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Gladiator Resources Limited

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FY2018 Annual Report · Gladiator Resources Limited
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GLADIATOR RESOURCES LIMITED AND 
CONTROLLED ENTITIES

ABN: 58 101 026 859

Financial Report For The Year Ended
30 June 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED
AND CONTROLLED ENTITIES

ABN: 58 101 026 859

Financial Report For The Year Ended
30 June 2018

CONTENTS

Corporate Governance Statement

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

Additional Information for Listed Public Companies

Page

1

10

16

17

18

19

20

21

38

  39

43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
CORPORATE GOVERNANCE STATEMENT

The Board of Directors of Gladiator Resources Limited (the Company) is committed to implementing and maintaining the highest 
standards of corporate governance. The primary responsibility of the Board is to represent and advance the Company's 
shareholders' interests and to protect the interests of all stakeholders. To fulfil this role, the Board is responsible for the overall 
corporate governance of the Company including its strategic direction, establishing goals for its employees and monitoring 
achievement of these goals.

The Board continually reviews its corporate governance practices and regularly monitors developments in good corporate 
governance practices both in Australia and abroad. Where international and Australian guidelines are not consistent, the good 
practice guidelines of the ASX Corporate Governance Council has been adopted as the minimum base for corporate governance 
practices.

Board of Directors

The Board has adopted a formal charter which allocates responsibilities between the Board and management of the Company. The 
charter details the composition, responsibilities and code of conduct under which the Board operates. The Board has resolved 
unanimously that the Company will at all times aspire to "good practice" in Corporate Governance.

Role of the Board

-

-

-

-

-

-

Providing input into, and approval of, the Group's strategic direction; approval and monitoring of budgets and business plans; 
and ensuring that appropriate resources are available, including capital management and budgeting for major capital 
expenditure;

Approving the Group's systems of risk management, monitoring their effectiveness and maintaining a dialogue with the Group's 
auditors;

Considering, approving and monitoring internal and external financial and other reporting, including reporting to shareholders, 
the ASX and other stakeholders;

Selection and evaluation of Directors, the Managing Director, and senior executives and planning for their succession;

Setting the Managing Director and Director's remuneration within shareholder approved limits and ensuring that the 
remuneration and conditions of service of senior executives are appropriate;

Ensuring, and setting standards for, ethical behaviour and compliance with the Group's own governing documents, including the 
Group's Code of Conduct and corporate governance standards.

Board Processes

The Board aims to perform its role and objectives through the adoption and monitoring of strategies, plans, policies and performance; 
the review of the Managing Director and senior management's performance, conduct and reward; monitoring of the major risks of the 
Company's business; and by ensuring the Company has policies and procedures to satisfy its legal and ethical responsibilities.

The Board determines the strategic direction of the Company and sets policies accordingly. In addition to maintaining oversight of 
the Company's executive management and operations, the Board monitors substantive issues such as ethical standards and social 
and environmental responsibilities.

Composition of the Board

The names of the current Directors of the Company at the date of this statement are set out in the Directors' Report accompanying 
this financial report. The composition of the board is determined using the following principles:

-

-

-

-

a maximum of five Directors and a minimum of three Directors;

a Non-Executive as Chairman;

a majority of Non-Executive Directors; and

a balance between independent and non-independent Directors

The Board is currently comprised of two Executive Directors and two Non-Executive Directors. The Company's constitution provides 
for a maximum of 5 directors. The Board periodically reviews its size as appropriate. The Company currently does not employ a 
Managing Director, however, in this event that this office was filled, he or she would be invited to attend all Board Meetings.

Directors are considered to be independent if they are not major shareholders, are independent of management, and are free from 
any business or other relationship that could materially interfere with their exercise of free and independent judgement. Two out of 
four of the directors are considered to fall within this category.

The Board regards the present composition of Directors as a good balance at this stage of the Company's development with the 
appropriate mix of expertise, experience and ability to represent the interest of all shareholders.

1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
CORPORATE GOVERNANCE STATEMENT

Future Director appointees will receive a formal letter of appointment setting out the responsibilities, rights, terms and conditions of 
their appointment. Directors participate in a comprehensive induction which covers the operations, financial position, strategic and 
risk management issues, as well as the operation of the Board and any sub-committees.

Meetings

The Board meets on a regular basis to retain full and effective control and monitor executive management. During the financial year 
to 30 June 2018, the full Board met 5 times in conjunction with regular management meetings. The Directors' attendance at meetings 
is detailed in the Directors' Report.

Members of the management team may attend meetings at the invitation of the Board.

Role of Chairman

The Chairman is a non-independent Director elected by the full Board and he has not previously been an employee of the Company.

The Chairman is responsible for leading the Board, ensure Directors are properly briefed in all matters relevant to their role and 
responsibilities, facilitating Board discussions and managing the Board's relationship with the Company's senior executives.

Terms of office

The Board reviews its performance and composition on an annual basis and aims to have members with high levels of intellectual 
ability, experience ,soundness of judgement and integrity to maximise its effectiveness and contribution. Directors serve a maximum 
three-year term before being required to be re-elected by the Company's members. The Company's constitution provides that at 
least one third (or the nearest whole number) of directors must retire at each Annual General Meeting, but are eligible for re-election 
at that meeting. There is no compulsory retiring age.

Independent professional advice

In performing their duties, Directors have the right to seek independent, professional advice at the Company's expense, in 
furtherance of their duties as Directors, with the approval of the Chairman, which approval shall not be unreasonably withheld.

Board Committees

The Company currently has no committees, the tasks that would ordinarily be assigned to a committee are undertaken by the full 
board of the Company.

Code of business conduct

Reporting standards

The Company is committed to providing shareholders with clear, transparent, and high quality financial information in a timely 
manner. The Company's continuous disclosure policy underpins this approach.

The financial reports of the Company are produced in accordance with the Australian International Reporting Standards, other 
authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act. The financial statements and 
reports are subject to review every half year and the auditor issues an audit opinion accompanying the full year results for each 
financial year.

External auditors

The Company policy is to appoint external auditors who clearly demonstrate quality and independence. The performance of the 
external auditor is reviewed annually, taking into consideration assessment of performance, existing value and tender costs.

An analysis of fees paid to the external auditors, including a breakdown of fees for non-audit services, is provided in Note 6 to the 
financial statements. It is a requirement of the external auditors to provide an annual declaration of their independence to the Board.

The external auditor is requested to attend the annual general meeting either in person or via phone linkup and be available to 
answer shareholder questions about the conduct of the audit and the preparation and content of the audit report.

2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
CORPORATE GOVERNANCE STATEMENT

Management Certification

The Company requires that the Managing Director (if in office) and Company Secretary make the following certifications to the 

1.

2.

that the Company's financial reports are complete and present a true and fair view, in all material respects, of the financial 
condition and operational results of the Company and Group and are in accordance with relevant accounting standards.

that the above statement is founded on a sound system of risk management together with internal compliance and control 
which implements the policies adopted by the Board and that the Company's risk management and internal compliance and 
control is operating efficiently and effectively in all material respects.

Risk assessment

The Board is responsible for ensuring there are adequate policies in relation to risk management, compliance and internal control 
systems. In summary, the Company's policies are designed to ensure strategic, operational, legal, reputation and financial risks are 
identified, assessed and efficiently managed and monitored to enable achievement of the Company's business objectives.

Considerable importance is placed on maintaining a strong control environment. There is an organisational structure with clearly 
drawn lines of accountability and delegation of authority. Adherence to the Code of Conduct is required at all times and the Board 
actively promotes a culture of quality and integrity.

Detailed control procedures cover management accounting, purchase and payments, financial reporting, capital expenditure 
requests, project appraisal, environment, health and safety, IT security, compliance, and other risk management issues. There is a 
systematic review and monitoring of key business operational risks by management which reports on current and future risks and 
mitigation activities to the Board.

The Company recognises the importance of environmental and occupational health and safety (OH&S) issues and is committed to 
the highest levels of performance with the systematic identification of environmental and OH&S issues to ensure they are managed 
in a structured manner. This system allows the Company to:

-

-

-

-

-

-

monitor its compliance with all relevant legislation;

continually assess and improve the impact of its operations on the environment;

encourage employees to actively participate in the management of environmental and OH&S issues;

work with industry peers to raise standards;

use energy and other resources efficiently; and

encourage the adoption of similar standards by the entity's principal suppliers and contractors with particular emphasis on 
exploration contractors.

Continuous disclosure and shareholder communication

The Board is responsible for ensuring there are adequate policies in relation to risk management, compliance and internal control 
systems. In summary, the Company's policies are designed to ensure strategic, operational, legal, reputation and financial risks are 
identified, assessed and efficiently managed and monitored to enable achievement of the Company's business objectives.

The Company is a disclosing entity under the Corporations Act and is subject to the continuous disclosure requirements under ASX 
Listing Rules. Communications with shareholders and other stakeholders are given a high priority. In addition to statutory disclosure 
documents such as Annual Reports and Quarterly activity reports, the Board is committed to keeping all stakeholders informed of all 
material developments that affect the Company in a timely manner.

The Company has a formal policy and comprehensive procedures on continuous disclosure. Once the Board or management 
becomes aware of information concerning the Company that would be likely to have a material effect on the price or value of the 
Company's securities (and which does not fall within the exceptions to the disclosure requirements contained in the Listing Rules), 
that information is released to the ASX.

The Board has appointed the Company Secretary (or in his absence, the Chairman) as the person responsible for communication to 
ASX. This role includes responsibility for ensuring compliance with continuous disclosure requires of ASX listing Rules and 
overseeing and co-ordinating information disclosure to the ASX.

The Board also endorses full and regular communication with and between Directors, the Managing Director, senior management 
and the external auditors.

All shareholders have the opportunity to elect to receive a copy of the Company's annual report at the same time they receive by 
post a copy of the Notice of the Annual General Meeting.

Full use is made of annual general meetings to inform shareholders of current developments through appropriate presentations and 
to provide opportunities for questions.

3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
CORPORATE GOVERNANCE STATEMENT

Diversity Policy

Diversity includes, but is not limited to, gender, age, ethnicity and cultural background. The Company is committed to diversity and 
recognises the benefits arising from employee and board diversity and the importance of benefitting from all available talent. 
Accordingly, the company has established a diversity policy.

This diversity policy outlines requirements for the Board to develop measurable objectives for achieving diversity, and annually 
assess both the objectives and the progress in achieving those objectives. Accordingly, the Board has developed the following 
objectives regarding gender diversity and aims to achieve these objectives as Director and senior executive positions become vacant 
and appropriately qualified candidates become available:

-

-

-

-

-

achieve a diverse and skilled workforce, leading to continuous improvement in the achievement of its corporate goals;

the development of clear criteria on behavioural expectations in relation to promoting diversity;

create a work environment that values and utilises the contributions of employees with diverse backgrounds, experiences and 
perspectives;

ensure that personnel responsible for recruitment take into account diversity issues when considering vacancies; and

create awareness in all employees of their rights and responsibilities with regards to fairness, equity and respect for all aspects 
of diversity.

The Board believes that they have been successful in implementing these objectives throughout the Group's workforce.

The number of women employed by the Group and their employment classification is as follows:

Women on the Board

Women in senior management roles

Women employees in the company

2018

2017

%

-

-

-

No.

-

-

-

%

-

-

-

No.

-

-

-

Compliance with ASX Corporate Governance Council Good Practice Recommendations

The table below outlines each of the ASX Best Practice Recommendations and the Company's compliance with those 
recommendations. Where the Company has met the relevant recommendation during the reporting period, this is indicated by a 
"Yes" in the relevant column. Where the Company has not met or complied with a recommendation, this is met by a "No" and an 
accompanying note explaining the reasons why the Company has not met the recommendation.

Description

Complied

Note

PRINCIPLE 1 - LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT

1.1 A listed entity should disclose:

No

1

(a)
(b)

the respective roles and responsibilities of its board and management; and
those matters expressly reserved to the board and those delegated to the management

1.2 A listed entity should:

(a)

(b)

undertake appropriate checks before appointing a person, or putting forward to security 
holders a candidate for election, as a director; and

provide security holders with all material information in its possession relevant to a decision 
on whether or not to elect or re-elect a director

1.3

A listed entity should have a written agreement with each director and senior executive setting 
out the terms of their appointment.

1.4

The company secretary of a listed entity should be accountable directly to the board, through the 
chair, on all matters to do with proper functioning of the board.

Yes

Yes

Yes

4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
CORPORATE GOVERNANCE STATEMENT

1.5 A listed entity should:

Yes

(a)

(b)

(c) 

have a diversity policy which includes requirements for the board or a relevant committee of 
the board to set out measurable objectives for achieving gender diversity and to assess 
annually both the objectives and the entity's progress in achieving them;
disclose that policy or a summary or it; and

disclose as at the end of each reporting period the measurable objectives for achieving 
gender diversity set by the board or a relevant committee of the board in accordance with 
the entity's diversity policy and its progress towards achieving them and either:

(i)

(ii)

the respective proportions of men and women on the board, in senior executive 
positions and across the whole organisation (including how the entity has defined 
"senior executive" for these purposes); or
if the entity is a "relevant employer" under the Workplace Gender Equality Act, the 
entity's most recent "Gender Equality Indicators", as defined in and published under 
that Act.

1.6 A listed entity should:

(a)

(b)

have and disclose a process for periodically evaluating the performance of the board, its 
committees and individual directors; and

disclose, in relation to each reporting period, whether a performance evaluation was 
undertaken in the reporting period in accordance with that process.

