GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
ANNUAL REPORT
FOR THE YEAR ENDED
31 DECEMBER 2007
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
ANNUAL REPORT
FOR THE YEAR ENDED
31 DECEMBER 2007
CONTENTS
Corporate Directory
Review of Operations
Directors’ Report
Lead Auditor’s Independence Declaration Under Section 307C of the Corporations Act 2001
Independent Auditors' Report
Directors' Declaration
Financial Report
Income Statements
Balance Sheets
Statements of Changes in Equity
Cash Flow Statements
Notes to the Financial Statements
Corporate Governance Statement
ASX Information
Schedule of Tenements
Page
1
2
14
27
28
30
31
32
33
34
35
63
64
65
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
CORPORATE DIRECTORY
GEOPACIFIC RESOURCES NL (a public, listed Company incorporated in New South Wales in 1986)
Directors in Office
(as at the date of this
Report)
ACN 003 208 393
R J Fountain, Chairman
I J Pringle, Managing Director
W A Brook, Executive Director
I N A Simpson, Non-Executive Director
R H Probert, Non-Executive Director
C K McCabe (Alternate Director to Mr I N A Simpson)
Registered Office
556 Crown Street, Surry Hills, NSW 2010
Postal Address
P.O. Box 477, Surry Hills, NSW 2010
Phone: 61 2 9699 7311, Fax: 61 2 9699 7322 E-mail: ianp@geopacific.com.au
Company Secretary
Mr Grahame Clegg
Auditor
Bankers
Nexia Court & Co., Level 29, Australia Square,
264 George Street, Sydney, NSW, 2000, Australia
Westpac Banking Corporation, 50 Pitt Street, Sydney, NSW
GEOPACIFIC LIMITED (a private Company incorporated in Fiji in 1980)
Directors
Fiji Operations Office
R H Probert (Chairman)
W A Brook (Managing Director)
I J Pringle
I N A Simpson
HLB House, Lot 3, Cruikshank Road, Nasoso, Nadi, Fiji
Tel: 679 6 727150 Fax: 679 6 727152
All mail to: P O Box 9975, Nadi Airport, Fiji
E-mail: gpl@connect.com.fj
Company Secretary
W A Brook, P. O. Box 9975, Nadi Airport, Fiji
Tel: 679 6 727150 Fax: 679 6 727152 E-mail: gpl@connect.com.fj
Registered Office
HLB House, Lot 3, Cruikshank Road, Nasoso, Nadi, Fiji
Auditor
Banker
Ernst & Young, Suva, Fiji
Westpac Banking Corporation, Main Street, Nadi, Fiji
BETA LIMITED (a private company incorporated in Fiji)
Directors
W A Brook
I J Pringle (Appointed 20 February 2007)
I N A Simpson
Company Secretary
W A Brook, P.O. Box 9975, Nadi Airport, Fiji
Tel: 679 6 727150 Fax: 679 6 727152 E-mail: gpl@connect.com.fj
Registered Office
HLB House, Lot 3, Cruikshank Road, Nasoso, Nadi, Fiji
Auditor
Ernst & Young, Suva, Fiji
1
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
Letter from the Chairman
Dear Shareholders
2007 was a milestone year for Geopacific, following on from the Company’s listing on the ASX on 9 May 2006
(trading code GPR).
It was the second year of excellent progress in Geopacific’s exploration for gold and copper in Fiji. The Company
now has an effective, professional Fiji exploration team, led by Managing Director, Dr Ian Pringle. This team has
completed state of the art geophysical surveys, geology mapping and geochemical sampling and first pass drill
testing at many of the Company’s first class prospects.
Geopacific’s objective to become a successful and profitable mining company was advanced during the year with
exploration successes at all of the Company’s project areas. These offer potential for a spectrum of target types
ranging from small, high grade gold deposits of an epithermal gold type through to larger skarn gold–base metal
targets and very large, low-grade porphyry-copper-gold deposits.
An important acquisition
On 26 October 2007, Geopacific signed an agreement to purchase Millennium Mining (Fiji) Limited and its sole
assets (SPL 1216 'Nabila' and SPL 1415 'Kavukavu') through the issue of shares and options in GPR. Millennium
owns the Faddy's Gold Deposit and surrounding exploration ground which includes numerous prospects and
anomalies.
Faddy’s is an epithermal-type gold deposit which contains near-surface mineralisation estimated as 920,000t @
4.9g/t Au (144,000 ounces of contained gold) by Climax Mining Ltd in 1991. Although this is not considered to
be of JORC reporting standard and is not an estimate of Mineral Resources as defined by the JORC Code, it
represents a substantial gold deposit. Geopacific intends to evaluate Faddy’s with further drill testing and
feasibility studies with the intention of developing the deposit into a small high-grade mine, which will provide
Geopacific with cash flow. The transaction is subject to approval by the Reserve Bank of Fiji, which is expected
during the second quarter of 2008. Following completion of the Millennium purchase Geopacific plans to advance
the Faddy’s prospect by defining a Mineral Resource and commencing feasibility studies.
Progress at current projects
At the Raki Raki Joint Venture (GPR 50% and manager), follow-up drilling at the 4300E area has intersected
gold mineralised quartz pyrite veining and thick zones of near-surface, low-grade gold mineralisation of the
epithermal-type. Repeat assaying of the mineralisation in the initial discovery hole at Qalau North (DDHQ001)
has shown that gold is of a coarse nuggetty nature and can be easily underestimated by conventional sampling and
assaying techniques. Surface sampling and mapping has considerably extended the known surface anomalies and
a ground magnetic survey completed during late 2007 at Qalau-4300E has defined structural trends which will be
very helpful in locating mineralised target areas beneath substantial areas of thin transported and barren cover
rocks.
At the Vuda Project (GPR 80%), Geopacific undertook drilling at three prospects. At Natalau three diamond
drill holes intersected deep low grade gold mineralisation, which is interpreted to be the edge of a south plunging
shoot. Two drill holes at Ista’s Prospect included high, near-surface gold values of up to 6m @ 3.84g/t Au (19-
25m in DDHV004) beneath surface rock chip samples ranging up to 17g/t Au. High gold values were also
intersected at four drill holes at the Teitei Prospect (up to 11.5g/t Au between 38.20-39.70 in DDHVT002) where
high grade surface samples were also located. Each of these prospects has potential for small high-grade gold
deposits and each requires further drilling. An Induced Polarisation survey across the Vuda area was completed
and this will also be used to define new targets for follow-up in 2008.
2
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
Highlights
Raki Raki Project
• Repeat assays of mineralised drill core from DDHQ001 have identified coarse gold and
upgraded the previously reported interval of 2.8m from 61.2m of 14.43g/t Au to 2.8m from
61.2m of 23.02g/t Au.
• Drilling at both the Qalau North and 4300E Prospects has intersected considerable thicknesses
of epithermal quartz-pyrite veining. Gold mineralised intervals include 5.5m from 56.5m of
1.68g/t Au in DDHQ009 and 40.5m from 9.5m of 0.84g/t Au in DDHQ010.
• Extensive stream sediment sampling has located several new anomalous gold areas and
extended the area of known mineralisation at the Qalau-4300E area by about two kilometres.
Vuda Project
• Three diamond drill holes at the Natalau Prospect contain gold and base metal mineralisation
within the fringe zone of an interpreted south plunging mineralised shoot.
• Two diamond drill holes at Ista’s Prospect where high-grade surface gold mineralisation was
located (outcrop assays of up to 17g/t Au) include gold grades in drill core intervals ranging to
6m @ 3.29g/t Au).
• High-grade gold outcrops (9m @ 4.77g/t Au) were discovered at the Teitei Prospect.
• At Sabeto strongly anomalous gold in stream sediment samples have defined a high priority
gold target. Previous exploration reported rock samples with up to 60.5g/t Au.
• An Induced Polarisation (IP) survey was completed.
Nadi South Project
• Five diamond drill holes at the Togo Prospect have intersected rock-types, alteration and
structures which are typical of a porphyry copper-gold deposit. Thick intersections of
alteration typical of porphyry copper-gold deposits include widespread sulphide mineralisation
(pyrite, minor chalcopyrite and rarer chalcocite) which may be peripheral to higher grade
copper and gold mineralisation within a large and zoned deposit.
Nuku Project
• Extensive stream sampling and mapping has been completed. Outcropping zinc mineralisation
with assays ranging to 12.75% zinc were located.
• Two diamond drill holes were completed at the Wailoaloa Prospect and both intersected +20
metre intercepts of mineralised magnetite-pyrite skarn.
Nabila Project
• Geopacific is progressing with the purchase of Millennium Mining (Fiji) Limited which owns
the Nabila Project including the Faddy’s Gold Deposit. This deposit could provide Geopacific
with an advanced project with potential for short-term gold and base metal production.
• Shareholder approval to progress with the purchase of Millennium Mining (Fiji) Ltd was
received at Geopacific’s 2007 AGM.
• Geopacific signed an agreement to purchase Millennium Mining (Fiji) Limited on 26 October
2007. Reserve Bank of Fiji approval for the purchase is expected during early 2008.
4
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
Project Review
Raki Raki Project
SPL1231, SPL1373, SPL1436
50% Beta Ltd (subsidiary of GPR) - Operator
50% Peninsula Minerals Ltd
The Raki Raki Project is located in northern Viti Levu (Figure 2) and is a 50% joint venture between
Peninsula Minerals Limited and Geopacific Resources NL. Geopacific is the manager of the joint venture.
During early 2007 limited work was undertaken at RakiRaki because seasonal wet weather and flooding
restricted accessibility. Soil sampling was completed at the Million Dollar area of the Qalau-4300E grid and
outcropping gold mineralisation was located at the Qalaumatai Creek Prospect where channel sampling
across outcrop identified thin quartz-adularia veinlets in a gold mineralised basaltic dyke (rock chip assays
ranging to 7.12g/t Au and a 1.5m chipped channel sample averaged 2.35 g/t Au).
Assays for 182 stream sediment samples (BCL) from the eastern and central portions (Tataiya Prospect)
include gold values ranging to 400ppb Au (Naria creek) and anomalous areas of approximately 1 square
kilometre contain BCL stream sediment samples with gold values ranging to 60ppb Au (Figure 3). High
palladium (51ppb Pd) was returned at one sample location (9261).
At the Qalau-4300E Prospect high gold values in stream sediments collected south west of Qalau-4300E
highlighted a two kilometre zone extending from Qalau which is an interpreted source area for the
anomalous gold (Figure 4). The sampling defined an area south of Wasit village (Area A) which extends for
over 1km and included anomalous BCL stream sediments up to 34.2ppb Au. South of Qalau (Area B), high
gold contents of stream sediment samples (ranging to 47.2ppb Au) indicate an extensive near surface gold
anomaly.
2007 drill testing at the Qalau-4300E Prospect commenced during late September and the first drill hole of
this programme (DDHQ008) was located 100m grid west of DDHQ001 where high grade gold
mineralisation was intersected in late 2006 (DDHQ001 intersected 2.8m from 61.2m of 14.43g/t Au as
determined by standard gold assaying methods). Repeat assays of this interval using screen fire assay
techniques on the sample residues (approximately 1kg each) which account for coarse ‘nuggetty’ gold
returned a higher gold content of 23.02g/t within this zone (2.8m from 61.2m of 23.02g/t Au). The "spotty"
and sparse nature of the coarse gold particles in the sample appear to have lead to an under-evaluation of the
gold content.
DDHQ008 was drilled towards grid south at 45 degrees in order to test the western extension of the
mineralised veining intersected in DDHQ001 and to target the northern end of a strong IP resistivity anomaly
(Table 1). DDHQ008 intersected zones of epithermal quartz veining between 15.6-21.55m and 86.7-101.3m
and these probably represent the western extension to veining in DDHQ001, 06 and 05. DDH013 was
drilled beneath DDHQ001 towards grid north east to test for a NW trending vein system. Epithermal
quartz-pyrite veining was well developed between 130.70-137.50m in DDHQ013 and this interval contains
gold mineralisation.
At the 4300E Prospect (Figure 5) drilling in late 2006 intersected near surface gold in DDHQ003 (7m from
29m of 2.23g/t Au) and DDHQ004 (45.2m from 88m of 1.02g/t Au, including 5m of 3.4g/t Au and 3m at
4.45g/t Au). Follow-up drilling in 2007 included DDHQ009 which was collared 45m metres north of
DDHQ004 and drilled to 200m beneath the mineralised intersections. DDHQ009 intersected significant
intervals of epithermal quartz veining and brecciation in the top portion of the hole (Figure 6). DDHQ010
was located on the same section 4300E and tested the near surface potential of DDHQ004. This drill hole
penetrated conspicuous zones of epithermal banded-quartz veining throughout the length of the hole.
Both DDHQ009 and DDHQ010 intersected wide zones of quartz-pyrite-carbonate veining, shearing,
5
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
brecciation and alteration typical of an epithermal gold mineralised system. Summary assay data from both
drill holes are given in Table 1. Results from these holes include:
• DDHQ009 intersected 5.5 meters from 56.5 meters (down-hole depth) of 1.68g/t Au including 84.3-
84.8m of 8.16g/t Au.
• DDHQ010 intersected 40.5 meters from 9.5 meters (down-hole depth) of 0.85g/t Au, including 2.5m
of 4.48g/t Au from 43m within a zone of quartz-pyrite-carbonate veining. Deeper intervals of similar
grade mineralisation were intersected between 52-59.5m and 77.5-91m. Individual assays range up
to 9.14 g/t Au and variability of repeated assays indicate that coarse gold may occur in some
intervals.
The mineralisation appears to follow an east-west trending zone which corresponds to a band of high
resistivity response which is typical of quartz mineralised epithermal systems. The limits of mineralisation
intersected in holes DDHQ003, 4, 9 and 10 have not been determined although an interpreted shallow north
dipping shear zone may form the lower contact of the mineralised zone. A cross section showing the drill
traces of DDHQ004, 9 and 10 is shown in Figure 6.
