
3.7
1.6
2.6
0.9
1.0
1.0
7.5
1.5
85,000
33,700
6,600
125,300
44,400
107,800
152,200
37,200
314,700
0.4
2.0
1
0.4
0.4
0.4
3.0
Table 4: Koala resource summary. Details of individual resources are located as follows:
Koala Resources ASX release 08/07/2016 Koala Gold Resource Increased by 135% (CP K Allwood),
and for Eugenia Resources ASX release 23/08/2016 Eugenia Heap Leach Scoping Study Demonstrates Potential
Economic Viability, Mt Coolon Gold Project, Queensland (CP S McManus), Glen Eva resources ASX release 27/8/2015
Resource Upgrade for Mount Coolon Gold Project (CP S Tear).
22 GBM Resources Annual Report 2016
Changes to resources estimates for individual deposit has resulted in the estimate of total contained gold at Mount
Coolon has increased by 46,100 ounces or 17%. The key change is an increase in the open pit resources at Koala
from 1,300 ounces to 85,000 ounces by re-modelling the resource to reflect possible extensions to the known
pit and an additional pit surrounding old workings. This increase was also accompanied by a reduction in shallow
underground resources at Koala (ASX 08/07/2016 ).
Malmsbury Gold Project Resources
The Malmsbury Gold Project is located in Victoria. For original release refer to ASX release dated 19th of January
2009 (CP K Allwood).
Resource Classification
Tonnes
Au (g/t)
Au (ozs)
Inferred
820,000
4.0
104,000
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 22nd of November 2012 (CP K. Allwood).
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.
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.
GBM Resources Annual Report 2016 23
Annual Mineral Resources Statement
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 5: Milo copper equivalent prices and conversion factors (see explanatory note on prevous page).
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 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.
Historic decline portal at Koala
24 GBM Resources Annual Report 2016
Sustainable Development
GBM is committed to providing a safe and healthy
work environment for all of its employees, contractors,
consultants and visitors at all of their sites. GBM’s aim
is to operate in a safe and environmentally responsible
manner that meets the industry’s highest standards in
health and safety.
Of core importance to GBM is the protection of the
environment and the health and safety of its people.
GBM’s strong commitment to safety ensures that
all employees, including employees of contractors,
suppliers and consultants, are fully instructed, trained
and assessed in their activities by providing the facilities,
equipment, tools, procedures, safety programs and
training for employees to carry out their assigned tasks
in a safe and appropriate manner. As routine procedure
the company manages risk through the identification,
elimination, monitoring and control of risk hazards, and
implements procedures accordingly, while reviewing
performance on a daily basis.
GBM Resources works together with the relevant
government Departments and community groups in
developing and implementing standards and procedures
that improves the health and safety of all of its people as
well as the local community and maintains the protection
of the environment by strictly implementing and
maintaining an effective health, safety and environmental
management system.
GBM seeks continuous improvement in occupational
safety and health performance utilising best practice
procedures and taking into account evolving knowledge
and technology.
GBM recognises the importance of communication
and consultation with all staff and stakeholders to
foster a culture of commitment to health, safety and
the environment by promoting healthy lifestyles through
appropriate awareness and training programs.
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 (16179.5). This compares
to the 2013/14 average LTIFR published by Safe Work
Australia for the Exploration sector of 2.88 (most recent
figure available).
GBM’s stringent safety standards and procedures was
once again demonstrated by excellent results of zero
LTI’s, MTI’s and Environmental Incidents an indication of
the Company’s high Safety and Environment standards.
Community & Environment
GBM frequently engages and interacts with the local
community groups and landowners and is open and
transparent in all their dealings. GBM focuses strongly
on identifying sensitive cultural and social issues,
explaining any potential social and environmental
impacts that might occur, and strongly respects
cultural values, traditions and beliefs, and ensures 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.
GBM continually strives to improve its environmental
performance and strictly complies with the environmental
laws and regulations as a minimum standard. GBM
-proactively manages and assesses environmental
risks on a site-specific basis to achieve planned
environmental outcomes.
GBM informs and consults with the community about
its activities and projects on a regular basis. As part of
GBM’s strict environmental controls, it is now standard
procedure for rehabilitation of areas disturbed by
company activities occurs immediately after work has
been completed and results have been reviewed.
Statistics/Achievements
n No lost time injuries were sustained during the
2015/16 field season (LTI frequency rate of 0.0
against an industry average of 2.8 (2013/2014).
n No medically treated injuries were sustained during
operations in 2015/16.
n No environmental incidents occurred during the
reporting period.
n Refresher First Aid Courses were undertaken during
the year for all staff members.
n Ongoing reviews of GBM’s Risk Register and
procedures continued throughout the year.
Graph 1: GBM’s year-on-year safety performance
against industry average.
GBM Resources Annual Report 2016 25
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 2016.
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.
Mr Thompson has held no other directorships of listed
companies in the last 3 years.
Neil Norris
BSc (Hons), MAIMM, MAIG, GAICD
Exploration Director – Executive
Experience
Mr Norris is a geologist with over 25 years’ experience
gained in Australia and overseas. Recently he
was Group Exploration Manager for Perseverance
Corporation Limited and spent over ten years with
Newmont Australia Limited holding senior positions in
both mining and exploration areas. A key achievement
was his development of the geological models which
contributed to the discovery of the Phoenix ore body at
Fosterville. Mr Norris was also involved in the discovery
of the world class Cadia and Ridgeway deposits. Mr
Norris has a track record in the successful identification
of mineral deposits and his experience will greatly
advance GBM’s exploration efforts.
