ANNUAL REPORT
GREAT WESTERN EXPLORATION LIMITED
AND CONTROLLED ENTITIES
ABN 53 123 631 470
ANNUAL REPORT
30 JUNE 2017
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 1
Auditor
Bentleys
London House,
216 St George’s Terrace
Perth
Western Australia 6005
Solicitors
Steinepreis Paganin
16 Milligan Street
Perth
Western Australia 6000
Stock Exchange
The Company’s shares are listed by the
Australian Securities Exchange Limited
The home exchange is Perth
ASX Code - Fully paid shares
GTE
CORPORATE DIRECTORY
Directors
Kevin Clarence Somes (Chairman)
Jordan Ashton Luckett (Managing Director)
Rimas Kairaitis (Non-executive Director)
Terrence Ronald Grammer (Non-executive Director)
Company Secretary
Justin Barton
Registered and Principal Office
Level 2
35 Outram Street
West Perth
Western Australia 6005
Telephone
Facsimile:
(08) 6311 2852
(08) 6313 3997
Share Registry
Computershare Investor Services Pty Limited
Level 11
172 St Georges Terrace
Perth
Western Australia 6000
Telephone:
Facsimile:
1300 787 272
(08) 9323 2033
Website:
www.greatwesternexploration.com.au
CONTENTS
Review of Exploration Activities
Directors’ Report
Corporate Governance Statement
Consolidated Statement of Financial Position
Consolidated Statement of Profit or
Loss and other Comprehensive Income
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Auditors Independence Declaration
Independent Auditors Report
Additional Information
4
14
26
30
31
32
33
34
64
65
66
72
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 3
Executive Summary
Great Western Exploration Limited (“Great Western”; “the
Company”) is focussed on copper, cobalt, gold and nickel
within the Proterozoic and Archaean age rocks located in
the north Yilgarn region (fig 1).
During the year Great Western made the strategic move to
consolidate the Ives Find and Harris Find goldfields located
in the world class Yandal gold belt in Western Australia.
To achieve this the company acquired 100% of the Ives
Find goldfield and 80% of the Harris Find which are now
combined into the Company’s Yandal West Project.
Great Western recognised the Yandal West project as
having the potential to be highly prospective for gold and
represents a rare greenfields exploration opportunity
within one of Australia’s premier gold districts.
In February 2017, the Company completed a limited reverse
circulation (“RC”) drill program to better understand the
nature of the known gold mineralisation at Ives Find. This
drilling intersected high-grade gold mineralisation within a
promising geological setting that has similarities to other
major gold deposits in the region including Bronzewing and
Jundee.
After the drill confirmation of a prospective geological
setting for gold at Yandal West a systematic exploration
programme was initiated that comprised of regional
soil sampling and detailed aeromagnetics. This program
identified of a 9km gold-in-soil trend that included a
3.5 km long highly anomalous area at May Queen that
is co-incident with a highly prospective aeromagnetic
structural setting. Following this work the Company
believes that the Yandal West project has the potential
to become one of Australia’s most exciting greenfields gold
discoveries.
Also during the year Great Western entered into a Farm-
In Agreement with Sandfire Resources Limited (“Sandfire”)
whereby Sandfire will explore the Company’s northern
Yerrida tenements (1,560 km2) to earn up to 70% with
minimum exploration spend of $1.7 million and sole
funding exploration until the delineation of 50,000t or
more of in-ground copper resources.
The Farm-In Agreement enables one of Australia’s most
successful exploration teams to explore our northern Yerrida
area with the considerable knowledge, understanding
and experience gained through the nearby discoveries of
Degrussa and Monty. It also provides a clear pathway from
discovery to production in this area.
The Company has retained its southern Yerrida area
(950km2) that it believes is prospective for copper, cobalt,
nickel and gold. It will continue to explore these areas with
the initial focus at its Chisel prospect.
Great Western also acquired the Fairbairn project during
the year. This project is located approximately 80 km NE of
the Degrussa VMS deposit along strike of the Goodin fault.
The Company believes this project has the potential for
world class sedimentary hosted copper – cobalt, lead – zinc,
porphyry copper and gold mineralisation. The Company is
currently considering its strategy on this project in light of
the recent spike in the price of Cobalt and will provide a
specific update once this review is complete.
At Cunyu, the JV Letter Agreement between Great Western
and Glencore expired in May 2017 with Company not
meeting the $1.5 million expenditure commitment to
earn an initial 50% interest. The Agreement has not
been renewed and the tenements have reverted wholly
to Glencore.
Review of Exploration Activities Figure 1. Location of Great Western’s Projects in the Northern Yilgarn
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 5
Yandal West
• A robust 9 km long and 2 km wide gold trend was delineated in regional soil sampling with peak gold values of 2,380ppb
(2.38g/t), 951ppb, 716ppb, 473ppb, 412ppb, 384ppb, 213ppb, and 207ppb.
• There is a robust 3.8 km long gold-in-soil anomaly at May Queen that contains 4 highly anomalous areas greater than
50ppb gold including one area that has a strike length of 1.2km with a core greater than 100ppb gold that is approximately
800m in length.
• The May Queen soil anomaly is co-incident with highly prospective geophysical structural target identified in the detailed
aeromagnetic survey.
• This gold trend is very well defined and cross cuts geological boundaries indicating it may be a large gold system related
to a significant structural setting. Field investigations in the southeast of the project have identified veining and shearing
associated with this gold trend.
Figure 2. Location of Yandal West project
The Yandal West gold project is located within the world class Yandal gold belt (fig 2), approximately 55km north of
Bronzewing gold deposit (3.5Mozs) and 60 km south of Jundee gold mine (10Mozs). During the year the Company acquired
100% of the Ives Find goldfield, as part of the Vanguard Exploration Limited (“Vanguard”) acquisition, and 80% of the Harris
Find goldfield. This is the first time that both goldfields have been consolidated into one project. Previously the area had a
long history of fragmented ownership and limited, non-systematic exploration.
In February 2017 GTE undertook a limited RC programme at Ives Find to understand the nature of the gold mineralisation.
The drilling intersected high-grade gold mineralisation within a promising geological setting that has similarities to other
major gold deposits in the region including Bronzewing and Jundee (ASX Release – 29th March 2017).
Satisfied that similar mechanisms observed at other significant gold deposits elsewhere in the Yandal belt are also present
at Yandal West, the company commenced a program of systematic exploration, starting with regional scale soil programme
and detailed aeromagnetics. Newexco Consultants were contracted to carry out the geophysical interpretation.
Review of Exploration Activities This work resulted in the discovery of a 9km gold-in-soil trend that contained an extensive 3.8km x 1.5km gold anomaly
(> 10 ppb gold) at May Queen of which about 3km contains strong gold anomalism greater than 20 ppb (fig 3).
Figure 3. The 9km gold trend at Yandal West co-incident with Newexco’s interpreted main fault from the detailed aeromagnetic data
Within the 3.8km trend May Queen soil anomaly, there are four highly anomalous areas greater than 50ppb gold, including
a circa 1.2km trend with an intense core of greater than 100ppb gold over 800m (fig 4).
Figure 4. Soil contours at May Queen showing peak soil values. There are four highly anomalous areas
greater than 100 ppb gold (dark purple) that includes one area that has a strike length of about 1,000m.
The anomaly is also coincident with a high priority aeromagnetic target identified by Newexco Consultants that
has all the hallmarks of an exciting greenfields discovery (ASX Release – 5th July 2017).
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 7
Yerrida North JV
• Sandfire Resources NL (“Sandfire”; ASX:SFR) to explore Great Western’s northern Yerrida tenements through
a Farm-In Agreement.
• Sandfire may initially earn 70% by delineating at least 50,000 tonnes in-ground copper Mineral Resource with a minimum
exploration spend of $1.7 million over three years and $500,000 of Sandfire shares upon the agreement becoming
unconditional.
• Exploration to be carried out by Sandfire, which has one of Australia’s most successful exploration teams having discovered
the nearby Degrussa and Monty VMS deposits. Sandfire also have significant infrastructure including a treatment plant at
Degrussa, located approximately 25 km north, which is within trucking distance of the project.
• The Farm-In Agreement provides a clear pathway from discovery to production for the Project.
During the year Great Western Exploration Limited (“the Company”; “Great Western”) signed a Farm-In Letter Agreement
(“Agreement”) with Sandfire Resources NL (“Sandfire; ASX: SFR”) to explore the Company’s northern Yerrida tenements
(“the Project”; “tenements”).
Figure 5. Location of Great Western’s Yerrida tenements
Review of Exploration Activities Key Terms of the Farm-In Agreement
Great Western and Sandfire have entered into a Farm-In Letter Agreement which grants the right for Sandfire to farm into 11
(1,560 km2) of the Company’s Exploration Licenses (“Tenements”) located in the Northern Yerrida basin, Western Australia.
The Key commercial terms are as follows:
Minimum Commitment
a)
Sandfire will pay the equivalent of $500,000 in Sandfire shares based on the volume weighted average price (“VWAP”)
5 trading days before the Farm-In Agreement goes unconditional;
b)
Sandfire must incur a minimum of $1.7 million in exploration expenditure over 3 years. If Sandfire wishes to withdraw
prior to meeting the minimum expenditure it is obligated to pay a cash consideration equal to the minimum expenditure
amount less the actual expenditure made on the tenements.
First- Earn-In – 70%
Sandfire to sole fund exploration expenditure on the tenements to define a mineral resource of 50,000 tonnes of contained
copper or copper equivalent under the JORC 2012 code to earn 70% interest in the tenements.
Second Earn-In – 80%
Sandfire can elect to earn a further 10% by sole funding the completion of a Feasibility Study.
Pre-Emptive Rights
Both companies have pre-emptive rights to the other party’s interest where an interest has been offered for sale to
a third party.
Area of Influence
An area of influence has been defined whereby any tenements acquired by either company inside of this area must be
offered for inclusion in the Farm-In.
The Farm-In Agreement enables one of Australia’s most successful exploration teams to explore our northern Yerrida
area with the considerable knowledge, understanding and experience gained through the nearby discoveries of Degrussa
and Monty. The opportunity to develop a long-term partnership with Sandfire may also prove invaluable if we make a
discovery on our 100% owned southern Yerrida areas, which the company considers to be equally prospective for VMS and
sedimentary hosted copper – cobalt.
The agreement also provides the company with greater resources to focus on its 100% owned Southern Yerrida are as well
as its other core projects including the Yandal West Gold project.
Yerrida South
The Yerrida South project are the Yerrida tenements that Great Western retained 100% ownership after the Sandfire
farm-In Agreement. The tenements are in the southern area of the Yerrida basin where the Company believes the area is
prospective for sedimentary hosted copper-cobalt-lead-zinc and VMS copper. The area includes the Chisel and Frustration
Well prospects.
Following the finalisation of the Yerrida North JV with Sandfire, Great Western initiated a review of its retained 100% owned
Yerrida South tenements. As part of this review highly regarded consultants Newexco completed geophysical modelling
on the Company’s exclusive regional gravity data which identified a shallow gravity anomaly at its Chisel prospect that is
interpreted to be a copper VMS target.
Chisel
The Newexco geophysical modelling identified a gravity anomaly at the Chisel prospect that the Company believes favourable
for VMS or sedimentary hosted copper-cobalt.
This anomaly is located at the intersection of the Perseverance and Chisel faults. The Perseverance fault is a major
discontinuity within the Yilgarn block that hosts many of WA’s largest nickel and gold deposits. This fault can be traced in the
geophysical data through the central area of the Yerrida basin to the Monty and Degrussa copper deposits (fig 6).
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 9
The Company believes this significant fault could be the primary influence on the location of these two deposits.
There is highly anomalous base metal mineralisation in historical drilling located to the north (2m @ 3.12% copper)
and south (2m @ 85 g/t silver at EOH) of the target (fig 7). More importantly, RC drilling completed by Great Western
along strike to the northwest intersected strongly altered geological sequences similar to Degrussa. Furthermore,
the pathfinder analysis of this drilling exhibits a VMS signature with four potential VMS horizons identified using
the same pathfinder geochemistry associated with the mineralisation at Degrussa (ASX Release 05/02/16).
Figure 6. Location of Chisel gravity anomaly on Perseverance fault
Review of Exploration Activities Figure 7. Chisel gravity anomaly located at the intersection of the primary Perseverance Fault
and the secondary Chisel faults (after RSG 1994).
In summary, the Company believes the Chisel gravity anomaly is an exciting base metal VMS target for the following reasons:
✔ A discreet, shallow gravity anomaly within favourable stratigraphy for massive sulphide base metal mineralisation.
✔ Located at the intersection of the primary Perseverance fault and the secondary Chisel fault (fig 2). The Perseverance
fault may also be the primary control of the Degrussa and Monty deposits and it also hosts some of WA’s largest nickel
and gold mines.
✔ Base metal anomalism in historical drilling along strike to the north and south (fig 3).
✔ Similar rock types to Degrussa and Monty
✔ Pathfinder elements in RC drilling located along strike indicate four possible VMS horizons
The Company is planning to complete a detailed gravity survey over the anomaly to allow for more precise 3D modelling
prior to drilling.
Fairbairn
The Fairbairn project area is located approximately 170 kilometres north of Wiluna and is situated on the Jenkins-Goodin Fault
Zone along strike from the Degrussa copper deposit. The Company believes this prospect is prospective for sedimentary hosted
copper-cobalt, Proterozoic copper (porphyry and VMS) and Proterozoic gold.
The originally the project was part of the Vanguard acquisition but the Company has greatly expanded the project to 1,377
km2 following a positive in-house review of the historical data that has identified a promising conceptual model for copper-
cobalt mineralisation.
The company thinks that Fairbairn has the potential to be a world class metals base metal district that contains sedimentary
hosted copper-cobalt, Mississippi style lead -zinc, porphyry copper and epithermal gold.
The Company is still compiling data and will be making further announcements about this project once this is complete.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 11
Cunyu JV
The Cunyu JV expired in May 201 with the Company not seeking an extension and subsequently withdrew from the JV
without earning any interest in the tenements.
Competent Person Statement
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled
by Mr Jordan Luckett who is a member of the Australian Institute of Mining and Metallurgy. Mr Luckett is an employee of Great Western
Exploration Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Luckett consents to the inclusion in the report of the matters
based on his information in the form and context in which it appears.
Exploration Targets
It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in this
announcement relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore
Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context in this announcement. The potential quantity and
grade of resource targets are conceptual in nature since there has been insufficient work completed to define them beyond exploration
targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource or Ore Reserve.
Review of Exploration Activities Tenement Schedule
Name
Project
Tenement No
Yerrida South
Yerrida North JV
Yandal West
Fairbairn
Kyarra
LakeWay
Holey Cow
Holey Cow South
Emergent
Nabbueast
Railway Bore
Paroo Mary
Doolgunna 1
Doolgunna 2
Dural Springs
Curranullanully
Peak Creek
Peak Murchison
Middletharra
Neds Creek
New Springs
Disgraced Well
Highway East
Ives Find
Harris Find
Harris Find
Barwidgee
Barwidgee
Nabberu 01
Fairbairn
Nabberu East
Fairbairn Creek
Fairbairn Hills
West Fairbairn Hills
Yamada East
Vanguard Mary
E51/1727
E51/1807
E53/1712
E53/1713
E53/1730
E53/1740
E53/1917
E53/1948
E 51/1324
E 51/1330
E 51/1560
E 51/1712
E 51/1723
E 51/1724
E 51/1728
E 51/1746
E 51/1747
E 51/1819
E 51/1827
E53/1369
E53/1612
E53/1816
E53/1921
E53/1949
E52/2517
E52/3528
E69/3193
E69/3442
E69/3443
E69/3495
E69/3496
E69/3499
Status
PENDING
PENDING
LIVE
LIVE
LIVE
LIVE
PENDING
PENDING
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
LIVE
PENDING
PENDING
LIVE
LIVE
LIVE
PENDING
PENDING
LIVE
PENDING
LIVE
LIVE
LIVE
PENDING
PENDING
PENDING
Doolgunna North
Ten Collier
E52/3527
LIVE
Ownership
100%
90%
100%
100%
100%
100%
100%
100%
SFR Earning 70%
SFR Earning 70%
SFR Earning 70%
SFR Earning 70%
SFR Earning 70%
SFR Earning 70%
SFR Earning 70%
SFR Earning 70%
SFR Earning 70%
SFR Earning 70%
SFR Earning 70%
100%
80%
80%
100%
100%
0%
100%
0%
100%
100%
100%
100%
100%
100%
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 13
Directors’ Report
The Directors of Great Western Exploration Limited submit herewith the annual report of Great Western Exploration Limited
and subsidiaries (“the Group”) for the financial year ended 30 June 2017.