1.7 A listed entity should:

(a)

(b)

have and disclose a process for periodically evaluating the performance of its senior 
executives; and

disclose, in relation to each reporting period, whether a performance evaluation was 
undertaken in the reporting period in accordance with that process.

PRINCIPLE 2 - STRUCTURE THAT BOARD TO ADD VALUE

2.1 The board of a listed entity should:

(a)

have a nomination committee which:

(i)
(ii)

has at least three members, a majority of whom are independent directors; and
is chaired by a independent director.

and disclose:

(iii)
(iv)
(v)

the charter of the committee;
the members of the committee; and
as at the end of each reporting period, the number of times the committee met 
throughout the period and the individual attendances of the members at those 
meetings; or

(b)

if it does not have a nomination committee, disclose that fact and the process it employs to 
address boar succession issues and to ensure that the board has the appropriate balance 
of skills, knowledge, experience, independence and diversity to enable it to discharge its 
duties and responsibilities effectively.

2.2

A listed entity should have and disclose a board skills matrix setting out the mix of skills and 
diversity that the board currently has or is looking to achieve in its membership.

2.3 A listed entity should disclose:

(a)
(b)

the names of the directors considered by the board to be independent directors;
if a director has an interest, position, association or relationship of the type described in Box 
2.3 but the board is of the opinion that it does not compromise the independence of the 
director, the nature of the interest, position, association or relationship in question and an 
explanation of why the board is of that opinion; and

(c) 

the length of service of each director.

No

No

No

Yes

Yes

2

3

4

2.4

A majority of the board of a listed entity should be independent directors.

No

5

5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
CORPORATE GOVERNANCE STATEMENT

2.5

The chair of the board of a listed entity should be an independent director and, in particular, 
should not be the same person as the CEO of the entity.

No

6

2.6

A listed entity should have a program for inducting new directors and provide appropriate 
professional development opportunities for directors to develop and maintain the skills and 
knowledge needed to perform their role as directors effectively.

PRINCIPLE 3 - ACT ETHICALLY AND RESPONSIBLY

3.1 A listed entity should:

(a)
(b)

have a code of conduct for its directors, senior executives and employees; and
disclose that code of a summary in it.

PRINCIPLE 4 - SAFEGAURD INTEGRITY IN CORPORATE REPORTING

Yes

Yes

4.1 The board of a listed entity should:

(a)

have an audit committee which:

No

7

(i)

(ii)

has at least three members, all of whom are non-executive directors and a majority 
of whom are independent directors; and
is chaired by a independent director, who is not the chair of the board.

and disclose:

(iii)
(iv)
(v)

the charter of the committee;
the relevant qualifications and experience of the members of the committee; and
in relation to each reporting period, the number of times the committee met 
throughout the period and the individual attendances of the members at those 
meetings; or

(b)

if it does not have an audit committee, disclose that fact and the processes it employs that 
independently verify and safeguard the integrity of its corporate reporting, including the 
processes for the appointment and removal of the external auditor and the rotation of the 
audit engagement partner.

4.2

The board of a listed entity should, before it approves the entity's financial statements for a 
financial period, receive from its CEO and CFO a declaration that, in their opinion, the financial 
records of the entity have been properly maintained and that the financial statements comply with 
the appropriate accounting standards and give a true and fair view of the financial position and 
performance of the entity and that the opinion has been formed on the basis of a sound system 
of risk management and internal control which is operating effectively.

4.3

A listed entity that has an AGM should ensure that its external auditor attends its AGM and is 
available to answer questions from security holders relevant to the audit.

PRINCIPLE 5 - MAKE TIMELY AND BALANCED DISCLOSURE

5.1 A listed entity should:

(a)

(b)

have a written policy for complying with its continuous disclosure obligations under the 
Listing Rules; and
disclose that code of a summary in it.

PRINCIPLE 6 - RESPECT THE RIGHTS OF SECURITY HOLDERS

6.1

A listed entity should provide information about itself and its governance to investors via its 
website.

6.2

A listed entity should design and implement an investor relations program to facilitate effective 
two-way communication with investors.

6.3

A listed entity should disclose the policies and processes it has in place to facilitate and 
encourage participation at meetings of security holders.

Yes

Yes

Yes

No

Yes

Yes

8

6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
CORPORATE GOVERNANCE STATEMENT

6.4

A listed entity should give security holders the option to receive communications from , and send 
communications to, the entity and its security registry electronically.

Yes

PRINCIPLE 7 - RECOGNISE AND MANAGEMENT RISK

7.1 The board of a listed entity should:

(a)

have a committee or committees to oversee risk, each of which:

No

9

(i)
(ii)

has at least three members, a majority of whom are independent directors; and
is chaired by a independent director, 

and disclose:

(iii)
(iv)
(v)

the charter of the committee;
the members of the committee; and
as at the end of each reporting period, the number of times the committee met 
throughout the period and the individual attendances of the members at those 
meetings; or

(b)

if it does not have a risk committee or committees that satisfy (a) above, disclose that fact 
and the processes it employs for overseeing the entity’s risk management framework.

7.2 The board or a committee of the board should:

Yes

(a)

(b)

review the entity's risk management framework at least annually to satisfy itself that it 
continues to be sound; and
disclose, in relation to each reporting period, whether such a review has taken place.

7.3 A listed entity should disclose:

No

10

(a)
(b)

if it has an internal audit function, how the function is structure and what role it performs; or
if it does not have an internal audit function, that fact and the processes it employs for 
evaluating and continually improving the effectiveness of its risk management and internal 
control processes.

7.4

A listed entity should disclose whether it has any material exposure to economic, environmental 
and social sustainability risks and, if it does, how it manages or intends to manage those risks.

Yes

PRINCIPLE 8 - REMUNERATE FAIRLY AND RESPONSIBLY

8.1 The board of a listed entity should:

(a)

have a remuneration committee which:

No

11

(i)

(ii)

has at least three members, all of whom are non-executive directors and a majority 
of whom are independent directors; and
is chaired by a independent director, 

and disclose:

(iii)
(iv)
(v)

the charter of the committee;
the members of the committee; and
as at the end of each reporting period, the number of times the committee met 
throughout the period and the individual attendances of the members at those 
meetings; or

(b)

if it does not have a remuneration committee, disclose that fact and the processes it 
employs for setting the level and composition of remuneration for directors and senior 
executives and ensuring that such remuneration is appropriat3e and not excessive.

8.2

A listed entity should separately disclose its policies and practices regarding the remuneration of 
non-executive directors and the remuneration of executive directors and other senior executives.

Yes

8.3 A listed entity which has an equity-based remuneration scheme should:

No

12

(a)

(b)

have a policy on whether participants are permitted to enter into transactions (whether 
through the use of derivatives or otherwise) which limit the economic risk of participating in 
the scheme; and
disclose that policy or a summary of it.

7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
CORPORATE GOVERNANCE STATEMENT

ADDITIONAL DISCLOSURES APPLICABLE TO EXTERNALLY MANAGED LISTED ENTITIES

- Alternative to Recommendation 1.1 for externally managed listed entities:

N/A

The responsible entity of an externally managed listed entity should disclose:
(a)

the arrangements between the responsible entity and the listed entity for managing the 
affairs of the listed entity;

(b)

the role and responsibility of the board of the responsible entity for overseeing those 
arrangements.

- Alternative to Recommendation 1.1 for externally managed listed entities:

N/A

An externally managed listed entity should clearly disclose the terms governing the remuneration 
of the manager.

Note 1

The Company has adopted a Board Charter which sets out the specific responsibilities of the Board, the requirements as to the 
Board's composition, the roles and responsibilities of the Chairman, Company Secretary and management of Board Committees. 
Directors' access to Company records and information, details of the Board's relationship with management, details of the Board's 
performance review and details of the Board's disclosure policy. This policy is not however published on the Company's website, 
however, this will be rectified once the Company's new website becomes fully operational.

Note 2

The Board is responsible for evaluating the performance of the Board and individual Directors will be evaluated on an annual basis, 
with the aid of an independent advisor, if deemed required. The Company's Corporate Governance Plan requires the Board to 
disclose whether or not performance evaluations were conducted during the relevant reporting period with details of the performance 
evaluations conducted will be provided in the Company's Annual Report. No evaluation has taken place to the date of this report.

Note 3

The Company has not undertaken a performance evaluation of its senior executives noting that the Company currently does not 
employ any executives. Performance reviews will take place once senior executive roles are occupied.

Note 4

Due to the size and nature of the existing Board and the magnitude of the Company's operations, the Company does not currently 
have a Nomination Committee. The full Board carries out the duties that would ordinarily be assigned to the Nomination Committee 
and the Board devotes time on an annual basis to discuss Board succession issues. All members of the Board are involved in the 
Company's nomination process, to the maximum extent permitted under the Corporations Act and ASX Listing Rules.

Note 5

The Board Charter requires that where practical, the majority of the Board will consist of independent Directors. Details of each 
Director's independence is provided within the Directors Report, noting Mr Ian Richer and Dr Andy Wilde are the only independent 
directors. Mr Andrew Draffin and Mr Ian Hastings are not deemed to be independent due to the nature of their shareholding in the 
Company.

Note 6

The current Chairman of the Company, Mr Ian Hastings, is not deemed an independent director due to his shareholding in the 
Company.

Note 7

Due to the size and nature of the existing Board and the magnitude of the Company's operations, the Company does not currently 
have an Audit Committee. The full Board carries out the duties that would ordinarily be assigned to the Audit Committee under the 
written terms of reference for that committee and annually to fulfilling the roles and responsibilities associated with maintaining the 
Company's internal audit function and arrangements with external auditors. All members of the Board are involved in the Company's 
audit function to ensure the proper maintenance of the entity and the integrity of all financial reporting.

8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
CORPORATE GOVERNANCE STATEMENT

Note 8

Information about the Company and its governance policies will be available within a dedicated Corporate Governance section on the 
Company's website which will be updated. The updated website is expected to be completed before the end of the calendar year 
2018.

Note 9

Due to the size and nature of the existing Board and the magnitude of the Company's operations, the Company does not currently 
have a Risk Management Committee. The full Board carries out the duties that would ordinarily be assigned to the Risk Management 
Committee and devotes time annually to fulfilling the rules and responsibilities associated with overseeing risk and maintaining the 
entity's risk management framework and associated internal compliance and control procedures.

Note 10

Due to the magnitude of the Company's operations, the Company does not currently have an internal audit function. The full Board 
has reviewed the current internal controls in place and has deemed them sufficient after consultation with the Company's external 
auditors.

Note 11

Due to the size and nature of the existing Board and the magnitude of the Company's operations, the Company does not currently 
have a Remuneration Committee. The full Board carries out the duties that would ordinarily be assigned to the Remuneration 
Committee and the Board has devoted time annually to fulfilling the roles and responsibilities associated with setting the level and 
composition of remuneration for Directors, ensuring that such remuneration is appropriate and not excessive.

Note 12

The Company does not currently have any equity based remuneration schemes in place.

9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
DIRECTORS' REPORT

The Directors of Gladiator Resources Limited, submit herewith the financial report of Gladiator Resources Limited and its subsidiaries ("the 
Group") for the year ended 30 June 2018.

Information on Directors

The names and details of the Group's Directors in office during the financial year and until the date of this report are as follows:

Directors were in office for this entire period unless otherwise stated.

Ian Hastings

Non-Executive Director

Appointed 28 February 2017

Andrew Draffin

Non-Executive Director

Company Secretary

Appointed 21 May 2013

Ian Richer
Non-Executive Director

Appointed 28 February 2017

Andy Wilde
Non-Executive Director

Appointed 18 May 2018

Mr Hastings is a corporate advisor with many years' experience in the field of finance, 
investment, securities markets compliance and regulation and has almost 30 years 
experience in the finance industry and regulatory bodies. He is a former Member of the 
ASX and former Principal of several ASX Member Stock Brokers. Mr Hastings is a 
Practitioner Member (Master Stockbroking) of the Stockbrokers Association of Australia 
and holds a Bachelor of Commerce and Bachelor of Laws Degrees.

Other current directorships of listed companies

3D Resources Limited - appointed 23 July 2010

Former directorships of listed companies in last three years

None

Mr A Draffin is a director of the accounting firm DW Accounting & Advisory Pty Ltd. He 
holds a Bachelor of Commerce and is a member of the Chartered Accountants Australia 
and New Zealand. Andrew is a Director, Chief Financial Officer and Company Secretary 
of listed, unlisted and private companies operating across a broad range of industries. 
His focus is on financial reporting, treasury management, management accounting and 
corporate services, areas where he has gained over 18 years experience.

Other current directorships of listed companies

EnviroMission Limited - appointed 27 June 2011

Global Petroleum Limited - appointed 10 June 2016

Former directorships of listed companies in last three years

None

Mr Richer is an Engineer with more than 30 years' experience in operations, project 
management and construction on a range of significant mining projects. He played a role 
in the Goldsworthy iron ore projects, laterite nickel projects in Indonesia and 
Queensland, mineral sands projects in New South Wales, titano-magnetite mining and 
processing in New Zealand and various domestic and offshore aluminium and copper - 
uranium projects. His technical and commercial expertise was gained in organisations 
including Consolidated Goldfields, INCO, Fluor International, Dravo Corporation and 
Minproc. Specific nickel sulphide experience was gained through active involvement at 
Widgiemooltha. Mr Richer has served more than 10 years as a director in banking and 
corporate finance, with Chas, Society Generale and as a consultant to the World Bank.