Mr Norris has held no other directorships of listed
companies in the last 3 years.
Hun Seng Tan
MBA
Non-Executive Director
Experience
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.
Company Secretary
Mr Kevin Hart
B.Comm FCA
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.
Former Directors
Frank Cannavo
Non-Executive Director (Resigned 25 November 2015)
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 Cannavo has held no other directorships of listed
companies in the last 3 years.
26 GBM Resources Annual Report 2016
Meetings of Directors
During the financial year, the following meetings of
Directors (including committees) were held:
Directors’ Meetings
Number
Eligible
to Attend
Number
Attended
10
10
10
5
10
10
10
3
P Thompson
N Norris
H Tan
F Cannavo
(resigned 25 November 2015)
Principal Activities
The principal activity of the Group during the financial
year was gold and IOCG (iron ore copper-gold)
exploration in Australia.
Operating and Financial Review
During the financial year the Group’s activities were
focussed on exploration and resource estimation
at its wholly owned Mt Coolon Gold Project and at
its Queensland IOCG prospects under the farm-in
agreement with Mitsui and Pan Pacific.
Operating Results
The net profit after income tax attributable to members
of the Group for the financial year to 30 June 2016
amounted to $3,180,395 (2015: loss $4,545,251).
Including in the profit for the financial year is gain of
$5,299,614 on the recognition of a financial asset in
respect of shares of Anchor Resources Pte Ltd and
an associated impairment charge of $1,163,840 in
respect of the change in value of that investment to
30 June 2016, $271,237 in respect of exploration costs
written off and expensed (2015: $2,996,328), and the
Company’s share of the net loss of its equity accounted
investments amounting to $nil (2015: $630,691).
Financial Position
At the end of the financial year, the Group had $355,106
(2015: $1,107,721) in cash on hand and on deposit.
Carried forward exploration and evaluation expenditure
was $11,350,307 (2015: $10,355,613).
As at 30 June 2016 the Group recognised an asset
amounting to $4,135,774 in respect of its investment
in Anchor Resources Pte Ltd (Anchor Resources), a
Company holding the Lubuk Mandi mining concession
which is quoted on the Catalist Board of the Singapore
Stock Exchange (SGX). Prior to quotation of Anchor
Resources the Group accounted for its interest in the
Lubuk Mandi project via an equity accounted investment
in Angka Alamjaya Sdn Bhd (AASB), the entity which
was subsequently vended into the Anchor Resources
Initial Public Offer. The carrying value of the Group’s
equity accounted investment in AASB as at 30 June
2015 was $nil.
Equity Securities on Issue
Ordinary fully paid shares
653,063,975
557,894,121
30 june 2016 30 June 2015
Options over
unissued shares
Nil
177,746,562
Ordinary Fully Paid Shares
During the year ended 30 June 2016 the Company
issued the following ordinary fully paid shares:
n
n
92,982,354 ordinary fully paid shares pursuant to
a non-renounceable entitlement issue at 1.5 cents
per share; and
2,187,500 ordinary fully paid shares in
consideration for the acquisition of Moonmera
copper-gold prospect from Rio Tinto at a deemed
price of 1.6 cents per share.
No shares have been issued between the end of the
financial year and the date of this report, other than
the following:
n
n
160,500,000 ordinary fully paid shares to
professional and sophisticated investors pursuant
to a share placement at 1.6 cents per share; and
3,000 ordinary fully paid shares issued on the
exercise of GBZO options at 3.5 cents per share.
Options over Ordinary Shares
During the year ended 30 June 2016, no options were
issued by the Company, and no shares were issued
on the exercise of options.
During the year ended 30 June 2016 the Company
cancelled 177,743,562 listed options exercisable at
3.5 cents each and expiring 30 June 2016 on expiry
of the exercise period.
No options have been issued, vested, exercised or
cancelled between the end of the financial year and
the date of this report.
n An application for the exercise of 3,000 options
exercisable at 3.5 cents each and expiring 30 June
2016 (GBZO) was received prior to 30 June 2016.
The shares were issued subsequent to the end of
the financial period.
GBM Resources Annual Report 2016 27
Directors’ Report
Significant Changes in State of Affairs
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.
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:
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 2016.
Remuneration Report (Audited)
The remuneration report is set out in the following
manner:
n Policies used to determine the nature and amount
n On 26 July 2016 the Company completed the
of remuneration
issue of 160,500,000 ordinary fully paid shares at
1.6 cents per share pursuant to a share placement
raising $2,568,000 before costs.
n Details of remuneration
n Service agreements
n On 23 August 2016 the Company issued a scoping
study in respect of the heap leach production
opportunity at the Eugenia deposit at the Mt
Coolon Gold Project.
n On 5 September 2016 the Company lodged a
prospectus in relation to a non-renounceable
entitlement offer of options to raise up to $610,175.
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 2016.
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.
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.
28 GBM Resources Annual Report 2016
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.
2016
Remuneration
of KMP
Directors
P Thompson
N Norris
H Tan
F Cannavo
Total Directors
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
$
215,000
200,000
104,000
15,000
534,000
Other
$
–
8,436
–
–
8,436
Super-
annuation
$
Options/
shares
$
20,425
19,000
–
1,710
41,135
–
–
–
–
–
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
$
–
–
–
–
–
–
–
–
Share Based
Payments
as % of
remuneration
%
–
–
–
–
Share Based
Payments
as % of
remuneration
%
–
–
–
–
–
–
–
Total
$
235,425
227,436
104,000
16,710
583,571
Total
$
227,212
3,000
223,225
3,000
–
130,169
16,000
602,606
1 During the 2015 and 2016 financial years, total remuneration payable to the Executive Directors Peter Thompson
and Neil Norris continued to be paid on a temporarily reduced basis. This is a temporary measure to ensure that
the current strategies in place are achieved by the Company.
