ANNUAL REPORT
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 1
GREAT WESTERN EXPLORATION LIMITED
AND CONTROLLED ENTITIES
ABN 53 123 631 470
ANNUAL REPORT
30 JUNE 2018
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 3
Review of Exploration Activities 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
Principal Office
6 Outram Street
West Perth
Western Australia 6005
Telephone (08) 6311 2852
Facsimile: (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
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
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
6
17
28
32
33
34
35
36
62
63
64
69
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 5
Executive Summary
Great Western Exploration Limited (“Great Western”; “the
Company”) is a gold and base metal explorer with a focus (a)
on the Northern Yilgarn, Western Australia (Fig 1).
During the year Great Western made an exciting greenfields
gold discovery at its Yandal West Gold Project, located in the
richly endowed Yandal Gold Belt.
Also, further progress was made at the Great Western’s
Yerrida Basin exploration that comprises of the Yerrida
South and Yerrida North JV projects.
At the Yandal West Gold Project, Great Western has
identified a highly prospective gold mineralised corridor
that is approximately 12.5km long and 800m wide. Within
this corridor the Company has at least two large prospect
areas where there has been significant gold mineralisation
intersected in RC drilling, being the May Queen and Ives Find
prospects.
At May Queen, Great Western believes there is an area of at
least 3km2 of gold mineralisation within a highly prospective
gold setting. Within this setting encouraging gold results
from RC drilling indicate at least two gold trends that have a
combined strike of at least 5km. The Company is continuing
to carry out systematic drill testing of the area with only an
estimated 15% of the area tested to date.
At Ives Find, Great Western has reported high grade gold
mineralisation which is interpreted to be associated with
a gold mineralised trend at least 700m long that remains
open. A structural study completed by the Company this
year identified the area as highly prospective for further
gold mineralisation and recommended further work. The
Company has scheduled further RC and diamond drilling to
follow-up these recommendations.
The Yerrida North JV is a Joint Venture with Sandfire
Resources NL (“Sandfire”) whereby Sandfire can earn up
to 70% by carrying out exploration. This year Sandfire
completed a regional airborne EM survey that covered the
entire project area. Sandfire are currently interpreting the
data to identify drill targets.
At Great Western’s 100% owned Yerrida South project
the Company completed a small RC program at its Chisel
prospect targeting zinc mineralisation. Encouragingly,
the drilling indicated that a similar geological process
that is associated with Century style zinc mineralisation
is occurring and the Company is planning further work
at the prospect.
Great Western also has the Fairbairn project located
along the northern margin of the Earaheedy Basin. The
Company believes this project has the potential for world
class sedimentary hosted copper, cobalt, lead, and zinc
mineralisation. The Company
is currently reviewing
historical data and will provide an update once this review
is complete.
Yandal West
• Identification of a structural corridor 12.5km long and 800m wide that is co-incident with a robust 9km long gold-in-soil
anomaly. This corridor contains at least two large areas of significant gold mineralisation confirmed in RC drilling, being
the May Queen and Ives Find prospects
• At the May Queen prospect work to date has demonstrated there is approximately 3km2 area of gold mineralisation
occurring within a complex structural setting. Within this area at least two significant gold mineralised trends have been
identified in RC drilling, Western and Eastern, that have a combined strike of at least 5km.
• At Ives Find there is high grade gold mineralisation interpreted to be associated with a gold trend at least 700m long that
remains open. Further diamond and RC drilling is planned.
Figure 1. Location of Great Western’s Projects in the Northern Yilgarn
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 60km south of Jundee gold mine (10Mozs). The project comprises of the 100%
owned Ives Find historical goldfield and the 80% owned Harris Find historical goldfield. The consolidation of both goldfields
will allow systematic modern exploration methods to be applied which was not previously possible because of a long history
of fragmented ownership resulting in limited, ad-hoc exploration.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 7
Review of Exploration Activities Great Western believes it has identified a highly prospective gold mineralised structural corridor that is approximately
12.5km long and 800m wide. This interpretation is supported by a recent structural study as well as soil geochemistry that
indicates gold mineralisation at least 9km along its length. Within this corridor the Company has at least two large areas of
significant gold mineralisation intersected in RC drilling, being the May Queen and Ives Find prospects (Fig 3).
Figure 3. The 9km gold-in-soil trend at Yandal West that is co-incident with a 12.5km structural corridor with the location of the May Queen and Ives Find prospects.
May Queen
During the year the Great Western made an exciting greenfields gold discovery at the May Queen prospect where it
reported last year an extensive 3.8km x 1.5km gold-in-soil anomaly. The Company believes that the encouraging RC drilling
results to date demonstrate an area of approximately 3km2 of gold mineralisation that occurs within a highly prospective
structural setting.
Within the May Queen area the company has identified at least two high priority gold trends with a combined strike of 5km
or more (Fig 4). These trends parallel each other and have significant drill results associated with them that include:
5m @ 1.28 g/t gold from 1m (includes 1m @4.24 g/t)
16m @ 1.64 g/t gold from 13m (includes 1m 13.1 g/t)
3m @ 2.51 g/t gold from 33m (includes 1m @ 5.93 g/t)
6m @ 1.22 g/t gold from 60m (includes 1m @ 5.92 g/t)
11m @ 9.58 g/t gold from 57m (includes 1m @ 98.7 g/t)
6m @ 2.24g/t gold from 79m depth (includes 1m @ 4.27 g/t)
1m @ 11.6g/t gold from 82m depth
1m @ 3.08g/t gold from 89m depth
HFRC015:
HFRC019:
HFRC019:
HFRC019:
HFRC022:
HFRC025:
HFRC040:
HFRC041:
HFRC063: 1m @ 1.22 g/t gold from 2m
HFRC064: 7m @ 0.92 g/t gold from 17m
HFRC070: 3m @ 5.01 g/t gold from 44m depth (including 1m @ 14.3 g/t)
HFRC070: 2m @ 1.24 g/t gold from 77m
HFRC085: 3m @ 3.07 g/t gold from 2m (including 1m @ 7.54 g/t)
HFRC087: 3m @ 1.03 g/t gold from 41m
Figure 4. Location of the MQW1 & MQW3 gold targets at May Queen as well as the interpreted mineralised trends.
