ABN 91 124 752 745
Contents
Chairman’s Report
Our Vision – Our Values – Corporate Strategy
2017 Highlights Summary
Company Snapshot – GBM Project Locations
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
1
2
3
4
5-22
23
24-26
27
28-34
35
36
37
38
39
40-64
65
66-69
70-71
73
Chairman’s Report
Dear Fellow Shareholders
GBM Resources continues to actively pursue its key objective of developing
and extending the known resources within the Company’s highly
prospective tenement holding in the Drummond Basin, Queensland.
Over the last 12 months we have achieved a number of key milestones in achieving this objective and are well
on the way with investigating options for near-term gold production and growth.
Our Mount Coolon Gold Project has continued to be our core focus and we have completed a range of studies
and field activities throughout the year to assess the feasibility of recommencing mining at Mount Coolon and we
have taken very positive steps to move the assessment forward and commenced a Scoping Study. The study will
incorporate the gold resources of Eugenia, Koala and Glen Eva deposits.
We also increased the size, scope and viability of the Mount Coolon Gold Project with the announcement in
June 2017 of a significant resource increase at the Glen Eva gold deposit. The remodelling of the resource
was undertaken to reflect the option for open pit mining methods as
a more effective mining method resulting in a significant 77 per cent
increase in contained gold. This increase brings the global gold
resource of Mount Coolon Project to contain an estimated
343,500 ounces of gold.
successful progression of
“This year has seen the
This confidence in GBM’s future in the Drummond Basin has
seen an increased optimism together with the Company’s
exploration strategy aiming to extend the current resource base
in the Mount Coolon area with the objective of building resources
in excess of 1 million ounces of contained gold.
the Company’s resource
expansion strategy, delivering
a significant increase in
While Mount Coolon is commanding a great deal of time and
energy, the exploration work done by the Company at Mount
Morgan continues following the re-classification of Mount Morgan as a porphyry-related deep epithermal style
last year. The focus has been around unlocking the potential higher-grade mineralisation zones by undertaking a
project wide data compilation and review. One new development is that field activity has defined for the first time
a continuous fault, sulphide alteration and lode quartz corridor of at least 5km in strike length and 500m wide
enclosing the Mount Usher Gold Prospect. We believe that this Mount Usher fault corridor has the potential for
new gold discoveries.
Mount Coolon’s gold resource”
We have also continued into our sixth 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.
Looking ahead, we will continue to unlock the potential of our extensive prospective tenement holdings, identity
opportunities and pursue investment opportunities where we see value.
On behalf of the Board, I would like to thank GBM shareholders and all our employees and contractors who have
made this a successful year, and look forward to your continued support.
Yours sincerely
Peter Thompson
Executive Chairman
GBM Resources Annual Report 2017
1
Our Vision
GBM Resources Limited is focused on delivering value to our shareholders
through discovery, acquisition and development of projects in key commodities
of gold and copper in Australia.
Our Values
We are committted to achieving our vision in a safe and responsible manner with the
highest regard for the environment and communiities in which we operate.
SAFETY
SUSTAINABILITY
INTEGRITY
RESPONSIBILITY
We take care of
our safety, health
and wellness
by recognising,
assessing and
managing risk to
continue our goal
of zero harm.
We have the
highest regard
and support 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.
We deliver on our
commitments and
work together with
all stakeholders.
Corporate Strategy
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 discovery of world-class gold and copper-gold deposits.
4 Continue to consolidate and improve the quality of GBM’s highly prospective tenement holdings.
4 Apply a systems approach to mineral exploration and development.
4 Operate safely and effectively.
4 Maximise in-ground exploration expenditure.
2 GBM Resources Annual Report 2017
Highlights for 2017
➤ Sustainable Development
Our excellent record continues of zero LTI’s and environmental incidents this year – this is the sixth 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.
➤ Mount Coolon Gold Project, QLD
• The mineral resource at Mount Coolon Gold Project has been upgrade compliant with JORC code 2012
and increased to contain an estimated 343,500 ounces of gold with significant exploration upside.
• The gold resource at the Glen Eva Deposit increased by 77% to 0.9 million tonnes at an average grade
of 2.2 g/t containing an estimated 66,000 ounces.
• Two diamond holes completed at Glen Eva recorded significant intersections including 24.8m @ 6.2 g/t
from 100m (incl. 7.1m @ 19.8 g/t from 108m) in GLD002 and 24.6m @ 4.8 g/t from 132.8m.
• Successful diamond drill program of 1,983 metres over the old mine workings south of the Koala open cut.
The drilling has confirmed the presence of remnant high grade gold mineralisation.
• The Company commissioned Mining One Consultants to complete a Scoping Study in conjunction with a
range of other specialists, incorporating the current mineral gold Resources of the Eugenia, Koala and Glen
Eva Deposits to support process options for both on site treatment with a Carbon and Leach gold plant,
heap leaching and/or toll milling for near term development. The Studying is nearing completion.
•
In Conjunction with the Scoping Study, the Company continues to review and develop an exploration
strategy to extend the current resource base in the Mount Coolon area with the objective of building
resources in excess of 1 million ounces of contained gold.
• The Company’s management team has been strengthened by the appointed experienced Mining Engineer
Mr Ian Horton. Mr Horton’s commodity experience in gold together with his project skills to direct and
manage the development and mining phases of projects will be integral to recommencing the Mount
Coolon Gold Project.
➤ Mount Usher Gold Prospect (Part of the Mount Morgan Copper-Gold Project, QLD)
Historical (circa 1900) Mount Usher Gold Prospect produced over 150,000 ounces from alluvial and hard-rock
mining, hard-rock production averaged in excess of 1 oz per ton.
At the Mount Usher Gold Prospect recent field activities have identified:
• Results from rock chip samples confirm high grade gold is present.
• Potential new gold discovery with multiple lodes, strike length >5km and 500m wide.
• Very high grade epithermal-type gold system – similar metal suite and alteration style to Mount Morgan
Gold Mine.
• Two viable exploration models – high-grade epithermal fissure vein and high-grade bulk tonnage
Mount Morgan Mine style VHMS/Intrusive-Related composite.
• No drilling and only minimal modern exploration.
Extensive sampling and mapping over the >5km strike length is in progress.
➤ Pan Pacific Joint Venture (Projects located in North West Mineral Province, QLD)
Pan Pacific Copper Co Ltd, through their Australian registered subsidiary Cloncurry Exploration & Development
Pty Ltd have completed the farm in phase and have elected to continue exploration and development of the
tenement areas. The Joint Venture Agreement is expected to be finalised and executed in the December 2017
quarter. The Joint Venture Agreement with a major strategic global partner continues to support a key strategy
for GBM where the Iron Oxide Copper Gold projects can be further explored with the level of funding required
to realise a new discovery.
GBM Resources Annual Report 2017
3
Company Snapshot
Diversified portfolio of tenements –
located in world-class gold and copper regions in Australia
Figure 1: Project Location Plan.
GBM Project Locations
QUEENSLAND
Mount Coolon Gold Mines
100% wholly-owned
Project area: 770km2
Commodity: Epithermal and IRGS Gold
Resources: Totaling 343,500 ounces of gold
Plus additional exploration target between
120,000-230,000 ounces of gold at Bimurra Prospect
Mount Morgan
100% wholly-owned
Project area: 739km2 (granted),
Commodity: Gold and Copper-Gold Porphyry
Brightlands
100% wholly-owned
Project area: 143km2
Commodity: Defined Cu-U-Mo-REE-P
Resource: containing 108,000 t TREEYO, 97,000t Cu
14 M lbs U3O8
Pan Pacific Copper Joint Venture Projects
Project area: 544km2
Commodity: IOCG
Mount Margaret West, Chumvale Breccia and
Bungalien Projects
Mayfield
100% wholly-owned
Project area 172km2
Commodity: IOCG
VICTORIA
Malmsbury
100% wholly-owned
Project area: 25km2
Resource: Containing 104,000 ounces gold
Yea
100% wholly-owned
Project area 86km2
Commodity: IRGS
4 GBM Resources Annual Report 2017
Review of Operations
GBM’s vision and our exploration efforts are focussed on developing
and expanding our known resources and securing tenements and
projects that improve the quality and potential of our highly prospective
tenement holdings in Queensland and Victoria, Australia.
GBM has been successful in sourcing additional funding via both joint venture and capital raising activities which
has allowed the Company to maintain active exploration programs on its prospective tenements, particular on
its flagship project, Mount Coolon Gold Project.
Additional acquisitions that complement our activities are continually being assessed by the Company.
GBM tenements cover an area greater than 2,470 square kilometres in seven major project areas in Queensland
and Victoria.
Exploration activity during the year was focused on developing the known resources at Mount Coolon Gold Project
three main deposits being the Koala, Glen Eva and Eugenia to support options for near-term development.
The Company is also developing an exploration strategy to extend the current resource base in the Mount Coolon
area with the objective of building resources in excess of 1 million ounces of gold.
Total exploration expenditure on the Company’s tenements for 2017 was A$2.9 million compared to a total
of A$2.6 million in the 2016 year. GBM will be stepping up activities in the 2018 financial year with a focus
of bringing the Mount Coolon Gold Project into gold production.
Drilling at Koala Gold Mine with the Ross Mining open pit (1996) in the background
GBM Resources Annual Report 2017
5
Review of Operations
The Company remains strongly focused on delivery of shareholder value
through discovery, acquisition and development in its key commodities.
MOUNT COOLON GOLD PROJECT (100% owned GBM)
The Company holds a 100% interest in the Project which lies in the Drummond Basin, one of Queensland’s most
prolific gold provinces. The Drummond Basin is an established gold mining region which has proven fertile for
discovery of epithermal and intrusive relation gold systems. The Basin’s past production of more than 4.5 million
ounces of gold and has a total known gold related endowment in excess of 7.5 million ounces of gold.
Figure 2: Mount Coolon Project tenement group and prospect location plan.
6 GBM Resources Annual Report 2017
Mineralisation in the Drummond Basin is typified by epithermal style precious metal Deposits. Examples include
Pajingo (3.0 Moz), Wirralie (1.1 Moz), Yandan (0.6 Moz) and Koala. Epithermal mineralisation is typified by very
fine grained gold, sometimes occurring in electrum, in quartz veins and or breccias. These Deposits are variously
interpreted to have formed locally in extensional jogs or bends of transform fault systems.
The Project is located 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 770km2 and holds potential
for further significant discoveries.
Growing Resources
Glen Eva Gold Deposit
The re-modelling of the Glen Eva Gold Deposit Resource estimate to reflect open pit mining methods, has resulted
in a significant 77% increase to 0.93 Mt averaging 2.2 g/t Au containing an estimated 66,000 ounces of gold
(refer ASX announcement 1 June 2017). Re-modelling and estimation of the Resource reflects improvements in
knowledge of the deposit from recent drilling completed by GBM. In particular, recognition that in addition to the
known high-grade epithermal vein style mineralisation, there are broader zones of moderate grade material that
could potentially be extracted by open cut mining techniques. Mining of the existing open cut at Glen Eva ceased
in 1997 when the gold price was less than USD$300 per ounce.
The resource has been reported at a cut-off grade of 0.7 g/t Au, however there is significant tonnage of plus 0.5 g/t
Au material that may also be of interest subject to treatment costs of any future mining operation at Glen Eva.
Resource Classification
Indicated
Inferred
TOTAL
Cutoff
(Au g/t)
0.7
0.7
0.7
Tonnes
700,000
232,000
932,000
Au
(g/t)
2.2
2.3
2.2
oz
48,800
17,200
66,000
Table 1: Summary of Glen Eva Resource.
Figure 3: Graphs showing grade and tonnage curves for various cut-off grades at the Glen Eva Deposit.
There is a significant amount of 0.5 g/t to 0.7 g/t Au material in the deposit which may become of interest
should lower cost treatment options such as heap leaching be available.
The previously published Glen Eva Resource (refer to GBM Annual Report 2016) was made under the assumption
that mining would be undertaken by underground mining methods. As such, the gold grade domains were
interpreted at a much higher nominal grade (1.0 g/t).
This resource estimate has more tonnes at a lower grade, reflecting the different domaining strategy and
interpolation method. The new resource estimate is considered more appropriate for open pit mining as it reduces
the risk of ore loss due to interpretation errors in a geologically complex environment.
GBM Resources Annual Report 2017
7
Review of Operations
During the estimation process potential to increase the Glen Eva Resource was identified in the
following areas:
•
•
strike extensions at the western end of resource; and
depth extensions of high-grade material potentially amenable to underground mining.