Table 1. Diamond Drill hole and Assay data summary table for 2007 drilling at RakiRaki
Drill hole summary
Drill core assay summary
drill hole
coordinates (local
grid where grid N is 23o
W of true N)
northing
easting
hole
azimuth
(FMG)
hole
dip
(degs)
hole
depth
(m)
down-hole
from
(m)
to (m)
interv
al (m)
DDHQ008
DDHQ009
5575
5400
3550
4400
180
180
45
60
149.6
200
DDHQ010
5338
4373
180
60
including
126.3
including
including
including
DDHQ011*
5315
4420
180
DDHQ012*
DDHQ013
5435
5544
4290
3550
170
52.5
45
45
45
104.9
181.4
148.35
30.75
36.5
41
56.5
83.8
84.3
9.5
43
52
55
77.5
82
93.5
110.5
17.5
23.5
130.7
137
31.75
37
41.5
62
85.3
84.8
50
45.5
59.5
59
91
85
95
111.5
18
25.5
132.2
137.5
1
0.5
0.5
5.5
1.5
0.5
40.5
2.5
7.5
4
13.5
3
1.5
1
0.5
2
1.5
0.5
gold
(g/t)
**
NSA
2.16
3.29
1.82
1.68
3.22
8.16
0.84
4.48
0.83
1.15
0.91
1.87
0.89
2.28
2.95
1.76
NSA
1.23
1.64
* Complete assay results not yet received, NSA (No significant assays >1g/t Au)
** Fire assays completed on sawn (halved) drill core at Westech Gold analytical laboratory
(Vatukoula). All results >0.5g/t Au have been re-assayed. Internal and external controls including
standard reference material and blanks have been routinely analysed.
DDHQ011 was drilled from a collar located approximately 50m east of DDHQ010. Intersections of
alteration and veining are less pronounced in DDHQ011 and significant gold assays were returned beneath
transported gravels and soil cover close to the top of bedrock (17.5-22.5m). DDHQ011 may have been too
far south to intersect any north-eastern trending zone extending from the mineralisation in DDHQ009 and
6
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DDHQ010.
DDHQ012 was located at a chargeability anomaly approximately 60m NW of DDHQ003. No significant
zones of alteration and veining were intersected in DDHQ012 and this may indicate that the mineralisation
intersected in DDQ009 and DDHQ010 trends to the south west and DDHQ012 was not drilled to sufficient
depth to test the western extent of this zone.
For many of the mineralised drill samples, repeat analyses, including screen fire assays are being undertaken
for high grade intersections where there is evidence of coarse ‘nuggety’ gold. Silver and base metal analyses
are yet to be received for most of the drill samples.
During late 2007 a ground magnetic survey covering the Qalau and 4300E prospects was completed. The
results of this work will be fully assessed in 2008 but initial data assessments show a well developed east-
west trending fabric transacted by N-NNE trending structures (Figure 7). Some areas of prominent magnetic
‘lows’ may represent areas of pronounced epithermal bedrock alteration. However, in the 4300E area the
gold mineralisation intersected in DDHQ004 and DDHQ010 coincide with an elevated magnetic response
and conspicuous NE trending structural offsets in this magnetic ridge are the focus of current exploration and
possible future drill testing. The magnetic data will be of considerable help in positioning follow-up drill
holes at both Qalau and 4300E areas during 2008 and a study to integrate the magnetic survey results with
previous Induced Polarisation (IP) work at Raki Raki is underway.
Vuda Project
SPL1368 Geopacific Ltd (subsidiary of GPR)
has an option to purchase 80%
SPL1361 Geopacific Ltd (subsidiary of GPR)
has an option to purchase 100%
A gradient array Induced Polarisation (IP) survey was undertaken at Vuda during 2007. Elliot Geophysics
Ltd undertook the ground grid-based survey over areas of clay alteration and surficial gold mineralisation
along 100m space lines. Results of the work were integrated with geological mapping, airborne magnetic
and radiometric data to provide detailed framework for the large epithermal alteration system at Vuda and to
help determine the source of the high surface gold values within the project.
Preliminary studies have outlined several excellent correlations between geophysical features and surface
gold anomalies. Plots of resistivity data from the survey together with the locations of some prospect areas,
prominent structural trends and bedrock alteration types as observed from field mapping show considerable
areas of coincident high resistivity values and prospective alteration types. Correlation between altered
bedrock and structural zones occur where silicification and possible associated gold mineralisation may be
more pronounced. The chargeability data from the IP survey show markedly higher chargeability values in
the southern part of the survey area and these correlate more closely to higher sulphide content in bedrock.
Both the Natalau and Ista’s (Location 2A) Prospects are located on the margins of an oval zone characterised
by both low resistivity and chargeability values.
Natalau Prospect
Three diamond drill holes (VN001-3) were completed at the Natalau Prospect (Figure 8). VN001 was
undertaken in December 2006 and follow-up drill holes VN002 (total depth 150m) and VN003 (total depth
186.5m) were drilled in early 2007. VN001 and VN002 intersected anomalous base metal mineralisation
ranging up to 0.67ppm Au, 0.39% Pb and 0.44% Zn in one metre sample intervals. Both holes are thought to
have intersected low grade ‘halo’ mineralisation marginal to the main mineralised Natalau shoot which
appears to plunge towards the south. VN003 was drilled from the same collar as VN002, to the west of the
7
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
Natalau workings, and was located to test for a deeper, southern extension to the southerly plunging high-
grade gold mineralisation which occurs near surface at the old workings where rock chip samples of up to
16g/t Au have been collected by Geopacific. VN003 intersected the target, a pyritised and mineralised fault
zone between 158-170m. Assay data for samples in VN003 range to 1.01g/t Au (Table 2).
Table 2. Diamond Drill hole and Assay data summary table for 2007 drilling at Vuda
Drill hole
FMG E
FMG N
azimuth
dip
depth
From
Drill hole summary
m
m
Assay summary
To
m
Interval Au g/t ^^
m
DDHVN001
1866827
3923961
DDHVN002
1866705
3923968
DDHVN003
1866703
3923968
DDHVN004
1866728
3923459
299.5
119.5
119.5
289.5
-52
-62.5
-75
-45
DDHVN005
1866729
3923461
319.5
-45
DDHVT001
1865188
3924295
322.5
-60
DDHVT002
1865201
3924338
322.5
-60
DDHVT003
1865283
3924301
322.5
-60
197.75
150.00
186.50
75.60
including
75.60
including
84.70
81.70
including
132.60
163.00
164.00
19.00
19.00
21.60
15.60
14.10
17.10
6.70
23.00
27.00
49.00
37.70
38.20
92.10
94.60
23.00
25.00
22.00
18.60
18.60
18.60
8.20
24.00
30.00
56.20
39.70
39.70
93.10
96.60
DDHVT004
1865321
3924258
322.5
-60
170.10
144.10
145.60
nsm
nsm
1.01
2.62
3.84*
6.84*
1.75
1.92*
2.58
0.79
1.30
0.59
0.92
6.38
11.50
2.55
1.01
0.50
1.00
4.00
6.00
0.40
3.00
4.50
0.50
1.50
1.00
3.00
7.20
2.00
1.50
1.00
2.00
1.50
** Aug/t composite grade calculated by mass balance from several assays (SGS screen fire assay, SGS CN12, ALS screen fire
assay, AA25, AA26, TL43, OG43)
* assay based on ALS method TL43-OG43
nsm - no significant assay
Ista’s Prospect
At Ista’s Prospect 1km SW of Natalau two drill holes completed by other exploration companies during
previous exploration intersected near-surface gold mineralisation (RC89 reported 3m @ 6.84g/t Au and
VDRC166 intersected 5m @ 2.25g/t Au). Prospecting by Geopacific in 2006 to the south of these drill holes
located high grade gold mineralisation in outcrop (Ista’s outcrop) where panned samples of crushed pyritic
outcrop contain abundant visible gold (Figure 9).
During 2007 Geopacific mapping at Ista’s Prospect identified pipe-like dykes of silica-adularia alteration and
mineralised outcrop with channel samples ranging to 17g/t Au. This surface expression of an intrusive pipe is
approximately 3m wide and plunges to the south. A second pipe is 2-3.5m wide and appears to be plunge
toward the SE. Trenching and outcrop channel sampling of this mineralisation was undertaken.
Two drill holes were completed at Ista’s Prospect (VN004 and VN005). VN004 was drilled towards grid
east at a 60 degree dip from a collar located south of Ista’s outcrop and was planned to intersect two
mineralised targets. VN005 was located near the same collar but drilled towards grid NW to test beneath the
gold mineralisation reported during previous drilling. Both drill holes intersected broken and mineralised
rock with visible pyritic mineralisation. Samples of sawn VN004 drill core contain 6 metres averaging 3.84
g/t Au between 19-25m (Table 2) directly underlying gold mineralised outcrop with grades ranging up to
9g/t Au. VN005 was drilled from beside the VN004 drill collar location to test at depth and north of the gold
8
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
mineralised outcrop and intersected similar clay-quartz-pyrite alteration with gold mineralisation between
14.1-18.6m (1.92g/t Au).
Planned follow-up work at Ista’s Prospect includes, detailed mapping, soil sampling and trenching, possibly
followed by deeper, step-out drill testing.
Teitei Prospect
Surface sampling at the Teitei Prospect located visible gold in pyritic and gossanous outcrops and bedrock
channel sampling of these defined a nine metre wide zone with an average gold grade of 4.77g/t Au (includes
3m of 9.33g/t Au).
Drill testing during previous programmes by other companies indicated potential for deeper, high-grade gold
mineralisation at Teitei. Samples from these previous drill holes no longer exist but records indicate that
sample recovery was typically poor. Geopacific undertook follow-up drilling to assess these earlier results
and during 2007 four diamond drill holes (DDHVT001-4) were completed (Figure 10). Drill core of target
intervals for these holes contain coarse ‘nuggetty’ gold and were selectively sampled for gold determination
through a programme of screen fire assaying and leach testwork which specifically designed for these
samples and which requires considerably more laboratory time than routine assaying. Results for
DDHVT001-4 are summarised in Table 2. DDHVT001 included numerous low grade gold mineralised
intersections including 49.0-56.20m of 0.92g/t Ag. High gold (11.50g/t Au) was intersected between 38.20-
39.70m in DDHVT002 and deeper intercepts of low grade mineralisation were returned from both
DDHVT003 and DDHVT004 core samples.
Sabeto prospect
South of Vuda at Sabeto (SPL1361), stream sediment and outcrop sampling was completed within an area
of strongly anomalous gold in soils and outcrops which define a gold anomaly of approximately 400m x
200m. Stream sediment BCL samples collected at about 100m spacing ranged up to 0.928ppm Au. Assay
data from outcrop samples in the anomalous area range to 60g/t Au. Planned follow-up work at Sabeto
includes a geophysical IP survey and surface mapping and sampling followed by drill testing.
Nadi South Project
SPL1434 – 100% Geopacific Ltd (subsidiary of GPR)
During 2007 five diamond drill holes (DDHNT001-5) were completed Nadi South (Table 3). These tested
the northern portion of a strong chargeability anomaly (Togo Prospect) which was defined during late 2006
by a three dimensional Induced Polarisation (IP) survey using an offset pole-dipole (OPD) configuration
(Figure 11). The Togo Prospect is characterised by high chargeability values extending from near surface to
over 500m depth and across a strike length of more than 2 kilometres. Alteration and low-grade
mineralisation typical of porphyry copper-gold deposits was encountered in all of the Geopacific drill holes
and Fiji Government drill hole DDH84/7.
9
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
Project Review (Continued)
Table 3. Drill hole summary, Togo Prospect.
drill hole
planned depth (m)
easting
northing
dip
completed depth (m)
DDHNT001
DDHNT002
DDHNT003
DDHNT004
DDHNT005
450
250
500
400
500
547000
546830
546340
546500
546340
27500
27200
27500
27750
27500
60 degrees west
60 degrees west
60 degrees east
60 degrees east
vertical
447
200
309
355
441
NT001 was drilled at a high resistivity target on the NE edge of the chargeability anomaly defined by the IP
survey (Figure 12). It was drilled towards grid west at 60 degrees dip and was completed at a depth of
447.5m. NT001 intersected varieties of equigranular to porphyritic diorite and tonalite with increasing
content of gabbroic rocks close to the bottom of the hole. Fracturing, jointing and thin quartz–sulphide veins
occur throughout the core and these have dominantly westerly dips. Assay data for sawn half and quarter
core include anomalous assays in both gold and copper ranging up to 0.13g/t Au and 1,700ppm Cu.
NT002 was located 280m SW of NT001 and was also drilled towards grid west at a 60 degree dip. NT002
was completed at 200m and intersected similar intrusive rocks to NT001. Sulphide content, dominantly
disseminated pyrite, is higher than for NT001 core and fracturing and veining is also conspicuous.
NT003 was collared 650m to grid west of NT001 and was drilled to 309m towards grid east at 60 degrees.
Intrusive rocks in the upper part of NT003 have biotite alteration and higher sulphide content than NT001
and NT002. Assays of NT003 core include anomalous copper values between 79-219m (140m averaging
635ppm Cu) with individual samples of 2m lengths ranging up to 1,790ppm Cu.
NT004 was drilled to 355m towards grid east at 60 degrees. Assayed core includes anomalous copper values
between 6-210m (204m averaging 693ppm Cu) and 292-310m (18m averaging 940ppm Cu) with individual
samples of 2m lengths ranging up to 1,600ppm Cu and 0.53g/t Au.
NT005 was located at the same collar location as NT003 and drilled as a vertical hole to 441m to test high
chargeability values at depth. Anomalous copper results occur throughout the core with highest assays close
to the bottom of the hole (1,680ppm Cu for the interval between 412-414m).
Pyrite, minor chalcopyrite and rarer chalcocite is widespread in drill core from NT003, NT004 and NT005
and commonly occurs in fine grained fractures and veinlets as well as disseminations in intrusives within
alteration zones containing sericite, biotite and magnetite (Figure 13).
The results of drilling NT001-5 are encouraging and show that the Togo Prospect has intrusive lithologies
and alteration typical of large porphyry copper-gold systems. Low-grade mineralisation in all of the drill
holes completed during 2007 indicate that a zone of higher grade copper and gold mineralisation may be
located in other parts of an apparently large and zoned deposit. Further step out drilling is planned to test
other portions of the Togo Prospect.
The induced polarisation survey showed that strongly anomalous chargeability values extend to the south of
the Togo Prospect into the Takara Prospect area (Figure 14) and reconnaissance surface mapping of this
southern anomaly has confirmed extensive surface alteration and mineralisation. Gold values up to 36.4g/t
have been reported from outcrops during previous company work and recent sampling by Geopacific has
confirmed widespread gold mineralisation at Takara.
10
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
Geopacific plans to continue with mapping and undertake an IP survey of the Takara area prior to drill
testing.