Included in director remuneration for 2016 are amounts of $96,635 that have been accrued for payment
as at 30 June 2016.
See disclosure relating to service agreements for further details of remuneration of executive directors.
GBM Resources Annual Report 2016 29
Directors’ Report
Remuneration Report (Audited) (continued)
Options Provided as Remuneration
During the years ended 30 June 2016 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. 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. 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.
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 may be issued to provide an appropriate level
of incentive using a cost effective means given the
Company’s size and stage of development.
30 GBM Resources Annual Report 2016
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
N Norris
H Tan
F Cannavo
(resigned 25/11/15)
Options
Director
Ordinary shares
held at
1 july 2015
Movement
during the
financial year
Ordinary shares
held at
30 june 2016
Ordinary shares held
at the date of the
Directors’ Report
9,862,582
9,550,000
1,337,418
11,200,000
11,200,000
1,591,667
11,141,667
11,141,667
16,000,000
2,666,667
18,666,667
18,666,667
–
–
–
–
Options
held at
1 july 2015
Movement
during the
financial year1
Options
held at
30 june 2016
Options held at
the date of the
Directors’ Report
P Thompson
2,468,763
(2,468,763)
N Norris
H Tan
F Cannavo
(resigned 25/11/15)
1,546,818
(1,546,818)
–
–
–
–
1 Options cancelled on expiry of exercise period.
–
–
–
–
–
–
–
–
Loans to Directors and Executives
There were no loans entered into with Directors or executives during the financial year ended 30 June 2016.
Other Transactions with Key Management Personnel
During the 2015 financial year an amount of $296,963 was incurred by the Company on behalf of Angka Alamjaya
Sdn Bhd (AASB) a Company associated with Mr Chiau Woei Lim then a director of the Company. In the 2015
financial year a total of $700,020 was reimbursed to the Company by AASB.
At 30 June 2016 an amount of $nil (2015: $101,856) was outstanding and payable to the Group by AASB.
Other than the above, there are no transactions with Directors, or Director related entities or associates.
End of Remuneration Report
GBM Resources Annual Report 2016 31
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 14th day of September 2016
Peter Thompson
Executive Chairman
32 GBM Resources Annual Report 2016
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 2016, 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
14 September 2016
D I Buckley
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.
11
GBM Resources Annual Report 2016 33
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For the Year Ended 30 June 2016
Revenue
Other gains and losses
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
Travel expenses
Administration and other expenses
Note
3
11
12
4
4
11/8
4
Consolidated
2016
$
2015
$
266,167
287,393
5,299,614
(128,425)
(21,050)
–
(48,565)
(388,206)
(1,163,840)
(271,237)
(112,999)
(251,064)
–
(254,656)
(84,963)
(630,691)
(38,192)
(410,865)
(58,499)
(2,996,328)
(156,020)
(202,430)
Profit/(loss) before income tax
3,180,395
(4,545,251)
Income tax benefit
Profit/(loss) for the year
5
–
–
3,180,395
(4,545,251)
Other comprehensive income
–
–
Total comprehensive profit/(loss) for the year
3,180,395
(4,545,251)
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
6
6
0.5
0.5
(0.9)
(0.9)
Cents
Cents
The accompanying notes form part of these financial statements
34 GBM Resources Annual Report 2016
Consolidated Statement of Financial Position
As at 30 June 2016
Current assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-current assets
Trade and other receivables
Exploration and evaluation expenditure
Property, plant and equipment
Investments – available for sale financial assets
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
2016
$
2015
$
22
7
7
9
10
11
13
14
15
17
17
17
355,106
95,309
450,415
1,107,721
123,655
1,231,376
412,121
11,350,307
156,605
4,135,774
411,857
10,355,613
205,171
–
16,054,807
10,972,641
16,505,222
12,204,017
323,851
323,851
396,054
396,054
616,596
616,596
396,054
396,054
719,905
1,012,650
15,785,317
11,191,367
28,785,654
–
–
(13,000,337)
27,372,099
323,733
400,000
(16,904,465)
TOTAL EQUITY
15,785,317
11,191,367
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2016 35
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2016
Share
based
Consolidated
Note
Issued
capital
$
Option
reserve
$
payments Accumulated
reserve
$
losses
$
Total
$
Balance at 1 July 2014
23,927,441
323,733
400,000
(12,359,214) 12,291,960
Shares issued (net of costs)
Loss attributable to
members of the Company
15
17
3,444,658
–
–
–
-
–
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
Balance at 1 july 2015
27,372,099
323,733
400,000
(16,904,465) 11,191,367
Shares issued (net of costs)
15
1,413,555
–
–
–
1,413,555
Transfer to accumulated
losses on expiry of options
Profit attributable to
members of the Company
17
17
–
–
Balance at 30 june 2016
28,785,654
(323,733)
(400,000)
723,733
–
–
–
–
3,180,395
3,180,395
–
(13,000,337) 15,785,317
The accompanying notes form part of these financial statements
36 GBM Resources Annual Report 2016
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2016
Note
Consolidated
2016
$
2015
$
Cash flows from operating activities
Interest received
Other income
Exclusivity fee income
JV management fee income
Payments to suppliers and employees
Net cash flows (used in) operating activities
22(c)
10,685
73,361
100,000
131,858
(776,390)
(460,486)
20,502
–
250,375
(1,188,788)
(917,911)
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
–
(23,640)
30
–
(37,500)
14,595
(800,000)
1,103,770
2,086,461
(2,794,839)
–
–
–
57,779
(2,740,369)
264,452
(954)
(296,963)
700,020
Net cash flows (used in) investing activities
(1,670,790)
(796,398)
Cash flows from financing activities
Proceeds from the issue of shares and options
Share issue costs
Net cash flows from financing activities
1,394,841
(16,180)
2,567,500
(272,842)
1,378,661
2,294,658
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning
of the financial year
Cash and cash equivalents at the end
of the financial year
22(a)
22(a)
(752,615)
1,107,721
580,349
527,372
355,106
1,107,721
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2016 37
Notes to the Financial Statements
For the Year Ended 30 June 2016
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 2016 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. For the purpose of preparation of the consolidated financial statements the
Company is a for-profit entity.
