Materials
for an energy
efficient future
ACn 118 463 004
2016 ANNUAL REPORT
Contents
Highlights of 2016
Chairman’s Letter
Review of Operations
Annual Financial Report
Directors’ Report
Auditor’s independence declaration
Independent auditor’s report
Director’s 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
1 General information
2 Significant accounting policies
3 Critical accounting estimates and judgments
4 Segmented information
5 Revenue
6 Expenditure
7 Income tax expense
8 Cash and equivalents
9 Trade and receivables
10 Other assets
11 Property plant and equipment
12 Capitalised exploration and evaluation expenditure
13 Trade and other payables
14 Other liabilities
15 Provisions
16 Issued capital
17 Reserves
18 Dividends
19 Accumulated loss
20 Loss per share
21 Commitments for expenditure
22 Subsidiaries
23 Notes to the statement of cash flows
24 Share based payments
25 Financial instruments
26 Key management personnel compensation
27 Key management personnel equity holdings
28 Transactions with related parties
29 Parent company information
30 Remuneration of auditors
31 Subsequent events
Additional stock exchange information
Greenland Minerals and enerGy liMiTed – 2016 AnnUAl RePORT
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Corporate Directory
direcTors
Anthony Ho
non-executive Chairman
John Mair
Managing Director
Simon Cato
non-executive Director
Wenting Chen
non-executive Director
CHIeF FINANCIAL
OFFICeR/COMPANy SeCRetARy
Miles Guy
ReGISteReD AND HeAD OFFICe
Unit 6, 100 Railway Road
Subiaco WA 6008
Greenland
nuugaarmiunt B-847
3921 narsaq, Greenland
HoMe sTock excHanGe
Australian Securities exchange, Perth
Code: GGG
GGGOB
audiTors
Deloitte Touche Tohmatsu
sHare reGisTry
Advanced Share Registry
110 Stirling Highway
nedlands WA 6009
COMPANy WeBSIte
www.ggg.gl
ABN
85 118 463 004
HiGHliGHTs
OF 2016
Greenland Minerals and energy’s transition from the exploration
and assessment phase, to development phase, continued to
gain momentum with important progress made on both project
permitting and the commercial development strategy.
Enabling legislation passed by both Greenlandic and Danish
parliaments to manage the production and export of uranium in
Greenland, in accordance with international conventions and
best-practice.
Leading rare earth company Shenghe Resources Holding commenced
strategic cooperation with GMEL, with the aim of jointly developing the
Kvanefjeld Project. Shenghe moved to become the Company’s largest
shareholder with the acquisition of 12.5% stake.
Kvanefjeld project metrics further improved in Feasibility Study Update
following the strong performance of pilot plant operations conducted in
late 2015.
Significant progress made on the processing of the mining license
application for the Kvanefjeld Project. Major reviews by the Greenland
Government, their advisors and expert consultants were completed in
2016. GMEL is working to update studies where recommended and is
looking to establish a schedule for the public hearing period.
World nuclear Association (WnA) Director General Agneta Rising
visited Greenland to participate in Employees’ Union Annual Meeting.
Greenland Minerals and enerGy liMiTed – 2016 AnnUAl RePORT
1
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt Chairman's letter
Dear Fellow Shareholder,
The 2016 year was a transformative year, which has our company well placed to progress
the Kvanefjeld Project into development. Following on from the completion and lodgement
of a mining license application for Kvanefjeld in late 2015, we entered 2016 with the
aim of advancing through the permitting process in parallel to building the commercial
development strategy. Major progress was made on both fronts, which consolidate
Kvanefjeld’s position as one of the most advanced, and important rare earth and uranium
projects globally.
The commencement of a strategic relationship with Shenghe Resources Holding Co Ltd.
is one of the most important developments in the Company’s history, and the evolution of
the Kvanefjeld Project. Shenghe is one of the most significant participants in the global rare
earth industry, with proficiency across the entire value chain with an extensive international
customer base. It was clear in our early discussions that Shenghe’s ambition to grow their
international customer base would make them an obvious and ideal strategic development
partner for Kvanefjeld.
Your directors were pleased to see that shareholders wholeheartedly supported
Shenghe’s acquisition of a 12.5% interest in our Company in November 2016. We have
now commenced joint work programs that will further enhance Kvanefjeld technically
and economically. This will ensure that output of rare earth intermediate products from
Greenland will meet with Shenghe’s downstream processing requirements.
Material progress was made during the year on processing the mining licence application,
which commenced following lodgement in December 2015. Reviews by the Greenland
Government and their advisory groups progressed significantly through the year. Following
detailed and constructive reviews of the environmental and social impact assessments,
work is currently underway to supplement select datasets before reports are finalised and
lodged for public consultation.
Kvanefjeld remains Greenland’s highest profile mining project and its successful
development is therefore important in the broader establishment of Greenland’s minerals
industry. The development of successful mining operations is fundamental to the
restructuring and diversification of the Greenland economy as Greenland moves toward
greater economic and political independence. Both Greenland and Denmark, which
manages Greenland’s foreign policy, have continued to provide the appropriate legal and
administrative frame work to manage the production and export of uranium in accordance
with international best-practice.
The outlook for both the rare earth and uranium markets continues to improve after a multi-
year period of suppressed pricing. Ongoing reforms to the rare earth industry in China have
seen restrictions to primary supply that presents a great opportunity for new market entrants.
In late 2016, the two largest global uranium producers announced production cutbacks
to deal with the oversupply in the uranium market. Uranium long-term and spot prices
have since come off their lows, and have risen over 25% in recent months. These market
conditions create an optimal window to bring Kvanefjeld into production in coming years.
In summary, 2016 was a very important year that positions us with an excellent foundation
and clear strategy to progress Kvanefjeld through the permitting steps and into project
development.
On behalf of your board, I thank our management team and staff in Australia and Greenland
for their dedication and focus on the Kvanefjeld project. I also thank shareholders for their
continued steadfast support of the Company.
Yours sincerely
Anthony Ho
non-executive Chairman
2
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt Kvanefjeld’s location offers
one of the Most accessible and
favourable settings for Mine
developMent in greenland.
3
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt Review of Operations
2016 proved to be a transformative year for Greenland Minerals and Energy
Limited, and the Company’s 100% owned Kvanefjeld rare earth – uranium project.
At the commencement of the year GMEL set out to progress the permitting for the
Kvanefjeld Project, and to advance the commercial development strategy.
Project Developments:
In early April, 2016, GMEL completed an
update to its Kvanefjeld Project Feasibility
Study, released May 25, 2015. The update was
conducted to integrate the outcomes of pilot
plant operations that were undertaken in late
2015 with the Feasibility Study. The pilot plant
operations had been performed in collaboration
with the EURARE program.
The study update utilised lower pricing
assumptions and a higher discount rate than
those used previously (2015), in order to more
accurately reflect prevailing economic conditions.
The study update incorporated several
modifications to the Kvanefjeld Project which
significantly improved the financial outcomes.
■■ Pilot plant operations demonstrated
higher recoveries than had previously
been considered, and greater productions
levels as a result.
■■ Both capital and operating costs
were reduced, and key economic
metrics improved despite lower pricing
assumptions and an increased
discount rate.
The study update reiterates the clear potential to
develop Kvanefjeld as a stable, long-life, low cost
producer of critical rare earths and uranium.
Material progress was made on both fronts,
with major reviews of the environmental and
Social Impact Assessments by the Government
of Greenland and their expert consultant
groups, and the commencement of a strategic
relationship with leading rare earth company
Shenghe Resources Holding Co limited
(Shenghe). The feasibility parameters for the
Kvanefjeld project were also updated following
pilot plant operations conducted in the latter half
of 2015.
Shenghe brings top-tier downstream processing
technology, an international customer network
to the Kvanefjeld Project, and the opportunity
to jointly establish a specialty metals business
that will be a dominant force in the sector for
number of decades. Shenghe is part-owned by a
leading Chinese technical institute and together,
they bring extensive technical capacity to the
project. Through 2017 GMEL and Shenghe will
be conducting joint work programs to enhance
the Kvanefjeld Project and ensure that it is
best-structured to integrate with down-stream
processing.
Key political developments took place in the first
half of 2016 that relate to uranium production and
export. The Danish Parliament passed legislation
to create the legal framework for uranium exports
from Greenland, and the Greenland Parliament
adopted laws in relation to non-proliferation
commitments. This concluded a comprehensive
program by the Governments of Greenland and
Denmark to establish the regulatory framework
required to manage uranium production and
export from Greenland.
Other notable events of 2016 included a visit
to Greenland by the World nuclear Association
(WnA) Director General, Agenta Rising,
to participate in Greenland’s Employees
Association (SIK) annual meeting; a forum where
mineral potential and future mining opportunities
were given strong attention.
With many key developments, the significance
and profile of Kvanefjeld continues to grow, and
resulted in press coverage in mainstream media
such as the Guardian and the Washington Post.
4
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt Support Infrastructure
and Power Provision
In Q1, 2016 GMel signed of a letter of
Intent (LoI) with a European multi-national
conglomerate (the provider), that specialises in
energy provision, to develop a power concept
for the Kvanefjeld project, based on renewable
energy (hydropower).
The power solution is looking into the potential
to link in to the existing public network, providing
broader benefits for South Greenland. The set-up
for the power solution is considering a Private
Public Partnership (PPP) model, in which GMEL
would be an end-user. The provider will map
out the entire concept and aim to bring in a
partner for the main EPC contractor, civil work
and financing.
The agreement comes after an ongoing dialogue
driven by the provider with the Government of
Greenland and the Company.
Importantly, utilising hydropower to produce
raw materials that are critical to clean energy
generation and new energy efficient technologies
is an optimal outcome for the Kvanefjeld project,
and will reduce the carbon footprint of the project
and be advantageous to end product branding.
a power concept for the Kvanefjeld project,
based on renewable energy (hydropower).
5
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt Review of Operations (continued)
Kvanefjeld Mining License
Application - Processing Update
In December, 2015, GMel submitted an
exploitation (mining) license application for the
Kvanefjeld project to the Greenland Government
after years of baseline surveys and scientific
analysis. In addition other technical reference
documents have also been provided to the
Greenland Government at their specific request.
The application included the Feasibility Study
(inclusive of the Maritime Safety Study), and
Environmental and Social Impact Assessments
(eIA, and SIA).
Through the course of 2016, GMel has also
completed a number of additional studies and
calculations as requested by the Greenland
Government, to bolster specific areas. These
relate to technical aspects of the EIA.
The eIA is a very substantive document,
drawing on many years of extensive baseline
studies, that summarises the existing natural
environment and analysing the changes the
mining operation will create. There are a
number of major contributing studies which
are referenced to the eIA document.
These contributing studies have been performed
by world-leading independent consultants to
ensure the scientific impact is well understood.
These studies are referenced by the eIA and
each consists of an extensive scientific and
engineering evaluation. The independent
consultants who contributed major studies to the
eIA include:
■■ Pacific Environment – Air Quality Study
■■ Orbicon – Hydrology
■■ Arcadis – Radiation
■■ Danish Hydraulic Institute – Water
■■ SGS laboratories – Tailings and waste
rock stability
■■ AMeC Foster Wheeler – Tailings Dam
and water recycling design
the environmental Impact
Assessment Review Process
The Greenland Government has been rigorous
in its review of the eIA by engaging world leading
environmental consultants to review the eIA.
These consultants are based in Denmark and
Canada. This approach is aimed to provide
confidence to stakeholders that all environmental
impacts associated with the project can be
effectively managed.
■■ Greenland natural Institute
■■ The Danish Centre for environment and
energy based at Aarhus University in
Denmark.
■■ Robertson GeoConsultants from (Canada)
■■ Canadian nuclear Safety Commission
2016 eIA Progress
Significant progress was achieved during
2016 in the reviews of the eIA. extensive
consultation has been undertaken on the critical
eIA documents with feedback and comments
received from the Greenland authorities as well
as from their independent consultants leading
to the validation of the Company’s Project
parameters on most key aspects.
Comments and recommendations received
from Greenland in late December 2016 leave
only a few matters to be completed prior to
the Company being able to submit an updated
final version of the EIA which would be suitable
for the public hearing phase of the mining
licence application. Since receiving the review
material late in 2016, the Company has had
the opportunity to meet with both Greenland’s
environmental Agency for Mineral Resource
Activities (eAMRA), along with the Danish Centre
for Environment, and is now working to confirm
modifications or further data that is required for
the public hearing phase.
The Company has a long-established, cordial
and professional relationship with the relevant
Greenland authorities, which has led to
productive exchanges of technical information
and a confidence that the exhaustive assessment
process will have positive results for the
Kvanefjeld Project.
6
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt health and safety of worKers
and the general populace is of
paraMount iMportance.
Social Impact Assessment
The Company made considerable progress on
the SIA during 2016 and is working to update
the document for resubmission to the Greenland
Government following the reviews conducted
through the year. A regular dialogue between
GMEL and the government personnel is working
to ensure that the SIA meets the needs of the
Company and addresses the requirements of
the Government.
Over 90% of the comments and suggestions
have been addressed, and work is ongoing
to address the final outstanding matters. In
particular, the matters likely to be of most
importance to the Greenland community have
been revised to ensure that this information
is arranged in the optimal order and format.
Particular attention has been paid to the
operational health and safety of workers and the
general populace from the perceived impacts of
the project.
Finalising information requested as part of the
Terms of Reference (approved in 2015, following
a public hearing phase) has been ongoing to
ensure all matters raised have been addressed.
Public Consultation Phase
Once the formal review of the eIA and SIA have
been completed and accepted by the Greenland
Government, a public consultation phase will be
initiated where public feedback will be sought with
responses then incorporated into a ‘whitepaper’.
Following this, an Impact Benefit Agreement will
be entered into which formalises the commitments
made in the SIA. This then feeds into the
Exploitation (Mining) Licence documentation.
GMEL views the progress made to date as
extremely encouraging. With major reviews of
key EIA components by external consultants
conducted in 2016, the Company is now
working toward updating the studies where
necessary, and setting a schedule for the public
consultation phase. The cooperative approach
of the Greenland Government aims to efficiently
manage the overall permitting process, whilst
ensuring that the application meets all necessary
requirements and expectations.
7
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt Review of Operations (continued)
Danish Centre for the environment
Publish Important Uranium Report
Whilst uranium is not high grade at Kvanefjeld,
and is only a by-product for planned operations
at Kvanefjeld, it has significance with
respect to regulation and project permitting.
Importantly, an independent report published
in January 2017 by the Danish Centre for the
Environment (DCE) – part of Aarhus University
in Denmark – has concluded that experience
in Canada, Australia and the USA shows that it
is possible to operate modern uranium mines
without major environmental issues. This is a
significant positive indicator for the Kvanefjeld
Project in Greenland where the DCe has been
providing professional advice to the Greenland
Government on aspects of the EIA process.
The report has been produced to be a useful
guide for the general public, politicians,
authorities, and other stakeholders that are
seeking detailed information or improving their
understanding of all topical areas related to
uranium production activities. It serves as an
important factual reference point. The report
should be seen as a significant positive indicator
for the Kvanefjeld Project.
Key report by the dce serves
as a positive reference on
uraniuM extraction.
8
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt Shenghe’s Acquisition of a 12.5%
Interest in GMeL
On September 23rd, GMEL announced that
it had entered into a Subscription Agreement
(SA) with leading rare earth company Shenghe
Resources Holding ltd, and its 99.9999%
subsidiary le Shan Shenghe Rare earth Co., ltd
(leshan Shenghe). leshan Shenghe is focussed
on rare earth downstream processing.
The SA provided for Shenghe to acquire
125 million shares in GMEL, which represents
a 12.5% interest. The fundamental objective of
both parties is to develop the Kvanefjeld Project
as a cornerstone to new rare earth supply
networks. Shenghe’s leading technical expertise,
processing capacity, and strong international
customer base make Shenghe an ideal strategic
partner for the Project.
Shenghe’s major shareholder is the Institute of
Multipurpose Utilization of Mineral Resources
(IMUMR); a leading Chinese technical institute
with strong rare earth expertise. Together,
Shenghe and IMUMR bring leading rare earth
processing technology to the Kvanefjeld Project,
which should see further enhancements and
improvements to the cost structure.
During November, Australia’s Foreign Investment
Review Board (FIRB) approved the issue of 125
million shares to Shenghe. On november 29th,
a General Meeting was held to seek shareholder
approval. Shareholders voted overwhelmingly in
favour (92.6%) of the SA and the issue of shares
to Shenghe.
Following approvals and the receipt of $4.625
million (AUD), 125 million shares were issued
to Shenghe, who become the largest individual
shareholder in GMel.
The rare earth sector, by virtue of the extended
industrial chain, necessitates that the mining
end requires integration with strong downstream
processing proficiency to create a strong
business. This emphasizes the importance of
aligning the Kvanefjeld Project with a strong
global industrial partner. Shenghe’s participation
provides a means to establish a complete value
chain from mine to high-purity end-products.
Shenghe’s involvement comes after a multi-year
effort by GMel to identify, engage and secure an
optimal strategic partner.
In early 2017, both parties will jointly commence
technical work programs to further improve
the cost-structure of the Kvanefjeld Project,
ensure the Project is optimised with respect to
downstream rare earth processing, and identify
further value add opportunities, including the
recovery of additional products.
shenghe’s leading
technical expertise,
processing capacity, and
strong international
custoMer base MaKe
shenghe an ideal
strategic partner for
the project.
9
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt Review of Operations (continued)
About Shenghe Resources Holding
Shenghe Resources Holding Co. ltd (SSe
600392), (Shenghe) is a public company
exclusively focused on mining and processing
rare earth ores, and producing high purity rare
earth oxides, metals and alloys along with a
range of rare earth products. Shenghe is listed
on Shanghai Stock exchange (since 2012)
and, as at 20 September, 2016 had 941M
shares on issue and a market capitalization of
approximately RMB14.3 billion or AUD $3 billion.
Shenghe has three major shareholders. The
Institute of Multipurpose Utilization of Mineral
Resources (IMUMR), a state owned scientific
research institute specialising in mineral
resources, holds just over 20%, Mr Quangen
Wang, former engineer of IMUMR holds ~10%
and the Sichuan Giastar Enterprise Group, a
private company involved in natural resources
holds ~8%.
Shenghe is headquartered in Chengdu, Sichuan
Province and is a single industry company with
mining and processing activities in a number
of Chinese centres, and has commenced the
strategy of extending business outside China
to increase the focus on international markets.
Shenghe is involved at all levels of the rare earth
industry, from mining through processing to the
production of end products.
the Shenghe Group;
■■ controls domestic sources of rare
earth ores and concentrates
■■ controls significant rare earth
separation capacity in China
■■ produces rare earth metals and alloys
to the highest purities
■■ produces “end use” rare earth
products – polishing powders,
catalysts, molecular sieves
■■ has an established international
customer base for its products
Significantly, Shenghe also holds Chinese
production quotas for the mining and separation/
refining of rare earths.
International Strategy
Shenghe has also commenced the path of
international orientation since 2013.
■■ In 2013 Shenghe established Sheng Kang
ning Mining Investment (SKn) as the
platform for overseas investments in rare
earths and rare and precious metals.
■■ In 2015 Shenghe established Shenghe
Resources (Singapore) Pte.Ltd as the
platform for trade and investment.
■■ In 2016 Shenghe announced the
agreement with a Japanese company to
acquire 100% equity in a rare earth metal
and separation plant in Vietnam.
Shenghe/SKN has been actively involved in
an extensive international search for suitable
opportunities to secure supplies of rare earths
outside of China, to support its international
growth strategy. This has involved an
assessment of many of the world’s emerging rare
earth projects. Shenghe’s investment in GMEL
is its first investment at an equity level of an
overseas listed company since that international
search commenced.
For Shenghe, investment in the Kvanefjeld
Project is aimed at pursing access to rare earth
intermediate products outside of China which are
capable of supporting a range of downstream
rare earth businesses, facilitating long term
growth opportunities.
Appointment of New Non-executive
Director
In December 2016 Ms Wenting Chen, a
representative of Shenghe Resources Holding
Limited, was appointed to the board of GMEL
as a non-executive director. The appointment
follows the completion of Shenghe’s acquisition
of a 12.5% interest in GMel.
Ms Chen holds degrees in law, and economics
majoring in International Trade, from nanjing
University. She has additionally completed a
Master’s Degree in Business Administration, and
the Bar examination in China.
Ms Chen commenced her career at the Bank
of nanjing, before joining the east China
Exploration Bureau (ECE) in early 2007, working
in the investment department specialising in
overseas mining project investments. She
10
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt has considerable international commercial
experience, and has been directly involved in
several acquisitions in Australia and an Initial
Public Offering on the Alternative Investment
Market (AIM) of the london Stock exchange.
Prior to leaving eCe, Ms Chen was General
Manager Assistant of ECE’s overseas subsidiary.
Ms Chen joined Shenghe in early 2014 to lead
the overseas investment department. She
has been actively involved in the dialogue
between Shenghe and GMel since late 2015.
Through this period, she has developed a strong
familiarity with GMEL’s activities and operations.
Additional events
WNA Director General Visits Greenland
In late June, Greenland’s Employees Association
(SIK) held their annual meeting, where mineral
potential and future mining opportunities were
given strong attention. At the invitation of the SIK,
the World Nuclear Association’s (WNA) Director
General, Agneta Rising, attended and presented
at the meeting, in addition to conducting
interviews on radio and television, and meeting
with a number of senior government officials.
Such initiatives provide an excellent opportunity
for Greenland stakeholder groups to learn more
about facts associated with uranium mining
and the broader nuclear industry, as well as to
establish networks that can assist in facilitating
access to further information and knowledge.
Kvanefjeld is a greenlandic project
that brings together a cross section of
staKeholders and international participants.
Greenland Minerals and enerGy liMiTed – 2016 AnnUAl RePORT
11
Review of Operations (continued)
Additional events (continued)
Rare Earth Industry Updates
Greenland Minerals and energy
Participates in Arctic Circle Forum
The Arctic Circle Forum is a multi-disciplinary
gathering that aims to strengthen the
international focus on the future of the Arctic, and
addresses a cross section of arctic issues. The
Arctic Circle Greenland Forum was held over
May 17th to 19th in nuuk, Greenland.
At the invitation of the Premier of Greenland
and the President of Iceland, Dr John Mair,
GMEL’s Managing Director participated as both
a presenter and panellist in the session that
addressed Natural Resource Development in
the Arctic.