In addition, it was recommended that the Company review exploration data between the Glen Eva pit and the South
Eastern Siliceous zone as these two prospects appear to be on the same mineralised trend and there is very little
drilling in the 5km between them. This will be addressed as part of a review of the entire ‘Glen Eva-Eugenia Corridor’
which has a strike extent in excess of 20 kilometres.
Glen Open Pit Drilling
A two hole program comprising 2 diamond drillholes for 343 metres of drilling was completed at Glen Eva. While
the key purpose of drilling these holes was to obtain samples for a range of studies including metallurgical testwork,
they have provided strong confirmation of the existence of high-grade gold mineralisation at Glen Eva
and are in line with expectations for this high-grade deposit.
Drillhole GLD0001 intersected a zone of strong epithermal veining and mineralisation within a very wide alteration
zone which included a downhole interval from 146.0 metres of 13.0 metres averaging 3.6 g/t Au and 13.7 g/t Ag,
including 4.4m averaging 9.5 g/t Au and 35.7 g/t Ag (Based on a 0.5 g/t Au cut-off), (refer ASX announcement
1 March 2017).
Geological logging and analytical results for GLD0002, the second of two holes drilled at Glen Eva confirmed that
a broad zone of epithermal gold mineralisation exists.
Based on a 0.5g/t gold (Au) cut-off grade, there are three zones of mineralisation intersected in this drill hole.
Two broad high-grade zones of epithermal gold mineralisation associated with quartz and sericite veins, generally
displaying banded textures defined by thin bands of fine sulphides, and locally massive chalcedonic quartz. The
first zone averaging 6.2 g/t Au over a 24.8m downhole interval from 100m to 124.8m and the second averaging
4.8 g/t Au over 24.6 metres downhole from 132.8 m. Within the first zone a high-grade interval of 7.1m at 19.8 g/t
Au was returned from 108m. A third zone of Au/Ag mineralisation of 9.2m averaging 1.9 g/t Au and 19.9 ppm Ag
from 164.8 (incl. 3.6m @ 3.5 g/t Au from 164.8 m) is also associated with banded epithermal vein development.
Silver correlates well with gold throughout the mineralised intervals, peaking at 134 ppm, (refer ASX announcement
22 March 2017).
Mining at Glen Eva circa 1996 (photograph courtesy Mr M Seed). The Glen Eva open cut mine yielded over 30,000 ounces.
8 GBM Resources Annual Report 2017
GLD0001: Best assays from rubbly quartz vein at top of tray and from banded vein at the bottom
(0.75m @ 22 g/t Au and 77 ppm Ag from 150m).
Banded epithermal quartz vein within the second of three mineralised zones from GLD0002.
This core tray averaged approximately 5 g/t Au. (Core tray is approximately 1m long.)
Commencement of drillhole GLD0002 at the Glen Eva Gold Mine (operated by Ross Mining circa 1996).
GBM Resources Annual Report 2017
9
Review of Operations
Koala Gold Deposit
GBM revised the Koala resource estimate in July 2016 after a review of the deposit geology supported remodeling
of the resource to incorporate lower grade minerlaisation that could be extracted by open pit mining both below
the Ross Mining open pit, and around the old underground workings. This work produced a 135% increase in
resources to 1.4 Mt averaging 2.6 g/t Au containing an estimated 118,700 ounces of gold (refer ASX release
8 July 2016).
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 in situ resource summary reported by resource category and oxidation state. Please note rounding:
tonnes (1,000t), grade (0.1g/t) and contained gold (100 ounces). (Refer ASX announcement 8 July 2017).
Koala open pit mined 1996. The softer, deeply weathered material is observed on the northern part of the deposit
and is not expected to require blasting for excavation
10 GBM Resources Annual Report 2017
Koala Central Area Drilling
Drilling was designed to provide additional geological data and sample material for a range of testing in the central
deposit area which was operated as an underground gold mine during the 1930s by Gold Mines of Australia
Limited. In total, the stage 1 and 2 programs comprised 35 diamond drill-holes for 1,983 metres of drilling.
Drill holes intersected mineralisation in a variety of settings including: both hanging and footwall to the stopes,
stope pillars, stope fill and in parallel lode structures. The results have confirmed the presence of remnant high
grade gold mineralisation in the quartz vein and breccia style settings throughout the old stope areas tested.
Significant intersections received are summarised opposite.
The results of the stage 1 and 2 drilling program over the central area will greatly improve the geological
understanding of the old working and provide essential data for the optimisation of the Koala Gold deposit.
Hole Location
Mineralisation Intersection
Hole ID
KLRD0002
KLRD0005
KLRD0007
KLRD0012
KLRD0014
KLRD0018
KLRD0020
KLRD0021
KLRD0024
KLRD0027
KLRD0028
KLRD0031
KLRD0033
including
including
including
including
including
including
including
including
including
including
including
m
From
44.0
46.0
28.0
41.3
25.0
26.0
30.2
30.2
67.4
67.4
30.0
30.6
69.2
71.7
51.3
69.0
71.7
187.0
194.0
206.4
206.4
56.6
79.0
79.5
19.0
24.0
68.0
m
To
47.5
46.9
50.0
46.0
28.0
27.0
34.0
31.0
70.1
68.5
34.0
31.3
70.7
72.5
57.3
77.0
72.6
195.0
195.0
209.0
207.5
59.7
93.0
81.4
27.0
26.0
69.4
DH Length
m
True Width
m
Grade
g/t Au
G*M
True Width
3.5
0.9
22.0
4.7
3.0
1.0
3.8
0.8
2.7
1.1
4.0
0.7
1.5
0.8
6.0
8.0
0.9
8.0
1.0
2.6
1.1
3.1
14.0
1.9
8.0
2.0
1.4
1.2
0.3
11.3
2.4
2.1
0.7
2.7
0.6
2.0
0.8
3.2
0.6
0.8
0.4
4.5
4.9
0.6
6.7
0.8
2.2
0.9
2.2
7.4
1.0
6.4
1.6
1.1
14.7
55.7
2.0
6.5
7.1
19.3
3.1
11.4
3.9
8.6
3.5
16.4
12.5
44.2
1.7
1.1
6.7
3.1
6.5
12.3
24.8
2.0
1.8
4.3
22.5
85.0
2.0
17.3
16.7
22.5
15.7
15.0
13.7
8.4
6.5
7.8
6.9
11.2
9.8
9.4
17.7
7.7
5.4
4.0
20.8
5.5
26.8
22.8
4.4
13.3
4.3
144.0
136.0
2.2
Table 3: Stage 1 and 2 drilling results.
(Full results are listed in Table 2 at the end of the ASX announcement dated 27 April 2017.)
GBM Resources Annual Report 2017 11
Review of Operations
Scoping Study Commissioned
During the past year the Company has completed a range of studies and field activities to assess the potential
for recommencing mining at Mount Coolon.
The Scoping Study was commissioned in July 2017 and will incorporate the current mineral gold resources of
the Koala, Glen Eva and Eugenia deposit which are estimated to contain a combined 343,500 ounces of gold.
Process options to be considered will include both on site treatment with a Carbon in Leach gold plant,
Heap Leach and/or Toll Milling.
The Scoping Study is also reviewing the potential of new development options and is designed to bring together
key aspects of the work completed to date into one coherent document providing a blue print for the future
redevelopment of the Mount Coolon Project.
Figure 4: Koala Stopes Long Projection showing all historic and GBM Phase 1 & 2 drill hole pierce points.
Significant intersections (>5 GM true width) are annotated with grade and true width.
(For drilling details see ASX announcement 27 April 2017 JORC Table 1).
12 GBM Resources Annual Report 2017
View of the old Koala Gold Mine from Mount Coolon.
Additional new developments under review include:
i.
Inclusion in the Scoping Study of a starter pit south of the current Koala North pit which may represent
a lower start up capital cost and an improved time line regarding the environmental approval processes.
ii. At Koala the main decline and shaft are reported to be in good condition and there is potential to go
underground to access ore below the floor of the current pit design, potentially increasing gold production
at Koala.
iii. Consideration of a staged approach to construction of the processing facility which has been designed based
on a relocatable CIL plant. The CIL circuit to be constructed as phase one which would provide the flexibility to
initially treat the old tailings material. The second construction phase to follow with the crushing and grinding
circuits to process fresh ore.
Key tasks being undertaken in the Scoping Study to include:
•
Re-optimisation of the Koala, Glen Eva and Eugenia open pit designs based on upgraded resources using
inputs derived from recently completed metallurgical testwork, current plant design and geotechnical data
from recent drilling.
•
Preliminary treatment plant design and scale.
• Mine layout design and infrastructure.
•
Tailings Storage.
• Water management plan.
• Ore sale and or toll milling opportunities.
Since acquiring the Mount Coolon Gold Project (MCGP) the Company has been updating and expanding the known
resources at Koala, Glen Eva and Eugenia, to support options for near term production.
The Study is nearing completion.
GBM Resources Annual Report 2017 13
Review of Operations
Future Exploration at Mount Coolon
The Mount Coolon Gold Project holds significant potential for resource growth through further exploration. Following
a high level review of the known deposits, prospects and regional geology, the company will seek to identify and
develop models for the mineralisaing systems in the project area. This will assist in developing a detailed exploration
program targeting significant resource growth. It is envisaged that resource growth will be systematically achieved by
programs seeking to grow resources by targeting on three levels:
1.
Incremental growth of known deposits (Koala, Glen Eva and Eugenia).
2. Resource definition at advanced prospects within six identified gold systems.
3. New grass roots discoveries, a number of high order geochemical targets already defined in key
structural corridors.
The Company’s objective is to very significantly increase the total project resource base in the short to medium term
to support and grow Mount Coolon as a centre for gold production.
1.
Incremental Growth
Each of the three known deposits within the MCGP hold potential for additional resource growth.
Koala deposit has been mined over a strike length of almost one kilometre in a single structure with over 375,000
ounces of gold in combined production and resources already known. This structure remains open down plunge to
north with a magnetic trend and IP feature supporting extension, previous drilling appears to have missed the zone.
The structure is poorly defined to the south and down dip, also requiring further assesment
Glen Eva remains open to south east, high grade mineralisation recently drilled in pit wall. The current resource
is limited at depth only by drilling.
Eugenia is unmined and hosts a significant resource containing over 150,000 ounces of gold, which, based on
available geochemistry, geophysics and limited scout drilling appears to be part of a much larger mineralising
system. Potential for the deposit to a high grade feeder system has been suggested, more drilling is required.
These programs have the potential of adding to the resource base and potential mine life in the short term and will
be a high priority.
2. Resource Definition
The Project contains a number of key target areas where previous geochemical surveys and drilling has identified
gold mineralisation, but where the mineralisation is not sufficiently understood or tested to estimate a resource.
In addition there are areas of low magnetic response which may represent strong hydrothermal alteration which have
not been fully understood and require review and testing. These areas require some additional background work
and field inspection before being prioritised but include the following prospects or areas: South East Silica Zone,
Blackbutt/Canadian/Last Stand, Eugenia Magnetic targets, Sullivan’s, Bimurra, Conway, Verbena Sinter.
3. New Grass Roots Discoveries
Known deposits within the Drummond Basin are frequently associated with NW trending structural corridors
identified in regional magnetic field data which are interpreted to play a significant role in focussing mineralising
fluids essential for gold deposit formation. Eight such structural corridors have been identified passing through
the MCGP tenements – these are shown on the figure opposite.
All of the deposits and prospects discussed above fall on one of these corridors. It is proposed that these will be
prioritised and explored, initially with geological mapping, soil geochemistry and later with IP and scout drilling.
Initial work has confirmed that significant parts of these corridors are obscured by often thin sequences of post
mineralising sediments and volcanics. If this is the case, some previous geochemical surveys may not have been
appropriate to ‘see’ through these cover sequences.
14 GBM Resources Annual Report 2017
Figure 5: Plan showing Glen Eva, Eugenia and Koala Gold deposits, known gold prospects and geophysical targets.
Conclusion
Exploration potential in the region and specifically within the MCGP tenement package is considered to be very high
considering that:
•
•
Known deposits appear to remain open at depth and along strike;
Significant potential exists to increase resource base with further drilling to upgrade areas within the existing
tenure; and
•
Numerous significant regional targets remain to be investigated.