Nuku Project
SPL1368 - 100% Geopacific Ltd (subsidiary of GPR)
CX667 – 100% Geopacific Ltd (subsidiary of GPR)
During early 2007 regional geochemical sampling of SPL1368 was undertaken and numerous areas shedding
anomalous gold and base metals were defined. One of these, the Wailoaloa Prospect is located on the
northern part of an anomalous, highly magnetic zone which forms a SW trending anomaly over
approximately one kilometre. Modelling of data collected during a helicopter borne magnetic survey
undertaken by CRA Exploration Pty Ltd during 1991 showed that this feature is caused by a shallow SE
dipping and strongly magnetic source. At Wailoaloa outcropping zinc mineralisation with assays ranging to
12.75% zinc were located by Geopacific near the western end of gossanous and mineralised outcrop. During
early 2007 a ground magnetic survey was completed over the eastern end of the gossanous zone and this
work showed that the mineralisation dips towards the south at a shallow angle (Figure 15). Mineralisation is
hosted by volcanoclastic sediments close to the contact with granodiorite and is typical of a polymetalic
skarn deposit with high zinc, gold, silver, manganese and iron.
Diamond drill hole WL8 (angled towards 020 degrees magnetic at a dip of 60 degrees and drilled to a depth
of 25m) was undertaken by CRA Exploration Pty Ltd in 1991 and intersected 8m of 5.1g/t Au from 12m
down hole (Figure 16). The anomalous gold mineralisation in WL8 occurs within oxidised and clay altered
magnetite skarn* and hornfels* immediately beneath outcropping gossan. Recoveries of drill core sample of
WL8 were very poor and base metals were not assayed by CRA Exploration Pty Ltd.
* Fine-grained metamorphic rocks composed of quartz, feldspar, mica, and other minerals, formed by the
action of intrusive rock upon sedimentary rock, especially shale.
Geopacific completed two diamond drill holes (DDHNW01 and DDHNW02) at the Wailoaloa Prospect.
Both were positioned to test for skarn-hosted sulphide mineralisation down dip from the anomalous gold
reported in drill hole WL8 and the anomalous zinc values in the outcropping hornfelsed sediments which
host the known surface mineralisation (Figure 16). Collar coordinates of both holes are listed in Table 4.
Both drill holes penetrated calcareous sulphide skarn mineralisation beneath strongly fractured granodiorite.
DDHNW01 intersected magnetite-pyrite-garnet-epidote skarn between 17.35m and 42.7m and thirty
samples of sawn drill core over this 25.35 metre interval were selected for sample preparation at the
Westech Vatukoula laboratory.
Table 4. Drill hole Summary of 2007 Drilling at the Wailoaloa Prospect.
Drill hole summary
Coordinates
(WSG 72)
drill hole
northing
easting
WL8*
3911377
1943747
DDHNW01
3911352
1943725
DDHNW02
1943715
* Undertaken by CRAE in 1991
3911303
hole
azimuth
(magnetic)
hole dip
(degrees)
hole
depth (m)
20
20
20
-60
-47
-50
25
98.1
83.1
11
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DDHNW02 was drilled beneath DDHNW01 from a location 50 metres to the south of DDHNW01. Similar
skarn mineralisation, including zones of massive magnetite and pyrite, were intersected between 41.8-
63.85m and underlying calcareous sediments were intersected until the bottom of DDHNW02 at 83.1
metres. Base metal analyses for core samples from both DDHNW01 and DDHNW02 are being undertaken
by Intertek, an accredited Jakarta based laboratory, and the assay results are expected during early 2008.
Both drill intersections of magnetite skarn are consistent with an interpretation of a shallow, south-east
dipping zone of magnetic source rocks. Regional magnetic data indicate that these rocks could extend over
a strike length of about one kilometre. Since the drilled intervals of skarn in both DDHNW01 and
DDHNW02 are close to true widths and the specific gravity of the mineralised sulphide rock is high (3-5),
the Wailoaloa Prospect has the potential to host a deposit of several million tons.
The occurrence of high gold values (8m of 5.1g/t Au in WL8) in oxidised gossan which overlies the base
metal–rich polymetallic skarn mineralisation at Wailoaloa is not uncommon in tropical, high rainfall
environments like Nuku. Deeper sulphide mineralisation is unlikely to have gold values of equivalent grade
although gold may be a significant component.
Further follow-up drilling at Wailoaloa is planned.
Nabila Project
SPL1216 - 100% Millennium Mining Fiji Ltd (purchase agreement by GPR)
SPL1415 - 100% Millennium Mining Fiji Ltd (purchase agreement by GPR)
On 27 February 2007, Geopacific Resources NL completed a Heads of Agreement to purchase Millennium
Mining (Fiji) Limited (“Millennium”) which holds title to the Nabila Gold Project, (Special Prospecting
Licence (‘SPL’) 1216) and the Kavukavu Project (SPL 1415) located southwest of Nadi. Millennium is a
mineral exploration company incorporated in Fiji.
The Nabila Gold Project contains the Faddy’s epithermal-type gold deposit (Figure 2), where near-
surface mineralisation has been estimated as 920,000t @ 4.9g/t Au (144,000 ounces of contained gold) by
Climax Mining Ltd in 1991 (this is not considered to be of JORC reporting standard and is not an estimate
of Mineral Resources as defined by the JORC Code*).
________________________________________________________________________________
* The JORC Code is the Joint Ore Reserves Committee of The Australasian Institute of Mining and
Metallurgy, Australasian Institute of Geoscientists and Minerals Council of Australia (2004
edition). The JORC code sets out minimum standards, recommendations and guidelines for public
reporting (in Australasia) of exploration results, mineral resources and ore reserves.
There is excellent potential for Geopacific to substantiate this gold mineralisation and to discover additional
mineralisation through exploration in the surrounding area. The Faddy’s mineralisation appears to be open
along trend (north-south) and at depth and previous drill sampling has not taken into account the occurrence
of nuggetty gold which in parts of the deposit may significantly improve on reported gold grades. Figure 17
is a typical cross section through the Faddy’s Deposit and shows the traces of drill holes along grid 3500E.
Gold assays between 0.5-2.5g/t are shown in green and assays over 2.5g/t Au are in pink or red. Near-
surface mineralisation and depth continuity of the mineralisation have clearly not been tested by previous
work.
The Kavukavu Project is located to the south of the Nabila Project and contains base metal skarn and
epithermal gold mineralisation. Other Companies have reported assays up to 25.0% Zn and 5.60% Cu in
surface rock samples but subsequent exploration has failed to locate significant mineral resources despite
widespread mineralised float rock at the Tau and Kavukavu Prospects as well as many other anomalies
within SPL1415.
12
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
The infrastructure in both projects is excellent. Sealed and gravel roads, adequate bridges and proximity to
Nadi township enables year-round access. There is ample fresh water and electrical power is available on the
existing main electricity grid. The nearby regional centre of Nadi contains infrastructure and services which
would be helpful support for future mining operations in the Nabila Project.
Geopacific and the owners of Millennium signed an agreement for Geopacific to purchase 100% of
Millennium on 26 October 2007. Terms of this agreement include:
• Geopacific to issue to Millennium owners 4 million GPR shares.
• Geopacific to issue to Millennium owners 4 million options at 50c convertible within 5 years
and contingent on defining a JORC compliant Ore Reserve of over 200,000 ounces of
contained gold.
• Geopacific to issue to Millennium owners 1 million options at $1.00 convertible within 10
years and contingent on defining a JORC compliant Ore Reserve of over 1,000,000 ounces
of contained gold.
Reserve Bank of Fiji approval for the purchase of Millennium is required before the purchase can be
completed and this is expected during early 2008.
The Nabila and Kavukavu Projects could provide Geopacific with excellent resources for short-term gold
and base metal production. Fast tracking Faddy’s through feasibility study and into production with an
annual gold output of over 25,000 ounces could be accomplished within a relatively short timeframe
compared with many countries, including Australia. The Projects also contain promising exploration
prospects which have the potential to host economic mineralisation which may be identified through the
application of modern exploration. During early – mid 2008 Geopacific plans to undertake confirmatory drill
testing and preliminary scoping studies at the Faddy’s Gold Deposit and regional exploration in both the
Nabila and Kavukavu Projects.
Meetings with Senior Fiji Government Officers
Between 31 August and 4 September Geopacific hosted a series of presentations and field visits for Minister
Tevita Vuibau (at that time Minister Vuibau was Interim Minister of Lands and Mineral Resources), and
senior Fiji Government officials including the Director and officers of the Mineral Resources Department
(MRD). The Ministerial tour included site visits to Nadi South, Vuda and RakiRaki as well as to Millennium
Mining (Fiji) Ltd’s Faddy’s Gold Deposit. A formal presentation on Geopacific activities and planned work
was given to the Ministerial party and invited guests at the Tanoa Hotel (Nadi) on 3 September. The
meetings and field excursions were undertaken in order to update the Minister and MRD officers on
Geopacific’s exploration and proposed work. They provided an excellent basis for future communication
and MRD support during Geopacific’s ongoing activities.
13
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
The Directors present their report together with the financial report of Geopacific Resources N.L.
(“GPR”) (“the Company”) and of the Group, being the Company and its subsidiaries, Geopacific
Limited (“GPL”) and Beta Limited (“Beta”), for the financial year ended 31 December 2007, and the
auditors’ report thereon.
1 Directors
The Directors of the Company at any time during or since the end of the financial year are:
Russell John Fountain, B.Sc., Ph.D, F.A.I.G., Chairman.
Dr Fountain was appointed a Director and Chairman of the Company on 23 September, 2005. He is
a Sydney-based consulting geologist with 40 years of international experience in all aspects of
mineral exploration, project feasibility and mine development. Previous positions include President,
Phelps Dodge Exploration Corporation; Exploration Manager, Nord Pacific Ltd and Chief
Geologist, CSR Minerals. Russell has had global responsibility for corporate exploration programs
with portfolios targeting copper, gold, nickel and mineral sands. He played a key role in the
grassroots discovery of mines at Granny Smith (Au in WA), Osborne (Cu-Au in Qld) and Lerokis
(Au-Cu in Indonesia) and the development of known prospects into mines at Girilambone (Cu in
NSW) and Waihi (Au in NZ). Russell holds a PhD in Geology from the University of Sydney
(awarded in 1973), with a thesis based on his work at the Panguna Mine (Cu-Au in PNG). He
worked as a project geologist on the Namosi porphyry copper deposit in Fiji from 1972 to 1976.
Russell is a Fellow of the Australian Institute of Geoscientists, and Executive Chairman of Finders
Resources Ltd.
Ian James Pringle, B.Sc. (Hons.), Ph.D, Managing Director.
Dr. Pringle was appointed Managing Director of the Company on 23 September, 2005. He is a
Sydney-based exploration geologist with over 22 years of specialist expertise in exploration for
silver, gold, and copper within Australia and SE Asia. Ian gained a doctorate from the University of
Otago in Dunedin, New Zealand in 1981 where he studied petrology, mineralogy and geochemistry
of metamorphosed volcanic rocks and taught laboratory classes in economic geology. During his
career, Ian has worked in mineral exploration programmes that have resulted in successful mineral
discoveries;
(cid:131)
(cid:131)
(cid:131)
(cid:131)
in Northern Australia with Elf Aquitaine,
the Lerokis Au-Cu-Ag deposit, Indonesia with CSR Minerals,
the Girilambone copper deposit, NSW with Nord Resources, and
in Australia, the Philippines and Cyprus as Exploration Manager for Golden Shamrock
Mines and Oxiana Ltd.
Ian coordinated due diligence studies on Sepon for Oxiana and supervised resource drilling of the
main gold and copper deposits. Sepon is located in a recently discovered province of sediment-
hosted epithermal gold deposits and supergene enriched copper mineralisation in central Laos. Ian’s
recent and current work includes exploration and resource evaluation of the Bowdens Silver
Deposit, near Mudgee, NSW, an epithermal-style mineralised system which contains over 80
million ounces of silver and which is owned by Silver Standard Resources Inc, one of the few
publicly traded companies focused exclusively on the discovery and acquisition of silver-dominant
projects. Ian is a director of Silver Standard Australia Pty. Ltd.
14
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
1 Directors (continued)
Willie Anthony Brook, B.Sc., M.A.I.G., Executive Director
Mr Brook has served two terms as Managing Director of the Company since 1987 and resigned this
position in September 2006 in favour of Dr Pringle. Bill is a geologist with over 42 years
experience in the industry, including senior positions with Australian and international exploration
and mining companies.
He spent six years as a contract field geologist (1980-86) exploring for epithermal gold deposits in
Papua New Guinea, Vanuatu and Fiji, which resulted in the discovery of several grassroots gold
prospects. In 1986 he commenced geological work on behalf of GPL in Fiji and discovered the
Tuvatu Gold Deposits, which were sold to Emperor Mines Ltd in 1997. He is also a member of the
Mining Council of Fiji, the Fiji Mining and Quarrying Wages Council and the Mining and
Development Technical Committee; the latter two posts being Government appointments. He
resides in Fiji and is responsible for maintaining and monitoring the Company's operations in Fiji
and developing new projects. He is Managing Director of Geopacific Ltd and a Director of Beta
Ltd.
Ian Neville Aston Simpson, Non - Executive Director
Mr Simpson was appointed a Director of the Company in March 2001. Ian recently retired as the
Managing Director of Pacific Crown Aviation (Fiji) Ltd, which operates a helicopter service based
out of Nadi Airport in Fiji. Ian received his training as a helicopter pilot and engineer in the Royal
Navy, and as such has been involved with the exploration industry in Fiji since 1970. He has been
associated with GPL since 1981 and a Director since 1994; he is also a Director of Beta Ltd. Mr
Simpson is a citizen of Fiji.
Craig Kingsley McCabe, B.Ec., F.A.I.B.F., A.I.M.M.
Alternate Director to Mr Simpson.
Craig has over 18 years experience in financial markets, having worked for banks and merchant
banks in Australia, where he dealt in interest rates, securities and equities. In the past 13 years he
has been engaged in managing his family business with interests in Australia and Fiji.
Roger Harvie Probert, Non - Executive Director
Mr Probert was elected chairman of GPL in 1997. In 1970-71 he served for one year as a field
manager for Barringer Research in a mineral exploration programme in Fiji. In 1972 he joined The
Fiji Gas Co. Ltd., and was appointed general manager and chief executive in 1983. He is also
general manager and a Director of the associated companies, Fiji Chemicals Ltd and Tonga Gas Ltd.