In recent years, attention on natural resources
in the broader Arctic region has markedly
increased. Greenland, in particular, has placed
a major focus on moving toward a greater
emphasis on natural resource development to
diversify, grow, and strengthen its economy.
GMEL’s Kvanefjeld Project is amongst the
higher profile mineral resource projects in the
Arctic region.
Developments in China remain the key to
understanding the continuing evolution of the
rare earth market.
On October 18th, 2016 China’s Ministry of
Industry and Information Technology released its
Rare Earth Industry Development Plan (RE Plan)
for the period 2016 to 2020. The RE Plan sets
out a number of targets to be achieved by the
rare earth industry by 2020. The more significant
of these targets include limits on mine production
(>140,000 tpa), reduction in separation plant
capacity (>33%) and greater compliance with
increasingly stringent environmental regulations
(90% of operations in compliance).
Significantly, the RE Plan also has a focus on
the development of primary sources of rare earth
metals outside of China.
Then on November 19th, 2016 China’s Ministry
of land and Resources released its national
Mineral Resources Plan for the period 2016 to
2020 (Resources Plan). The Resources Plan
was approved by the State Council on
november 2nd.
greenland, in particular, has placed a Major
focus on Moving toward a greater eMphasis
on natural resource developMent.
12
12
Greenland Minerals and enerGy liMiTed – 2015 AnnUAl RePORT
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt china’s rare earth plan will tighten
supply, creating a great opportunity
for new MarKet entrants.
The Resources Plan identifies for the first time
24 mineral and hydro-carbon resources that will
be the focus of heightened Government attention
for the purpose of protecting national economic
security and supporting the development of
strategic industries.
Rare earths are included in the suite of items
covered by the Resources Plan which confirms
that the government is taking further control over
those industries it considers to be of strategic
significance to ensure that appropriate resources
are allocated to secure long term supplies.
Security of supply is a key factor for the rare
earth industry.
As noted above, Shenghe’s investment in the
Company was finalised in December 2016 and
as far as the Company is aware this is the first
time that a major Chinese downstream processor
has taken steps to address the issue of the
long term security of supply of raw materials by
investing in resources outside of China.
Domestic China prices for most rare earths
remained relatively stable for the quarter, the
exception being lanthanum. The RMB lanthanum
oxide price was up by approximately 12.5% in
the 3 months to December 31st, 2016. From an
USD perspective all prices have also edged up in
line with the appreciation of the USD.
Uranium Industry Developments
There are encouraging signs that the uranium
market has passed its weakest point with spot
prices rising from historical lows of US$18/lb
U3O8 in December 2016, to US$23/ lb U3O8 in
January 2017.
Reactor re-starts are still delayed in Japan where
only two of the country’s 42 operable nuclear
power plants are in commercial operation, but
worldwide 10 new nuclear plants were brought
into production during 2016 and another 60
plants are under construction.
The uranium market still suffers from near
term oversupply but the two largest producers,
Kazatomprom (Kazakhstan) and Cameco
(Canada) have announced production cutbacks
which, together with changes expected in other
sectors of the fuel cycle will work to bring supply
and demand back into balance in the next few
years. The election of President Trump may see
renewed enthusiasm for nuclear power in the
USA which will boost confidence in the sector.
Denmark and Greenland continue work to
implement the uranium export controls to
apply to Greenland uranium in conformity with
legislation adopted in both countries during 2016.
13
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt Table of Identified Mineral Resources
Statement of Identified Mineral Resources, Kvanefjeld Multi-Element Project (Independently Prepared
by SRK Consulting)
Multi-Element Resources Classification, Tonnage and Grade
Contained Metal
M
tonnes Treo2 u3o8
ppm
ppm
Mt
lreo Hreo reo
ppm
ppm
ppm
y2o3
ppm
Zn
ppm
Treo Hreo y2o3
Mt
Mt
Mt
u3o8
M lbs
Zn
Mt
303 10,700
9,800
253
8,800
205
9,600
248
341 11,400
318 10,900
9,700
256
310 10,700
363 11,800
345 11,300
306 10,800
346 11,400
379 12,000
368 11,700
353 11,800
371 11,900
403 12,400
394 12,200
392 12,500
398 12,300
0.63
9,700
0.52 10,200
0.43 10,500
0.36 10,700
0.28 11,000
300 10,200
310 10,300
330 10,500
358 10,900
392 11,400
432 11,100
411 10,200
365
9,200
400 10,000
454 11,800
416 11,300
339 10,000
409 11,200
474 12,200
437 11,700
356 11,100
440 11,800
493 12,500
465 12,200
391 12,200
471 12,300
518 12,900
505 12,700
424 12,900
506 12,800
398 10,100
399 10,600
407 10,900
414 11,100
422 11,400
396 10,600
400 10,700
410 10,900
433 11,300
471 11,900
978
899
793
881
1,048
970
804
955
1,105
1,027
869
1,034
1,153
1,095
955
1,107
1,219
1,191
1,037
1,195
895
932
961
983
1,004
971
989
1,026
1,087
1,184
2,370
2,290
2,180
2,270
2,460
2,510
2,500
2,490
2,480
2,520
2,650
2,520
2,500
2,540
2,620
2,530
2,550
2,580
2,650
2,570
2,602
2,802
2,932
3,023
3,080
2,768
2,806
2,902
3,008
3,043
1.72
3.42
2.22
7.34
1.43
2.11
0.94
4.46
1.24
1.72
0.41
3.37
1.07
1.34
0.20
2.60
0.76
0.87
0.09
1.71
2.67
2.15
1.75
1.44
1.14
1.11
1.03
0.84
0.58
0.31
0.06
0.13
0.08
0.27
0.05
0.07
0.03
0.15
0.04
0.06
0.01
0.11
0.04
0.05
0.01
0.09
0.03
0.03
0.00
0.06
0.10
0.07
0.06
0.05
0.04
0.04
0.04
0.03
0.02
0.01
0.14
95.21
0.28 171.97
0.18 100.45
0.59 368.02
0.12
83.19
0.17 120.44
0.07
48.55
0.35 251.83
0.10
74.56
0.14 101.92
0.03
22.91
0.27 199.18
0.09
65.39
0.11
81.52
0.01
11.96
0.21 158.77
0.07
47.59
0.07
54.30
0.01
5.51
0.15 107.45
0.22
0.17
0.14
0.12
0.09
0.09
0.09
0.07
0.05
0.03
162
141
123
105
85
63.00
60.00
51.00
37.00
21.00
0.34
0.71
0.48
1.53
0.27
0.43
0.22
0.92
0.23
0.34
0.09
0.66
0.20
0.26
0.04
0.49
0.14
0.16
0.02
0.31
0.63
0.52
0.43
0.36
0.28
0.26
0.25
0.20
0.14
0.07
12,100
11,100
10,000
10,900
12,900
12,300
10,900
12,100
13,300
12,800
12,000
12,900
13,700
13,300
13,200
13,400
14,100
13,900
13,900
14,000
162.18
141.28
122.55
105.23
85.48
11,600
11,700
11,900
12,400
13,000
143
308
222
673
111
172
86
368
93
134
34
261
78
100
15
194
54
63
6
122
0.22
0.17
0.14
0.12
0.09
95
89
71
47
24
M
Cut-off
Classification
(U3O8 ppm)1
Kvanefjeld - February 2015
Measured
Indicated
Inferred
total
150
150
150
150
200
200
200
200
250
250
250
250
300
300
300
300
350
350
350
350
Measured
Indicated
Inferred
total
Measured
Indicated
Inferred
total
Measured
Indicated
Inferred
total
Measured
Indicated
Inferred
total
Sørensen - March 2012
0.10
0.07
0.06
0.05
0.04
2.67
2.15
1.75
1.44
1.14
Zone 3 - May 2012
Inferred
Inferred
Inferred
Inferred
Inferred
150
200
250
300
350
Project total
Cut-off
(U3O8 ppm)1
150
150
150
150
Classification
tonnes Treo2 u3o8
ppm
ppm
Mt
lreo Hreo reo
ppm
ppm
ppm
y2o3
ppm
Zn
ppm
Treo Hreo y2o3
Mt
Mt
Mt
u3o8
M lbs
Zn
Mt
Measured
Indicated
Inferred
143
308
559
12,100
11,100
10,700
Grand total
1010
11,000
303 10,700
432 11,100
253
264
266
9,800
9,400
9,700
411 10,200
384
9,800
399 10,100
978
899
867
893
2,370
2,290
2,463
1.72
3.42
6.00
2,397
11.14
0.06
0.13
0.22
0.40
0.14
95.21
0.28 171.97
0.49 325.66
0.90 592.84
0.34
0.71
1.38
2.42
1 There is greater coverage of assays for uranium than other elements owing to historic spectral assays. U3O8 has therefore been used to define the cutoff grades to
maximise the confidence in the resource calculations.
2 Total Rare Earth Oxide (TREO) refers to the rare earth elements in the lanthanide series plus yttrium.
note: Figures quoted may not sum due to rounding.
Competent Person Statement – Mineral Resources and Ore Reserves
The information in this report that relates to Mineral Resources is based on information compiled by Mr Robin Simpson, a Competent Person who is a Member of the
Australian Institute of Geoscientists. Mr Simpson is employed by SRK Consulting (UK) Ltd (“SRK”), and was engaged by Greenland Minerals and Energy Ltd on the basis of
SRK’s normal professional daily rates. SRK has no beneficial interest in the outcome of the technical assessment being capable of affecting its independence. Mr Simpson
has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Robin Simpson consents to the
inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in the statement that relates to the Ore Reserves Estimate is based on work completed or accepted by Mr Damien Krebs of Greenland Minerals and Energy
Ltd and Mr Scott McEwing of SRK Consulting (Australasia) Pty Ltd.
Damien Krebs is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the type of metallurgy and scale of project
under consideration, and to the activity he is undertaking, to qualify as Competent Persons in terms of The Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (JORC Code, 2012 edition). The Competent Persons consent to the inclusion of such information in this report in the form and context in
which it appears.
Scott McEwing is a Fellow and Chartered Professional of The Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as Competent Persons in terms of The Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition). The Competent Persons consent to the inclusion of such information in this report
in the form and context in which it appears.
The mineral resource estimate for the Kvanefjeld Project was updated and released in a Company Announcement on February 12th, 2015. The ore reserve estimate
was released in a Company Announcement on June 3rd, 2015. There have been no material changes to the resource estimate, or ore reserve since the release of
these announcements.
14
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
2016 ANNUAL FiNANciAL REPORT
for the year ended 31 December 2016
15
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
dIReCtORS’ RePORt
The directors of Greenland Minerals and Energy Limited (the Company) submit herewith the annual
financial report of Greenland Minerals and Energy Limited and its subsidiaries (the Consolidated Group)
for the financial year ended 31 December 2016, pursuant to the provisions of the Corporations Act
2001. The directors report the following:
Directors
The names of directors in office at any time during or since the end of the financial year are:
Anthony Ho, Non-Executive Chairman
John Mair, Managing Director
Simon Kenneth Cato, Non-Executive Director
Wenting Chen, Non-Executive Director – Appointed 9 December 2016
Michael Hutchinson, Non-Executive Director – Resigned 3 April 2016
Jeremy Sean Whybrow, Non-Executive Director – Resigned 29 March 2016
Chief Financial Officer/Company Secretary
The following person held the position of Company Secretary at the end of the financial year:
Miles Simon Guy – M.Com(PA), MIPA, FCIS, FGIA, MAICD is a qualified accountant with more than
20 years’ experience in both public practice and commercial environments, he is a registered tax agent
and has completed a graduate diploma in applied corporate governance.
Mr Guy is currently the Chief Financial Officer for Greenland Minerals and Energy Limited.
Principal Activities
The principal activity of the Consolidated Group during the financial year was mineral exploration and
project evaluation. Specifically the continued evaluation and permitting of the Kvanefjeld project, located
in Southern Greenland.
There were no significant changes in the nature of the Consolidated Group’s principal activities during
the financial year.
Operating Results
The net loss after providing for income tax amounted to $2,172,733 (2015: loss $4,091,615).
Review of operations
Refer to the Operations Report on pages 4 to 14.
Significant Changes in State of Affairs
Other than as reported in the Review of Operations, during the financial year, there were other no
significant changes in the state of affairs of the Consolidated Group.
The directors are not aware of any particular or significant environmental issues, which have been
raised in relation to the Consolidated Group’s operations during the period covered by this report.
Shares
During the year ended 31 December 2016, the following ordinary shares of Greenland Minerals and
Energy Limited were issued, as detailed in Note 16 to the financial report.
16
16
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
dIReCtORS’ RePORt
DIRECTORS’ REPORT
The directors of Greenland Minerals and Energy Limited (the Company) submit herewith the annual
financial report of Greenland Minerals and Energy Limited and its subsidiaries (the Consolidated Group)
for the financial year ended 31 December 2016, pursuant to the provisions of the Corporations Act
2001. The directors report the following:
The total number of ordinary shares on issue at 31 December 2016 was 999,124,293 (31 December
2015: 787,708,978).
The total number of shares issued during the current financial year was 211,415,315.
Directors
The names of directors in office at any time during or since the end of the financial year are:
There is no other class of shares issued by the Company and the Company has no un-issued shares,
other than those registered to options and performance rights which are disclosed in the next section.
Anthony Ho, Non-Executive Chairman
John Mair, Managing Director
Simon Kenneth Cato, Non-Executive Director
Wenting Chen, Non-Executive Director – Appointed 9 December 2016
Michael Hutchinson, Non-Executive Director – Resigned 3 April 2016
Jeremy Sean Whybrow, Non-Executive Director – Resigned 29 March 2016
Chief Financial Officer/Company Secretary
The following person held the position of Company Secretary at the end of the financial year:
Miles Simon Guy – M.Com(PA), MIPA, FCIS, FGIA, MAICD is a qualified accountant with more than
20 years’ experience in both public practice and commercial environments, he is a registered tax agent
and has completed a graduate diploma in applied corporate governance.
Mr Guy is currently the Chief Financial Officer for Greenland Minerals and Energy Limited.
The principal activity of the Consolidated Group during the financial year was mineral exploration and
project evaluation. Specifically the continued evaluation and permitting of the Kvanefjeld project, located
There were no significant changes in the nature of the Consolidated Group’s principal activities during
Principal Activities
in Southern Greenland.
the financial year.
Operating Results
The net loss after providing for income tax amounted to $2,172,733 (2015: loss $4,091,615).
Review of operations
Refer to the Operations Report on pages 4 to 14.
Significant Changes in State of Affairs
Other than as reported in the Review of Operations, during the financial year, there were other no
significant changes in the state of affairs of the Consolidated Group.
The directors are not aware of any particular or significant environmental issues, which have been
raised in relation to the Consolidated Group’s operations during the period covered by this report.
Shares
During the year ended 31 December 2016, the following ordinary shares of Greenland Minerals and
Energy Limited were issued, as detailed in Note 16 to the financial report.
16
Details of shares issued during the year or shares issued since the end of the financial year as a result
of exercised options are:
Issuing entity
Greenland Minerals
and energy limited
Greenland Minerals
and energy limited
Greenland Minerals
and energy limited
Greenland Minerals
and energy limited
Greenland Minerals
and energy limited (i)
Number of
shares
issued
Class of share
Amount paid for/
fair value of
shares
Amount unpaid
on shares
86,334,201 Ordinary shares
45,342 Ordinary shares
35,772 Ordinary shares
125,000,000 Ordinary shares
2,423,300 Ordinary shares
$0.03
$0.20
$0.08
$0.037
$0.08
-
-
-
-
-
(i) Shares were issued as a result of the exercise of $0.08 exercise price options on 7 March 2017.
Anti-dilution rights
Le Shan Shenghe Rare Earth Company Limited (Le Shan) has anti-dilution or top-up rights under the
subscription agreement entered into with the Company. The right is for le Shan to subscribe for top-up
shares so as to maintain its existing percentage interest where the Company issues additional shares
which increases the existing share capital by greater than 0.5%. The subscription price, under the anti-
dilution right, will be the same price as any additional shares issued under a capital raising (in the event
of a cash capital raising) or, in any other event (such as non-cash consideration), the volume weighted
average price of the shares calculated over the last 10 days on which sales of shares were recorded
before the day on which the additional shares were issued. The top-up right is subject to le Shan
maintaining at least a minimum share interest of 6.5% of shares in the Company and ceases to operate
where Le Shan’s Share interest or voting power exceeds 19.9%. In addition, the top-up right will cease
on the date the ASX considers that the strategic relationship between the Company and le Shan or
Shenghe Resources Holding Co. limited changes in such a way so as to effectively cease.
Options
During the year ended 31 December 2016 the number of options and performance rights of Greenland
Minerals and energy limited that were issued are detailed in note 24 to the financial report.
17
1717
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
DIReCtORS’ RePORt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Details of unissued shares or interests under option and employee rights at the date of this report are:
Number of
Shares
under
employee
rights
number of
shares
under
option
exercise
price of
option
Class of
shares
expiry date of
option/right
Issuing entity
Greenland Minerals and
Energy Limited
Greenland Minerals and
Energy Limited
Greenland Minerals and
Energy Limited
7,500,000
7,500,000
187,800,180
-
-
-
Ordinary
shares
Ordinary
shares
Ordinary
shares
$0.20 24 February 2018
$0.25 24 February 2018
$0.08 30 September 2018
The holders of these options do not have the right, by virtue of being holders, to participate in any share
issue or interest issue of the Consolidated Group or of any other body corporate.
Financial Position
The net assets of the Consolidated Group were $78,834,767 as at 31 December 2016 (2015:
$75,169,486).
Dividends
In respect of the financial year ended 31 December 2016, no dividends have been paid or declared
since the start of the financial year and the directors do not recommend the payment of a dividend in
respect of the financial year. No dividends were paid in the comparative period ended 31 December
2015.
environmental Regulations
The Consolidated Group operates within the resources sector and conducts its business activities with
respect for the environment while continuing to meet the expectations of shareholders, customers,
employees and suppliers. The Consolidated Group’s exploration activities are currently regulated by
significant environmental regulation under laws of Greenland and the Commonwealth and states and
territories of Australia. The Consolidated Group aims to ensure that the highest standard of
environmental care is achieved, and that it complies with all relevant environmental legislation.
Future Developments
The Consolidated Group will continue to evaluate the Kvanefjeld project and the development
alternatives for the project, as referred to elsewhere in this report, particularly in the Operations Report
on pages 4 to 14.
Subsequent events
On the 7 March 2017, the Company issued 2,423,300 ordinary shares through the exercise of an equal
number of GGGOB options and issued a further 3,200,000 ordinary shares and 3,200,000 listed
GGGOB options, in lieu of fees payable under corporate advisory and research mandates.
Other than the matters above, there have been no matters or circumstances occurring subsequent to
the financial period that has significantly affected, or may significantly affect, the operations of the
Consolidated Group, the results of those operations, or the state of affairs of the Consolidated Group in
future years.
18
18
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
DIReCtORS’ RePORt
Details of unissued shares or interests under option and employee rights at the date of this report are:
Issuing entity
Greenland Minerals and
Energy Limited
Greenland Minerals and
Energy Limited
Greenland Minerals and
Number of
Shares
under
employee
rights
number of
shares
under
option
7,500,000
7,500,000
Class of
shares
Ordinary
shares
Ordinary
shares
Ordinary
shares
-
-
-
exercise
price of
option
expiry date of
option/right
$0.20 24 February 2018
$0.25 24 February 2018
Energy Limited
187,800,180
$0.08 30 September 2018
The holders of these options do not have the right, by virtue of being holders, to participate in any share
issue or interest issue of the Consolidated Group or of any other body corporate.
The net assets of the Consolidated Group were $78,834,767 as at 31 December 2016 (2015:
Financial Position
$75,169,486).
Dividends
2015.
environmental Regulations
In respect of the financial year ended 31 December 2016, no dividends have been paid or declared
since the start of the financial year and the directors do not recommend the payment of a dividend in
respect of the financial year. No dividends were paid in the comparative period ended 31 December
The Consolidated Group operates within the resources sector and conducts its business activities with
respect for the environment while continuing to meet the expectations of shareholders, customers,
employees and suppliers. The Consolidated Group’s exploration activities are currently regulated by
significant environmental regulation under laws of Greenland and the Commonwealth and states and
territories of Australia. The Consolidated Group aims to ensure that the highest standard of
environmental care is achieved, and that it complies with all relevant environmental legislation.
The Consolidated Group will continue to evaluate the Kvanefjeld project and the development
alternatives for the project, as referred to elsewhere in this report, particularly in the Operations Report
Future Developments
on pages 4 to 14.
Subsequent events
On the 7 March 2017, the Company issued 2,423,300 ordinary shares through the exercise of an equal
number of GGGOB options and issued a further 3,200,000 ordinary shares and 3,200,000 listed
GGGOB options, in lieu of fees payable under corporate advisory and research mandates.
Other than the matters above, there have been no matters or circumstances occurring subsequent to
the financial period that has significantly affected, or may significantly affect, the operations of the
Consolidated Group, the results of those operations, or the state of affairs of the Consolidated Group in
future years.
18
DIReCtORS’ RePORt
Information on Directors
Anthony Ho (tony) - Non-Executive Chairman - Appointed 9 August 2007
Qualifications
B.Comm, CA, FAICD, FCIS, FGIA
experience
Mr Tony Ho is an experienced company director having held executive directorships and chief
financial officer roles with a number of publicly listed companies. Tony was executive director of
Arthur Yates & Co Limited, retiring from that position in April 2002. His corporate and governance
experience include being chief financial officer/finance director of M.S. McLeod Holdings Limited,
Galore Group Limited, the Edward H O'Brien group of companies and Volante Group Limited.
Tony was the past non-executive chairman of the Not for Profit company, St. George Community
Housing Limited (November 2002 to December 2009) where he was also a member of the Audit and
Remuneration Committees.
Prior to joining commerce, Mr Ho was a partner of Cox Johnston & Co, Chartered Accountants, which
has since merged with Ernst & Young.
Mr Ho holds a Bachelor of Commerce degree from the University of New South Wales and is a
member of the Institute of Chartered Accountants in Australia and New Zealand and a fellow of the
Institute of Chartered Secretaries, Governance Institute of Australia and the Australian Institute of
Company Directors.