Information on Directors:
The names and details of the Company’s directors in office during the financial year and up to the date of this report are as
follows. Directors were in office for the entire year unless otherwise stated.
K C Somes
J A Luckett
T R Grammer
R Kairaitis (Appointed 31 May 2017)
I Kerr (Appointed 29 November 2016: Resigned 31 May 2017)
C D Mathieson (Resigned 29 November 2016)
Mr Kevin Clarence Somes FCA
Non-executive Chairman
Experience and expertise
Mr Somes is a fellow of the Institute of Chartered Accountants and was a partner of Somes & Cooke Chartered Accountants
for over 25 years.
Mr Somes has extensive experience in the management of exploration companies, with Somes & Cooke being the auditors
of a number of ASX listed mining companies during his tenure.
Other current directorships
None.
Former directorships in last three years
None.
Mr Jordan Ashton Luckett
Managing Director
Experience and expertise
During his career, Mr Luckett has been a member of a number of successful exploration teams that have made discoveries in
Western Australia, Queensland, Canada and Africa. For the previous twelve years he has held senior management positions
in both mining and exploration companies.
Mr Luckett has 24 years’ of experience in both exploration and mining geology, having worked throughout Australia, North
America and Africa. He has a broad experience that includes grass roots exploration, project generation, resource definition,
underground mining and geological management.
Mr Luckett has a Bachelor of Science degree and is a member of the Australasian Institute of Mining and Metallurgy.
Other current directorships
None.
Former directorships in last three years
None.
DIRECTOR’S REPORT
Mr Rimas Kairaitis - Appointed 31 May 2017
Non-executive
Experience and expertise
Mr Kairaitis is a geologist with over 24 years’ experience in mineral exploration and resource development in gold, base
metals and industrial minerals. From 2008 – 2015, Mr Kairaitis was founding Managing Director and CEO of Aurelia Metals,
based in NSW, which evolved from a junior exploration company to a profitable gold and base metals producer. Mr Kairaitis
also has a strong exploration track record, leading the geological field team to the discovery of the Tomingley Gold deposit
in NSW in 2001 and the McPhillamy’s Gold deposit in 2006.
Other current directorships
Nil
Former directorships in last three years
Aurelia Metals Ltd (June 2008 – August 2015)
Mr Terrence Ronald Grammer – Appointed 25 July 2014
Non-executive
Experience and expertise
Mr Grammer is one of Australia’s most successful exploration geologist’s with a career spanning more than 40 years in
Australia, Africa, Asia and New Zealand.
Mr Grammer has been based in Western Australia since 1988 and has extensive professional experience in the exploration
of gold, base metals & industrial minerals and has an enviable record over a long period of time that includes being directly
involved in three highly successful exploration companies that made the transition from junior explorer to an ASX200 Company.
He was a founder and promoter in 1999 of Western Areas NL, and was exploration manager of the company from 2000 until
retiring in 2004. In 2000 he was joint winner of the AMEC Prospector of the Year Award for his role in the discovery of the
highly profitable Cosmos nickel deposit in 1997 that subsequently resulted in Jubilee Mines NL becoming a leading mid-tier
Australian mining company prior to its takeover by Xstrata.
In June 2010 Mr Grammer joined the Board of Sirius Limited that subsequently went on to make the Nova discovery. Mr
Grammer was also Chairman of South Boulder Mines Limited from May 08 through to August 2013 where he helped guide
the company through the discovery, development and funding of the Colluli potash deposit in Eritrea.
Other current directorships
Metal Tiger PLC (September 2014 – current)
Former directorships in last three years
Kin Mining NL (August 2011 – February 2017 )
Sirius Resources NL (June 2010 – September 2015)
Fortis Mining Limited (December 2010 – November 2011)
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 15
Company Secretary
The Company Secretary is Mr Justin Barton. Mr Barton was appointed Chief Financial Officer (CFO) and company secretary
on 24 August 2015.
Mr Barton is a Chartered Accountant, with over 20 years’ experience in accounting, international finance and mining and
has holds Board and Chief Financial Officer positions with other ASX listed mining companies.
Principal Activities
The principal activity during the year to 30 June 2017 was mineral exploration for gold, copper and nickel.
During the year the group continued its strategy of acquiring highly prospective mineral exploration projects and reviewing
and exploring these mineral exploration projects.
Operating And Financial Review
Review
The principal activity of the Company is mineral exploration. The objective of the Group, in the event of the discovery of a
mineral resource, would be the successful exploration and development of the resource.
Financial position
At the end of the financial year the Group had cash reserves of $690,505 (2016: $39,184). The Company acquired a number
of exploration projects for $3,091,311 and incurred expenditure on exploration and evaluation of $509,150 (2016: $416,669)
before write offs.
Results of Operations
The operating loss for the year, after providing for income tax was $1,343,462 (2016: $2,788,727).
Risks And Risk Management
The Company attempts to mitigate risks that may affect its future performance through a systematic process of identifying,
assessing, reporting and managing risks of corporate significance. Key operational risks and their management are recurring
items for discussion at Board meetings.
The following discusses the Company’s most significant business risks.
a)
Exploration
Whilst considered highly prospective, the Company’s tenements are early stage exploration tenements with limited
exploration undertaken on them to date.
Exploration is a high risk undertaking. The Company’s joint venture projects for copper, nickel and gold prospects in
Australia are in the preliminary stages of exploration and no assurance is given that exploration of its current projects
or any future projects will result in the delineation or discovery of a significant mineral resource. Even if a significant
mineral resource is identified, there can be no guarantee that it can be economically exploited.
b) Commodity prices
As an explorer for copper, gold, nickel and potentially other minerals, any successes of the Company are expected to
be closely related to the price of those and other commodities. Fluctuating prices in those commodities make market
prices for securities in the Company more volatile than for other investments.
Commodities prices are affected by numerous factors beyond the control of the Company. These factors include
worldwide and regional supply and demand for commodities, general world economic conditions and the outlook
for interest rates, inflation and other economic factors on both a regional and global basis. These factors may have
a positive or negative effect on the Company’s exploration, project development and production plans and activities,
together with the ability to fund those plans and activities.
DIRECTOR’S REPORT
c)
Environmental
The Company’s projects are subject to rules and regulations regarding environmental matters and the discharge of
hazardous wastes and materials. As with all mineral projects, the Company’s projects are expected to have a variety
of environmental impacts should development proceed. Development of any of the Company’s projects will be
dependent on the Company satisfying environmental guidelines and, where required, being approved by government
authorities.
The Company intends to conduct its activities in an environmentally responsible manner and in accordance with
all applicable laws, but may still be subject to accidents or other unforeseen events which may compromise its
environmental performance and which may have adverse financial implications.
d)
Future capital needs
The Company’s ability to raise further capital (equity or debt) within an acceptable time of a sufficient amount and
on terms acceptable to the Company will vary according to a number of factors, including prospectivity of projects
(existing and future), the results of exploration, subsequent feasibility studies, development and mining, stock market
and industry conditions and the price of relevant commodities and exchange rates.
No assurance can be given that future funding will be available to the Company on favourable terms (or at all). If
adequate funds are not available on acceptable terms, the Company may not be able to further develop its projects
and it may impact on the Company’s ability to continue as a going concern.
Significant Changes In The State Of Affairs
There has been no significant change in the state of affairs of the Company during the financial year.
Dividends
No dividends have been recommended by the Directors.
Matters Subsequent To The End Of The Financial Year
• On Friday 18 August 2017, the Company announced that it had received firm commitments to raise approximately
$2.5 million through the issue of up to 230 million shares at an issue price of 1.1 cents per share to a number of
sophisticated and institutional investors.
• The placement is being undertaken in two tranches, with the first tranche, comprising 140 million shares (raising
~$1.5million), completed on 24 August 2017. The second tranche, comprising 90 million shares (raising ~$1million), was
approved by shareholders at the General Meeting on 26 September 2017, is due to be completed on 3 October 2017.
•
At a General Meeting on 26 September 2017, the shareholders approved the following resolutions:
Д
Д
Д
Д
Д
Д
Approval and ratification of the prior issue of 84,000,000 shares;
Approval and ratification of the prior issue of 56,000,000 shares;
Approval for the Directors to issue up to 90,000,000 shares at an issue price of $0.011 per share (Tranche 2 above);
Approval for the issue of 6,000,000 Director Options to Mr Rimas Kairaitis;
Approval for the issue of 4,632,692 Shares at an issue price of $0.013 per Share to Mr Kevin Somes, or nominee,
in full satisfaction of the accrued and outstanding Director’s fees as at 30 June 2017, being $60,225; and
Approval for the issue of 2,369,231 Shares at a deemed issue price of $0.013 per Share to Mr Justin Barton in
full satisfaction of accrued and outstanding Salary as at 31 July 2017, being $30,800.
Likely Developments And Expected Results Of Operations
The Directors are not aware of any developments that might have a significant effect on the operations of the Company in
subsequent financial years not already disclosed in this report.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 17
Environmental Regulations
Great Western Exploration Limited conducts its exploration activities in an environmentally sensitive manner, and believes
it has adequate systems in place for the management of environmental requirements. The Company is not aware of any
breach of statutory conditions or obligations.
The Directors have considered the enacted National Greenhouse and Energy Reporting Act 2007 (the NGER Act) which
introduces a single national reporting framework for the reporting and dissemination of information about the greenhouse
gas emissions, greenhouse gas projects, and energy use and production of corporations. At the current stage of development,
the Directors have determined that the NGER Act will have no effect on the Company for the current, nor subsequent,
financial year. The Directors will reassess this position as and when the need arises.
Share Options
During the year ended 30 June 2017, the Company issued the following options:
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Grant Date
29/11/2016
29/11/2016
29/11/2016
29/11/2016
29/11/2016
29/11/2016
29/11/2016
29/11/2016
29/11/2016
No of Options
Exercise Price
2,000,000
10,000,000
2,000,000
10,000,000
2,000,000
12,000,000
4,000,000
8,500,000
25,000,000
$0.00
$0.02
$0.02
$0.04
$0.04
$0.06
$0.02
$0.04
$0.02
Expiry Date
31/12/2019
31/12/2017
31/12/2019
31/12/2018
31/12/2019
31/12/2019
31/12/2017
31/12/2018
31/06/2020
Directors’ Meetings
The Directors attended the following director meetings during the year:
K C Somes
J A Luckett
R Kairaitis
T R Grammer
I Kerr
C Mathieson
Meetings Eligible to Attend
Meetings Attended
10
10
-
10
5
5
10
10
-
9
4
5
DIRECTOR’S REPORT Directors’ Interests In The Shares And Options Of The Company
The particulars of Directors’ interest in shares and options are as at the date of this report.
K C Somes
J A Luckett
R Kairaitis
T R Grammer
Ordinary Shares
48,636,966
29,745,833
1,000,000
Options
6,000,000
6,000,000
-
-
6,000,000
Directors And Officers Insurance
The Company has made an agreement to indemnify all the Directors and Officers against all indemnifiable losses or liabilities
incurred by each Director and Officer in their capacities as Directors and Officers of the Company to the extent permitted
by the Corporations Act 2001.
The Company has taken out an insurance policy at a premium of $8,409 in relation to Directors and Officers indemnity.
Proceedings On Behalf Of Company
No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings
to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of
those proceedings.
The company was not a party to any such proceedings during the year.
Non-Audit Services
Bentleys provided non-audit services via the provision of an Independent Experts Report as part of the Vanguard Exploration
Limited acquisition during the year ended 30 June 2017.
The Directors are satisfied that the provision of non-audit services is compatible with the general standard of independence
for auditors imposed by the Corporations Act 2001.
Details of the amounts paid or payable to the auditor for audit and other services paid during the year are set out in Note 24.
Auditor’s Independence Declaration
A copy of the Auditor’s Independence Declaration, as required under section 307C of the Corporations Act 2001, is set out
on page 65.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 19
Remuneration Policy
This Remuneration Report outlines the director and executive remuneration arrangements of the Company in accordance
with the requirements of the Corporations Act 2001 and its Regulations. For the purposes of this report Key Management
Personnel (KMP) of the Company are defined as those persons having authority and responsibility for planning, directing
and controlling the major activities of the Company and the Company, directly or indirectly, including any director (whether
executive or otherwise) of the Company.
For the purposes of this report, the term “executive” encompasses the Chief Executive and senior executives.
i) Directors
K C Somes
J A Luckett
T R Grammer
R Kairaitis
I Kerr
C D Mathieson
Chairman (Non-executive)
Managing Director (Executive)
Director (Non-executive)
Director (Non-executive)
Director (Non-executive) (Appointed 29 November 2016: Resigned 31 May 2017)
Director (Non-executive) (Resigned 29 November 2016)
There were no other changes of key management personnel after reporting date and before the financial report was
authorised for issue.
The Company has established a Remuneration Committee, assumed by the Board, as a whole, which is responsible for
determining and reviewing the remuneration arrangements of the directors and executives.
The Board assesses the appropriateness of the nature and amount of emoluments of such Directors and executives on an
annual basis by reference to market and industry conditions.
In order for the Company to prosper, thereby creating shareholder value, the Company must be able to attract and retain
the highest calibre executives.
Executive and non-executive directors, other key management personnel and other senior employees have been granted
options over ordinary shares under the Company’s Employee Share Option Plan. The recipients of options are responsible
for growing the Company and increasing shareholder value. If they achieve this goal the value of the options granted to
them will also increase. Therefore the options provide an incentive to the recipients to remain with the Company and to
continue to work to enhance the Company’s value.
Due to the nature of the Company’s operations the current remuneration policy is not linked to the performance of
the Company.
Non-executive Directors remuneration
The Board seeks to set remuneration levels that provide the Company with the ability to attract and retain the highest
calibre professionals.
Fees and payments to non-executive Directors reflect the demands that are made on and the responsibilities of the Directors
from time to time.
Directors’ fees are determined by the Board within the aggregate Directors fee limit approved by shareholders. The
maximum currently approved by the Constitution stands at $250,000.
Remuneration in the form of share options issued under the Company’s Employee Share Option Plan is designed to reward
Directors and executives in a manner aligned to the creation of shareholder wealth. Subject to shareholders’ approval non-
executive directors may participate in the Company’s Employee Share Option Plan. The Board considers the grant of options
to be reasonable given the necessity to attract and retain the highest calibre professionals to the Company.
Non-executive Directors receive superannuation benefits in accordance with the Superannuation Guarantee Legislation.
Non-executive directors are permitted to salary sacrifice all or part of their fees.
Due to the nature of the Company’s operation i.e. mineral exploration and development, the remuneration of directors and
executives, at present, does not include performance-based incentives.
DIRECTOR’S REPORT
Executive Remuneration (including executive directors)
The Board aims to reward executives with a level and mix of remuneration commensurate with their position and
responsibilities to align the interests of executives with those of shareholders and to ensure that remuneration is market
competitive.
Remuneration consists of:
• Fixed Remuneration.
Being base salary, non-monetary benefits and superannuation. Fixed remuneration is reviewed annually.
• Variable remuneration – Long term incentives.
Being share options issued under the Company’s Employee Share Option Plan. The options do not have any vesting
conditions other than service conditions.