He served as a Board member of the Civil Aviation Authority of Fiji, Capital Markets Development
Authority, Fiji Islands Revenue and Customs Authority and chairman of Airports Fiji Ltd. He is
also chairman of the Mining Council of Fiji and was president of the Fiji Institute of Management
(1989-91) and the Fiji Employees Federation (1993-95). Mr Probert is a citizen of Fiji.
Company Secretary
Mr Grahame Clegg, JP, BCom., CA, ACIS., MAICD,FTIA, AFAIM, FNTAA, SAFin.
Mr Clegg was appointed to the position of Company Secretary on 14 July 2006 and has over 35 years
experience in audit, financial and corporate roles including 15 years in Company secretarial roles for
ASX-listed companies. He is a director of Oakhill Hamilton Pty Ltd, and Taen Pty Ltd, companies which
provide secretarial, accounting and corporate advisory services to a range of listed and unlisted
companies.
15
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
2 Principal Activity
The principal activity of the Group is exploration for gold and gold-copper deposits in Fiji.
There was no significant change in the nature of this activity of the Group during the financial year.
3 Operating and Financial Review
The loss of the Group for the year ended 31 December 2007 was $419,737 (2006: loss $382,944).
Information on the operation and financial position of the Group and its business strategies and
prospects are set out in the review of operations.
4 Dividends
The Directors do not recommend the payment of a dividend.
Dividends paid or declared since the end of the previous year were $Nil.
5 State of Affairs
In the opinion of the Directors there were no significant changes in the state of affairs of the Group
that occurred during the financial year under review, not otherwise disclosed in this report.
6 Events Subsequent to Reporting Date
Except for the acquisition of Millenium Mining (Fiji) Limited, including its assets, no matter or
circumstance has arisen since 31 December 2007 that has significantly affected, or may significantly
affect:
(a) the Group’s operations in future financial years, or
(b) the results of those operations in future financial years, or
(c) the Group’s state of affairs in future financial years.
7 Directors’ Interests and Benefits
The beneficial interest of each Director in the ordinary share capital of the Company as at the date
of this report is:
Direct shares Indirect shares Options
R J Fountain (1)
I J Pringle
W A Brook
I N A Simpson
R H Probert
C K McCabe (Alternate)
Nil
1,500,000
Nil
Nil
Nil
Nil
(1) Russell Fountain is a director of Finders Resources Ltd which holds 5,900,000 shares.
10,000
10,000
3,022,033
692,695
589,454
Nil
30,000
50,000
1,569,050
Nil
Nil
Nil
16
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
8 Directors’ Meetings
During the year ended 31 December 2007 a total of two Directors’ Meetings were held. Directors’
attendance record is tabulated below.
Record of Directors’ Attendance at Meetings
Director
R J Fountain
I J Pringle
W A Brook
I N A Simpson
R H Probert
C K McCabe (alt. to I. Simpson)
Service
All year
All year
All year
All year
All year
All year
* Either in person, or by electronic means.
9 Likely Developments
Attended *
2
2
2
1
-
1
Eligible to
Attend
2
2
2
2
2
1
Leave of
Absence
-
-
-
-
-
-
The Group will continue to develop its existing exploration tenements and seek to increase its
tenement holdings by acquiring further projects.
10 Environment Regulations
Entities in the Group are subject to normal environmental regulations in areas of operations. There
has been no breach of these regulations during the financial year, or in the period subsequent to the
end of the financial year and up to the date of this report.
11 Share Options
Options have been issued to Ian J Pringle & Associates Pty Ltd, a Company controlled by Dr
Pringle, were granted on the following terms and conditions:
(a) The Optionholder is entitled on payment of the Exercise Price (being 20c, 25c and 30c in
respect of the three instalments each of 500,000 options respectively listed in paragraph (b)
below) to be allotted one ordinary share in the Company for each Option exercised (subject
to possible adjustments referred to below).
(b) The Options held by the Optionholder are exercisable in whole or in part as follows:
• as to 500,000 Options, within 5 years of the first anniversary of Listing;
• as to 500,000 Options, within 5 years of the second anniversary of Listing; and
• as to 500,000 Options, within 5 years of the third anniversary of Listing (“Exercise
Period”).
Options not exercised before the expiry of the Exercise Period will lapse. The Optionholder is not
entitled to exercise the Options unless Dr Pringle continues to hold the position of Director of the
Company until at least the first anniversary (and in the case of the remaining instalments each of
500,000 options, the second and third anniversaries respectively) of the date of listing the Company
on the ASX.
17
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
12 Remuneration Report
The remuneration report is set out under the following main headings:
A Principles used to determine the nature and amount of remuneration
B Details of remuneration
C Service agreements
D Share-based compensation
The information provided under headings A-D includes remuneration disclosures that are required
under Accounting Standard AASB 124 Related Party Disclosures. These disclosures have been
transferred from the financial report and have been audited.
A Principles used to determine the nature and amount of remuneration
The objective of the Group’s executive reward framework is to ensure reward for performance,
being the development of the Geopacific Resources exploration tenements. The framework
aligns executive reward with achievement of strategic objectives and the creation of value for
shareholders, and conforms with market best practice for delivery of reward. The Board ensures
that executive reward satisfies the following key criteria for good reward governance practices:
• competitiveness and reasonableness;
• acceptability to shareholders;
• performance linkage / alignment of executive compensation;
•
transparency; and
• capital management.
The Group has structured an executive remuneration framework that is market competitive and
complimentary to the reward strategy of the organisation.
Alignment to shareholders’ interests:
• has economic profit as a core component of plan design;
•
focuses on sustained growth in shareholder wealth, consisting of dividends and growth
in share price, and delivering constant return on assets as well as focusing the executive
on key non-financial drivers of value; and
• attracts and retains high calibre executives.
Alignment to programme participants’ interests:
rewards capability and experience;
reflects competitive reward for contribution to growth in shareholder wealth;
•
•
• provides a clear structure for earning rewards; and
• provides recognition for contribution.
The framework provides a mix of fixed and variable pay, and a blend of short and long-term
incentives. As executives gain seniority with the Group, the balance of this mix shifts to a
higher proportion of ''at risk'' rewards.
18
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
12 Remuneration Report (continued)
Non-executive Directors
Fees and payments to non-executive Directors reflect the demands, which are made on, and the
responsibilities of, the Directors. The Board reviews Non-executive Directors’ fees and payments
annually. The Board may from time to time seek the advice of independent remuneration
consultants to ensure non-executive Directors’ fees and payments are appropriate and in line with
the market. The Chairman’s fees are determined independently to the fees of non-executive
Directors based on comparative roles in the external market. The Chairman is not present at any
discussions relating to determination of his own remuneration.
Directors’ fees
The current base remuneration was last reviewed with effect from 1 January 2007 and will be
reviewed in September 2008.
Non-executive Directors’ fees are determined within an aggregate Directors’ fee pool limit, which is
periodically recommended for approval by shareholders. The maximum currently stands at
$200,000 per year in aggregate.
Executive pay
The executive pay and reward framework has four components:
• base pay and benefits;
•
•
short-term performance incentives;
long-term incentives through participation in the Geopacific Resources NL Employee
Option Plan (Geopacific Resources Option Plan); and
• other remuneration such as superannuation.
The combination of these comprises the executive’s total remuneration.
Base pay
Structured as a total employment cost package, which may be delivered as a combination of cash
and prescribed non-financial benefits at the executives’ discretion.
Executives are offered a competitive base pay that comprises the fixed component of pay and
rewards. Base pay for senior executives is reviewed annually to ensure the executive’s pay is
competitive with the market. An executive’s pay is also reviewed on promotion.
There are no guaranteed base pay increases included in any senior executives’ contracts.
Geopacific Resources NL Employee Option Plan
Information on the Geopacific Resources Option Plan is set out in note 25.
B Details of remuneration
Amounts of remuneration
Details of the remuneration of the Directors and the key management personnel (as defined in
AASB 124 Related Party Disclosures) of Geopacific Resources and the Geopacific Resources
NL Group are set out in the following tables.
The key management personnel of Geopacific Resources and the Group include the Directors:
19
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
12 Remuneration Report (continued)
Remuneration paid to key management personnel of Geopacific Resources and of the Group
2007
Short-term benefits
Post-employment
benefits
Share-based
payment
Name
Non-executive
Directors
I N A Simpson
R J Fountain
R H Probert
C K McCabe (alt. to I.
Simpson)
Sub-total non-
executive Directors
Executive Directors
I J Pringle
W A Brook
Totals
IPO
Success
Fees
$
Directors’
Fees
$
Salary and
Consulting
Fees
$
Superannuation Options
$
$
Total
$
-
-
-
-
-
-
-
-
24,000
50,000
24,000
24,000
122,000
-
-
122,000
-
-
-
-
-
123,475
130,835
254,310
-
-
-
-
-
-
-
-
-
-
-
-
24,000
50,000
24,000
24,000
- 122,000
45,489 168,964
- 130,835
45,489 421,799
Remuneration paid to key management personnel of the Group
2006
Short-term employee benefits
Post-employment
benefits
Share-based
payment
Name
IPO
Success
Fees
$
Directors’
Fees
$
Salary and
Consulting
Fees
$
Superannuation Options
$
$
Total
$
Non-executive Directors
I N A Simpson
R J Fountain
R H Probert
Sub-total non-
executive Directors
Executive Directors
I J Pringle
W A Brook
Totals
-
-
-
-
20,000
20,000
40,000
-
-
-
-
-
-
-
-
-
-
-
108,826
125,977
234,803
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
47,318 176,144
- 145,977
47,318 322,121
20
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
12 Remuneration Report (continued)
C
(i)
Service agreements
Mr Ian Pringle - Managing Director
A Consultancy Agreement dated 16 February 2006 has been entered into between the Company and Ian
J Pringle & Associates Pty Ltd (“Consultant”), being a Company controlled by Dr Pringle. The
consulting services are to be provided by the Consultant making available the services of Dr Pringle for
between 150 and 185 days per annum (or as otherwise agreed). The Agreement commenced on 1
March 2005 for an initial term of two years, with an option for the Company to extend the term for two
further periods of two years each, unless the consultancy is terminated earlier in accordance with the
agreement. The Consultant may terminate the agreement on not less than 4 months notice.
The Consultant may also terminate the agreement immediately without notice if the Company becomes
insolvent or requires the Consultant to perform services outside the scope of the agreement for a period
of more than 100 days in any year or if the Company fails to pay moneys due under the Agreement
within 14 days of demand and the Company shall pay to the Consultant the termination payment
referred to below. The Company may terminate the agreement immediately without notice for serious or
persistent breach, bankruptcy, fraud or wilful neglect, total and permanent incapacitation or mental
illness of the Consultant or Dr Pringle (as the case may be), and may terminate the agreement at any
time on 1 months notice without disclosure of any reason, by payment of a lump sum termination
payment equivalent to the amount which the Consultant would have received for providing the services
for one half of the Term then remaining or 6 months, whichever is the greater. The consultancy fee is
$400 per day (prior to Listing) and $800 per day (post Listing), plus bonuses and expenses and subject
to annual review by the Company. Dr Pringle will receive fees for services rendered to the Company in
his capacity as a contractor to Ian J Pringle & Associates Pty Ltd.
(ii) Mr Willie Brook - Executive Director
Mr Willie Brook entered into an employment agreement as Executive Director with the Company
effective from the date of Listing, for an initial term of two years, with an option for the Company to
extend the term for a further year, unless the employment is terminated earlier in accordance with the
agreement.
Mr Brook may terminate the agreement on 3 months notice. The Company may terminate the agreement
immediately without notice for serious breach, bankruptcy, fraud or wilful neglect, total and permanent
incapacitation or mental illness of Mr Brook, and may terminate the agreement at any time on 6 months
notice without disclosure of any reason, or at its discretion, by payment of the equivalent amount of
remuneration in lieu of the notice period. The salary package is Fiji$100,000 per annum, including
superannuation plus bonuses and expenses, subject to annual review by the Company. He is also entitled
to the usual leave entitlements.
(iii) Non-executive Directors
Directors are entitled to remuneration out of the funds of the Company but the remuneration of the non-
executive Directors may not exceed in any year the amount fixed by the Company in general meeting
for that purpose. Directors are also entitled to be paid reasonable travelling, accommodation and other
expenses incurred in consequence of their attendance at Board meetings and otherwise in the execution
of their duties as Directors.
21
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
12 Remuneration Report (continued)
Service agreements summary
Start Date
Term of
Agreement
Director
I J Pringle
1 March 2005
W A Brook
3 May 2006
2 years with
options to
extend for 2
further terms
of 2 years each
2 years with
option to
extend for
further terms
of 1 year
Fees payable
2007
$
Notice period
for termination
(months)
Company Employee
Redundancy
payment
$800 per day
1
$100,000
6
4
3
6 months
fees
6 months
salary
D
Share-based compensation
Options
Options are granted on the recommendation of the Directors.
Options are granted for no consideration. Options are granted for a five year period, and are exercisable
immediately after the vesting date. The options issued to Mr Ian Pringle vest on the first, second and
third anniversaries of the listing date. The options issued on 1 December 2007 vested on that date.
The terms and conditions of each grant of options affecting remuneration in the previous, this or future
reporting periods are as follows:
Grant date
Expiry date
8 May 2007
8 May 2007
8 May 2007
8 May 2012
8 May 2013
8 May 2014
1 December 2006 1 November 2009
1 December 2006 1 November 2009
Exercise
price
$0.20
$0.25
$0.30
$0.50
$0.70
Value per option
at grant date
$0.0843
$0.0757
$0.0708
$0.4945
$0.4498
Date vesting
8 May 2007
8 May 2008
8 May 2009
1 December 2006
1 December 2006
Options granted carry no dividend or voting rights.
When exercisable, each option is convertible into one ordinary share.
The exercise price of options is based on the weighted average price at which the Company’s shares are
traded on the Australian Stock Exchange during the five trading days immediately before the options are
granted.
Details of options over ordinary shares in the Company provided as remuneration to each director of
Geopacific Resources and each of the key management personnel of the Group are set out below.
Further information on the options is set out in notes 18 and 26 to the financial statements.
22
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
12 Remuneration Report (continued)
Name
Directors of Geopacific Resources
I J Pringle
W A Brook
I N A Simpson
R J Fountain
R H Probert
Number of options
granted during the year
Number of options
vested during the year
2007
2006
2007
2006
-
-
-
-
-
1,500,000
-
-
-
-
500,000
-
-
-
-
-
-
-
-
-
The assessed fair value at grant date of options granted to the individuals is allocated equally over the
period from grant date to vesting date, and the amount is included in the remuneration tables above.