Great Western believes the May Queen prospect remains highly prospective for gold and intends to continue systematic
exploration of the area. The Company estimates that only 15% of the prospect has been tested to date.
Ives Find
At Ives Find, Great Western reported that it intersected high grade gold in RC drilling last year. The Company interpreted the
gold to be associated with a mineralised trend at least 700m long that remains open.
This year a structural study highlighted the Ives Find area as highly prospective for gold and recommended further drilling.
The Company is planning both RC and initial diamond drilling to start testing these recommendations.
Yerrida North JV
• Sandfire Resources NL (“Sandfire”; ASX:SFR) to Farm-In into Great Western’s north Yerrida tenements
• 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.
• Sandfire completed a regional Airborne EM survey over the majority of the project area
The Yerrida North JV tenure is considered prospective for copper-gold, copper-cobalt, nickel-cobalt and gold (Fig 6). Sandfire
entered into a Farm-In Agreement where they have committed to a minimum exploration spend of $1.7 million over three
years and may initially earn 70% by delineating at least 50,000t in-ground copper Mineral Resource.
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 discoveries of the nearby Degrussa
and Monty deposits. It also provides a clear pathway from discovery to production in this area.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 9
Review of Exploration Activities During the year Sandfire completed a regional airborne EM survey that covered the majority of the project area (Fig 5). The
survey successfully mapped highly variable conductive terrain and ha s proven very valuable in supporting a 3D interpretation
of the basin’s geological architecture.
Figure 5. Regional airborne EM flown by Sandfire at the Yerrida North JV project
The regional interpretation is ongoing; utilising aeromagnetic, gravity and the new AEM imagery to inform target generation.
This will be used to plan future exploration activities within the Yerrida project.
The Yerrida North JV tenure is considered prospective for copper-gold, copper-cobalt, nickel-cobalt and gold. Sandfire
entered into a Farm-In Agreement where they have committed to a minimum exploration spend of $1.7 million over three
years and may initially earn 70% by delineating at least 50,000t in-ground copper Mineral Resource.
The Farm-In is a strong endorsement of Yerrida’s base metal potential and allows the Company’s northern Yerrida tenements
to be explored by 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
25km north, which is within trucking distance of the project.
The Farm-In Agreement also provides a clear pathway from discovery to production for the project and it frees up resources
and funds for the Company, enabling a greater focus and expenditure commitment on its other copper-cobalt, VMS and
gold projects.
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
(1,560km2) 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.
Yerrida South
Great Western has a large landholding in the southern area of the Yerrida Basin that it believes is prospective for sedimentary
hosted copper-cobalt-lead-zinc-silver-vanadium. The Company retains 100% ownership of these tenements which include
the Chisel and Frustration Well prospects.
Chisel
The Chisel prospect is located approximately 10km north of the Paroo lead mine and 45km NW of Wiluna (Fig 6). Great
Western announced last year the completion of a detailed gravity survey at Chisel that defined a discrete gravity anomaly
located at a highly prospective structural setting.
The Chisel gravity anomaly is located at the intersection of the Perseverance and Chisel faults. The Perseverance fault is a
major fault within the Yilgarn block that is associated with 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
located to the northwest (Fig 6).
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 11
Review of Exploration Activities Figure 6. Location of the Company’s Yerrida projects and the Chisel prospect
The Company believes the Chisel gravity target may represent Proterozoic sediment hosted base metal mineralisation
(zinc-lead-silver); either replacement style or Mississippi Valley Type (“MVT”). Australian examples are Century zinc deposit
(replacement style) and locally the Magellan deposit (MVT style).
During the year Great Western completed three RC holes to gather geological data to assist in the further interpretation and
geophysical assessment. Encouragingly, drilling indicated that a similar geological process that is associated with Century
style zinc mineralisation is occurring and the Company is planning further work at the prospect.
Figure 7. Chisel gravity anomaly at the intersection of the regional Perseverance and local Chisel faults.
Fairbairn
The Fairbairn project comprises of 1,377km2 area 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 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 currently compiling data and preparing a work plan for the project.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 13
Review of Exploration Activities 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.
Tenement Schedule
Project
Tenement No
Status
Ownership
Comments
Yandal West
Yerrida South
Yerrida North JV
Fairbairn
E 53/1369
E 53/1612
E 53/1816
E 53/1949
E 51/1727
E 51/1807
E 51/1855
E 51/1856
E 53/1713
E 53/1730
E 53/1740
E 53/1917
E 53/1948
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
E 52/2517
E 52/3528
E 69/3193
E 69/3442
E 69/3443
E 69/3495
E 69/3496
E 69/3499
E 69/3534
E 69/3534
E 69/3534
E 69/3534
E 69/3534
E 69/3534
Live
Live
Live
Pending
Live
Live
Pending
Pending
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Pending
Live
Live
Live
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Pending
100%
80%
80%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
0%
100%
0%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Diversified free carried to BFS
Diversified free carried to BFS
Sandfire earning 70%
Sandfire earning 70%
Sandfire earning 70%
Sandfire earning 70%
Sandfire earning 70%
Sandfire earning 70%
Sandfire earning 70%
Sandfire earning 70%
Sandfire earning 70%
Sandfire earning 70%
Sandfire earning 70%
100% of all Non-Diamond Mineral Rights
100% of all Non-Diamond Mineral Rights
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 15
Review of Exploration Activities Project
Tenement No
North Yilgarn
Pilbara
E 51/1877
E 51/1878
E 51/1879
E 51/1880
E 51/1881
E 51/1882
E 52/3610
E 52/3611
E 53/1982
E 53/1983
E 53/1987
E 53/1988
E51/1893
E53/2017
E53/2026
E53/2027
E53/2028
E53/3028
E 45/5021
Status
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Pending
Ownership
Comments
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
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 2018.
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
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.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 17
Review of Exploration Activities Mr Rimas Kairaitis
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 2006 – 2016, 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
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)
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.
Gold and base metals
The principal activity during the year to 30 June 2018 was mineral exploration for gold, base metals 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 $1,263,091 (2017: $690,505). The Company also holds
$1,000,000 in term deposit at 30 June 2018 and incurred expenditure on exploration and evaluation of $1,763,338 (2017:
$509,150) before write offs during the year.