Remuneration issued in the form of share options issued under the Company’s Employee Share Option Plan is designed
to reward directors and executives in a manner aligned to the creation of shareholder wealth.
Due to the nature of the Company’s operation i.e. mineral exploration and development, the remuneration of directors and
executives, at present, does not include performance-based incentives.
The Company has entered into contracts of employment with the Managing Director, and standard contracts with other
executives, the details of which are set out below.
Name
Position
Contract Details
J A Luckett
Managing Director
Annual salary of $150,000, plus superannuation, reviewed annually.
The Company may terminate, other than for gross misconduct, with
1 month’s notice or payment in lieu of an amount of $12,500 on the
grounds of inadequate performance or prolonged illness, or 3 month’s
notice or payment in lieu of an amount of $37,500 for redundancy or the
Company being taken over.
Termination payments are not payable on resignation or under
circumstances of unsatisfactory performance.
The Remuneration Committee has approved an increase to Mr Luckett’s
salary to $250,000 plus superannuation, effective 1 July 2017, to better
align with comparable market conditions.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 21
Remuneration of Key Management Personnel
Short term
benefits
Salary &
Wages
Bonuses
Non-cash
benefits
Superannuation
Share
based
payments
Options
Total
Performance
related %
2017
Name of Director
Executive director
Jordan Luckett
$150,000
Non-executive director
Kevin Somes
Terry Grammer
Rimas Kairaitis(1)
Ian Kerr(2)
Craig Mathieson(3)
Totals
2016
$55,000
$35,000
$2,500
$85,000
$12,500
$340,000
Short term
benefits
Salary &
Wages
Name of Director
Executive director
Jordan Luckett
$150,000
Non-executive director
Kevin Somes
Terry Grammer
Craig Mathieson
Totals
$55,000
$35,000
$30,000
$270,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$14,250
$42,360 $206,610
20.5%
$5,225
$3,325
-
$8,075
$1,188
$42,360 $102,585
$42,360
$80,685
$2,500
$42,360 $135,435
$42,360
$56,048
$32,063
$211,800 $583,863
41.3%
52.5%
0.0%
31.3%
75.6%
Bonuses
Non-cash
benefits
Superannuation
Share
based
payments
Options
Total
Performance
related %
-
-
-
-
-
-
-
-
-
-
$11,400
- $161,400
0.0%
$5,225
$2,850
$3,325
$22,800
-
-
-
$60,225
$37,850
$33,325
- $292,800
0.0%
0.0%
0.0%
(1) Mr Kairaitis was appointed as a Director on 31 May 2017.
(2) Mr I Kerr was appointed as a Director on 29 November 2016 and resigned on 31 May 2017.
(3) Mr Mathieson resigned on 29 November 2016.
Options granted as part of remuneration
30 June 2017
Grant Date
No of Options
Exercise price
Expiry Date
Value of
Options
Granted
Jordan Luckett
29 November 2016
6,000,000
$0.02, $0.04, $0.06
31 December 2019
$42,360
Kevin Somes
29 November 2016
6,000,000
$0.02, $0.04, $0.06
31 December 2019
$42,360
Terry Grammer
29 November 2016
6,000,000
$0.02, $0.04, $0.06
31 December 2019
$42,360
Ian Kerr
29 November 2016
6,000,000
$0.02, $0.04, $0.06
31 December 2019
$42,360
Craig Mathieson
29 November 2016
6,000,000
$0.02, $0.04, $0.06
31 December 2019
$42,360
REMUNERATION REPORT (AUDITED)
30 June 2016
No options were granted as part of remuneration for the year ended 30 June 2016.
For details on the valuation of options, including models and assumptions used, refer to Note 19.
There were no alterations to the terms and conditions of options granted as remuneration since their grant date.
Option Holding of Key Management Personnel
30 June 2017
Directors
Jordan Luckett
Kevin Somes
Terry Grammer
Rimas Kairaitis(1)
Ian Kerr(2)
Craig Mathieson(3)
30 June 2016
Directors
Jordan Luckett
Kevin Somes
Terry Grammer
Craig Mathieson
Balance at
1 July 2016
Granted
Exercised/
Cancelled
Expired/
Other
Balance at 30
June 2017
Vested
-
-
-
-
-
-
-
6,000,000
6,000,000
6,000,000
-
6,000,000
6,000,000
30,000,000
-
-
-
-
-
-
-
-
-
-
-
-
(6,000,000)
6,000,000
6,000,000
6,000,000
-
6,000,000
-
100%
100%
100%
-
100%
100%
(6,000,000)
24,000,000
Balance at
1 July 2015
Granted
Exercised/
Cancelled
Expired/
Other
Balance at 30
June 2016
Vested
3,000,000
-
2,000,000
1,000,000
6,000,000
-
-
-
-
-
-
-
-
-
-
(3,000,000)
-
(2,000,000)
(1,000,000)
(6,000,000)
-
-
-
-
-
-
-
-
-
-
(1) Mr Kairaitis was appointed as a Director on 31 May 2017.
(2) Mr I Kerr was appointed as a Director on 29 November 2016 and resigned on 31 May 2017.
(3) Mr Mathieson resigned on 29 November 2016.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 23
Shareholdings of Key Management Personnel
30 June 2017
Directors
Jordan Luckett
Kevin Somes
Terry Grammer
Rimas Kairaitis(1)
Ian Kerr(2)
Craig Mathieson(3)
30 June 2016
Directors
Jordan Luckett
Kevin Somes
Terry Grammer
Craig Mathieson
Balance
1 July 2016
Granted as
Remuneration
On exercise
of Options
Net Change
Other
Balance
30 June 2017
22,783,333
24,389,572
6,962,500
3,764,062
-
-
-
-
-
-
28,218,496
75,391,401
2,053,125
12,779,687
-
-
-
-
-
-
-
-
20,483,332(4)
-
1,000,000
25,808,336(4)
(30,271,621)
29,745,833
48,636,966
-
1,000,000
25,808,336
-
17,020,047
105,191,135
Balance
1 July 2015
Granted as
Remuneration
On exercise
of Options
Net Change
Other
Balance
30 June 2016
8,538,333
8,366,972
-
14,933,496
31,838,801
14,245,000
6,022,600
-
3,285,000
23,552,600
-
-
-
-
-
-
10,000,000
-
10,000,000
20,000,000
22,783,333
24,389,572
-
28,218,496
75,391,401
(1) Mr Kairaitis was appointed as a Director on 31 May 2016.
(2) Mr I Kerr was appointed as a Director on 29 November 2016 and resigned on 31 May 2017.
(3) Mr Mathieson resigned on 29 November 2016.
(4) Shares acquired as from Vanguard acquisition
END OF REMUNERATION REPORT (AUDITED)
REMUNERATION REPORT (AUDITED) Directors’ Report (continued)
This Report of Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of the Directors.
Dated this 29th day of September 2017
K C Somes
Chairman
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 25
Corporate Governance Statement
For the year ended 30 June 2017
The Board of Directors of Great Western Exploration Limited is responsible for Corporate Governance of the company. The
Board guides and monitors the business and affairs of the Company on behalf of the shareholders by whom they are elected
and to whom they are accountable.
Due to the size and nature of the Company’s activities, the Board as a whole is involved in matters where larger Boards
would ordinarily operate through sub-committees. Some of the best practices recommended are not cost effective for
adoption in a small company environment.
The Board is committed to the standards of Corporate Governance as set out in the ASX Corporate Governance Council’s
Principles and Recommendations.
Structure Of The Board
The skills, experience and expertise relevant to the position of Director held by each director in office at the date of the
Annual Report is set out in the Directors’ Report.
Directors of Great Western Exploration Limited are considered to be independent when they are independent of management
and free from any business or other relationship that could materially interfere with or could reasonably be perceived to
materially interfere with the exercise of their unfettered and independent judgement.
The following directors were considered to be independent during the year:
Mr K C Somes
Mr T R Grammer
Mr R Kairaitis
Mr I Kerr
Mr C D Mathieson
There are procedures in place to enable Directors to seek independent professional advice, at the expense of the Company,
on issues arising in the course of their duties as Directors.
Set out below is the term in office held by each Director at the date of this report:
Mr K C Somes
Mr J A Luckett
Non-executive Director
Appointed 11 October 2013
Managing Director
Appointed 22 January 2008
Mr T R Grammer
Non-executive Director
Appointed 25 July 2014
Mr R Kairaitis
Mr I Kerr
Non-executive Director
Appointed 31 May 2017
Non-executive Director
Mr C D Mathieson
Non-executive Director
Appointed 29 November 2016;
Resigned 31 May 2017
Appointed 9 December 2011;
Resigned 29 November 2016
Nomination Committee
The function of establishing the criteria for Board membership, nomination of Directors and review of Board membership,
is performed by the Board as a whole, until such time as the Company is of a sufficient size to warrant the establishment of
a separate Nomination Committee.
The composition of the Board is determined ensuring that there is an appropriate combination of corporate and operational
expertise and qualifications.
CORPORATE GOVENANCE STATEMENT
Performance
An evaluation of Directors is conducted by the Board on an annual basis. The Managing Director is responsible for the review
of key executives.
Remuneration
The Board as a whole is responsible for determining and reviewing the arrangements for Directors and Executive management.
The Board assesses the appropriateness of the nature and amount of emoluments of such Officers on an annual basis by
reference to market and industry conditions and taking into account the Company’s operational and financial performance.
Details of remuneration received by Directors and executives are included in the Remuneration Report contained within the
Directors’ Report.
Code Of Conduct
The Company has established its Code of Conduct to ensure that directors and senior executives are provided with clear
principles setting out the expectations of their conduct.
It is expected that directors and senior executives will actively promote the highest standards of ethics, honesty and integrity
in carrying out their roles and responsibilities for the Company.
In dealings with the Company’s suppliers, competitors, customers and other organisations with which they have contact,
they will exercise fairness and integrity, and will observe the form and substance of the regulatory environment in which
the Company operates.
Directors and senior executives must, at all times, act in the interests of the Company and will ensure compliance with the
laws and regulations in relation to the jurisdictions in which the Company operates.
Directors and senior executives have a role in ensuring compliance with this code of conduct, and therefore should be
vigilant and report any breach of this code of conduct.
For further information on the Company’s Code of Conduct refer to our website.
Diversity Policy
Diversity includes, but is not limited to, gender, age, ethnicity and cultural background. The Company is committed to
workplace diversity and recognises the benefits arising from employee and board diversity including a broader pool of
high quality employees, improving employee retention, accessing different perspectives and ideas and benefiting from all
available talent.
The Board is responsible for developing measurable objectives and strategies to meet the objectives and the monitoring of
the progress of the objectives.
Due to the present scale of operations and number of staff the Company has not yet set measurable objectives for achieving
gender diversity. The Board will review progress against any objectives identified on an annual basis.
Details of women employed within the Company are as follows:
Women on the Board
Women in senior management roles
Women employees in the Company
Trading Policy
No.
-
-
-
%
-
-
-
Under the Company’s Securities Trading Policy Directors and Key Management Personnel must not trade in any securities of the
Company at any time when they are in possession of information which is not generally available to the market and, if it were
generally available to the market, would be likely to have a material effect on the price or value of the Company’s securities.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 27
Directors and Key Management Personnel are permitted to deal in the securities of the Company throughout the year
except during the following periods:
In the two weeks prior to, and 24 hours after the release of the Company’s Annual Financial Report;
In the two weeks prior to, and 24 hours after the release of the Interim Financial Report of the Company;
In the two weeks prior to, and 24 hours after the release of the Company’s Quarterly Reports (together the Block out Period)
Any Director wishing to deal in the Company’s securities must obtain the prior written approval of the Chairman or the
Board before doing so.
If the Chairman wishes to deal in the Company’s securities the Chairman must obtain the prior approval of the Board before
doing so.
Any Key Management Personnel wishing to deal in the Company’s securities must obtain the prior written approval of the
Managing Director before doing so.
ASX Listing Rules require the Company to notify ASX within 5 business days after any dealing in the securities of the Company
The Securities Trading Policy can be found on the company’s website.
Audit Committee
The Board has not established an Audit Committee.
The role of the Audit Committee in the establishment of effective internal control framework to safeguard the Company’s
assets, maintain proper accounting records and ensure the reliability of financial information was performed by the Board
as a whole during the financial year.
The Board as a whole deals directly with and receives reports from the Company’s external auditors in relation to the Annual
financial reports and other statutory requirements.
Risk Management
The Board as a whole carries out the role of Risk Management. The Board evaluates and monitors areas of operational and
financial risk.
The Board determines the Company’s risk profile and is responsible for overseeing and approving risk management strategy
and policies, internal compliance and internal control. The effectiveness of controls is monitored and reviewed regularly.
The Chief Executive Officer and Chief Financial Officer, or equivalent, have provided a written statement to the Board that
in their view the Company’s financial report is founded on a sound system of risk management and internal compliance and
control which implements the financial policies adopted by the Board and that the company’s risk management and internal
compliance and control system is operating effectively in all material respects.
Compliance With Disclosure Requirements
The Company is committed to meeting its disclosure obligations and to the promotion of investor confidence in its securities.
It has in place written policies and procedures to ensure compliance with ASX Listing Rule 3.1.
The Company will immediately notify the market by announcement to the ASX of any information concerning the business
of Great Western Exploration Limited that a reasonable person would expect to have a material effect on the price or value
of the Company’s securities.
Shareholders
The Board endeavours to ensure that shareholders are fully informed of all activities affecting the Company. Information is
conveyed to shareholders via the Annual Report, Quarterly Reports and other announcements.
This information is available on the Company’s website, www.greatwesternexploration.com.au, and in hard copy upon request.
The Board encourages attendance and participation of shareholders at the Annual General and other General Meetings of
the Company.
CORPORATE GOVENANCE STATEMENT
The Company’s external auditor is requested to attend the Annual General Meeting and be available to take questions about
the conduct of the audit and the content of the Auditors’ Report.
Compliance With Best Practice Recommendations
The Directors of the Group support and adhere to the principles of corporate governance where possible, recognising the
need for the highest standard of corporate behaviour and accountability.
For further information on the corporate governance policies adopted by Great Western Exploration Limited refer to our
website: www.greatwesternexploration.com.au
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 29
Consolidated Statement of Financial Position
As at 30 June 2017
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other financial assets
TOTAL CURRENT ASSETS
NON CURRENT ASSETS
Property, plant and equipment
Mineral exploration expenditure
TOTAL NON CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
2017
$
2016
$
8
9
10
11
12
13
14
15
690,505
145,661
48,796
884,962
39,184
12,773
400
52,357
10,553
6,525,098
6,535,651
6,950
3,611,559
3,618,509
7,420,613
3,670,866
656,701
656,701
530,334
530,334
656,701
530,334
6,763,912
3,140,532
24,500,456
710,823
20,244,437
-
(18,447,367)
(17,103,905)
6,763,912
3,140,532
The above statement of financial position should be read in conjunction with the accompanying notes.