Interest in shares & options
2,487,500 Ordinary Shares
337,500 Listed GGGOB options
Other board positions held
Non-executive director - Hastings Technology Metals Limited - March 2011 and chairman of the Audit
Committee
Non-executive Chairman – Bioxyne Limited – November 2012
Non-executive Chairman – Mooter Media Limited – November 2016
Board positions held in the last 3 years
Non-executive Chairman – Metal Bank Limited, October 2011 to August 2014
Non-executive director - Apollo Minerals Limited - July 2009 to March 2016
Non-executive Chairman – Esperance Minerals Limited – 12 October 2015 to March 2016
John Mair – Managing Director – Appointed 7 October 2011
Qualifications
PhD (Geol), MAus IMM
experience
John Mair is a minerals industry professional with international experience across technical, corporate
and managerial roles. John holds a PhD in economic geology from the University of Western
Australia, and was a post-doctoral research fellow at Mineral Deposit Research Unit, UBC,
Vancouver, working in close association with the US Geological Survey.
John has been a director of GMEL since 2011, and Managing Director since September 2014. John
has played a key role in the Company’s successful political interface with the Greenland and Danish
governments and stakeholder groups, as well as driving a number of significant funding initiatives,
and the technical direction of the Company’s activities in Greenland.
19
1919
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
DIReCtORS’ RePORt
Information on Directors
John Mair (cont’d)
John presents on the Company’s behalf in commercial, technical, and political forums internationally.
He is a Member of the Australian Institute for Mining and Metallurgy (AusIMM) and the Society for
Economic Geologists (SEG).
Interest in shares & options
7,989,062 Ordinary Shares
1,597,813 Listed GGGOB options
Other board positions held
Nil
Simon Cato – Non-Executive Director – Appointed 21 February 2006
Special responsibilities
Chairman of the Audit Committee
Qualifications
B.A. (USYD)
experience
Mr Simon Cato has had over 30 years capital markets experience in broking, regulatory roles and as
director of listed companies. He initially was employed by the ASX in Sydney and then in Perth.
From 1991 until 2006 Simon was an executive director and/or responsible executive of three
stockbroking firms and in those roles he has been involved in many aspects of broking including
management issues such as credit control and reporting to regulatory bodies in the securities
industry. As a broker Simon was also involved in the underwriting of a number of IPO’s and has been
through the process of IPO listing in the dual role of broker and director. Currently Simon holds a
number of non-executive roles with listed companies in Australia.
Interest in shares & options
6,117,808 Ordinary shares
481,780 listed GGGOB options
Other board positions held
Non-executive Chairman - Advanced Share Registry Limited - August 2007.
Non-executive director – Bentley Capital Limited – January 2016
Non-executive director – Keybridge Capital limited – July 2016
Positions held in the last 3 years
Queste Communications Limited – February 2008 to 3 April 2014
Transaction Solutions International Limited – February 2010 to 30 September 2014
Wenting Chen – Non-executive Director – Appointed 9 December 2016
Special responsibilities
Nil
Qualifications
BA.Law, BA.Econ, MBA
20
20
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
John presents on the Company’s behalf in commercial, technical, and political forums internationally.
He is a Member of the Australian Institute for Mining and Metallurgy (AusIMM) and the Society for
DIReCtORS’ RePORt
Information on Directors
John Mair (cont’d)
Economic Geologists (SEG).
Interest in shares & options
7,989,062 Ordinary Shares
1,597,813 Listed GGGOB options
Other board positions held
Nil
Special responsibilities
Chairman of the Audit Committee
Qualifications
B.A. (USYD)
experience
Simon Cato – Non-Executive Director – Appointed 21 February 2006
Mr Simon Cato has had over 30 years capital markets experience in broking, regulatory roles and as
director of listed companies. He initially was employed by the ASX in Sydney and then in Perth.
From 1991 until 2006 Simon was an executive director and/or responsible executive of three
stockbroking firms and in those roles he has been involved in many aspects of broking including
management issues such as credit control and reporting to regulatory bodies in the securities
industry. As a broker Simon was also involved in the underwriting of a number of IPO’s and has been
through the process of IPO listing in the dual role of broker and director. Currently Simon holds a
number of non-executive roles with listed companies in Australia.
Interest in shares & options
6,117,808 Ordinary shares
481,780 listed GGGOB options
Other board positions held
Non-executive Chairman - Advanced Share Registry Limited - August 2007.
Non-executive director – Bentley Capital Limited – January 2016
Non-executive director – Keybridge Capital limited – July 2016
Positions held in the last 3 years
Queste Communications Limited – February 2008 to 3 April 2014
Transaction Solutions International Limited – February 2010 to 30 September 2014
Wenting Chen – Non-executive Director – Appointed 9 December 2016
Special responsibilities
Nil
Qualifications
BA.Law, BA.Econ, MBA
DIReCtORS’ RePORt
Information on Directors
Wenting Chen (cont’d)
experience
Ms Wenting Chen completed a Bachelor of Law, major in law, at Nanjing University, PRC. After
graduation, she continued her study and completed a Bachelor of Economics, major in International
trade, at Nanjing University, PRC.
Wenting started her career in Bank of Nanjing, then joined East China Exploration Bureau (ECE)
since the early 2007, working in the investment department specializing in overseas mining project
investment. She was fully involved in several acquisitions in Australia and an IPO in the AIM market of
LSE. Before she left ECE, she acted as General Manager Assistant of ECE’s overseas subsidiary.
Wenting achieved her Master’s Degree in Business Administration at Nanjing University in the year of
2011, and passed the Bar Examination in China. In early 2014, she joined Shenghe Resources
Holding Co.,Ltd (600392 SSE), focused on the acquisition of rare earth projects outside China,
playing her role in leading the overseas investment department for selecting, evaluation of the target
projects, participating in commercial negotiation and legal aspects.
Wenting is Le Shan Shenghe Rare Earth Company Limited’s nominee to the Company’s board.
Interest in shares & options
Nil Ordinary shares
Nil Listed GGGOB options
Directorships held in other listed entities
Nil
Michael Hutchinson - Non-Executive Director – Appointed 25 November 2008 – Resigned
3 April 2016
Special responsibilities
Member of the Audit Committee
Qualifications
BSc (Hons) Geography
experience
Mr Michael Hutchinson has had a distinguished career in resources and commodity trading, having
served as Director of the London Metal Exchange, the world's largest market in options and futures
contracts on base and other metals.
Interest in shares & options (as at date of resignation – 3 April 2016)
921,276 Ordinary shares
500,000 Listed GGGOA options
Directorships held in other listed entities
Non-executive chairman – Noricum Gold Limited – November 2013
Former directorships in other listed entities in the last 3 years
Mecom Plc – April 2009 – 21 February 2016
20
21
2121
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
DIReCtORS’ RePORt
Jeremy Sean Whybrow – Non-executive director – Appointed 21 February 2006 –
Resigned 29 March 2016
Special responsibilities
Member of the Audit Committee
Qualifications
B.Sc. (Mineral Exploration and Mining Geology), G.Cert(Minerals Economics), M.Aus.I.M.M
experience
Mr Jeremy Whybrow graduated from Curtin University of Technology in 1996 with a Bachelor of
Science degree (Mineral Exploration and Mining Geology), and has had over 15 years’ experience in
the minerals industry both domestically and internationally.
Interest in Shares & options (as at date of resignation 3 April 2016)
6,260,200 Ordinary shares
250,000 GGGOA options
Directorships held in other listed entities
Executive Director - Noricom Gold Limited – November 2010
Positions held in the last 3 years
Nil
Remuneration Report – Audited
This remuneration report, which forms part of the directors’ report, details the nature and amount of
remuneration for each director of Greenland Minerals and Energy Limited and senior management,
for the financial year ended 31 December 2016.
Director and senior management details
The following persons acted as directors of the Company during or since the end of the financial year:
Anthony Ho, Non-Executive Chairman
John Mair, Managing Director
Simon Kenneth Cato, Non-Executive Director
Wenting Chen, Non-executive director – appointed 9 December 2016
Michael Hutchinson, Non-Executive Director – resigned 3 April 2016
Jeremy Sean Whybrow, Non-Executive Director – resigned 29 March 2016
The term ‘senior management’ is used in this remuneration report to refer to the following persons.
Except as noted above, the named persons held their current position for the whole of the financial
year and since the end of the financial period:
Miles Guy, Chief Financial Officer and Company Secretary
Board structure
As part of the board renewal process, the Company intends to evolve the board with independent
non-executive directors who have experience and skills that are more relevant to the Company’s
primary focus area pertaining to project development. This process was temporarily suspended while
during negotiations with Shenghe Resources Holding Co Ltd. With the completion of the placement
to Shenghe in late 2016, focus will be returned to evolving the board.
22
22
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Jeremy Sean Whybrow – Non-executive director – Appointed 21 February 2006 –
DIReCtORS’ RePORt
Resigned 29 March 2016
Special responsibilities
Member of the Audit Committee
Qualifications
experience
B.Sc. (Mineral Exploration and Mining Geology), G.Cert(Minerals Economics), M.Aus.I.M.M
Mr Jeremy Whybrow graduated from Curtin University of Technology in 1996 with a Bachelor of
Science degree (Mineral Exploration and Mining Geology), and has had over 15 years’ experience in
the minerals industry both domestically and internationally.
Interest in Shares & options (as at date of resignation 3 April 2016)
6,260,200 Ordinary shares
250,000 GGGOA options
Directorships held in other listed entities
Executive Director - Noricom Gold Limited – November 2010
Positions held in the last 3 years
Nil
Remuneration Report – Audited
This remuneration report, which forms part of the directors’ report, details the nature and amount of
remuneration for each director of Greenland Minerals and Energy Limited and senior management,
for the financial year ended 31 December 2016.
Director and senior management details
The following persons acted as directors of the Company during or since the end of the financial year:
Anthony Ho, Non-Executive Chairman
John Mair, Managing Director
Simon Kenneth Cato, Non-Executive Director
Wenting Chen, Non-executive director – appointed 9 December 2016
Michael Hutchinson, Non-Executive Director – resigned 3 April 2016
Jeremy Sean Whybrow, Non-Executive Director – resigned 29 March 2016
The term ‘senior management’ is used in this remuneration report to refer to the following persons.
Except as noted above, the named persons held their current position for the whole of the financial
year and since the end of the financial period:
Miles Guy, Chief Financial Officer and Company Secretary
Board structure
As part of the board renewal process, the Company intends to evolve the board with independent
non-executive directors who have experience and skills that are more relevant to the Company’s
primary focus area pertaining to project development. This process was temporarily suspended while
during negotiations with Shenghe Resources Holding Co Ltd. With the completion of the placement
to Shenghe in late 2016, focus will be returned to evolving the board.
DIReCtORS’ RePORt
Remuneration Report – Audited (cont’d)
Remuneration Policy
The remuneration policy of Greenland Minerals and Energy Limited has been designed to align
director and senior management objectives with shareholder and business objectives by providing a
fixed remuneration component and offering specific long-term incentives based on meeting service
period requirements and share price vesting hurdles. The board of Greenland Minerals and Energy
Limited believes the remuneration policy to be appropriate and effective in its ability to attract and
retain the best senior management and directors to run and manage the Consolidated Group, as well
as create alignment of interests between directors, senior management and shareholders.
The board’s policy for determining the nature and amount of remuneration for board members and
senior executives of the Consolidated Group is as follows:
• All senior management receive a market rate base salary (which is based on factors such as
length of service and experience) and superannuation.
• The directors and senior management, where applicable receive a superannuation guarantee
contribution required by the government, which is currently 9.5% and do not receive any other
retirement benefits.
• All remuneration paid to directors and senior management is valued at the cost to the
Consolidated Group and expensed. Options and rights granted to directors and senior
management as part of remuneration are valued at grant date using appropriate valuation
techniques.
• The board policy is to remunerate non-executive directors with a base fee and an additional
fee at market rates for time for any additional commitment and responsibilities. The board as
a whole determines payments to the non-executive directors and reviews their remuneration
annually, based on market rates, their specific duties and responsibilities. Additional
consultancy fees may be payable where the non-executive director has had additional
responsibilities associated with specific tasks or responsibilities outside their normal duties.
The maximum aggregate amount of fees that can be paid to non-executive directors is
subject to approval by shareholders at the Annual General Meeting. The current shareholder
approved cap on these fees is $400,000 per annum. Fees for non-executive directors are not
linked to the performance of the Consolidated Group. However, to align directors’ interests
with shareholder interests, the directors are encouraged to hold shares in the Company.
Remuneration –Cash payment
Cash payments is the recognition of short term remuneration and the provision for long term
remuneration that has or will be settled in cash payments.
Short term incentives (StI)
The Consolidated Group does not have a short term incentive scheme that is in addition to the short
term employee benefits. The Consolidated Group considers that short term incentive schemes would
not be consistent with shareholder value at the Consolidated Group’s current stage of development.
Remuneration – Share based payments (Long term Incentives)
The Consolidated Group does not at present have a share based employee scheme in place. A
previously existing employee rights plan expired on 30 September 2016 without satisfying share price
vesting hurdles. Any future replacement plan will be aligned with an increase in stakeholder value.
Separation payments
Director and senior management are not entitled to any separation payment other than statutory
entitlements and notice period payment. There are no notice period requirements for Non-executive
Directors and the notice period requirements for Executive Directors and Senior Management are
disclosed key terms of employment contracts, on pages 26 to 27.
22
23
2323
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
DIReCtORS’ RePORt
Remuneration Report – Audited (cont’d)
Details of Remuneration
The remuneration for the directors and senior management of the Company during the current
financial year was as follows:
Short term benefits
salary &
fees
$
other
$
Post-
employment
benefits
Super-
annuation
$
Long –term
remuneration
Provision for
long service
leave
$
Share Based payments
sTi
$
rights
$
total
Remuneration
$
%
Consisting
of share
based
payments
350,000
100,000
50,000
2,411
11,250
18,750
180,000
712,411
-
-
-
-
-
-
-
-
33,249
11,683
9,500
4,749
-
-
-
-
-
-
-
-
17,100
64,598
1,050
12,733
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
394,932
109,500
54,749
2,411
11,250
18,750
198,150
789,742
-
-
-
-
-
-
-
-
2016
executive
Director
J Mair
Non-executive
Director
A Ho
S Cato
W Chen (i)
M Hutchinson (ii)
J Whybrow (iii)
Senior
Management
M Guy
ToTal
(i) Wenting Chen was appointed as a non-executive director on 9 December 2016.
(ii) Michael Hutchinson resigned as a non-executive director on 3 April 2016.
(iii) Jeremy Whybrow resigned as a non-executive director on 29 March 2016.
The remuneration for the directors and senior management of the Company during the previous
financial year was as follows:
Short term benefits
Salary &
fees
$
other
$
Post-
employment
benefits
Super-
annuation
$
Long –term
remuneration
Provision for
long service
leave
$
Share Based payments
sTi
$
rights
$
total
Remuneration
$
%
Consisting
of share
based
payments
350,000
108,250
51,250
45,000
60,600
180,000
795,100
-
-
-
-
-
-
-
33,250
5,833
9,500
5,225
-
-
-
-
-
-
17,100
65,075
16,800
22,633
-
-
-
-
-
-
-
-
-
-
-
-
-
-
389,083
117,750
56,475
45,000
60,600
-
-
-
-
-
213,900
882,808
-
0%
24
2015
executive
Director
J Mair
Non-executive
Director
A Ho
S Cato
M Hutchinson
J Whybrow
Senior
Management
M Guy
ToTal
24
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
DIReCtORS’ RePORt
Remuneration Report – Audited (cont’d)
Details of Remuneration
financial year was as follows:
The remuneration for the directors and senior management of the Company during the current
Short term benefits
salary &
fees
$
other
$
Post-
employment
benefits
Super-
annuation
$
Long –term
remuneration
Provision for
long service
leave
$
Share Based payments
sTi
$
$
rights
Remuneration
total
$
%
Consisting
of share
based
payments
350,000
33,249
11,683
2016
executive
Director
J Mair
Director
A Ho
S Cato
Non-executive
W Chen (i)
M Hutchinson (ii)
J Whybrow (iii)
Senior
Management
M Guy
ToTal
100,000
50,000
2,411
11,250
18,750
180,000
712,411
9,500
4,749
-
-
-
17,100
64,598
1,050
12,733
(i) Wenting Chen was appointed as a non-executive director on 9 December 2016.
(ii) Michael Hutchinson resigned as a non-executive director on 3 April 2016.
(iii) Jeremy Whybrow resigned as a non-executive director on 29 March 2016.
The remuneration for the directors and senior management of the Company during the previous
financial year was as follows:
Short term benefits
Salary &
fees
$
other
$
Post-
employment
benefits
Super-
annuation
$
Long –term
remuneration
Provision for
long service
leave
$
Share Based payments
sTi
$
$
rights
Remuneration
total
$
%
Consisting
of share
based
payments
350,000
33,250
5,833
2015
executive
Director
J Mair
Director
A Ho
S Cato
Non-executive
M Hutchinson
J Whybrow
Senior
Management
M Guy
ToTal
108,250
51,250
45,000
60,600
180,000
795,100
9,500
5,225
-
-
17,100
65,075
16,800
22,633
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
394,932
109,500
54,749
2,411
11,250
18,750
198,150
789,742
389,083
117,750
56,475
45,000
60,600
213,900
882,808
24
DIReCtORS’ RePORt
Remuneration Report – Audited (cont’d)
Options exercised
No options issued to directors or senior management were exercised during the year ended 31
December 2016 or the previous financial year ended 31 December 2015.
Rights expired
During the current financial year ended 31 December 2016 the following un-vested Employee
Performance Rights expired due to failing to meet the share price vesting hurdles. The Rights were
issued in 2013 and fully expensed proportionately over the years ended 31 December 2013 to 31
December 2014.
employee
M Guy
Number
1,200,000
Value @ grant
date
$
expiry date
Value @ expiry
date
210,289
30/06/2016
-
During the previous financial year ended 31 December 2015 the following un-vested Employee
Performance Rights expired due to failing to meet the share price vesting hurdles. The Rights were
issued in 2011 and fully expensed proportionately over the years ended 31 December 2012 to 31
December 2013.
Directors
A Ho
Number
1,000,000
Value @ grant
date
$
expiry date
Value @
expiry
date
460,000
23/01/2015
-
Rights cancelled
No un-vested Employee Performance Rights were cancelled in during the current financial year
ended 31 December 2016 or the previous financial year ended 31 December 2015.
No director or senior management person appointed during the current or prior period received a
payment as part of his consideration for agreeing to hold the position.
No cash bonuses were paid to any directors or senior management during the current or prior period.
Key management personnel equity holdings
Refer to note 27 for full details of key management personnel equity holdings.
transactions with related parties
Simon Cato is a Non-executive Director and Chairman of Advanced Share Registry Limited.
Advanced Share Registry Limited provides share registry services to Greenland Minerals and Energy
Limited. These services are supplied on normal commercial terms and Mr Cato does not receive any
remuneration from Advanced Share Registry Limited based on the supply of share registry services to
the Consolidated Group. For the year ended 31 December 2016 $59,907 was paid to Advance Share
Registry Limited for services provided (Dec 2015: $73,365).
Consolidated Group performance, shareholder wealth and director and senior management
remuneration
The remuneration policy has been tailored to align the interests of shareholders, directors and senior
management. To achieve this aim, the entity may issue options to directors and senior management.
Any issue of options is based on the performance of the Consolidated Group and or individual and is
limited to the achievement of clearly defined bench marks and milestones. These bench marks and
milestones may include:
25
2525
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
DIReCtORS’ RePORt
Remuneration Report – Audited (cont’d)
Share price and or the market capitalisation of the Company exceeding pre-determined
levels.
Completion of specific projects or pre-determined stages of projects.
Periods of service with the Company.
Accretion of shareholder value.
The following table shows the gross revenue and profits for the period from 31 December 2011 to 31
December 2016 for the listed entity, as well as the share price at the end of each financial period.
Remuneration Report
Revenue
Net loss before and after tax
Share price at beginning of
period
Share price at end of period
Dividend
Basic loss per share
Diluted loss per share
12 month
period ended
31 Dec
2016
12 Month
12 Month
period ended
period ended
31 Dec
31 Dec
2013
2015
$760,583
$193,508
(2,172,733) ($4,091,615) ($5,062,999)
$82,966
12 Month
period ended
31 Dec
2012
$297,067
6 Month
period ended
31 Dec
2011
$351,106
($8,768,670) $(17,344,250)
$0.03
$0.07
$0.03
$0.03
$0.07
$0.03
-
$0.06
$0.06
$0.21
$0.07
-
$0.08
$0.08
$0.27
$0.21
-
$0.20
$0.20
$0.46
$0.27
-
$0.04
$0.04
key terms of employment contracts
Directors
Anthony Ho, Non-executive Chairman
Director fee of $100,000 per annum.
A consultant’s fee of $1,500 per day for pre-approved work undertaken in addition to the
Director’s duties.
Superannuation at 9.5% is payable on the base director’s fee.
Entitled to be reimbursed for all out of pocket expenses necessarily incurred in the
performance of his duties including relating to travel, entertainment, accommodation, meals
and telephone.
No fixed term.
John Mair, Managing Director
Term and type of contract – service agreement subject to annual review.
Base salary, of $350,000 per annum and is paid monthly two weeks in advance and two
weeks in arrears.
Superannuation at 9.5% is payable on the base salary.
Either the Company or the employee may terminate his engagement without cause by
giving the other party twelve months written notice, there are no other specific payout
clauses
Entitled to be reimbursed for all out of pocket expenses necessarily incurred in the
performance of his duties including relating to travel, entertainment, accommodation,
meals and telephone.
26
26
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
DIReCtORS’ RePORt
Remuneration Report – Audited (cont’d)
DIReCtORS’ RePORt
Remuneration Report – Audited (cont’d)
Share price and or the market capitalisation of the Company exceeding pre-determined
Simon Cato, Non-Executive Director
Director fee of $50,000 per annum.
A consultant’s fee of $1,500 per day for pre-approved work undertaken in addition to the
Director’s duties.
Superannuation at 9.5% is payable on the base director’s fee.
Entitled to be reimbursed for all out of pocket expenses necessarily incurred in the
performance of his duties including relating to travel, entertainment, accommodation, meals
and telephone.
No fixed term.