Results of Operations
The operating loss for the year, after providing for income tax was $1,069,292 (2017: $1,343,462).
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.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 19
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
The Directors are not aware of any matter or circumstance that has arisen since 30 June 2018 which has significantly
affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the
Group, in future financial years.
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.
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 2018, the Company issued the following options:
Unlisted
Unlisted
Unlisted
Unlisted
Grant Date
12/10/2017
3/10/2017
3/10/2017
3/10/2017
No of Options
Exercise Price
15,000,000
2,000,000
2,000,000
2,000,000
$0.022
$0.02
$0.04
$0.06
Expiry Date
12/10/2020
31/12/2017
31/12/2018
31/12/2019
Directors’ Meetings
The Directors attended the following director meetings during the year:
K C Somes
J A Luckett
R Kairaitis
T R Grammer
Meetings Eligible to Attend
Meetings Attended
4
4
4
4
4
4
4
4
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
60,364,658
31,745,833
3,000,000
2,000,000
Options
4,000,000
4,000,000
4,000,000
4,000,000
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 $17,100 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.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 21
DIRECTOR’S REPORT
Non-Audit Services
Bentleys did not provide any non-audit services during the year ended 30 June 2018.
Details of the amounts paid or payable to the auditor for audit 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 63.
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
Chairman (Non-executive)
Managing Director (Executive)
Director (Non-executive)
Director (Non-executive)
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.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 23
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 $250,000, 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 $20,833 on the
grounds of inadequate performance or prolonged illness, or 3 month’s
notice or payment in lieu of an amount of $62,500 for redundancy or the
Company being taken over.
Termination payments are not payable on resignation or under
circumstances of unsatisfactory performance.
Remuneration of Key Management Personnel
2018
Short term
benefits
Salary &
Wages
Name of Director
Executive director
Jordan Luckett
$250,000
Non-executive director
Kevin Somes
Terry Grammer
Rimas Kairaitis
Totals
2017
$55,000
$35,000
$30,000
$370,000
Short term
benefits
Salary &
Wages
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
$55,000
$35,000
$2,500
$85,000
$12,500
$340,000
Bonuses
Non-cash
benefits
Superan
nuation
Share
based
payments
Options
Other
long term
employee
benefits
Total
Performance
related %
-
-
-
-
-
-
-
-
-
-
$23,750
$5,225
$3,325
$2,850
$35,150
-
-
-
$22,005
$22,005
$47,650 $321,400
0.0%
$60,225
$38,325
$54,855
0.0%
0.0%
40.1%
$47,650 $474,805
Bonuses
Non-cash
benefits
Superan
nuation
Share
based
payments
Options
Other
long term
employee
benefits
Total
Performance
related %
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$14,250
$42,360
- $206,610
20.5%
$5,225
$3,325
-
$8,075
$1,188
$42,360
$42,360
$42,360
$42,360
- $102,585
-
-
$80,685
$2,500
- $135,435
-
$56,048
41.3%
52.5%
0.0%
31.3%
75.6%
$32,063
$211,800
- $583,863
(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 2018 || 25
DIRECTOR’S REPORT
Options granted as part of remuneration
Shareholdings of Key Management Personnel
30 June 2018
Grant Date
No of Options
Exercise price
Expiry Date
Value of
Options
Granted
Rimas Kairaitis
3 October 2017
6,000,000
$0.02, $0.04, $0.06
31 December 2019
$22,005
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
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 2018
Directors
Jordan Luckett
Kevin Somes
Terry Grammer
Rimas Kairaitis
30 June 2017
Directors
Jordan Luckett
Kevin Somes
Terry Grammer
Rimas Kairaitis(1)
Ian Kerr(2)
Craig Mathieson(3)
Balance at
1 July 2017
Granted
Exercised/
Cancelled
Expired/
Other
Balance at 30
June 2018
Vested
6,000,000
6,000,000
6,000,000
-
-
-
(2,000,000)
(2,000,000)
(2,000,000)
-
6,000,000
(2,000,000)
18,000,000
6,000,000
(8,000,000)
-
-
-
-
-
4,000,000
4,000,000
4,000,000
4,000,000
16,000,000
100%
100%
100%
100%
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
(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.
30 June 2018
Jordan Luckett
Kevin Somes
Terry Grammer
Rimas Kairaitis
30 June 2017
Jordan Luckett
Kevin Somes
Terry Grammer
Rimas Kairaitis(1)
Ian Kerr(2)
Craig Mathieson(3)
Balance
1 July 2017
Granted as
Remuneration
On exercise
of Options
Net Change
Other
Balance
30 June 2018
29,745,833
48,636,966
-
1,000,000
79,382,799
-
4,632,692
-
-
4,632,692
2,000,000
2,000,000
2,000,000
2,000,000
8,000,000
-
-
-
-
-
31,745,833
55,269,658
2,000,000
3,000,000
92,015,491
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
(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)
This Report of Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of the Directors.
Dated this 26 day of September 2018
K C Somes
Chairman
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 27
REMUNERATION REPORT (AUDITED) Corporate Governance Statement
For the year ended 30 June 2018
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
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
Non-executive Director
Appointed 31 May 2017
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.
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
No.
-
-
1
%
-
-
25
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 29
CORPORATE GOVERNANCE STATEMENT
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.
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
Trading Policy
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.
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.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 31
CORPORATE GOVERNANCE STATEMENT
Consolidated Statement of Financial Position
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Note
2018
$
2017
$
For The Year Ended 30 June 2018
As at 30 June 2018
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
The above statement of financial position should be read in conjunction with the accompanying notes.