The Company view is that the tenement package does hold potential for the discovery of additional high grade
epithermal or IR gold deposits containing in excess of 0.5 M ozs and the discovery of bulk mineable orogenic
gold deposit of >1 M ozs.
GBM Resources Annual Report 2017 15
Review of Operations
MOUNT MORGAN PROJECT, QUEENSLAND (100% owned GBM)
Porphyry Copper-Gold
The Mount Morgan Project is adjacent to the world-class Mount Morgan
Gold Mine which has produced over 8 million ounces of gold and 400,000
tonnes of copper as is one of the largest known porphyry copper systems
in Eastern Australia.
The tenement package which is located approximately 50kms west of Rockhampton in North Queensland
incorporates 11 granted leases covering a total area of approximate 781km2 and holds highly prospective tenements
including the Smelter Return and Limonite Hill prospects, other buried targets within the Bajool, Sandy Creek and
Oakey Creek prospects, and the Mount Gordon porphyry system.
Figure 6: GBM Prospects and tenements areas at Mount Morgan Project. Mount Usher labelled as number 2.
16 GBM Resources Annual Report 2017
Mount Usher Gold Prospect
Within the Mount Morgan Copper-Gold Project the
Company’s field activities have focussed on the
Mount Usher Gold Prospect.
Initial results from sampling, mapping and data review
at the historical Mount Usher gold field, located near
the Mount Morgan mine has resulted in the following
assessment.
•
Field mapping and sampling has identified:
– Results from rock chip samples confirm high
grade gold is present.
– Potential new gold discovery with multiple
lodes, strike length >5km and 500m wide.
– Very high grade epithermal-type gold system
– similar metal suite and alteration style to
Mount Morgan Gold Mine.
– Two viable exploration models – high-grade
epithermal fissure vein and high-grade bulk
tonnage Mount Morgan Mine style VHMS/
Intrusive-Related composite.
•
•
•
Historical (circa 1900) Mount Usher Gold Prospect
produced over 150,000 ounces from alluvial and
hard-rock mining, hard-rock production averaged
in excess of 1 ounce per ton.
No drilling and only minimal modern exploration.
Extensive sampling and mapping over the >5km
strike length in progress.
The Mount Usher area has historically produced more
than 150,000 ounces of gold from rich alluvial deposits
and from underground mining of very high grade
epithermal-type quartz vein hosted gold mineralisation.
The main workings at Mount Usher are hosted by
Mount Warner Volcanics, the same rock suite that
hosts Mount Morgan located 12km to the south-west.
A major north-east trending lineament links the two
deposits. The Mount Morgan Lineament is defined by
mapped faults, magnetics and gold occurrences and
is orientated parallel with Mount Morgan mine faults,
(refer ASX announcement 12 September 2017).
Recent work by GBM has noted strong similarities
between the two deposits, most notably: similar primary
and secondary metal suite, presence of intense silica-
pyrite mineralisation within the ore zones and proximal
chlorite-sericite-epidote-jasper alteration, fault geometry
relationships, and proximity to large felsic-intermediate
intrusive bodies.
The acquisition in 2015 of EPM25678 was justified
by Mount Usher’s status as the second largest gold
producer in the field after Mount Morgan, the prospective
structural and host rock setting and limited historical
exploration including no record of any prior drill testing.
During June and August this year, GBM undertook an
initial program of surface mapping, rock-chip sampling
and airborne drone topographic-imagery surveying.
A review of historical mine references and modern
exploration was also completed. Mapping has defined
for the first time a continuous fault, sulphide
alteration and lode quartz corridor of at least
5km in strike length and 500m wide enclosing
the Mount Usher mine and numerous lesser
production centres including the Anglo Saxon,
Caledonian and Victor mines. This fault zone is
hosted by mixed Devonian volcanic and sedimentary
rocks at the eastern and western ends and by magnetic
diorite or tonalite in the central zone. Gold mineralisation
has developed in all rock types within the corridor.
Results for the first 19 rock-chip sample assays
received from ALS Laboratories confirm high-grade
gold is present in pyritic/limonitic quartz veins within the
volcanic package at Mount Usher mine and the diorite
at the Caledonian mine along strike to the west (peak
14.4 g/t Au). (full results listed in ASX announcement
dated 12 September 2017). Anomalous Ag, Cu, Pb and
Zn is also present, confirming the old miners’ reports of
‘blackjack(sphalerite), galena and carbonates of copper’
with pyrite in the ore zone. Highly anomalous Te (peak
10.1 ppm) shows a strong association with gold and
silver in conjunction with Mo, Bi, Sb and As. This metal
assemblage is similar to that reported from the ore
system at Mount Morgan (Lawrence, 1974), with the
addition of silver from galena, and is characteristic of
higher-temperature epithermal and/or intrusive-related
gold systems.
Modern analysis indicates that the overprinting of
pre-existing volcanic massive sulphide mineralisation
(VHMS) by later intrusive-related Au-Cu bearing fluids
from the adjacent tonalite unit was responsible for
ore genesis at Mount Morgan. The fluid signature and
the metal assemblage are indicative of an epithermal
setting for the main mineralising event (Ulrich, 2002),
a theory supported by recent work by Corbett for
GBM (Internal report, 2015). GBM will investigate the
possibility that the Mount Usher epithermal-style fissure
vein mineralisation may be associated with a large,
blind Mount Morgan analogue.
Next Steps
GBM believes the Mount Usher fault corridor is highly
prospective for near surface, high-grade vein-hosted,
epithermal gold-silver mineralisation and that evidence
is mounting for the existence of a deeper, large tonnage,
high-grade Mount Morgan analogue within the prospect
area. It seems remarkable given the extensive modern
exploration effort to find another Mount Morgan that
such limited attention has been paid to the second
biggest producer, Mount Usher.
Further work at Mount Usher will include continued
mapping and comprehensive rock-chip and soil
sampling across the entire fault zone. Due to the steep
topography and multiple parallel lodes, 3D modelling
using GBM generated data and historical mine data
will be critical for drill planning. A small diamond drilling
program of three to four circa 300m holes in the vicinity
of the main workings is scheduled late in 2017. Electrical
geophysical methods will be considered to test for
large, blind, massive sulphide Mount Morgan style
mineralisation.
GBM Resources Annual Report 2017 17
Review of Operations
Other Exploration Interests
BRIGHTLANDS AND MILO
IRON-OXIDE COPPER-GOLD (IOCG) REE PROJECT (100% owned GBM)
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, approximately 20km west of Cloncurry
on the Barkly Highway, far northwest Queensland. Brightland contains numerous targets for structurally hosted and
IOCG style copper and gold copper mineralisation.
Previous exploration by GBM has successfully delineated a large polymetallic resource at Milo. However, many
targets remain to be fully evaluated, and the Milo area still holds potential for significant resource extension.
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).
The Company believes that the long term nature of the project and the positive outlook for the key commodities to be
produced, combined with favourable exchange rate movements provide firm support for the future development of Milo.
Figure 7: Brightlands tenement area showing prospects and key target areas.
18 GBM Resources Annual Report 2017
MAYFIELD IOCG PROJECT (100% owned GBM)
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.
Figure 8: Mayfield Project tenement Location Plan showing areas of anomalous copper geochemistry in soil.
GBM Resources Annual Report 2017 19
Review of Operations
PAN PACIFIC COPPER CO. Ltd JOINT VENTURE
Iron Oxide Copper Gold (IOCG) Style Projects in the Mount ISA Region
During 2016-17 Pan Pacific Copper through their Australian registered subsidiary Cloncurry Exploration &
Development Pty Ltd (CED) have completed the Farm In Phase covering the Mount Margaret, Bungalien,
Chumvale (within the Brightlands) and Talawanta/Grassy Bore Project areas.
Joint Venture Agreement has been finalised and is scheduled to be executed in the December 2017 quarter.
CED will hold approximately 51.3% and GBM 48.7% interest respectively in the projects. GBM will continue as
manager and retain its free carried interest of 10% through to completion of a bankable feasibility study upon
election to proceed with the Joint Venture. The signing of a Joint Venture Agreement will represent a key step
forward in that the projects can be further advanced and have the required level of funding to target a potential
new discovery.
Figure 9: GBM-CED Joint Venture tenement and project location plan.
20 GBM Resources Annual Report 2017
Figure 10: Tenement Location Plan of the Malmsbury and Yea Projects.
Victoria Gold Projects
INTRUSIVE RELATED GOLD SYSTEMS (IRGS)
MALMSBURY GOLD PROJECT (100% owned GBM)
The Malmsbury Gold Project is part of a large Intrusive Related Gold
System (IRGS) centred on Belltopper Hill. 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 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 system is based on mineralisation within a 2 kilometre section of the Drummond
North Goldfield which remains open in all directions.
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.
GBM Resources Annual Report 2017 21
Review of Operations
YEA W-MO-AU IRGS PROSPECT (100% owned GBM)
Work by GBM has focussed on the Monkey Gully and Mumbil Mines prospects near Yea in the north-west of the
lease area. Exploration has included extensive ridge and spur and grid soil sampling, prospect-scale mapping and
a small diamond drilling program. Drilling intersected 17 metres averaging 0.19% W2O3 and 262 ppm Mo from
101 metres downhole, including 8 metres averaging 0.34% W2O3 and 493ppm Mo, (refer ASX Announcement,
Report for the Quarter ended 30 September 2011). A review of previous exploration data has also highlighted a
number of significant geochemical and geophysical anomalies which represent targets for future exploration.
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.
Tenements
GBM Resources strong tenement portfolio consists of 29 Exploration Permits for Minerals and four Mining Licences
in five provinces around Queensland and Victoria all of which are granted covering a total of 2,350 square kilometres
in the country’s most prospective areas.
A review of the tenement holding resulted in the surrender of eight exploration licences (862 square kilometres).
Renewal Applications have been lodged for all tenements to expire in 2017.
All of these licences (see tenement schedule) are held 100% by the Company (or its wholly owned subsidiaries).
A farm-in agreement exists between GBM Resources and Cloncurry Exploration and Development Pty. Ltd.
(a subsidiary by Pan Pacific Copper), will hold approximately 51.3% of Mount Margaret and Bungalien Projects
once the Joint Venture Agreement is executed in the December 2017 quarter..
A summary of GBM’s tenements is provided in Table 4 on page 23 of this report.
Inspecting workings at Mount Usher.
Epithermal vein in float, Mount Usher.
22 GBM Resources Annual Report 2017
Tenement Schedule
Project/Name
VICTORIA
Malmsbury
Belltopper
Yea
Monkey Gully
QUEENSLAND
Mount Morgan (Project Status)
Dee Range
Boulder Creek
Black Range
Smelter Return
Limonite Hill
Mt Hoopbound
Limonite Hill East
Mt Victoria
Bajool
Mountain Maid
Moonmera
Mount Isa Region
Mount Margaret (Project Status)
Mt Malakoff Ext
Cotswold
Dry Creek
Dry Creek Ext
Mt Marge
Corella
Tommy Creek
Brightlands
Brightlands
Bungalien
Bungalien 2
The Brothers
Mayfield
Mayfield
Mt Coolon
Mt Coolon
Mt Coolon North
Mt Coolon East
Conway
Koala 1
Koala Camp
Koala Plant
Glen Eva
TOTALS
Tenement
No.
Owner
Manager
Interest
Status
Approx Area
(km2)
EL4515
GBMR*1/Belltopper Hill
GBMR
100%
pending
EL5293
GBMR
GBMR
100%
Granted
EPM16057
EPM17105
EPM17734
EPM18366
EPM18811
EPM18812
EPM19288
EPM25177
EPM25362
EPM25678
EPM19849
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR*3
EPM16398
GBMR*2/Isa Tenements
EPM16622
GBMR*2/Isa Tenements
EPM18172
GBMR*2/Isa Tenements
EPM18174
GBMR*2/Isa Tenements
EPM19834
EPM25545
EPM25544
GBMR/Isa Tenements
GBMR/Isa Tenements
GBMR/Isa Tenements
EPM14416
GBMR*2/Isa Brightlands
EPM18207
GBMR*2/Isa Tenements
EPM25213
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
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
EPM19483
GBMR*2/Isa Tenements
GBMR
100%
Granted
EPM15902
EPM25365
EPM25850
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
25
86
36
88
81
62
153
23
16
3
111
26
16
85
16
189
23
3
59
33
127
16
120
10
172
325
146
260
39
0.7
0.0
1.0
1.3
2,350
Brightlands West Ext.
EPM18672
GBMR/Isa Brightlands
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 4: GBM Tenement summary table as at 30 June 2017.