Wenting Chen, Non-Executive Director
Director fee of $40,000 per annum.
A consultant’s fee of $1,500 per day for pre-approved work undertaken in addition to the
Director’s duties.
Entitled to be reimbursed for all out of pocket expenses necessarily incurred in the
performance of his duties including relating to travel, entertainment, accommodation, meals
and telephone.
No fixed term.
Michael Hutchinson, Non-Executive Director (Resigned 3 April 2016)
Director fee of $45,000 per annum
A consultant’s fee of $1,500 per day for pre-approved work undertaken in addition to the
Director’s duties.
Entitled to be reimbursed for all out of pocket expenses necessarily incurred in the
performance of his duties including relating to travel, entertainment, accommodation, meals
and telephone.
No fixed term.
Jeremy Whybrow, Non-Executive Director (Resigned 29 March 2016)
levels.
Completion of specific projects or pre-determined stages of projects.
Periods of service with the Company.
Accretion of shareholder value.
The following table shows the gross revenue and profits for the period from 31 December 2011 to 31
December 2016 for the listed entity, as well as the share price at the end of each financial period.
Remuneration Report
period ended
period ended
period ended
period ended
period ended
12 month
12 Month
12 Month
12 Month
6 Month
Revenue
Net loss before and after tax
Share price at beginning of
Share price at end of period
period
Dividend
Basic loss per share
Diluted loss per share
31 Dec
2016
31 Dec
2015
31 Dec
2013
31 Dec
2012
31 Dec
2011
$82,966
$193,508
$760,583
$297,067
$351,106
(2,172,733) ($4,091,615) ($5,062,999)
($8,768,670) $(17,344,250)
$0.03
$0.07
$0.03
$0.03
$0.07
$0.03
-
$0.06
$0.06
$0.21
$0.07
-
$0.08
$0.08
$0.27
$0.21
-
$0.20
$0.20
$0.46
$0.27
-
$0.04
$0.04
key terms of employment contracts
Directors
Anthony Ho, Non-executive Chairman
Director fee of $100,000 per annum.
A consultant’s fee of $1,500 per day for pre-approved work undertaken in addition to the
Superannuation at 9.5% is payable on the base director’s fee.
Entitled to be reimbursed for all out of pocket expenses necessarily incurred in the
performance of his duties including relating to travel, entertainment, accommodation, meals
Director’s duties.
and telephone.
No fixed term.
John Mair, Managing Director
Term and type of contract – service agreement subject to annual review.
Base salary, of $350,000 per annum and is paid monthly two weeks in advance and two
weeks in arrears.
Superannuation at 9.5% is payable on the base salary.
Either the Company or the employee may terminate his engagement without cause by
giving the other party twelve months written notice, there are no other specific payout
Entitled to be reimbursed for all out of pocket expenses necessarily incurred in the
performance of his duties including relating to travel, entertainment, accommodation,
clauses
meals and telephone.
A consultant’s fee of $1,500 per day for pre-approved work undertaken in addition to the
Director’s duties.
Entitled to be reimbursed for all out of pocket expenses necessarily incurred in the
performance of his duties including relating to travel, entertainment, accommodation, meals
and telephone.
No fixed term.
Senior Management
Miles Guy, Chief Financial Officer and Company Secretary
Term and type of contract – service agreement subject to annual review.
Base salary, of $180,000 per annum and is paid monthly two weeks in advance and two
weeks in arrears.
Superannuation at 9.5% is payable on the base salary.
Entitled to be reimbursed for all out of pocket expenses necessarily incurred in the
performance of his duties including relating to travel, entertainment, accommodation,
meals and telephone.
Either the Company or the employee may terminate his engagement without cause by
giving the other party three months written notice, there are no other specific payout
clauses
Remuneration will be reviewed every 12 months or as otherwise agreed between the
parties.
26
27
2727
Director fee of $45,000 per annum.
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
DIReCtORS’ RePORt
Remuneration Report – Audited (cont’d)
Meetings of Directors
During the financial year, 12 meetings of directors were held. Attendances by each director during the
year were as follows:
Directors Meetings
Director
A Ho
J Mair
S Cato
W Chen
M Hutchinson
J Whybrow
Number of meetings
eligible to attend
12
12
12
-
1
-
Number
attended
12
12
12
-
1
-
Audit and Risk Committee
The audit committee members are Simon Cato (Chairman) and Anthony Ho. Michael Hutchinson was
a member of the audit committee up to his date of resignation on the 3 April 2016. The audit and
risk committee is to meet at least twice a year and must have a quorum of two members. There were
2 audit and risk committee meetings held during the current financial year, as follows:
Member
S Cato
A Ho
M Hutchinson
Audit Committee Meetings
Number of meetings
eligible to attend
2
2
1
Number
Attended
2
2
-
Indemnifying Officers
During or since the end of the financial period the Company has given an indemnity or entered into an
agreement to indemnify, or paid or agreed to pay insurance premium to insure the directors against
liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of
their conduct while acting in the capacity of the director of the Consolidated Group, other than conduct
involving a willful breach of duty in relation to the Consolidated Group.
Proceedings on Behalf of Consolidated Group
No person has applied for leave of court to bring proceedings on behalf of the Consolidated Group or
intervene in any proceedings to which the Consolidated Group is a party for the purpose of taking
responsibility on behalf of the Consolidated Group for all or any part of those proceedings.
The Consolidated Group was not a party to any such proceedings during the period.
Non-audit Services
Details of amounts paid to the auditors of the Company, Deloitte Touche Tohmatsu and its related
practices for audit and any non audit services for the year, are set out in note 30.
Auditor’s Independence Declaration
The auditor’s independence declaration for the year ended 31 December 2016 has been received and
is included on page 30 the financial report.
28
28
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
During the financial year, 12 meetings of directors were held. Attendances by each director during the
DIReCtORS’ RePORt
Remuneration Report – Audited (cont’d)
Meetings of Directors
year were as follows:
Director
A Ho
J Mair
S Cato
W Chen
M Hutchinson
J Whybrow
Directors Meetings
Number of meetings
eligible to attend
Number
attended
12
12
12
-
1
-
12
12
12
-
1
-
Audit and Risk Committee
The audit committee members are Simon Cato (Chairman) and Anthony Ho. Michael Hutchinson was
a member of the audit committee up to his date of resignation on the 3 April 2016. The audit and
risk committee is to meet at least twice a year and must have a quorum of two members. There were
2 audit and risk committee meetings held during the current financial year, as follows:
Member
S Cato
A Ho
M Hutchinson
Audit Committee Meetings
Number of meetings
eligible to attend
Number
Attended
2
2
1
2
2
-
Indemnifying Officers
During or since the end of the financial period the Company has given an indemnity or entered into an
agreement to indemnify, or paid or agreed to pay insurance premium to insure the directors against
liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of
their conduct while acting in the capacity of the director of the Consolidated Group, other than conduct
involving a willful breach of duty in relation to the Consolidated Group.
Proceedings on Behalf of Consolidated Group
No person has applied for leave of court to bring proceedings on behalf of the Consolidated Group or
intervene in any proceedings to which the Consolidated Group is a party for the purpose of taking
responsibility on behalf of the Consolidated Group for all or any part of those proceedings.
The Consolidated Group was not a party to any such proceedings during the period.
Non-audit Services
Details of amounts paid to the auditors of the Company, Deloitte Touche Tohmatsu and its related
practices for audit and any non audit services for the year, are set out in note 30.
The auditor’s independence declaration for the year ended 31 December 2016 has been received and
Auditor’s Independence Declaration
is included on page 30 the financial report.
28
2929
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRtGreenland Minerals and Energy LimitedAnd Controlled Entities31 December 2016Financial Report29DIReCtORS’ RePORtCorporate governance statementThe board of Directors of Greenland Minerals and Energy Limited is responsible for the corporate governance of the Consolidated Group. The Company’s board and the executives of the Consolidated Group recognises the need to formulate corporate governance policies that establish and maintain the highest standards of ethical behaviour and accountability and for the policies to meet the requirements of the market regulators and the expectations of members and other stakeholders. The corporate governance policies are regularly reviewed to ensure they are appropriate as the Company and corporate governance expectations evolve. The Company’s corporate governance policy has been structured taking into consideration the third edition of the ASX Corporate Governance Council Principles and Recommendations. The policy was approved by the board on 17 March 2016 and is available on the Company’s website: Rounding off of amountsThe Consolidated Group is a Consolidated Group of the kind referred to in ASIC Class Order 98/0100, dated 10 July 1998. In accordance with that Class Order amounts in the directors’ report and the financial report are rounded off to the nearest thousand dollars, unless otherwise indicated. Signed in accordance with a resolution of directors, made pursuant to section 298(2) of the Corporations Act 2001. On behalf of the Directors. John MairManaging Director
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2, Brookfield Place
123 St Georges Terrace
Tower 2, Brookfield Place
Perth WA 6000
123 St Georges Terrace
GPO Box A46
Perth WA 6000
Perth WA 6837 Australia
GPO Box A46
Perth WA 6837 Australia
Tel: +61 8 9365 7000
Fax: +61 8 9365 7001
Tel: +61 8 9365 7000
www.deloitte.com.au
Fax: +61 8 9365 7001
www.deloitte.com.au
The Board of Directors
The Board of Directors
Greenland Minerals and Energy Limited
Greenland Minerals and Energy Limited
Ground Floor
Ground Floor
Unit 6, 100 Railway Road,
Unit 6, 100 Railway Road,
Subiaco WA 6008
Subiaco WA 6008
22 March 2017
22 March 2017
Dear Board Members
Dear Board Members
Greenland Minerals and Energy Limited
Greenland Minerals and Energy Limited
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the
following declaration of independence to the directors of Greenland Minerals and Energy
following declaration of independence to the directors of Greenland Minerals and Energy
Limited.
Limited.
As lead audit partner for the audit of the financial statements of Greenland Minerals and
As lead audit partner for the audit of the financial statements of Greenland Minerals and
Energy Limited for the financial year ended 31 December 2016, I declare that to the best of
Energy Limited for the financial year ended 31 December 2016, I declare that to the best of
my knowledge and belief, there have been no contraventions of:
my knowledge and belief, there have been no contraventions of:
(i) the auditor independence requirements of the Corporations Act 2001 in relation to
(i) the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
the audit; and
(ii) any applicable code of professional conduct in relation to the audit.
(ii) any applicable code of professional conduct in relation to the audit.
Yours sincerely
Yours sincerely
DELOITTE TOUCHE TOHMATSU
DELOITTE TOUCHE TOHMATSU
David Newman
David Newman
Partner
Partner
Chartered Accountants
Chartered Accountants
Liability limited by a scheme approved under Professional Standards Legislation.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Touche Tohmatsu Limited
Member of Deloitte Touche Tohmatsu Limited
30
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2, Brookfield Place
123 St Georges Terrace
Tower 2, Brookfield Place
Perth WA 6000
123 St Georges Terrace
GPO Box A46
Perth WA 6000
Perth WA 6837 Australia
GPO Box A46
Perth WA 6837 Australia
Tel: +61 8 9365 7000
Fax: +61 8 9365 7001
Tel: +61 8 9365 7000
www.deloitte.com.au
Fax: +61 8 9365 7001
www.deloitte.com.au
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2, Brookfield Place
123 St Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia
Tel: +61 8 9365 7000
Fax: +61 8 9365 7001
www.deloitte.com.au
The Board of Directors
The Board of Directors
Greenland Minerals and Energy Limited
Greenland Minerals and Energy Limited
Ground Floor
Ground Floor
Unit 6, 100 Railway Road,
Unit 6, 100 Railway Road,
Subiaco WA 6008
Subiaco WA 6008
22 March 2017
22 March 2017
Dear Board Members
Dear Board Members
Greenland Minerals and Energy Limited
Greenland Minerals and Energy Limited
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the
following declaration of independence to the directors of Greenland Minerals and Energy
following declaration of independence to the directors of Greenland Minerals and Energy
Limited.
Limited.
As lead audit partner for the audit of the financial statements of Greenland Minerals and
As lead audit partner for the audit of the financial statements of Greenland Minerals and
Energy Limited for the financial year ended 31 December 2016, I declare that to the best of
Energy Limited for the financial year ended 31 December 2016, I declare that to the best of
my knowledge and belief, there have been no contraventions of:
my knowledge and belief, there have been no contraventions of:
(i) the auditor independence requirements of the Corporations Act 2001 in relation to
(i) the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
the audit; and
(ii) any applicable code of professional conduct in relation to the audit.
(ii) any applicable code of professional conduct in relation to the audit.
Yours sincerely
Yours sincerely
DELOITTE TOUCHE TOHMATSU
DELOITTE TOUCHE TOHMATSU
David Newman
David Newman
Partner
Partner
Chartered Accountants
Chartered Accountants
Independent Auditor’s Report to the members of
Greenland Minerals and Energy Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Greenland Minerals and Energy Limited (the
“Company”) and its subsidiaries (the “Group”) which comprises the consolidated statement of
financial position as at 31 December 2016, 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’
71.
declaration as set out on pages 35 to 71.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the Group’s financial position as at 31 December 2016
and of its financial performance for the year then ended; and
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 confirm that the independence declaration required by the Corporations Act 2001, which
has been given to the directors of the Company, would be in the same terms if given to the
directors as at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion
Liability limited by a scheme approved under Professional Standards Legislation.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Touche Tohmatsu Limited
Member of Deloitte Touche Tohmatsu Limited
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Touche Tohmatsu Limited
3131
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
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 for 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 the scope of our audit responded to
the Key Audit Matter
Carrying value of Exploration and
Evaluation Assets
As at 31 December 2016 the carrying
value of exploration and evaluation assets
is $71.9 million (2015: $71.8 million), as
disclosed in Note 12 to the Financial
Statements. The Group’s accounting
policy in respect of exploration and
evaluation assets is outlined in Note 1.
indicate
judgement
whether
is applied
facts
that
Significant
in
determining
and
the
circumstances
exploration and expenditure assets should
be tested for impairment in accordance
with Australian Accounting Standard
AASB 6 Exploration for and Evaluation of
Mineral Resources.
focussed on evaluating
Our procedures
impairment
management’s assessment of
indicators, these procedures included, but were
not limited to:
confirming whether the rights to tenure
of the area of interest remained current
at balance date,
obtaining an understanding of the status
of ongoing exploration programmes, and
the mining licence application process
for the respective area of interest,
obtaining evidence
of the
for the area of
future
interest,
future budgeted
work
intention
including reviewing
and
expenditure
programmes; and
confirming whether exploration activities
for the area of interest had reached a
stage where a reasonable assessment of
economically
reserves
existed.
recoverable
related
We also assessed the appropriateness of the
related disclosures in Note 12 to the Financial
Statements.
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 31 December 2016, 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 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.
Directors’ Responsibilities 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
32
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
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 Those Charged with
Governance either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole
is free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with 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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise
professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether
due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by Those Charged with Governance.
Conclude on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Group’s
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in
the financial report or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Group to cease to continue
as a going concern.
Evaluate the overall presentation, structure and content of the financial report,
including the disclosures, and whether the financial report represents the underlying
transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Group to express an opinion on the financial
report. We are responsible for the direction, supervision and performance of the Group’s
audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
3333
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of
most significance in the audit of the financial report of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report of Greenland Minerals and Energy Limited included
in pages 22 to 28 of the Director’s report for the year ended 31 December 2016.
In our opinion, the Remuneration Report of the Company, for the year ended 31 December
2016, 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.
DELOITTE TOUCHE TOHMATSU
David Newman
Partner
Chartered Accountants
Perth, 22 March 2017
34
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
3535
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRtGreenland Minerals and Energy LimitedAnd Controlled Entities31 December 2016Financial Report34Directors’declarationThe directors declare that: (a) 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; (b) in the directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the Consolidated Group; (c) the attached financial statements and notes thereto, are in compliance with International Financial Reporting Standards as stated in note 2 of the financial statements; and (d) the directors have been given the declarations required by s.295A of the Corporations Act 2001. Signed in accordance with a resolution of the directors made pursuant to s.295(5) of the Corporations Act 2001. On behalf of the Directors John MairManaging DirectorSubiaco, 22 March 2017 Consolidated statement of profit or loss and other comprehensive income
for the year ended 31 December 2016
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Revenue from continuing operations
expenditure
Director and employee benefits
Professional fees
Occupancy expenses
Listing costs
Royalty acquisition cost
Impairment of capitalised exploration and evaluation
expenditure
Other expenses
Loss before tax
Income tax expense
Loss for year
Other comprehensive income
Items that may be reclassified subsequently to profit
and loss
Exchange difference arising on translation of foreign
operations
Income tax relating to components of
comprehensive income
Other comprehensive income for the year
total comprehensive loss for the year
Loss attributable to:
Owners of the parent
Total comprehensive loss attributable to:
Owners of the parent
Basic loss per share – cents per share
Diluted loss per share – cents per share
Note
5
6(a)
6(b)
6(c)
6(d)
6(e)
6(f)
6(g)
7
7
20
Notes to the financial statements are included on pages 40 to 71
Dec
2016
$' 000
Dec
2015
$' 000
83
194
(861)
(343)
(292)
(134)
-
-
(626)
(2,173)
-
(2,173)
(1,062)
(497)
(322)
(138)
(847)
(594)
(825)
(4,091)
-
(4,091)
(1,322)
38
-
(1,322)
(3,495)
(2,173)
(2,173)
(3,495)
(3,495)
0.026
0.026
-
38
(4,053)
(4,091)
(4,091)
(4,053)
(4,053)
0.058
0.058
36
35
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Dec
2016
$' 000
Dec
2015
$' 000
83
194
Revenue from continuing operations
expenditure
Director and employee benefits
Professional fees
Occupancy expenses
Listing costs
Royalty acquisition cost
expenditure
Other expenses
Loss before tax
Income tax expense
Loss for year
Impairment of capitalised exploration and evaluation
Other comprehensive income
Items that may be reclassified subsequently to profit
Exchange difference arising on translation of foreign
and loss
operations
Income tax relating to components of
comprehensive income
Other comprehensive income for the year
total comprehensive loss for the year
Loss attributable to:
Owners of the parent
Total comprehensive loss attributable to:
Owners of the parent
Basic loss per share – cents per share
Diluted loss per share – cents per share
Note
5
6(a)
6(b)
6(c)
6(d)
6(e)
6(f)
6(g)
7
7
20
(2,173)
(4,091)
(861)
(343)
(292)
(134)
-
-
-
(626)
(2,173)
(1,322)
-
(1,322)
(3,495)
(2,173)
(2,173)
(3,495)
(3,495)
0.026
0.026
(1,062)
(497)
(322)
(138)
(847)
(594)
(825)
(4,091)
-
38
-
38
(4,053)
(4,091)
(4,091)
(4,053)
(4,053)
0.058
0.058
Consolidated statement of profit or loss and other comprehensive income
for the year ended 31 December 2016
Consolidated statement of financial position
as at 31 December 2016
Current Assets
Cash and cash equivalents
Trade and other receivables
Other assets
total Current Assets
Non-Current Assets
Property, plant and equipment
Capitalised exploration and evaluation expenditure
Other assets
total Non-Current Assets
total Assets
Current Liabilities
Trade and other payables
Other liabilities
Provisions
total Current Liabilities
Non-Current Liabilities
Provisions
total Non-Current Liabilities
total Liabilities
net assets
equity
Issued Capital
Reserves
Accumulated Losses
total equity
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Note
8
9
10(a)
11
12
10(b)
13
14
15(a)
15(b)
Dec
2016
$' 000
Dec
2015
$' 000
6,378
2,706
31
671
7,080
43
587
3,336
1,004
71,925
41
72,970
1,166
71,815
185
73,166
80,050
76,502
778
74
256
1,108
987
-
249
1,236
107
107
97
97
1,215
78,835
1,333
75,169
16
17
19
354,710
348,361
(9,074)
(8,564)
(266,801)
78,835
(264,628)
75,169
Notes to the financial statements are included on pages 40 to 71
Notes to the financial statements are included on pages 40 to 71
35
36
3737
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Consolidated statement of changes in equity
for the year ended 31 December 2016
Non -
Controlling
interest
Foreign
currency
translation acquisition Accumulated
reserve
reserve
losses
Issued
capital
Option
reserve
$' 000
344,349
$' 000
27,567
$' 000
2,523
$’000
(39,672)
$' 000
(260,537)
total
$' 000
74,230
-
-
-
2,519
-
-
-
-
780
67
193
720
408
205
96
-
38
38
-
-
-
-
-
-
-
-
-
-
-
(4,091)
(4,091)
-
38
(4,091)
(4,053)
-
-
-
-
2,519
847
601
925
96
4
348,361
-
28,547
-
2,561
-
(39,672)
-
(264,628)
4
75,169
Balance at 1 January 2015
Net loss for the year
Other Comprehensive
income
Total comprehensive
for the year
Issue of shares
Net of transaction costs
Recognition of share based
payments – acquisition of
royalty
Recognition of share based
payments – cost of Long State
facility
Recognition of share based
payments – rights issue
Recognition of share based
payments – consultants
Issue of shares from option
exercise
Balance at 31 December 2015
Balance at 1 January 2016
348,361
28,547
2,561
(39,672)
(264,628)
75,169
Net loss for the year
Other Comprehensive
income
Total comprehensive
for the year
Issue of shares
Net of transaction costs
Recognition of share based
payments – capital raising
Recognition of share based
payments – consultants
Issue of shares from option
exercise
Balance at 31 December 2016
-
-
-
6,204
-
-
-
-
131
736
-
77
-
(1,322)
(1,322)
-
-
-
-
-
-
-
(2,173)
(2,173)
-
(1,322)
(2,173)
(3,495)
-
-
6,204
867
77
14
354,710
(1)
29,359
-
1,239
-
(39,672)
-
(266,801)
13
78,835
Notes to the financial statements are included on pages 40 to 71
38
37
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Consolidated statement of changes in equity
for the year ended 31 December 2016
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Issued
capital
Option
reserve
Balance at 1 January 2015
Consolidated statement of cash flows
for the year ended 31 December 2016
$' 000
344,349
$' 000
27,567
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Non -
Controlling
interest
Foreign
currency
translation acquisition Accumulated
Greenland Minerals and energy Limited
And Controlled entities
reserve
$' 000
2,523
reserve
31 December 2016 Financial Report
losses
total
$’000
(39,672)
$' 000
(260,537)
$' 000
74,230
-
-
-
-
-
-
Net loss for the year
Other Comprehensive
income
Total comprehensive
for the year
Issue of shares
Net of transaction costs
Recognition of share based
payments – acquisition of
royalty
Recognition of share based
payments – cost of Long State
facility
Recognition of share based
payments – rights issue
Recognition of share based
payments – consultants
Issue of shares from option
exercise
Balance at 31 December 2015
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
2,519
Net cash used in operating activities
Cash flows from investing activities
Interest received
Payments for property, plant and equipment
Payments for exploration and development
Proceeds from government grants and rebates
net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares/options
Payment for shares/options issue costs
net cash from financing activities
4
348,361
-
28,547
720
193
408
205
780
67
96
-
-
-
-
28,547
348,361
Balance at 1 January 2016
net increase/(decrease) in cash and equivalents
Cash and equivalents at the beginning of the financial year
Cash and equivalents at the end of the
Financial year
Net loss for the year
Other Comprehensive
income
Total comprehensive
for the year
Issue of shares
Net of transaction costs
Recognition of share based
payments – capital raising
Recognition of share based
payments – consultants
Issue of shares from option
exercise
Balance at 31 December 2016
14
354,710
(1)
29,359
6,204
736
131
77
-
-
-
-
-
(1,322)
(1,322)
-
-
-
1,239
notes to the financial statements are included on pages 39 to 70
Notes to the financial statements are included on pages 40 to 71
-
38
Note
38
23
-
-
-
-
-
2,561
2,561
8
-
-
-
-
-
-
-
31 Dec
2016
-
$' 000
(4,091)
31 Dec
2015
-
$' 000
(4,091)
38
(4,091)
(4,053)
45
(2,201)
(2,156)
22
(2,219)
-
(2,197)
2,519
847
601
925
96
4
75,169
37
-
(2,001)
708
(1,256)
-
101
(8)
(5,416)
1,075
-
(4,248)
-
7,097
(13)
7,084
3,749
(167)
3,582
-
(264,628)
3,672
2,706
(2,863)
5,569
(264,628)
75,169
6,378
(2,173)
2,706
(2,173)
-
(1,322)
(2,173)
(3,495)
-
-
6,204
867
77
-
(39,672)
(39,672)
-
-
-
-
-
-
(39,672)
-
(266,801)
13
78,835
37
38
3939
Consolidated statement of changes in equity
for the year ended 31 December 2016
Non -
Foreign
currency
Controlling
interest
Issued
capital
Option
reserve
translation acquisition Accumulated
reserve
reserve
$' 000
$' 000
$' 000
$’000
losses
$' 000
total
$' 000
Balance at 1 January 2015
344,349
27,567
2,523
(39,672)
(260,537)
74,230
Net loss for the year
Other Comprehensive
income
Total comprehensive
for the year
Issue of shares
Net of transaction costs
Recognition of share based
payments – acquisition of
royalty
facility
Recognition of share based
payments – cost of Long State
Recognition of share based
payments – rights issue
Recognition of share based
payments – consultants
Issue of shares from option
exercise
Net loss for the year
Other Comprehensive
income
Total comprehensive
for the year
Issue of shares
Net of transaction costs
Recognition of share based
payments – capital raising
Recognition of share based
payments – consultants
Issue of shares from option
exercise
780
67
193
720
2,519
408
205
96
4
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,204
131
736
-
14
77
(1)
-
38
38
-
-
-
-
-
-
-
-
-
Balance at 31 December 2015
348,361
28,547
2,561
(39,672)
(264,628)
75,169
Balance at 1 January 2016
348,361
28,547
2,561
(39,672)
(264,628)
75,169
(1,322)
(1,322)
(2,173)
(2,173)
-
(1,322)
(2,173)
(3,495)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(4,091)
(4,091)
(4,091)
(4,053)
-
-
-
-
-
-
-
-
-
38
2,519
847
601
925
96
4
6,204
867
77
13
37
Balance at 31 December 2016
354,710
29,359
1,239
(39,672)
(266,801)
78,835
Notes to the financial statements are included on pages 40 to 71
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
1. General information
Greenland Minerals and energy limited is a public Company listed on the Australian Securities
Exchange, incorporated in Australia and operating in Greenland with its head office in Perth.