1,263,091
366,668
1,000,400
2,630,159
11,181
8,207,648
8,218,829
690,505
145,661
48,796
884,962
10,553
6,525,098
6,535,651
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
10,848,988
7,420,613
Exploration & evaluation expenditure not capitalised
Project acquisition costs
8
9
10
11
12
13
14
15
322,684
322,684
656,701
656,701
322,684
656,701
10,526,304
6,763,912
29,178,726
864,237
24,500,456
710,823
(19,516,659)
(18,447,367)
10,526,304
6,763,912
Note
5
12
6
7
2018
$
11,581
-
-
(201,979)
(396,593)
(169,996)
(3,397)
(64,940)
(153,415)
(80,788)
(9,765)
-
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)
(1,069,292)
(1,343,462)
-
-
(1,069,292)
(1,343,462)
-
-
(1,069,292)
(1,343,462)
(0.13)
(0.32)
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)
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 2018 || 33
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
For The Year Ended 30 June 2018
For The Year Ended 30 June 2018
30 June 2018
Balance At 1 July 2017
Loss for the year
Total comprehensive income for the year
Option issues
Options exercised
Share based payements
Shares issued during the year
Transaction costs
Balance at 30 June 2018
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
Share Option
Reserve
Accumulated
Losses
$
$
$
Total
Equity
$
24,500,456
710,823
(18,447,367)
-
-
-
360,000
91,025
4,530,000
(302,755)
29,178,726
Issued Capital
$
20,244,437
-
-
-
227,575
1,243,100
(55,986)
2,841,330
24,500,456
-
-
(1,069,292)
(1,069,292)
153,414
-
-
-
-
-
-
-
-
-
6,763,912
(1,069,292)
(1,069,292)
153,414
360,000
91,025
4,530,000
(302,755)
864,237
(19,516,659)
10,526,304
Share Option
Reserve
Accumulated
Losses
Total Equity
$
-
-
-
618,630
-
-
-
92,193
710,823
$
$
(17,103,905)
(1,343,462)
(1,343,462)
-
-
-
-
-
(18,447,367)
3,140,532
(1,343,462)
(1,343,462)
618,630
227,575
1,243,100
(55,986)
2,933,523
6,763,912
The above statement of changes in equity should be read in conjunction with the accompanying notes.
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
Investment in term deposit
Vanguard acquisition cash reserves
Net cash used in/(used from) investing activities
Cash flows from financing activities
Proceeds from issue of shares and options
Share issue costs
Net cash provided by financing activities
Net increase in cash held
Note
2018
$
2017
$
(1,128,638)
(1,763,338)
11,582
(473)
(426,582)
(473,879)
1,068
(857)
16
(2,880,867)
(900,250)
47,922
(141,714)
(1,000,000)
-
(1,093,792)
451,604
(107,314)
-
41,375
385,665
4,850,000
(302,755)
4,547,245
1,243,100
(77,194)
1,165,906
572,586
651,321
Cash at the beginning of the financial year
690,505
39,184
Cash at the end of the financial year
8
1,263,091
690,505
The above statement of cash flows should be read in conjunction with the accompanying notes.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 35
These financial statements and notes represent those of Great Western Exploration Limited (‘the Company’) and its controlled
entities (‘the Group’).
In preparing the consolidated financial statements, all intragroup balances and transactions between entities in the
consolidated group have been eliminated in full on consolidation.
The financial statements were authorised for issue on 26 September 2018 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 $1,069,292 (2017: $1,343,462). During the year the company raised $4,227,245
after issue costs, by the way of share placements in October 2017 and December 2017. The Group has a working capital
surplus of $2,307,475 at 30 June 2018 (30 June 2017: $228,261). The Group has ongoing expenditures in respect of
administration costs and exploration and evaluation expenditure on its Australian exploration projects.
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 22) 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.
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 21
to the financial statements.
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) The consideration transferred;
(ii) Any non-controlling interest, and
(iii) The acquisition date fair value of any previously held equity interest over the acquisition date fair value of net
identifiable assets acquired.
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.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 37
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2018 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
This standard is 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. The group has assessed the impact of the adoption of AASB 9 and has
concluded that no material changes are expected to result from the adoption of the new standard. The Group will
adopt this standard from 1 July 2018.
AASB 15 Revenue from Contracts with Customers
This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The standard provides
a single standard for revenue recognition. The core principle of the standard is that an entity will recognise revenue
to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to
which the entity expects to be entitled in exchange for those goods or services. The standard will require: contracts
(either written, verbal or implied) to be identified, together with the separate performance obligations within the
contract; determine the transaction price, adjusted for the time value of money excluding credit risk; allocation of
the transaction price to the separate performance obligations on a basis of relative stand-alone selling price of each
distinct good or service, or estimation approach if no distinct observable prices exist; and recognition of revenue when
each performance obligation is satisfied. Credit risk will be presented separately as an expense rather than adjusted to
revenue. For goods, the performance obligation would be satisfied when the customer obtains control of the goods. For
services, the performance obligation is satisfied when the service has been provided, typically for promises to transfer
services to customers. For performance obligations satisfied over time, an entity would select an appropriate measure
of progress to determine how much revenue should be recognised as the performance obligation is satisfied. Contracts
with customers will be presented in an entity’s statement of financial position as a contract liability, a contract asset, or
a receivable, depending on the relationship between the entity’s performance and the customer’s payment. Sufficient
quantitative and qualitative disclosure is required to enable users to understand the contracts with customers; the
significant judgements made in applying the guidance to those contracts; and any assets recognised from the costs
to obtain or fulfil a contract with a customer. The Group has assessed the impact of AASB15 on its revenue in relation
to its material contracts with customers and has concluded that no material changes are expected to result from the
adoption of the new standard. The Group will adopt this standard from 1 July 2018.
AASB 16 Leases
This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard replaces
AASB 117 ‘Leases’ and for lessees will eliminate the classifications of operating leases and finance leases. Subject to
exceptions, a ‘right-of-use’ asset will be capitalised in the statement of financial position, measured as the present value
of the unavoidable future lease payments to be made over the lease term. The exceptions relate to short-term leases
of 12 months or less and leases of low-value assets (such as personal computers and small office furniture) where an
accounting policy choice exists whereby either a ‘right-of-use’ asset is recognised or lease payments are expensed to
profit or loss as incurred. A liability corresponding to the capitalised lease will also be recognised, adjusted for lease
prepayments, lease incentives received, initial direct costs incurred and an estimate of any future restoration, removal
or dismantling costs. Straight-line operating lease expense recognition will be replaced with a depreciation charge for
the leased asset (included in operating costs) and an interest expense on the recognised lease liability (included in
finance costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher
when compared to lease expenses under AASB 117. However EBITDA (Earnings Before Interest, Tax, Depreciation and
Amortisation) results will be improved as the operating expense is replaced by interest expense and depreciation in
profit or loss under AASB 16. For classification within the statement of cash flows, the lease payments will be separated
into both a principal (financing activities) and interest (either operating or financing activities) component. For lessor
accounting, the standard does not substantially change how a lessor accounts for leases. The group will adopt this
standard from 1 July 2019 but the impact of its adoption is yet to be fully assessed by the group.
d) Cash and Cash Equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term
deposits with an original maturity of six months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
e) Trade and Other Receivables
Trade receivables, which generally have 30 day terms, are recognised initially at fair value and subsequently measured
at amortised cost using the effective interest method, less an allowance 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 when there is objective evidence that the Company will not be able to collect
the receivable.
f)
Investments and Other Financial Assets
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.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of assets not at fair value
through profit or loss, directly attributable transaction costs.