GBM Resources Annual Report 2017 23
Annual Mineral Resources Statement
The following Annual Statement of Mineral Resources statement reflects
the Company’s mineral resources (including wholly owned subsidiary
companies) as at 30 June 2017.
For the purpose of preparing this Annual Statement
of Mineral resources as at 30 June 2017, 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.
• Gold price forecast have generally strengthened in
the last 12 months with most forecasting the price
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.
•
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.
In relation to commodities key to GBM’s resource base
the company holds the following views:
•
• Operating costs in the industry remain at
levels significantly lower than at the end of the
commodities boom. In particular the availability
and cost of labour, fuel and mining equipment
remain at reduced levels.
The REE market remains complex, however
REE demand continues to grow and uncertainty
continues over the level of REE production sourced
from illegal mining in China. This is widely forecast
to result in supply shortages and price increases
in the rarer REE elements, particularly Neodymium,
in the medium to longer term.
•
AUS$ is widely tipped to fall from the current level
of around US$0.80 which would have a further
positive impact for Australian sourced metal
production.
The company believes that, considering the outlook
for commodity prices 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 the ASX announcement
on 1 June 2017 ‘Significant resource Increase at
Glen Eva Gold Deposit, Mount Coolon, Qld’.
The Glen Eva resource was re-estimated following
completion of 2 diamond drillholes and remodelling of
the resource to reflect the potential for extraction by
open pit mining methods.
The new estimate increased the contained gold by 77%
to 0.9 Mt averaging 2.2 g/t Au containing an estimated
66,000 ounces of gold. There were no other changes to
the Mount Coolon resource estimates to 30 June 2017.
South Shaft looking west to scarp, Moonmera.
24 GBM Resources Annual Report 2017
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 Open Pit
Total
114
114
1.6
1.7
6,200
6,200
370
50
9
429
1,305
2,127
3,432
700
114
1.7
6,200
4,561
2.8
3
1.6
2.8
0.9
0.9
0.9
2.2
1.3
33,500
5,100
400
39,000
39,300
750
230
980
219
62,300
1,195
101,600
1,414
48,800
232
189,400
2,626
2.1
3.9
2.5
0.7
1.2
1.1
2.3
1.8
51,700
1,110
28,500
280
124
80,200
1,514
5,100
1,524
45,500
3,322
50,600
4,846
17,200
932
148,000
7,291
2.4
3.7
1.6
2.6
0.9
1.0
1.0
2.2
1.5
85,000
33,700
6,600
125,300
44,400
107,800
152,200
66,000
343,500
0.4
2.0
1
0.4
0.4
0.4
0.7
Table 6: Mount Coolon Gold Project Global Resource Summary updated June 2017. Please note rounding
(1000’s tonnes, 100’s ounces, 0.1 g/t) may cause minor variations to totals. (Refer ASX announcement 1 June 2017).
Details of individual resources are located as follows: Koala Resources ASX release 8 July 2016 ‘Koala Gold
Resource Increased by 135%’ (CP K. Allwood), and for Eugenia Resources ASX release 23 August 2016 ‘Eugenia
Heap Leach Scoping Study Demonstrates Potential Economic Viability’, Mount Coolon Gold Project, Queensland
(CP S. McManus), Glen Eva resources ASX release 1 June 2017 ‘Significant resource increase at Glen Eva Gold
Deposit, Mount Coolon, Qld’ (CP K. Allwood).
Since acquiring the Mount Coolon Gold Project in April 2015, GBM resources has, through drilling, interpretation,
data collection and validation, increased the total gold resources at Mount Coolon Project by 139,500 ounces or
49.3% to 343,000 ounces.
Malmsbury Gold Project
The Malmsbury Gold Project is located in Victoria. For original release, refer to ASX release dated 19 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 22 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 2017 25
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 7: 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.
Copper staining on an outcrop near the Moonmera South shaft, Mount Morgan Project.
26 GBM Resources Annual Report 2017
Sustainable Development
GBM’s core values (refer to page 2) are taken seriously
by our staff and management. The company remains
committed to providing a safe and healthy work
environment for all of its employees, contractors,
consultants and visitors at all of our sites. Our aim is
to operate in a safe and environmentally responsible
manner that meets the industry’s highest standards.
We are committed to developing strong and lasting
relationships with our employees, and with the
communities in which we operate, as an essential
ingredient to realising the company’s vision. The
company is committed to maintaining regular and open
communication with the landholders and stakeholders
in the areas in which we operate. 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. Providing the facilities, equipment,
tools, procedures, safety programs and training allows
employees to carry out their assigned tasks in a safe
and appropriate manner.
Safety
Protection of the environment and the health and safety
of its people remain at the core of GBM’s culture. 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
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 (16,865). This compares to
the 2013/14 average LTIFR published by Safe Work
Australia for the Exploration sector of 2.8 (most recent
figure available).
GBM continued to demonstrate excellent results of zero
LTI’s, MTI’s and Environmental Incidents, the Company’s
will strive to maintain and improve these high Safety and
Environment standards.
Community & Environment
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 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 involvement with community, the company
supported Writing and Illustration workshops at the
Cloncurry Primary school. This was part of a program
of workshops conducted by the Children’s Charity
Network.
During the year now ended, GBM commenced
monitoring rehabilitation performance on the disturbed
areas around the Mount Coolon Gold Mine sites of
Koala and Glen Eva. Preliminary results from the initial
two surveys confirms that rehabilitation completed by
previous operators has been largely successful. The
company will continue to monitor this and to undertake
minor remediation and additional rehabilitation on areas
where these surveys identify it is necessary. In additional
baseline ecological surveys including flora and fauna
have been completed in both post wet and dry season
conditions at Koala, Glen Eva and Eugenia to assist in
future mine planning and environmental management
at these sites.
Achievements:
•
No lost time injuries were sustained during the
2016/17 field season (LTI frequency rate of 0.0
against an industry average of 2.8 (2013/2014).
•
•
•
No medically treated injuries were sustained during
operations in 2016/17.
No environmental incidents occurred during the
reporting period.
Refresher First Aid Courses were undertaken during
the year for all staff members.
• Ongoing reviews of GBM’s Risk Register and
procedures continued throughout the year.
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
GBM’s year-on-year safety performance (LTI’s)
against industry average
GBM Resources Annual Report 2017 27
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 2017.
Directors
The names of Directors in office at any time during or since the end of the year are:
Peter Thompson – B.Bus, CPA, FCIS
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 Mount 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 was appointed as a non-executive director of Nova MSC Berhad, a Malaysian public company
on 1 June 2017.
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 30 years’ experience gained in Australia and overseas. Previously 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
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 – BComm 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.
28 GBM Resources Annual Report 2017
Meetings of Directors
During the financial year, the following meetings of Directors (including committees) were held:
P Thompson
N Norris
H Tan
Directors’ Meetings
Number
Eligible
to Attend
11
11
11
Number
Attended
11
11
11
Principal Activities
The principal activity of the Group during the financial year was exploration and undertaking scoping studies
in respect of its gold projects in Australia.
Operating and Financial Review
During the financial year the Group’s activities were focussed on exploration at its wholly owned Mount Coolon Gold
Project. In addition, the Group undertook re-estimation of mineral resources and scoping studies at Mount Coolon.
Operating Results
The net loss after income tax attributable to members of the Group for the financial year to 30 June 2017 amounted
to $1,540,602 (2016: profit $3,180,395). The prior year profit included a gain of $5,299,614 on the recognition of
a financial asset in respect of shares of Anchor Resources Pte Ltd. The current year loss includes an impairment
charge of $1,242,164 in respect of the change in value of investments to 30 June 2017 (2016: $1,163,840).
In addition, the Group has recognised $163,142 in respect of exploration costs written off and expensed
(2016: $271,237).
Financial Position
At the end of the financial year, the Group had $739,718 (2016: $355,106) in cash on hand and on deposit. Carried
forward exploration and evaluation expenditure was $14,428,442 (2016: $11,350,307).
As at 30 June 2017 the Group recognised an asset amounting to $2,655,492 (2016: $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).
Equity Securities on Issue
Ordinary fully paid shares
863,566,975
653,063,975
Options over unissued shares
203,391,744
Nil
30 June 2017
30 June 2016
Ordinary Fully Paid Shares
During the year ended 30 June 2017 the Company issued the following ordinary fully paid shares:
•
•
•
3,000 ordinary fully paid shares on the exercise of options;
160,500,000 ordinary fully paid shares at 1.6 cents per share pursuant to a share placement; and
50,000,000 ordinary fully paid shares at a deemed price of 3 cents per share in lieu of cash repayment
of a loan (market price of GBM shares at the time of issue was 1.5 cents per share).
No shares have been issued between the end of the financial year and the date of this report.
GBM Resources Annual Report 2017 29
Directors’ Report
Equity Securities on Issue (continued)
Options over Ordinary Shares
During the year ended 30 June 2017, 203,391,744 options exercisable at 5 cents each and expiring 30 September
2019 were issued pursuant to a non-renounceable priority entitlement offer.
During the year ended 30 June 2017 no options have been cancelled.
No options have been issued, vested, exercised or cancelled between the end of the financial year and the date
of this report.
Significant Changes in State of Affairs
During the year the Company entered into a $10 million loan arrangement to fund the development of the Mount
Coolon Gold Project. A Deed of Settlement, Termination and Release was signed effective 31 March 2017 and
$1.5 million received pursuant to the agreement was settled by the issue of 50 million GBM shares.
During the year the Company entered into a binding heads of agreement (HOA) with WCB Resources Limited
regarding a proposed merger. The HOA was terminated on 31 March 2017.
There were no other 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:
•
In July 2017 the Company completed the sale of 14,018,618 shares in Anchor Resources Limited, receiving
a total of A$963,204 in sale proceeds.
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 2017.
Likely Developments and Expected Results of Operations
Comments on expected results of the operations of the Company are included in this report under the Review
of Operations.
Disclosure of other information regarding likely developments in the operations of the Company in future financial
years and the expected results of those operations is likely to result in unreasonable prejudice to the Company.
Accordingly, this information has not been disclosed in this report.
Environmental Issues
The Group holds participating interests in a number of exploration tenements. The various authorities granting such
tenements require the tenement holder to comply with the terms of the grant of the tenement and all directions
given to it under those terms of the tenement. There have been no known breaches of the tenement conditions,
and no such breaches have been notified by any government agencies during the year ended 30 June 2017.
30 GBM Resources Annual Report 2017
Remuneration Report (Audited)
The remuneration report is set out in the following manner:
•
•
•
•
Policies used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
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.
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.
2017
Short term
Post
Employment
Share Based
Payments
Directors
P Thompson
N Norris
H Tan
Salary
and fees
$
215,000
Other
$
Super-
annuation
$
Options/
shares
$
–
20,424
197,565
8,436
18,769
148,000
–
–
–
–
–
–
Total Directors
560,565
8,436
39,193
Performance Based
Payments as % of
remuneration
%
–
–
–
Total
$
235,424
224,770
148,000
608,194
GBM Resources Annual Report 2017 31
Directors’ Report
Remuneration Report (Audited) (continued)
2016
Short term
Post
Employment
Share Based
Payments
Directors
P Thompson
N Norris
H Tan
F Cannavo
Salary
and fees
$
215,000
Other
$
Super-
annuation
$
Options/
shares
$
–
20,425
200,000
8,436
19,000
104,000
15,000
–
–
–
1,710
Performance Based
Payments as % of
remuneration
%
–
–
–
–
Total
$
235,425
227,436
104,000
16,710
583,571
–
–
–
–
–
Total Directors
534,000
8,436
41,135
1 During the 2017 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.
2 During the 2017 financial year, the Company paid Mr Tan an amount of $100,000 in respect of his special duty role
in Singapore including recovery of outstanding debt and managing the Company’s interests and investments in the
Lubuk Mandi gold project and Anchor Resources Limited. This amount was paid in addition to his non-executive
director fees of $4,000 per month.
Included in director remuneration in the table above for 2016 are amounts of $96,635 that were accrued for
payment as at 30 June 2016.
See disclosure relating to service agreements for further details of remuneration of executive directors.
Options Provided as Remuneration
During the years ended 30 June 2016 and 30 June 2017 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 2016. 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.
32 GBM Resources Annual Report 2017
Remuneration Report (Audited) (continued)
Service Agreements (continued)
Neil Norris – Exploration Director
The service agreement has a term of 12 months from 1 September 2016. 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.