Fair values at grant date are independently determined using a Black-Scholes option pricing model
that takes into account the exercise price, the term of the option, the impact of dilution, the share
price at grant date and expected price volatility of the underlying share, the expected dividend yield
and the risk-free interest rate for the term of the option.
The model inputs for options granted during the year ended 31 December 2007 included:
(a) options are granted
for no consideration
(b) exercise price
(c) grant date
(d) vesting date
(d) expiry date
(e) share price at grant
$0.20
8.05.2006
8.05.2007
8.05.2012
$0.25
8.05.2006
8.05.2008
8.05.2013
$0.30
8.05.2006
8.05.2009
8.05.2014
$0.50
1.12.2006
1.12.2006
1.11.2009
$0.70
1.12.2006
1.12.2006
1.11.2009
date
$0.20
$0.20
$0.20
$0.71
$0.71
(f) expected price
volatility of the
Company’s shares
(g) expected dividend
yield
(h) risk-free interest rate
30.0%
30.0%
30.0%
97.3%
97.3%
0.0%
6.0%
0.0%
6.0%
0.0%
6.0%
0.0%
6.25%
0.0%
6.25%
Shares provided on exercise of remuneration options
No ordinary shares in the Company were provided as a result of the exercise of remuneration
options to each director of Geopacific Resources NL and other key management personnel of the
Group.
23
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
12 Remuneration Report (continued)
Share options granted to Directors and the most highly remunerated officers
Options over unissued ordinary shares of the Company granted during or since the end of the
financial year to the Directors and the most highly remunerated officers of the Company as part of
their remuneration were as follows:
A
Remuneration
consisting of
options
B
Value at
vesting date
$
C
Value at
exercise date
$
D
Value at lapse
date
$
E
Total of
columns B-D
$
26.92%
-
-
-
-
$45,489
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$45,489
-
-
-
-
Name
Directors of
Geopacific
Resources NL
I J Pringle
W A Brook
I N A Simpson
R J Fountain
R H Probert
A = The percentage of the value of remuneration consisting of options, based on the value at grant
date set out in column B.
B = The value at grant date calculated in accordance with AASB 2 Share-based Payment of
options granted during the year as part of remuneration.
C = The value at exercise date of options that were granted as part of remuneration and were
exercised during the year.
D = The value at lapse date of options that were granted as part of remuneration and that lapsed
during the year.
Shares issued on the exercise of options
No ordinary shares of the Company were issued during the year ended 31 December 2007 on the
exercise of options granted. No further shares have been issued since that date. No amounts are
unpaid on any of the shares.
13 Insurance of Officers
The Company has, by Deed of Access, Indemnity and Insurance, paid a premium to insure the
Directors and Company Secretary of the Group in respect of certain legal liabilities, including costs
and expenses in successfully defending legal proceedings, whilst they remain as Directors and for
seven years thereafter. The insurance contract prohibits the disclosure of the total amount of the
premiums and a summary of the nature of the liabilities.
24
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
14 Non-audit Services
The Group may decide to employ the auditor on assignments additional to their statutory audit
duties where the auditor's expertise and experience with the Company and/or the Group are
important.
Details of the amounts paid or payable to the auditor (Nexia Court & Co) for audit and non-audit
services provided during the year are set out below.
The Board of Directors has considered the position and, in accordance with the advice received from
the audit committee, is satisfied that the provision of the non-audit services is compatible with the
general standard of independence for auditors imposed by the Corporations Act 2001. The
Directors are satisfied that the provision of non-audit services by the auditor, as set out below, did
not compromise the auditor independence requirements of the Corporations Act 2001 for the
following reasons:
•
•
all non-audit services have been reviewed by the audit committee to ensure they do not
impact the impartiality and objectivity of the auditor; and
none of the services undermine the general principles relating to auditor independence,
including reviewing or auditing the auditor's own work, acting in a management or a
decision-making capacity for the Company, acting as advocate for the Company or jointly
sharing economic risk and rewards.
During the year the following fees were paid or payable for services provided by the auditor of the
the Company, its related practices and non-related audit firms:
Assurance services
1. Audit services
Nexia Court & Co Australian firm:
Audit of the financial report and other audit work under the
Corporations Act 2001
- Current year
- Prior year
Review of the half-year financial report
Total remuneration for audit services
Consolidated
2007
$
2006
$
16,725
18,713
5,266
-
13,123
7,818
40,704
20,941
25
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF
GEOPACIFIC RESOURCES NL
Report on the financial report
We have audited the accompanying financial report of Geopacific Resources NL,
which comprises the balance sheet as at 31 December 2007, and the income
statement, statement of changes in equity and cash flow statement for the year ended
on that date, a summary of significant accounting policies, other explanatory notes (1
to 30), and the directors’ declaration (set out on pages 30 to 62), of the Group
comprising the Company and the entities it controlled at the year’s end or from time
to time during the financial year.
We have also audited the remuneration disclosures contained in the Directors’ report.
As permitted by the Corporations Regulations 2001, the Company has disclosed
information about the remuneration of Directors and executives (“remuneration
disclosures”), required by Australian Accounting Standard AASB 124 Related Party
Disclosures, under the heading “remuneration report” in pages 18 to 24 of the
Directors’ report and not in the financial report.
(including
the Australian Accounting
Directors’ responsibility for the financial report and the AASB 124 remuneration
disclosure contained in the Directors’ report
The Directors of the Company are responsible for the preparation and fair
presentation of the financial report in accordance with Australian Accounting
the
Standards
Corporations Act 2001. This responsibility includes establishing and maintaining
internal control relevant to the preparation and fair presentation of the financial
report that is free from material misstatement, whether due to fraud or error;
selecting and applying appropriate accounting policies; and making accounting
estimates that are reasonable in the circumstances. In note 1, the Directors also state,
in accordance with Australian Accounting Standard AASB 101 Presentation of
Financial Statements, that compliance with Australian equivalents to International
Financial Reporting Standards ensures that the financial report of the Group and the
Company, comprising the financial statements and notes, complies with International
Financial Reporting Standards.
Interpretations) and
The Directors of the Company are also responsible for the remuneration disclosures
contained in the Directors’ report.
Auditors’ responsibility
Our responsibility is to express an opinion on the financial report based on our audit.
We conducted our audit in accordance with Australian Auditing Standards. These
Auditing Standards require that we comply with relevant ethical requirements
relating to audit engagements and plan and perform the audit to obtain reasonable
assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the financial report. The procedures selected depend on the
auditors’ judgement, including the assessment of the risks of material misstatement
of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial report 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 entity’s internal control.
28
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
INCOME STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
Note
Consolidated
2006
$
2007
$
The Company
2006
$
2007
$
Continuing operations
4
63,887
72,280
99,727
72,280
Administration expenses
Consultancy expense
Depreciation expense
Employee benefits expense
Impairment loss recognised in respect of
loans to subsidiaries
Unrealised foreign currency exchange
loss
Other expenses
5
5
5
5
(206,002)
(80,404)
(111)
(167,489)
-
-
(29,618)
(219,046)
-
-
(236,178)
(206,002)
(80,404)
(111)
(167,489)
(219,046)
-
-
(236,178)
-
-
-
113,004
(27,738)
-
(29,619)
(105,002)
-
(483,624)
(455,224)
(370,621)
(587,964)
LOSS BEFORE INCOME TAX
(419,737)
(382,944)
(270,894)
(515,684)
Income tax expense
7
-
-
-
-
LOSS FOR THE YEAR
(419,737)
(382,944)
(270,894)
(515,684)
Basic loss per share
Diluted loss per share
28
28
(1.08)
(1.28)
(1.06)
(1.27)
The above income statements should be read
in conjunction with the accompanying notes.
31
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
BALANCE SHEETS
AS AT 31 DECEMBER 2007
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
Note
Consolidated
2006
$
2007
$
The Company
2006
$
2007
$
8
9
10
794,535
259,603
19,802
1,256,968
167,307
17,662
648,120
3,809
19,802
1,262,869
7,738
17,662
TOTAL CURRENT ASSETS
1,073,940
1,441,937
671,731
1,288,269
NON-CURRENT ASSETS
Receivables
Exploration expenditure
Property, plant and equipment
Investments
TOTAL NON-CURRENT
ASSETS
11
12
13
14
-
3,462,093
19,424
-
-
1,796,829
8,385
-
3,128,122
565,053
6,370
-
1,465,082
169,735
-
-
3,481,517
1,805,214
3,699,545
1,634,817
TOTAL ASSETS
4,555,457
3,247,151
4,371,276
2,923,086
CURRENT LIABILITIES
Trade and other payables
TOTAL CURRENT
LIABILITIES
15
201,110
260,863
16,929
46,605
201,110
260,863
16,929
46,605
TOTAL LIABILITIES
201,110
260,863
16,929
46,605
NET ASSETS
4,354,347
2,986,288
4,354,347
2,876,481
EQUITY
Contributed equity
Reserves
Accumulated losses
16
18
19
8,015,267
307,566
(3,968,486)
6,311,996
223,041
(3,548,749)
8,015,267
284,790
(3,945,710)
6,311,996
239,301
(3,674,816)
TOTAL EQUITY
4,354,347
2,986,288
4,354,347
2,876,481
The above balance sheets should be read
in conjunction with the accompanying notes.
32
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2007
Notes
2007
$
Consolidated
2006
$
2007
$
The Company
2006
$
TOTAL EQUITY AT THE
BEGINNING OF THE
FINANCIAL YEAR
Net income recognised directly in
equity
2,986,288
537,127
2,876,481
543,800
-
-
-
-
Loss for the year
(419,737)
(382,944)
(270,894)
(515,684)
Total recognised income and
expenses for the year
Transactions with equity holders in
their capacity as equity holders:
Contributions of equity, net of
transaction costs
Employee share options recognised
in share based payments reserve
Additions to foreign currency
translation reserve
16
18
18
(419,737)
(382,944)
(270,894)
(515,684)
1,703,271
2,612,187
1,703,271
2,612,187
45,489
236,178
45,489
236,178
39,036
1,787,796
(16,260)
2,832,105
-
1,748,760
-
2,848,365
TOTAL EQUITY AT THE END
OF THE FINANCIAL YEAR
4,354,347
2,986,288
4,354,347
2,876,481
The above statements of changes in equity should be read
in conjunction with the accompanying notes.
33
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
CASH FLOW STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2007
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash receipts in the course of
operations
Cash payments in the course of
operations
Interest received
Note
Consolidated
2006
$
2007
$
The Company
2007
$
2006
$
-
-
-
-
(607,145)
63,887
(286,557)
72,280
(368,452)
63,887
(267,312)
72,280
Net Cash from Operating Activities
29(c)
(543,258)
(214,277)
(304,565)
(195,032)
CASH FLOWS FROM
INVESTING ACTIVITIES
Payments for plant and equipment
(Repayment of) advance from director
Loans advanced to related parties
Exploration expenditure
(11,150)
-
-
(1,611,496)
(6,128)
(500)
-
(869,177)
(6,481)
-
(1,611,856)
(395,318)
-
(500)
(701,778)
(169,735)
Net Cash from Investing Activities
(1,622,646)
(875,805)
(2,013,655)
(872,013)
CASH FLOWS FROM
FINANCING ACTIVITIES
Proceeds from share issue
Share issue costs
1,821,858
(118,387)
2,719,844
(449,277)
1,821,858
(118,387)
2,719,844
(449,277)
Net Cash from Financing Activities
1,703,471
2,270,567
1,703,471
2,270,567
NET (DECREASE)/INCREASE IN
CASH HELD
Cash and Cash Equivalents at the
Beginning of the Financial Year
CASH AND CASH
EQUIVALENTS AT THE END OF
THE FINANCIAL YEAR
(462,433)
1,180,485
(614.749)
1,203,522
1,256,968
76,483
1,262,869
59,347
29(a)
794,535
1,256,968
648,120
1,262,869
The above cash flow statements should be read
in conjunction with the accompanying notes.
34
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
Contents of the notes to the financial statements
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Summary of significant accounting policies
Financial risk management
Critical accounting estimates and judgements
Revenue
Expenses
Remuneration of auditors
Taxation
Current assets - Cash and cash equivalents
Current assets - Trade and other receivables
Current assets - Other current assets
Non-current assets - Receivables
Non-current assets – Exploration expenditure
Non-current assets - Property, plant and equipment
Non-current assets - Investments
Current liabilities - Trade and other payables
Contributed equity
Options
Reserves
Accumulated losses
Contingent Liabilities
Commitments
Particulars relating to controlled entities
Key management personnel disclosures
Related party transactions
Share-based payments
Events occurring after the balance sheet date
Segment information
Loss per share
Notes to the cash flow statements
Financial instruments disclosures
35
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
1 Summary of significant accounting policies
The principal accounting policies adopted in the preparation of the financial report are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated. The
financial report includes separate financial statements for Geopacific Resources NL as an individual
entity and the Group consisting of Geopacific Resources NL and its subsidiaries.
Basis of preparation
This general purpose financial report has been prepared in accordance with Australian equivalents to
International Financial Reporting Standards (AIFRSs), other authoritative pronouncements of the
Australian Accounting Standards Board and the Corporations Act 2001.
Compliance with IFRSs
Australian Accounting Standards include AIFRSs. Compliance with AIFRSs ensures that the
consolidated financial statements and notes of Geopacific Resources NL comply with International
Financial Reporting Standards (IFRSs). The Company financial statements and notes also comply with
IFRSs except that it has elected to apply the relief provided to parent entities in respect of certain
disclosure requirements contained in AASB 132 Financial Instruments: Presentation and Disclosure.
Historical cost convention
These financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of financial statements in conformity with AIFRS requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in the process of applying
the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are significant to the financial statements, are disclosed in note
3.
Significant accounting policies
Accounting policies are selected and applied in a manner which ensures that the resultant financial
information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the
underlying transactions and other events is reported.
The Company has adopted relevant new and revised accounting standards and pronouncements with no
material impact.
The following significant accounting policies have been adopted in the preparation and presentation of
the financial report:
(a) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred.
(b) Borrowing costs
Borrowing costs are expensed as incurred.
(c) Cash and cash equivalents
For cash flow statement presentation purposes, cash and cash equivalents includes cash at bank.
36
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
1 Summary of significant accounting policies (continued)
(d) Contributed equity
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.