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For The Year Ended 30 June 2017
Interest received
Proceeds on farm-in arrangement
Other income
Employee benefit expense
Administration expenses
Directors’ fees
Depreciation
Compliance and regulatory expenses
Share based payments
Mineral exploration written off
Exploration & evaluation expenditure not capitalised
Project acquisition costs
Loss before income tax
Income tax expense
Loss for the year
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating foreign controlled entities
Total comprehensive income for the year
Basic loss per share (cents per share)
Note
5
12
6
7
2017
$
1,106
500,000
17,533
(64,605)
(224,295)
(150,000)
(4,892)
(31,493)
(618,629)
(686,922)
(3,063)
(78,202)
2016
$
151
-
136,824
(142,458)
(250,805)
(150,000)
(10,930)
(43,790)
-
(2,327,719)
-
-
(1,343,462)
(2,788,727)
-
-
(1,343,462)
(2,788,727)
-
-
(1,343,462)
(2,788,727)
(0.32)
(1.24)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 31
Consolidated Statement of Changes in Equity
For The Year Ended 30 June 2017
30 June 2017
Balance At 1 July 2016
Loss for the year
Total comprehensive income for the year
Option issues
Share based payments
Shares issued during the year
Transaction costs
Acquisition of Tenements
Balance at 30 June 2017
Issued Capital
$
20,244,437
-
-
-
227,575
1,243,100
(55,986)
2,841,330
24,500,456
Share Option
Reserve
Accumulated
Losses
$
-
-
-
$
(17,103,905)
(1,343,462)
(1,343,462)
618,630
-
-
-
92,193
710,823
-
-
-
-
-
(18,447,367)
Total
Equity
$
3,140,532
(1,343,462)
(1,343,462)
618,630
227,575
1,243,100
(55,986)
2,933,523
6,763,912
Issued Capital
Share Option
Reserve
Accumulated
Losses
Total Equity
30 June 2016
$
$
$
$
Balance At 1 July 2015
Loss for the year
Total comprehensive income for the year
Transfer of expired options
Share based payments
Shares issued during the year
Transaction costs
Balance at 30 June 2016
19,496,573
1,682,618
(15,997,796)
-
-
-
-
-
(1,682,618)
(2,788,727)
(2,788,727)
1,682,618
235,526
515,000
(2,662)
20,244,437
-
-
-
-
5,181,395
(2,788,727)
(2,788,727)
-
235,526
515,000
(2,662)
-
-
-
(17,103,905)
3,140,532
The above statement of changes in equity should be read in conjunction with the accompanying notes.
Consolidated Statement of Cash Flows
For The Year Ended 30 June 2017
Cash flows from operating activities
Cash payments to suppliers and employees
Payments for exploration and evaluation expenditure
Interest received
Interest and other finance costs paid
Net cash used in operating activities
Cash flows from investing activities
Proceeds from disposal of shares during the period
Deposits paid on exploration
Vanguard acquisition cash reserves
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares and options
Share issue costs
Net cash provided by financing activities
Note
2017
$
2016
$
(426,582)
(473,879)
1,068
(857)
(325,752)
(283,423)
9,686
(4,804)
16
(900,250)
(604,293)
451,604
(107,314)
41,375
385,665
1,243,100
(77,194)
1,165,906
-
-
-
-
515,000
(2,662)
512,338
Net increase in cash held
651,321
(91,955)
Cash at the beginning of the financial year
39,184
131,139
Cash at the end of the financial year
8
690,505
39,184
The above statement of cash flows should be read in conjunction with the accompanying notes.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 33
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017
These financial statements and notes represent those of Great Western Exploration Limited (‘the
Company’) and its controlled entities (‘the Group’).
The financial statements were authorised for issue on 29 September 2017 by the Directors of the Company.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in
accordance with Australian Accounting Standards, Australian Accounting Interpretations, other
authoritative pronouncements of the Australian Accounting Standards Board (AASB) and the
Corporations Act 2001. The Group is a for-profit entity for financial reporting purposes under Australian
Accounting Standards.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result
in financial statements containing relevant and reliable information about transactions, events and
conditions. Compliance with Australian Accounting Standards ensures that the financial statements
and notes also comply with International Financial Reporting Standards as issued by the IASB.
Material accounting policies adopted in the preparation of these financial statements are presented
below and have been consistently applied unless stated otherwise.
Except for cash flow information, the financial statements have been prepared on an accruals basis
and are based on historical costs, modified, where applicable, by the measurement at fair value of
selected non-current assets, financial assets and financial liabilities.
a) Going Concern
The financial report has been prepared on the going concern basis, which contemplates the
continuity of normal business activity, and the realisation of assets and the settlement of liabilities
in the ordinary course of business.
The Group incurred a loss for the year of $1,343,462 (2016: $2,788,727). During the year the
company raised $1,187,114 after issue costs, by the way of share placements in August 2016,
December 2016 and March 2017. The Group has a working capital surplus of $228,261 at 30 June
2017 (30 June 2016: Deficit $477,977). The Group has ongoing expenditures in respect of
administration costs and exploration and evaluation expenditure on its Australian exploration
projects.
On 18 August 2017, the Company announced that it had received firm commitments to raise
approximately $2.5 million through the issue of up to 230 million shares at an issue price of 1.1
cents per share to a number of sophisticated and institutional investors. The Place is being
undertaken in two tranches, with the first tranche, comprising 140 million shares (raising
~$1.5million), completed on 24 August 2017. The second tranche, comprising 90 million shares
(raising ~$1million), is due to be completed on 3 October 2017.
The directors have prepared a cash flow forecast, which indicates that the Group will have
sufficient cash flows to meet all commitments (including those at Note 21) and working capital
requirements for the 12 month period from the date of signing this financial report.
The Directors believe that at the date of signing of the financial statements there are reasonable
grounds to believe that, having regard to the matters set out above, the Group will be able to raise
sufficient additional funds to meet its obligations as and when they fall due and continue to proceed
with the Group’s objectives beyond the currently committed expenditure for the 12-month period
from the date of signing this financial report. In arriving at this conclusion, the Directors are
comfortable that, as and when required, they will be able to raise equity to provide sufficient
working capital, and the directors have resolved to not call on outstanding amounts from the
company until the company is in a financial position to repay these amounts.
23
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Should the Directors not achieve the matters as set out above, there is material uncertainty
whether the Group will continue as a going concern and therefore whether they will realise their
assets and extinguish their liabilities in the normal course of business and at the amounts stated
in the financial report.
The financials do not include any adjustments relating to the recoverability and classification of
recorded asset amounts and classification of liabilities that might be necessary, should the Group
not continue as a going concern and meet its debts as and when they fall due.
b) Principles of Consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities
controlled by Great Western Exploration Limited at the end of the reporting period. A controlled
entity is any entity over which Great Western Exploration Limited has the ability and right to govern
the financial and operating policies so as to obtain benefits from the entity’s activities.
Where controlled entities have entered or left the Group during the year, the financial performance
of those entities is included only for the period of the year that they were controlled. A list of
controlled entities is contained in Note 20 to the financial statements.
In preparing the consolidated financial statements, all intragroup balances and transactions
between entities in the consolidated group have been eliminated in full on consolidation.
Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to
a parent, are reported separately within the equity section of the consolidated statement of financial
position and statement of comprehensive income. The non-controlling interests in the net assets
comprise their interests at the date of the original business combination and their share of changes
in equity since that date.
Business combinations
Business combinations occur where an acquirer obtains control over one or more businesses.
A business combination is accounted for by applying the acquisition method, unless it is a
combination involving entities or businesses under common control. The business combination
will be accounted for from the date that control is attained, whereby the fair value of the identifiable
assets acquired and liabilities (including contingent liabilities) assumed is recognised (subject to
certain limited exemptions).
When measuring the consideration transferred in the business combination, any asset or liability
resulting from a contingent consideration arrangement is also included. Subsequent to initial
recognition, contingent consideration classified as equity is not remeasured and its subsequent
settlement is accounted for within equity. Contingent consideration classified as an asset or liability
is remeasured in each reporting period to fair value, recognising any change to fair value in profit
or loss, unless the change in value can be identified as existing at acquisition date.
All transaction costs incurred in relation to business combinations are expensed to the Statement
of Profit or Loss and Other Comprehensive income.
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain
purchase.
Goodwill
(i)
(ii)
(iii)
The consideration transferred;
Any non-controlling interest, and
The acquisition date fair value of any previously held equity interest over the acquisition
date fair value of net identifiable assets acquired.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 35
24
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The acquisition date fair value of the consideration transferred for a business combination plus the
acquisition date fair value of any previously held equity interest shall form the cost of the investment
in the separate financial statements.
Fair value uplifts in the value of pre-existing equity holdings are taken to the statement of
comprehensive income. Where changes in the value of such equity holdings had previously been
recognised in other comprehensive income, such amounts are recycled to profit or loss.
The amount of goodwill recognised on acquisition of each subsidiary in which the Company holds
less than a 100% interest will depend on the method adopted in measuring the non-controlling
interest. The Company can elect in most circumstances to measure the non-controlling interest in
the acquire either at fair value (full goodwill method) or at the non-controlling interest’s
proportionate share of the subsidiary’s identifiable net assets (proportionate interest method). In
such circumstances, the Company determines which method to adopt for each acquisition and this
is stated in the respective notes to these financial statements disclosing the business combination.
Under the full goodwill method, the vair value of the non-controlling interests is determined using
valuation techniques which make the maximum use of market information where available. Under
this method, goodwill attributable to the non-controlling interests is recognised in the consolidated
financial statements.
Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill on acquisition of
associates is included in investments in associates.
Goodwill is tested for impairment annually and is allocated to the Company’s cash-generating units
or groups of cash-generating units, representing the lowest level at which goodwill is monitored
not larger than an operating segment. Gains and losses on the disposal of an entity include the
carrying amount of goodwill related to the entity disposed of.
c) Application of New and Revised Accounting Standards
New, revised or amending Accounting Standards and Interpretations adopted
The Group has adopted all of the new, revised or amending Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board (“AASB”) that are
mandatory for the current reporting period. The adoption of these Accounting Standards and
Interpretations did not have any significant impact on the financial performance or position of the
Group during the financial year.
Any new, revised or amending Accounting Standards or Interpretations that are not yet
mandatory have not been early adopted.
New Accounting Standards for Application in Future Periods
Accounting Standards issued by the AASB that are not yet mandatorily applicable to the Group,
together with an assessment of the potential impact of such pronouncements on the Group when
adopted in future periods, are discussed below:
AASB 9: Financial Instruments and associated Amending Standards (applicable to annual
reporting periods beginning on or after 1 January 2018).
The Standard will be applicable retrospectively and includes revised requirements for the
classification and measurement of financial instruments, revised recognition and derecognition
requirements for financial instruments and simplified requirements for hedge accounting.
The key changes that may affect the Group on initial application include certain simplifications to
the classification of financial assets, simplifications to the accounting of embedded derivatives,
upfront accounting for expected credit loss, and the irrevocable election to recognise gains and
losses on investments in equity instruments that are not held for trading in other comprehensive
income.
25
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The acquisition date fair value of the consideration transferred for a business combination plus the
AASB 15: Revenue from Contracts with Customers (applicable to annual reporting periods
acquisition date fair value of any previously held equity interest shall form the cost of the investment
beginning on or after 1 January 2018,).
in the separate financial statements.
When effective, this Standard will replace the current accounting requirements applicable to
Fair value uplifts in the value of pre-existing equity holdings are taken to the statement of
revenue with a single, principles-based model. Apart from a limited number of exceptions,
comprehensive income. Where changes in the value of such equity holdings had previously been
including leases, the new revenue model in AASB 15 will apply to all contracts with customers as
recognised in other comprehensive income, such amounts are recycled to profit or loss.
well as non-monetary exchanges between entities in the same line of business to facilitate sales
to customers and potential customers.
The amount of goodwill recognised on acquisition of each subsidiary in which the Company holds
less than a 100% interest will depend on the method adopted in measuring the non-controlling
The core principle of the Standard is that an entity will recognise revenue to depict the transfer
interest. The Company can elect in most circumstances to measure the non-controlling interest in
of promised goods or services to customers in an amount that reflects the consideration to which
the acquire either at fair value (full goodwill method) or at the non-controlling interest’s
the entity expects to be entitled in exchange for the goods or services. To achieve this objective,
proportionate share of the subsidiary’s identifiable net assets (proportionate interest method). In
AASB 15 provides the following five-step process:
such circumstances, the Company determines which method to adopt for each acquisition and this
identify the contract(s) with a customer;
-
is stated in the respective notes to these financial statements disclosing the business combination.
identify the performance obligations in the contract(s);
-
determine the transaction price;
-
Under the full goodwill method, the vair value of the non-controlling interests is determined using
allocate the transaction price to the performance obligations in the contract(s); and
-
valuation techniques which make the maximum use of market information where available. Under
recognise revenue when (or as) the performance obligations are satisfied.
-
this method, goodwill attributable to the non-controlling interests is recognised in the consolidated
financial statements.
The transitional provisions of this Standard permit an entity to either: restate the contracts that
existed in each prior period presented per AASB 108: Accounting Policies, Changes in
Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill on acquisition of
Accounting Estimates and Errors (subject to certain practical expedients in AASB 15); or
associates is included in investments in associates.
recognise the cumulative effect of retrospective application to incomplete contracts on the date of
initial application. There are also enhanced disclosure requirements regarding revenue.
Goodwill is tested for impairment annually and is allocated to the Company’s cash-generating units
Although the directors anticipate that the adoption of AASB 15 may have an impact on the
or groups of cash-generating units, representing the lowest level at which goodwill is monitored
Group's financial statements, it is impracticable at this stage to provide a reasonable estimate of
not larger than an operating segment. Gains and losses on the disposal of an entity include the
such impact.
carrying amount of goodwill related to the entity disposed of.
AASB 16: Leases (applicable to annual reporting periods beginning on or after 1 January 2019).
c) Application of New and Revised Accounting Standards
inclusion of variable lease payments that depend on an index or a rate in the initial
When effective, this Standard will replace the current accounting requirements applicable to
leases in AASB 117: Leases and related Interpretations. AASB 16 introduces a single lessee
New, revised or amending Accounting Standards and Interpretations adopted
accounting model that eliminates the requirement for leases to be classified as operating or
The Group has adopted all of the new, revised or amending Accounting Standards and
finance leases.
Interpretations issued by the Australian Accounting Standards Board (“AASB”) that are
mandatory for the current reporting period. The adoption of these Accounting Standards and
The main changes introduced by the new Standard are as follows:
Interpretations did not have any significant impact on the financial performance or position of the
recognition of a right-of-use asset and liability for all leases (excluding short-term leases
-
Group during the financial year.
with less than 12 months of tenure and leases relating to low-value assets);
depreciation of right-of-use assets in line with AASB 116 : Property, Plant and
-
Any new, revised or amending Accounting Standards or Interpretations that are not yet
Equipment in profit or loss and unwinding of the liability in principal and interest components;
mandatory have not been early adopted.
-
measurement of the lease liability using the index or rate at the commencement date;
New Accounting Standards for Application in Future Periods
application of a practical expedient to permit a lessee to elect not to separate non-lease
-
Accounting Standards issued by the AASB that are not yet mandatorily applicable to the Group,
components and instead account for all components as a lease; and
together with an assessment of the potential impact of such pronouncements on the Group when
-
adopted in future periods, are discussed below:
The transitional provisions of AASB 16 allow a lessee to either retrospectively apply the Standard
to comparatives in line with AASB 108 or recognise the cumulative effect of retrospective
AASB 9: Financial Instruments and associated Amending Standards (applicable to annual
application as an adjustment to opening equity on the date of initial application.
reporting periods beginning on or after 1 January 2018).
Although the directors anticipate that the adoption of AASB 16 will impact the Group's financial
statements, it is impracticable at this stage to provide a reasonable estimate of such impact.
The Standard will be applicable retrospectively and includes revised requirements for the
classification and measurement of financial instruments, revised recognition and derecognition
requirements for financial instruments and simplified requirements for hedge accounting.
The key changes that may affect the Group on initial application include certain simplifications to
Cash and cash equivalents in the statement of financial position comprise cash at bank and in
the classification of financial assets, simplifications to the accounting of embedded derivatives,
hand and short-term deposits with an original maturity of six months or less that are readily
upfront accounting for expected credit loss, and the irrevocable election to recognise gains and
convertible to known amounts of cash and which are subject to an insignificant risk of changes in
losses on investments in equity instruments that are not held for trading in other comprehensive
value.
income.
inclusion of additional disclosure requirements.
d) Cash and Cash Equivalents
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 37
25
26
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
e) Trade and Other Receivables
The fair values of investments that are actively traded in organised financial markets are
determined by reference to quoted market bid prices at the close of business on the balance sheet
Trade receivables, which generally have 30 day terms, are recognised initially at fair value and
date. Investments with no active market, and whose fair values cannot be reliably measured, shall
subsequently measured at amortised cost using the effective interest method, less an allowance
be measured at cost.
for impairment. Collectability of trade receivables is reviewed on an ongoing basis. Debts that are
known to be uncollectible are written off when identified. An impairment provision is recognised
At each reporting date, the Company assesses whether there is objective evidence that a financial
when there is objective evidence that the Company will not be able to collect the receivable.
instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged
decline in the value of the instrument is considered to determine whether an impairment has arisen.