Greenland Minerals and energy limited registered office and its principal place of business are as
follows:
Registered office
Unit 6, 100 Railway Road Subiaco WA
Principal place of business
Unit 6, 100 Railway Road Subiaco WA
The Company’s principal activities are mineral exploration and evaluation.
2. Significant accounting policies
Statement of compliance
The financial report is a general purpose financial report which has been prepared in accordance with
the Corporations Act 2001, Accounting Standards and Interpretations, and complies with other
requirements of the law.
The financial report includes the consolidated financial statements of the group.
Accounting Standards
include Australian Accounting Standards. Compliance with Australian
Accounting Standards ensures that the financial statements and notes of the Consolidated Group
comply with International Financial Reporting Standards (‘IFRS’). The Consolidated Group is a for-
profit entity for the purpose of preparing the financial statements.
The financial statements were authorised for issue by the directors on 22 March 2017.
Basis of preparation
The financial report has been prepared on the basis of historical cost, except for the revaluation of
certain non-current assets and financial instruments. Cost is based on the fair values of the
consideration given in exchange for assets. All amounts are presented in Australian dollars, unless
otherwise noted.
The Company is a company of the kind referred to in ASIC Class Order 98/0100, dated 10 July 1998,
and in accordance with that Class Order amounts in the financial report are rounded off to the nearest
thousand dollars, unless otherwise indicated.
Critical accounting judgments and key sources of estimation uncertainty
In the application of the Consolidated Group’s accounting policies, management is required to make
judgments, estimates and assumptions about carrying values of assets and liabilities that are not
readily apparent from other sources. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be relevant. Actual results may differ
from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision and future periods if the revision affects both
current and future periods. Refer to note 3 for a discussion of critical judgements in applying the
entity’s accounting policies, and key sources of estimation uncertainty.
Adoption of new and revised Accounting Standards
In the current period, the Consolidated Group has adopted all of the new and revised Standards and
The following Standards and Interpretations have been adopted in the current year:
AASB 14 Regulatory Deferral Accounts, AASB 2014-1 Amendments to Australian Accounting Standards (Part D
– Consequential Amendments arising from AASB 14 Regulatory Deferral Accounts)
AASB 1057 Application of Australian Accounting Standards and AASB 2015-9 Amendments to Australian
Accounting Standards – Scope and Application Paragraphs
AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements
40
39
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Notes to the accounts
1. General information
Greenland Minerals and energy limited is a public Company listed on the Australian Securities
Exchange, incorporated in Australia and operating in Greenland with its head office in Perth.
Greenland Minerals and energy limited registered office and its principal place of business are as
follows:
Registered office
Unit 6, 100 Railway Road Subiaco WA
Unit 6, 100 Railway Road Subiaco WA
Principal place of business
The Company’s principal activities are mineral exploration and evaluation.
2. Significant accounting policies
Statement of compliance
The financial report is a general purpose financial report which has been prepared in accordance with
the Corporations Act 2001, Accounting Standards and Interpretations, and complies with other
requirements of the law.
The financial report includes the consolidated financial statements of the group.
Accounting Standards
include Australian Accounting Standards. Compliance with Australian
Accounting Standards ensures that the financial statements and notes of the Consolidated Group
comply with International Financial Reporting Standards (‘IFRS’). The Consolidated Group is a for-
profit entity for the purpose of preparing the financial statements.
The financial statements were authorised for issue by the directors on 22 March 2017.
Basis of preparation
otherwise noted.
The financial report has been prepared on the basis of historical cost, except for the revaluation of
certain non-current assets and financial instruments. Cost is based on the fair values of the
consideration given in exchange for assets. All amounts are presented in Australian dollars, unless
The Company is a company of the kind referred to in ASIC Class Order 98/0100, dated 10 July 1998,
and in accordance with that Class Order amounts in the financial report are rounded off to the nearest
thousand dollars, unless otherwise indicated.
Critical accounting judgments and key sources of estimation uncertainty
In the application of the Consolidated Group’s accounting policies, management is required to make
judgments, estimates and assumptions about carrying values of assets and liabilities that are not
readily apparent from other sources. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be relevant. Actual results may differ
from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision and future periods if the revision affects both
current and future periods. Refer to note 3 for a discussion of critical judgements in applying the
entity’s accounting policies, and key sources of estimation uncertainty.
Adoption of new and revised Accounting Standards
In the current period, the Consolidated Group has adopted all of the new and revised Standards and
The following Standards and Interpretations have been adopted in the current year:
AASB 14 Regulatory Deferral Accounts, AASB 2014-1 Amendments to Australian Accounting Standards (Part D
– Consequential Amendments arising from AASB 14 Regulatory Deferral Accounts)
AASB 1057 Application of Australian Accounting Standards and AASB 2015-9 Amendments to Australian
Accounting Standards – Scope and Application Paragraphs
AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
2. Significant accounting policies (cont’d)
AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting
Standards 2012-2014 Cycle
AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101
The Consolidated entity has not elected to early adopt any new standards or amendments.
At the date of authorisation of the financial report, a number of Standards and interpretations were on
issue but not yet effective:
Standard/Interpretation
effective for
annual reporting
periods beginning
on or after
expected to be
initially applied in
the financial year
ending
AASB 9 Financial Instruments, and the relevant amending
standards 2
AASB 15 Revenue from Contracts with
Customers, AASB 2014-5 Amendments to
Australian Accounting Standards arising from
AASB 15, AASB 2015-8 Amendments to
Australian Accounting Standards – Effective Date
of AASB 15, and AASB 2016-3 Amendments to
Australian Accounting Standards – Clarifications to
AASB 153
AASB 16 Leases
AASB 2016-1 Amendments to Australian Accounting
Standards – Recognition of Deferred Tax Assets for
Unrealised Losses
AASB 2016-2 Amendments to Australian Accounting
Standards – Disclosure Initiative: Amendments to AASB 107
AASB 2016-5 Amendments to Australian Accounting
Standards – Classification and Measurement of Share-based
Payment Transactions
Annual Improvements to IFRS Standards 2014– 2016 Cycle
IFRS 1 First-time Adoption of International Financial
Reporting Standards
IFRS 12 Disclosure of Interests in Other
Entities
IAS 28 Investments in Associates and Joint
Ventures
1 January 2019
31 December 2019
1 January 2019
1 January 2019
31 December 2019
31 December 2019
1 January 2017
31 December 2017
1 January 2017
31 December 2017
1 January 2018
31 December 2018
1 January 2018
31 December 2018
1 January 2017
31 December 2017
1 January 2018
31 December 2018
IFRIC Interpretation 22: Foreign Currency Transactions and
Advance Consideration
1 January 2018
31 December 2018
The Directors note that the impact of the initial application of the Standards and Interpretations is not
yet known or is not reasonably estimable. These Standards and Interpretations will be first applied in
the financial report of the Consolidated Entity that relates to the annual reporting period beginning on
or after the effective date of each pronouncement.
39
40
4141
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
2. Significant accounting policies (cont’d)
The following significant accounting policies have been adopted in the preparation and presentation of
the financial report:
(a) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and
entities (including special purpose entities) controlled by the Company (its subsidiaries). Control
is achieved where the Company has the power to govern the financial and operating policies of
an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the
consolidated statement of comprehensive income from the effective date of acquisition and up
to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring
their accounting policies into line with those used by other members of the Consolidated Group.
All intra-group transactions, balances, income and expenses are eliminated in full on
consolidation.
Non-controlling interests in subsidiaries are identified separately from the Group’s equity
therein. The interests of non-controlling shareholders may be initially measured either at fair
value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s
identifiable net assets. The choice of measurement basis is made on an acquisition-by-
acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is
the amount of those interests at initial recognition plus the non-controlling interests’ share of
subsequent changes in equity. Total comprehensive income is attributed to non-controlling
interests even if this results in the non-controlling interests having a deficit balance.
Changes in the Consolidated Group’s interests in subsidiaries that do not result in a loss of
control are accounted for as equity transactions. The carrying amounts of the Consolidated
Group’s interests and the non-controlling interests are adjusted to reflect the changes in their
relative interests in the subsidiaries. Any difference between the amount by which the non-
controlling interests are adjusted and the fair value of the consideration paid or received is
recognised directly in equity and attributed to owners of the Company.
(b) Joint venture arrangements
Jointly controlled operations
Where the Consolidated Group is a venturer and so has joint control in a jointly controlled
operation, the Consolidated Group recognises the assets that it controls and the liabilities and
expenses that it incurs, as a party to the joint venture.
(c)
Foreign currency
The individual financial statements of each group entity are presented in its functional currency
being the currency of the primary economic environment in which the entity operates. For the
purpose of the consolidated financial statements, the results and financial position of each entity
are expressed in Australian dollars, which is the functional currency of Greenland Minerals and
Energy Limited and the presentation currency for the consolidated financial statements.
In preparing the financial statements of the individual entities, transactions in currencies other
than the entity’s functional currency are recorded at the rates of exchange prevailing on the
dates of the transactions. At each balance sheet date, monetary items denominated in foreign
currencies are retranslated at the rates prevailing at the balance sheet date. Non-monetary
items carried at fair value that are denominated in foreign currencies are retranslated at the
rates prevailing on the date when the fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences are recognised in profit or loss in the period in which they arise except for:
•
exchange differences on monetary items receivable from or payable to a foreign
operation for which settlement is neither planned or likely to occur, which form part of
the net investment in a foreign operation, and which are recognised in the foreign
currency translation reserve and recognised in profit or loss on disposal of the net
investment.
42
41
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Notes to the accounts
2. Significant accounting policies (cont’d)
the financial report:
(a) Basis of consolidation
The following significant accounting policies have been adopted in the preparation and presentation of
The consolidated financial statements incorporate the financial statements of the Company and
entities (including special purpose entities) controlled by the Company (its subsidiaries). Control
is achieved where the Company has the power to govern the financial and operating policies of
an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the
consolidated statement of comprehensive income from the effective date of acquisition and up
to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring
their accounting policies into line with those used by other members of the Consolidated Group.
All intra-group transactions, balances, income and expenses are eliminated in full on
consolidation.
Non-controlling interests in subsidiaries are identified separately from the Group’s equity
therein. The interests of non-controlling shareholders may be initially measured either at fair
value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s
identifiable net assets. The choice of measurement basis is made on an acquisition-by-
acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is
the amount of those interests at initial recognition plus the non-controlling interests’ share of
subsequent changes in equity. Total comprehensive income is attributed to non-controlling
interests even if this results in the non-controlling interests having a deficit balance.
Changes in the Consolidated Group’s interests in subsidiaries that do not result in a loss of
control are accounted for as equity transactions. The carrying amounts of the Consolidated
Group’s interests and the non-controlling interests are adjusted to reflect the changes in their
relative interests in the subsidiaries. Any difference between the amount by which the non-
controlling interests are adjusted and the fair value of the consideration paid or received is
recognised directly in equity and attributed to owners of the Company.
(b) Joint venture arrangements
Jointly controlled operations
Where the Consolidated Group is a venturer and so has joint control in a jointly controlled
operation, the Consolidated Group recognises the assets that it controls and the liabilities and
expenses that it incurs, as a party to the joint venture.
(c)
Foreign currency
The individual financial statements of each group entity are presented in its functional currency
being the currency of the primary economic environment in which the entity operates. For the
purpose of the consolidated financial statements, the results and financial position of each entity
are expressed in Australian dollars, which is the functional currency of Greenland Minerals and
Energy Limited and the presentation currency for the consolidated financial statements.
In preparing the financial statements of the individual entities, transactions in currencies other
than the entity’s functional currency are recorded at the rates of exchange prevailing on the
dates of the transactions. At each balance sheet date, monetary items denominated in foreign
currencies are retranslated at the rates prevailing at the balance sheet date. Non-monetary
items carried at fair value that are denominated in foreign currencies are retranslated at the
rates prevailing on the date when the fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences are recognised in profit or loss in the period in which they arise except for:
•
exchange differences on monetary items receivable from or payable to a foreign
operation for which settlement is neither planned or likely to occur, which form part of
the net investment in a foreign operation, and which are recognised in the foreign
currency translation reserve and recognised in profit or loss on disposal of the net
investment.
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
2. Significant accounting policies (cont’d)
On consolidation, the assets and liabilities of the Consolidated Group’s foreign operations are
translated into Australian dollars at exchange rates prevailing on the balance sheet date.
Income and expense items are translated at the average exchange rates for the period, unless
exchange rates fluctuated significantly during that period, in which case the exchange rates at
the dates of the transactions are used. Exchange differences arising, if any, are classified as
equity and transferred to the Consolidated Group’s foreign currency translation reserve. Such
exchange differences are recognised in profit or loss in the period in which the foreign operation
is disposed.
(d) Goods and services tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax
(GST), except:
i.
where the amount of GST incurred is not recoverable from the taxation authority, it is
recognised as part of the cost of acquisition of an asset or as part of an item of expense;
or
for receivables and payables which are recognised inclusive of GST.
ii.
The net amount of GST recoverable from, or payable to, the taxation authority is included as
part of receivables or payables.
Cash flows are included in the cash flow statement on a gross basis. The GST component of
cash flows arising from investing and financing activities which is recoverable from, or payable
to, the taxation authority is classified within operating cash flows.
(e) Revenue
Revenue is measured at the fair value of the consideration when received or receivable.
Interest revenue
Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the
effective interest rate applicable, which is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to that asset’s net carrying amount.
Rental income
Revenue from operating sub-leases is recognised in accordance with the Consolidated Group’s
accounting policy.
(f) Share-based payments
Equity-settled share-based payments with employees and others providing similar services are
measured at the fair value of the equity instrument at the grant date. Fair value is measured by
use of an appropriate valuation method. The expected life used in the model has been adjusted,
based on management’s best estimate, for the effects of non-transferability, exercise
restrictions, and behavioural considerations. Further details on how the fair value of equity-
settled share-based transactions are in note 24.
The fair value determined at the grant date of the equity-settled share-based payments is
expensed on a straight-line basis over the vesting period, based on the Consolidated Group’s
estimate of equity instruments that will eventually vest.
At each reporting date, the Consolidated Group revises its estimate of the number of equity
instruments expected to vest. The impact of the revision of the original estimates, if any, is
recognised in profit or loss over the remaining vesting period, with corresponding adjustment to
the equity-settled employee benefits reserve.
Equity-settled share-based payment transactions with other parties are measured at the fair
value of the goods and services received, except where the fair value cannot be estimated
reliably, in which case they are measured at the fair value of the equity instruments granted,
measured at the date the entity obtains the goods or the counterparty renders the service.
(g)
Income tax
Current tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in
respect of the taxable profit or tax loss for the period. It is calculated using tax rates and tax laws
41
42
4343
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
2. Significant accounting policies (cont’d)
that have been enacted or substantively enacted by reporting date. Current tax for current and
prior periods is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).
Deferred tax
Deferred tax is accounted for using the balance sheet liability method. Temporary differences
are differences between the tax base of an asset or liability and its carrying amount in the
balance sheet. The tax base of an asset or liability is the amount attributed to that asset or
liability for tax purposes.
In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred
tax assets are recognised to the extent that it is probable that sufficient taxable amounts will be
available against which deductible temporary differences or unused tax losses and tax offsets
can be utilised. However, deferred tax assets and liabilities are not recognised if the temporary
differences giving rise to them arise from the initial recognition of assets and liabilities (other
than as a result of a business combination) which affects neither taxable income nor accounting
profit. Furthermore, a deferred tax liability is not recognised in relation to taxable temporary
differences arising from the initial recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary differences associated with
investments in subsidiaries and interests in joint ventures except where the Consolidated Group
is able to control the reversal of the temporary differences and it is probable that the temporary
differences will not reverse in the foreseeable future. Deferred tax assets arising from deductible
temporary differences associated with these investments and interests are only recognised to
the extent that it is probable that there will be sufficient taxable profits against which to utilise the
benefits of the temporary differences and they are expected to reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the
period(s) when the asset and liability giving rise to them are realised or settled, based on tax
rates (and tax laws) that have been enacted or substantively enacted by reporting date. The
measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the Consolidated Group expects, at the reporting date, to
recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the
same taxation authority and the Company/Consolidated Group intends to settle its current tax
assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax is recognised in profit or loss, except when it relates to items credited
or debited directly to equity, in which case the deferred tax is also recognised directly in equity,
or where it arises from the initial accounting for a business combination, in which case it is taken
into account in the determination of goodwill or excess.
(h) Cash and cash equivalents
Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly
liquid investments that are readily convertible to known amounts of cash, which are subject to
an insignificant risk of changes in value and have a maturity of three months or less at the date
of acquisition.
(i)
Financial assets
Financial assets are recognised and derecognised on trade date where the purchase or sale of
a financial asset is under a contract whose terms require delivery of the financial asset within
the timeframe established by the market concerned, and are initially measured at fair value, net
of transaction costs except for those financial assets classified as at fair value through profit or
loss which are initially measured at fair value.
Financial assets are classified into the following specified categories: ‘Financial assets at fair
value through profit and loss (FVTPL)’, ‘available-for-sale’ financial assets, and ‘loans and
receivables’. The classification depends on the nature and purpose of the financial assets and is
determined at the time of initial recognition.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial asset
and of allocating interest income over the relevant period. The effective interest rate is the rate
44
43
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Notes to the accounts
2. Significant accounting policies (cont’d)
Notes to the accounts
2. Significant accounting policies (cont’d)
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
that have been enacted or substantively enacted by reporting date. Current tax for current and
prior periods is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).
Deferred tax
Deferred tax is accounted for using the balance sheet liability method. Temporary differences
are differences between the tax base of an asset or liability and its carrying amount in the
balance sheet. The tax base of an asset or liability is the amount attributed to that asset or
liability for tax purposes.