Adoption of New and Revised Standards –
Changes in accounting policies on initial application of accounting standards
In the year ended 30 June 2016, 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 2016. As a result of this review the Directors have determined that
there is no impact, material or otherwise, of the new and revised Standards and Interpretations on the Group’s
business and, therefore, no change necessary to Group accounting policies.
b) Statement of Compliance
The financial report was authorised for issue on 14 September 2016.
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. Non-
controlling 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.
38 GBM Resources Annual Report 2016
1. Statement of Significant Accounting Policies (continued)
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.
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.
GBM Resources Annual Report 2016 39
Notes to the Financial Statements
For the Year Ended 30 June 2016
1. Statement of Significant Accounting Policies (continued)
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.
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.
40 GBM Resources Annual Report 2016
1. Statement of Significant Accounting Policies (continued)
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.
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.
GBM Resources Annual Report 2016 41
Notes to the Financial Statements
For the Year Ended 30 June 2016
1. Statement of Significant Accounting Policies (continued)
l)
Investments and Other Financial Assets (continued)
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. 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.
42 GBM Resources Annual Report 2016
1. Statement of Significant Accounting Policies (continued)
l)
Investments and Other Financial Assets (continued)
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)
the exploration and evaluation expenditures are expected to be recouped through successful
development and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the reporting date reached a
stage which permits a reasonable assessment of the existence or otherwise of economically recoverable
reserves, and active and significant operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation
and amortised of assets used in exploration and evaluation activities. General and administrative costs are only
included in the measurement of exploration and evaluation costs where they are related directly to operational
activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the
carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable
amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated
being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss
(if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest,
the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to
development.
GBM Resources Annual Report 2016 43
Notes to the Financial Statements
For the Year Ended 30 June 2016
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.
44 GBM Resources Annual Report 2016
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 2016 45
Notes to the Financial Statements
For the Year Ended 30 June 2016
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.
46 GBM Resources Annual Report 2016
1. Statement of Significant Accounting Policies (continued)
v) 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.
w) Parent entity financial information
The financial information for the parent entity, GBM Resources 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.
x) 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 2016 47
Notes to the Financial Statements
For the Year Ended 30 June 2016
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 20 – 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).
48 GBM Resources Annual Report 2016
3. Revenue
Gain on disposal of assets
Interest income
Joint venture management fee
Other income
Exclusivity fee income1
Note
Consolidated
2016
$
–
10,949
131,857
23,361
100,000
266,167
2015
$
14,452
21,194
250,375
1,372
–
287,393
1 During the financial year the Company granted a third party a period of exclusivity in respect of a potential
corporate transaction. The exclusivity period had lapsed prior to 30 June 2016.
4. Expenses
Employee expenses
Gross employee benefit expense:
Wages and salaries1
Directors’ fees1
Superannuation expense
Other employee costs
Less amount allocated to exploration
Net consolidated statement of profit or loss and other
comprehensive income employee benefit expense
1,162,984
119,000
110,782
65,585
1,458,351
(1,070,145)
1,267,405
4,000
120,515
70,530
1,462,450
(1,051,585)
388,206
410,865
1 As at 30 June 2016 amounts have been accrued for $72,635 for executive director remuneration and $24,000
accrued in respect of non-executive director fees. The accrued amounts are included in the above employee costs.
Depreciation expense:
Property and improvements
Office equipment and software
Site equipment
Motor vehicles
Exploration costs:
Unallocated exploration costs
Exploration costs written off
10
10
10
10
9
14,180
2,535
15,448
16,402
48,565
139,371
131,866
271,237
3,667
11,834
5,239
17,452
38,192
120,977
2,875,351
2,996,328
GBM Resources Annual Report 2016 49
Notes to the Financial Statements
For the Year Ended 30 June 2016
Consolidated
2016
$
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 profit/(loss) before income tax from continuing operations
3,180,395
(4,545,251)
Income tax benefit calculated at 30%
Gain on recognition of available for sale financial asset
Impairment expense
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
Income tax (benefit) reported in the consolidated
statement of comprehensive income
954,119
(1,589,884)
349,152
–
(33,729)
39,560
(1,363,575)
–
–
189,207
(63,578)
862,605
280,782
375,341
–
–
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 small business company 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 leave liabilities
Rehabilitation provisions
Unrecognised deferred tax liabilities relate to:
Exploration expenditure
Net unrecognised deferred tax asset
6,866,950
64,737
63,465
118,816
7,113,968
6,348,935
96,473
23,054
118,816
6,587,278
(3,405,092)
(3,106,684)
3,708,876
3,480,594
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.