Other current directorships of listed companies

None

Former directorships of listed companies in last three years

None

Dr Wilde's career in metal exploration and research has spanned over 35 years.  His 
experience includes senior roles at BHP Minerals, Birimian Resources, Deep Yellow Ltd, 
Gold Fields and Paladin Energy, working in numerous countries and for various 
commodities including gold, uranium, lithium base-metals and coal. He is currently 
exploration manager for Birimian Resources where he is responsible for doubling the 
resource at the Goulamina lithium project in Mali and also managing Birimian’s Malian 
gold projects. 

His academic experience includes teaching of various geoscience courses at Sultan 
Qaboos University in Oman and leading projects of the co-operative research centre in 
predictive mineral discovery.  He has consulted to the United Nations International 
Atomic Energy Agency and is an adjunct senior research fellow at the University of 
Western Australia’s Centre for Exploration Targeting.

He is a graduate of the Australian Institute of Company Directors and a former AIG 
board member (having held the titles of Vice President and Secretary).  He is a fellow of 
the Australian Institute of Geoscientists and of the Society of Economic Geologists as 
well as a Registered Professional Geoscientist with AIG. 

Other current directorships of listed companies

None

Former directorships of listed companies in last three years

None

10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
DIRECTORS' REPORT

Company Secretary

Andrew Draffin

Appointed 12 May 2014

Mr A Draffin is a director of the accounting firm DW Accounting & Advisory Pty 
Ltd. He holds a Bachelor of Commerce and is a member of the Chartered 
Accountants Australia and New Zealand. Andrew is a Director, Chief Financial 
Officer and Company Secretary of listed, unlisted and private companies 
operating across a broad range of industries. His focus is on financial reporting, 
treasury management, management accounting and corporate services, areas 
where he has gained over 18 years experience.

Shareholdings of directors and other key management personnel

The interest of each Director and any other key management personnel, directly and indirectly, in the shares and options of the Company at 
the date of this report are as follows:

Andrew Draffin*
Ian Hastings**
Ian Richer
Andy Wilde

Ordinary Shares

Share Options

59,980,146
52,292,990
-
3,333,333

20,000,000
20,000,000
20,000,000
-

*Shares are held under the name of DW Accounting & Advisory Pty Ltd, of which Mr Andrew Draffin is a director and shareholder.

**Shares are held under the name of Tomik Nominees Pty Ltd, of which Mr Ian Hastings is a director and shareholder.

Corporate Information

Corporate Structure

Gladiator Resources Limited is a company limited by shares that is incorporated and domiciled in Australia. Refer to Note 11 for further 
details of wholly owned subsidiaries under the Company's control.

Principal Activities and Significant Changes in Nature of Activities

The Company continues to engage in exploration activities, focussing on under-explored mineral properties.

During previous reporting periods, these activities have been largely focused in Northern Uruguay. However, the Company had disposed of 
its interest last financial year and has since acquired a earn in rights for up to 70% of a project based in Australia. Please refer to Review of 
Operations for more information.

Dividends

No dividends in respect of the current financial year have been paid, declared or recommended for payment.

Operating and Financial Review

Review of Operations

During the financial year, the Company acquired 2 projects.

The Company acquired the Marymia Project, Exploration licence E52/3104. The project is located 250km northeast of Meekatharra in the 
Murchison Goldfield of Western Australia. This prospect is an extension of the 60km long belt containing the Plutonic and Marymia Gold 
Mines.

The Company will undertake a comprehensive review of the historical exploration results with a view of identifying targets within the licence 
for future exploration programs. 

Subsequent to year end, the Company satisfied the Western Australia's Office of State Revenue queries regarding the consideration paid for 
the tenement. As a result, the Company was issued with a Duties Assessment Notice for a total amount of $817 which has since been paid 
in full.

In February 2018, the Company formally acquired the earn in rights for up to 70% of the North Arunta Gold Project currently held through a 
Joint Venture with Prodigy Gold NL (ASX: PRX) following shareholder approval which was granted on 23 April 2018.

The North Arunta project consists of approximately 4,500 square kilometre package of granted tenements and tenement applications that are 
100% owned by PRX. The Project covers greater than 200 kilometre long gravity ridge associated with a Paleoproterozoic succession of 
metamorphosed sedimentary rocks of the Lander Rock Formation, dolerite intrusions and large granite intrusions. The project also sits on 
the 550km long gold endowed Trans-Tanami Corridor, a first-order crustal-scale fault that is spatially associated with the wold class Tanami 
deposits including Callie, Tanami and The Granites. The Arunta region has several known mineral occurrences including gold, copper, 
nickel, zinc, tin and tantalum.

The Kroda gold prospect, which is the most advanced prospect within the Project area, is located on EL29896. It is close to infrastructure 
with the Stuart Highway 18 kilometres to the west, the town of Barrow Creek 30 kilometres to the north and lies 200 kilometres south of 
Tennant Creek. Kroda consists of 4 individual prospects (Kroda 1 to 4) with a combined anomalous strike length of 14 kilometres. Kroda is 
well serviced with infrastructure and is located on pastoral land lose to the Ghan Rail Line and the Northern Territory Gas Pipeline.

At Kroda-3, high grade gold is hosted by interpreted breccia pipes that are near surface, steeply plunging and are confirmed by drilling to 
extend beyond 200 metres depth. Significant dill intercepts from Kroda 3 include 57m @ 3.8gt gold from 10m, including 29m @ 6.4g/t gold.

During the financial year, 240,000,000 fully paid ordinary shares were issued. A total of $935,000 was raised net of capital raising costs. Out 
of the 240,000,000 fully paid ordinary shares that were issued, a total of 40,000,000 fully paid ordinary shares were issued in relation to the 
acquisition of the 2 projects ($230,000). A total of 27,770,833 fully paid ordinary shares were issued from the exercise of options, raising a 
total of $138,854. A further 16,666,666 fully paid ordinary shares were issued in relation to a debt conversion of the amount $50,000.

11

                     
                             
                             
                     
                                             
                     
                               
                                      
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
DIRECTORS' REPORT

Financial Overview

Operating results for the year

The loss for the Group is $432,387 (2017: loss of $4,282,029) which is largely consistent with expectations associated with the Group's 
activities.

Review of financial position

The net assets of the Group have increased by $691,368 from a net deficit of $388,080 to a net surplus of $303,288.

The Group's liabilities are represented solely by trade payables which will be settled on normal commercial terms.

Summary of options on issue

During the year under review, there are a total of 132,645,833 unlisted options on issue.

Grant Date

Date 

Exercise Price

25 July 2017
25 July 2017
23 February 2018
17 May 2018

24 July 2022
20 February 2019
20 February 2019
17 May 2020

$0.005
$0.005
$0.005
$0.005

Number of options

                 60,000,000 
                 18,895,833 
                 18,750,000 
                 35,000,000 
               132,645,833 

Events after the Reporting Period

The Company announced on 18 September 2018 that it had received firm commitments to raise up to $625,000 via the placement of 
105,000,000 fully paid ordinary shares, raising $210,000 and $415,000 by way of loan facility. The loan facility is will be convertible to shares 
at $0.002 (0.2 cents) subject to shareholder approval at the next general meeting of the Company. The loan is non-interest bearing and will 
be repayable within 90 days should shareholder approval not be granted. 

The formal allotment of 105,000,000 fully paid ordinary shares was completed on 27 September 2018. 

A further $100,000 was raised resulting in 40,000,000 fully paid ordinary shares being issued at $0.0025 (0.25 cents) per share. The funds 
raised utilised the pre existing placement capacity granted by shareholders at the company's last General Meeting held on 28 June 2018.

Future Developments, Prospects and Business Strategies

The Company will prioritise the advancement of the North Arunta through exploration and continued evaluation of the project area. 

Environmental Issues

The Group is subject to and compliant with all aspects of environmental regulation of its exploration activities. The Directors are not aware of 
any environmental law that is not being complied with.

Meetings of Directors

During the financial year, 5 meetings of directors (including committees of directors) were held.

Attendances by each director during the year were as follows:

Andrew Draffin
Ian Hastings
Ian Richer
Andy Wilde

Directors' Meetings

Number eligible to attend
5
5
5
-

Number attended
5
5
5
-

Indemnifying Officers or Auditor

During the year, the Group entered into an insurance premium to insure certain officers of the Company and its controlled entities. 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 or a related body corporate.

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 premium paid is subject to a confidentiality clause under the insurance policy.

The Company has entered into an agreement with the Directors and certain officers to indemnify these individuals against any claims and 
related expenses which arise as a result of work completed in their respective capabilities.

The Company nor any of its related bodies corporate have not provided any insurance for any auditor of the Company or a related body 
corporate.

Proceedings on Behalf of Company

No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the 
company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.

The Company was not a party to any such proceedings during the year.

Non-audit Services

There were no non-audit services provided by the auditor during the period.

12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
DIRECTORS' REPORT

Auditor’s Independence Declaration

The lead auditor’s independence declaration for the year ended 30 June 2018 has been received and can be found on page 16 of the 
Financial Report.

REMUNERATION REPORT - AUDITED

This remuneration report, which forms part of the Directors' report, sets out information about the remuneration of the Group's Directors and 
other key management personnel for the year ended 30 June 2018. The prescribed details for each person covered by this report are 
detailed below.

Details of directors and other key management personnel

Directors and other key management personnel of the Group during and since the end of the financial year are as follows:

Ian Hastings
Andrew Draffin
Ian Richer
Andy Wilde

Remuneration Policy

Executive Director
Executive Director
Non-Executive Director
Non-Executive Director - Appointed 18 May 2018

The Company's remuneration policy has been designed to align Director and Executive objectives with shareholder and business objectives 
by providing remuneration packages comprising of a fixed remuneration component. The Board believes the remuneration policy for its 
Directors and senior management to be appropriate and effective to attract and retain people with the necessary qualifications, skills and 
experience to assist the company in achieving its desired results. Due to the size of the company, a remuneration committee has not been 
formed.

Remuneration is reviewed on an annual basis, taking into consideration a number of performance indicators. While no performance based 
remuneration component has been built into Director and senior management remuneration packages, it is envisaged that as the Company 
further progresses, consideration will be given to this component of remuneration.

The Group's earnings and movements in shareholders' wealth for five years to 30 June 2018 are detailed in the following table:

30 June 2018
$

30 June 2017
$

30 June 2016
$

30 June 2015
$

30 June 2014
$

-
(432,387)
(432,387)
$0.003
$0.005
-
(0.060)

-
(4,282,029)
(4,282,029)
$0.002
$0.003
-
(0.837)

1,296
(1,187,883)
(1,187,883)
$0.003
$0.002
-
(0.003)

11,802
(1,605,280)
(1,605,280)
$0.004
$0.003
-
(0.003)

28,262
(9,638,540)
(8,685,258)
$0.010
$0.004
-
(0.032)

Revenue
Net loss before tax
Net loss after tax
Share price at start of year
Share price at end of year
Dividends paid
Basic losses per share

Remuneration structure

In accordance with best practice corporate governance, the structure of Non-Executive and Executive director remuneration is separate and 
distinct.

Remuneration of Directors and Senior Management

The Directors (both Executive and Non-Executive) and senior management of the Company received remuneration during the year 
commencing 1 July 2017 and ending 30 June 2018 based on the following agreements:

Remuneration of Executive Directors

Objective

The Board aims to reward Executive Directors with a level and mix of remuneration commensurate with their position and responsibilities 
within the Company and so as to:

-
-
-
-

reward Executives for Company, business unit and individual performance against targets set by reference to appropriate benchmarks;
align the interest of Executive Directors with those of shareholders;
link reward with the strategic goals and performance of the Company; and
ensure total remuneration is competitive by market standards

Structure

In determining the level and make-up of Executive Director remuneration, the Board considers external reports on market levels of 
remuneration for comparable executive roles. It is the Board's policy that employment contracts are entered into with all senior Executive 
Directors.

Two Executive Directors were engaged by the Company during or since the end of the financial year.

13

                        
                        
                        
                      
                 
                
                     
                                 
                                 
                                 
                              
                         
                         
                                 
                                 
                    
                 
                 
               
          
                    
                 
                 
               
          
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
DIRECTORS' REPORT

Remuneration of Non-Executive Directors

Objective

The Board seeks to set aggregate remuneration at a level which provides the Group with the ability to attract and retain Non-Executive 
Directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.

Structure

The Constitution and ASX Listing Rules specify that the aggregate remuneration of Non-Executive Directors shall be determined from time to 
time by a general meeting of the Company's shareholders. An amount not exceeding the amount determined is then divided between the 
Directors as agreed whilst maintaining a surplus amount that can be attributable to further Non-Executive Directors should they be appointed 
at any time. The current aggregate remuneration amount is $250,000.

The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned amongst directors 
is reviewed annually. The Board considers advice from external consultants as well as the fees paid to Non-Executive Directors of 
comparable companies when undertaking the annual review process.

The Non-Executive Directors are paid a set amount per year. The Non-Executive Directors may receive consultant's fees through related 
entities for services rendered on a commercial basis.