In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred
tax assets are recognised to the extent that it is probable that sufficient taxable amounts will be
available against which deductible temporary differences or unused tax losses and tax offsets
can be utilised. However, deferred tax assets and liabilities are not recognised if the temporary
differences giving rise to them arise from the initial recognition of assets and liabilities (other
than as a result of a business combination) which affects neither taxable income nor accounting
profit. Furthermore, a deferred tax liability is not recognised in relation to taxable temporary
differences arising from the initial recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary differences associated with
investments in subsidiaries and interests in joint ventures except where the Consolidated Group
is able to control the reversal of the temporary differences and it is probable that the temporary
differences will not reverse in the foreseeable future. Deferred tax assets arising from deductible
temporary differences associated with these investments and interests are only recognised to
the extent that it is probable that there will be sufficient taxable profits against which to utilise the
benefits of the temporary differences and they are expected to reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the
period(s) when the asset and liability giving rise to them are realised or settled, based on tax
rates (and tax laws) that have been enacted or substantively enacted by reporting date. The
measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the Consolidated Group expects, at the reporting date, to
recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the
same taxation authority and the Company/Consolidated Group intends to settle its current tax
assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax is recognised in profit or loss, except when it relates to items credited
or debited directly to equity, in which case the deferred tax is also recognised directly in equity,
or where it arises from the initial accounting for a business combination, in which case it is taken
into account in the determination of goodwill or excess.
(h) Cash and cash equivalents
Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly
liquid investments that are readily convertible to known amounts of cash, which are subject to
an insignificant risk of changes in value and have a maturity of three months or less at the date
of acquisition.
(i)
Financial assets
Financial assets are recognised and derecognised on trade date where the purchase or sale of
a financial asset is under a contract whose terms require delivery of the financial asset within
the timeframe established by the market concerned, and are initially measured at fair value, net
of transaction costs except for those financial assets classified as at fair value through profit or
loss which are initially measured at fair value.
Financial assets are classified into the following specified categories: ‘Financial assets at fair
value through profit and loss (FVTPL)’, ‘available-for-sale’ financial assets, and ‘loans and
receivables’. The classification depends on the nature and purpose of the financial assets and is
determined at the time of initial recognition.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial asset
and of allocating interest income over the relevant period. The effective interest rate is the rate
that exactly discounts estimated future cash receipts (including all fees on points paid or
received that form an integral part of the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the financial asset, or, where appropriate, a
shorter period.
Income is recognised on an effective interest rate basis for debt instruments other than those
financial assets ‘at fair value through profit or loss’.
Financial assets at fair value through profit or loss
Financial assets are classified as financial assets at fair value through profit or loss where the
financial asset:
•
•
has been acquired principally for the purpose of selling in the near future;
is a part of an identified portfolio of financial instruments that the Consolidated Group
manages together and has a recent actual pattern of short-term profit-taking; or
is a derivative that is not designated and effective as a hedging instrument.
•
Financial assets at fair value through profit or loss are stated at fair value, with any resultant
gain or loss recognised in profit or loss. The net gain or loss recognised in profit or loss
incorporates any dividend or interest earned on the financial asset. Fair value is determined in
the manner described in note 10.
Loans and receivables
Trade receivables, loans, and other receivables that have fixed or determinable payments that
are not quoted in an active market are classified as ‘loans and receivables’. Loans and
receivables are measured at amortised cost using the effective interest method less impairment.
Interest income is recognised by applying the effective interest rate.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date. Financial
assets are impaired where 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 impacted.
For financial assets carried at amortised cost, the amount of the impairment is the difference
between the asset’s carrying amount and the present value of estimated future cash flows,
discounted at the original effective interest rate.
The carrying amount of financial assets including uncollectible trade receivables is reduced by
the impairment loss through the use of an 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.
With the exception of available-for-sale equity instruments, 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 the carrying amount of the receivable at the date
the impairment is reversed does not exceed what the amortised cost would have been had the
impairment not been recognised.
In respect of available-for-sale equity instruments, any subsequent increase in fair value after an
impairment loss is recognised directly in equity.
Derecognition of financial assets
The Consolidated Group de-recognises a financial asset only when the contractual rights to the
cash flows from the asset expire, or it transfers the financial asset and substantially all the risks
and rewards of ownership of the asset to another entity. If the Consolidated Group neither
transfers nor retains substantially all the risks and rewards of ownership and continues to control
the transferred asset, the Consolidated Group recognises its retained interest in the asset and
an associated liability for amounts it may have to pay. If the Consolidated Group retains
substantially all the risks and rewards of ownership of a transferred financial asset, the
Consolidated Group continues to recognise the financial asset and also recognises a
collateralised borrowing for the proceeds received.
43
44
4545
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
2. Significant accounting policies (cont’d)
(j)
(k)
(l)
Property, plant and equipment
Plant and equipment and leasehold improvements are stated at cost less accumulated
depreciation and impairment. Cost includes expenditure that is directly attributable to the
acquisition of the item. In the event that settlement of all or part of the purchase consideration is
deferred, cost is determined by discounting the amounts payable in the future to their present
value as at the date of acquisition.
Depreciation on plant and equipment is calculated on a diminishing value basis so as to write off
the net cost or other devalued amount of each asset over its expected useful life to its estimated
residual value. Leasehold improvements are depreciated over the period of the lease or
estimated useful life, whichever is the shorter, using the diminishing value method. The
estimated useful lives, residual values and depreciation method are reviewed at the end of each
annual reporting period, with the effect of any changes recognised on a prospective basis.
Assets held under finance leases are depreciated over their expected useful lives on the same
basis as owned assets or, where shorter, the term of the relevant lease.
The gain or loss arising on disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sales proceeds and the carrying amount of the asset
and is recognised in profit or loss.
The following useful lives are used in the calculation of depreciation:
Leasehold improvements
Plant and equipment
Buildings
10 – 15 years
4 – 10 years
20 years
Leased assets
Leases are classified as finance leases when the terms of the lease transfer substantially all the
risks and rewards incidental to ownership of the leased asset to the lessee. All other leases are
classified as operating leases.
Group as lessor
Rental income from operating leases is recognised on a straight-line basis over the term of the
relevant lease. However, contingent rentals arising under operating leases are recognised as
income in a manner consistent with the basis on which they are determined.
Initial direct costs incurred in negotiating and arranging an operating lease are added to the
carrying amount of the leased asset and recognised on a straight-line basis over the lease term.
employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries,
annual leave, long service leave, and sick leave when it is probable that settlement will be
required and they are capable of being measured reliably.
Liabilities recognised in respect of short-term employee benefits, are measured at their nominal
values using the remuneration rate expected to apply at the time of settlement.
Liabilities recognised in respect of long-term employee benefits, are measured as the present
value of the estimated future cash outflows to be made by the Consolidated Group in respect of
services provided by employees up to reporting date.
(m) Financial instruments issued by the Consolidated Group
Debt and equity instruments
Debt and equity instruments are classified as either liabilities or as equity in accordance with the
substance of the contractual arrangement. An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments
issued by the Consolidated Group are recorded at the proceeds received, net of direct issue
costs.
Financial liabilities
Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’
or other financial liabilities.
46
45
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
2. Significant accounting policies (cont’d)
(j)
Property, plant and equipment
Plant and equipment and leasehold improvements are stated at cost less accumulated
depreciation and impairment. Cost includes expenditure that is directly attributable to the
acquisition of the item. In the event that settlement of all or part of the purchase consideration is
deferred, cost is determined by discounting the amounts payable in the future to their present
value as at the date of acquisition.
Depreciation on plant and equipment is calculated on a diminishing value basis so as to write off
the net cost or other devalued amount of each asset over its expected useful life to its estimated
residual value. Leasehold improvements are depreciated over the period of the lease or
estimated useful life, whichever is the shorter, using the diminishing value method. The
estimated useful lives, residual values and depreciation method are reviewed at the end of each
annual reporting period, with the effect of any changes recognised on a prospective basis.
Assets held under finance leases are depreciated over their expected useful lives on the same
basis as owned assets or, where shorter, the term of the relevant lease.
The gain or loss arising on disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sales proceeds and the carrying amount of the asset
and is recognised in profit or loss.
The following useful lives are used in the calculation of depreciation:
Leasehold improvements
Plant and equipment
Buildings
10 – 15 years
4 – 10 years
20 years
(k)
Leased assets
Leases are classified as finance leases when the terms of the lease transfer substantially all the
risks and rewards incidental to ownership of the leased asset to the lessee. All other leases are
classified as operating leases.
Group as lessor
Rental income from operating leases is recognised on a straight-line basis over the term of the
relevant lease. However, contingent rentals arising under operating leases are recognised as
income in a manner consistent with the basis on which they are determined.
Initial direct costs incurred in negotiating and arranging an operating lease are added to the
carrying amount of the leased asset and recognised on a straight-line basis over the lease term.
(l)
employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries,
annual leave, long service leave, and sick leave when it is probable that settlement will be
required and they are capable of being measured reliably.
Liabilities recognised in respect of short-term employee benefits, are measured at their nominal
values using the remuneration rate expected to apply at the time of settlement.
Liabilities recognised in respect of long-term employee benefits, are measured as the present
value of the estimated future cash outflows to be made by the Consolidated Group in respect of
services provided by employees up to reporting date.
(m) Financial instruments issued by the Consolidated Group
Debt and equity instruments
Debt and equity instruments are classified as either liabilities or as equity in accordance with the
substance of the contractual arrangement. An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments
issued by the Consolidated Group are recorded at the proceeds received, net of direct issue
costs.
Financial liabilities
or other financial liabilities.
Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’
Notes to the accounts
2. Significant accounting policies (cont’d)
(n)
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of
transaction costs.
Other financial liabilities are subsequently measured at amortised cost using the effective
interest method, with interest expense recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant period. The effective interest rate is the rate
that exactly discounts estimated future cash payments through the expected life of the financial
liability, or, where appropriate, a shorter period.
Impairment of long-lived assets excluding goodwill
At each reporting date, the Consolidated Group reviews the carrying amounts of its assets to
determine whether there is any indication that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss (if any). Where the asset does not generate cash
flows that are independent from other assets, the Consolidated Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs. Where a reasonable and
consistent basis of allocation can be identified, corporate assets are also allocated to individual
cash-generating units, or otherwise they are allocated to the smallest group of cash-generating
units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognised immediately in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-
generating unit) is increased to the revised estimate of its recoverable amount, but only to the
extent that the increased carrying amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognised for the asset (cash-generating unit)
in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
(o) Capitalisation of exploration and evaluation expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are
recognised as an exploration and evaluation asset in the year in which they are incurred where
the following conditions are satisfied:
(i) the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
(a)
(b)
the exploration and evaluation expenditures are expected to be recouped through
successful development and exploration of the area of interest, or alternatively, by its
sale; or
exploration and evaluation activities in the area of interest have not, at the reporting
date, reached a stage which permits a reasonable assessment of the existence or
otherwise of economically recoverable reserves, and active and significant operations
in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights
to explore, studies, exploratory drilling, trenching and sampling and associated activities and an
allocation of depreciation and amortisation of assets used in exploration and evaluation
activities. General and administrative costs are only included in the measurement of exploration
and evaluation costs where they are related directly to operational activities in a particular area
of interest.
45
46
4747
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
2. Significant accounting policies (cont’d)
Exploration and evaluation assets are assessed for impairment when facts and circumstances
suggest that the carrying amount of an exploration and evaluation asset may exceed its
recoverable amount. The recoverable amount of the exploration and evaluation asset (or the
cash-generating unit(s) to which it has been allocated, being no larger than the relevant area of
interest) is estimated to determine the extent of the impairment loss (if any). Where an
impairment loss subsequently reverses, the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, but only to the extent that the increased carrying
amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset in previous years.
Where a decision is made to proceed with development in respect of a particular area of
interest, the relevant exploration and evaluation asset is tested for impairment and the balance
is then reclassified to development.
(p) Provisions
Provisions are recognised when the Consolidated Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that the Consolidated Group will be
required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at reporting date, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured using the cashflows estimated to
settle the present obligation, its carrying amount is the present value of those cashflows.
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, the receivable is recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
3: Critical accounting estimates and judgments
In preparing this Financial Report the Consolidated Group has been required to make certain
estimates and assumptions concerning future occurrences. There is an inherent risk that the resulting
accounting estimates will not equate exactly with actual events and results.
a)
Significant accounting judgments
In the process of applying the Consolidated Group's accounting policies, management has
made the following judgments, apart from those involving estimations, which have the most
significant effect on the amounts recognised in the financial statements:
Carrying value of exploration and evaluation expenditure
The Consolidated Group has capitalised significant exploration and evaluation expenditure on
the basis either that this is expected to be recouped through future successful development or
alternatively sale of the Areas of Interest. If ultimately the area of interest is abandoned or is
not successfully commercialised, the carrying value of the capitalised exploration and
evaluation expenditure would be written down to its recoverable amount.
Deferred tax assets
The Consolidated Group expects to have carried forward tax losses which have not been
recognised as deferred tax assets as it is not considered sufficiently probable at this point in
time, that these losses will be recouped by means of future profits taxable in the relevant
jurisdictions.
48
47
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Notes to the accounts
2. Significant accounting policies (cont’d)
Notes to the accounts
3: Critical accounting estimates and judgments
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Exploration and evaluation assets are assessed for impairment when facts and circumstances
suggest that the carrying amount of an exploration and evaluation asset may exceed its
recoverable amount. The recoverable amount of the exploration and evaluation asset (or the
cash-generating unit(s) to which it has been allocated, being no larger than the relevant area of
interest) is estimated to determine the extent of the impairment loss (if any). Where an
impairment loss subsequently reverses, the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, but only to the extent that the increased carrying
amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset in previous years.
Where a decision is made to proceed with development in respect of a particular area of
interest, the relevant exploration and evaluation asset is tested for impairment and the balance
is then reclassified to development.
(p) Provisions
obligation.
Provisions are recognised when the Consolidated Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that the Consolidated Group will be
required to settle the obligation, and a reliable estimate can be made of the amount of the
The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at reporting date, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured using the cashflows estimated to
settle the present obligation, its carrying amount is the present value of those cashflows.
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, the receivable is recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
3: Critical accounting estimates and judgments
a)
Significant accounting judgments
In the process of applying the Consolidated Group's accounting policies, management has
made the following judgments, apart from those involving estimations, which have the most
significant effect on the amounts recognised in the financial statements:
Carrying value of exploration and evaluation expenditure
The Consolidated Group has capitalised significant exploration and evaluation expenditure on
the basis either that this is expected to be recouped through future successful development or
alternatively sale of the Areas of Interest. If ultimately the area of interest is abandoned or is
not successfully commercialised, the carrying value of the capitalised exploration and
evaluation expenditure would be written down to its recoverable amount.
Deferred tax assets
jurisdictions.
The Consolidated Group expects to have carried forward tax losses which have not been
recognised as deferred tax assets as it is not considered sufficiently probable at this point in
time, that these losses will be recouped by means of future profits taxable in the relevant
b)
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates
and assumptions of future events. The key estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts of certain assets and liabilities
within the next annual reporting period are:
Carrying value of capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on
a number of factors, including whether the Consolidated Group decides to exploit the related
lease itself or, if not, whether it successfully recovers the related exploration and evaluation
asset through sale.
Factors that could impact the future recoverability include the level of reserves and resources,
future technological changes, costs of drilling and production, production rates, future legal and
political changes, (including obtaining the right to mine and changes to environmental
restoration obligations) and changes to commodity prices.
As at 31 December 2016, the carrying value of capitalised exploration expenditure is
$71,925,784 (2015: $71,814,756) refer to note 12.
4: Segment information
AASB8 Operating Segments requires operating segments to be identified on the basis of internal
reports about components of the entity that are regularly reviewed by the managing director (chief
operating decision maker) in order to allocate resources to the segment and assess performance.
The Consolidated Group undertakes mineral exploration and evaluation in Greenland.
Given the Consolidated Group has one reporting segment, operating results and financial information
are not separately disclosed in this note.
In preparing this Financial Report the Consolidated Group has been required to make certain
estimates and assumptions concerning future occurrences. There is an inherent risk that the resulting
accounting estimates will not equate exactly with actual events and results.
5: Revenue
Interest - Bank deposits
Other revenue
6: expenditure
(a) Director and employee benefits
Directors’ fees
Directors’ and employee salary and wage expense
Directors’ and employee post-employment benefits
31 Dec
2016
$' 000
31 Dec
2015
$' 000
34
49
83
82
112
194
31 Dec
2016
$' 000
31 Dec
2015
$' 000
(171)
(626)
(64)
(861)
(251)
(743)
(68)
(1,062)
47
48
4949
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
notes to the accounts
6: expenditure (cont’d)
(b) Professional fees:
Audit, accounting and taxation expense
Legal fess
Marketing and public relations
Consulting
(c) Occupancy expense:
Rent
Electricity
(d) Listing costs:
Stock exchange fees
Share registry fees
(e) Royalty acquisition costs (i)
(f)
Impairment of capitalised exploration and evaluation
expenditure (ii)
(g) Other expenses
Loss on disposal of investments
Loss on foreign currency exchange
Depreciation expense
Insurance
Operating lease rental expenses
Travel expenses
Payroll tax
Printing, stationery and office costs
Telephone
Other expenses
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
31 Dec
2016
$' 000
31 Dec
2015
$' 000
(125)
(48)
(84)
(86)
(343)
(278)
(14)
(292)
(74)
(60)
(134)
-
-
(23)
(1)
(123)
(53)
(5)
(61)
(45)
(13)
(38)
(264)
(626)
(162)
(129)
(52)
(154)
(497)
(297)
(25)
(322)
(65)
(73)
(138)
(847)
(594)
-
(13)
(153)
(67)
(5)
(84)
(73)
(32)
(46)
(352)
(825)
(i)
In March 2015 The Company finalised the acquisition of a remaining 2% royalty over future
production from the Kvanefjeld project, through the issue of 13,690,000 shares and
13,690,000 GGGOA options. Any future payments under the royalty would have been a
liability to the Consolidated Group and recognised as an expense in the relevant future
period.
50
49
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
31 Dec
2016
$' 000
31 Dec
2015
$' 000
(b) Professional fees:
Audit, accounting and taxation expense
Marketing and public relations
Legal fess
Consulting
Rent
Electricity
(c) Occupancy expense:
(d) Listing costs:
Stock exchange fees
Share registry fees
(e) Royalty acquisition costs (i)
(f)
Impairment of capitalised exploration and evaluation
expenditure (ii)
(g) Other expenses
Loss on disposal of investments
Loss on foreign currency exchange
Depreciation expense
Insurance
Operating lease rental expenses
Travel expenses
Payroll tax
Telephone
Other expenses
Printing, stationery and office costs
(125)
(48)
(84)
(86)
(343)
(278)
(14)
(292)
(74)
(60)
(134)
-
-
(23)
(1)
(123)
(53)
(5)
(61)
(45)
(13)
(38)
(264)
(626)
(i)
In March 2015 The Company finalised the acquisition of a remaining 2% royalty over future
production from the Kvanefjeld project, through the issue of 13,690,000 shares and
13,690,000 GGGOA options. Any future payments under the royalty would have been a
liability to the Consolidated Group and recognised as an expense in the relevant future
period.
(162)
(129)
(52)
(154)
(497)
(297)
(25)
(322)
(65)
(73)
(138)
(847)
(594)
-
(13)
(153)
(67)
(5)
(84)
(73)
(32)
(46)
(352)
(825)
49
notes to the accounts
6: expenditure (cont’d)
notes to the accounts
6: expenditure (cont’d)
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
The acquisition of the royalty has reduced the future potential costs to the Consolidated
Group and therefore the acquisition consideration as been recognised as an expense in the
current year.
(ii)
Refer to note 12 for more information.
7: Income tax
(a) Tax expense
Current tax
Deferred tax
b) The prima facie income tax benefit on pre-tax accounting
loss from operations reconciles to the income tax expenses
in the financial statements as follows:
Loss for period
Prima facie tax benefit on loss at 30%
add:
Tax effect of:
other non-allowable items
provisions and accruals
accrued income
revenue loss not recognised
Less:
Tax effect of:
exploration, evaluation and development expenditure
provisions and accruals
capital expenditure write off
other deductions
Income tax expense
The following deferred tax balances have not been
recognised:
Deferred tax assets:
at 30%
Carry forward revenue losses
Capital expenditure costs
Less: offset against deferred tax liability
31 Dec
2016
$' 000
31 Dec
2015
$' 000
-
-
-
-
-
-
-
-
(2,173)
(652)
(4,091)
(1,227)
53
192
6
1,234
1,485
(581)
(122)
(122)
(8)
(833)
-
480
129
7
2,525
3,141
(1,625)
(132)
(155)
(2)
(1,914)
-
32,859
911
33,770
(15,751)
31,625
980
32,605
(15,176)
18,019
17,429
50
5151
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
notes to the accounts
7: Income tax (cont’d)
The above deferred tax assets will only be recognised when and if:
(i)
(ii)
(iii)
The Consolidated Group derives future assessable income of a nature and amount sufficient
to enable the benefits to be utilised,
The Consolidated Group continues to comply with the conditions of deductibility imposed by
law, and
No change in income tax legislation adversely affects the Consolidated Group’s ability to
utilise the benefits.
Deferred tax liabilities:
at 30%
Exploration, evaluation and development expenditure
Accrued income
less offset against deferred tax assets
8: Cash and equivalents
Cash at bank
Cash on deposit at call
Cash on deposit
31 Dec
2016
$' 000
31 Dec
2015
$' 000
15,750
1
15,751
(15,751)
-
15,169
7
15,176
(15,176)
-
Dec
2016
$' 000
dec
2015
$' 000
4,754
1,200
424
6,378
225
2,059
422
2,706
The Consolidated Group’s financial risk management objectives and policies are discussed further at
note 25.
9: trade and other receivables
(a) Current
Debtors
Accrued interest
GST refundable
Dec
2016
$' 000
Dec
2015
$' 000
9
2
20
31
5
6
32
43
(i) Trade debtors and sundry debtors are non-interest bearing, unsecured and generally on 30
day terms. As at 31 December 2016 and 31 December 2015 no amounts were past due but
not impaired. Additionally there was no allowance for doubtful debts at either 31 December
2016 or 31 December 2015.
52
51
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
notes to the accounts
7: Income tax (cont’d)
law, and
utilise the benefits.
The above deferred tax assets will only be recognised when and if:
(i)
The Consolidated Group derives future assessable income of a nature and amount sufficient
to enable the benefits to be utilised,
(ii)
The Consolidated Group continues to comply with the conditions of deductibility imposed by
(iii)
No change in income tax legislation adversely affects the Consolidated Group’s ability to
Exploration, evaluation and development expenditure
15,750
15,169
Deferred tax liabilities:
at 30%
Accrued income
less offset against deferred tax assets
8: Cash and equivalents
Cash at bank
Cash on deposit at call
Cash on deposit
note 25.