Investments and Other Financial Assets
Impairment losses are recognised in the Statement of Comprehensive Income.
f)
g) Property, Plant and Equipment
Investments and financial assets in the scope of AASB 139 Financial Instruments: Recognition
and Measurement are categorised as either financial assets at fair value through profit or loss,
loans and receivables, held-to-maturity investments, or available-for-sale financial assets.
Plant and equipment is stated at historical cost less accumulated depreciation and any
When financial assets are recognised initially, they are measured at fair value, plus, in the case of
accumulated impairment losses.
assets not at fair value through profit or loss, directly attributable transaction costs.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as
All regular way purchases and sales of financial assets are recognised on the trade date i.e. the
follows:
date that the Company commits to purchase the asset. Regular way purchases or sales are
purchases or sales of financial assets under contracts that require delivery of the assets within the
Plant and Equipment – over 6 to 15 years
year established generally by regulation or convention in the market place. Financial assets are
Motor Vehicles – over 4 years
derecognised when the right to receive cash flows from the financial assets have expired or been
Computer Equipment – over 3 years
transferred.
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if
(i)
appropriate, at each financial year end.
Financial assets at fair value through profit or loss
Financial assets classified as held for trading are included in the category ‘financial assets at fair
An item of property, plant and equipment is derecognised upon disposal or when no further future
value through profit or loss’. Financial assets are classified as held for trading if they are acquired
economic benefits are expected from its use or disposal.
for the purpose of selling in the near term with the intention of making a profit. Derivatives are also
classified as held for trading unless they are designated as effective hedging instruments. Gains
Any gain or loss arising on de-recognition of the asset (calculated as the difference between the
or losses on investments held for trading are recognised in the profit or loss and the related assets
net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year
are classified as current assets in the Statement of Financial Position.
the asset is derecognised.
Loans and receivables
h) Exploration and Evaluation Expenditure
(ii)
Held-to-maturity investments
Loans and receivables including loan notes and loans to key management personnel are non-
Exploration and evaluation costs are capitalised as exploration and evaluation assets on a project
derivative financial assets with fixed or determinable payments that are not quoted in an active
by project basis pending determination of the technical feasibility and commercial viability of the
market. Such assets are carried at amortised cost using the effective interest method. Gains and
project. The capitalised costs are presented as either tangible or intangible exploration and
losses are recognised in profit or loss when the loans and receivables are derecognised or
evaluation assets according to the nature of the assets acquired.
impaired. These are included in current assets except for those maturities greater than 12 months
after balance date, which are classified as non-current.
When a licence is relinquished or a project abandoned, the related costs are recognised in the
Statement of Comprehensive Income immediately.
(iii)
Exploration and evaluation assets shall be assessed for impairment when facts and circumstances
Held-to-maturity investments are non-derivative financial assets that have fixed maturities and
suggest that the carrying amount of an exploration and evaluation asset may exceed its
fixed or determinable payments, and it is the Group’s intention to hold these investments to
maturity. They are subsequently measured at amortised cost.
recoverable amount. When facts and circumstances suggest that the carrying amount exceeds
Held-to-maturity investments are included in non-current assets, except for those which are
the recoverable amount an impairment loss is recognised in the Statement of Comprehensive
expected to mature within 12 months after the end of the reporting period. All other investments
Income.
are classified as current assets.
Interests in Joint Ventures
(iv)
The Company’s shares of the assets, liabilities, revenue and expenses of jointly controlled
Available-for-sale investments are those non-derivative financial assets that are designated as
operations have been included in the appropriate line items of the consolidated financial
available-for-sale or are not classified as any of the three preceding categories. After initial
statements.
recognition available-for sale investments are measured at fair value with gains or losses being
recognised as a separate component of equity until the investment is derecognised or until the
investment is determined to be impaired, at which time the cumulative gain or loss previously
reported in equity is recognised in profit or loss.
Available-for-Sale Investments
28
i)
27
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The fair values of investments that are actively traded in organised financial markets are
determined by reference to quoted market bid prices at the close of business on the balance sheet
date. Investments with no active market, and whose fair values cannot be reliably measured, shall
be measured at cost.
At each reporting date, the Company assesses whether there is objective evidence that a financial
instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged
decline in the value of the instrument is considered to determine whether an impairment has arisen.
Impairment losses are recognised in the Statement of Comprehensive Income.
g) Property, Plant and Equipment
Plant and equipment is stated at historical cost less accumulated depreciation and any
accumulated impairment losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as
follows:
Plant and Equipment – over 6 to 15 years
Motor Vehicles – over 4 years
Computer Equipment – over 3 years
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if
appropriate, at each financial year end.
An item of property, plant and equipment is derecognised upon disposal or when no further future
economic benefits are expected from its use or disposal.
Any gain or loss arising on de-recognition of the asset (calculated as the difference between the
net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year
the asset is derecognised.
h) Exploration and Evaluation Expenditure
Exploration and evaluation costs are capitalised as exploration and evaluation assets on a project
by project basis pending determination of the technical feasibility and commercial viability of the
project. The capitalised costs are presented as either tangible or intangible exploration and
evaluation assets according to the nature of the assets acquired.
When a licence is relinquished or a project abandoned, the related costs are recognised in the
Statement of Comprehensive Income immediately.
Exploration and evaluation assets shall be assessed for impairment when facts and circumstances
suggest that the carrying amount of an exploration and evaluation asset may exceed its
recoverable amount. When facts and circumstances suggest that the carrying amount exceeds
the recoverable amount an impairment loss is recognised in the Statement of Comprehensive
Income.
i)
Interests in Joint Ventures
The Company’s shares of the assets, liabilities, revenue and expenses of jointly controlled
operations have been included in the appropriate line items of the consolidated financial
statements.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 39
28
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
j)
Impairment of Assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the
carrying amount exceeds its recoverable amount. An impairment loss is recognised for the amount
by which the asset’s carrying amount exceeds it recoverable amount. Recoverable amount is the
higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are Group at the lowest levels for which there are separately identifiable cash
inflows that are largely independent of the cash inflows from other assets or Group of assets (cash
–generating units). Non-financial assets other than goodwill that suffered an impairment are tested
for possible reversal of the impairment whenever events or changes in circumstances indicate that
the impairment may have reversed.
k) Trade and other Payables
Trade and other payables are carried at amortised cost; due to their short term nature they are not
discounted. They represent liabilities for goods and services provided to the Company prior to the
end of the financial year that are unpaid and arise when the Company becomes obliged to make
future payments in respect of the purchase of these goods and services. The amounts are
unsecured and are usually paid within 30 days of recognition.
l) Provisions and Employee Leave Benefits
Provisions are recognised when the Company has a present obligation (legal or constructive) as
a result of a past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation.
When the Company expects some or all of the provision to be reimbursed, for example under an
insurance contract, the reimbursement is recognised as a separate asset but only when the
reimbursement is virtually certain. The expense relating to any provision is presented in the
Statement of Comprehensive Income net of any reimbursement.
Provisions are measured at the present value of management’s best estimate of the expenditure
required to settle the present obligation at the balance sheet date. If the effect of the time value of
money is material, provisions are discounted using a current pre-tax rate that reflects the time
value of money and the risks specific to the liability. The increase in the provision resulting from
the passage of time is recognised in finance costs.
Employee Leave Benefits
(i) Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating
sick leave expected to be settled within 12 months of the reporting date are recognised in respect
of employees’ services up to the reporting date. They are measured at the amounts expected to
be paid when the liabilities are settled. Expenses for non-accumulating sick leave are recognised
when the leave is taken and are measured at the rates paid or payable.
(ii) Long service leave
The liability for long service leave is recognised and measured as the present level of expected
future payments to be made in respect of services provided by employees up to the reporting date
using the projected unit credit method. Consideration is given to expected future wage and salary
levels, experience of employee departures, and periods of service. Expected future payments are
discounted using market yields at the reporting date on national government bonds with terms to
maturity and currencies that match, as closely as possible, the estimated future cash outflows.
29
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
m) Share Based Payment Transactions
(i) Equity settled transaction:
The Company provides benefits to its employees (including key management personnel) in the
form of share-based payments, whereby employees render services in exchange for shares or
rights over shares (equity-settled transactions).
The Company has in place the Great Western Exploration Limited Employee Share Option Plan
to provide benefits to directors and senior executives.
The cost of these equity-settled transactions with employees is measured by reference to the fair
value of the equity instruments at the date at which they are granted. The fair value is determined
by an external valuer using a binomial model.
In valuing equity-settled transactions, no account is taken of any vesting conditions other than
conditions linked to price of the shares of the Company (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in
equity, over the period in which the performance and/or service conditions are fulfilled (the vesting
period), ending on the date on which the relevant employees become fully entitled to the award
(the vesting date).
At each subsequent reporting date until vesting the cumulative charge to the Statement of
Comprehensive Income is the produce of:
the grant date fair value of the award;
(i)
(ii) the current best estimate of the number of awards that will vest, taking into account such
factors as the likelihood of employee turnover during the vesting period and the likelihood of
non-market performance conditions being met; and
(iii) the expired portion of the vesting period.
The charge to the Statement of Comprehensive Income for the year is the cumulative amount
as calculated above less the amounts already charged in previous years. There is a
corresponding credit to equity.
Until an award has vested, any amounts recorded are contingent and will be adjusted if more
or fewer awards vest than were originally anticipated to do so. Any award subject to a market
condition is considered to vest irrespective of whether or not that market condition is fulfilled,
provided that all other conditions are satisfied.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised
as if the terms had not been modified. An additional expense is recognised for any modification
that increases the total fair value of the share based payment arrangement, or is otherwise
beneficial to the employee, as measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation,
and any expense not yet recognised for the award is recognised immediately. However, if a
new award is substituted for the cancelled award and designated as a replacement award on
the date that it is granted, the cancelled and new award are treated as if they were a
modification of the original award, as described in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the
computation of diluted earnings per share.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 41
30
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
n) Issued Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
o) Revenue Recognition
Revenue is recognised and measured at the fair value of the consideration received or receivable
to the extent it is probable that the economic benefits will flow to the Company and the revenue
can be reliably measured. The following specific recognition criteria must also be met before
revenue is recognised.
(i)
Interest Income
Revenue is recognised as interest accrues using the effective interest method. This is a method
of calculating the amortised cost of a financial asset and allocating the interest income over the
relevant year using the effective interest rate, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to the net carrying amount of
the financial asset.
p) Income Tax and other Taxes
Current tax assets and liabilities for the current and prior years are measured at the amount
expected to be recovered from or paid to the taxation authorities based on the current year’s
taxable income. The tax rates and tax laws used to compute the amount are those that are enacted
or substantively enacted by the balance sheet date.
Deferred income tax is provided on all temporary differences at the balance sheet date between
the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
o When the deferred income tax liability arises from the initial recognition of goodwill or of
an asset or liability in the transaction that is not a business combination and that, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
o when the taxable temporary difference is associated with investments in subsidiaries,
associates or interests in joint ventures, and the timing of the reversal of the temporary
difference can be controlled and it is probable that the temporary difference will not reverse
in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward
of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will
be available against which the deductible temporary differences and the carry-forward of unused
tax credits and unused tax losses can be utilised, except:
o when the deferred income tax asset relating to the deductible temporary difference arises
from the initial recognition of an asset or liability in a transaction that is not
o a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss; or
o when the deductible temporary difference is associated with investments in subsidiaries,
associates or interests in joint ventures, in which case a deferred tax asset is only
recognised to the extent that it is probable that the temporary difference will reverse in the
foreseeable future and taxable profit will be available against which the temporary
difference can be utilised.
31
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available to
allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are
recognised to the extent that it has become probable that future taxable profit will allow the deferred
tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply
to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted at the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to
set off current tax assets against current tax liabilities and the deferred tax assets and liabilities
relate to the same taxable entity and the same taxation authority.
Other Taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the
taxation authority, in which case the GST is recognised as part of the cost of acquisition of the
asset or as part of the expense item as applicable; and
receivables and payables, which are stated with the amount of GST included.
•
The net amount of GST recoverable from, or payable to, the taxation authority is included as part
of receivables or payables in the Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component
of cash flows arising from investing and financing activities, which is recoverable from, or payable
to, the taxation authority is classified as part of operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or
payable to, the taxation authority.
q) Earnings per share
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted
to exclude any costs of servicing equity (other than dividends), divided by the weighted average
number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members of the parent,
adjusted for:
§
§
costs of servicing equity (other than dividends);
the after tax effect of dividends and interest associated with dilutive potential ordinary shares;
and
§ other non-discretionary changes in revenues or expenses during the year that would result
from the dilution of potential ordinary shares;
Divided by the weighted average number of ordinary shares and dilutive potential ordinary shares,
adjusted for any bonus element.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 43
32
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
r) Fair Value of Assets and Liabilities
The Company measures some of its assets and liabilities at fair value on either a recurring or non-
recurring basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Company would receive to sell an asset or would have to pay to transfer
a liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing
market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing
information is used to determine fair value. Adjustments to market values may be made having
regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities
that are not traded in an active market are determined using one or more valuation techniques.
These valuation techniques maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the
asset or liability (i.e. the market with the greatest volume and level of activity for the asset or
liability) or, in the absence of such a market, the most advantageous market available to the entity
at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the
asset or minimises the payments made to transfer the liability, after taking into account transaction
costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant's
ability to use the asset in its highest and best use or to sell it to another market participant that
would use the asset in its highest and best use.
The fair value of liabilities and the entity's own equity instruments (excluding those related to share-
based payment arrangements) may be valued, where there is no observable market price in
relation to the transfer of such financial instruments, by reference to observable market information
where such instruments are held as assets. Where this information is not available, other valuation
techniques are adopted and, where significant, are detailed in the respective note to the financial
statements.
Valuation techniques
In the absence of an active market for an identical asset or liability, the Company selects and uses
one or more valuation techniques to measure the fair value of the asset or liability, The Company
selects a valuation technique that is appropriate in the circumstances and for which sufficient data
is available to measure fair value. The availability of sufficient and relevant data primarily depends
on the specific characteristics of the asset or liability being measured. The valuation techniques
selected by the Company are consistent with one or more of the following valuation approaches:
Market approach: valuation techniques that use prices and other relevant information generated
by market transactions for identical or similar assets or liabilities.
Income approach: valuation techniques that convert estimated future cash flows or income and
expenses into a single discounted present value.
Cost approach: valuation techniques that reflect the current replacement cost of an asset at its
current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would
use when pricing the asset or liability, including assumptions about risks. When selecting a
valuation technique, the Company gives priority to those techniques that maximise the use of
observable inputs and minimise the use of unobservable inputs. Inputs that are developed using
33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
market data (such as publicly available information on actual transactions) and reflect the
assumptions that buyers and sellers would generally use when pricing the asset or liability are
considered observable, whereas inputs for which market data is not available and therefore are
developed using the best information available about such assumptions are considered
unobservable.
Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which
categorises fair value measurements into one of three possible levels based on the lowest level
that an input that is significant to the measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date.
Measurements based on inputs other than quoted prices included in Level 1 that are observable
for the asset or liability, either directly or indirectly.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable
for the asset or liability, either directly or indirectly
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using
one or more valuation techniques. These valuation techniques maximise, to the extent possible,
the use of observable market data. If all significant inputs required to measure fair value are
observable, the asset or liability is included in Level 2. If one or more significant inputs are not
based on observable market data, the asset or liability is included in Level 3.
The Company would change the categorisation within the fair value hierarchy only in the following
circumstances:
(i) if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3)
or vice versa; or
(ii) if significant inputs that were previously unobservable (Level 3) became observable (Level 2)
or vice versa.