All regular way purchases and sales of financial assets are recognised on the trade date i.e. the 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 year established generally by regulation or convention in the market
place. Financial assets are derecognised when the right to receive cash flows from the financial assets have expired or
been transferred.
(i) Financial assets at fair value through profit or loss
Financial assets classified as held for trading are included in the category ‘financial assets at fair value through profit
or loss’. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term
with the intention of making a profit. Derivatives are also classified as held for trading unless they are designated as
effective hedging instruments. Gains or losses on investments held for trading are recognised in the profit or loss and
the related assets are classified as current assets in the Statement of Financial Position.
(ii) Loans and receivables
Loans and receivables including loan notes and loans to key management personnel are non-derivative financial assets
with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost
using the effective interest method. Gains and losses are recognised in profit or loss when the loans and receivables
are derecognised or impaired. These are included in current assets except for those maturities greater than 12 months
after balance date, which are classified as non-current.
(iii) Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable
payments, and it is the Group’s intention to hold these investments to maturity. They are subsequently measured at
amortised cost.
Held-to-maturity investments are included in non-current assets, except for those which are expected to mature within
12 months after the end of the reporting period. All other investments are classified as current assets.
(iv) Available-for-Sale Investments
Available-for-sale investments are those non-derivative financial assets that are designated as available-for-sale or
are not classified as any of the three preceding categories. After initial recognition available-for sale investments are
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 39
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2018 measured at fair value with gains or losses being recognised as a separate component of equity until the investment is
derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously
reported in equity is recognised in profit or loss.
The fair 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
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.
Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses.
Employee Leave Benefits
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
(i) Wages, salaries, annual leave and sick leave
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.
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.
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).
When a licence is relinquished or a project abandoned, the related costs are recognised in the Statement of
Comprehensive Income immediately.
The Company has in place the Great Western Exploration Limited Employee Share Option Plan to provide benefits to
directors and senior executives.
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.
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.
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:
(i)
the grant date fair value of the award;
(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.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2018 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.
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.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of diluted
earnings per share.
Other Taxes
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:
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When the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liabilityin 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
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:
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when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not
a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or
loss; or
when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint
ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary
difference will reverse in the foreseeable future and taxable profit will be available against which the temporary
difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance 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.
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.
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).
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2018 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
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
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.
(a) Significant accounting estimates and judgements
(i) Impairment of non-financial assets
The Company assesses impairment on all assets at each reporting date by evaluating conditions specific to the Company
and to the particular asset that may lead to impairment. These include technology and economic environments. If an
impairment trigger exists, the recoverable amount of the asset is determined. This involves value-in-use calculations,
which incorporate a number of key estimates and assumptions.
(ii) Share-based payment transactions
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.
(iii) Estimation of useful lives of assets
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
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.
(v) Environmental issues
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.
Measurements based on unobservable inputs for the asset or liability.
(vi) Taxation
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.
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.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2018 3.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company’s financial instruments consist mainly of deposits with banks, accounts receivable and payable.
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:
Financial Assets
Cash and cash equivalents
Receivables
Financial assets
Financial Liabilities
Trade and other payables
Note
8
9
10
13
2018
$
1,263,091
366,668
1,000,400
2,630,159
2017
$
690,505
145,661
48,796
894,962
322,684
322,684
656,701
656,701
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.
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.
Financial instruments other than receivables that potentially subject the Company 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.
The maximum amount of credit risk the Company considers it would be exposed to would be $2,263,091 (2017:
$690,505) 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
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
2018
$
2017
$
2018
$
2017
$
2018
$
2017
$
Financial Assets
Cash and cash
equivalents
Trade and other
Receivables
Other Financial
assets
Weighted
average
interest rate
1,263,091
609,505
-
-
1,263,091
609,505
-
-
366,668
145,661
366,668
145,661
400
48,796
1,000,400
48,796
8
9
-
10
1,000,000
1.63
0.55
The effect on profit and equity, after tax, if interest rates at that date had changed by -/+ 100 basis points from the
weighted average for the year with all other variables held constant as a sensitivity analysis. Would be a +/- change to
profit and equity of $12,670 (2017: $6,950).
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.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2018 Contracted maturities of payables at balance date
Segment liabilities
Payable
- Less than 6 months
- 6 to 12 months
- 1 to 5 years
(e) Commodity Price Risk
2018
$
254,044
68,640
-
2017
$
$
539,700
117,001
-
322,684
656,701
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
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.