50 GBM Resources Annual Report 2016
6. Earnings/(Loss) per Share
Profit/(loss) used in calculation of earnings/(loss) per share
3,180,395
(4,545,251)
Consolidated
2016
$
2015
$
Basic and diluted loss per share
Weighted average number of shares used
in the calculation of earnings per share
Cents
Cents
0.5
#
(0.9)
#
606,173,641
487,748,368
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.
There are no options on issue at 30 June 2016 that are considered to be dilutive.
7. Trade and Other Receivables
Current
Amounts due from farm-in partner
Amounts due from associate
GST recoverable
Other debtors
Non-current
Security and environmental bonds1
26
Consolidated
2016
$
75,397
–
14,380
5,532
95,309
412,121
412,121
2015
$
–
101,816
20,882
957
123,655
411,857
411,857
1 Included in non-current assets at 30 June 2016 is an amount of $371,183 (2015: $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 (Note 30).
8. Assets Held For Sale
Land reclassified as held for sale
Reconciliation:
Balance at the start of the financial year
Impairment charge
Sale of asset
Balance at the end of the financial year
–
–
–
–
–
–
308,499
(58,499)
(250,000)
–
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 recognised was $14,452, after taking into account the previous impairment charge of $58,499.
GBM Resources Annual Report 2016 51
Notes to the Financial Statements
For the Year Ended 30 June 2016
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
Costs capitalised during the financial year
Capitalised costs written off during the financial year
Note
30
4
Consolidated
2016
$
2015
$
10,355,613
10,569,552
–
1,126,560
(131,866)
1,880,984
780,428
(2,875,351)
Capitalised costs at the end of the financial year
11,350,307
10,355,613
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:
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
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
52 GBM Resources Annual Report 2016
30
4
30
4
193,117
(119,169)
73,948
172,211
(166,566)
5,645
221,124
(185,463)
35,661
161,638
(120,287)
41,351
156,605
88,128
–
(14,180)
73,948
8,180
–
–
(2,535)
5,645
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
12,288
6,772
954
(11,834)
8,180
10. Property, Plant and Equipment (continued)
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
Note
30
4
30
4
Consolidated
2016
$
2015
$
51,109
–
(15,448)
35,661
13,662
42,686
(5,239)
51,109
57,754
74,083
–
(16,403)
41,351
156,605
1,123
(17,452)
57,754
205,171
11. Available For Sale Financial Assets
Investment – Anchor Resources Pte Ltd
4,135,774
The investment relates to a holding of 35,221,236 ordinary shares in Anchor Resources Pte Ltd (Anchor),
a Company quoted on the Catalist Board of the Singapore Stock Exchange (SGX). The shares are subject
to a restriction of trading as follows:
Shares subject to trading restriction until 17 March 2017
Shares subject to trading restriction until 17 September 2017
17,610,618
17,610,618
The Group received the Anchor shares pursuant to a share swap agreement relating to its original shareholding
in Angka Alamjaya Sdn Bhd (AASB), which were vended into the Initial Public Offer of Anchor.
Prior to the completion of the share swap agreement, the Group accounted for its investment in AASB as an
associate using the equity method (Note 12).
Balance at the start of the financial year
Gain on recognition of available for sale financial assets1
Impairment expense2
Carrying amount at the end of the financial year
–
5,299,614
(1,163,840)
4,135,744
–
–
–
–
1 The fair value gain on recognition of the available for sale financial assets has been recognised as other income
in the Statement of Profit or Loss and Other Comprehensive Income (Note 12).
2 The directors have reviewed the decline in value of the investment and have considered it to be significant
and as such it has been reclassified from equity to profit or loss.
GBM Resources Annual Report 2016 53
Notes to the Financial Statements
For the Year Ended 30 June 2016
12. Investments Accounted for Using the Equity Method
a) Details of associated companies
Ownership Interest
Carrying Amount
of investment
Name
Angka Alamjaya
Sdn Bhd (AASB)
Country of
Incorporation
Shares
30 june
2016
%
30 June
2015
%
30 june
2016
$
30 June
2015
$
Malaysia
Ord
–
26.7%
–
–
In the prior year the Group held a 26.7% interest in Angka Alamjaya Sdn Bhd (AASB). In March 2016 the Company
entered into a share swap agreement with Anchor Resources Pte Ltd (Anchor). The Group has accounted for
its interest in Anchor shares as an available for sale financial asset (Note 11). This transaction has resulted in
the recognition of a gain in profit or loss using the market value of Anchor shares at the time of listing on the
Singapore Exchange.
b)
Movements during the period in equity
accounted investments in associated companies
Balance at the beginning of the financial period
Share of AASB loss after tax for the financial period
Balance at the end of the financial period
13. Trade and Other Payables
Current
Acquisition costs payable1
Unspent farm-in contribution liability2
Trade creditors
Sundry creditors and accruals
Employee leave liabilities
Note
30
Consolidated
2016
$
2015
$
–
–
–
630,691
(630,691)
–
12,500
–
81,490
114,946
114,915
323,851
50,000
216,129
232,093
41,527
76,847
616,596
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 (Note 22(b)).
14. Provisions
Non-current
Rehabilitation provision1
30
396,054
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).
54 GBM Resources Annual Report 2016
Issue
price
2016
No.