(e) Employee benefits
(i) Wages and salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits, and annual leave
expected to be settled within 12 months of the reporting date are recognised in other
payables in respect of employees’ services up to the reporting date and are measured at the
amounts expected to be paid when the liabilities are settled.
(ii) Long service leave
The liability for long service leave is recognised in the provision for employee benefits and
measured as the present value of expected future payments to be made in respect of services
provided by employees up to the reporting date. 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 currency that match, as closely as
possible, the estimated future cash outflows.
(iii) Share-based payments
The fair value of options granted to Directors and employees is recognised as an employee
benefit expense with a corresponding increase in equity. The fair value is measured at grant
date and recognised over the period during which the employees become unconditionally
entitled to the options.
The fair value at grant date is independently determined using a Black-Scholes option
pricing model that takes into account the exercise price, the term of the option, the impact of
dilution, the share price at grant date and expected price volatility of the underlying share,
the expected dividend yield and the risk free interest rate for the term of the option
The fair value of the options granted is adjusted to reflect market vesting conditions, but
excludes the impact of any non-market vesting conditions (for example, profitability and
sales growth targets). Non-market vesting conditions are included in assumptions about the
number of options that are expected to become exercisable. At each balance sheet date, the
Company revises its estimate of the number of options that are expected to become
exercisable. The employee benefit expense recognised each period takes into account the
most recent estimate.
Upon the exercise of options, the balance of the share-based payments reserve relating to
those options is transferred to share capital and the proceeds received, net of any directly
attributable transaction costs, are credited to share capital.
37
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
1 Summary of significant accounting policies (continued)
(f) Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and
measurement or for disclosure purposes.
The nominal value less estimated credit adjustments of trade receivables and payables are
assumed to approximate their fair values. The fair value of financial liabilities for disclosure
purposes is estimated by discounting the future contractual cash flows at the current market
interest rate that is available to the Group for similar financial instruments.
(g) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using
the currency of the primary economic environment in which the entity operates (‘the
functional currency’). The consolidated financial statements are presented in Australian
dollars, which is Geopacific Resources NL’s functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the translation at year-end exchange rates
of monetary assets and liabilities denominated in foreign currencies are recognised in the
income statement.
(h) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the
GST incurred is not recoverable from the taxation authority. In this case it is recognised as part
of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The
net amount of GST recoverable from, or payable to, the taxation authority is included with other
receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from
investing or financing activities which are recoverable from, or payable to the taxation authority,
are presented as operating cash flow.
(i) Impairment of assets
Assets are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is recognised for the amount
by which the asset’s carrying amount exceeds its recoverable amount. The 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 grouped at the lowest levels for which there are separately
identifiable cash inflows which are largely independent of the cash inflows from other assets or
Groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered
an impairment are reviewed for possible reversal of the impairment at each reporting date.
38
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
1 Summary of significant accounting policies (continued)
(j) Income tax
The income tax expense or revenue for the period is the tax payable on the current period’s
taxable income based on the national income tax rate adjusted by changes in deferred tax assets
and liabilities attributable to temporary differences between the tax bases of assets and liabilities
and their carrying amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates
expected to apply when the assets are recovered or liabilities are settled, based on those tax
rates. The relevant tax rates are applied to the cumulative amounts of deductible and taxable
temporary differences to measure the deferred tax asset or liability. An exception is made for
certain temporary differences arising from the initial recognition of an asset or a liability. No
deferred tax asset or liability is recognised in relation to these temporary differences if they
arose in a transaction, other than a business combination, that at the time of the transaction did
not affect either accounting profit or taxable profit or loss.
Deferred tax liabilities and assets are not recognised for temporary differences between the
carrying amount and tax bases of investments in controlled entities where the Company is able
to control the timing of the reversal of the temporary differences and it is probable that the
differences will not reverse in the foreseeable future.
Current and deferred tax balances attributable to amounts recognised directly in equity are also
recognised directly in equity.
(k) Investments
Non-current investments in subsidiaries are measured on the cost basis. The carrying amount of
non-current investments is reviewed annually by Directors to ensure it is not in excess of the
recoverable amount of these investments.
(l) Loss per share
(i) Basic loss per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of
the Company, excluding any costs of servicing equity other than ordinary shares, by the
weighted average number of ordinary shares outstanding during the financial year, adjusted
for bonus elements in ordinary shares issued during the year.
(ii) Diluted loss per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per
share to take into account the after income tax effect of interest and other financing costs
associated with dilutive potential ordinary shares and the weighted average number of shares
assumed to have been issued for no consideration in relation to dilutive potential ordinary
shares.
39
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
1 Summary of significant accounting policies (continued)
(m) Mineral Tenements and Deferred Mineral Exploration Expenditure
The Group has adopted the area of interest method for capitalising the costs of procurement,
exploration and evaluation of areas where applications have been made for Prospecting
Licences.
The ultimate recoupment of such costs is dependent on sale of the tenement(s) or successful
development and commercial exploitation of the areas. Amortisation charges are to be made
over the life of the areas of interest and will be determined on a basis so that the rate of
amortisation shall not lag behind the rate of depletion of the economically recoverable reserves
in the areas of interest.
The areas of interest are each of the Special Prospecting Licences in which companies in the
Group have an interest. Where exploration expenditure has been incurred during the period, it
will be carried forward in the Balance Sheet together with procurement costs as deferred mineral
exploration expenditure until the Directors are of the opinion that a tenement should be
abandoned as it shows no potential for recovery of expenditure incurred, in which case the said
expenditure is written off in the Income Statements.
(n) Plant and equipment
Plant and equipment is stated at historical cost less depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. Cost may also include
transfers from equity of any gains/losses on qualifying cash flow hedges of foreign currency
purchases of property, plant and equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will
flow to the Group and the cost of the item can be measured reliably. All other repairs and
maintenance are charged to the income statement during the financial period in which they are
incurred.
Depreciation on assets is calculated using the straight-line method to allocate their cost or
revalued amounts, net of their residual values, over their estimated useful lives, as follows:
- Plant, vehicles and equipment
10 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each
balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount (note 1(i)).
Gains and losses on disposals are determined by comparing proceeds with carrying amount.
These are included in the income statement. When revalued assets are sold, it is Group policy to
transfer the amounts included in other reserves in respect of those assets to retained earnings.
40
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
1 Summary of significant accounting policies (continued)
(o) Principles of consolidation
(i) Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries
of Geopacific Resources NL (“ the Company”) as at 31 December 2007 and the results of all
subsidiaries for the year then ended. Geopacific Resources NL and its subsidiaries together
are referred to in this financial report as the Group.
Subsidiaries are all those entities over which the Group has the power to govern the financial
and operating policies, generally accompanying a shareholding of more than one-half of the
voting rights. The existence and effect of potential voting rights that are currently
exercisable or convertible are considered when assessing whether the Group controls
another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the
Group. They are de-consolidated from the date that control ceases.
The purchase method of accounting is used to account for the acquisition of subsidiaries by
the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group
companies are eliminated. Unrealised losses are also eliminated unless the transaction
provides evidence of the impairment of the asset transferred. Accounting policies of
subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the Group.
Investments in subsidiaries are accounted for at cost in the individual financial statements of
Geopacific Resources NL.
Unrealised gains on transactions between the Group and its associates are eliminated to the
extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless
the transaction provides evidence of an impairment of the asset transferred. Accounting
policies of associates have been changed where necessary to ensure consistency with the
policies adopted by the Group.
(p) Revenue recognition
(i) Sale of Goods and Disposal of Assets
Revenue from the sale of goods and disposal of other assets is recognised when the Group
has passed the risks and rewards of ownership to the buyer.
(ii) Interest Income
Interest income is recognised on an accrual basis.
(iii) Other Income
Other income is recognised on receipt.
(iv) General
All revenue is stated net of goods and services tax (GST).
41
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
1 Summary of significant accounting policies (continued)
(q) Segment reporting
A business segment is a Group of assets and operations engaged in providing products or
services that are subject to risks and returns that are different to those of other business
segments. A geographical segment is engaged in providing products or services within a
particular economic environment and is subject to risks and returns that are different from those
of segments operating in other economic environments.
(r) Trade receivables
Trade receivables are recognised initially at fair value.
(s) Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end
of financial year which are unpaid. The amounts are unsecured and are usually paid within 30
days of recognition.
(q) New standards and interpretations not yet adopted
The following standards, amendments to standards and interpretations have been identified as
those which may impact the Group in the period of initial application. They are available for
early adoption at 31 December 2007, but have not been applied in preparing these consolidated
financial statements:
. Revised AASB 101 Presentation of Financial Statements introduces as a financial statement
(formerly “primary” statement) the “statement of comprehensive income”. The revised
standard does not change the recognition, measurement or disclosure of transactions and
events that are required by other AASBs. The revised AASB 101 will become mandatory for
the Group’s 31 December 2010 financial statements. The Group has not yet determined the
potential effect of the revised standard on the Group’s disclosures.
. Revised AASB 123 Borrowing Costs removes the option to expense borrowing costs and
requires that an entity capitalise borrowing costs directly attributable to the acquisition,
construction or production of a qualifying asset as part of the cost of that asset. The revised
AASB 123 will become mandatory for the Group’s 31 December 2010 financial statements
and is not expected to have any effect on the financial report.
2 Financial risk management
The Group's activities expose it to a variety of financial risks; market risk (including currency risk, fair
value interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk. The
Group's overall risk management programme focuses on the unpredictability of financial markets and
seeks to minimise potential adverse effects on the financial performance of the Group.
(a) Foreign exchange risk
Foreign exchange risk arises when future commercial transactions and recognised assets and
liabilities are denominated in a currency that is not the Group’s functional currency.
42
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
2 Financial risk management (Continued)
(b) Credit risk
There is negligible credit risk on financial assets of the Group since there is no exposure to
individual customers or countries and the economic entity’s exposure is limited to the amount of
cash, short term deposits and receivables which have been recognised in the balance sheet and is
minimised by using recognised financial intermediaries as counterparties.
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of
funding through an adequate amount of committed finance facilities.
(d) Cash flow and fair value interest rate risk
The Group is exposed to a risk of changes to cash flows due to changes in interest rates.
3 Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the Group and that
are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates
will, by definition, seldom equal the related actual results. There are no estimates and assumptions that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year.
4 Revenue
Consolidated
2006
$
2007
$
The Company
2006
$
2007
$
Interest income
Unrealised foreign exchange gain
63,887
-
72,280
-
63,887
35,840
72,280
-
5 Expenses
Employee benefits expense
Wages and salaries
Share based payments
63,887
72,280
99,727
72,280
122,000
45,489
-
236,178
122,000
45,489
-
236,178
167,489
236,178
167,489
236,178
Depreciation
Unrealised foreign currency exchange
loss
Impairment loss recognised in respect of
loans to subsidiaries
111
-
-
-
-
-
111
-
-
105,002
(113,004)
27,738
43
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
6 Remuneration of Auditors
Audit Services:
Auditors of the Company – Nexia Court
& Co
Audit of the financial reports
- Current year
- Prior year
Review of the half-year financial report
Other Services – Tax
Other Auditors – Ernst & Young Fiji
Audit of the financial report
7
a
Income tax
Income tax expense
Prima
tax benefit
income
facie
calculated at 30% on the loss from
ordinary activities
Decrease in income tax benefit due to:
Tax benefit on losses not recognised
Consolidated
2006
$
2007
$
The Company
2006
$
2007
$
16,725
18,713
5,266
1,863
9,507
-
13,123
7,818
16,725
18,713
5,266
-
13,123
7,818
1,782
1,863
1,782
16,183
-
-
(125,921)
(114,883)
(81,268)
(154,705)
125,921
114,883
81,268
154,705
Income tax expense
-
-
-
-
b
Deferred tax assets
Future income tax benefit not taken
into account
The potential future income tax
benefit arising from tax losses and
temporary differences has not been
recognised as an asset because
recovery of tax assets is not probable.
Tax losses carried forward
Temporary differences
471,421
-
471,421
163,625
-
163,625
471,421
1,425,602
1,897,023
163,625
573,031
736,656
The potential future income tax benefit will only be obtained if:
i.
the Group and the Company derive future assessable income of a nature and an amount
sufficient to enable the benefit to be realised;
ii. the Group and the Company continue to comply with the conditions for deductibility imposed
by the law; and
iii. no changes in tax legislation adversely affect the realising of the benefit.
44
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
8 Cash and cash equivalents
Current
Cash at bank
* The average effective interest rate for
2007 was 5.50% (2006 5.25%).