Position Held as at 30 June 2018 and since the end of the 
financial year

Contract details (duration & 
termination)

Group KMP

Ian Hastings
Andrew Draffin
Ian Richer
Andy Wilde

Executive Director
Executive Director
Non-Executive Director
Non-Executive Director

No fixed term
No fixed term
No fixed term
No fixed term

Remuneration of Directors and Other Key Management Personnel (KMP) for the Year Ended 30 June 2018

2018

Group KMP

Andrew Draffin
Ian Hastings
Ian Richer
Andy Wilde

2017

Group KMP

Andrew Draffin
Ian Hastings - 
appointed 28 
February 2017

Ian Richer - 
appointed 28 
February 2017
Donald Low - 
resigned 28 
February 2017

Post employment 
Superannuation

Share based 
payment shares

Total

Share based 
payments

Short-term Benefits 
Salaries, fees and 
leave
$

36,000
78,000
34,000
2,100
150,100

$

$

-
-
-
-
-

Short-term Benefits 
Salaries, fees and 
leave
$

Post employment 
Superannuation

Share based 
payment shares

$

$

27,750
20,083

11,083

16,667

75,583

-
-

-

-

-

$

36,000
78,000
34,000
2,100
150,100

%

-
-
-
-

Total

Share based 
payments

%

-
-

-

-

$

27,750
20,083

11,083

16,667

75,583

-
-
-
-
-

-
-

-

-

-

Amount owing 
as at 30 June 
2018
$

9,000
24,000
7,000
2,100
42,100

Amount owing 
as at 30 June 
2018
$

59,000
20,083

11,083

4,167

94,333

Shares options granted to directors and executives

60,000,000 unlisted options with an expiry date of 24 July 2022 and exercise price of $0.005 were issued to Mr Andrew Draffin, Mr Ian 
Hastings and Mr Ian Richer. 

The options were issued at nil consideration and is designed to provide an incentive and reward Directors for the future performance of the 
Company and enhancement of Shareholder value and otherwise remunerate the Directors, whose ordinary director fees at date of issue 
were unpaid (due to the Company preserving available funds for current working capital requirements).

Group KMP

Andrew Draffin*
Ian Hastings**
Ian Richer
Andy Wilde

Options Granted

20,000,000
20,000,000
20,000,000
-
60,000,000

*Options are held under DW Accounting & Advisory Pty Ltd, of which Mr Andrew Draffin is a director and shareholder.

**Options are held under the name of Tomik Nominees Pty Ltd, of which Mr Ian Hastings is a director and shareholder.

14

                       
                                 
                                 
           
                  
                 
                 
                 
                                 
                       
                                 
                                 
           
                
           
                
                       
                                 
                                 
           
                
                       
                                 
                                 
                                 
                                 
           
                       
                                 
                                 
           
                
                
                                 
                                 
         
                
                      
                                 
                                 
                       
                       
           
                  
           
                                 
                                 
                       
                 
                                 
                                 
             
                  
                  
                         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
DIRECTORS' REPORT

Transactions with related parties:

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other 
parties unless otherwise stated.

The following transactions occurred with related parties:

i.

Director related entities

Directors' fees payable to DW Accounting & Advisory Pty Ltd, of which Mr Andrew Draffin is a director 
and shareholder.

Directors' fees payable to Tomik Nominees Pty Ltd, of which Mr Ian Hastings is a director and 
shareholder.

2018
$

2017
$

36,000

27,750

78,000

20,083

Directors' fees payable to Anycall Pty Ltd, of which Mr Ian Richer is a director and shareholder.

34,000

11,083

Directors' fees payable to Wilde Geoscience, of which Dr Andy Wilde is a director and shareholder.

Consultancy fees payable to Tomik Nominees Pty Ltd, of which Mr Ian Hastings is a director and 
shareholder.

2,100

48,000

-

-

Company Secretarial fees payable to DW Accounting & Advisory Pty Ltd, of which Mr Andrew Draffin 
is a director and shareholder

21,000

33,000

Directors' fees payable to DHL Corporate Advisory, of which Mr Donald Low is a director and 
shareholder.

- 

16,667

Reimbursement Transactions with related parties

Reimbursement of business expenses incurred by the Company and initially settled by DW Accounting & 
Advisory Pty Ltd, of which Mr Andrew Draffin is a director and shareholder. All expenses were incurred on 
an arm's length basis.

2018
$

2017
$

23,664

21,462

Reimbursement of business expenses incurred by the Company and initially settled by Ian Hastings. All 
expenses were incurred on an arm's length basis.

5,881

7,863

Amounts payable to related parties

DW Accounting & Advisory Pty Ltd
Tomik Nominees Pty Ltd
Anycall Pty Ltd
Wilde Geoscience
Ian Hastings
Draffin Walker Pty Ltd
DHL Corporate Advisory

Amounts due to related parties waived

Michael Neunlindger
Oscar Leon

2018
$

135,447
79,650
7,072
2,100
5,881
60,137
- 

290,287

2018
$

- 
- 

2017
$

223,233
20,083
11,083
-
7,863
60,137
4,167
326,566

2017
$

37,500
9,272
46,772

This concludes the remuneration report, which has been audited.

The Directors' Report, incorporating the Remuneration Report, is signed in accordance with a resolution of the Board of Directors made 
pursuant to s.298(2) of the Corporations Act 2001.

On behalf of the Directors

Andrew Draffin
Director
Dated: 27 September 2018

15

         
            
      
          
            
          
            
 
 
       
    
       
    
         
      
 
         
      
          
      
          
        
         
      
         
      
         
      
 
         
      
          
        
         
      
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AUDITOR’S INDEPENDENCE DECLARATION 
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 
TO THE DIRECTORS OF GLADIATOR RESOURCES LTD 

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2018 there have been: 

(i) 

no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in 
relation to the audit; and 

(ii) 

no contraventions of any applicable code of professional conduct in relation to the audit. 

MORROWS AUDIT PTY LTD  

L.S. WONG 
Director 

Melbourne: 27 September 2018 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2018

Consolidated Group

Note

2018
$

2017
$

Continuing operations
Audit and accounting expenses
Company secretarial fees
Consulting fees
Directors' benefits expense
Exploration expenditure (written off)
Fees and permits
Insurance
Legal costs
Rent and outgoings
Share registry maintenance fees
Travel and accomodation
Other expenses
Loss before income Tax
Tax expense
Net Loss from continuing operations
Discontinued operations
Loss from discontinued operations after tax
Net Loss for the year

Other comprehensive income:
Items that will be reclassified subsequently to profit or loss when specific 
conditions are met:
Exchange differences on translating foreign operations, net of tax
Total other comprehensive income/(loss) for the year
Total comprehensive income for the year

Earnings per share
From continuing and discontinued operations:
Basic and diluted loss per share (cents)

From continuing operations:
Basic and diluted loss per share (cents)

From discontinued operations:
Basic earnings/(loss) per share (cents)

(65,650)
(21,000)
(54,000)
(150,100)
(12,213)
(1,963)
 5,038 
(57,007)
- 
(12,114)
(15,592)
(47,786)
(432,387)
- 
(432,387)

- 
(432,387)

(102,925)
(33,000)
- 
(28,811)
(12,169)
(2,172)
(18,595)
(35,924)
(899)
(6,586)
(27,090)
(11,113)
(279,284)
- 
(279,284)

(4,002,745)
(4,282,029)

- 
- 
(432,387)

 224,753 
 224,753 
(4,057,276)

(0.06)

(0.06)

- 

(0.84)

(0.05)

(0.78)

3

4

7

7

7

The accompanying notes form part of these financial statements.

17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018

ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
TOTAL CURRENT ASSETS

NON-CURRENT ASSETS
Exploration Expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS

LIABILITIES
CURRENT LIABILITIES
Trade and other payables
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES

NET ASSETS

EQUITY
Issued capital
Retained earnings
TOTAL EQUITY

Consolidated Group

Note

2018
$

2017
$

8
9
10

12

13

14

 401,891 
 30,131 
 14,627 
 446,649 

 481,400 
 481,400 
 928,049 

 624,761 
 624,761 
 624,761 

 91,935 
 3,767 
- 
 95,702 

- 
- 
 95,702 

 483,782 
 483,782 
 483,782 

 303,288 

(388,080)

 20,183,462 
(19,880,174)
 303,288 

 19,059,707 
(19,447,787)
(388,080)

The accompanying notes form part of these financial statements.

18

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2018

Issued Capital

Accumulated 
Losses

$

$

Foreign Currency 
Translation 
Reserve
$

Total

$

 18,888,802 

(15,165,758)

(224,753)

 3,498,291 

- 

- 

- 

- 

(4,282,029)

- 

- 

(4,282,029)

- 

- 

 224,753 

 224,753 

(4,282,029)

- 

 224,753 

(4,057,276)

Consolidated Group

x

Balance at 1 July 2016

Comprehensive income
Loss for the year

Other comprehensive income for the year

Reclassification of foreign exchange  to profit and loss

Total comprehensive income for the year

Transactions with owners, in their capacity as 
owners, and other transfers
Shares issued during the year

Transaction costs

Total transactions with owners and other transfers

 181,810 

(10,905)

 170,905 

- 

- 

- 

Balance at 30 June 2017

 19,059,707 

(19,447,787)

Balance at 1 July 2017

 19,059,707 

(19,447,787)

Comprehensive income
Loss for the year

Other comprehensive income for the year

Total comprehensive income for the year

Transactions with owners, in their capacity as 
owners, and other transfers
Shares issued during the year

Exercise of options during the year

Transaction costs

Total transactions with owners and other transfers

- 

- 

- 

(432,387)

- 

(432,387)

 1,030,000 

 138,755 

(45,000)

 1,123,755 

- 

- 

- 

- 

Balance at 30 June 2018

 20,183,462 

(19,880,174)

The accompanying notes form part of these financial statements.

19

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

 181,810 

(10,905)

 170,905 

(388,080)

(388,080)

(432,387)

- 

(432,387)

 1,030,000 

 138,755 

(45,000)

 1,123,755 

 303,288 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED 30 JUNE 2018

Consolidated Group

Note

2018
$

2017
$

CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Net cash (used in) by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration expenditure
Net cash (used in) by investing activities

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Proceeds from exercise of options
Transaction costs
Net cash provided by financing activities

Net increase in cash held

17a

Cash and cash equivalents at beginning of financial year

Cash and cash equivalents at end of financial year

8

(412,828)
(412,828)

(116,531)
(116,531)

 749,961 
 138,854 
(49,500)
 839,315 

 309,956 

 91,935 

 401,891 

(123,254)
(123,254)

(16,552)
(16,552)

 181,749 
- 
(10,905)
 170,844 

 31,038 

 60,897 

 91,935 

The accompanying notes form part of these financial statements.

20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

The Directors of Gladiator Resources Limited and its subsidiaries ("the Group") submit herewith the annual report of the Group for the financial year ended 
30 June 2018. The separate financial statements of the parent entity, Gladiator Resources Limited, have not been presented within this financial report as 
permitted by the Corporations Act 2001. Refer to Note 2 for the Parent information.

The financial statements were authorised for issue on 27 September 2018 by the directors of the company.

Note 1

Summary of Significant Accounting Policies

Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, Australian 
Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The Group is 
a for-profit entity for financial purposes under the Australian Accounting Standards.

Australian Accounting Standards set out accounting policies that the Australian Accounting Standards Board has concluded would result in financial 
statements containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards 
ensures that the financial statements and notes also comply with the International Financial Reporting Standards. These financial statements also comply 
with the International Financial Reporting Standards issued by the International Accounting Standards Board (IASB). Material accounting policies adopted 
in the preparation of financial statements are presented below and have been consistently applied unless stated otherwise.

Except for cash flow information, the financial statements have been prepared on an accrual basis and are based on historical costs, modified, where 
applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

(a)

Principles of Consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Gladiator Resources Limited ("Company" or "Parent 
entity") as at 30 June 2018 and the results of all subsidiaries for the year then ended. Gladiator Resources Limited and its subsidiaries together are 
referred to in these financial statements as the 'consolidated group'. A list of controlled entities is contained in Note 11 to the financial statements.

Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls and has the ability to affect those 
returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the 
consolidated entity. They are de-consolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised losses 
are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been 
changed where necessary to ensure consistency with the policies adopted by the consolidated group.

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, 
is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-
controlling interest acquired is recognised directly in equity attributable to the parent.

Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive 
income, statement of financial position and statement of changes in equity of the consolidated group. Losses incurred by the consolidated group are 
attributed to the non-controlling interest in full, even if that results in a deficit balance.

Where the consolidated group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in 
the subsidiary together with any cumulative translation differences recognised in equity. The consolidated group recognises the fair value of the 
consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.

(b)

Income Tax

The income tax expense (income) for the year comprises current income tax expense (income) and deferred tax expense (income).

Current income tax expense charged to profit or loss is the tax payable on taxable income for the current period. Current tax liabilities (assets) are 
measured at the amounts expected to be paid to (recovered from) the relevant taxation authority using tax rates (and tax laws) that have been enacted 
or substantively enacted by the end of the reporting period.

Deferred tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses. 

Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to items that are recognised 
outside profit or loss or arising from a business combination.

A deferred tax liability shall be recognised for all taxable temporary differences, except to the extent that the deferred tax liability arises from: (a) the 
initial recognition of goodwill; or (b) the initial recognition of an asset or liability in a transaction which: (i) is not a business combination; and (ii) at the 
time of the transaction, affects neither accounting profit nor taxable profit (tax loss).

Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability, where there is no effect on 
accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is 
settled and their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or 
liability. With respect to non-depreciable items of property, plant and equipment measured at fair value and items of investment property measured at 
fair value, the related deferred tax liability or deferred tax asset is measured on the basis that the carrying amount of the asset will be recovered 
entirely through sale. When an investment property that is depreciable is held by the entity in a business model whose objective is to consume 
substantially all of the economic benefits embodied in the property through use over time (rather than through sale), the related deferred tax liability or 
deferred tax asset is measured on the basis that the carrying amount of such property will be recovered entirely through use.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable 
profit will be available against which the benefits of the deferred tax asset can be utilised.

Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and 
liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will 
occur in the foreseeable future.

21

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

(Note 1: Summary of Significant Accounting Policies (Cont'd))

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous 
realisation and settlement of the respective asset and liability will occur.  Deferred tax assets and liabilities are offset where: (i) a legally enforceable 
right of set-off exists; and (ii) the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same 
taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and 
liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

(d)

Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and 
impairment losses.

Plant and equipment

Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any accumulated impairment.  In 
the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down 
immediately to the estimated recoverable amount and impairment losses are recognised either in profit or loss. A formal assessment of recoverable 
amount is made when impairment indicators are present (refer to Note 1(i) for details of impairment).

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these 
assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset's employment and 
subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

The cost of fixed assets constructed within the consolidated group includes the cost of materials, direct labour, borrowing costs and an appropriate 
proportion of fixed and variable overheads.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future 
economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance 
are recognised as expenses in profit or loss during the financial period in which they are incurred.

Depreciation

The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, is depreciated on a straight-
line basis over the asset's useful life to the Group commencing from the time the asset is held ready for use. Leasehold improvements are depreciated 
over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated 
recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are recognised in profit or 
loss in the period in which they arise. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred 
to retained earnings.

(e)

Exploration and Development Expenditure

Exploration, evaluation and development expenditures incurred is capitalised in respect of each identifiable area of interest. These costs are only 
capitalised to the extent that they are expected to be recovered through the successful development of the area or where activities in the area have 
not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

Accumulated costs in relation to an abandoned area are written off in full against profit or loss in which the decision to abandon the area is made.

When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of 
depletion of the economically recoverable reserves.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in relation to that area.

Costs of site restoration are provided for over the life of the project from when exploration commences and are included in the costs of that stage. Site 
restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation of the site 
in accordance with local laws and regulations and clauses of the permits. Such costs have been determined using estimates of future costs, current 
legal requirements and technology on an undiscounted basis.

Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs of site restoration, there is uncertainty 
regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly the costs have been determined 
on the basis that the restoration will be completed within one year of abandoning the site.

\

(f)

Financial Instruments

Recognition and Initial Measurement
Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial 
assets, this is the date that the entity commits itself to either the purchase or sale of the asset (ie trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified ‘at fair value through profit or 
loss’ in which case transaction costs are expensed to profit or loss immediately. Where available, quoted prices in an active market are used to 
determine fair value. In other circumstances, valuation techniques are adopted.

Classification and Subsequent Measurement

Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost. 

Amortised cost  is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments 
and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount 
calculated using the effective interest method.

22

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

(Note 1: Summary of Significant Accounting Policies (Cont'd))

The effective interest method  is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that 
discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) over the expected life (or 
when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial 
liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of an 
income or expense item in profit or loss.

The Group does not designate any interests in subsidiaries, associates or joint ventures as being subject to the requirements of Accounting Standards 
specifically applicable to financial instruments.

(i)

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are 
subsequently measured at amortised cost.

Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

(ii)

Financial Liabilities

Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. Gains or losses are recognised in 
profit or loss through the amortisation process and when the financial liability is derecognised.

Contingent consideration of an acquirer in a business combination to which AASB 3: Business Combinations applies is classified as a financial 
liability and measured at fair value through profit or loss. 

Impairment

A financial asset (or a group of financial assets) is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or 
more events (a “loss event”) having occurred, which has an impact on the estimated future cash flows of the financial asset(s).

In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered to constitute a 
loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other 
comprehensive income is reclassified into profit or loss at this point.

Financial assets, other than those measured at fair value through profit or loss, are assessed for indicators of impairment at the end of each reporting 
period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the 
initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

For available-for-sale equity instruments, including listed or unlisted shares, objective evidence of impairment includes information about significant 
changes with an adverse effect that have taken place in the technological, market, economic or legal environment in which the issuer operates, and 
indicates that the cost of the investment in the equity instrument may not be recovered. A significant or prolonged decline in the fair value of the 
security below its cost is considered to be objective evidence of impairment for shares classified as available-for-sale. For all other financial assets, 
including redeemable notes classified as available-for-sale and finance lease receivables, objective evidence of impairment could include: significant 
financial difficulty of the issuer or counterparty; breach of contract, such as a default or delinquency in interest or principal payments; it becoming 
probable that the borrower will enter bankruptcy or financial reorganisation; or the disappearance of an active market for that financial asset because 
of financial difficulties. For certain categories of financial assets, such as trade receivables, assets that are assessed for impairment on a collective 
basis even if they were assessed not to be impaired individually. Objective evidence of impairment for a portfolio of receivables could include the 
Group’s past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period of 60 
days, as well as observable changes in national or local economic conditions that correlate with default on receivables.

For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the asset’s carrying amount and 
the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. For financial assets that are carried 
at cost, the amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of the estimated 
future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent 
periods. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade 
receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is 
written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. 
Changes in the carrying amount of the allowance account are recognised in profit or loss.

For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be 
related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or 
loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would 
have been had the impairment not been recognised.
At the end of each reporting period the group assessed whether there is any objective evidence that a financial asset or group of financial assets is 
impaired (other than financial assets classified as at fair value through profit or loss).

Derecognition

Financial assets are derecognised when the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the 
entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised 
when the related obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability 
extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is 
recognised in profit or loss.

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset 
and substantially all the risks and rewards of ownership of the asset to another party. If the Group neither transfers nor retains substantially all the 
risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an 
associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial 
asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received. On derecognition 
of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the 
cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in profit or loss.

23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

(Note 1: Summary of Significant Accounting Policies (Cont'd))

(i)

Impairment of Assets

At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The assessment will include 
the consideration of external and internal sources of information, including dividends received from subsidiaries, associates or joint ventures deemed 
to be out of pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of 
the asset, being the higher of the asset’s fair value less costs of disposal and value in use, to the asset’s carrying amount. Any excess of the asset’s 
carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance 
with another Standard (eg in accordance with the revaluation model in AASB 116: Property, Plant and Equipment ). Any impairment loss of a revalued 
asset is treated as a revaluation decrease in accordance with that other Standard.

Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating 
unit to which the asset belongs.

Impairment testing is performed annually for goodwill, intangible assets including capitalised exploration expenditure with indefinite lives and intangible 
assets not yet available for use.

When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its 
recoverable amount, but so 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 (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in 
profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation 
increase.

(j)

Provisions

Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of 
economic benefits will result and that outflow can be reliably measured.

Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.

(k)

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and deposits available on demand with banks. 

(l)

Revenue and Other Income

Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates 
allowed.  When the inflow of consideration is deferred it is treated as the provision of financing and is discounted at a rate of interest that is generally 
accepted in the market for similar arrangements.  The difference between the amount initially recognised and the amount ultimately received is interest 
revenue.

Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership 
of the goods and the cessation of all involvement in those goods.

Interest revenue is recognised using the effective interest method.

Dividend revenue is recognised when the right to receive a dividend has been established. Dividends received from associates and joint ventures are 
accounted for in accordance with the equity method of accounting. The carrying amount of the investment in the associate must be decreased by the 
amount of dividends received or receivable from the associate.

Revenue recognition relating to the provision of services is determined with reference to the stage of completion of the transaction at the end of the 
reporting period where the outcome of the contract can be estimated reliably.  Stage of completion is determined with reference to the services 
performed to date as a percentage of total anticipated services to be performed.  Where the outcome cannot be estimated reliably, revenue is 
recognised only to the extent that related expenditure is recoverable.

Finance income is recognised on a straight-line basis over the period of the lease term so as to reflect a constant periodic rate of return on the net 
investment.

All revenue is stated net of the amount of goods and services tax.

(m)

Trade and Other Receivables

Trade and other receivables include amounts due from customers for goods sold and services performed in the ordinary course of business.  
Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets.  All other receivables are 
classified as non-current assets.

Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, 
less any provision for impairment. Refer to Note 1(l) for further discussion on the determination of impairment losses.

(n)

Trade and Other Payables

Trade and other payables represent the liabilities for goods and services received by the entity that remain unpaid at the end of the reporting period. 
The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. Trade and other payables 
are initially measured at fair value and subsequently measured at amortised cost using the effective interest method.

(o)

Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the 
Australian Taxation Office (ATO).  

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, 
the ATO is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable 
from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.

24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

(Note 1: Summary of Significant Accounting Policies (Cont'd))

(q)

Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. 

Where the Group retrospectively applies an accounting policy, makes a retrospective restatement or reclassifies items in its financial statements, an 
additional (third) statement of financial position as at the beginning of the preceding period in addition to the minimum comparative financial statement 
is presented.

(r)

Critical Accounting Estimates and Judgements

The directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best available current 
information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both 
externally and within the Group.

Key Judgements

(ii) Exploration and Evaluation Expenditure

Exploration expenditures incurred are capitalised in respect of each identifiable area of interest. These costs are only capitalised to the extent that they 
are expected to be recovered through the successful development of the area or where activities in the area have not yet reached a stage that permits 
reasonable assessment of the existence of economically recoverable reserves,

Accumulated costs in relation to a relinquished area are written off in full against the profit or loss in the year in which the decision to abandon the area 
is made.

When production commences, the accumulated costs for the relevant area of interest will be amortised over the life of the area according to the rate of 
depletion of the economically recoverable reserves.

(s) New Accounting Standards for Application in Future Periods

Accounting Standards issued by the AASB that are not yet mandatorily applicable to the Group, together with an assessment of the potential impact of 
such pronouncements on the Group when adopted in future periods, are discussed below:

—

AASB 9: Financial Instruments  and associated Amending Standards (applicable to annual reporting periods beginning on or after 1 January 
2018).

The Standard will be applicable retrospectively (subject to the provisions on hedge accounting outlined below) and includes revised requirements 
for the classification and measurement of financial instruments, revised recognition and derecognition requirements for financial instruments and 
simplified requirements for hedge accounting.

The key changes that may affect the Group on initial application include certain simplifications to the classification of financial assets, 
simplifications to the accounting of embedded derivatives, upfront accounting for expected credit loss, and the irrevocable election to recognise 
gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. AASB 9 also introduces a new 
model for hedge accounting that will allow greater flexibility in the ability to hedge risk, particularly with respect to hedges of non-financial items. 
Should the entity elect to change its hedge policies in line with the new hedge accounting requirements of the Standard, the application of such 
accounting would be largely prospective.

The Group has established an AASB 9 project team and is in the process of completing its impact assessment of AASB 9. Based on a preliminary 
assessment performed over each line of business and product type, the effects of AASB 9 are not expected to have a material effect on the 
Group.

—

AASB 2014-7: Amendments to Australian Accounting Standards arising from AASB 9  (December 2014)

AASB 2014-7 (issued December 2014) gives effect to the consequential amendments to Australian Accounting Standards (including 
Interpretations) arising from the issue of AASB 9: Financial Instruments (December 2014). More significantly, additional disclosure requirements 
have been added to AASB 7: Financial Instruments: Disclosures regarding credit risk exposures of the entity. This Standard also makes various 
editorial corrections to Australian Accounting Standards and an Interpretation.

AASB 2014-7 mandatorily applies to annual reporting periods beginning on or after 1 January 2018. Earlier application is permitted, provided 
AASB 9 (December 2014) is applied for the same period.

—

AASB 16: Leases (applicable to annual reporting periods beginning on or after 1 January 2019).
When effective, this Standard will replace the current accounting requirements applicable to leases in AASB 117: Leases and related 
Interpretations. AASB 16 introduces a single lessee accounting model that eliminates the requirement for leases to be classified as operating or 
finance leases.

The main changes introduced by the new Standard are as follows:

—

—

—

—

recognition of a right-of-use asset and lease liability for all leases (excluding short-term leases with a lease term of 12 months or less of 
tenure and leases relating to low-value assets);

depreciation of right-of-use assets in line with AASB 116: Property, Plant and Equipment  in profit or loss and unwinding of the liability in 
principal and interest components;

inclusion of variable lease payments that depend on an index or a rate in the initial measurement of the lease liability using the index or rate 
at the commencement date;

application of a practical expedient to permit a lessee to elect not to separate non-lease components and instead account for all components 
as a lease; and

—

inclusion of additional disclosure requirements.

The transitional provisions of AASB 16 allow a lessee to either retrospectively apply the Standard to comparatives in line with AASB 108 or 
recognise the cumulative effect of retrospective application as an adjustment to opening equity on the date of initial application.

The Group has established an AASB 16 project team and is in the process of completing its impact assessment of AASB 16. Based on a 
preliminary assessment performed over each line of business and lease type, the effect of AASB 16 is not expected to have a material effect on 
the Group. It is impracticable at this stage to provide a reasonable estimate of such impact.

25

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

(Note 1: Summary of Significant Accounting Policies (Cont'd))

(t) Going Concern

The financial report have been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation 
of assets and the settlement of liabilities in the ordinary course of business.

The Group generated a loss of $432,387 (2017: loss of $4,282,029) and net cash outflows from the operating activities of $412,818 (2017: net cash 
outflows of $123,254) for the year ended 30 June 2018. As of that date, the Group had net assets of $303,288 (2017: Net deficit of $388,080). These 
conditions indicate a material uncertainty that may cast significant doubt concerning the ability of the Group to continue as a going concern.

The Directors have prepared a cash flow forecast for the next 12 months based on best estimates of future inflows and outflows of cash to support the 
Group's ability to continue as a going concern. The Directors are confident that they can raise capital when required as they have been successful in 
the past.