When a change in the categorisation occurs, the Company recognises transfers between levels of
the fair value hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the
date the event or change in circumstances occurred.
2. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
Estimates and assumptions are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the
circumstances. Equally, the Company continually employs judgement in the application of its
accounting policies.
Management has identified the following critical accounting policies for which significant judgements,
estimates and assumptions are made. Actual results may differ from these estimates under different
assumptions and conditions. Those which may materially affect the carrying amounts of assets and
liabilities reported in future years are discussed below.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 45
34
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
market data (such as publicly available information on actual transactions) and reflect the
assumptions that buyers and sellers would generally use when pricing the asset or liability are
considered observable, whereas inputs for which market data is not available and therefore are
developed using the best information available about such assumptions are considered
unobservable.
Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which
categorises fair value measurements into one of three possible levels based on the lowest level
that an input that is significant to the measurement can be categorised into as follows:
Level 1
Level 2
Level 3
Measurements based on quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date.
Measurements based on inputs other than quoted prices included in Level 1 that are observable
for the asset or liability, either directly or indirectly.
Measurements based on inputs other than quoted prices included in Level 1 that are observable
for the asset or liability, either directly or indirectly
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using
one or more valuation techniques. These valuation techniques maximise, to the extent possible,
the use of observable market data. If all significant inputs required to measure fair value are
observable, the asset or liability is included in Level 2. If one or more significant inputs are not
based on observable market data, the asset or liability is included in Level 3.
The Company would change the categorisation within the fair value hierarchy only in the following
circumstances:
or vice versa; or
(i) if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3)
(ii) if significant inputs that were previously unobservable (Level 3) became observable (Level 2)
or vice versa.
When a change in the categorisation occurs, the Company recognises transfers between levels of
the fair value hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the
date the event or change in circumstances occurred.
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
2. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
Impairment of non-financial assets
Estimates and assumptions are continually evaluated and are based on historical experience and other
(a) Significant accounting estimates and judgements
factors, including expectations of future events that are believed to be reasonable under the
circumstances. Equally, the Company continually employs judgement in the application of its
(i)
accounting policies.
The Company assesses impairment on all assets at each reporting date by evaluating conditions
Management has identified the following critical accounting policies for which significant judgements,
specific to the Company and to the particular asset that may lead to impairment. These include
estimates and assumptions are made. Actual results may differ from these estimates under different
technology and economic environments. If an impairment trigger exists, the recoverable amount of
assumptions and conditions. Those which may materially affect the carrying amounts of assets and
the asset is determined. This involves value-in-use calculations, which incorporate a number of key
liabilities reported in future years are discussed below.
estimates and assumptions.
Financial Assets
Cash and cash equivalents
Receivables
Financial assets at fair value through profit or loss
- Held for trading
690,505
145,661
39,184
12,773
2017
$
2016
$
Note
8
9
10
48,796
884,962
400
52,357
(ii) Share-based payment transactions
Financial Liabilities
Trade and payables
The Company measures the cost of equity settled transactions with directors and employees by
reference to the fair value of the equity instruments at the date at which they are granted. Equity
settled transactions comprise only options. Their fair value is determined using the Binomial Options
Pricing model. The accounting estimates and assumptions relating to equity settled share-based
payments would have no impact on the carrying amounts of assets and liabilities within the next annual
reporting year but may impact expenses and equity.
656,701
530,334
656,701
530,334
Financial Risk Management Policies
The Company attempts to mitigate risks that may affect its future performance through a systematic
process of identifying, assessing, reporting and managing risks of corporate significance.
(iii) Estimation of useful lives of assets
34
The management and the Board discuss the principal risks of our businesses, particularly during the
strategic planning and budgeting processes. The board sets policies for the implementation of systems to
manage and monitor identifiable risks. The Board Risk Committee is responsible for the oversight of risk
management.
The estimation of useful lives of assets has been based on historical experience. Adjustments to
useful lives are made when considered necessary. Depreciation and amortisation charges as well as
estimated useful lives are included in Note 1(g).
(iv) Exploration and evaluation costs
The Company’s principal financial instruments comprise cash and short term deposits. The Company has
various other financial assets and liabilities such as trade receivables and trade payables, which arise
directly from its operations.
Acquisition, exploration and evaluation expenditure incurred is accumulated in respect of each
identifiable area of interest. These costs are carried forward in respect of an area that has not at
balance sheet 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 relating to,
the area of interest are continuing.
The main purpose of these financial assets and liabilities is to raise finance for the Company’s operations.
It is, and has been throughout the entire year under review, the Company’s policy that no trading in financial
instruments shall be undertaken.
(v) Environmental issues
The main risks arising from the Group’s financial instruments are cash flow interest rate risk. Other minor
risks are either summarised below or disclosed in Note 9 in the case of credit risk and Note 14 in the case
of capital risk management. The Board reviews and agrees policies for managing each of these risks.
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or
enacted environmental legislation, and the Directors understanding thereof. At the current stage of
the Company’s development and its current environmental impact, the Directors believe such
treatment is reasonable and appropriate.
Credit Risk
(a)
(vi) Taxation
The Company minimises credit risk by undertaking a review of its potential customers’ financial
position and the viability of the underlying project prior to entering into material contracts.
than receivables
instruments other
Balances disclosed in the financial statements and the notes thereto, related to taxation, and are based
on the best estimates of Directors. These estimates take into account both the financial performance
and position of the Company as they pertain to current income taxation legislation, and the Directors
understanding thereof. No adjustment has been made for pending or future taxation legislation. The
current income tax position represents that Directors best estimate, pending an assessment by the
Australian Taxation Office.
Financial
to
concentrations of credit risk consist principally of cash deposits. The Company places its cash
deposits with high credit-quality financial institutions, being in Australia only the major Australian
(big four) banks. Cash holdings in other countries are generally not significant. The Company’s
cash deposits all mature within twelve months and attract a rate of interest at normal short-term
money market rates.
that potentially subject
the Company
3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The maximum amount of credit risk the Company considers it would be exposed to would be
$690,505 (2016: $39,583) being the total of its cash and cash equivalents and financial assets.
(b)
The Company’s financial instruments consist mainly of deposits with banks, accounts receivable and
payable.
Cash Flow Interest Rate Risk
The Company’s exposure to the risks of changes in market interest rates relates primarily to the
Company’s short term deposits with a floating interest rate. All other financial assets and liabilities
The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed
in the accounting policies to these financial statements, are as follows:
36
35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Financial Assets
Cash and cash equivalents
Receivables
Financial assets at fair value through profit or loss
- Held for trading
Financial Liabilities
Trade and payables
Financial Risk Management Policies
Note
8
9
10
2017
$
690,505
145,661
48,796
884,962
656,701
656,701
2016
$
39,184
12,773
400
52,357
530,334
530,334
The Company attempts to mitigate risks that may affect its future performance through a systematic
process of identifying, assessing, reporting and managing risks of corporate significance.
The management and the Board discuss the principal risks of our businesses, particularly during the
strategic planning and budgeting processes. The board sets policies for the implementation of systems to
manage and monitor identifiable risks. The Board Risk Committee is responsible for the oversight of risk
management.
The Company’s principal financial instruments comprise cash and short term deposits. The Company has
various other financial assets and liabilities such as trade receivables and trade payables, which arise
directly from its operations.
The main purpose of these financial assets and liabilities is to raise finance for the Company’s operations.
It is, and has been throughout the entire year under review, the Company’s policy that no trading in financial
instruments shall be undertaken.
The main risks arising from the Group’s financial instruments are cash flow interest rate risk. Other minor
risks are either summarised below or disclosed in Note 9 in the case of credit risk and Note 14 in the case
of capital risk management. The Board reviews and agrees policies for managing each of these risks.
(a)
Credit Risk
The Company minimises credit risk by undertaking a review of its potential customers’ financial
position and the viability of the underlying project prior to entering into material contracts.
than receivables
instruments other
Financial
to
concentrations of credit risk consist principally of cash deposits. The Company places its cash
deposits with high credit-quality financial institutions, being in Australia only the major Australian
(big four) banks. Cash holdings in other countries are generally not significant. The Company’s
cash deposits all mature within twelve months and attract a rate of interest at normal short-term
money market rates.
that potentially subject
the Company
The maximum amount of credit risk the Company considers it would be exposed to would be
$690,505 (2016: $39,583) being the total of its cash and cash equivalents and financial assets.
(b)
Cash Flow Interest Rate Risk
The Company’s exposure to the risks of changes in market interest rates relates primarily to the
Company’s short term deposits with a floating interest rate. All other financial assets and liabilities
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 47
36
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
in the form of receivables and payables are non-interest bearing. The Company does not engage
in any hedging or derivative transactions to manage interest rate risk.
The following table sets out the Company’s exposure to interest rate risk and the effective weighted
average interest rate for each class of these financial instruments.
Floating Interest
Rate
Non-Interest
Bearing
Total Carrying
Amount
Note
2017
$
2016
$
2017
$
2016
$
2017
2016
8
9
Financial
Assets
Cash and cash
equivalents
Trade and
other
Receivables
Other
Financial
assets
Weighted
average
interest rate
609,505
39,184
-
-
609,505
39,184
-
-
-
-
145,661
12,773
145,661
12,773
48,796
400
48,796
400
0.55
2.03
The effect on profit and equity, after tax, if interest rates at that date had been 10% higher or 10%
lower with all other variables held constant as a sensitivity analysis. Would be a +/- change to profit
and equity of $60,950 (2016: $3,918).
A sensitivity of 10% has been selected as this is considered by management to be reasonable in
the current environment.
The Company constantly analyses its interest rate exposure to ensure the appropriate mix of fixed
and variable rates.
The Company has not entered into any hedging activities to cover interest rate risk. In regard to
its interest rate risk, the Company continuously analyses its exposure. Within this analysis
consideration is given to potential renewals of existing positions, alternative investments and the
mix of fixed and variable interest rates.
(c)
Price Risk
The Company is not exposed to equity securities price risk. There is no active market for available
for sale investments.
(d)
Liquidity Risk
The Company’s objective is to match the terms of its funding sources to the terms of the assets or
operations being financed. The Company uses a combination of trade payables and operating
leases to provide its necessary debt funding.
The Company aims to hold sufficient reserves of cash or cash equivalents to help manage the
fluctuations in working capital requirements and provide the flexibility for investment into long-term
assets without the need to raise debt.
37
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Contracted maturities of payables at balance date
Payable
- Less than 6 months
- 6 to 12 months
- 1 to 5 years
(e)
Commodity Price Risk
2016
$
539,700
117,001
-
656,701
2016
$
530,334
-
-
530,334
Due to the early stage of the Company’s operations its exposure is considered minimal. Risk
arises as its operations are involved in exploration and development of mineral commodities,
changes in the price of commodities for which the Group is exploring and developing may result
in changes to the Company’s market price. The Company entity does not hedge any of its
exposures.
(f)
Foreign currency exchange rate
A risk arises when future commercial transactions and recognised assets and liabilities are
denominated in a currency other than the Company’s functional currency. At present, the Company
is not considered to be exposed to any significant foreign currency risk.
(g)
Net fair values
The Company has no financial assets or liabilities where the carrying value amount exceeds fair
value at balance date. The directors consider that the carrying amounts of financial assets and
financial liabilities recognised in the consolidated financial statements approximate their fair value.
The Company’s financial assets at fair value through profit or loss are listed investments
(Note 10) and are categorised as Level 1, meaning fair value is determined from quoted prices in
active markets for identical assets.
4. OPERATING SEGMENTS
Segment Information
Identification of reportable segments
The Company has identified its operating segments based on the internal reports that are reviewed and
used by the Board of Directors (chief operating decision makers) in assessing performance and
determining the allocation of resources.
The Company’s principal activities are mineral exploration. Reportable segments disclosed are based on
aggregating operating segments where the segments are considered to have similar economic
characteristics.
Types of products and services by segment
The Company’s segments consist of:
• Mineral exploration
• Finance and administration
38
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 49
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
4. OPERATING SEGMENTS (Continued)
Basis of accounting for purposes of reporting by operating segments
Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision maker with
respect to operating segments are determined in accordance with accounting policies that are consistent
to those adopted in the annual financial statements of the Company.
Segment assets
Segment assets are clearly identifiable on the basis of their nature and physical location.
Unless indicated otherwise in the segment assets note, investments in financial assets, deferred tax assets
and intangible assets have not been allocated to operating segments.
Segment liabilities
Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability and
the operations of the segment. Segment liabilities include trade and other payables and certain direct
borrowings.
Unallocated items
Items of revenue, expense, assets and liabilities are not allocated to operating segments if they are not
considered part of the core operations of any segment.
(i)
Segment performance
30 June 2017
Gain on farm-in arrangement
Interest received
Other income
Total segment revenue
Employee benefit expense
Administration expenses
Directors fees
Depreciation
Compliance and regulatory expenses
Share based payments
Mineral exploration written-off
Other costs
Net profit/ (loss) before tax from
operations
30 June 2016
Gain on farm-in arrangement
Interest received
Other income
Total segment revenue
Employee benefit expense
Administration expenses
Directors fees
Depreciation
Compliance and regulatory expenses
Share based payments
Mineral exploration written-off
Other costs
Net profit/ (loss) before tax from
operations
Mineral Exploration ($)
500,000
-
11,259
511,259
Finance and
Administration ($)
-
1,106
6,274
7,380
-
-
-
-
-
-
(686,922)
(81,265)
(64,605)
(224,295)
(150,000)
(4,892)
(31,493)
(618,629)
-
-
Total ($)
500,000
1,106
17,533
518,639
(64,605)
(224,295)
(150,000)
(4,892)
(31,493)
(618,629)
(689,985)
(78,202)
(256,928)
(1,086,534)
(1,343,462)
Mineral Exploration ($)
-
-
12,661
12,661
Finance and
Administration ($)
-
151
124,163
124,314
-
-
-
-
-
-
(2,327,719)
(51,926)
(142,458)
(198,879)
(150,000)
(10,930)
(43,790)
-
-
-
Total ($)
-
151
136,824
136,975
(142,458)
(198,879)
(150,000)
(10,930)
(43,790)
-
(2,327,719)
(51,926)
(2,366,984)
(421,743)
(2,788,727)
39
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
4. OPERATING SEGMENTS (Continued)
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
Basis of accounting for purposes of reporting by operating segments
(ii)
Segment assets
Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision maker with
respect to operating segments are determined in accordance with accounting policies that are consistent
Mineral Exploration ($)
to those adopted in the annual financial statements of the Company.
-
107,314
-
30 June 2017
Current assets
Cash and cash equivalents
690,505
Segment assets
Trade and other receivables
38,347
Segment assets are clearly identifiable on the basis of their nature and physical location.
Other
48,796
Non-current assets
Exploration and evaluation expenditure
Plant & Equipment
Unless indicated otherwise in the segment assets note, investments in financial assets, deferred tax assets
and intangible assets have not been allocated to operating segments.
Finance and
Administration ($)
6,525,098
7,426
-
3,127
690,505
145,661
48,796
6,525,098
10,553
Total ($)
Total assets from operations
6,639,838
780,775
7,420,613
Segment liabilities
Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability and
the operations of the segment. Segment liabilities include trade and other payables and certain direct
borrowings.
30 June 2016
Current assets
Cash and cash equivalents
Unallocated items
Trade and other receivables
Items of revenue, expense, assets and liabilities are not allocated to operating segments if they are not
Other
considered part of the core operations of any segment.