2015
No.
2016
$
2015
$
15. Issued Capital
Issued capital at the balance date
653,063,975 557,894,121
28,785,654
27,372,099
Movements in issued capital:
On issue at the start of the year
Share placement
Share placement
Shares issued to acquire interest in
Mt Coolon Gold Mines Pty Ltd
(Note 30)
Entitlement Issue
Shares issued to acquire the
Moonmera Prospect
Share issue costs
$0.02
$0.025
557,894,121 385,194,121
– 100,000,000
22,700,000
–
27,372,099
–
–
23,927,441
2,000,000
567,500
$0.023
$0.015
–
92,982,354
50,000,000
–
–
1,394,735
1,150,000
–
$0.016
2,187,500
–
–
–
35,000
(16,180)
–
(272,842)
On issue at the end of the reporting year
653,063,975 557,894,121
28,785,654
27,372,099
Shares Subject to Restriction Agreement
At balance date there were no ordinary shares subject to any restrictions.
16. Options
Details of the Company’s Incentive Option Scheme are provided at Note 18.
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 attaching to share placement1
Options exercised2
Options cancelled on expiry of exercise period
2016
No.
2015
No.
–
177,746,562
177,746,562
–
(3,000)
(177,743,562)
134,746,562
43,000,000
–
–
Options on issue at the end of the reporting year
–
177,746,562
1 Options exercisable at 3.5 cents each and expiring 30 June 2016 issued as attaching securities to share
placements.
2 Election to exercise options made prior to the expiry of options on 30 June 2016. The resulting shares were issued
subsequent to the end of the financial year.
GBM Resources Annual Report 2016 55
Notes to the Financial Statements
For the Year Ended 30 June 2016
17. Reserves And Accumulated Losses
Share based payments reservei
Opening balance
Transfer to accumulated losses on expiry of exercise period
Closing balance
Option reserveii
Opening balance
Transfer to accumulated losses on expiry of exercise period
Closing balance
Consolidated
2016
$
400,000
(400,000)
–
323,733
(323,733)
–
2015
$
400,000
–
400,000
323,733
–
323,733
Accumulated losses
Opening balance
Transfer from share based payments reserve on expiry of options
Transfer from option reserve on expiry of options
Net profit/(loss) attributable to the members of the Company
Closing balance
(16,904,465)
400,000
323,733
3,180,395
(12,359,214)
–
–
(4,545,251)
(13,000,337)
(16,904,465)
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.
18. 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 21 November 2013. 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 2016 (2015: nil) – (Note 16(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 21 November 2013. 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 2016 (2015: nil).
56 GBM Resources Annual Report 2016
19. 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 core activity is mineral exploration and resource development within Australia. During the 2015 and 2016
financial years the Group has recognised investments in companies in Malaysia and Singapore (Notes 11 and 12).
During the 2016 financial year the Group has not recognised an asset or liability, or income/expense in relation to
its investment in Malaysia.
The reportable segments are represented as follows:
30 june 2016
Revenue
Joint venture management fee
Gain on recognition of available for sale financial asset
Total segment revenue
Australia
$
Singapore
$
Consolidated
$
131,858
–
–
5,299,614
131,858
5,299,614
131,858
5,299,614
5,431,472
Segment net operating profit/(loss) after tax
(955,379)
4,135,774
(3,180,395)
Other revenue – unallocated
Depreciation
Exploration expenditure written off and expensed
134,309
(48,565)
(271,237)
–
–
–
134,309
(48,565)
(271,237)
Segment assets
12,369,448
4,135,774
16,505,222
Capital expenditure during period
Segment liabilities
–
(719,905)
–
–
–
(719,905)
Segment non-current assets
11,919,033
4,135,774
16,054,807
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
–
–
(38,192)
(2,996,328)
12,204,017
954
2,000,000
(1,012,650)
10,972,641
–
(630,691)
–
–
37,018
(630,691)
(38,192)
(2,996,328)
–
–
–
–
–
12,204,017
954
2,000,000
(1,012,650)
10,972,641
GBM Resources Annual Report 2016 57
Notes to the Financial Statements
For the Year Ended 30 June 2016
20. 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 (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.
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 (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 (Note 2(b)):
Carrying
amount
$
Contractual
cash flows
$
6 months
or less
$
6-12
months
$
1-2
years
$
2-5
years
$
More than
5 years
$
Consolidated
30 june 2016
Trade and other payables
99,800
99,800
99,800
99,800
99,800
99,800
30 june 2015
Trade and other payables 616,596
616,596
616,596
616,596
616,596
616,596
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
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
2016
$
–
–
2015
$
–
–
355,106
355,106
1,107,721
1,107,721
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.
58 GBM Resources Annual Report 2016
20. Financial Instruments (continued)
Equity risk
The Group is exposed to equity price risk, which arises through its holding of an available for sale financial asset,
being the investment in shares in Anchor Resources Limited (see Note 11 for details).
Sensitivity analysis – Equity Price Risk
The Group’s equity investment is listed on the Catalist Board of the Singapore Securities Exchange (SGX). A 10%
change in the equity price of the Group’s investment at the reporting date would have the following impact on
the financial statements:
Profit and Loss
Equity
10%
increase
$
10%
decrease
$
10%
increase
$
10%
decrease
$
413,577
(413,577)
413,577
(413,577)
–
–
–
–
30 june 2016
Available for sale financial assets
30 june 2015
Available for sale financial assets
Fair values
Fair values versus carrying amounts
The carrying amounts of financial assets and liabilities not measured at fair value on a recurring basis, as described
in the consolidated statement of financial position represent their estimated net fair value.