9: trade and other receivables
(a) Current
Debtors
Accrued interest
GST refundable
The Consolidated Group’s financial risk management objectives and policies are discussed further at
(i) Trade debtors and sundry debtors are non-interest bearing, unsecured and generally on 30
day terms. As at 31 December 2016 and 31 December 2015 no amounts were past due but
not impaired. Additionally there was no allowance for doubtful debts at either 31 December
2016 or 31 December 2015.
31 Dec
2016
$' 000
31 Dec
2015
$' 000
15,751
(15,751)
1
-
15,176
(15,176)
7
-
Dec
2016
$' 000
dec
2015
$' 000
4,754
1,200
424
6,378
225
2,059
422
2,706
Dec
2016
$' 000
Dec
2015
$' 000
9
2
20
31
5
6
32
43
51
notes to the accounts
10: Other assets
(a) Current
Deposit bonds
Prepayments
Funds held in trust
(b) Non-current
Prepayments
Investments held for re-sale
11: Property, plant and equipment
Plant and Equipment (cost)
Accumulated depreciation
Leasehold improvements (cost)
Accumulated depreciation
Buildings
Accumulated depreciation
Dec
2016
$' 000
Dec
2015
$' 000
2
629
40
671
-
41
41
78
509
587
144
41
185
Dec
2016
$' 000
Dec
2015
$' 000
1,400
(1,039)
1,568
(1,104)
41
(18)
854
(234)
1,004
41
(16)
872
(195)
1,166
(a) Movements in the carrying amounts
Movement in the carrying values for each class of property, plant and equipment between the
beginning and the end of the period.
Plant and equipment
Carrying value at beginning of year
Acquisitions
Disposals
Effects of currency translation
Depreciation expense
Carrying value at end of year
Dec
2016
$' 000
Dec
2015
$' 000
464
-
(23)
(1)
(79)
361
564
8
-
-
(108)
464
52
5353
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
notes to the accounts
11: Property, plant and equipment (cont’d)
Leasehold improvements
Carrying value at beginning of year
Depreciation expense
Carrying value at end of year
Buildings
Carrying value at the beginning of year
Effects of currency translation
Depreciation
Carrying value at end of year
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Dec
2016
$' 000
Dec
2015
$' 000
25
(2)
23
677
(15)
(42)
620
28
(3)
25
719
-
(42)
677
Total property, plant and equipment carrying value at end of
period
1,004
1,166
12: Capitalised exploration and evaluation expenditure
Balance at beginning of year
Exploration and/or evaluation phase in
current period:
Capitalised expenses
Effects of currency translation (i)
Less:
Research and development tax offset received
Impairment of capitalised expenditure (ii)
Effects of currency translation (i)
Balance at end of year
Dec
2016
$' 000
Dec
2015
$' 000
71,815
68,031
1,938
-
73,753
(521)
-
(1,307)
71,925
5,416
37
73,484
(1,075)
(594)
-
71,815
(i)
(ii)
The Kvanefjeld Project EL 2010/02 is held by Greenland Minerals and Energy (Trading) A/S,
the 100% owned Greenlandic subsidiary. As a result all capitalised exploration and
evaluation expenditure has been recognised in the Greenlandic subsidiary and at reporting
date has been translated at the closing Australian dollar/Danish kroner exchange rate with the
movement being recognised in the foreign currency translation reserve.
During the year ended 31 December 2015, the Company relinquished EL 2013/05 and
allowed EL 2011/26 and EL 2011/27 to lapse, following a decision not to carry out any further
exploration activity on these license areas. This decision does not affect or impede the
potential development of EL 2010/02. The impairment represents the value of costs for these
licences that were capitalised in prior years.
54
53
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
notes to the accounts
11: Property, plant and equipment (cont’d)
Notes to the accounts
12: Capitalised exploration and evaluation expenditure (cont’d)
Total property, plant and equipment carrying value at end of
period
1,004
1,166
Leasehold improvements
Carrying value at beginning of year
Depreciation expense
Carrying value at end of year
Buildings
Carrying value at the beginning of year
Effects of currency translation
Depreciation
Carrying value at end of year
12: Capitalised exploration and evaluation expenditure
Balance at beginning of year
Exploration and/or evaluation phase in
current period:
Capitalised expenses
Effects of currency translation (i)
Less:
Research and development tax offset received
Impairment of capitalised expenditure (ii)
Effects of currency translation (i)
Balance at end of year
Dec
2016
$' 000
Dec
2015
$' 000
25
(2)
23
677
(15)
(42)
620
28
(3)
25
719
-
(42)
677
Dec
2016
$' 000
Dec
2015
$' 000
71,815
68,031
1,938
73,753
(521)
-
-
(1,307)
71,925
5,416
37
73,484
(1,075)
(594)
-
71,815
(i)
The Kvanefjeld Project EL 2010/02 is held by Greenland Minerals and Energy (Trading) A/S,
the 100% owned Greenlandic subsidiary. As a result all capitalised exploration and
evaluation expenditure has been recognised in the Greenlandic subsidiary and at reporting
date has been translated at the closing Australian dollar/Danish kroner exchange rate with the
movement being recognised in the foreign currency translation reserve.
(ii)
During the year ended 31 December 2015, the Company relinquished EL 2013/05 and
allowed EL 2011/26 and EL 2011/27 to lapse, following a decision not to carry out any further
exploration activity on these license areas. This decision does not affect or impede the
potential development of EL 2010/02. The impairment represents the value of costs for these
licences that were capitalised in prior years.
(iii)
(iv)
The recoverability of the Consolidated Group’s carrying value of the capitalised exploration
and evaluation expenditure relating to EL 2010/02 is subject to the successful development
and exploitation of the exploration property. The Consolidated Group has completed a
feasibility study and environmental and social impact studies. These studies have been
submitted to the relevant Greenland authorities, as a commencement of the process for an
application for the right to mine.
The Consolidated Group has a positive outlook regarding its ability to successfully develop
the project, as a multi element project. The Consolidated Group will continue to work with the
Greenland Government and other stakeholders to progress the mining license application,
with the view of moving to development. This will be done in a manner that is in accordance
with both Greenland Government and local community expectations.
13: trade and other payables
Accrued expenses (i)
Trade creditors (ii)
Sundry creditors (ii)
Dec
2016
$' 000
Dec
2015
$' 000
515
91
172
778
299
539
149
987
(i)
(ii)
(iii)
Accrued expenses related to services and goods provided to the Consolidated Group prior to
the period end, but the Consolidated Group was not charged or invoiced for these goods and
services by the supplier at period end. The amounts are generally payable and paid within 30
days and are non-interest bearing.
Trade and sundry creditors are non-interest bearing with the exception of amounts owed on
corporate credit cards and after 30 days interest is charged at rates ranging between 15%
and 18%. All trade and sundry creditors are generally payable on terms of 30 days.
The financial risk related to trade and other payables is managed by ensuring sufficient at call
cash balances are maintained by the Consolidated Group to enable the settlement in full of all
amounts as and when they become due for payment.
14: Other liabilities
EURARE grant advanced payment (i)
Dec
2016
$' 000
Dec
2015
$' 000
74
74
-
-
(i) Greenland Minerals and Energy (Trading) A/S is a participant in the EURARE Project, a
European Union initiated project to assess the development and exploitation of Europe’s rare
earth deposits. As a participant in the EURARE Project Greenland Minerals and Energy
(Trading) A/S has received an advanced grant payment, which is to be applied against approved
EURARE Project expenses.
53
54
5555
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Notes to the accounts
15: Provisions
(a) Current
Provision for annual leave
(b) Non-current
Provision for long service leave
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Dec
2016
$' 000
Dec
2015
$' 000
256
256
107
107
249
249
97
97
16: Issued capital
Changes to the then Corporations Law abolished the authorised capital and par value concept in
relation to share capital from 1 July 1998. Therefore, the Consolidated Group does not have a limited
amount of authorised capital and issued shares do not have a par value.
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Balance brought forward
Issue of ordinary shares through
renounceable rights issue
Issue of ordinary shares through capital
raising
Issue of ordinary shares as consideration
for rights issue/capital raising costs
Issue of ordinary shares – Long State
facility
Issue of ordinary shares to Le Shan
Shenghe
Issue of ordinary shares as consideration
for share based payments – Long State
facility
Issue of ordinary shares as consideration
for share based payments – royalty
acquisition
Issue of ordinary shares as consideration
for share based payments – other
Issue of ordinary shares as a result of
exercised options:
$0.20 exercise price options
$0.08 exercise price options
Less costs associated with shares issued
Balance at end of financial year
Dec 2016
Dec 2015
No
' 000
787,709
$' 000
348,361
No
' 000
669,390
$' 000
344,349
-
-
82,308
2,795
81,967
2,459
4,367
-
131
-
125,000
4,625
-
-
-
-
45
36
-
999,124
11
3
(880)
354,710
3,417
12,465
205
950
5,020
408
13,690
1,400
16
3
-
787,709
780
96
4
-
(1,226)
348,361
55
56
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Notes to the accounts
15: Provisions
(a) Current
Provision for annual leave
(b) Non-current
Provision for long service leave
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Dec
2016
$' 000
Dec
2015
$' 000
256
256
107
107
249
249
97
97
16: Issued capital
Changes to the then Corporations Law abolished the authorised capital and par value concept in
relation to share capital from 1 July 1998. Therefore, the Consolidated Group does not have a limited
amount of authorised capital and issued shares do not have a par value.
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Balance brought forward
Issue of ordinary shares through
renounceable rights issue
Issue of ordinary shares through capital
raising
facility
Shenghe
facility
Issue of ordinary shares as consideration
for rights issue/capital raising costs
Issue of ordinary shares – Long State
Issue of ordinary shares to Le Shan
Issue of ordinary shares as consideration
for share based payments – Long State
Issue of ordinary shares as consideration
for share based payments – royalty
acquisition
Issue of ordinary shares as consideration
for share based payments – other
Issue of ordinary shares as a result of
exercised options:
$0.20 exercise price options
$0.08 exercise price options
Less costs associated with shares issued
81,967
2,459
4,367
131
125,000
4,625
-
-
-
-
-
-
-
-
45
36
-
11
3
(880)
Balance at end of financial year
999,124
354,710
787,709
82,308
2,795
3,417
12,465
205
950
5,020
408
13,690
1,400
16
3
-
780
96
4
-
(1,226)
348,361
55
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
17: Reserves
a) Option reserve
Balance brought forward
Issue of $0.20 exercise price unlisted options
Issue of $0.25 exercise price unlisted options
Issue of $0.20 exercise price listed options – royalty acquisition
Issue of $0.08 exercise price options on the basis of one option
for every $0.035 share issued
Issue of $0.08 exercise price options on the basis of one option
for every $0.03 share issued
Issue of $0.08 exercise price options to consultants
Transfer of value of options exercised
Balance at end of financial year
(i) Refer to note 24 for further information.
Dec
2016
$' 000
Dec
2015
$' 000
28,547
-
-
-
-
736
77
(1)
29,359
27,567
107
86
67
720
-
-
-
28,547
Dec 2016
Dec 2015
No
' 000
No
' 000
$' 000
$' 000
787,709
348,361
669,390
344,349
The option reserve arises from the grant of share options attached to shares issued under rights
issues, and share options and performance rights to executives, employees and consultants.
Amounts are transferred out of the reserve and into issued capital when the options are exercised.
Further information about share-based payments to directors and senior management is made in note
24 to the financial statements.
b) Foreign currency translation reserve
Balance brought forward
Current period adjustment from currency translation of foreign
controlled entities
Balance at end of year
Dec
2016
$' 000
2,561
(1,322)
1,239
Dec
2015
$' 000
2,523
38
2,561
The foreign currency translation reserve records the foreign currency differences arising from the
translation of the foreign subsidiary’s accounts from Danish Kroner, the functional currency of
Greenland Minerals and Energy (Trading) A/S, to Australian dollars.
c) Non-controlling interest acquisition reserve
Balance brought forward
Balance at end of year
Dec
2016
$' 000
Dec
2015
$' 000
(39,672)
(39,672)
(39,672)
(39,672)
The non-controlling interest acquisition reserve records the acquisition of the non-controlling interests
in Greenland Minerals and Energy (Trading) A/S.
56
5757
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Notes to the accounts
17: Reserves (cont’d)
d) total reserves
Option reserve
Foreign currency translation reserve
Non-controlling interest acquisition reserve
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Dec
2016
$' 000
29,359
1,239
(39,672)
(9,074)
Dec
2015
$' 000
28,547
2,561
(39,672)
(8,564)
18: Dividends
No dividends have been proposed or paid during the period or comparative period.
19: Accumulated losses
Balance at beginning of financial year
Loss attributable to members of parent entity
Related income tax
Balance at end of financial year
20: Loss per share
Basic loss per share
From continuing operations
Diluted loss per share
From continuing operations
dec
2016
$' 000
(264,628)
(2,173)
-
(266,801)
Dec
2015
$' 000
(260,537)
(4,091)
-
(264,628)
Dec
2016
Cents
Per share
Dec
2015
Cents
Per share
0.26
0.26
0.58
0.58
Basic and diluted loss per share
The loss and weighted average number of ordinary shares used in the calculation of the basic and
diluted loss per share are as follows;
Loss for year ($)
Weighted average number of shares used
in the calculation of basic and diluted loss
per share (Number)
Dec
2016
2,172,733
Dec
2015
4,091,615
843,902,357
709,915,806
(i)
There were 202,023,480 potential ordinary shares on issue at 31 December 2016 (31
December 2015: 216,065,646) that are not dilutive and are therefore excluded from the
weighted average number of ordinary shares and potential ordinary shares used in the
calculation of diluted earnings per share.
58
57
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
18: Dividends
No dividends have been proposed or paid during the period or comparative period.
Notes to the accounts
17: Reserves (cont’d)
d) total reserves
Option reserve
Foreign currency translation reserve
Non-controlling interest acquisition reserve
19: Accumulated losses
Balance at beginning of financial year
Loss attributable to members of parent entity
Related income tax
Balance at end of financial year
20: Loss per share
Basic loss per share
From continuing operations
Diluted loss per share
From continuing operations
Basic and diluted loss per share
diluted loss per share are as follows;
Loss for year ($)
Weighted average number of shares used
in the calculation of basic and diluted loss
per share (Number)
The loss and weighted average number of ordinary shares used in the calculation of the basic and
(i)
There were 202,023,480 potential ordinary shares on issue at 31 December 2016 (31
December 2015: 216,065,646) that are not dilutive and are therefore excluded from the
weighted average number of ordinary shares and potential ordinary shares used in the
calculation of diluted earnings per share.
Dec
2016
$' 000
29,359
1,239
(39,672)
(9,074)
Dec
2015
$' 000
28,547
2,561
(39,672)
(8,564)
dec
2016
$' 000
(264,628)
(2,173)
-
Dec
2015
$' 000
(260,537)
(4,091)
-
(266,801)
(264,628)
Dec
2016
Cents
Dec
2015
Cents
Per share
Per share
0.26
0.26
0.58
0.58
Dec
2016
Dec
2015
2,172,733
4,091,615
843,902,357
709,915,806
57
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
21: Commitments for expenditure
Exploration commitments: EL 2010/02 is located in Greenland. The tenement expenditure incurred
during the year ended 31 December 2016 and prior years was in excess of the minimum expenditure
required to maintain the tenement in good standing. The excess expenditure can be carried forward
for 3 years. The amount carried forward will be sufficient to meet the minimum expenditure
requirements over this period.
Operating leases (i)
Not longer than 1 year
Longer than 1 year but not longer than 5 years
Longer than 5 years
Dec
2016
$’000
Dec
2015
$’000
100
-
-
100
100
-
-
100
(i)
The only commitments for operating leases are lease rentals on the Consolidated
Group’s Perth head office premises. The current lease expires on the 14 February 2017,
and is non-cancelable, with a 2 year renewal option.
22: Subsidiaries
Name of subsidiary
Chahood Capital Limited
Greenland Minerals and Energy (Trading) A/S
Country
of incorporation
Isle of Man
Greenland
Ownership interest
Dec
Dec
2015
2016
%
%
100
100
100
100
(i)
Greenland Minerals and Energy Limited directly owns 100% of the issued shares of
Chahood Capital Limited. 61% of the issued shares of Greenland Minerals and Energy
(Trading) A/S, are held by Chahood Capital Limited and 39% are held directly by
Greenland Minerals and Energy Limited.
58
5959
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
23: Notes to the statement of cash flows
Reconciliation of loss for the period to net cash flows from operating activities.
Loss for the year
(Gain) loss on sale or disposal of non-current
assets
Depreciation
Equity-settled share-based payments
Impairment of capitalised exploration and evaluation expenditure
Interest income received and receivable
(Increase)/decrease in assets
Trade and other receivables
Increase (decrease) in liabilities
trade and other payables
Provisions
Net cash used in operating activities
year ended
31 Dec
2016
$' 000
year ended
31 Dec
2015
$' 000
(2,173)
(4,091)
23
123
77
-
(34)
12
-
153
877
594
(81)
129
(201)
17
(2,156)
173
103
(2,143)
The Consolidated Group has not entered into any other non-cash financing or investing activities.
24: Share based payments
In addition to the share based payments discussed elsewhere within this note, the following share-
based payment arrangements were in existence during the year ended 31 December 2016:
Date
8/06/2016 (i)
9/06/2016 (i)
Number
2,014,000
2,353,533
Issue Price
$0.03
$0.03
Value
$60,420
$70,605
(i)
Capital raising fees payable, that were settled through the issue of shares. The number of
shares issued was determined based on the amount of fees payable and a share price equal
to the share price of the capital raising.
In addition to the share based payments discussed elsewhere within this note, the following options
were granted as share-based payment arrangements during the year ended 31 December 2016:
Option
$0.08 Listed
exercise price (i)
$0.08 Listed
exercise price (ii)
$0.08 Listed
exercise price (ii)
$0.08 Listed
exercise price (iii)
$0.08 Listed
exercise price (iii)
Grant date
Number
Fair value @
grant date
$
expiry date
16/02/2016
15,000,000
77,000
30/09/2018
08/06/2016
42,133,333
359,148
30/09/2018
09/06/2016
39,833,335
339,543
30/09/2018
08/06/2016
2,014,000
17,167
30/09/2018
09/06/2016
2,353,533
20,061
30/09/2018
60
59
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
23: Notes to the statement of cash flows
Reconciliation of loss for the period to net cash flows from operating activities.
Notes to the accounts
24: Share based payments (cont’d)
(Gain) loss on sale or disposal of non-current
Loss for the year
assets
Depreciation
Equity-settled share-based payments
Impairment of capitalised exploration and evaluation expenditure
Interest income received and receivable
(Increase)/decrease in assets
Trade and other receivables
Increase (decrease) in liabilities
trade and other payables
Provisions
Net cash used in operating activities
year ended
year ended
31 Dec
2016
$' 000
31 Dec
2015
$' 000
(2,173)
(4,091)
23
123
77
-
(34)
12
(201)
17
(2,156)
-
153
877
594
(81)
129
173
103
(2,143)
The Consolidated Group has not entered into any other non-cash financing or investing activities.
24: Share based payments
In addition to the share based payments discussed elsewhere within this note, the following share-
based payment arrangements were in existence during the year ended 31 December 2016:
Date
Number
Issue Price
8/06/2016 (i)
9/06/2016 (i)
2,014,000
2,353,533
$0.03
$0.03
Value
$60,420
$70,605
(i)
Capital raising fees payable, that were settled through the issue of shares. The number of
shares issued was determined based on the amount of fees payable and a share price equal
to the share price of the capital raising.
In addition to the share based payments discussed elsewhere within this note, the following options
were granted as share-based payment arrangements during the year ended 31 December 2016:
Fair value @
grant date
Grant date
Number
$
expiry date
16/02/2016
15,000,000
77,000
30/09/2018
08/06/2016
42,133,333
359,148
30/09/2018
09/06/2016
39,833,335
339,543
30/09/2018
08/06/2016
2,014,000
17,167
30/09/2018
Option
$0.08 Listed
exercise price (i)
$0.08 Listed
exercise price (ii)
$0.08 Listed
exercise price (ii)
$0.08 Listed
exercise price (iii)
$0.08 Listed
exercise price (iii)
(i) Options granted in consideration for corporate advisory fees payable.
(ii) Options granted as a free attached option to shares issued in the June 2016 capital raising.
(iii) Options granted as free attached options to shares issued for the settlement of capital raising
fees. Shares and free attached options were issued at the same price and under the same
terms as the shares and options issued in the capital raising.
In addition to the above, 13,690,000 options expired on 30 June 2016. These options were issued in
February 2015 and had an exercise price of $0.20.
The total options (quoted and unquoted) outstanding as at 31 December 2016 was 202,023,480 as
shown below
Options
GGGOB
Unlisted options
Unlisted options
Number
187,023,480
7,500,000
7,500,000
exercise price
expiry date
$0.08
$0.20
$0.25
30/09/2018
24/02/2018
24/02/2018
Rights expired
During the current financial year ended 31 December 2016 the following un-vested Employee
Performance Rights expired due to failing to meet the share price vesting hurdles. The Rights were
issued in 2013 and fully expensed proportionately over the years ended 31 December 2013 to 31
December 2014.
rights
Employee rights
Number
9,685,500
Value @ grant
date
$
1,697,223
expiry date
30/06/2016
Value @ expiry
date
-
During the previous financial year ended 31 December 2015 the following un-vested Employee
Performance Rights expired due to failing to meet the share price vesting hurdles. The Rights were
issued in 2012 and fully expensed proportionately over the years ended 31 December 2012 to 31
December 2013.
Directors
A Ho
Number
1,000,000
Value @ grant
date
$
expiry date
Value @ expiry
date
460,000
23/01/2015
-
25: Financial instruments
(a) Capital risk management
The Consolidated Group manages its capital in order to maintain sufficient funds are available for the
Consolidated Group to meet its obligations and that the Group can fund its exploration and evaluation
activities as a going concern.
The Consolidated Group’s overall strategy remains unchanged from December 2015.
The capital structure of the Consolidated Group consists of fully paid shares and options as disclosed
in notes 16 and 17 respectively.