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
Options
Director
P Thompson
N Norris
H Tan
Ordinary shares
held at
1 July 2016
Movement
during the
financial year
Ordinary shares
held at
30 June 2017
Ordinary shares held
at the date of the
Directors’ Report
11,200,000
11,141,667
18,666,667
–
–
–
11,200,000
11,141,667
18,666,667
11,200,000
11,141,667
18,666,667
Options
held at
1 July 2016
Movement
during the
financial year1
Options
held at
30 June 2017
Options held at
the date of the
Directors’ Report
–
–
–
2,800,000
2,556,250
4,666,667
2,800,000
2,556,250
4,666,667
2,800,000
2,556,250
4,666,667
1 Options acquired pursuant to a non-renounceable entitlement offer.
Loans to Directors and Executives
There were no loans entered into with Directors or executives during the financial year ended 30 June 2017.
Other Transactions with Key Management Personnel
Other than the above, there are no transactions with Directors, or Director related entities or associates.
End of Remuneration Report
GBM Resources Annual Report 2017 33
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 22nd day of September 2017
Peter Thompson
Executive Chairman
34 GBM Resources Annual Report 2017
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 2017, I declare that, to the best of my knowledge and belief, there have been no
contraventions of:
(a)
the auditor independence requirements as set out in the Corporations Act 2001 in relation to the
audit; and
(b) any applicable code of professional conduct in relation to the audit.
This declaration is in relation to the GBM Resources Limited and the entities it controlled during the
period.
Perth, Western Australia
22 September 2017
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 WA 6849 | Telephone +61 (08) 9227 7500 | Fax +61 (08) 9227 7533
Email: mailbox@hlbwa.com.au | Website: 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 world-wide organisation of accounting firms and business advisers
10
GBM Resources Annual Report 2017 35
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For the Year Ended 30 June 2017
Revenue
Other gains and losses
Consulting and professional services
Corporate and project assessment costs
Depreciation
Employee benefits expense
Impairment expense
Exploration expenditure written off and expensed
Travel expenses
Administration and other expenses
Profit/(loss) before income tax
Income tax benefit
Profit/(loss) for the year
Note
3a
3b
4
4
10
4
5
Consolidated
2017
$
2016
$
114,211
266,167
750,000
(157,498)
(44,099)
(41,087)
(401,304)
(1,242,164)
(163,442)
(136,707)
(218,512)
5,299,614
(128,425)
(21,050)
(48,565)
(388,206)
(1,163,840)
(271,237)
(112,999)
(251,064)
(1,540,602)
3,180,395
–
–
(1,540,602)
3,180,395
Other comprehensive income
–
–
Total comprehensive income/(loss) for the year
(1,540,602)
3,180,395
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
6
6
(0.2)
(0.2)
0.5
0.5
Cents
Cents
The accompanying notes form part of these financial statements
36 GBM Resources Annual Report 2017
Consolidated Statement of Financial Position
As at 30 June 2017
Current assets
Cash and cash equivalents
Trade and other receivables
Investments – available for sale financial assets
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
Accumulated losses
TOTAL EQUITY
Note
20
7
10
7
8
9
10
11
12
13
15
15
The accompanying notes form part of these financial statements
Consolidated
2017
$
739,718
63,058
2,655,492
3,458,268
2016
$
355,106
95,309
–
450,415
754,904
14,428,442
116,501
75,075
412,121
11,350,307
156,605
4,135,774
15,374,922
16,054,807
18,833,190
16,505,222
255,283
255,283
706,907
706,907
323,851
323,851
396,054
396,054
962,190
719,905
17,871,000
15,785,317
31,801,764
610,175
(14,540,939)
28,785,654
–
(13,000,337)
17,871,000
15,785,317
GBM Resources Annual Report 2017 37
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2017
Consolidated
Note
Issued
capital
$
Option
reserve
$
payments Accumulated
reserve
$
losses
$
Total
$
Balance at 1 July 2015
27,372,099
323,733
400,000
(16,904,465) 11,191,367
Share
based
1,413,555
–
–
–
1,413,555
Shares issued (net of costs)
Transfer to accumulated losses
on expiry of options
Profit attributable to members
of the Company
13
15
15
–
–
Balance at 30 June 2016
28,785,654
Balance at 1 July 2016
28,785,654
Shares issued (net of costs)
13
3,016,110
Options issued pursuant
to non-renounceable
entitlement offer
Loss attributable to members
of the Company
15
15
–
–
(323,733)
(400,000)
723,733
–
–
–
–
–
610,175
–
3,180,395
3,180,395
–
(13,000,337) 15,785,317
–
(13,000,337) 15,785,317
–
–
–
3,016,110
–
610,175
–
–
(1,540,602)
(1,540,602)
Balance at 30 June 2017
31,801,764
610,175
–
(14,540,939) 17,871,000
The accompanying notes form part of these financial statements
38 GBM Resources Annual Report 2017
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2017
Note
Consolidated
2017
$
2016
$
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
20(c)
Cash flows from investing activities
Payments for bonds and security deposits
Proceeds on sale of available for sale investments
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 for loans advanced
Proceeds received on reimbursement by associate
9,315
6,553
–
18,049
(1,084,997)
(1,051,080)
(342,716)
387,270
–
145,979
(2,986,038)
6,000
(982)
(150,000)
–
10,685
73,361
100,000
131,858
(776,390)
(460,486)
–
–
(37,500)
1,103,770
(2,794,839)
–
–
–
57,779
Net cash flows (used in) investing activities
(2,940,487)
(1,670,790)
Cash flows from financing activities
Proceeds from the issue of shares and options
Share issue costs
Loans received
Net cash flows provided by financing activities
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
3,178,175
(301,996)
1,500,000
1,394,841
(16,180)
–
4,376,179
1,378,661
384,612
(752,615)
355,106
1,107,721
20(a)
739,718
355,106
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2017 39
Notes to the Financial Statements
For the Year Ended 30 June 2017
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 2017 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.
Going Concern Basis for the Preparation of Financial Statements
The financial statements have been prepared on the going concern basis which contemplates the continuity
of normal business activities and the realisation of assets and discharge of liabilities in the normal course of
business. The ability of the Group to continue to adopt the going concern assumption will depend on future
successful capital raisings, the successful exploration and subsequent exploitation of the Group’s tenements
and/or sale of non-core assets.
As at 30 June 2017 the Group has cash assets of $739,718, and total current liabilities at that date amounting
to $255,283. The loss for the 2017 financial year was $1,540,602 of which $1,242,164 related to impairment
charges recognised in respect of investments in foreign equity securities and a gain of $750,000 recognised on
the settlement of a $1.5 million loan liability by the issue of 50 million shares at 1.5 cents per share.
In July 2017, the Company received $963,204 on the sale of 14,018,618 shares in Anchor Resources Limited.
The balance of the Company’s investment in Anchor Resources Limited, comprising 17,610,618 shares, will be
tradeable from 17 September 2017 on the end of the restriction period.
The Directors will continue to manage the Group’s activities with due regard to current and future funding
requirements. The directors reasonably expect that the Company will be able to raise sufficient capital to fund
the Group’s exploration and working capital requirements, and that the Group will be able to settle debts as
and when they become due and payable. On this basis, the Directors are therefore of the opinion that the use
of the going concern basis is appropriate in the circumstances.
Should the Company be unable to raise the required funding, there is a material uncertainty that may cast
significant doubt on whether the company will be able to continue as a going concern and therefore, whether it
will be able to realise its assets and extinguish its liabilities in the normal course of business and at the amounts
stated in the financial report.
Adoption of New and Revised Standards –
Changes in accounting policies on initial application of accounting standards
In the year ended 30 June 2017, 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 2017. 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.
40 GBM Resources Annual Report 2017
1. Statement of Significant Accounting Policies (continued)
b) Statement of Compliance
The financial report was authorised for issue on 22 September 2017.
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 profit or loss and other comprehensive income
and within equity in the consolidated statement of financial position.
d) Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and
the revenue can be reliably measured. The following specific recognition criteria must also be met before
revenue is recognised:
Interest Revenue
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the
financial asset.
Management Fees
Revenue from farm-in management fees is recognised at the time the fees are invoiced.
e)
Income Tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from, or paid to, the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at the balance date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
• when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss; or
• when the taxable temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled
and it is probable that the temporary difference will not reverse in the foreseeable future.
GBM Resources Annual Report 2017 41
Notes to the Financial Statements
For the Year Ended 30 June 2017
1. Statement of Significant Accounting Policies (continued)
e)
Income Tax (continued)
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which
the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can
be utilised, except:
• when the deferred income tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of
the transaction, affects neither the accounting profit nor taxable profit or loss; or
• when the deductible temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is
probable that the temporary difference will reverse in the foreseeable future and taxable profit will be
available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Unrecognised deferred income tax assets are re-assessed at each balance date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable
entity and the same taxation authority.
f) Other Taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part
of the expense item as applicable; and
•
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables in the consolidated statement of financial position.
g) Financing Costs
Net financing costs comprise interest payable on borrowings calculated using the effective interest method.
Borrowing costs are expensed as incurred and included in net financing costs, where there is no
qualifying asset.
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.
42 GBM Resources Annual Report 2017
1. Statement of Significant Accounting Policies (continued)
h) Leases (continued)
Lease payments are apportioned between finance charges and reduction of the lease obligation so as to
achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly
against income, unless they are directly attributable to qualifying assets, in which case they are capitalised in
accordance with the general policy on borrowing costs – refer Note 1(g).
Finance leased assets are depreciated on a straight line basis over the estimated useful life of the asset.
Operating lease payments are recognised as an expense on a straight line basis over the lease term, except
where another systematic basis is more representative of the time pattern in which economic benefits from the
leased asset are consumed.
i) Cash and Cash Equivalents
Cash and short-term deposits in the consolidated statement of financial position comprise cash at bank
and in hand. Cash equivalents are short-term, highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the consolidated statement of cash flows, cash and cash equivalents consist of cash
and cash equivalents as defined above, net of outstanding bank overdrafts.
j)
Trade and Other Receivables
Trade receivables, which generally have 30-90 day terms, are recognised and carried at original invoice
amount less an allowance for any uncollectible amounts. An allowance for doubtful debts is made when there
is objective evidence that the Group will not be able to collect the debts. Bad debts are written off when
identified.
k) Plant and Equipment
Plant and equipment is stated at cost, less accumulated depreciation and any accumulated impairment
losses. Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of
replacing the parts is incurred. Similarly, when each major inspection is performed, its cost is recognised
in the carrying amount of the plant and equipment as a replacement only if it is eligible for capitalisation.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
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.
GBM Resources Annual Report 2017 43
Notes to the Financial Statements
For the Year Ended 30 June 2017
1. Statement of Significant Accounting Policies (continued)
k) Plant and Equipment (continued)
ii) De-recognition and Disposal
An item of property, plant and equipment is de-recognised upon disposal or when no further future economic
benefits are expected from its use or disposal.
Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset
is de-recognised.
l)
Investments and Other Financial Assets
Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are
classified as either financial assets at fair value through profit or loss, loans and receivables, held-to-maturity
investments, or available-for-sale investments, as appropriate. When financial assets are recognised initially,
they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly
attributable transactions costs. The Group determines the classification of its financial assets after initial
recognition and, when allowed and appropriate, re-evaluates this designation at each financial year-end.
All regular way purchases and sales of financial assets are recognised on the trade date i.e. the date that the
Group commits to purchase the asset. Regular way purchases or sales are purchases or sales of financial
assets under contracts that require delivery of the assets within the period established generally by regulation
or convention in the marketplace.
i) Financial Assets at Fair Value through Profit or Loss
Financial assets classified as held for trading are included in the category ‘financial assets at fair value through
profit or loss’. Financial assets are classified as held for trading if they are acquired for the purpose of selling in
the near term. Derivatives are also classified as held for trading unless they are designated as effective hedging
instruments. Gains or losses on investments held for trading are recognised in profit or loss.
ii) Held-to-Maturity Investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as
held-to-maturity when the Group has the positive intention and ability to hold to maturity.
Investments intended to be held for an undefined period are not included in this classification. Investments
that are intended to be held-to-maturity, such as bonds, are subsequently measured at amortised cost. This
cost is computed as the amount initially recognised minus principal repayments, plus or minus the cumulative
amortisation using the effective interest method of any difference between the initially recognised amount
and the maturity amount. This calculation includes all fees and points paid or received between parties to the
contract that are an integral part of the effective interest rate, transaction costs and all other premiums and
discounts. For investments carried at amortised cost, gains and losses are recognised in profit or loss when
the investments are de-recognised or impaired, as well as through the amortisation process.
iii) Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. Such assets are carried at amortised cost using the effective interest method.
Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired,
as well as through the amortisation process.
iv) Available-for-Sale Investments
Available-for-sale investments are those non-derivative financial assets that are designated as available-for-
sale or are not classified as any of the three preceding categories. After initial recognition available-for sale
investments are measured at fair value with gains or losses being recognised as a separate component of
equity until the investment is derecognised or until the investment is determined to be impaired, at which
time the cumulative gain or loss previously reported in equity is recognised in profit or loss.
Upon disposal of available for sale investments the carrying value of the disposed assets are transferred
to profit or loss to match with the consideration received, less costs to sell. A gain or loss on disposal is
recognised in the period in which the disposal occurred.
44 GBM Resources Annual Report 2017
1. Statement of Significant Accounting Policies (continued)
l)
Investments and Other Financial Assets (continued)
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 profit or loss and other comprehensive income reflects the Group’s share of the
results of operations of the associate, and its share of post-acquisition movements in reserves is recognised
in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the
investment.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any
unsecured long-term receivable and loans, the Group does not recognise further losses, unless it has incurred
obligations or made payments on behalf of the associate.
Upon disposal of an associate that results in the Group losing significant influence over that associate, any
retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial
recognition as a financial asset in accordance with AASB 139. The difference between the previous carrying
amount of the associate attributable to the retained interest and its fair value is included in the determination
of the gain or loss on disposal of the associate. In addition, the Group accounts for all amounts previously
recognised in other comprehensive income in relation to that associate on the same basis as would be required
if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously
recognised in other comprehensive income by that associate would be reclassified to profit or loss on disposal
of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a
reclassification adjustment) when it loses significant influence over that associate.
When a Group entity transacts with its associate, profits and losses resulting from those transactions with the
associate are recognised in the Group’s consolidated financial statements only to the extent of interests in the
associate that are not related to the Group.
m) Exploration and Evaluation Expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are
satisfied: (i) the rights to tenure of the area of interest are current; and (ii) at least one of the following conditions
is also met:
a)
b)
the exploration and evaluation expenditures are expected to be recouped through successful development
and exploitation of the area of interest, or alternatively, by its sale; or
exploration and evaluation activities in the area of interest have not at the reporting date reached a
stage which permits a reasonable assessment of the existence or otherwise of economically recoverable
reserves, and active and significant operations in, or in relation to, the area of interest are continuing.
GBM Resources Annual Report 2017 45
Notes to the Financial Statements
For the Year Ended 30 June 2017
1. Statement of Significant Accounting Policies (continued)
m) Exploration and Evaluation Expenditure (continued)
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation
and amortised of assets used in exploration and evaluation activities. General and administrative costs are only
included in the measurement of exploration and evaluation costs where they are related directly to operational
activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the
carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable
amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated
being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss
(if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest,
the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to
development.
n)
Impairment of Assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If
any such indication exists, or when annual impairment testing for an asset is required, the Group makes an
estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less
costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other assets or groups of assets and the asset’s value
in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part
of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit
exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down
to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset. Impairment losses relating to continuing operations are recognised in those expense categories
consistent with the function of the impaired asset unless the asset is carried at re-valued amount (in which case
the impairment loss is treated as a re-valuation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the
recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a
change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was
recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That
increased amount cannot exceed the carrying amount that would have been determined, net of depreciation,
had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or
loss unless the asset is carried at re-valued amount, in which case the reversal is treated as a re-valuation
increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s
revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.
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.
46 GBM Resources Annual Report 2017
1. Statement of Significant Accounting Policies (continued)
p)
Interest Bearing Liabilities
All loans and borrowings are initially recognised at the fair value of the consideration received less directly
attributable transaction costs.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using the effective interest method.
Gains and losses are recognised in profit or loss when the liabilities are de-recognised.
q) Employee Benefits
i) Wages, Salaries, Annual Leave and Sick Leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and non-accumulating sick
leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect
of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when
the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and
are measured at the rates paid or payable.
ii) Long Service Leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the
present value of expected future payments to be made in respect of services provided by employees up to
the reporting date using the projected unit credit method. Consideration is given to expected future wage
and salary levels, experience of employee departures, and period of service. Expected future payments are
discounted using market yields at the reporting date on national government bonds with terms to maturity
and currencies that match, as closely as possible, the estimated future cash outflows.
r) Share Based Payments
Equity Settled Transactions:
The Group provides benefits to employees (including senior executives) of the Group in the form of share based
payments, whereby employees render services in exchange for shares or rights over shares (equity-settled
transactions).
The cost of these equity-settled transactions with employees is measured by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value of options is determined by using a
Black and Scholes model. Share rights are valued at the underlying market value of the ordinary shares over
which they are granted.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions
linked to the price of the shares of GBM Resources Limited (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over
the period in which the performance and/or service conditions are fulfilled, ending on the date on which the
relevant employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects (i) the extent to which the vesting period has expired and (ii) the Group’s best estimate of the number
of equity instruments that will ultimately vest. No adjustment is made for the likelihood of market performance
conditions being met as the effect of these conditions is included in the determination of fair value at grant
date. The charge or credit to the consolidated statement of profit or loss and other 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.
GBM Resources Annual Report 2017 47
Notes to the Financial Statements
For the Year Ended 30 June 2017
1. Statement of Significant Accounting Policies (continued)
r) Share Based Payments (continued)
If an equity-settled award is cancelled, the cumulative expense recognised in respect of that award is
transferred from its respective reserve to accumulated losses. However, if a new award is substituted for the
cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new
awards are treated as if they were a modification of the original award, as described in the previous paragraph.
s) Share Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
t) Earnings Per Share
Basic earnings per share (“EPS”) is calculated by dividing the net profit or loss attributable to members of the
Company for the reporting period, after excluding any costs of servicing equity (other than ordinary shares
and converting preference shares classified as ordinary shares for EPS calculation purposes), by the weighted
average number of ordinary shares of the Company, adjusted for any bonus element.
Diluted EPS is calculated by dividing the basic EPS earnings, adjusted by the after tax effect of financing costs
associated with dilutive potential ordinary shares and the effect on revenues and expenses of conversion, by
the weighted average number of ordinary shares and potential dilutive ordinary shares, adjusted for any bonus
element.
u) 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.
48 GBM Resources Annual Report 2017
1. Statement of Significant Accounting Policies (continued)
u) Business Combinations (continued)
Where the consideration transferred by the Group in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured at
its acquisition-date fair value. Changes in the fair value of the contingent consideration that qualify as
measurement period adjustments are adjusted retrospectively, with corresponding adjustments against
goodwill. Measurement period adjustments are adjustments that arise from additional information obtained
during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and
circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair value of contingent consideration that do not qualify as
measurement period adjustments depends on how the contingent consideration is classified. Contingent
consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent
settlement is accounted for within equity. Contingent consideration that is classified as an asset or liability
is remeasured at subsequent reporting dates in accordance with AASB 139, or AASB 137 ‘Provisions,
Contingent Liabilities and Contingent Assets’, as appropriate, with the corresponding gain or loss being
recognised in profit or loss.
v) 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 28 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 2017 49
Notes to the Financial Statements
For the Year Ended 30 June 2017
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 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
The Group is not exposed to significant interest rate risk and no financial instruments are employed to mitigate
risk (Note 18 – Financial Instruments).
Equity price risk
The Group has exposure to price risk in respect of its holding of ordinary securities of Anchor Resources
Limited (Singapore) and WCB Resources Limited (Canada). The investments are classified as an available for
sale financial assets with unrealised movements in the market values of the investments recognised in equity,
unless management considers that a material impairment has arisen in which case any unrealised losses will be
accounted for through profit or loss. There are no hedging activities undertaken regarding these investments.
(Note 18 – 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).
50 GBM Resources Annual Report 2017
Note
3. Revenue and Other Gains/Losses
a) Revenue
Gain on disposal of available for sale investments
Gain on disposal of assets
Interest income
Joint venture management fee
Other income
Exclusivity fee income1
Consolidated
2017
$
74,227
6,000
9,382
18,049
6,553
–
114,211
2016
$
–
–
10,949
131,857
23,361
100,000
266,167
1 During the comparative 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.
b) Other gains and losses
Gain on settlement of loan agreement2
Gain on recognition of investment
10
750,000
–
750,000
–
5,299,614
5,299,614
2 Gain represents the difference between the loan liability settled by the issue of equity securities and the fair value
of equity issued in settlement.
4. Expenses
Employee expenses
Gross employee benefit expense:
Wages and salaries
Directors’ fees
Superannuation expense
Other employee costs
Less amount allocated to exploration
Net consolidated statement of profit or loss and other
comprehensive income employee benefit expense
Depreciation expense:
Property and improvements
Office equipment and software
Site equipment
Motor vehicles
Exploration costs:
Unallocated exploration costs
Exploration costs written off
9
9
9
9
8
1,104,944
136,000
103,295
44,323
1,388,562
(987,258)
1,162,984
119,000
110,782
65,585
1,458,351
(1,070,145)
401,304
388,206
4,549
2,806
18,175
15,557
41,087
129,719
33,423
163,142
14,180
2,535
15,448
16,402
48,565
139,371
131,866
271,237
GBM Resources Annual Report 2017 51
Notes to the Financial Statements
For the Year Ended 30 June 2017
Consolidated
2017
$
2016
$
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
(1,540,602)
3,180,395
Income tax (benefit)/expense calculated at 27.5% (2016: 28.5%)
Gain on recognition of available for sale financial asset
Impairment expense
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 profit or loss and other comprehensive income
(423,666)
–
372,694
(47,601)
10,027
954,119
(1,589,884)
349,152
(33,729)
39,560
88,546
280,782
–
–
The tax rate used in the above reconciliation is the corporate tax rate of 27.5% payable by Australian corporate
entities on taxable profits under Australian tax law.
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
8,107,589
107,735
43,547
212,072
8,470,943
6,866,950
64,737
63,465
118,816
7,113,968
(4,328,532)
(3,405,092)
4,142,411
3,708,876
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.
52 GBM Resources Annual Report 2017
6. Earnings/(Loss) Per Share
Profit/(loss) used in calculation of earnings/(loss) per share
(1,540,602)
3,180,395
Consolidated
2017
$
2016
$
Basic and diluted earnings/(loss) per share
Weighted average number of shares used
in the calculation of earnings per share
Cents
Cents
(0.2)
#
0.5
#
814,491,427
606,173,641
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 2017 that are considered to be dilutive.
Note
7. Trade and Other Receivables
Current
Amounts due from farm-in partner
GST recoverable
Other debtors
Non-current
Security and environmental bonds1
Consolidated
2017
$
29,485
10,751
22,822
63,058
754,904
754,904
2016
$
75,397
14,380
5,532
95,309
412,121
412,121
1 Included in non-current assets at 30 June 2017 is an amount of $713,899 (2016: $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 Mount Coolon Gold Mines Pty Ltd. An additional amount of $342,716 was lodged with
the Queensland State Government in respect of security deposits relating to mining leases held by the Company.
8. Exploration and Evaluation Expenditure
Exploration and evaluation phase:
Capitalised costs at the start of the financial year
Capitalisation of Mount Coolon Gold Project
additional rehabilitation costs
Costs capitalised during the financial year
Capitalised costs written off during the financial year
12
4
11,350,307
10,355,613
310,853
2,800,705
(33,423)
–
1,126,560
(131,866)
Capitalised costs at the end of the financial year
14,428,442
11,350,307
Ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on successful
development and commercial exploitation or alternatively, sale of the respective areas.