21. 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
2016, including licences subject to farm-in arrangements are approximately $2,985,900 (2015: $2,886,800).
b) Operating Lease Commitments
The Group has no operating lease commitments.
c) Contractual Commitment
The Group has no contractual commitments.
22. 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
2016
$
2015
$
251,806
103,300
355,106
1,007,721
100,000
1,107,721
The Bank at call account holds funds at call subject to certain restrictions (Note 21(b)) and pays interest at an
average of 2.45% (2015:3.30%), and matures on 24 September 2016.
GBM Resources Annual Report 2016 59
Notes to the Financial Statements
For the Year Ended 30 June 2016
22. 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
103,300
100,000
Consolidated
2016
$
2015
$
Also included in cash and cash equivalents as at 30 June 2016 are
amounts of $Nil (2015: 216,129) 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 13).
c)
Reconciliation of Loss from Ordinary Activities after
Income Tax to Net Cash Used In Operating Activities
Profit/(Loss) after income tax
3,180,395
(4,545,251)
Add (less) non-cash items:
Gain on recognition of financial asset
Gain on sale of assets
Impairment charge
Depreciation
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
(5,299,614)
–
1,163,840
48,565
271,238
–
130,018
45,072
–
(14,452)
58,499
38,192
2,996,328
630,691
(84,338)
2,420
(460,486)
(917,911)
2016
During the 2016 financial year the Group issued 2,187,500 ordinary fully paid shares at a fair value of 1.6 cents per
share to Rio Tinto Exploration Pty Ltd in consideration for the acquisition of the Moonmera copper-gold prospect
adjacent to the Group’s existing Mt Morgans copper-gold project, in eastern Queensland.
2015
During the 2015 financial year the Group 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 (Note 30).
23. Auditor’s Remuneration
Amounts received or receivable by HLB Mann Judd for:
– Audit and review of financial reports
29,500
29,000
60 GBM Resources Annual Report 2016
24. 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
Consolidated
2016
%
2015
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Balances and transactions between the Company and its subsidiaries, which are realted parties of the Company,
have been eliminated on consolidation and not disclosed in the note. Details of transactions between the Group
and other related parties are disclosed in Note 25.
25. 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
Hun Seng Tan – Non-Executive Director
Frank Cannavo – Non-Executive Director (resigned 25 November 2015)
Executive Directors
Peter Thompson – Managing Director/Executive Chairman
Neil Norris – Exploration Director
Total remuneration paid to key management personnel during the year:
Short-term benefits
Post-employment benefits
Consolidated
2016
$
542,436
41,135
583,571
2015
$
554,241
48,365
602,606
b) Other Transactions and Balances with Key Management Personnel
There are no other transactions with Directors, or Director related entities or associates, other than those reported
in Note 26. As at 30 June 2016 an amount of $96,635 has been accrued for payment to Key Management
Personnel in respect of remuneration.
GBM Resources Annual Report 2016 61
Notes to the Financial Statements
For the Year Ended 30 June 2016
26. Related Party Transactions
Total amounts receivable and payable from entities in the wholly-owned
group (see Note 24 for details of controlled entities) at balance date:
Non-Current Receivables
Loans to controlled entities
Non-Current Payables
Loans from controlled entities
Consolidated
2016
$
2015
$
12,669,799
11,724,203
–
–
Transactions with Associate – Angka Alamjaya Sdn Bhd (AASB)
During the financial year the Company incurred costs of $nil (2015: $296,963) in respect of AASB’s operations on
a reimbursable basis. As at 30 June 2016 an amount of $57,779 (2015: $700,020) has been reimbursed to the
Company with an amount receivable of $44,037 written off as unrecoverable, and an amount of $nil (2015: $101,816)
is outstanding as at 30 June 2016 (Note 7).
27. 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 26 July 2016 the Company completed the issue of 160,500,000 ordinary fully paid shares at 1.6 cents
per share pursuant to a share placement raising $2,568,000 before costs.
n On 23 August 2016 the Company issued a scoping study in respect of the heap leach production opportunity
at the Eugenia deposit at the Mt Coolon Gold Project.
n On 5 September 2016 the Company lodged a prospectus in relation to a non-renounceable entitlement offer
of options to raise up to $610,175.
28. Dividends
There are no dividends paid or payable during the year ended 30 June 2016 or the 30 June 2015 comparative year.
29. 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 2016.
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 2016.
62 GBM Resources Annual Report 2016
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 (now DGO Gold Limited) 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
$850,000
Shares transferred
50 million shares at fair value of 2.3 cents per share1
Total Consideration Payable
Fair Value ($)
$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.
Upon settlement an amount of $50,000 was payable to Drummond Gold Limited (now DGO Gold Limited) pursuant
to the transaction pending completion of administrative matters relating to existing royalties (Note 12). Subsequently
$37,500 was paid to re-purchase a royalty over the project area. A minor royalty remains over certain prospects at
the project and the Group has retained the remaining $12,500 payable to DGO to settle this outstanding royalty.
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 equipmenti
Capitalised exploration costs (Note 9)
Rehabilitation provision (Note 14)
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 13)
Total cash paid
$
91,795
6,772
42,686
1,123
142,376
850,000
(50,000)
800,000
GBM Resources Annual Report 2016 63
Notes to the Financial Statements
For the Year Ended 30 June 2016
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
Profit/(loss) for the year
Other comprehensive income
Total comprehensive profit/(loss)
Contingent liabilities
For full details of contingent liabilities see Note 29.