Note 2

Parent Information

The following information has been extracted from the books and records of the financial 
information of the parent entity set out below and has been prepared in accordance with 
Australian Accounting Standards.

STATEMENT OF FINANCIAL POSITION

ASSETS

Current Assets
Non-current Assets
TOTAL ASSETS

LIABILITIES

Current Liabilities
Non-current Liabilities
TOTAL LIABILITIES

NET ASSETS

EQUITY

Issued Capital
Accumulated losses
TOTAL EQUITY

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Loss for the year
Other comprehensive income
Total comprehensive income

Contingent liabilities

Gladiator Resources Limited has no commitments and contingent liabilities at the date of this report.

Note 3

Tax Expense

2018
$

2017
$

 435,313 
 481,600 
 916,913 

 624,761 
- 
 624,761 

 91,995 
 12,136 
 104,131 

 500,713 
- 
 500,713 

 292,152 

(396,582)

 20,183,462 
(19,891,310)
 292,152 

 19,059,707 
(19,456,289)
(396,582)

(435,021)
- 
(435,021)

(263,889)
- 
(263,889)

Consolidated Group

2018
$

2017
$

(a)

The prima facie tax on profit from ordinary activities before income tax is reconciled to 
income tax as follows:

Prima facie tax payable on profit from ordinary activities before income tax at 27.5% (2017: 
27.5%)

—

consolidated group

Add:

Tax effect of:

Deferred tax not brought to account

—
Income tax attributable to entity

Balance of franking account at year end

(188,041)

(1,177,558)

 188,041 
- 

nil

 1,177,558 
- 

nil

0.0%

26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

(Note 3: Tax Expense (Cont'd))

(d) Tax losses

Unused tax losses for which no deferred tax asset has been recognised

            1,745,630              1,557,589 

Potential deferred tax assets attributable to tax losses and exploration expenditure carried forward have not been brought to account at 30 June 2018 
because the directors do not believe it is appropriate to regard realisation of the deferred tax assets as probable at this point in time. These benefits 
will only be obtained if:

-

-
-

the company derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the loss and 
exploration expenditure to be realised;
the company continues to comply with conditions for deductibility imposed by law; and
no changes in tax legislation adversely affect the company in realising the benefit from the deductions for the loss and exploration expenditure.

(d)

The prima facie tax on profit from ordinary activities before income tax is reconciled to 
income tax as follows:

(Loss) from continuing operations

Income tax (benefit) calculated at 27.5%

Effect of deductible expenses

Effect of unused tax losses and tax offsets not recognised as deferred tax
Income tax attributable to entity

Note 4

Discontinued Operations

Consolidated Group

2018
$

2017
$

(432,387)

(118,906)

(69,135)

 188,041 
- 

(279,284)

(76,803)

-

 76,803 
- 

On 15 December 2016, the Company announced a Binding Agreement was executed for the disposal of the Groups six Uruguayan subsidiaries, subject to 
shareholder approval, which was granted on 6 February 2017.

On 21 February 2017, the Company announced the completion of the sale of all its Uruguayan subsidiaries and their underlying assets to Metamila Limited.

The financial performance of the discontinued operations up to 21 February 2017, which is included in loss from discontinued operations per the statement 
of comprehensive income, is as follows:

Revenue
Expenses
Impairment of exploration assets
Foreign exchange losses
Profit before income tax
Income tax (expense)/benefit
Profit/(loss) attributable to owners of the parent entity

Tax loss after tax attributable to the discontinued operations

The table below shows a break down of the current assets and current liabilities held for sale.

Assets
Liabilities
Net Assets

Consolidated Group

2018
$

2017
$

 26,523 
(64,731)
(3,667,460)
(297,077)
(4,002,745)
- 
(4,002,745)

(4,002,745)

- 
- 
- 
- 
- 
- 
- 

- 

Consolidated Group

2018
$

2017
$

- 
- 
- 

- 
- 
- 

The net cash flows of the discontinued operation, which have been incorporated into the statement of cash flows, are as follows:

Net cash (outflow) from operating activities
Net cash (outflow) from investing activities
Net cash (outflow) from financing activities
Net decrease in cash by discontinued operations

Note 5

Key Management Personnel Compensation

Consolidated Group

2018
$

2017
$

- 
- 
- 
- 

(55,440)
- 
- 
(55,440)

Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or payable to each member of the Group’s key 
management personnel (KMP) for the year ended 30 June 2018.

The totals of remuneration paid to KMP of the company and the Group during the year are as follows:

Short-term employee benefits
Total KMP compensation

Further information in relation to KMP remuneration can be found in the Remuneration Report.

2018
$
 150,100 
 150,100 

2017
$

 75,583 
 75,583 

27

              
                
                
                          
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

Note 6

Auditor’s Remuneration

Remuneration of the auditor for:
—

auditing or reviewing the financial statements

Note 7

Earnings per Share

(a)

Reconciliation of earnings to profit or loss

Loss

Losses used to calculated basic EPS

(b)

Weighted average number of ordinary shares outstanding during the year 
used in calculating basic EPS

Weighted average number of ordinary shares outstanding during the year 
used in calculating dilutive EPS

Note 8

Cash and Cash Equivalents

Cash at bank and on hand 

Short-term bank deposits

Reconciliation of cash

Cash and cash equivalents at the end of the financial year as shown in the 
statement of cash flows is reconciled to items in the statement of financial position 
as follows:

Cash and cash equivalents

Note 9

Trade and Other Receivables

CURRENT

Other receivables

—

—

sundry receivables

GST receivables

Total current trade and other receivables

Credit risk

Consolidated Group

2018
$

2017
$

 32,950 

 32,950 

 22,250 

 22,250 

Consolidated Group

2018
$

2017
$

(432,387)

(432,387)

(4,282,029)

(4,282,029)

No.

No.

 717,389,125 

 511,382,134 

 819,653,726 

 511,382,134 

Note

Consolidated Group

2018
$
 401,891 

- 

 401,891 

2017
$

 91,935 

- 

 91,935 

20

 401,891 

 401,891 

 91,935 

 91,935 

Consolidated Group

2018
$

2017
$

- 

 30,131 

 30,131 

 61 

 3,706 

 3,767 

The Group has no significant concentration of credit risk with respect to any single counter party or group of counter parties other than those receivables 
specifically provided for and mentioned within Note 9. The class of assets described as Trade and Other Receivables is considered to be the main source 
of credit risk related to the Group.

The following table details the Group’s trade and other receivables exposed to credit risk (prior to collateral and other credit enhancements) with ageing 
analysis and impairment provided for thereon.  Amounts are considered as ‘past due’ when the debt has not been settled with the terms and conditions 
agreed between the Group and the customer or counter party to the transaction.  Receivables that are past due are assessed for impairment by 
ascertaining solvency of the debtors and are provided for where there are specific circumstances indicating that the debt may not be fully repaid to the 
Group.

The balances of receivables that remain within initial trade terms (as detailed in the table) are considered to be of high credit quality.

Consolidated Group

2018
Other receivables

Total

Consolidated Group

2017

Other receivables

Total

Gross 
Amount

Past due and 
impaired

$

 30,131 

 30,131 

$

- 

- 

Gross 
Amount

Past due and 
impaired

$

 3,767 

 3,767 

$

- 

- 

Past due but not impaired
(days overdue)

Within initial trade 
terms

<30
$

31-60
$

61-90
$

- 

- 

- 

- 

- 

- 

- 

- 

Past due but not impaired
(days overdue)

31-60
$

61-90
$

- 

- 

- 

- 

<30
$

28

>90
$

>90
$

$

 30,131 

 30,131 

Within initial trade 
terms

$

 3,767 

 3,767 

- 

- 

- 

- 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

Note 10

Other Assets

CURRENT

Prepayments

Total Other Assets

Current

Non-current

Consolidated Group

2018
$

2017
$

 14,627 

 14,627 

 14,627 

- 

 14,627 

- 

- 

- 

- 

- 

Note 11

Interests in Subsidiaries

(a)

Information about Principal Subsidiaries

The subsidiaries listed below have share capital consisting solely of ordinary shares or ordinary units which are held directly by the Group. The 
proportion of ownership interests held equals the voting rights held by Group. Each subsidiary’s principal place of business is also its country of 
incorporation.

Name of subsidiary

Principal place of business

Ecochar Pty Ltd

Ion Resources Pty Ltd

Ferrous Resources Pty Ltd

Australia

Australia

Australia

Ownership interest held by the Group

2018
(%)

100

100

100

2017
(%)

100

100

100

Subsidiary financial statements used in the preparation of these consolidated financial statements have also been prepared as at the same reporting 
date as the Group’s financial statements.

(b) Significant Restrictions

There are no significant restrictions over the Group's ability to access or use assets and settle liabilities, of the Group.

Note 12

Exploration Expenditure

NON-CURRENT

Acquisition of 51% of Orosur Mining Joint Venture

Balance at beginning of year

Impairment of carrying value of capitalised exploration expenditure

Disposed during the year

Balance at end of year

Mineral exploration and evaluation expenditure

Balance at beginning of year

Current year expenditure capitalised

Exploration costs written off

Balance at end of year

Total Exploration Expenditure

Mineral exploration and evaluation expenditure

Balance at end of year

Consolidated Group

2018
$

2017
$

 5,467,000 

(3,667,460)

(1,799,540)

- 

- 

- 

- 

- 

- 

- 

- 

- 

 493,613 

(12,213)

 481,400 

 481,400 

 481,400 

On 21 February 2017, the Company announced it had completed the sale of all its Uruguayan subsidiaries, and their underlying assets, to Metamila 
Limited, a company incorporated in Beliza.

The total value of the consideration received of $1.7 million, was applied against the Company's and its subsidiaries outstanding liabilities as at date of 
completion. This was determined in accordance with the share sale agreement between the Company and Metamila Limited.

On 6 October 2017, 5,000,000 fully paid ordinary shares were issued to Flinders Exploration Limited in relation to the acquisition of Exploration Licence 
E52/3104. The value of the shares at date of issue was $20,000.

On 17 May 2018, 35,000,000 fully paid ordinary shares were issued to Thunderbird Metal Pty Ltd and vendors in relation to the acquisition of the earn in 
rights for up to 70% of the North Arunta Gold Project. The value of the shares at date of issue was $210,000.

29

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

(Note 12: Exploration Expenditure (Cont'd))

Joint Venture Interest

The Heads of Agreement with Thunderbird Metals Pty Ltd provides that the Company will be assigned the rights to earn up to 70% joint venture interest in 
the North Arunta Project on the following basis:

-

-

the Company will have the exclusive right to earn a 51% interest in the North Arunta Project by expending $2.5 million on exploration expenditure on 
the North Arunta Project (Earn-in Obligations)  over an earn-in period of 2.5 years (Earn-In Period);

upon completing the Earn-In obligations within the Earn-In Period, the Company will establish a joint venture with Prodigy Gold NL formerly ABM 
Resources NL (PRX). The Company will have the right to earn an additional 19% interest in the North Arunta Project upon expending an additional $4 
million on exploration expenditure within 2 years from the commencement of the joint venture.

Upon completion of a bankable feasibility study, PRX has the right to elect to:

-

-

convert ABM's 30% interest I the North Arunta Project to a 1.5% net smelter royalty and the Company will make a one-off payment of $2.5 million in 
cash within 12 months of commencement of production; or

co-fund all future exploration and development.

Consideration

In consideration for the Proposed Transaction as stated within the Heads of Agreement with Thunderbird, the Company will provide the following 
consideration shares (Milestone Shares)  and consideration options (Milestone Options) in the share capital of the Company to Thunderbird Metals Pty Ltd 
Vendors or their nominees (together, Milestone Securities ;

(a)

(b)
(c) 

(d)

35 million Shares and 35 million Options upon completion of the Proposed Transaction and the Company completing a successful capital raising of 
$500,000. (Milestone 1) - completed in May 2018;

20 million Options upon the Company completing a successful capital raising of an additional $500,000. (Milestone 2);
50 million Shares upon certification by an independent competent person in accordance with JORC Code 2012 of an Indicated Mineral Resource of 
200,000 oz AU at a minimum grade of 1.3g/t AU and minimum tonnage of 320,000 tonnes or ore, on the North Arunta Project. (Milestone 3);

50 million shares and 50 million Options upon certification by an independent competent person in accordance with JORC Code 2012 of an Indicated 
Mineral Resource of 500,000 oz Au at a minimum grade of 1.1g/t Au and minimum tonnage of 800,000 tonnes of ore, on the North Arunta Project. 
(Milestone 4);

(e) 

50 million shares and 50 million options upon completion of Milestone 4 and a bankable feasibility study on the North Arunta Project. (Milestone 5); and

(f) 

50 million shares and 50 million options upon certification by an independent competent person in accordance with JORC Code 2012 of an Indicated 
Mineral Resource of 1,000,000 oz Au at a minimum grade of 0.7g/t Au and minimum tonnage of 1,600,000 tonnes of ore, on the North Arunta Project. 
(Milestone 6)

The value of the Company's interest in exploration expenditure is dependent upon the:

-
-
-

continuance of the economic entity's right to tenure of the areas of interest;
the results of future exploration; and
the recoupment of costs through successful development and exploitation of the areas of interest, or alternatively, by their sale.

Ultimate recovery of deferred exploration and evaluation costs is dependent upon the success of pre-feasibility studies, exploration and evaluation or sale 
or farm-out of the exploration interest. Broadly, the Company has three cost centres, Corporate, Pre-feasibility and Exploration. Where identifiable, costs 
associated with the Pre-feasibility and Exploration cost centres are capitalised. These costs are annually reviewed for impairment and a charge is made 
direct to the Statement of profit or loss and other comprehensive income of the Company where an impairment id identified.