Non-current assets
Exploration and evaluation expenditure
Plant & Equipment
Finance and
Administration ($)
Segment performance
39,184
12,773
400
Mineral Exploration ($)
3,611,559
-
-
6,950
-
-
-
(i)
39,184
12,773
400
3,611,559
6,950
Total ($)
Total assets from operations
30 June 2017
Gain on farm-in arrangement
Interest received
Other income
Total segment revenue
(iii)
Segment liabilities
30 June 2017
Employee benefit expense
Current liabilities
Administration expenses
Trade and other payables
Directors fees
Non-current liabilities
Depreciation
Other liabilities
Compliance and regulatory expenses
Share based payments
Mineral exploration written-off
Other costs
Total liabilities from operations
Net profit/ (loss) before tax from
operations
30 June 2016
Current liabilities
Trade and other payables
Non-current liabilities
Other liabilities
Total liabilities from operations
30 June 2016
Gain on farm-in arrangement
Interest received
Other income
Total segment revenue
Employee benefit expense
Administration expenses
Directors fees
Depreciation
(iv)
Compliance and regulatory expenses
Share based payments
Mineral exploration written-off
Other costs
3,611,559
Mineral Exploration ($)
500,000
-
11,259
511,259
Mineral Exploration ($)
59,307
Finance and
Administration ($)
-
1,106
6,274
7,380
Finance and
Administration ($)
(64,605)
(224,295)
(150,000)
(4,892)
(31,493)
(618,629)
302,181
-
-
302,181
-
-
-
354,520
-
-
-
-
354,520
(686,922)
(81,265)
-
3,670,866
Total ($)
500,000
1,106
17,533
518,639
Total ($)
656,701
(64,605)
(224,295)
(150,000)
(4,892)
(31,493)
(618,629)
(689,985)
(78,202)
656,701
-
Mineral Exploration ($)
(256,928)
Finance and
Administration ($)
(1,086,534)
(1,343,462)
Total ($)
265,026
265,308
530,334
Mineral Exploration ($)
-
265,026
-
12,661
12,661
-
Finance and
-
Administration ($)
-
265,308
151
124,163
124,314
-
Total ($)
-
530,334
151
136,824
136,975
(142,458)
(198,879)
(150,000)
(10,930)
(43,790)
-
(2,327,719)
(51,926)
(iv)
Revenue by geographical region
The Company’s revenue is received from sources within Australia.
Assets by geographical region
The geographical location of all assets are in Australia.
-
-
-
-
-
-
(2,327,719)
(51,926)
(142,458)
(198,879)
(150,000)
(10,930)
(43,790)
-
-
-
(v)
Major customers
Net profit/ (loss) before tax from
operations
Due to the nature of its current operations, the Company does not provide products and services.
(2,366,984)
(421,743)
(2,788,727)
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 51
39
40
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
5. EXPENSES
Employee benefits
Salaries
Superannuation
6. INCOME TAX
2017
$
46,200
18,405
64,605
2016
$
120,000
22,458
142,458
2017
$
2016
$
a) The prima facie tax on profit/(loss) from ordinary activities before
income tax is reconciled to the income tax expense as follows:
Accounting loss before income tax
(1,343,462)
(2,788,727)
Income tax benefit at the statutory income tax rate of 27.5% (2016:
30%)
Expenditure not allowable for income tax purposes
Capitalised mineral exploration expenditure
Capital raising costs
Under/over from prior year
(369,452)
(836,618)
380,720
698,316
(175,306)
(120,945)
(15,396)
(32,889)
(225,258)
-
Benefit of tax losses not brought to account as an asset
404,692
292,136
Income Tax expense reported in the Statement of Profit or Loss and
Other Comprehensive Income
-
-
b) As at 30 June 2017, the Company has estimated tax losses of approximately $21,095,133 (2016:
$18,800,000), which may be available to be offset against deferred tax liabilities and taxable income
in future years. The availability of these losses is subject to satisfying Australian taxation legislative
requirements. The deferred tax asset attributable to tax losses has not been brought to account in
these financial statements as the Directors believe it is not presently appropriate to regard realisation
of the future income tax benefits as probable.
c) Deferred Tax Liability
With regard to Mineral Exploration Expenditure of $6,525,098 (2016: $3,611,559) the tax liability in
respect of the book value has not been brought to account as it is offset by the tax losses set out in
6(b) above.
7. EARNINGS PER SHARE
Loss used in the calculation of basic EPS
(1,343,462)
(2,788,727)
Weighted average number of ordinary shares used in calculation
of basic earnings per share
413,904,299
226,326,870
2017
$
2016
$
41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
8. CASH AND CASH EQUIVALENTS
Cash at bank
Cash on deposit
2017
$
58,421
632,084
690,505
2016
$
39,150
34
39,184
The effective interest rate on short term bank deposits on average was 0.55% (2016: 2.03%), with an
average maturity of 6 months.
9. TRADE AND OTHER RECEIVABLES
Current
Tenement applications and deposits
GST receivable
Prepayments
2017
$
107,314
37,057
1,290
145,661
2016
$
-
12,773
-
12,773
Sundry debtors are non-interest bearing and receivable within 30 days.
Allowance for impairment loss
Trade and other receivables do not contain impaired assets and are not past due. It is expected that these
other balances will be received when due.
Fair value and credit risk
Due to the short term nature of the receivables, their carrying value is assumed to approximate their fair
value.
Given the nature of the receivables the Company’s exposure to risk is not considered material.
10. OTHER FINANCIAL ASSETS
Current
Financial assets at fair value through profit or loss
Held for trading Australian listed shares (Level 1 fair value hierarchy)
Changes in fair value are included in the statement of comprehensive income.
2017
$
2016
$
48,796
400
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 53
42
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
11. PROPERTY, PLANT AND EQUIPMENT
Plant and Equipment – at cost
Less: accumulated depreciation
Reconciliation of the carrying amount of property, plant and
equipment
Carrying amount at beginning of year
Additions
Disposals
Depreciation for the year
Carrying amount at end of financial year
12. MINERAL EXPLORATION EXPENDITURE
Balance at beginning of the year
Acquisition of projects (i)
Acquisition of Vanguard Exploration Ltd (ii)
Deferred exploration expenditure
Mineral expenditure written off (iii)
Balance at end of financial year
2017
$
101,358
(90,805)
10,553
2017
$
6,950
8,495
-
(4,892)
10,553
2017
$
3,611,559
716,113
2,375,198
509,150
(686,922)
6,525,098
2016
$
92,863
(85,913)
6,950
2016
$
17,880
-
-
(10,930)
6,950
2016
$
5,522,609
-
-
416,669
(2,327,719)
3,611,559
(i)
During the year, the Company acquired an 80% interest in the Harris Find Project, consisting of
tenements E53/1612 and E53/1816, for the following cash consideration of $125,000 and the issue
of 25,000,000 ordinary shares and 4,000,000 $0.02 options expiring on 31 December 2017 and
8,500,000 $0.04 options expiring on 31 December 2018.
Value
Cash Consideration $75,000
25,000,000 ordinary fully paid shares $400,000
12,500,000 unlisted options $92,193
Deferred consideration Payable $53,918
Total $621,111
The Liability in relation to the equity instruments have been estimated based on the share price as
at the agreement date entered between the parties.
In addition, during the year, the Company acquired other exploration tenements from another third
party for 2,000,000 shares from GTE, which was valued at $28,000 with other acquisition tenement
cost amounting to $67,002.
(ii)
On the 26 October 2016, shareholders approved the consideration to complete the acquisition of
Vanguard Limited, which holds the Ives Find and Fairbairn Project. The acquisition of Vanguard
Limited has been treated as an asset acquisition via the issue of equity under AASB 2 Share-
Based Payment (“AASB 2”).
43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
12. MINERAL EXPLORATION EXPENDITURE (continued)
Consideration:
150,833,124 Ordinary shares
Identifiable assets acquired:
Cash and cash equivalents
Exploration expenditure
Trade and other receivables
Trade and other payables
2,413,330
2,413,330
41,375
2,375,198
2,362
(5,605)
2,413,330
(iii)
Mineral expenditure written off for the year was $686,922. The main area written off in 2017 was
the Cunyu JV and previously capitalised expenditure on various tenements relinquished during the
financial year.
The value of the Company’s interest in exploration expenditure is dependent upon:
the continuance of the Company’s rights to tenure of the areas of interest;
the results of future exploration; and
•
•
• The recoupment of costs through successful development and exploitation of the areas of interest
or, alternatively, by their sale.
13. TRADE AND OTHER PAYABLES
Current
Trade payables
Sundry payables and accruals
PAYG Withholding
Deferred Harris Find Acquisition Costs
Deferred Tenement costs
2017
$
72,979
418,404
44,398
53,918
67,002
656,701
2016
$
193,121
337,213
-
-
-
530,334
Due to the short-term nature of these payables, their carrying value is assumed to approximate fair value.
Trade payables are non-interest bearing and are generally settled within 30 days.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 55
44
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
14. ISSUED CAPITAL
Ordinary Shares
Movements
Ordinary Shares
Balance 1 July
2017
$
24,500,456
2016
$
20,244,437
2017
Number
2016
Number
2017
$
2016
$
264,100,826
189,048,226
20,244,437
19,496,573
Share based payments
14,223,437
23,552,600
227,575
235,526
Share issue
- Acquisition of Vanguard
Exploration
- Acquisition of Harris Find
- Acquisition of Exploration
tenements
Placement
- Aug 2016
- Dec 2016
- Mar 2017
- Dec 2015
Jan 2016
-
Issue costs
At 30 June
150,833,124
25,000,000
2,000,000
24,540,000
62,500,000
20,000,000
-
-
-
-
-
-
31,500,000
20,000,000
2,413,330
400,000
28,000
368,100
625,000
250,000
-
-
563,197,387
-
563,197,387
264,100,826
-
264,100,826
24,556,442
(55,986)
24,500,456
-
-
-
-
315,000
200,000
20,247,099
(2,662)
20,244,437
The Company at 30 June 2017 has issued share capital amounting to 563,197,387 (2016: 264,100,826)
ordinary shares with no par value.
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion
to the number of shares held.
At the shareholders’ meetings each ordinary share is entitled to one vote when a poll is called, otherwise
each shareholder has one vote on a show of hands.
Capital Risk Management
The Company’s objectives when managing capital are to safeguard their ability to continue as a going
concern, so that they may continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Company’s activities, being mineral exploration, the Company does not have ready
access to credit facilities, with the primary source of funding being equity raisings. Therefore, the focus of
the Company’s capital risk management is the current working capital position against the requirements of
the Company to meet exploration programmes and corporate overheads.
45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
14. ISSUED CAPITAL (continued)
The Company’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating
requirements, with a view to initiating appropriate capital raisings as required. The working capital position
of the Company is as follows:
Cash and cash equivalents
Trade and other receivables
Other assets
Trade and other payables
Working capital position
15. RESERVES
Share Option Reserve
(a) Share Option Reserve
Balance at 1 July
Issued during the year
Expired during the year
Exercised during the year
Balance at 30 June
2017
$
690,505
145,661
48,706
(656,701)
228,261
2017
$
710,823
710,823
2016
$
39,184
12,773
400
(530,334)
(447,977)
2016
$
-
-
2017
No.
-
75,500,000
-
-
75,500,000
2016
No.
20,600,000
(20,600,000)
-
-
2017
$
-
710,823
-
-
710,823
2016
$
1,682,618
(1,682,618)
-
-
The share based payments reserve is used to record the value of share based payments provided to
employees, including key management personnel, as part of their remuneration. Refer to Note 19 for
further details of these plans.
The Group operates an Employee Share Option Plan under which Options to subscribe for the Company’s
shares have been granted to directors, senior executives and employees.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 57
46
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
16. CASH FLOW STATEMENT RECONCILIATION
- Reconciliation of net loss after tax to net cash flows from
operations
Loss for the year
Depreciation
Share based payments
Other Income
Mineral exploration expenditure written off
Changes in assets and liabilities
(Increase)/Decrease in trade and other receivables and
prepayments
Increase/(Decrease) in trade and other payables
(Increase)/Decrease in exploration expenditure
Increase /(Decrease) in provisions
2017
$
2016
$
(1,343,462)
4,892
618,629
(500,000)
689,985
(2,788,727)
10,930
-
(126,524)
2,327,719
(24,284)
126,367
(472,377)
-
(900,250)
(162)
389,141
(416,670)
-
(604,293)
17. RELATED PARTY DISCLOSURE
a) Transactions with Directors and Directors Related Entities
There were no related party transactions during the year ended 30 June 2017
.
18. KEY MANAGEMENT PERSONNEL
(a)
Compensation for Key Management Personnel
Short term employee benefits
Post employment benefits
Other long term benefits
Termination benefits
Share based payments
19. SHARE BASED PAYMENTS
(a) Recognised share based payment
2017
$
340,000
32,063
-
-
211,800
583,863
2016
$
270,000
22,572
-
-
-
292,572
The share based payment expense recognised for employee services, consultants and
tenement acquisition received during the year is shown in the table below:
Expense arising from equity share-based payment
transactions settled via options
Expense arising from equity share-based payment
transactions settled via Shares
Total expense arising from
share-based payment transactions
2017
$
2016
$
710,823
-
3,068,905
235,526
3,779,728
235,526
47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
19. SHARE BASED PAYMENTS (continued)
The share-based payment plans are described below. There have been no cancellations or
modifications to any of the plans during 2017 and 2016.
b)
Types of Share based payment plans
Great Western Exploration Limited, Employee Share Option Plan
Share options are granted to senior executives and designed to provide executives an incentive
and participate along with shareholders by increasing the value of the Company’s shares. The
options are issued by the Board having regard, in each case to:
(i)
(ii)
the contribution to the Company which has been made by the Participant;
the period of employment of the Participant with the Company, including (but not limited
to) the years of service by that Participant;
(iii)
the potential contribution of the Participant to the Company; and
(iv)
any other matters which the Board considers in its absolute discretion, to be relevant.
The options are issued to participants at a price the Board considers appropriate, but in any event,
no more than nominal consideration.
Details of options expiry date and exercise price are set out in Note 19 (c) below.
c)
Summary of Options granted under Employee Share Option Plan and other parties
Outstanding at
beginning of financial year
Granted during the year
- expiring 31 Dec 2017
- expiring 31 Dec 2018
- expiring 31 Dec 2019
- expiring 31 Dec 2019
- expiring 31 Dec 2019
- expiring 31 Dec 2019
- expiring 30 Jun 2020
Forfeited during the year
Expired during the year
Exercised during the year
2017
No.
Exercise
Price
2016
No.
Exercise
Price
-
10,000,000
-
14,000,000
18,500,000
12,000,000
2,000,000
2,000,000
2,000,000
25,000,000
$0.02
$0.04
$0.06
$0.00
$0.02
$0.04
$0.02
-
-
-
-
(10,000,000)
-
-
-
-
Outstanding at end of financial year
75,500,000
-
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 59
48
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
19. SHARE BASED PAYMENTS (Continued)
The following share-based payment arrangements were in existence during the current and prior
reporting periods:
Grant
Date
No of
Options
Grant Date
Fair Value
Exercise
Price
Expiry
Date
Vesting
Date
29 November 2016
29 November 2016
29 November 2016
29 November 2016
29 November 2016
29 November 2016
18 November 2016
18 November 2016
24 March 2017
2,000,000
10,000,000
2,000,000
10,000,000
2,000,000
12,000,000
4,000,000
8,500,000
25,000,000
$0.01500
$0.00620
$0.01011
$0.00690
$0.00965
$0.00805
$0.00680
$0.00760
$0.01280
$0.00
$0.02
$0.02
$0.04
$0.04
$0.06
$0.02
$0.04
$0.02
31 December 2019
31 December 2017
31 December 2019
31 December 2018
31 December 2019
31 December 2019
31 December 2017
31 December 2018
30 June 2020
29 November 2016
29 November 2016
29 November 2016
29 November 2016
29 November 2016
29 November 2016
18 November 2016
18 November 2016
24 March 2017
The total number of options exercisable at year end was 75,500,000.
No options were exercised during the year.
d)
Option pricing model
Equity-settled transactions
The fair value of the equity-settled share options granted under the Employee Share Option Plan
is estimated as at the date of the grant using a Monte Carlo Pricing Model as part of the term of
the issued options, the options will vest immediately when the Share Price Equals or exceeds the
Exercise Price of the respective shares after the date of issues of the options.