9 Trade and other receivables
Current
Short term deposits
Sundry debtors
GST receivable
10 Other current assets
Current
Prepayments
11 Receivables
Non-current
Amount owing by Geopacific Limited
Impairment loss
Amount owing by Beta Limited
Impairment loss
Consolidated
2006
$
2007
$
The Company
2006
$
2007
$
794,535
1,256,928
648,120
1,262,869
-
152,025
107,578
104,942
-
62,365
-
-
3,809
-
-
7,738
259,603
167,307
3,809
7,738
19,802
17,662
19,802
17,662
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,887,284
(26,651)
1,492,820
(27,738)
2,860.633 1,465,082
2,569,569
(2,302,080)
2,187,989
(2,187,989)
267,489
-
3,128,122
1,465,082
45
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
12 Exploration expenditure
Non-Current
Costs carried forward in respect of areas of interest in Fiji in exploration and evaluation phase
are:
Tenement
Millenium
SPL 1377 Nuku
SPL 1434 Nadi South
SPL 1368 Vuda
SPL 1361 Sabeto
CX 667 Nadovu
Nabila
Beneficial
Interest of the
Group
100%
100%
100%
80%
100%
100%
100%
Rakiraki Joint Venture
50%
(SPL 1231, 1373, 1436)
Consolidated
2006
$
2007
$
The Company
2006
$
2007
$
13,000
673,717
991,819
818,133
58,852
9,620
896
-
454,710
591,329
170,212
17,541
8,371
-
13,000
83,732
81,006
189,914
16,035
-
-
-
550
29,301
13,401
-
-
-
2,566,037
896,056
1,242,163
554,665
383,687
181,365
43,252
126,483
3,462,093
1,796,828
565,052
169,735
Movement
Carrying value – beginning of year
Additions
Amounts written off
1,796,828
1,665,265
-
866,032
930,796
-
169,735
395,317
-
-
169,735
-
Carrying value – end of year
3,462,093
1,796,828
565,052
169,735
13 Property, plant and equipment
Non-Current
Plant, vehicles and equipment
At Directors’ valuation of market value at
1 January 1999
At Cost
Less: Provision for depreciation
Movement
Carrying value – beginning of year
Additions
Depreciation (included in exploration
expenditure)
Depreciation (included in profit and loss)
Carrying value – end of year
9,639
-
(1,254)
8,385
3,585
6,128
(1,328)
-
8,385
-
6,481
(111)
6,370
-
6,481
-
(111)
6,370
-
-
-
-
-
-
-
-
-
9,639
14,659
(4,874)
19,424
8,385
14,659
(3,509)
(111)
19,424
46
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
14 Investments
Non-current
Investments in Unlisted Securities
. Shares in Beta Limited
. Shares in Geopacific Limited
Provision for loss on investment
15 Trade and other payables
Current
Trade creditors and accruals
Directors fees owed
Consolidated
2006
$
2007
$
The Company
2006
$
2007
$
-
-
-
-
-
-
-
-
15,372
1,866,993
(1,882,365)
15,372
1,866,993
(1,882,365)
-
-
201,110
-
207,418
53,445
201,110
260,863
16,929
-
16,929
46,605
-
46,605
16 Contributed equity
Issued Capital
Balance as at 1 January
Issues during period:
3,373,440 shares issued under
prospectus
4,233,333 at 6.6 cents on conversion of
convertible notes
11,938,025 shares issued under I PO
308,098 shares issued in lieu of
payment for services rendered
Less share issue costs
6,311,996
3,699,809
6,311,996
3,699,809
1,821,658
-
-
280,000
1,821,658
-
-
280,000
-
2,719,844
-
2,719,844
-
(118,387)
61,620
(449,277)
-
(118,387)
61,620
(449,277)
Balance as at 31 December
8,015,267
6,311,996
8,015,267
6,311,996
At balance date the Company had on issue the following securities:
- 39,135,782 (2006 – 35,762,342) fully paid ordinary shares, and
- 14,286 (2006 – 14,286) contributing shares paid to 10.5 cents.
47
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
17 Options
Consolidated and
Company
2007
Issue
Date
08.05.2007
08.05.2007
08.05.2007
01.12.2007
01.12.2007
Total Options on issue
Expiry
Date
08.05.2012
08.05.2013
08.05.2014
01.11.2009
01.11.2009
Exercise
Price
$0.20
$0.25
$0.30
$0.50
$0.70
Number
on issue
31
December
2006
500,000
500,000
500,000
200,000
200,000
1,900,000
Granted
during
year
-
-
-
-
-
-
Lapsed
during
year
-
-
-
-
-
-
Exercised
during
year
-
-
-
-
-
-
Number
on issue
31
December
2007
500,000
500,000
500,000
200,000
200,000
1,900,000
No options were issued in 2007.
18 Reserves
(a)
Reserves
Forfeited share reserve
Foreign currency translation reserve
Share-based payments reserve
(b) Movements
Share-based payments reserve
Balance 1 January
Option expense
Consolidated
The Company
2007
$
3,123
22,776
281,667
2006
$
3,123
(16,260)
236,178
2007
$
3,123
-
281,667
2006
$
3,123
-
236,178
307,566
223,041
284,790
239,301
236,178
45,489
-
236,178
236,178
45,489
-
236,178
Balance 31 December
281,667
236,178
281,667
236,178
Foreign currency translation reserve
Balance 1 January
Exchange gains (losses) during year
Balance 31 December
Forfeited share reserve
Balance 1 January
Shares forfeited during year
Balance 31 December
Total reserves
(16,260)
39,036
22,776
-
(16,260)
(16,260)
-
-
-
-
3,123
-
3,123
3,123
-
3,123
3,123
-
3,123
3,123
-
3,123
307,566
223,041
284,790
239,301
48
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
18
Reserves (continued)
(c) Nature and purpose of reserves
Share-based payments reserve
The share-based payments reserve records the value of options issued to employees and
Directors which have been taken to expenses.
Foreign currency translation reserve
The foreign currency translation reserve records unrealised exchange gains and losses during
the year.
Forfeited shares reserve
The forfeited shares reserve records the amount of paid up capital received on shares which
have been forfeited due to non payment of calls.
19 Accumulated losses
Accumulated losses at the beginning of
the year
Loss for the year
Accumulated losses at the end of the
year
20 Contingent liabilities
Option acquisition payments
Consolidated
The Company
2007
$
2006
$
2007
$
2006
$
(3,548,749)
(419,737)
(3,165,805)
(382,944)
(3,674,816)
(270,894)
(3,159,132)
(515,684)
(3,968,486)
(3,548,749)
(3,945,710)
(3,674,816)
Tenement
SPL 1361
Due Date
on or before 4 July 2008
Payment
F$200,000 less
option payments
SPL 1368
on or before 22 July
2008
A$512,000 less
option payments
Comments
Payment required for
purchase
to
GPL
100% SPL 1361
Payment required for
GPL to purchase 80%
SPL 1368
49
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
21 Commitments
Tenement Commitments
Entities in the Group are committed for expenditure by way of cash expenditure to retain their
interest in areas over which Special Prospecting Licenses are held.
The following expenditure proposals for 2008 are being considered and these are contingent on
additional funding during 2008 as well as the successful acquisition of Millennium Mining (Fiji) Ltd.
Expenditure $F
Comments
Tenement
SPL 1377
SPL 1434
SPL 1368
SPL 1361
SPL application CX 667
(enclosing SPL 1377)
SPL 1231/1373
Renewal
Application lodged
to
31 December, 2008
16 March 2009
31 December, 2008
31 December, 2008
First 12 month period
after granting
31 December, 2008
100,000
100,000
100,000
50,000
60,000
150,000
SPL 1436
16 March 2009
25,000
SPL1216
SPL 1415
Faddys Deposit
Kavukavu Project
900,000
50,000
It is expected that CX 667
will be granted in 2008
50% to be met by JV
partner Imperial Mining
(Fiji) Ltd
50% to be met by JV
partner Imperial Mining
(Fiji) Ltd
Millennium Mining (Fiji) Ltd
Millennium Mining (Fiji) Ltd
22 Particulars relating to controlled entities
Class of Share
Holding Company
Amount of Investment
Beta Limited
Geopacific Limited
Ordinary
Ordinary
2007
%
100
100
2006
%
100
100
2007
$
2006
$
15,372
1,866,993
15,372
1,866,993
1,882,365
1,882,365
Geopacific Limited and Beta Limited are companies incorporated and carrying on business in Fiji.
50
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
23 Key management personnel disclosures
(a) Directors
The names of each person holding the position of Director of Geopacific Resources NL during the
financial year were:
I J Pringle
R J Fountain
W A Brook
R H Probert
I N A Simpson
C K McCabe (alternate for INA Simpson)
(b) Other key management personnel
All Directors are identified as key management personnel under AASB 124 “Related Party
Disclosures”.
There are no other staff that meet the definition of key management personnel.
(c) Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share-based payments
Consolidated
The Company
2007
$
376,310
-
45,489
421,799
2006
$
274,803
-
47,318
322,121
2007
$
245,475
-
45,489
290,964
2006
$
274,803
-
47,318
322,121
The Company has taken advantage of the relief provided by the Corporations Regulations and has
transferred the detailed remuneration disclosures to the Directors’ Report. The relevant information can be
found in sections A-D of the remuneration report included in the Directors Report.
(d) Directors Fees Owing
Director
W A Brook
2007
$
-
2006
$
53,445
51
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
23 Key management personnel disclosures (continued)
(e) Equity instrument disclosures relating to key management personnel
(i)
Options provided as remuneration and shares issued on exercise of such options
Details of options provided as remuneration and shares issued on the exercise of such options,
together with terms and conditions of the options, can be found in section D of the remuneration
report included in the Directors Report.
(ii) Option holdings
The numbers of options over ordinary shares in the Company held during the financial year by
each Director of the Company and other key management personnel of the Group, including their
personally related parties, are set out below.
2007
Balance at
the start of
the year
Name
Directors of Geopacific Resources Ltd
1,500,000
-
-
-
-
I J Pringle
W A Brook
I N A Simpson
R J Fountain
R H Probert
Granted during
the year as
compensation
Exercised
during the
year
Other
changes
during the
year
Balance at
the end of
the year
Vested and
exercisable
at the end of
the year
-
-
-
-
-
-
-
-
-
-
- 1,500,000
-
-
-
-
-
-
-
-
500,000
-
-
-
-
No options are vested and unexercisable at the end of the year.
2006
Balance at
the start of
Name
the year
Directors of Geopacific Resources Ltd
-
-
-
-
-
I J Pringle
W A Brook
I N A Simpson
R J Fountain
R H Probert
Granted during
the year as
compensation
Exercised
during the
year
Other
changes
during the
year
Balance at
the end of
the year
Vested and
exercisable
at the end of
the year
1,500,000
-
-
-
-
-
-
-
-
-
- 1,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
52
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
23 Key management personnel disclosures (continued)
(e) Equity instrument disclosures relating to key management personnel (continued)
(iii)
Share holdings
The numbers of shares in the Company held at the end of the financial year by each Director of the Company
and other key management personnel of the Group, including their personally related parties, are set out below.
There were no shares granted during the reporting period as compensation.
2007
Balance at
the start of
the year
2006
Name
Ordinary shares
Directors of Geopacific Resources Ltd
60,000
4,591,083
692,695
40,000
589,454
Balance at
the start of
the year
I J Pringle
W A Brook
I N A Simpson
R J Fountain
R H Probert
Name
Ordinary shares
Directors of Geopacific Resources Ltd
60,000
4,591,083
692,695
40,000
589,454
I J Pringle
W A Brook
I N A Simpson
R J Fountain
R H Probert
Received during the
year on the exercise
of options
Other changes
during the year
Balance at the end of the
year
-
-
-
-
-
Received during the
year on the exercise of
options
-
-
-
-
-
60,000
4,591,083
692,695
40,000
589,454
Other changes
during the year
Balance at the end of the
year
-
-
-
-
-
-
-
-
-
-
60,000
4,591,083
692,695
40,000
589,454
53
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
24 Related party transactions
All transactions with related parties are on normal commercial terms and conditions.
25 Share-based payments
(a) Employee Option Plan
The establishment of the Geopacific Resources NL Employee Option Plan was approved by
shareholders at the 2001 annual general meeting. All staff and consultants are eligible to
participate in the plan.
Options are granted under the plan for no consideration. Options are granted for a five year period.
Options granted under the plan carry no dividend or voting rights.
When exercisable, each option is convertible into one ordinary share.
The exercise price of options is based on the weighted average price at which the Company’s
shares are traded on the Australian Stock Exchange during the five trading days immediately
before the options are granted.
Set out below are summaries of options granted under the plan:
Grant date
Expiry date
Exercise price Value per option at
Date vesting
8 May 2006
8 May 2006
8 May 2006
8 May 2012
8 May 2013
8 May 2014
1 December 2006 1 November 2009
1 December 2006 1 November 2009
$0.20
$0.25
$0.30
$0.50
$0.70
grant date
$0.0843
$0.0757
$0.0708
$04945
$0.4498
8 May 2007
8 May 2008
8 May 2009
1 December 2006
1 December 2006
No options were exercised or forfeited during the periods covered by the above tables.
The weighted average remaining contractual life of share options outstanding at the end of the
period was 4.62 years (2006 – 5.62 years).
The assessed fair value at grant date of options granted to the individuals is allocated equally over
the period from grant date to vesting date, and the amount is included in the remuneration tables
above. Fair values at grant date are independently determined using a Black-Scholes option
pricing model that takes into account the exercise price, the term of the option, the impact of
dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk-free interest rate for the term of the option.
54
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
26 Events occurring after the balance sheet date
Except for the acquisition of Millenium Mining (Fiji) Limited, including its assets, no matters or
circumstances have arisen since 31 December 2007 that have significantly affected or may
significantly affect the Group’s operations in future financial years, or the results of those operations
in future financial years, or the Group’s state of affairs in future financial years.
27 Segment information
The Group operates in one business segment being mineral exploration in Fiji.
28 Loss per share
(a) Basic loss per share
Loss attributable to the ordinary equity holders of the Company
(b) Diluted loss per share
Loss attributable to the ordinary equity holders of the Company
(c) Reconciliations of loss used in calculating loss per share
Basic loss per share
Loss attributable to the ordinary equity holders of the Company used in
calculating basic loss per share
Diluted loss per share
Loss attributable to the ordinary equity holders of the Company used in
calculating diluted loss per share
(d) Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator in
calculating basic loss per share
Adjustments for calculation of diluted loss per share:
Options
Weighted average number of ordinary shares and potential ordinary
shares used as the denominator in calculating diluted loss per share
Consolidated
2007
Cents
2006
Cents
(1.08)
(1.28)
(1.06)
(1.27)
Consolidated
2007
$
2006
$
(419,737)
(382,944)
(419,737)
(382,944)
2007
Number
Consolidated
2006
Number
38,856,771
29,907,210
562,000
352,438
39,418,771
30,259,648
55
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
29 Notes to the cash flow statements
(a) For the purpose of the Cash Flow Statements, cash and cash equivalents includes cash at bank.
Cash and cash equivalents at the end of the financial year as shown in the Cash Flow Statements is
reconciled to the related items in the Balance Sheets as follows:
Consolidated
The Company
2007
$
2006
$
2007
$
2006
$
Cash at Bank
794,535
1,256,928
648,120
1,262,869
(b) Non Cash Financing
Conversion of redeemable notes into
shares
Shares issued in lieu of payment for
services rendered
(c)
Reconciliation of Cash Flows from
Operating Activities
-
-
280,000
61,620
-
-
280,000
61,620
Loss for the year
Depreciation
Impairment loss
Options expense
(419,737)
(382,944)
(270,894)
(515,684)
111
-
45,489
-
-
236,178
111
(113,004)
45,489
-
27,738
236,178
Changes in Assets and Liabilities:
(Decrease)/increase in receivables
Decrease in other assets
(Decrease)/increase in payables
(92,296)
(2,139)
(74,686)
(128,947)
(17,662)
79,098
3,928
(2,140)
31,945
3,811
(17,662)
70,587
Net Cash from Operating Activities
(543,258)
(214,277)
(304,565)
(195,032)
56
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
30
FINANCIAL INSTRUMENTS DISCLOSURES
(a)
Capital
The Group considers its capital to comprise its ordinary share capital and accumulated retained
earnings.