The Group has reviewed all of its tenements and has only carried forward the expenses on the tenements that give rise to a potential economic benefit to 
the Company through development or exploration.

Impairment Indicators

-

-
-

-

-
-

The period for which the entity has the right to explore in the specific area has expired during the period or will expire in the near future, and is not 
expected to be renewed;
Substantiative expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned;
Exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral 
resources and the entity has decided to discontinue such activities in the specific area;

Sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and 
evaluation asset is unlikely to be recovered in full from successful development or by sale;
Evidence is available of obsolescence or physical damage of an asset;
The net assets of the Group exceeds its market capitalisation.

Note 13

Trade and Other Payables

CURRENT
Unsecured liabilities
Trade payables
Sundry payables and accrued expenses

(a) Financial liabilities at amortised cost classified as  trade and other payables 

Trade and other payables
— Total current 
— Total non-current 

30

Consolidated Group

2018
$

2017
$

 513,661 
 111,100 
 624,761 

 232,356 
 251,426 
 483,782 

Consolidated Group

2018
$

2017
$

 624,761 
- 
 624,761 

 483,782 
- 
 483,782 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

Note 14

Issued Capital

866,834,171 fully paid ordinary shares (2017: 582,396,672)

The company has authorised share capital amounting to 866,834,171 fully paid ordinary shares.

(a)

Ordinary Shares

At the beginning of the reporting period

Shares issued during the year

At the end of the reporting period

Consolidated Group

2018
$

2017
$

 20,183,462 

 20,183,462 

 19,059,707 

 19,059,707 

Consolidated Group

2018

No.

2017

No.

 582,396,672 

 465,970,476 

 284,437,499 

 116,426,196 

 866,834,171 

 582,396,672 

On 25 July 2017, 16,666,666 fully paid ordinary shares were issued at $0.003 per share, raising a total of $50,000. These shares were issued as part 
of a debt conversion.

On 18 September 2017, 75,000,000 fully paid ordinary shares were issued at $0.002 per share, raising a total of $94,000, net of capital raising costs.

On 6 October 2017, 25,000,000 fully paid ordinary shares were issued at $0.004, raising a total of $114,000, net of capital raising costs. In addition, 
5,000,000 fully paid ordinary shares were issued at $0.004 as consideration for the acquisition of Exploration Tenement E52/3104. Value of shares 
issued was $20,000.

In March 2018, 27,770,833 fully paid ordinary shares were issued as a result of exercise of options. A total of $138,854 was raised.

On 29 March 2018, 100,000,000 fully paid ordinary shares were issued at $0.005, raising a total of $470,000, net of capital raising costs.

On 17 May 2018, 35,000,000 fully paid ordinary shares were issued at a nominated value of $0.006 per share. The shares were issued after the 
conditions precedent for the completion of The North Arunta Project milestone one were satisfied. Value of shares issued were $210,000. Refer to 
Note 12: Exploration Expenditure for further information.

(b)

Options

The following reconciles the outstanding unlisted options to subscribe for fully paid ordinary shares in the Company at the beginning and end of the 
financial year.

At the beginning of the reporting period 

Issued during the financial year

Exercised during the financial year

Balance at the end of the financial year

Exercisable at the end of the financial year

Details of options on issue as at the date of this report are as follows:

Consolidated Group

2018

No.

2017

No.

- 

 232,985,238 

 160,416,666 

(10,110)

(27,770,833)

(232,975,128)

 132,645,833 

 132,645,833 

- 

- 

 Number 

 Issue Date 

 Expiry Date 

 Exercise Price 

Unlisted options issued
Unlisted options issued
Unlisted options issued
Unlisted options issued

(c) Capital Management

25 July 2017
25 July 2017

  60,000,000 
18,895,833

24 July 2022
20 February 2019
  18,750,000  23 February 2018 20 February 2019
  35,000,000 
132,645,833

17 May 2020

17 May 2018

 $ 

$0.005
$0.005
$0.005
$0.005

Management controls the capital of the Group in order to maintain a sustainable debt to equity ratio, generate long-term shareholder value and ensure 
that the Group can fund its operations and continue as a going concern.

The Group’s debt and capital include ordinary share capital, redeemable preference shares, convertible preference shares and financial liabilities, 
supported by financial assets.

The Group is not subject to any externally imposed capital requirements.

Management effectively manages the Group’s capital by assessing the Group's financial risks and adjusting its capital structure in response to 
changes in these risks and in the market.  These responses include the management of debt levels, distributions to shareholders and share issues.

31

  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

(Note 14: Issued Capital (Cont'd))

There have been no changes in the strategy adopted by management to control the capital of the Group since the prior year. 

Total borrowings

Less cash and cash equivalents

Net debt

Total equity

Total capital

Gearing ratio

Note

8

Consolidated Group

2018
$

2017
$

- 

(401,891)

(401,891)

 303,288 

(98,603)

- 

(91,935)

(91,935)

(388,080)

(480,015)

N/A

N/A

Note 15

Contingent Liabilities and Contingent Assets

Gladiator Resources Limited has no known material contingent liabilities at the date of this report.

Note 16

Operating Segments

General Information

Identification of reportable segments

The Group has identified its operating segments based on the internal reports that are reviewed and used by the board of directors (chief operating 
decision makers) in assessing performance and in determining the allocation of resources. 

Unless stated otherwise, all accounts are reported to the Board of Directors, being the chief decision makers with respect to operating segments, which are 
determined in accordance with accounting policies that are consistent to those adapted in the annual financial statements of the consolidated entity.

Segment information

(i) Segment performance

30 June 2018

REVENUE
Other income
Interest revenue
Total segment revenue

Reconciliation of segment revenue to group revenue

Total consolidated revenue:

Expenses
Directors benefits expense
Consulting fees
Travel and accommodation
Exploration written off
Other expenses

Segment loss before tax

30 June 2017

REVENUE
Other income
Interest revenue
Total segment revenue

Reconciliation of segment revenue to group revenue

Total consolidated revenue:

Expenses
Employee benefits expense
Depreciation
Directors benefits expense
Travel and accommodation
Exploration written off
Other expenses

Segment loss before tax

32

Australia

$

Uruguay 
(discontinued)
$

Total

$

- 
- 
- 

 150,100 
 54,000 
 15,592 
 12,213 
 200,482 
 432,387 

(432,387)

- 
- 
- 

- 
- 
- 
- 
- 
- 

- 

- 
- 
- 

- 

 150,100 
 54,000 
 15,592 
 12,213 
 200,482 
 432,387 

(432,387)

Australia

$

Uruguay 
(discontinued)
$

Total

$

- 
- 
- 

 26,522 
- 
 26,522 

- 
- 
 28,811 
 27,090 
 12,169 
 211,214 
 279,284 

- 
 410 
- 
- 
 3,678,447 
 350,410 
 4,029,267 

 26,522 
- 
 26,522 

- 

- 
 410 
 28,811 
 27,090 
 3,690,616 
 561,624 
 4,308,551 

(279,284)

(4,002,745)

(4,282,029)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

(Note 16: Operating Segments (Cont'd))

(ii) Segment  assets

30 June 2018

Segment assets

Segment assets

Reconciliation of segment assets to group assets

Intersegment eliminations

Total group assets

30 June 2017

Segment assets

Segment assets

Reconciliation of segment assets to group assets

Intersegment eliminations

Total group assets

(iii) Segment liabilities

30 June 2018

Segment liabilities

Segment liabilities

Reconciliation of segment liabilities to group liabilities

Intersegment eliminations

Total group liabilities

30 June 2017

Segment liabilities

Segment liabilities

Reconciliation of segment liabilities to group liabilities

Intersegment eliminations

Total group liabilities

Note 17

Cash Flow Information

Australia

$

 928,049 

Uruguay 
(discontinued)
$

Total

$

-

-

-

-

928,049 

- 

 928,049 

Total

$

95,702 

- 

 95,702 

Total

$

624,761 

- 

 624,761 

Total

$

483,782 

- 

 483,782 

Australia

$

Uruguay 
(discontinued)
$

 95,702 

Australia

$

 624,761 

Uruguay 
(discontinued)
$

Australia

$

Uruguay 
(discontinued)
$

 483,782 

Consolidated Group

2018
$

2017
$

(a)

Reconciliation of Cash Flows from Operating Activities with Profit after Income Tax
Loss after income tax

(432,387)

(4,282,029)

Non-cash flows in profit

Depreciation

Write-off of capitalised expenditure

Realised foreign exchange movements

Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries:

(Increase)/decrease in trade and term receivables

(Increase)/decrease in prepayments

Increase in trade payables and accruals

Cash flows from operating activities

Note 18

Events After the Reporting Period

-

 12,213 

-

410 

3,667,460 

335,478 

(26,364)

(14,627)

 48,337 

(412,828)

 75,227 

- 

 80,200 

(123,254)

Other than the following, the directors are not aware of any significant events since the end of the reporting period.

The Company announced on 18 September 2018 that it had received firm commitments to raise up to $625,000 via the placement of 105,000,000 fully paid 
ordinary shares, raising $210,000 and $415,000 by way of loan facility. The loan facility is will be convertible to shares at $0.002 (0.2 cents) subject to 
shareholder approval at the next general meeting of the Company. The loan is non-interest bearing and will be repayable within 90 days should shareholder 
approval not be granted. 

The formal allotment of 105,000,000 fully paid ordinary shares was completed on 27 September 2018. 

A further $100,000 was raised resulting in 40,000,000 fully paid ordinary shares being issued at $0.0025 (0.25 cents) per share. The funds raised utilised 
the pre existing placement capacity granted by shareholders at the company's last General Meeting held on 28 June 2018.

33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

Note 19

Related Party Transactions

Related Parties

(a)

The Group's main related parties are as follows:

i.

Key Management Personnel:

Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any 
director (whether executive or otherwise) of that entity are considered key management personnel.

Short-term employee benefits

Total KMP compensation

ii.

Other Related Parties

Consolidated Group

2018

$

2017

$

 150,100 

150,100 

 75,583 

75,583 

Other related parties include entities controlled by the ultimate parent entity and entities over which key management personnel have joint control.

(b)

Transactions with related parties:

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless 
otherwise stated.

The following transactions occurred with related parties:

i.

Director related entities

Directors' fees payable to DW Accounting & Advisory Pty Ltd, of which Mr Andrew Draffin is 
a director and shareholder.

 36,000 

 27,750 

Consolidated Group

2018
$

2017
$

Directors' fees payable to Tomik Nominees Pty Ltd, of which Mr Ian Hastings is a director 
and shareholder.

Directors' fees payable to Anycall Pty Ltd, of which Mr Ian Richer is a director and 
shareholder.

Directors' fees payable to Wilde Geoscience, of which Dr Andy Wilde is a director and 
shareholder.

Consultancy fees payable to Tomik Nominees Pty Ltd, of which Mr Ian Hastings is a 
director and shareholder.

Company Secretarial fees payable to DW Accounting & Advisory Pty Ltd, of which Mr 
Andrew Draffin is a director and shareholder.

Directors' fees payable to DHL Corporate Advisory, of which Mr Donald Low is a director 
and shareholder.

(c)

Reimbursement Transactions with related parties

Reimbursement of business expenses incurred by the Company and initially settled by DW 
Accounting & Advisory Pty Ltd, of which Mr Andrew Draffin is a director and shareholder. All 
expenses were incurred on an arm's length basis.

 78,000 

 20,083 

 34,000 

 11,083 

 2,100 

 48,000 

- 

- 

 21,000 

 33,000 

-

16,667 

Consolidated Group

2018

$

2017

$

 23,664 

 21,462 

Reimbursement of business expenses incurred by the Company and initially settled by Ian 
Hastings. All expenses were incurred on an arm's length basis.

 5,881 

 7,863 

(d)

Amounts payable to related parties

DW Accounting & Advisory Pty Ltd

Tomik Nominees Pty Ltd

Anycall Pty Ltd

Wilde Geoscience

Ian Hastings

Draffin Walker Pty Ltd

DHL Corporate Advisory 

Amounts due to related parties waived

Michael Neunlindger

Oscar Leon

End of the year

34

Consolidated Group

2018
$

2017
$

 135,447 

 79,650 

 7,072 

 2,100 

 5,881 

 60,137 

-

 223,233 

 20,083 

 11,083 

 7,863 

 7,863 

 60,137 

4,167 

 290,287 

 334,429 

-

-

-

37,500 

9,272 

46,772 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

Note 20

Financial Risk Management

The Group’s financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and payable.

The totals for each category of financial instruments, measured in accordance with AASB 139: Financial Instruments: Recognition and Measurement  as 
detailed in the accounting policies to these financial statements, are as follows:

Financial Assets
Cash and cash equivalents

Loans and receivables

Total Financial Assets

Financial Liabilities
Financial liabilities at amortised cost

—

Trade and other payables

Total Financial Liabilities

Note

8

9

13

Consolidated Group

2018
$

2017
$

 401,891 

 30,131 

 432,022 

 91,935 

 3,767 

 95,702 

 624,761 

 624,761 

 483,782 

 483,782 

Specific Financial Risk Exposures and Management

The main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate risk, foreign 
currency risk and other price risk (commodity and equity price risk).  There have been no substantive changes in the types of risks the Group is exposed to, 
how these risks arise, or the Board’s objectives, policies and processes for managing or measuring the risks from the previous period.

a. Credit risk

Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to 
a financial loss to the Group.