Monte Carlo Price Model
Grant Date
Dividend yield (%)
Expected volatility (%)
Risk free interest rate (%)
Expected life of options (yrs)
Option exercise price ($)
Grant Date Share Price
29/11/16 29/11/16
-
131
1.91
3.1
0.00
0.015
-
131
1.78
1.1
0.02
0.015
29/11/16
-
131
1.91
3.1
0.02
0.015
29/11/16
-
131
1.78
2.1
0.04
0.015
29/11/16
-
131
1.91
3.1
0.04
0.015
29/11/16
0
131
1.91
3.1
0.06
0.015
Binomial Model Pricing Model taking into account the terms and conditions upon which the
options were granted options included in relation to acquisition of tenements and corporate
advisory services during the period.
Binomial Model Pricing Model
Grant Date
Dividend yield (%)
Expected volatility (%)
Risk free interest rate (%)
Expected life of options (yrs)
Option exercise price ($)
Weighted average share price
at measurement date ($)
18/11/16
-
151
1.86
3.2
0.02
18/11/16 24/3/2017
-
-
132
151
1.74
1.86
3.3
3.2
0.02
0.04
0.016
0.016
0.017
e) Share issued in lieu of services
2017
Grant Date/entitlement
Number of
Instruments
Grant and
Vesting Date
Fair Value at
grant date $
Shares issued in lieu of 30 June 2016 outstanding director
fees and salary’s as approved at AGM on 29 November
14,223,437
29/11//2016
0.016
49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
19. SHARE BASED PAYMENTS (Continued)
2016
Grant Date/entitlement
Number of
Instruments
Grant and
Vesting Date
Fair Value at
grant date $
Shares issued in lieu of 30 June 2015 outstanding
director fee 2016 as approved at GM on 7 January
23,552,600
07/01/2016
0.01
20.
PARENT INFORMATION
The following information has been extracted from the books and
records of the parent and has been prepared in accordance with
Australian Accounting Standards.
STATEMENT OF FINANCIAL POSITION
ASSETS
Current Assets
Non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
2017
$
2016
$
873,687
6,266,620
52,357
3,618,509
7,140,307
3,670,866
651,097
530,334
651,097
530,334
6,489,210
3,140,532
24,215,293
710,822
(18,436,905)
20,244,437
-
(17,103,905)
6,489,210
3,140,532
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
Total loss
Total comprehensive income
(1,333,000)
(2,788,727)
(1,333,000)
(2,788,727)
Guarantees
Great Western Exploration Limited has not entered into any guarantees, in the current or previous
financial year, in relation to the debts of its subsidiaries.
Contingent Liabilities
At 30 June 2017, there were no contingent liabilities in relation to the subsidiaries.
Contractual commitments
At 30 June 2017, Great Western Exploration Limited had not entered into any contractual commitments
for the acquisition of property, plant and equipment (2016: Nil).
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 61
50
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
21. CONTROLLED ENTITIES
Interests are held in the following:
Name
Principal
Activity
Country of
Incorporation Shares
Ownership
Interest
Vanguard Exploration Limited
Mineral
Exploration Australia
Ordinary
100%
-
GTE Holdings Pte Ltd
Investment Singapore
Ordinary
100%
100%
GTE KZ LLP
Mineral
Exploration Kazakhstan
Ordinary
100%
100%
2017
2016
22. COMMITMENTS AND CONTINGENCIES
COMMITMENTS
a) Exploration Tenement Leases
In order to maintain current rights of tenure to exploration
tenements, the Group is required to outlay lease rentals and to
meet the minimum expenditure requirements of the Western
Australian Department of Mines & Petroleum.
Within one year
2017
$
2016
$
757,000
643,000
CONTINGENCIES
There were no contingencies at the end of the financial year.
23. EVENTS AFTER BALANCE DATE
• On Friday 18 August 2017, the Company announced that it had received firm commitments to raise
approximately $2.5 million through the issue of up to 230 million shares at an issue price of 1.1 cents
per share to a number of sophisticated and institutional investors.
• The placement is being undertaken in two tranches, with the first tranche, comprising 140 million
shares (raising ~$1.5million), completed on 24 August 2017. The second tranche, comprising 90
million shares (raising ~$1million), was approved by shareholders at the General Meeting on 26
September 2017, is due to be completed on 3 October 2017.
At a General Meeting on 26 September 2017, the shareholders approved the following resolutions:
• Approval and ratification of the prior issue of 84,000,000 shares;
• Approval and ratification of the prior issue of 56,000,000 shares;
• Approval for the Directors to issue up to 90,000,000 shares at an issue price of $0.011 per
share (Tranche 2 above);
• Approval for the issue of 6,000,000 Director Options to Mr Rimas Kairaitis;
• Approval for the issue of 4,632,692 Shares at an issue price of $0.013 per Share to Mr
Kevin Somes, or nominee, in full satisfaction of the accrued and outstanding Director’s
fees as at 30 June 2017, being $60,225; and
• Approval for the issue of 2,369,231 Shares at a deemed issue price of $0.013 per Share
to Mr Justin Barton in full satisfaction of accrued and outstanding Salary as at 31 July
2017, being $30,800.
51
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2017
Great Western Exploration Limited
Notes To The Consolidated Financial Statements For The Year Ended 30 June 2017 (Continued)
24. AUDITORS REMUNERATION
The Auditor of Great Western Exploration Limited is Bentleys
Amounts received or due and receivable for
• an audit or review of the financial report of the Group
• other services in relation to the Group – other services
2017
$
2016
$
35,110
10,700
38,693
-
45,810
38,693
Bentleys provided non-audit services via the provision of an Independent Experts Report as part of the
Vanguard Exploration Limited acquisition, with non-audit services of $10,700.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 63
52
Great Western Exploration Limited
Directors’ Declaration
In accordance with a resolution of the directors of Great Western Exploration Limited, the Directors of the
Company declare that:
1.
the financial statements and notes, as set out on pages 30 to 63, are in accordance with the
Corporations Act 2001 and:
a.
b.
comply with Australian Accounting Standards, which, as stated in accounting policy Note
1 to the financial statements, constitutes compliance with International Financial
Reporting Standards (IFRS); and
give a true and fair view of the financial position as at 30 June 2017 and of the
performance for the year ended on that date of the Company;
2.
3.
in the Directors’ opinion, subject to the matters mentioned in Note 1(a) to the financial
statements, there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable; and
the Directors have been given the declarations required by s 295A of the Corporations Act 2001
for the financial year ended 30 June 2017.
Dated this 29th day of September 2017
K C Somes
Chairman
53
To The Board of Directors
Auditorʼs Independence Declaration under Section 307C of the
Corporations Act 2001
As lead audit director for the audit of the financial statements of Great Western
Exploration Limited for the financial year ended 30 June 2017, I declare that to the best
of my knowledge and belief, there have been no contraventions of:
the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
any applicable code of professional conduct in relation to the audit.
Yours faithfully
BENTLEYS
Chartered Accountants
MARK DELAURENTIS CA
Director
Dated at Perth this 29th of September 2017
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 65
Independent Auditor's Report
To the Members of Great Western Exploration Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Great Western Exploration Limited (“the
Company”) and its subsidiaries (“the Group”), which comprises the consolidated
statement of financial position as at 30 June 2017, the consolidated statement of profit or
loss and other comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies, and the
directors’ declaration.
In our opinion:
a.
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 30 June
2017 and of its financial performance for the year then ended; and
complying with Australian Accounting Standards and the Corporations
Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards
as disclosed in Note 1.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Those
standards require that we comply with relevant ethical requirements relating to audit
engagements and plan and perform the audit to obtain reasonable assurance about
whether the financial report is free from material misstatement. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance
with the auditor independence requirements of the Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board’s APES 110
Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of
the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Independent Auditorʼs Report
To the Members of Great Western Exploration Limited (Continued)
Material Uncertainty Related to Going Concern
We draw attention to Note 1(a) in the financial report, which indicates that the Group incurred a net loss of
$1,343,462 during the year ended 30 June 2017. As stated in Note 1(a), these events or conditions, along with
other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on
the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key Audit Matter
How our audit addressed the key audit matter
Capitalised Mineral Exploration Expenditure
As disclosed in note 12 to the financial statements,
as at 30 June 2017, the Group’s capitalised mineral
exploration expenditure were carried at $6,525,098.
The recognition and recoverability of the capitalised
mineral exploration expenditure was considered a
key audit matter due to:
The carrying value of capitalised exploration
costs represents a significant asset of the Group,
we considered it necessary to assess whether
facts and circumstances existed to suggest the
carrying amount of this asset may exceed the
recoverable amount; and
Determining whether impairment indicators exist
involves significant judgement by management
Our audit procedures included but were not limited
to:
Assessing management’s determination of its
areas of interest for consistency with the
definition in AASB 6 Exploration and Evaluation
of Mineral Resources (“AASB 6”);
Assessing the Group’s rights to tenure for a
sample of tenements;
Testing the Group’s additions to capitalised
exploration costs for the year by evaluating a
sample of recorded expenditure for consistency
to underlying records, the capitalisation
requirements of the Group’s accounting policy
and the requirements of AASB 6;
By testing the status of the Group’s tenure and
planned future activities, reading board minutes
and discussions with management we assessed
each area of interest for one or more of the
following circumstances that may indicate
impairment of the capitalised exploration costs:
The licenses for the rights to explore
expiring in the near future or are not
expected to be renewed;
Substantive expenditure for further
exploration in the area of interest is not
budgeted or planned;
Decision or intent by the Group to
discontinue activities in the specific area of
interest due to lack of commercially viable
quantities of resources; and
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 67
Independent Auditorʼs Report
To the Members of Great Western Exploration Limited (Continued)
Key Audit Matter
How our audit addressed the key audit matter
Acquisition of Vanguard Limited
During the year, the Company completed its
acquisition of Vanguard Limited via the issue of
shares. This transaction was accounted for as an
asset acquisition with a deemed consideration of
$2,413,330. The acquisition has been accounted for as
a share based payment measured in accordance with
AASB 2 Share Based Payments.
This was a key audit matter due to:
The size of the transaction having a pervasive
impact on the financial statements; and
The complexity in identifying the elements of
consideration and the judgement applied by the
Company in determining its fair value.
Data indicating that, although a
development in the specific area is likely to
proceed, the carrying amount of the
exploration asset is unlikely to be recorded
in full from successful development or sale.
We also assessed the appropriateness of the
related disclosures in note 12 to the financial
statements.
Procedures performed as part of our assessment of
the transaction to determine if the appropriate
accounting treatment was applied, included:
Evaluation of management’s assessment of the
combining entities to determine who obtained
control as a result of the transaction.
Review of signed contractual agreements relating
to the acquisition and understanding the key
terms and conditions of the transaction;
Assessment of the calculation of the deemed
consideration with underlying information inputs
including share price with the terms of the
acquisition agreement;
Review of acquisition date balance sheet to
acquisition agreement and underlying supporting
documentation;
Assessment of the fair value of assets and
liabilities acquired to the fair value assessment
conducted by management.
Assessing the adequacy of the disclosures in
Notes 12 of the financial statements.
Share Based Payments Expense
Our procedures included, amongst others:
As disclosed in note 19 to the financial statements,
Analysing agreements to identify the key terms
during the year ended 30 June 2017 the Group
incurred share based payments totaling $3,779,728
including $2,413,330 for the acquisition of Vanguard
Limited (refer key audit matter above).
Share based payments are considered to be a key
audit matter due to:
the value of the transactions;
the complexities involved in the recognition and
measurement of these instruments; and
and conditions of share based payments issued
and relevant vesting conditions in accordance
with AASB 2 Share Based Payments;
Evaluating management’s valuation models and
assessing the assumptions and inputs used;
Assessing the amount recognised during the year
in accordance with the vesting conditions
including performance milestones of the
agreements; and
Independent Auditorʼs Report
To the Members of Great Western Exploration Limited (Continued)
Key Audit Matter
How our audit addressed the key audit matter
the judgement involved in determining the inputs
used in the valuations.
Assessing the adequacy of the disclosures
included in Note 19 to the financial statements.
Management used the Black-Scholes option
valuation model to determine the fair value of the
options granted, and a Monte Carlo Simulation was
applied to fair value the market performance vesting
conditions. This process involved significant
estimation and judgement required to determine the
fair value of the equity instruments granted.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2017, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1, the
directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial
Statements, that the financial report complies with International Financial Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 69
Independent Auditorʼs Report
To the Members of Great Western Exploration Limited (Continued)
Auditorʼs Responsibilities for the Audit of the Financial Report
Our responsibility is to express an opinion on the financial report based on our audit. 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 the directors.
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.
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.
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.
Independent Auditorʼs Report
To the Members of Great Western Exploration Limited (Continued)
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
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2017.
The directors of the Company are responsible for the preparation and presentation of the remuneration report
in accordance with s 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.
Auditorʼs Opinion
In our opinion, the Remuneration Report of Great Western Exploration Limited, for the year ended 30 June
2017, complies with section 300A of the Corporations Act 2001.
BENTLEYS
Chartered Accountants
MARK DELAURENTIS CA
Director
Dated at Perth this 29th of September 2017
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 71
Great Western Exploration Limited
ADDITIONAL INFORMATION
1.
SHAREHOLDER INFORMATION
1.1
VOTING RIGHTS
In accordance with the Company’s constitution, on a show of hands every member
present in person or by proxy or attorney or duly authorised representative has one
vote. On a poll every member present in person or by proxy or attorney or duly
authorised representative has one vote for every fully paid ordinary share held.
1.2
SUBSTANTIAL SHAREHOLDERS (AND ASSOCIATES) AS AT 22 September 2017
Shareholder
Mrs Jane Elizabeth Somes & Ms Amy Jane Somes
Holdrey Pty Ltd
No of Shares
48,636,966
43,076,574
1.3
DISTRIBUTION OF HOLDERS AS AT 22 September 2017
Number of Holders
Distribution is:
1 – 1000
1001 – 5,000
5001 – 10,000
10,001 – 100,000
100,001 – and over
`
1.4
TOP TWENTY HOLDERS:
(a)
Ordinary Shares
Fully Paid
Ordinary Shares
1,511
231
164
138
535
443
1,511
The names of the twenty largest ordinary fully paid shareholders as at
22 September 2017 are as follows:
Name
%
No. of Shares
1 HOLDREY PTY LTD
2 MRS JANE ELIZABETH SOMES & MS AMY JANE SOMES
3 MR IAN KERR
4 DIVERSIFIED ASSET HOLDINGS PTY LTD
5 DILKARA NOMINEES PTY LTD
6 NATIONAL NOMINEES LIMITED
7 SUNDEN PTY LTD
8 BAM NR1 PTY LTD
9 MERRITS PTY LTD
10 WEST TRADE ENTERPRISES PTY LTD
11 MR JORDAN ASHTON LUCKETT
12 MR JOHN MORAN
13 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
14 MR KEVIN CLARENCE SOMES & MR JOHN COOKE
15 AIGLE ROYAL SUPERANNUATION FUND PTY LTD
16 SUNDEN PTY LTD
17 SORIA NOMINEES PTY LTD
18 MR JORDAN LUCKETT
19 BNP PARIBAS NOMS PTY LTD
20 MR ROBERT LAWRENCE HAWKE
5.39
4.24
3.67
3.56
3.53
3.04
2.30
2.24
2.13
2.11
2.05
1.95
1.90
1.79
1.42
1.42
1.14
0.99
0.95
0.78
46.62
37,933,496
29,822,364
25,808,336
25,000,000
24,833,332
21,361,000
16,166,667
15,759,841
15,000,000
14,848,571
14,445,000
13,717,236
13,352,546
12,618,187
10,000,000
10,000,000
8,000,000
6,962,500
6,689,303
5,500,000
327,818,379
56
Great Western Exploration Limited
2.
SCHEDULE OF MINERAL TENEMENTS
Details of Mineral Tenements are disclosed in the Review of Exploration Activities.
57
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 73
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 75