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 2018
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
Mineral Exploration
($)
Finance and
Administration ($)
-
-
-
-
-
-
-
-
-
(80,788)
(9,765)
11,581
-
11,581
(201,979)
(396,593)
(169,996)
(3,397)
(64,940)
(153,415)
-
-
Total ($)
11,581
-
11,581
(201,979)
(396,593)
(169,996)
(3,397)
(64,940)
(153,415)
(80,788)
(9,765)
Net profit/ (loss) before tax from operations
(90,553)
(978,739)
(1,069,292)
30 June 2017
Gain on farm-in arrangement
Interest received
Other income
Total segment revenue
Employee benefit expense
Administration expenses
Directors fees
Depreciation
Compliance and regulatory expenses
Share based payments
Mineral exploration written-off
Other costs
Mineral Exploration
($)
Finance and
Administration ($)
500,000
-
11,259
511,259
-
-
-
-
-
-
(686,922)
(81,265)
-
1,106
6,274
7,380
(64,605)
(224,295)
(150,000)
(4,892)
(31,493)
(618,629)
-
-
Total ($)
500,000
1,106
17,533
518,639
(64,605)
(224,295)
(150,000)
(4,892)
(31,493)
(618,629)
(686,922)
(81,265)
Net profit/ (loss) before tax from operations
(256,928)
(1,086,534)
(1,343,462)
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2018
(ii) Segment assets
30 June 2018
Current assets
Cash and cash equivalents
Trade and other receivables
Other
Non-current assets
Exploration and evaluation expenditure
Plant & Equipment
Total assets
30 June 2017
Current assets
Cash and cash equivalents
Trade and other receivables
Other
Non-current assets
Exploration and evaluation expenditure
Plant & Equipment
Total assets from operations
(iii) Segment liabilities
30 June 2018
Current Liabilities
Trade and other payables
Total liabilities from operations
30 June 2017
Current Liabilities
Trade and other payables
Non-current liabilities
Other liabilities
Mineral Exploration
($)
Finance and
Administration ($)
-
249,028
-
8,207,648
6,579
8,463,255
1,263,091
117,640
1,000,400
-
4,602
2,385,733
Mineral Exploration
($)
Finance and
Administration ($)
-
107,314
-
6,525,098
7,426
6,639,838
690,505
38,347
48,796
-
3,127
780,775
Mineral Exploration
($)
Finance and
Administration ($)
174,784
174,784
147,900
147,900
Mineral Exploration
($)
Finance and
Administration ($)
Total ($)
1,263,091
366,668
1,000,400
8,207,648
11,181
10,848,988
Total ($)
690,505
145,661
48,796
6,525,098
10,553
7,420,613
Total ($)
322,684
322,684
Total ($)
354,520
302,181
656,701
Total liabilities from operations
354,520
302,181
656,701
The Company’s revenue is received from sources within Australia.
(iv) Revenue by geographical region
The Company’s revenue is received from sources within Australia.
(iv) Assets by geographical region
The geographical location of all assets are in Australia.
(v) Major customers
Due to the nature of its current operations, the Company does not provide products and services.
5. EXPENSES
Employee benefits
Salaries
Superannuation
Other Employee Benefits
6. INCOME TAX
2018
$
76,804
56,535
68,640
201,979
2018
$
2017
$
$
46,200
18,405
-
64,605
2017
$
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
(1,069,292)
(1,343,462)
Income tax benefit at the statutory income tax rate of 27.5% (2017: 27.5%)
Expenditure not allowable for income tax purposes
Capitalised mineral exploration expenditure
Capital raising costs
Under/over from prior year
Benefit of tax losses not brought to account as an asset
(294,055)
74,179
(518,076)
(15,396)
-
753,348
(369,452)
380,720
(175,306)
(15,396)
(225,258)
404,692
Income Tax expense reported in the Statement of Profit or Loss and Other
Comprehensive Income
-
-
b. As at 30 June 2018, the Company has estimated tax losses of approximately $22,358,585 (2017: $21,095,133), 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 $8,207,648 (2017: $6,525,098) 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.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 51
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2018
7. EARNINGS PER SHARE
10. OTHER FINANCIAL ASSETS
Loss used in the calculation of basic EPS
Weighted average number of ordinary shares used in calculation of basic
earnings per share
8. CASH AND CASH EQUIVALENTS
Cash at bank
Cash on deposit
2018
$
2017
$
(1,069,292)
(1,343,462)
Current
Financial assets
819,522,097
413,904,299
4 Month term deposit
Held for trading Australian listed shares (Level 1 fair value hierarchy)
2018
$
18,452
1,244,639
1,263,091
2017
$
58,421
632,084
690,505
Changes in fair value are included in the statement of comprehensive income.
11. PROPERTY, PLANT AND EQUIPMENT
The effective interest rate on short term bank deposits on average was 1.63% (2017: 0.55%), with an average maturity
of 6 months.
Plant and Equipment – at cost
Less: accumulated depreciation
9. TRADE AND OTHER RECEIVABLES
Reconciliation of the carrying amount of property, plant and equipment
Current
Tenement applications and deposits
GST receivable
Prepayments
2018
$
249,028
115,395
2,245
366,668
2017
$
107,314
37,057
1,290
145,661
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.
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
Acquisition of Vanguard Exploration Ltd
Deferred exploration expenditure
Mineral expenditure written off (i)
Balance at end of financial year
2018
$
2017
$
400
1,000,000
1,000,400
48,796
-
48,796
2018
$
105,383
(94,202)
11,181
2018
$
10,553
4,025
-
(3,397)
11,181
2018
$
6,525,098
-
-
1,763,338
(80,788)
8,207,648
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
(i) Mineral expenditure written off for the year was $80,788, being tenement E53/1712 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.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2018 13. TRADE AND OTHER PAYABLES
Current
Trade payables
Sundry payables and accruals
PAYG Withholding
Deferred Harris Find Acquisition Costs
Deferred Tenement costs
2018
$
129,261
130,802
62,621
-
-
322,684
2017
$
72,979
418,404
44,398
53,918
67,002
656,701
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.
14. ISSUED CAPITAL
Ordinary Shares
Movements
Ordinary Shares
Balance 1 July
2018
$
2017
$
29,178,726
24,500,456
2018
Number
2017
Number
2018
$
2017
$
563,197,387
264,100,826
24,500,456
20,244,437
Share based payments
7,001,923
14,223,437
91,025
227,575
Share issue
- Exercise of options
20,000,000
-
360,000
- Acquisition of Vanguard Exploration
- Acquisition of Harris Find
- Acquisition of Exploration tenements
-
-
-
150,833,124
25,000,000
2,000,000
-
-
-
-
Placement
- Aug 2017
- Oct 2017
- Dec 2017
- Aug 2016
- Dec 2016
- Mar 2017
Issue costs
At 30 June
140,000,000
90,000,000
100,000,000
-
-
-
1,540,000
990,000
2,000,000
24,540,000
62,500,000
20,000,000
920,199,310
563,197,387
-
-
920,199,310
563,197,387
29,481,481
(302,755)
29,178,726
-
2,413,330
400,000
28,000
-
-
-
368,100
625,000
250,000
24,556,442
(55,986)
24,500,456
The Company at 30 June 2018 has issued share capital amounting to 920,199,310 (2017: 563,197,387) 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.