09/06/2016
2,353,533
20,061
30/09/2018
None of the Consolidated Group’s entities are subject to externally imposed capital requirements.
59
60
6161
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Notes to the accounts
25: Financial instruments (cont’d)
(b) Categories of financial instruments
Financial assets
Cash and equivalents
Trade and other receivables - current
Financial liabilities
Amortised cost
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Dec
2016
$' 000
Dec
2015
$' 000
6,378
31
778
2,706
43
987
(c) Financial risk management objectives
The Group’s principal financial instruments comprise cash and short term deposits. The main
purpose of the financial instruments is to earn the maximum amount of interest at low risk to the
Consolidated Group. For the period under review, it is the Consolidated Group’s policy not to trade in
financial instruments
The main risks arising from the Consolidated Group’s financial instruments are interest rate risk, credit
risk and liquidity risk. The board reviews and agrees policies for managing each of these risks and
they are summarised below:
(i)
(ii)
Interest Rate Risk
The Consolidated Group is exposed to movements in market interest rates on short
term deposits. The policy is to monitor the interest rate yield curve out to 120 days to
ensure a balance is maintained between the liquidity of cash assets and the interest
rate return. The Consolidated Group does not have short or long term debt, and
therefore this risk is minimal.
There was no change in managing interest rate risk or the method of measuring risk
from the prior year.
Credit Risk
Credit risk refers to the risk that a counter party will default on its contractual
obligations resulting in financial loss to the Group. The Group has adopted the policy
of only dealing with credit worthy counterparties and obtaining sufficient collateral or
other security where appropriate, as a means of mitigating the risk of financial loss
from defaults.
The Consolidated Group has no significant credit risk exposure to any single
counterparty or any Consolidated Group of counterparties having similar
characteristics. The credit risk on liquid funds is limited because the counterparties
are banks with high credit – ratings assigned by international rating agencies.
The carrying amount of financial assets recorded in the financial statements, net of
any provisions for losses, represents the Consolidated Group’s maximum exposure to
credit risk.
There was no change in managing credit risk or the method of measuring risk from
the prior year.
(iii)
Liquidity Risk
Liquidity risk refers to maintaining sufficient cash and equivalents to meet on going
commitments, as and when they occur. The primary source of liquid funds for the
Consolidated Group, are funds the Consolidated Group holds on deposit with varying
maturity dates.
62
61
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
25: Financial instruments (cont’d)
(b) Categories of financial instruments
Trade and other receivables - current
Financial assets
Cash and equivalents
Financial liabilities
Amortised cost
Dec
2016
$' 000
Dec
2015
$' 000
6,378
31
778
2,706
43
987
(c) Financial risk management objectives
The Group’s principal financial instruments comprise cash and short term deposits. The main
purpose of the financial instruments is to earn the maximum amount of interest at low risk to the
Consolidated Group. For the period under review, it is the Consolidated Group’s policy not to trade in
financial instruments
The main risks arising from the Consolidated Group’s financial instruments are interest rate risk, credit
risk and liquidity risk. The board reviews and agrees policies for managing each of these risks and
they are summarised below:
(i)
Interest Rate Risk
The Consolidated Group is exposed to movements in market interest rates on short
term deposits. The policy is to monitor the interest rate yield curve out to 120 days to
ensure a balance is maintained between the liquidity of cash assets and the interest
rate return. The Consolidated Group does not have short or long term debt, and
There was no change in managing interest rate risk or the method of measuring risk
therefore this risk is minimal.
from the prior year.
(ii)
Credit Risk
Credit risk refers to the risk that a counter party will default on its contractual
obligations resulting in financial loss to the Group. The Group has adopted the policy
of only dealing with credit worthy counterparties and obtaining sufficient collateral or
other security where appropriate, as a means of mitigating the risk of financial loss
from defaults.
The Consolidated Group has no significant credit risk exposure to any single
counterparty or any Consolidated Group of counterparties having similar
characteristics. The credit risk on liquid funds is limited because the counterparties
are banks with high credit – ratings assigned by international rating agencies.
The carrying amount of financial assets recorded in the financial statements, net of
any provisions for losses, represents the Consolidated Group’s maximum exposure to
There was no change in managing credit risk or the method of measuring risk from
credit risk.
the prior year.
(iii)
Liquidity Risk
Liquidity risk refers to maintaining sufficient cash and equivalents to meet on going
commitments, as and when they occur. The primary source of liquid funds for the
Consolidated Group, are funds the Consolidated Group holds on deposit with varying
maturity dates.
Notes to the accounts
25: Financial instruments (cont’d)
The Consolidated Group monitors its cash flow forecast and actual cash flow to
ensure that present and future commitments are provided for. As well as matching
the maturity date of funds invested with the timing of future commitments.
There was no change in managing credit risk or the method of measuring risk from
the prior year.
(iv)
Foreign Currency Risk
The Consolidated Group’s risk from movements in foreign currency exchange rates,
relates to funds transferred by the Company to the Greenland subsidiary and the
funds are held in Danish Krone (DKK). This risk exposure is minimised by only
holding sufficient funds in DKK, to meet the immediate cash requirements of the
subsidiary. Once funds are converted to DKK they are only used to pay expenses in
DKK.
(d) Liquidity risk
The following table details the Consolidated Group’s expected maturity for its non-derivative financial
assets. The tables below have been drawn up based on the undiscounted contractual maturities of
the financial assets including interest that will be earned on those assets except where the
Company/Consolidated Group anticipates that the cash flow will occur in a different period.
Weighted
Average
effective
interest
rate
< 6
Months
6 – 12
Months
%
$' 000
$' 000
1.7
-
2.28
-
6,158
31
6,189
2,486
43
2,529
220
-
220
220
-
220
1 - 5
years
$' 000
> 5
years
$' 000
total
$' 000
-
-
-
-
-
-
-
-
6,378
31
6,409
-
2,706
43
2,749
Dec 2016
Cash and equivalents
Trade and receivables - current
Dec 2015
Cash and equivalents
Trade and receivables - current
The following table details the Consolidated Group’s remaining contractual maturity for its non-
derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows
of financial liabilities based on the earliest date on which the Group can be required to pay. The table
includes both interest and principal cash flows.
61
62
6363
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
25: Financial instruments (cont’d)
Dec 2016
Trade and other payables
Other liabilities
Dec 2015
Trade and other payables
Other liabilities
Weighted
Average
effective
interest
rate
%
-
-
-
-
< 6
Months
$' 000
6 – 12
Months
$' 000
1 – 5
years
$' 000
> 5
years
$' 000
total
$' 000
778
-
778
987
-
987
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
778
-
778
987
-
987
(e) Interest rate risk
The Consolidated Group is exposed to interest rate risk because it places funds on deposit at variable
rates. The risk is managed by the Consolidated Group by monitoring interest rates.
The Consolidated Group’s exposures to interest rates on financial assets and financial liabilities are
detailed in the liquidity risk management section of this note.
The Group has performed sensitivity analysis relating to its exposure to interest rate risk at balance
date. This sensitivity analysis demonstrates the effect on the current year results and equity post tax
which could result from a change in these risks. In the analysis a 1% or 100 basis points movement
has been applied on the assumption that interest rates are unlikely to move up more than that and
less likely to fall. This is taking into account the current interest rate levels and general state of the
economy.
There has been no change in managing credit risk or the method of measuring risk from the prior
year.
Interest Rate Sensitivity Analysis
At 31 December 2016, the effect on profit and equity as a result of changes in the interest rate, with
all other variables remaining constant would be as follows:
Change in profit
Increase in interest rate by 1% (100 basis points)
Decrease in interest rate by 1% (100 basis points)
Dec
2016
$' 000
Dec
2015
$' 000
32
(32)
23
(23)
A 1% or 100 basis points variable has been applied to the interest rate sensitivity analysis, after giving
consideration to the current interest rate levels and general state economy.
Fair value of financial instruments
The carrying value of all financial instruments is the approximate fair value of the instruments. This is
based on the fact that all financial instruments have either a short term date of maturity or are loans to
subsidiaries.
64
63
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
26: Key management personnel compensation
The aggregate compensation made to key management personnel of the Consolidated Group is set
out below:
Short-term employee benefits
Post-employment benefits
Other long-term benefits – provision for
long service leave
Share-based payment
year ended
31 Dec
2016
$
712,411
64,598
year ended
31 Dec
2015
$
795,100
65,075
12,733
-
789,742
22,633
-
882,808
Refer to the remuneration report included in pages 22 to 28 of the Directors report for more detailed
remuneration disclosures.
Notes to the accounts
25: Financial instruments (cont’d)
Dec 2016
Trade and other payables
Other liabilities
Dec 2015
Trade and other payables
Other liabilities
(e) Interest rate risk
Weighted
Average
effective
interest
rate
%
-
-
-
-
< 6
6 – 12
Months
Months
$' 000
$' 000
1 – 5
years
$' 000
> 5
years
$' 000
total
$' 000
778
-
778
987
-
987
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
778
-
778
987
-
987
The Consolidated Group is exposed to interest rate risk because it places funds on deposit at variable
rates. The risk is managed by the Consolidated Group by monitoring interest rates.
The Consolidated Group’s exposures to interest rates on financial assets and financial liabilities are
detailed in the liquidity risk management section of this note.
The Group has performed sensitivity analysis relating to its exposure to interest rate risk at balance
date. This sensitivity analysis demonstrates the effect on the current year results and equity post tax
which could result from a change in these risks. In the analysis a 1% or 100 basis points movement
has been applied on the assumption that interest rates are unlikely to move up more than that and
less likely to fall. This is taking into account the current interest rate levels and general state of the
There has been no change in managing credit risk or the method of measuring risk from the prior
economy.
year.
Interest Rate Sensitivity Analysis
At 31 December 2016, the effect on profit and equity as a result of changes in the interest rate, with
all other variables remaining constant would be as follows:
Dec
2016
$' 000
Dec
2015
$' 000
32
(32)
23
(23)
Change in profit
Increase in interest rate by 1% (100 basis points)
Decrease in interest rate by 1% (100 basis points)
A 1% or 100 basis points variable has been applied to the interest rate sensitivity analysis, after giving
consideration to the current interest rate levels and general state economy.
Fair value of financial instruments
The carrying value of all financial instruments is the approximate fair value of the instruments. This is
based on the fact that all financial instruments have either a short term date of maturity or are loans to
subsidiaries.
63
64
6565
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
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Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
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6969
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
28: transactions with related parties
Simon Cato is a Non-executive Director and Chairman of Advanced Share Registry Limited.
Advanced Share Registry Limited provides share registry services to Greenland Minerals and Energy
Limited. These services are supplied on normal commercial terms and Mr Cato does not receive any
remuneration from Advanced Share Registry Limited based on the supply of share registry services to
the Consolidated Group. For the year ended 31 December 2016 $59,907 was paid to Advance Share
Registry Limited for services provided (Dec 2015: $73,365).
29: Parent Company information
Financial position
Total Current Assets
Total Non-Current Assets
Total Assets
Total Current Liabilities
Total non-current liabilities
Total Liabilities
Net Assets
Equity
Issued Capital
Reserves
Accumulated Losses
Total Equity
Financial Performance
Profit (Loss) for the year
total comprehensive income
Dec
2016
$' 000
Parent
Dec
2015
$' 000
7,029
72,611
79,640
697
108
805
78,835
2,863
73,856
76,719
1,044
97
1,141
75,578
354,710
19,727
(295,602)
78,835
348,361
19,813
(292,596)
75,578
(3,006)
(3,006)
(3,645)
(3,645)
Contingent liabilities
The parent company has no contingent liabilities as at 31 December 2016 or 2015.
Guarantees
Greenland Minerals and Energy Limited has guaranteed the provision of funding and support to the
Company’s 100% held subsidiary, Greenland Minerals and Energy Limited (Trading) A/S). This
funding forms part of the Consolidated Group’s approved budgeted expenditure.
Greenland Minerals and Energy Limited placed $220,000 into a deposit account with the Company’s
bank. This deposit is held by the bank as security over corporate credit cards issued to the Company.
70
69
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Notes to the accounts
30: Remuneration of auditors
Auditor of the parent entity
Audit or review of the financial report
Other assurance services
Non-audit services - taxation
Related practice of the parent entity auditor
Audit or review of the financial report
Non-audit services – taxation
Non-audit services – other
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Dec
2016
$
94,325
8,000
-
102,325
Dec
2016
$
26,134
1,572
1,572
29,278
Dec
2015
$
101,633
8,000
-
109,633
Dec
2015
$
26,316
1,583
1,583
29,482
The auditor of Greenland Minerals and Energy Limited is Deloitte Touche Tohmatsu.
31: Subsequent events
On the 7 March 2017, the Company issued 2,423,300 ordinary shares through the exercise of an
equal number of GGGOB options and issued a further 3,200,000 ordinary shares and 3,200,000 listed
GGGOB options, in lieu of fees payable under corporate advisory and research mandates.
Other than the matter above, there have been no matters or circumstances occurring subsequent to
the financial period that has significantly affected, or may significantly affect, the operations of the
Consolidated Group, the results of those operations, or the state of affairs of the Consolidated Group
in future years.
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Notes to the accounts
28: transactions with related parties
Simon Cato is a Non-executive Director and Chairman of Advanced Share Registry Limited.
Advanced Share Registry Limited provides share registry services to Greenland Minerals and Energy
Limited. These services are supplied on normal commercial terms and Mr Cato does not receive any
remuneration from Advanced Share Registry Limited based on the supply of share registry services to
the Consolidated Group. For the year ended 31 December 2016 $59,907 was paid to Advance Share
Registry Limited for services provided (Dec 2015: $73,365).
29: Parent Company information
Financial position
Total Current Assets
Total Non-Current Assets
Total Assets
Total Current Liabilities
Total non-current liabilities
Total Liabilities
Net Assets
Equity
Issued Capital
Reserves
Accumulated Losses
Total Equity
Financial Performance
Profit (Loss) for the year
total comprehensive income
Contingent liabilities
Guarantees
Dec
2016
$' 000
Parent
Dec
2015
$' 000
7,029
72,611
79,640
697
108
805
78,835
2,863
73,856
76,719
1,044
97
1,141
75,578
354,710
19,727
(295,602)
78,835
348,361
19,813
(292,596)
75,578
(3,006)
(3,006)
(3,645)
(3,645)
The parent company has no contingent liabilities as at 31 December 2016 or 2015.
Greenland Minerals and Energy Limited has guaranteed the provision of funding and support to the
Company’s 100% held subsidiary, Greenland Minerals and Energy Limited (Trading) A/S). This
funding forms part of the Consolidated Group’s approved budgeted expenditure.
Greenland Minerals and Energy Limited placed $220,000 into a deposit account with the Company’s
bank. This deposit is held by the bank as security over corporate credit cards issued to the Company.
69
70
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Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
additional stock exchange information as at 17th February 2017
Consolidated Group secretary
Miles Guy
Registered office
Unit 6, 100 Railway Road, Subiaco
Western Australia, 6008
Principal administration office
Unit 6, 100 Railway Road, Subiaco
Western Australia, 6008
Share registry
Advanced Share Registry Services
110 Stirling Highway
Nedlands, Western Australia, 6009
Number of holders of equity securities
Ordinary share capital
999,124,293 fully paid ordinary shares are held by 4,079 individual shareholders.
table of exploration licences
Exploration Licence
EL 2010/02
Location
Southern Greenland
Ownership
100% held by Greenland Minerals and
Energy (Trading) A/S
72
71
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
additional stock exchange information as at 17th February 2017
additional stock exchange information as at 17th February 2017
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
Substantial Shareholders
Shareholder
1.
2.
3.
Citicorp Nominees Pty Limited
JP Morgan Nominees Australia Limited
HSBC Custody Nominees (Australia) Limited
Number
178,825,785
128,792,694
107,222,859
Percentage
22.7%
16.4%
13.6%
Distribution of holders of quoted shares
Share Spread
Holders
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
377
808
608
1,710
576
4,079
Units
151,039
2,479,856
5,016,557
65,076,297
926,400,544
999,124,293
Percentage
0.015%
0.248%
0.502%
6.513%
92.721%
100%
Consolidated Group secretary
Miles Guy
Registered office
Unit 6, 100 Railway Road, Subiaco
Western Australia, 6008
Principal administration office
Unit 6, 100 Railway Road, Subiaco
Western Australia, 6008
Share registry
Advanced Share Registry Services
110 Stirling Highway
Nedlands, Western Australia, 6009
Number of holders of equity securities
Ordinary share capital
999,124,293 fully paid ordinary shares are held by 4,079 individual shareholders.
table of exploration licences
Exploration Licence
Location
Ownership
EL 2010/02
Southern Greenland
100% held by Greenland Minerals and
Energy (Trading) A/S
Fully paid ordinary shares
Percentage
twenty largest holders of quoted shares
Ordinary shareholders
1. Citicorp Nominees Pty Limited
2. HSBC Custody Nominees (Australia) Limited
JP Morgan Nominees Australia Limited
3.
Le Shan Shenghe Rare Earth Company Limited
4.
5.
Peto Pty Ltd <1953 Super Fund A/C>
6. Merrill Lynch (Australia) Nominees Pty Limited
BNP Paribas Noms Pty Limited
7.
Simon Millington
8.
9.
Flourish Super Pty Limited
10. Michael & Helena Andrusiewicz
11. John Mair
12. ABN Amro Clearing Sydney Nominees Pty Limited
13. Simon Cato
BNP Paribas Nominees Pty Limited
14.
15. Giacobbe, Dimitri and David Iesini
16. Rimbal Pty Limited
17. KGBR Future Fund Pty Limited
18. Hitmaster Pty Limited
19. National Nominees Limited
20. BT Global Holdings Pty Limited
71
Number
150,742,174
144,602,809
128,052,495
125,000,000
25,500,000
18,450,729
12,814,720
12,189,648
11,500,000
11,000,000
7,989,062
7,022,810
6,260,200
5,469,827
5,431,505
5,121,387
5,070,000
4,952,496
4,037,763
4,000,000
695,207,625
15.1%
14.5%
12.8%
12.5%
2.6%
1.8%
1.3%
1.2%
1.2%
1.1%
0.8%
0.7%
0.6%
0.5%
0.5%
0.5%
0.5%
0.5%
0.4%
0.4%
69.5%
72
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Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
additional stock exchange information as at 17th February 2017
Distribution of holders of quoted options - GGGoB
Share Spread
Holders
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
81
103
53
135
115
487
Units
43,263
255,787
408,165
5,047,077
181,269,188
187,023,480
Percentage
0.023%
0.137%
0.218%
2.699%
96.923%
100%
twenty largest holders of GGGoB options
Simon Millington
JP Morgan Nominees Australia Limited
KGBR Future Fund Pty Limited
Jiahuang Zhang
GGGOB Option Holders
1. Hitmaster Pty Limited
2. Citicorp Nominees Pty Limited
Peto Pty Limited <1953 Super Fund A/C>
3.
4. M&K Korkidas
5.
6.
7.
8.
9. Quattroporte Pty Limited
10. Michael Rex hunt
11. HSBC Custody Nominees (Australia) Limited A/C2
12. BT Global Holdings Pty Limited
13. KGBR Future fund Pty Limited
14. Flourish Super Pty Limited
15. Kevin & Vikki Ho
16. Gary, Eric & Luke Tatasciore
17. Meriwa Street Pty Limited
18. Qunilyntion Pty Limited
19. Peter Harry Hatch
20. Skiffington Super Pty Limited
GGGOB Listed Options
Number
20,226,785
14,692,583
13,000,000
10,011,869
8,200,001
8,197,855
7,800,000
6,000,000
6,000,000
5,097,965
5,087,981
4,000,000
3,993,543
3,000,000
2,998,010
2,916,667
2,615,790
2,500,000
2,000,000
1,939,724
130,278,773
Percentage
10.8%
7.9%
6.9%
5.4%
4.4%
4.3%
4.2%
3.2%
3.2%
2.7%
2.7%
2.1%
2.1%
1.6%
1.6%
1.6%
1.4%
1.3%
1.1%
1.0%
69.6%
74
73
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
Greenland Minerals and energy Limited
And Controlled entities
31 December 2016 Financial Report
additional stock exchange information as at 17th February 2017
Distribution of holders of quoted options - GGGoB
Share Spread
Holders
Units
Percentage
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
81
103
53
135
115
487
43,263
255,787
408,165
5,047,077
181,269,188
187,023,480
0.023%
0.137%
0.218%
2.699%
96.923%
100%
twenty largest holders of GGGoB options
GGGOB Option Holders
1. Hitmaster Pty Limited
2. Citicorp Nominees Pty Limited
3.
Peto Pty Limited <1953 Super Fund A/C>
4. M&K Korkidas
5.
6.
7.
Simon Millington
JP Morgan Nominees Australia Limited
KGBR Future Fund Pty Limited
8.
Jiahuang Zhang
9. Quattroporte Pty Limited
10. Michael Rex hunt
11. HSBC Custody Nominees (Australia) Limited A/C2
12. BT Global Holdings Pty Limited
13. KGBR Future fund Pty Limited
14. Flourish Super Pty Limited
15. Kevin & Vikki Ho
16. Gary, Eric & Luke Tatasciore
17. Meriwa Street Pty Limited
18. Qunilyntion Pty Limited
19. Peter Harry Hatch
20. Skiffington Super Pty Limited
130,278,773
69.6%
GGGOB Listed Options
Number
Percentage
10.8%
20,226,785
14,692,583
13,000,000
10,011,869
8,200,001
8,197,855
7,800,000
6,000,000
6,000,000
5,097,965
5,087,981
4,000,000
3,993,543
3,000,000
2,998,010
2,916,667
2,615,790
2,500,000
2,000,000
1,939,724
7.9%
6.9%
5.4%
4.4%
4.3%
4.2%
3.2%
3.2%
2.7%
2.7%
2.1%
2.1%
1.6%
1.6%
1.6%
1.4%
1.3%
1.1%
1.0%
73
7575
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt
76
Greenland Minerals and enerGy liMited – 2016 AnnuAl RepoRt natural resources for
eMerging technologies.
Greenland Minerals and enerGy liMiTed
Registered Office & Principal Place of Business
Unit 6, 100 Railway Road, Subiaco, Western Australia, 6008
Postal Address
PO Box 2006, Subiaco, Western Australia, 6904
Tel: +61 8 9382 2322
Fax: +61 8 9382 2788
www.ggg.gl