GBM Resources Annual Report 2017 53
Notes to the Financial Statements
For the Year Ended 30 June 2017
9. Property, Plant and Equipment
Note
Consolidated
2017
$
2016
$
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
Depreciation
Closing net book value
Office equipment and software:
Opening net book value
Cost of additions
Depreciation
Closing net book value
Site equipment and plant:
Opening net book value
Depreciation
Closing net book value
Motor vehicles:
Opening net book value
Depreciation
Closing net book value
Total
54 GBM Resources Annual Report 2017
193,117
(123,718)
69,399
173,193
(169,371)
3,822
221,124
(203,638)
17,486
161,638
(135,844)
25,794
116,501
73,948
(4,549)
69,399
5,645
983
(2,806)
3,822
35,661
(18,175)
17,486
41,351
(15,557)
25,794
116,501
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
51,109
(15,448)
35,661
57,754
(16,403)
41,351
156,605
4
4
4
4
10. Available For Sale Financial Assets
Current
Investment – Anchor Resources Limited
Non-current
Investment – Anchor Resources Limited
Investment – WCB Resources Ltd
Consolidated
2017
$
2016
$
2,655,492
–
–
75,075
75,075
4,135,774
–
4,135,774
Investment – Anchor Resources Limited
The investment relates to a holding of 31,621,236 (2016: 35,221,236) ordinary shares in Anchor Resources 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 not subject to trading restrictions
Shares subject to trading restriction until 17 September 2017
14,010,618
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.
Balance at the start of the financial year
Gain on recognition of available for sale financial assets1
Carrying value of shares disposed during the year
Impairment expense2
4,135,744
–
(313,013)
(1,167,239)
–
5,299,614
–
(1,163,840)
Carrying amount at the end of the financial year
2,655,492
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.
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.
The investment is within the level 1 fair value hierarchy.
Investment – WCB Resources Limited
The investment relates to a holding of 3,000,000 (2016: nil) ordinary shares in WCB Resources Limited (WCB), a
Company quoted on the Venture Board of the Toronto Stock Exchange (TSX:V). The shares were acquired by the
Company at a deemed price of CAD$0.05 per share in full settlement and satisfaction of a loan previously advanced
to WCB by the Company.
Balance at the start of the financial year
Recognition of investment on issue of shares
Impairment expense3
Carrying amount at the end of the financial year
–
150,000
(74,925)
75,075
–
–
–
–
3 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.
The investment is within the level 1 fair value hierarchy.
GBM Resources Annual Report 2017 55
Notes to the Financial Statements
For the Year Ended 30 June 2017
11. Trade and Other Payables
Current
Acquisition costs payable1
Trade creditors2
Sundry creditors and accruals
Employee leave liabilities
Consolidated
2017
$
12,500
70,009
63,060
109,714
255,283
2016
$
12,500
81,490
114,946
114,915
323,851
1 Acquisition costs payable to Drummond Gold Limited pursuant to the acquisition of Mount Coolon Gold Mines Pty Ltd.
2 Trade payables are non-interest bearing and are normally settled on 30 day terms.
12. Provisions
Non-current
Rehabilitation provision1
706,907
396,054
1 A provision of $396,054 for rehabilitation was recognised during the 2015 financial year on acquisition of
Mount Coolon Gold Mines Pty Ltd. An additional $310,853 provision for rehabilitation was recognised in the 2017
financial year following an environmental approval assessment (Note 8).
13. Issued Capital
Issued capital at the balance date
863,566,975 653,063,975
31,801,764
28,785,654
Issue
price
2017
No.
2016
No.
2017
$
2016
$
Movements in issued capital:
On issue at the start of the year
Entitlement Issue
Shares issued to acquire the
Moonmera Prospect
Shares issued on the
exercise of options
Share placement
Shares issued in settlement
of loan liability
Share issue costs
On issue at the end of
the reporting year
$0.015
$0.016
653,063,975 557,894,121
92,982,354
–
28,785,654
–
27,372,099
1,394,735
–
2,187,500
–
35,000
$0.035
$0.016
3,000
160,500,000
$0.015
50,000,000
–
–
–
–
–
105
2,568,000
–
–
750,000
(301,995)
–
(16,180)
863,566,975 653,063,975
31,801,764
28,785,654
Shares Subject to Restriction Agreement
At balance date there were no ordinary shares subject to any restrictions.
56 GBM Resources Annual Report 2017
14. Options
Details of the Company’s Incentive Option Scheme are provided at Note 16.
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 pursuant to a non-renounceable entitlement offer1
Options exercised2
Options cancelled on expiry of exercise period
Options on issue at the end of the reporting year
2017
No.
2016
No.
203,391,744
–
–
203,391,744
–
–
203,391,744
177,746,562
–
(3,000)
(177,743,562)
–
1 Options exercisable at 5 cents each and expiring 30 September 2019 issued pursuant to a non-renounceable
entitlement offer.
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.
15. 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
Options subscribed for under non-renounceable entitlement offer
Transfer to accumulated losses on expiry of exercise period
Closing balance
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
Consolidated
2017
$
2016
$
–
–
–
–
610,175
–
610,075
400,000
(400,000)
–
323,733
–
(323,733)
–
(13,000,337)
–
–
(1,540,602)
(16,904,465)
400,000
323,733
3,180,395
(14,540,939)
(13,000,337)
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.
GBM Resources Annual Report 2017 57
Notes to the Financial Statements
For the Year Ended 30 June 2017
16. 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 28 October 2016. 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 2017 (2016: nil).
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 28 October 2016. 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 2017 (2016: nil).
17. 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 2016 and 2017
financial years the Group has recognised an investment in a company in Singapore (Note 10).
The reportable segments are represented as follows:
30 June 2017
Revenue
Joint venture management fee
Gain on disposal of available for sale financial asset
Total segment revenue
Australia
$
Singapore
$
Consolidated
$
18,049
–
18,049
–
74,227
74,227
18,049
74,227
92,276
Segment net operating profit/(loss) after tax
(447,620)
(1,092,982)
(1,540,602)
Other revenue – unallocated
Depreciation
Exploration expenditure written off and expensed
21,935
(41,087)
(163,142)
–
–
–
21,935
(41,087)
(163,142)
Segment assets
16,177,698
2,655,492
18,833,190
Capital expenditure during period
Other non-current assets acquired
Segment liabilities
982
3,078,135
(962,190)
–
–
–
982
3,078,135
(962,190)
Segment non-current assets
15,374,922
2,655,492
18,030,414
58 GBM Resources Annual Report 2017
17. Segment Reporting (continued)
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
Other non-current assets acquired
Segment liabilities
–
994,694
–
5,299,614
–
6,294,308
(719,905)
–
(719,905)
Segment non-current assets
11,919,033
4,135,774
16,054,807
18. 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)):
Consolidated
30 June 2017
Trade and other payables
30 June 2016
Trade and other payables
Carrying
amount
$
Contractual
cash flows
$
6 months
or less
$
6-12
months
$
1-2
years
$
2-5
years
$
More than
5 years
$
97,626
97,626
97,626
97,626
97,626
97,626
99,800
99,800
99,800
99,800
99,800
99,800
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
The Group does not have any interest bearing liabilities to report a weighted average interest rate.
GBM Resources Annual Report 2017 59
Notes to the Financial Statements
For the Year Ended 30 June 2017
18. Financial Instruments (continued)
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
2017
$
–
–
739,718
739,718
2016
$
–
–
355,106
355,106
The Group is not materially exposed to interest rate risk on its variable rate investments.
Equity risk
The Group is exposed to equity price risk, which arises through its holding of available for sale financial assets,
being the investment in shares in Anchor Resources Limited and WCB Resources Limited (see Note 10 for details).
Sensitivity analysis – Equity Price Risk
The Group’s equity investments are listed on the Catalist Board of the Singapore Securities Exchange (SGX) and
the Venture Board of the Toronto Stock Exchange (TSX-V). A 10% change in the equity price of the Group’s
investments 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
$
273,057
(273,057)
273,057
(273,057)
413,577
(413,577)
413,577
(413,577)
30 June 2017
Available for sale financial assets
30 June 2016
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.
60 GBM Resources Annual Report 2017
19. 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 programs 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
2017, including licences subject to farm-in arrangements are approximately $2,807,000 (2016: $2,985,900).
b) Operating Lease Commitments
The Group has no operating lease commitments.
c) Contractual Commitment
The Group has no contractual commitments.
20. 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
2017
$
633,880
105,838
739,718
2016
$
251,806
103,300
355,106
The Bank at call account holds funds at call subject to certain restrictions (Note 20(b)) and pays interest at an
average of 3.0% (2016: 2.45%), and matures on 24 September 2017.
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
105,838
103,300
c)
Reconciliation of Loss from Ordinary Activities after
Income Tax to Net Cash Used in Operating Activities
Profit/(Loss) after income tax
(1,540,602)
3,180,395
Add (less) non-cash items:
Gain on equity settlement of loan liability
Gain on recognition of financial asset
Gain on sale of investments
Gain on sale of assets
Impairment charge
Depreciation
Exploration expenditure written off and expensed
Changes in assets and liabilities:
Increase/(decrease) in trade creditors and accruals
(Increase)/decrease in sundry receivables
Net cash flow from operations
(750,000)
–
(74,227)
(6,000)
1,242,614
41,087
163,142
–
(5,299,614)
–
–
1,163,840
48,565
271,238
(127,753)
659
130,018
45,072
(1,051,080)
(460,486)
GBM Resources Annual Report 2017 61
Notes to the Financial Statements
For the Year Ended 30 June 2017
20. Notes to the Statement of Cash Flows (continued)
Material non-cash transactions
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 Mount Morgan Copper-Gold Project, in eastern Queensland.
2017
During the 2017 financial year the Group issued 50,000,000 ordinary fully paid shares at a fair value of 1.5 cents
per share in settlement of a $1.5 million loan liability (Note 13).
21. Auditor’s Remuneration
Amounts received or receivable by HLB Mann Judd for:
– Audit and review of financial reports
22. 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
Mount Coolon Gold Mines Pty Ltd
Consolidated
2017
$
2016
$
30,500
29,500
2017
%
2016
%
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 related 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 24.
62 GBM Resources Annual Report 2017
23. 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 Director
Hun Seng Tan – Non-Executive Director
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
2017
$
569,001
39,193
608,194
2016
$
542,436
41,135
583,571
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 24. As at 30 June 2016 an amount of $96,635 was accrued for payment to Key Management Personnel
in respect of remuneration.
24. 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
25. Dividends
15,632,859
12,669,799
–
–
There are no dividends paid or payable during the year ended 30 June 2017 or the 30 June 2016 comparative year.
26. Events Subsequent to Balance Date
Other than the following, there has not arisen in the interval between the end of the financial year and the date of
this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the
Company to affect substantially the operations of the Group, the results of those operations or the state of affairs
of the Group in subsequent financial years:
•
In July 2017 the Company completed the sale of 14,018,618 shares in Anchor Resources Limited, receiving
a total of A$963,204 in sale proceeds.
GBM Resources Annual Report 2017 63
Notes to the Financial Statements
For the Year Ended 30 June 2017
27. Contingencies
I) Contingent liabilities
There were no material contingent liabilities not provided for in the financial statements of the Group
as at 30 June 2017 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 2017 or 30 June 2016.
2017
$
2016
$
3,457,916
14,668,619
489,218
15,620,201
18,126,535
16,109,419
(255,535)
–
(255,535)
(324,102)
–
(324,102)
17,871,000
15,785,317
31,801,764
610,175
(14,540,939)
28,785,654
–
(13,000,337)
17,871,000
15,785,317
(1,540,602)
–
(1,540,602)
3,180,395
–
3,180,395
28. 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
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 27.
Commitments
For full details of commitments see Note 19.
64 GBM Resources Annual Report 2017
Directors’ Declaration
For the Year Ended 30 June 2017
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 2017 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 2017.
This declaration is made in accordance with a resolution of the Board of Directors.
Peter Thompson
Executive Chairman
Dated this 22nd day of September 2017
GBM Resources Annual Report 2017 65
INDEPENDENT AUDITOR’S REPORT
To the members of GBM Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of GBM Resources Limited (“the Company”) and its controlled
entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June
2017, the consolidated statement of profit or loss and other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then ended,
and notes to the financial statements, including a summary of significant accounting policies, and the
directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
a)
giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its
financial performance for the year then ended; and
b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (“the Code”) that are relevant to our audit of the financial report in Australia. We have
also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1(a) in the financial report, which indicates the existence of material
uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going
concern. Our opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material Uncertainty
Related to Going Concern, we have determined the matters described below to be the key audit
matters to be communicated in our report
HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 4 130 Stirling Street Perth WA 6000 | PO Box 8124 Perth BC WA 6849 | Telephone +61 (08) 9227 7500 | Fax +61 (08) 9227 7533
Email: mailbox@hlbwa.com.au | Website: 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 world-wide organisation of accounting firms and business advisers
43
66 GBM Resources Annual Report 2017
Key Audit Matter
How our audit addressed the key audit matter
How our audit addressed the key audit matter
Key Audit Matter
Carrying amount of exploration and evaluation
expenditure
Carrying amount of exploration and evaluation
Note 1(m) of the financial report
expenditure
Note 1(m) of the financial report
At 30 June 2017, the exploration and evaluation
expenditure was carried at $14,428,442 (2016:
At 30 June 2017, the exploration and evaluation
$11,350,307).
expenditure was carried at $14,428,442 (2016:
In accordance with AASB 6 Exploration for and
$11,350,307).