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
2018
$
1,263,091
366,668
1,000,400
(322,684)
2,307,475
2018
$
864,237
864,237
2018
$
710,823
153,414
-
-
2017
$
690,505
145,661
48,706
(656,701)
228,171
2017
$
710,823
710,823
2017
$
-
710,823
-
-
2018
No.
75,500,000
21,000,000
-
(20,000,000)
2017
No.
-
75,500,000
-
-
76,500,000
75,500,000
864,237
710,823
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 2018 || 55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2018
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
17. RELATED PARTY DISCLOSURE
a) Transactions with Directors and Directors Related Entities
2018
$
2017
$
(1,069,292)
(1,343,462)
3,397
153,415
-
80,788
(78,338)
(274,127)
(1,763,338)
66,628
4,892
618,629
(500,000)
689,985
(24,284)
126,367
(472,377)
-
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) the contribution to the Company which has been made by the Participant;
(ii) 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.
(2,880,867)
(900,250)
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
There were no related party transactions during the year ended 30 June 2018 other then as disclosed in Notes 18 & 19
and the remuneration report.
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
2018
$
370,000
35,150
47,650
-
22,005
474,805
2017
$
340,000
32,063
-
-
211,800
583,863
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
2018
$
2017
$
153,414
710,823
Expense arising from equity share-based payment transactions settled via Shares
91,025
3,068,905
Total expense arising from share-based payment transactions
244,439
3,779,728
The share-based payment plans are described below. There have been no cancellations or modifications to any of the plans
during 2018 and 2017.
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
- expiring 12 Oct 2020
Forfeited during the year
Expired during the year
Exercised during the year
Outstanding at end of financial year
2018
No.
75,500,000
Exercise
price
2017
No.
Exercise
price
2,000,000
2,000,000
2,000,000
-
-
-
-
$0.02
$0.04
$0.06
-
-
-
-
15,000,000
$0.022
-
-
(18,000,000)
(2,000,000)
76,500,000
-
-
$0.02
$0.00
14,000,000
18,500,000
12,000,000
2,000,000
2,000,000
2,000,000
25,000,000
-
-
-
-
-
75,500,000
$0.02
$0.04
$0.06
$0.00
$0.02
$0.04
$0.02
-
-
-
-
-
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2018
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
2,000,000
$0.01500
$0.00
29 November 2016
10,000,000
$0.00620
$0.02
29 November 2016
2,000,000
$0.01011
$0.02
29 November 2016
10,000,000
$0.00690
$0.04
29 November 2016
2,000,000
$0.00965
$0.04
29 November 2016
12,000,000
$0.00805
$0.06
18 November 2016
4,000,000
$0.00680
$0.02
18 November 2016
8,500,000
$0.00760
$0.04
24 March 2017
3 October 2017
3 October 2017
3 October 2017
25,000,000
$0.01280
2,000,000
$0.001873
$0.02
$0.02
2,000,000
$0.003797
$0.04
2,000,000
$0.005333
$0.06
12 October 2017
15,000,000
$0.008761
$0.022
31 December
2019
31 December
2017
31 December
2019
31 December
2018
31 December
2019
31 December
2019
31 December
2017
31 December
2018
29 November
2016
29 November
2016
29 November
2016
29 November
2016
29 November
2016
29 November
2016
18 November
2016
18 November
2016
30 June 2020
24 March 2017
31 December
2017
31 December
2018
31 December
2019
12 October
2020
3 October 2017
3 October 2017
3 October 2017
12 October 2017
The total number of options exercisable at year end was 76,500,000.
20,000,000 options were exercised during the year.
d) Option pricing model
Equity-settled transactions
The fair value of the equity-settled share options granted under the Employee Share Option Plan is estimated as at
the date of the grant using a Monte Carlo Pricing Model as part of the term of the issued options, the options will vest
immediately when the Share Price Equals or exceeds the Exercise Price of the respective shares after the date of issues
of the options.
Monte Carlo Price Model
Grant Date
29/11/16
29/11/16
29/11/16
29/11/16
29/11/16
29/11/16
Dividend yield (%)
Expected volatility (%)
Risk free interest rate (%)
Expected life of options (yrs)
Option exercise price ($)
Grant Date Share Price
-
131
1.91
3.1
0.00
0.015
-
131
1.78
1.1
0.02
0.015
-
131
1.91
3.1
0.02
0.015
-
131
1.78
2.1
0.04
0.015
-
131
1.91
3.1
0.04
0.015
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
18/11/16
18/11/16
24/3/2017
29/09/17
29/09/17
29/09/17
-
151
1.86
3.2
0.02
0.016
-
151
1.86
3.2
0.04
0.016
-
132
1.74
3.3
0.02
0.017
-
130
1.93
0.3
0.02
0.013
-
130
1.93
1.3
0.04
0.013
-
130
1.93
2.3
0.06
0.013
Dividend yield (%)
Expected volatility (%)
Risk free interest rate (%)
Expected life of options (yrs)
Option exercise price ($)
Weighted average share price
at measurement date ($)
e) Share issued in lieu of services
2018
Grant Date/entitlement
Shares issued in lieu of outstanding director fees and employee salary as
approved at GM on 26 September 2017
2017
Grant Date/entitlement
Shares issued in lieu of 30 June 2016 outstanding director fees and salary’s
as approved at AGMN on 29 November 2016
Number of
Instruments
Grant and
Vesting Date
Fair Value at
grant date $
7,001,923
03/10/2017
0.013
Number of
Instruments
Grant and
Vesting Date
Fair Value at
grant date $
14,223,437
29/11/2016
0.016
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2018
The following information has been extracted from the books and records of the parent and has been prepared in accordance
with Australian Accounting Standards.
20. PARENT INFORMATION
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
2018
$
2017
$
2,618,875
7,950,442
873,687
6,266,620
10,569,317
7,140,307
317,080
651,097
317,080
651,097
10,252,237
6,489,210
28,893,561
24,215,293
864,238
710,822
(19,505,562)
(18,436,905)
10,252,237
6,489,210
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Total loss
(1,068,656)
(1,333,000)
Total comprehensive income
(1,068,656)
(1,333,000)
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 2018, there were no contingent liabilities in relation to the subsidiaries.