Commitments
For full details of commitments see Note 21.
2016
$
2015
$
489,218
15,620,201
1,230,271
10,577,944
16,109,419
11,808,215
(324,102)
–
(324,102)
(616,848)
–
(616,848)
15,785,317
11,191,367
28,785,654
–
–
(13,000,337)
27,372,099
323,733
400,000
(16,904,465)
15,785,317
11,191,367
3,180,395
–
(4,545,251)
–
3,180,395
(4,545,251)
64 GBM Resources Annual Report 2016
Directors’ Declaration
For the Year Ended 30 June 2016
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 2016 and of its
performance for the year then ended; and
ii.
complying with Accounting Standards and Corporations Regulations 2001.
b)
c)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
the financial statements and notes are in accordance with International Financial Reporting Standards
issued by the International Accounting Standards Board.
2. This declaration has been made after receiving the declarations required to be made to the directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2016.
This declaration is made in accordance with a resolution of the Board of Directors.
Peter Thompson
Executive Chairman
Dated this 14th day of September 2016
GBM Resources Annual Report 2016 65
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 2016, the
consolidated statement of profit and 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.
66 GBM Resources Annual Report 2016
47
Auditor’s opinion
In our opinion:
(a)
the financial report of GBM Resources Limited is in accordance with the Corporations Act
2001, including:
(i)
(ii)
giving a true and fair view of the Group’s financial position as at 30 June 2016 and of its
performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations 2001;
and
(b)
the financial report also complies with International Financial Reporting Standards as disclosed
in Note 1(b).
Report on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended 30 June
2016. 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 2016
complies with section 300A of the Corporations Act 2001.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
14 September 2016
D I Buckley
Partner
48
GBM Resources Annual Report 2016 67
ASX Additional Information
Pursuant to the Listing Rules of the Australian Securities Exchange Limited, the shareholder information set out
below was applicable as at 12 September 2016.
a. Distribution of Equity Securities
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Quoted Shares (GBZ)
Number
of Holders
51
68
131
452
283
985
Securities
Held
10,266
261,064
1,151,920
18,780,054
793,363,671
813,566,975
There are 470 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
Longru Zheng
Chew Leok Chuan
c. Twenty Largest Shareholders
Shareholder
Citicorp Nominees Pty Ltd
BNP Paribas Nominees Pty Ltd
Longru Zheng
HSBC Custody Nominees (Australia) Limited
Chew Leok Chuan
Weijun Chen
Bikun Lin
Richgroup Holdings International Pte Ltd
Kok Yong Lim
BNP Paribas Nominees Pty Ltd
Superfine Nominees Pty Ltd
Lay Hong Lim
Cheng Ee Huang
Sung Yoon Chon
Neil Norris
Bradley Green
KH & RL Payne
De Gracie Nominees Pty Ltd
Kevin Hendry
Vissing Holding Pty Ltd
Shares
Held
88,718,593
71,731,560
Shares
Held
158,868,208
118,435,775
88,718,593
70,201,438
61,598,226
39,520,100
32,261,307
22,000,000
20,000,000
12,219,618
11,200,000
6,943,346
6,400,000
5,693,896
5,600,000
5,000,000
4,770,000
4,375,000
2,833,334
2,683,335
% of Issued
Capital
10.90%
8.82%
% of Issued
Capital
19.53%
14.56%
10.90%
8.63%
7.57%
4.86%
3.97%
2.70%
2.46%
1.50%
1.38%
0.85%
0.79%
0.70%
0.69%
0.61%
0.59%
0.54%
0.35%
0.33%
Total
679,322,176
83.50%
68 GBM Resources Annual Report 2016
d. 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.
e. Restricted Securities
There are no restricted securities.
GBM Resources Annual Report 2016 69
This page has been left blank intentionally.
70 GBM Resources Annual Report 2016
CED Bungalien Brothers
Corporate Directory
Directors
Peter Thompson – Executive Chairman
Hun Seng Tan – Non-Executive Director
Neil Norris – Executive Director – Exploration Director
Company Secretary
Kevin Hart
Registered Office
Suite 8, 7 The Esplanade
Mt Pleasant WA 6153
AUSTRALIA
Telephone: +61 8 9316 9100
Facsimile: +61 8 9315 5475
Principal Place of Business
Suite 8, 7 The Esplanade
Mt Pleasant WA 6153
AUSTRALIA
Telephone: +61 8 9316 9100
Facsimile: +61 8 9315 5475
Exploration Office
10 Parker Street
PO Box 658
Castlemaine VIC 3450
AUSTRALIA
Telephone: +61 3 5470 5033
Auditors
HLB Mann Judd
Level 4, 130 Stirling Street
Perth WA 6000
AUSTRALIA
Share Registry
Advanced Share Registry Services
110 Stirling Highway
Nedlands WA 6009
AUSTRALIA
Telephone: +61 8 9389 8033
Facsimile: +61 8 9262 3723
Securities Exchange Listing
GBM Resources Limited – shares are listed on the
Australian Securities Exchange (ASX Code: GBZ)
Solicitors
Steinepreis Paganin
Lawyers and Consultants
Level 4, The Read Building
16 Milligan Street
Perth WA 6000
AUSTRALIA
Website and e-mail address
Website: www.gbmr.com.au
Email:
admin@gbmr.com.au
GBM Resources Annual Report 2016 71
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