Evaluation of Mineral Resources, the Group
In accordance with AASB 6 Exploration for and
capitalises acquisition costs of rights to explore
Evaluation of Mineral Resources, the Group
and applies the cost model after recognition.
capitalises acquisition costs of rights to explore
and applies the cost model after recognition.
Our audit focussed on the Group’s assessment of
the carrying amount of the capitalised exploration
Our audit focussed on the Group’s assessment of
and evaluation asset. We considered this to be a
the carrying amount of the capitalised exploration
key audit matter because this is one of the
and evaluation asset. We considered this to be a
significant assets of the Group. There is a risk
key audit matter because this is one of the
that the capitalised expenditure no longer meets
significant assets of the Group. There is a risk
In
the recognition criteria of
that the capitalised expenditure no longer meets
addition, we considered it necessary to assess
In
the recognition criteria of
whether
to
addition, we considered it necessary to assess
the carrying amount of an
suggest
to
whether
exploration and evaluation asset may exceed its
the carrying amount of an
suggest
recoverable amount.
exploration and evaluation asset may exceed its
recoverable amount.
the standard.
facts and circumstances existed
that
facts and circumstances existed
that
the standard.
whether
whether
Impairment of available-for-sale investments
Note xx of the financial report
Impairment of available-for-sale investments
Note xx of the financial report
At 30 June 2017,
the available-for-sale
investments were valued at $2,730,567 (2016:
the available-for-sale
At 30 June 2017,
$4,135,774).
investments were valued at $2,730,567 (2016:
$4,135,774).
We focused on this area due to the size of the
balance and the significant judgement required in
We focused on this area due to the size of the
determining
available-for-sale
balance and the significant judgement required in
investments are impaired where there is a decline
available-for-sale
determining
in fair value below cost.
investments are impaired where there is a decline
in fair value below cost.
The available-for-sale investments were classified
as ‘level 1’ financial instruments as quoted prices
The available-for-sale investments were classified
in active markets were available.
as ‘level 1’ financial instruments as quoted prices
in active markets were available.
The Group performs an impairment review of its
available-for-sale investments semi-annually and
The Group performs an impairment review of its
records impairment charges when there has been
available-for-sale investments semi-annually and
a significant or prolonged decline in the fair value
records impairment charges when there has been
below cost. In determining what is “significant” or
a significant or prolonged decline in the fair value
“prolonged” the Group evaluates, among other
below cost. In determining what is “significant” or
factors, historical share price movements and the
“prolonged” the Group evaluates, among other
duration and extent to which the fair value of an
factors, historical share price movements and the
investment is less than its cost.
duration and extent to which the fair value of an
investment is less than its cost.
tested a
Our procedures included but were not limited to
the following:
Our procedures included but were not limited to
We obtained an understanding of the key
the following:
processes associated with management’s
We obtained an understanding of the key
review of the exploration and evaluation asset
processes associated with management’s
carrying values;
review of the exploration and evaluation asset
We considered the Directors’ assessment of
carrying values;
potential indicators of impairment;
We considered the Directors’ assessment of
We obtained evidence that the Group has
potential indicators of impairment;
current rights to tenure of its area of interest;
We obtained evidence that the Group has
We
sample of exploration
current rights to tenure of its area of interest;
expenditures to see that it met requirements
We
sample of exploration
tested a
for capitalisation;
expenditures to see that it met requirements
We examined the exploration budget for
for capitalisation;
2017/18 and discussed with management the
We examined the exploration budget for
nature of planned ongoing activities;
2017/18 and discussed with management the
We enquired with management, reviewed
nature of planned ongoing activities;
ASX announcements and minutes of
We enquired with management, reviewed
Directors’ meetings to ensure that the Group
ASX announcements and minutes of
had not decided to discontinue exploration
Directors’ meetings to ensure that the Group
and evaluation at its area of interest; and
had not decided to discontinue exploration
We examined the disclosures made in the
and evaluation at its area of interest; and
financial report.
We examined the disclosures made in the
financial report.
reviewed
the company’s
We
We
Our audit procedures included but were not
limited to the following:
Our audit procedures included but were not
limited to the following:
We assessed the Group’s valuation if these
financial instruments and performed valuation
We assessed the Group’s valuation if these
testing on the available-for-sale investments;
financial instruments and performed valuation
testing on the available-for-sale investments;
impairment
policy, and assessed the adequacy of its
impairment
impairment charges on available-for-sale
policy, and assessed the adequacy of its
investments at year end; and
impairment charges on available-for-sale
investments at year end; and
We also considered whether the disclosures
in relation to available-for-sale investments
We also considered whether the disclosures
disclosure
comply with
in relation to available-for-sale investments
requirements.
comply with
disclosure
requirements.
the company’s
reviewed
relevant
relevant
the
the
44
44
GBM Resources Annual Report 2017 67
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2017, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal control relevant to the audit 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 the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
directors.
accounting
disclosures made
estimates
related
and
the
by
68 GBM Resources Annual Report 2017
45
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
events or conditions that may cast significant doubt on the Group’s ability to continue as a
and, based on the audit evidence obtained, whether a material uncertainty exists related to
going concern. If we conclude that a material uncertainty exists, we are required to draw
events or conditions that may cast significant doubt on the Group’s ability to continue as a
attention in our auditor’s report to the related disclosures in the financial report or, if such
going concern. If we conclude that a material uncertainty exists, we are required to draw
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
attention in our auditor’s report to the related disclosures in the financial report or, if such
evidence obtained up to the date of our auditor’s report. However, future events or conditions
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
may cause the Group to cease to continue as a going concern.
evidence obtained up to the date of our auditor’s report. However, future events or conditions
Evaluate the overall presentation, structure and content of the financial report, including the
may cause the Group to cease to continue as a going concern.
disclosures, and whether the financial report represents the underlying transactions and events
Evaluate the overall presentation, structure and content of the financial report, including the
in a manner that achieves fair presentation.
disclosures, and whether the financial report represents the underlying transactions and events
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
in a manner that achieves fair presentation.
business activities within the Group to express an opinion on the financial report. We are
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
responsible for the direction, supervision and performance of the Group audit. We remain solely
business activities within the Group to express an opinion on the financial report. We are
responsible for our audit opinion.
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
We communicate with the directors regarding, among other matters, the planned scope and timing of
identify during our audit.
the audit and significant audit findings, including any significant deficiencies in internal control that we
We also provide the directors with a statement that we have complied with relevant ethical
identify during our audit.
requirements regarding independence, and to communicate with them all relationships and other
We also provide the directors with a statement that we have complied with relevant ethical
matters that may reasonably be thought to bear on our independence, and where applicable, related
requirements regarding independence, and to communicate with them all relationships and other
safeguards.
matters that may reasonably be thought to bear on our independence, and where applicable, related
From the matters communicated with the directors, we determine those matters that were of most
safeguards.
significance in the audit of the financial report of the current period and are therefore the key audit
From the matters communicated with the directors, we determine those matters that were of most
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
significance in the audit of the financial report of the current period and are therefore the key audit
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
should not be communicated in our report because the adverse consequences of doing so would
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
reasonably be expected to outweigh the public interest benefits of such communication.
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the remuneration report
Report on the Remuneration Report
Opinion on the remuneration report
We have audited the remuneration report included in the directors’ report for the year ended 30 June
2017.
We have audited the remuneration report included in the directors’ report for the year ended 30 June
In our opinion, the remuneration report of GBM Resources Limited for the year ended 30 June 2017
2017.
complies with section 300A of the Corporations Act 2001.
In our opinion, the remuneration report of GBM Resources Limited for the year ended 30 June 2017
complies with section 300A of the Corporations Act 2001.
Responsibilities
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
The directors of the Company are responsible for the preparation and presentation of the
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
Australian Auditing Standards.
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
HLB Mann Judd
Chartered Accountants
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
22 September 2017
Perth, Western Australia
22 September 2017
D I Buckley
Partner
D I Buckley
Partner
46
46
GBM Resources Annual Report 2017 69
ASX Additional Information
Pursuant to the Listing Rules of the Australian Securities Exchange Limited, the shareholder information set out
below was applicable as at 21 September 2017.
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)
Quoted Options (GBZO)
Number
of Holders
54
69
126
439
275
963
Securities
Held
10,583
264,514
1,110,688
18,306,890
843,874,300
863,566,975
Number
of Holders
2
26
13
60
50
Securities
Held
525
81,104
109,610
2,562,639
200,637,866
151
203,391,744
There are 529 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
Chew Leok Chuan
Longru Zheng
c. Twenty Largest Holders – Ordinary Shares (GBZ)
Shareholder
Citicorp Nominees Pty Ltd
BNP Paribas Nominees Pty Ltd
Longru Zheng
HSBC Custody Nominees (Australia) Limited
Chew Leok Chuan
National Federal Capital Limited
Weijun Chen
Bikun Lin
Richgroup Holdings International Pte Ltd
Kok Yong Lim
Bradley Green
Superfine Nominees Pty Ltd
BNP Paribas Nominees Pty Ltd
Lay Hong Lim
Cheng Ee Huang
Mainlight Investments Pty Ltd
Neil Norris
De Gracie Nominees Pty Ltd
Kevin Hendry
Vissing Holding Pty Ltd
Shares
Held
121,731,560
88,718,593
Shares
Held
171,418,625
95,745,157
88,718,593
77,530,651
61,598,226
50,000,000
39,520,100
32,261,307
22,000,000
20,000,000
12,990,000
11,200,000
9,719,618
6,943,346
6,400,000
6,000,000
5,600,000
4,375,000
2,833,334
2,683,335
% of Issued
Capital
14.09%
10.90%
% of Issued
Capital
19.85%
11.09%
10.27%
8.98%
7.14%
5.79%
4.58%
3.74%
2.55%
2.32%
1.50%
1.30%
1.13%
0.80%
0.74%
0.69%
0.65%
0.51%
0.33%
0.31%
Total
727,537,292
84.27%
70 GBM Resources Annual Report 2017
d. Twenty Largest Holders – Quoted Options (GBZO)
Shareholder
Chew Leok Chuan
Citicorp Nominees Pty Ltd
Longru Zheng
Richgroup Holdings International Pte Ltd
Guan Huat Sunny Loh
HSBC Custody Nominees (Aust) Ltd
BNP Paribas Noms Pty Ltd
Weijun Chen
Bikun Lin
Rosegate Investments Pty Ltd
Kok Yong Lim
Timewise Holdings Pty Ltd
Beachstone Nominees Pty Ltd
Superfine Nominees Pty Ltd
Mainlight Investments Pty Ltd
Lay Hong Lim
Bradley Green
KPRL Holdings Pty Ltd
Neil Norris
De Gracie Nominees Pty Ltd
Options
Held
31,931,078
25,451,468
22,179,649
22,031,521
16,531,521
12,580,616
12,339,657
9,880,025
8,065,327
6,150,000
5,000,000
4,094,375
3,865,574
2,800,000
2,271,788
1,735,837
1,600,447
1,556,674
1,400,000
1,093,750
% of Issued
Capital
15.70%
12.51%
10.90%
10.83%
8.13%
6.19%
6.07%
4.86%
3.97%
3.03%
2.46%
2.01%
1.90%
1.38%
1.12%
0.85%
0.79%
0.77%
0.69%
0.54%
Total
192,559,307
94.70%
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 2017 71
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72 GBM Resources Annual Report 2017
Mount Usher No 5 level western adit entrance
Moonmera South Shaft
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
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
AUSTRALIA
Telephone: +61 8 9323 2000
Securities Exchange Listing
GBM Resources Limited – shares are listed
on the Australian Securities Exchange
(ASX Codes: GBZ and GBZO)
Stock Exchange
ASX Limited
Level 40, Central Park
152-158 St Georges Terrace
Perth WA 6000
AUSTRALIA
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 2017 73
Suite 8, 7 The Esplanade, Mt Pleasant WA 6153 Australia
Telephone: +61 8 9316 9100 • Facsimile: +61 8 9315 5475
Website: www.gbmr.com.au • Email: admin@gbmr.com.au