The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics.
The credit risk on liquid fuds and derivative financial instruments is limited as the counterparties are banks with high credit ratings assigned by 
international credit rating agencies.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represent the Group's maximum 
exposure to credit risk.

b.

Liquidity risk

Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its obligations related to 
financial liabilities.  The Group manages this risk through the following mechanisms:

• preparing forward-looking cash flow analyses in relation to its operating, investing and financing activities;
• monitoring undrawn credit facilities;
• obtaining funding from a variety of sources;
• maintaining a reputable credit profile;
• managing credit risk related to financial assets;
• only investing surplus cash with major financial institutions; and
• comparing the maturity profile of financial liabilities with the realisation profile of financial assets

The following table details the Group's remaining contractual maturity for its financial liabilities and financial assets:

Financial liability and financial asset maturity analysis

Consolidated Group

2018
$

2017
$

2018
$

2017
$

2018
$

2017
$

2018
$

2017
$

Within 1 Year

1 to 5 years

Over 5 years

Total

Financial liabilities due for payment
Trade and other 
 624,761 
payables

 483,782 

Total expected
outflows

 624,761 

 483,782 

- 

- 

Consolidated Group

Within 1 Year

1 to 5 years

2018
$

2017
$

2018
$

2017
$

Financial Assets - cash flows realisable
Cash and cash 
equivalents

 401,891 

 91,935 

Trade, term and loans 
receivables

Total anticipated 
inflows

Net (outflow) / inflow 
on financial 
i
c. Market Risk

t

t

 30,131 

 3,767 

 432,022 

 95,702 

(192,739)

(388,080)

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Over 5 years

2018
$

2017
$

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

 624,761 

 483,782 

 624,761 

 483,782 

Total

2018
$

2017
$

 401,891 

 91,935 

 30,131 

 3,767 

 432,022 

 95,702 

(192,739)

(388,080)

i.

Interest rate risk

The Group's exposure to market risk primarily consists of financial risks associated with changes in interest rates as detailed below. As the level of risk
is low, the Group does not use any derivatives to hedge its exposure.

35

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

(Note 20: Financial Risk Management (Cont'd))

Sensitivity Analysis

A sensitivity analysis has been determined based on the exposure to interest rates at reporting date with the stipulated change taking place at the 
beginning of the financial year and held constant throughout the reporting period.

These sensitivities assume that the movement in a particular variable is independent of other variables.

Year ended 30 June 2018
+/- 0.75% in interest rates

Year ended 30 June 2017
+/- 0.75% in interest rates

Consolidated Group

Profit
$

Equity
$

 3,014 

 3,014 

Consolidated Group

Profit
$

Equity
$

 690 

 690 

There have been no changes in any of the methods or assumptions used to prepare the above sensitivity analysis from the prior year.

Fair Values

The Directors consider that the carrying amounts of financial assets and liabilities recorded at cost less any accumulated impairments in the financial 
statements approximates their fair values.

The fair values of financial assets and financial liabilities are determined in accordance with generally accepted pricing models.

-

Other financial assets and financial liabilities are determined in accordance with generally accepted pricing models.

Fair value estimation

The fair values of financial assets and liabilities are presented in the following table and can be compared to their carrying amounts as presented in the 
statement of financial position. 

Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material impact on 
the amounts estimated. Areas of judgement and the assumptions have been detailed below. Where possible, valuation information used to calculate fair 
value is extracted form the market, with more reliable information from markets that are actively traded. In this regard, fair values for listed securities are 
obtained from quoted market bid prices. Where securities are unlisted and no market quotes are available, fair value is obtained using discounted cash flow 
analysis and other valuation techniques commonly used by market participants.

Differences between fair values and carrying amounts of financial instruments with fixed interest rates are due to the change in discount rates being applied 
by the market since their initial recognition by the Group.

Consolidated Group
Financial assets
Cash and cash equivalents
Trade and other receivables:
Total financial assets

Financial liabilities
Trade and other payables
Total financial liabilities

Note

2018

2017

Carrying
Amount
$

Fair Value

$

Carrying
Amount
$

Fair Value

$

8

13

 401,891 
 30,131 
 432,022 

 624,761 
 624,761 

 401,891 
 30,131 
 432,022 

 624,761 
 624,761 

 91,935 
 3,767 
 95,702 

 483,782 
 483,782 

 91,935 
 3,767 
 95,702 

 483,782 
 483,782 

The fair values disclosed in the above table have been determined based on the following methodologies:

(i)

Cash and cash equivalents, trade and other receivables and trade and other payables are short-term investments in nature whose carrying amounts 
are equivalent to their fair values. Trade and other payables excludes amounts provided for annual leave, which is outside the scope of AASB 139.

Note 21

Reserves

a.

Foreign Currency Translation Reserve

The foreign currency translation reserve records exchange differences arising on translation of a foreign controlled subsidiary.

Balance at beginning of the year
Foreign currency movements during the year
Realised on sale of subsidiaries
Movement in retained earnings

Total Reserves
Foreign currency translation reserve

Consolidated Group

2018
$

2017
$
(224,754)
-
224,754 
- 

-
- 
-
- 

Consolidated Group

2018

$

2017

$

- 

- 

- 

- 

36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

Note 22

Economic Dependency

All subsidiaries and controlled entities are dependent on the Parent Company, Gladiator Resources Limited.

Note 23

Company Details

The registered office of the company is:

Gladiator Resources Limited

Level 4,

91 William Street

Melbourne Vic 3000

The principal places of business are:

Gladiator Resources Limited

Level 4,

91 William Street

Melbourne Vic 3000

37

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 850
DRECTORS' DECLARATION

In accordance with a resolution of the directors of Gladiator Resources Limited, the directors of the company 
declare that:

1.

the financial statements and notes, as set out on pages 17 to 37, are in accordance with the Corporations Act 
2001 and:

(a)

(b)

comply with Australian Accounting Standards, which, as stated in accounting policy Note 1 to the 
financial statements, constitutes compliance with International Financial Reporting Standards; and

give a true and fair view of the financial position as at 30 June 2018 and of the performance for the year 
ended on that date of the consolidated group;

2.

3.

in the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts 
as and when they become due and payable; and

the directors have been given the declarations required by section 295A of the Corporations Act 2001 from 
the Chief Executive Officer and Chief Financial Officer.

Director

Dated this

Mr Andrew Draffin
27 September 2018

38

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S REPORT 
TO THE MEMBERS OF GLADIATOR RESOURCES LIMITED 

Report on the Financial Report 

Opinion 

We  have  audited  the  financial  report  of  Gladiator  Resources  Limited,  (the  Company  and  its  subsidiaries  (the  Group),  which 
comprises the consolidated statement of financial position as at 30 June 2018, 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: 

(i)  giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its financial performance for the year 

ended on that date; and 

(ii)  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(t) in the  financial report  which indicates that the ability of the  Company to continue  as a  going 
concern is dependent on its ability to raise capital when required. The events and conditions, including the loss for the period, 
indicate the existence of a material uncertainty that may cast significant doubt about the Company’s ability to continue as a going 
concern and therefore the Company may be unable to realise its assets and discharge its liabilities in the normal course of business 
at amounts stated in the financial report.  

Our opinion is not modified in respect of this matter. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S REPORT 
TO THE MEMBERS OF GLADIATOR RESOURCES LIMITED 

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. 

Key audit matter 

How our audit addressed the key audit matter 

1)  Carrying value of 

capitalised Exploration 
Expenditure 
Refer to Note 12 
($481,400) 

Capitalised 
Exploration 
Expenditure  of  $481,400 
relate to costs incurred in 
relation  to  the  various 
tenements.  

For  the 
financial  year 
ended  30  June  2018,  the 
Directors  have  assessed 
and  determined  that  no 
impairment is required. 

The auditor’s procedures included: 

• 

• 

obtaining  a  copy  of  the  Directors’  assessment  of  the  carrying  value  of  capitalised 
Exploration  Expenditure  and  reviewing  and  challenging  assertions  made  by  the 
Directors. 
discussing  with  Directors  the  existence  of  any  potential  impairment  indicators, 
including if: 

i. 

ii. 

iii. 

iv. 

v. 

vi. 

vii. 

the period for which the entity has the right to explore in the specific area 
has expired during the period or will expire in the near  future, and is not 
expected to be renewed; 
substantive  expenditure  on  further  exploration  for  and  evaluation  of 
mineral resources in the specific area is neither budgeted nor planned; 
exploration for and evaluation of mineral resources in the specific area have 
not  led  to  the  discovery  of  commercially  viable  quantities  of  mineral 
resources and the entity has  decided to discontinue such  activities in the 
specific area; 
sufficient data exist to indicate that, although a development in the specific 
area  is  likely  to  proceed,  the  carrying  amount  of  the  exploration  and 
evaluation  asset  is  unlikely  to  be  recovered  in  full  from  successful 
development or by sale; 
significant  changes with an adverse  effect on the entity have taken place 
during the period, or will take place in the near future, in the technological, 
market, economic or legal environment in which the entity operates or in 
the market to which an asset is dedicated; 
the carrying amount of the net assets of the entity is more than its market 
capitalisation; and 
evidence is available of obsolescence or physical damage of an asset. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S REPORT 
TO THE MEMBERS OF GLADIATOR RESOURCES LIMITED 

Other Information 

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 2018, 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. 

Other Matter 

The financial report of the Group for the year ended 30 June 2017 was audited by another auditor who expressed an unmodified 
opinion on that financial report on 28 September 2017. 

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 has no realistic alternative but to do so. 

The Directors are responsible for overseeing the Company’s financial reporting process. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S REPORT  
TO THE MEMBERS OF GLADIATOR RESOURCES LIMITED 

Auditor’s Responsibility 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 the 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.  

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards 
Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our auditor’s report. 

Report on the Remuneration Report 

Opinion on the Remuneration Report 

We have audited the Remuneration Report included in included in the directors’ report for the year ended 30 June 2018. 

In our opinion, the Remuneration Report of Gladiator Resources Limited, for the year ended 30 June 2018, complies with section 
300A of the Corporations Act 2001.  

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 is to express an opinion on the Remuneration Report, based on 
our audit conducted in accordance with Australian Auditing Standards. 

MORROWS AUDIT PTY LTD 

L.S. WONG 
Director 
Melbourne: 

27 September 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES

The following information is current as at 26 September 2018:

1.

a.

b.

c.

Shareholding

Distribution of Shareholders
Category (size of holding)

1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over

No. of Holders

No. of Ordinary 
Shares

 36 
 32 
 87 
 234 
 459 
 848 

 4,005 
 105,630 
 798,333 
 13,342,121 
 852,584,082 
 866,834,171 

The number of shareholdings held in less than marketable parcels is 407. (2017: 314)

The names of the substantial shareholders listed in the holding company’s register are:

Shareholder

DW Accounting & Advisory Pty Ltd
Wealthystar Group Limited
Tomik Nominees Pty Ltd

d.

Voting Rights

Number

No. of Ordinary 
Fully Paid Shares

% Held of Issued 
Ordinary Capital

 59,980,146 
 59,750,279 
 52,292,991 

6.92%
6.89%
6.03%

Articles 15 on the Constitution specify that on a show of hands, every member present in person, by attorney
or by proxy shall have:

–
–

For every fully paid share held by him one vote; and
For every share which is not fully paid a fraction of the vote equal to the amount paid up on the share 
over the nominal value of the shares.

e. 

20 Largest Shareholders — Ordinary Shares
Name

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

DW Accounting & Advisory Pty Ltd
Wealthystar Group Limited
Tomik Nominees Pty Ltd
Mr Marat Basyrov
Cuthbert Productions Inc
Joyce Asset Corp
First Investment Partners
Kassets Pty Ltd
Mr Stephen Robert Wylie
Citicorp Nominees Pty Limited
BHP Paribas Nominees Pty Ltd
Whiteheads Timber Nominees
Mr Alfred Gerard Galea
Mr Bradley James Thompson
Bond Street Custodians Limited
Kollins Pty Ltd
HSBC Custody Nominees
Mr Raymond Cheng
Mr Stephen Donald Telford
Tim Adams & Associates Pty Ltd

Number of Ordinary 
Fully Paid Shares 
Held
 59,980,146 
 59,750,279 
 52,292,991 
 30,000,000 
 23,251,927 
 23,251,927 
 20,000,000 
 19,928,000 
 18,120,000 
 15,964,187 
 14,544,523 
 10,000,000 
 10,000,000 
 10,000,000 
 10,000,000 
 10,000,000 
 9,603,409 
 9,350,000 
 8,453,270 
 7,730,000 
 422,220,659 

% Held
of Issued
Ordinary Capital

6.92%
6.89%
6.03%
3.46%
2.68%
2.68%
2.31%
2.30%
2.09%
1.84%
1.68%
1.15%
1.15%
1.15%
1.15%
1.15%
1.11%
1.08%
0.98%
0.89%
48.69%

f.

Options on issue

There were no listed options on issue at the date of this report.

43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GLADIATOR RESOURCES LIMITED AND CONTROLLED ENTITIES
ABN: 58 101 026 859
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES

2.

3.

4.

5.

The name of the company secretary is Andrew John Draffin.

The address of the principal registered office in Australia is Level 4, 91 William Street, Melbourne Vic 3000. 
Telephone (03) 8611 5333.

Registers of securities are held at the following addresses
Security Transfer Australia
770 Canning Highway
Applecross WA 615

Stock Exchange Listing
Quotation has been granted for all the ordinary shares of the company on all Member Exchanges of the
Australian Securities Exchange Limited.

6.

Other Disclosures

44