Contractual commitments
At 30 June 2018, Great Western Exploration Limited had not entered into any contractual commitments for the acquisition
of property, plant and equipment (2017: Nil).
21. CONTROLLED ENTITIES
Name
Principal
Activity
Country of
Incorporation
Vanguard Exploration Limited
Mineral
Exploration
Australia
Ordinary
Shares
Ownership Interest
2018
100%
2017
100%
GTE Holdings Pte Ltd
Investment
Singapore
Ordinary
100%
100%
GTE KZ LLP
Mineral
Exploration
Kazakhstan
Ordinary
100%
100%
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
481,330
757,000
2018
$
2017
$
CONTINGENCIES
There were no contingencies at the end of the financial year.
23. EVENTS AFTER BALANCE DATE
The Directors are not aware of any matter or circumstance that has arisen since 30 June 2018 which has significantly
affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the
Group, in future financial years.
24. AUDITORS REMUNERATION
The Directors are not aware of any matter or circumstance that has arisen since 30 June 2018 which has significantly
affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the
Group, in future financial years.
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
2018
$
2017
$
35,111
-
35,111
35,110
10,700
45,810
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 61
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor The Year Ended 30 June 2018 Directors’ Declaration
In accordance with a resolution of the directors of Great Western Exploration Limited, the Directors of the Company declare
that:
the financial statements and notes, as set out on pages 32 to 61, are in accordance with the Corporations Act 2001 and:
a.
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
b.
give a true and fair view of the financial position as at 30 June 2018 and of the performance for the year ended
on that date of the Company;
To The Board of Directors
1.
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
2.
the Directors have been given the declarations required by s 295A of the Corporations Act 2001 for the financial year
ended 30 June 2018.
Dated this 26 day of September 2018
K C Somes
Chairman
Auditor’s Independence Declaration under Section 307C of the
Corporations Act 2001
As lead audit partner for the audit of the financial statements of Great Western
Exploration Limited for the financial year ended 30 June 2018, 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
DOUG BELL CA
Partner
Dated at Perth this 26th day of September 2018
GREAT WESTERN EXPLORATION ANNUAL REPORT 2017 || 63
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 2018, the consolidated statement of profit or
loss and other comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies, and the
directors’ declaration.
In our opinion:
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
2018 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 Auditor’s 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
$1,069,292 during the year ended 30 June 2018. As stated in Note 1(a), these events or conditions, along with
other matters as set forth in Note 1(a), 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
Mineral Exploration Expenditure
As disclosed in note 12 to the financial statements,
as at 30 June 2018, the Group’s capitalised mineral
exploration expenditure was carried at $8,207,648.
The recognition and recoverability of the mineral
exploration expenditure was considered a key audit
matter due to:
The carrying value of mineral exploration
expenditure 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 mineral
exploration expenditure 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 mineral exploration
expenditure:
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;
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 65
AUDITOR’S REPORT Independent Auditor’s Report
To the Members of Great Western Exploration Limited (Continued)
Independent Auditor’s Report
To the Members of Great Western Exploration Limited (Continued)
Key Audit Matter
How our audit addressed the key audit matter
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
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.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2018, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
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.
Auditor’s 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.
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 67
AUDITOR’S REPORT Independent Auditor’s 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 2018.
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.
Auditor’s Opinion
In our opinion, the Remuneration Report of Great Western Exploration Limited, for the year ended 30 June
2018, complies with section 300A of the Corporations Act 2001.
BENTLEYS
Chartered Accountants
DOUG BELL CA
Partner
Dated at Perth this 26th day of September 2018
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 20 September 2018
Shareholder
Mrs Jane Elizabeth Somes & Ms Amy Jane Somes
1.3 DISTRIBUTION OF HOLDERS AS AT 20 September 2018
Shareholder
Number of Holders
Distribution is:
1 – 1000
1001 – 5,000
5001 – 10,000
10,001 – 100,000
100,001 – and over
`
No. of Shares
60,369,658
Fully Paid
Ordinary Shares
1,667
234
155
131
600
547
1,667
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 69
AUDITOR’S REPORT
1.4 TOP TWENTY HOLDERS:
(a) Ordinary Shares
The names of the twenty largest ordinary fully paid shareholders as at
20 September 2018 are as follows:
Name
1
2
3
4
5
6
7
8
9
HOLDREY PTY LTD
MR IAN KERR
MRS JANE ELIZABETH SOMES & MS AMY JANE SOMES
SUNDEN PTY LTD
CITICORP NOMINEES PTY LIMITED
DIVERSIFIED ASSET HOLDINGS PTY LTD
DILKARA NOMINEES PTY LTD
COVENTINA HOLDINGS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
10
BAM NR1 PTY LTD
11 MERRITS PTY LTD
12 MR JORDAN ASHTON LUCKETT
13 MR JOHN MORAN
14 MR KEVIN CLARENCE SOMES & MR JOHN COOKE
15
E&M LIMITED
16 OSIRIS CAPITAL INVESTMENTS PTY LTD
17
SORIA NOMINEES PTY LTD
18 MR PETER HOWELLS
19 MR JORDAN LUCKETT
20
BAINPRO NOMINEES PTY LIMITED
2. SCHEDULE OF MINERAL TENEMENTS
Details of Mineral Tenements are disclosed in the Review of Exploration Activities.
%
4.29
3.26
3.24
3.06
2.76
2.72
2.18
1.98
1.95
1.71
1.63
2.05
1.49
1.37
1.30
1.09
1.09
1.04
0.97
0.91
No. of Shares
39,478,956
30,000,000
29,822,364
28,166,667
25,357,852
25,000,000
20,100,000
18,177,264
17,952,389
15,759,841
15,000,000
14,445,000
13,717,236
12,618,187
12,000,000
10,000,000
10,000,000
9,600,000
8,962,500
8,371,000
39.61
364,529,256
GREAT WESTERN EXPLORATION ANNUAL REPORT 2018 || 71
ADDITIONAL INFORMATION TELEPHONE
(08) 6311 2852
ADDRESS
6 Outram Street
West Perth WA 6005
Australia
greatwesternexploration.com.au
ADDITIONAL INFORMATION