In managing its capital, the Group’s primary objective is to ensure its continued ability to
provide a consistent return for its equity shareholders through a combination of capital growth
and distributions. In order to achieve this objective, the Group seeks to maintain a gearing ratio
that balances risks and returns at an acceptable level and also to maintain a sufficient funding
base to enable the Group to meet its working capital and strategic investment needs. In making
decisions to adjust its capital structure to achieve these aims, either through altering its dividend
policy, new share issues, or reduction of debt, the Group considers not only its short-term
position but also its long-term operational and strategic objectives.
It is the Group’s policy to maintain its gearing ratio within the range of 0-25% (2006: 0-25%).
The Group’s gearing ratio at the balance sheet date is shown below:
Cash and cash equivalents
Loans
Net debt
Share capital
Reserves
Retained profit
Total capital
Gearing ratio
Consolidated
2007
$
2006
$
794,535
-
794,535
1,256,968
-
1,256,968
8,015,267
307,566
(3,941,639)
4,381,194
6,311,996
223,041
(3,548,749)
2,986,288
-
-
57
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
30
FINANCIAL INSTRUMENTS DISCLOSURES (CONTINUED)
(b)
Financial instrument risk exposure and management
In common with all other businesses, the Group is exposed to risks that arise from its use of
financial instruments. This note describes the Group’s objectives, policies and processes for
managing those risks and the methods used to measure them.
Further quantitative information in respect of these risks is presented throughout these financial
statements.
There have been no substantive changes in the Group’s exposure to financial instrument risks,
its objectives, policies and processes for managing those risks or the methods used to measure
them from previous periods unless otherwise stated in this note.
(c)
Principal financial instruments
The principal financial instruments used by the Group, from which financial instrument risk
arises, are as follows:
other receivables;
cash at bank; and
trade and other payables.
(d) General objectives, policies and processes
The Board has overall responsibility for the determination of the Group’s risk management
objectives and policies and has the responsibility for designing and operating processes that
ensure the effective implementation of the objectives and policies to the Group’s finance
function. The Board receives monthly reports through which it reviews the effectiveness of the
processes put in place and the appropriateness of the objectives and policies it sets.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible
without unduly affecting the Group’s competitiveness and flexibility. Further details regarding
these policies are set out below:
(i)
Credit risk
Credit risk arises principally from the Group’s trade receivables and investments in
corporate bonds. It is the risk that the counterparty fails to discharge its obligation in
respect of the instrument.
Other receivables
Other receivables comprise GST receivable. Credit worthiness of debtors is undertaken
when appropriate.
58
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
30
FINANCIAL INSTRUMENTS DISCLOSURES (CONTINUED)
(d) General objectives, policies and processes (Continued)
(ii)
Liquidity risk
Liquidity risk arises from the Group’s management of working capital and the finance
charges and principal repayments on its debt instruments. It is the risk that the Group
will encounter difficulty in meeting its financial obligations as they fall due.
The Group’s policy is to ensure that it will always have sufficient cash to allow it to
meet its liabilities when they become due. To achieve this aim, it seeks to maintain cash
balances (or agreed facilities) to meet expected requirements for a period of at least 45
days.
The Board receives cash flow projections on a quarterly basis as well as information
regarding cash balances. At the balance sheet date, these projections indicated that the
Group expected to have sufficient liquid resources to meet its obligations under all
reasonably expected circumstances.
(iii) Market risk
Market risk does not arise as the Group does not use interest bearing, tradable and
foreign currency financial instruments.
(iv)
Interest rate risk
The Group does not have any exposure to fluctuations in interest rates that are inherent
in financial markets. The Board makes investment decisions after considering advice
received from professional advisors.
(v)
Currency risk
The Group’s policy is, where possible, to allow Group entities to settle liabilities
denominated in their functional currency (AUD) with the cash generated from their own
operations in that currency. Where Group entities have liabilities denominated in a
currency other than their functional currency (and have insufficient reserves of that
currency to settle them) cash already denominated in that currency will, where possible,
be transferred from elsewhere.
59
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
30
FINANCIAL INSTRUMENTS DISCLOSURES (CONTINUED)
(d) General objectives, policies and processes (Continued)
(vi)
Sovereign risk
Country or sovereign risk relates to the likelihood that changes in the business
environment will occur that reduce the profitability of doing business in a country.
These changes can adversely affect operating profits as well as the value of assets.
Types of country risk include;
Political changes. Governments may change economic policies. Changes in the ruling
party in Australia or Fiji (brought about by elections, coups or wars) may result in major
policy changes. This could result in expropriation of the Company’s exploration leases,
inability to repatriate future profits, higher taxes, higher tariffs and import costs,
elimination of FDI incentives, domestic ownership requirements and local content
requirements.
Macroeconomic mismanagement. The Australian and Fiji governments may pursue
unsound monetary and fiscal policies which may lead to inflation, higher interest rates,
recession and hard currency shortage.
Other types of country risk include war and labour unrest which could result in higher
costs and work stoppages.
The Group has maintained a working policy of keeping all relevant Government offices
informed and updated on activities to allow clear avenues of communication with
Government authorities and an understanding of any policy changes and any affects that
they may have on the Group’s work. Regular meetings, field visits and discussion
Groups are held with staff of the Mineral Resources Department of Fiji and these include
Ministerial and senior management briefings.
(e)
Accounting policies
(i)
Financial assets
The Group’s financial assets fall into the categories discussed below, with the allocation
depending to an extent on the purpose for which the asset was acquired. The Group
does not use derivative financial instruments in economic hedges of currency or interest
rate risk. The Group has not classified any of its financial assets as held to maturity.
Unless otherwise indicated, the carrying amounts of the Group’s financial assets are a
reasonable approximation of their fair values.
60
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
30
FINANCIAL INSTRUMENTS DISCLOSURES (CONTINUED)
(e)
Accounting policies (Continued)
(i)
Financial assets (continued)
Other receivables
These assets are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. They arise principally though the sale of assets and
GST receivable. They are initially recognised at fair value plus transaction costs that are
directly attributable to the acquisition or issue and subsequently carried at amortised cost
using the effective interest rate method, less provision for impairment.
The effect of discounting on these financial instruments is not considered to be material.
Impairment provisions are recognised when there is objective evidence (such as
significant financial difficulties on the part of the counterparty or default or significant
delay in payment that the Group will be unable to collect all of the amounts due under
the terms receivable, the amount of such a provision being the difference between the
net carrying amount and the present value of the future such provisions are recorded in a
separate allowance account with the loss being recognised within administrative
expenses in the income statement. On confirmation that the trade receivable will not be
collectable, the gross carrying value of the asset is written off against the associated
provision.
Available for sale
Non-derivative financial assets not included in the above categories are classified as
available for sale. They are carried at fair value with changes in fair value recognised
directly in the available for sale reserve. Where there is a significant or prolonged
decline in the fair value of an available for sale financial asset (which constitutes
objective evidence of impairment), the full amount of the impairment, including any
amount previously charged to equity, is recognised in the income statement. Purchases
and sales of available for sale financial assets are recognised on settlement date with any
change in fair value between trade date and settlement date being recognised in the
available for sale reserve. On sale, the amount held in the available for sale reserve
associated with that asset is removed from equity and recognised in the income
statement. Interest on corporate bonds classified as available for sale is calculated using
the effective interest method and is recognised in finance income in the income
statement.
61
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2007
30
FINANCIAL INSTRUMENTS DISCLOSURES (CONTINUED)
(e)
Accounting policies (Continued)
(ii)
Financial liabilities
The Group classifies its financial liabilities as measured at amortised cost. The Group
does not use derivative financial instruments in economic hedges of currency or interest
rate risk.
Unless otherwise indicated, the carrying amounts of the Groups financial liabilities are a
reasonable approximation of their fair values.
These financial liabilities include trade payables and other short-term monetary
liabilities, which are initially recognised at fair value and subsequently carried at
amortised cost using the effective interest method.
(iii)
Share capital
Financial instruments issued by the Group are treated as equity only to the extent that
they do not meet the definition of a financial liability. The Groups ordinary shares are
classified as equity instruments.
For the purposes of these disclosures, the Group considers its capital to comprise its
ordinary share capital, and accumulated retained earnings. Neither the available for sale
reserve nor the translation reserve is considered as capital. There have been no changes
in what the Group considers to be capital since the previous period.
The Group is not subject to any externally imposed capital requirements.
62
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
CORPORATE GOVERNANCE STATEMENT
The Board of Directors is responsible for the corporate governance of the Company including its
strategic development, and has adopted the following principles:
Accountability - The Board is accountable to the Company Shareholders for the performance of the
Company and will have overall responsibility for its operations. Day to day management of the
Company’s affairs and the implementation of the corporate strategy and policy initiatives is delegated
by the Board to the Managing Director.
Board Composition - The Directors consider the size and composition of the Board is appropriate
given the size and status of the Company. However, the Company’s constitution provides that at every
annual general meeting, one third of the Directors shall retire from office but may stand for re-election.
Conflicts of Interest - In accordance with the Corporations Act and the Company’s constitution, the
Directors must keep the Board advised, on an ongoing basis, of any interest that could potentially
conflict with those of the Company.
Director and Senior Management Dealings in Company Securities - The Company’s constitution
permits the Directors to acquire securities in the Company. However, the Company policy prohibits
Directors and senior management from trading the Company’s securities at any time whilst in
possession of price sensitive information, and for 24 hours after any major announcements, the release
of the Company’s annual financial results to the ASX or the annual general meeting.
Board Committees - The Board of Directors takes ultimate responsibility for corporate governance
including the functions of establishing compensation arrangements of the Managing Director and its
senior executives and officers, appointment and retirement of non-executive Directors, appointment of
auditors,
and
Remuneration/Nomination Committees. The Board seeks independent professional advice as necessary
in carrying out its duties and responsibilities.
risk, maintenance of
areas of business
and Audit
standards
ethical
Continuous Disclosure - The Company has a policy that all the Company shareholders and investors
have equal access to the Company’s information and that shareholders will be informed of all major
developments affecting the Company’s state of affairs. The Chairman of the Board ensures that all price
sensitive information is disclosed to the ASX in accordance with the continuous disclosure requirements
of the Corporations Act and the ASX Listing Rules. The Company secretary has primary responsibility
for all communications with the ASX.
Code of Ethics - The Directors, management and staff are expected to perform their duties for the
Company in a professional manner and act with the utmost integrity and objectivity, striving at all times
to enhance the reputation and performance of the Company.
Share Based Payments - The Company has and intends to issue options to Directors and senior staff as
an incentive in relation to performance of their duties.
63
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
ASX INFORMATION
The shareholder information set out below was applicable as at 25 March 2008.
A. Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
1
1,001
5,001
10,001
100,001 and over
-
-
-
-
Total
1000
5,000
10,000
100,000
Class of equity security
Ordinary shares
Number
12
53
145
231
51
492
Shares
8,224
184,541
1,371,540
8,922,691
28,648,786
39,135,782
There were 28 holders of less than a marketable parcel of ordinary shares.
B. Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest holders of quoted equity securities are listed below:
Name
Ordinary shares
Finders Resources Ltd
Mr W A Brook
Yarraandoo Pty Ltd (Yarraandoo Super Fund A/C)
Otter Gold Mines Ltd
Mrs S K Brook
Resinfund Pty Ltd
Mr O L Hegarty
Romadak Pty Ltd
Mr R A Maxwell
Mr I Simpson
Pacific Western Enterprises Pty Ltd
Mr R H Probert
Mr R & Miss K F Jansen
Graham Jull % Associates Ltd
Moondance Ventures Ltd
Shimmering Bronze Pty Ltd
Romadak Pty Ltd (Romadak Super Fund A/C)
Admiral Tower Pty Ltd (Leveraged Equities A/C)
Mr J N Sovau
Mr L A & Mrs J A Armstrong
Total of Top 20 share holdings
Other shareholders
Total ordinary shares
64
Number held
5,900,000
3,022,003
1,962,600
1,808,451
1,569,050
782,600
750,000
750,000
722,600
692,695
595,238
589,454
521,008
503,644
502,008
500,000
500,000
500,000
460,097
442,600
23,074,048
16,061,734
39,135,782
Percentage of
issued shares
15.076
7.722
5.015
4.621
4.009
2.000
1.916
1.916
1.846
1.770
1.521
1.506
1.331
1.287
1.283
1.278
1.278
1.278
1.176
1.131
58.959
41.041
100.000%
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
ASX INFORMATION
C. Substantial holders
Substantial holders in the Company are set out below:
Substantial Shareholder
(extracts from Substantial Shareholder Register)
Ordinary shares
Finders Resources Ltd
Mr W A Brook and Mrs S K Brook
D. Voting rights
Shareholding
Number held
5,900,000
4,591,053
Percentage
15.076
11.731
The voting rights attaching to each class of equity securities are set out beloww:
(a) Fully paid Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and
upon a poll each share shall have one vote.
(b) Partly paid Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and
upon a poll each share shall have one vote in proportion to the amount paid up on the shares.
(c) There are no voting rights attaching to options.
E Summary of options issued
No of options
No of
holders
Options
held
% Options
Issued
Options expiring 8 May 2012 with an
exercise price of $0.20
Option holders with more than 20% of class
Ian Pringle
Options expiring 8 May 2013 with an
exercise price of $0.25
Ian Pringle
Options expiring 8 May 2014 with an
exercise price of $0.30
Option holders with more than 20% of class
Ian Pringle
Options expiring 1 November 2009 with an
exercise price of $0.50
Option holders with more than 20% of class
Simon Yardley
Roman Leslie
Options expiring 1 November 2009 with an
exercise price of $0.70
Option holders with more than 20% of class
Simon Yardley
Roman Leslie
500,000
500,000
500,000
200,000
1
1
1
2
200,000
2
500,000
100.00%
500,000
100.00%
500,000
100.00%
100,000
100,000
50.00%
50.00%
100,000
100,000
50.00%
50.00%
65
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
SCHEDULE OF TENEMENTS
Tenement
Location
Area
Status
Tenement Schedule
SPL 1377
NUKU 100%
GPL
50 km NNW
of Suva
2,370 ha
SPL 1434
NADI SOUTH
100% GPL
7 km
SE of Nadi
7,450 ha
Raki Raki
Approx.
7,790 ha.
SPL 1231
RAKI RAKI
50% Beta
50% Peninsula
Minerals
Granted on 15 August
1996 to GPL. Proposed
expenditure was
exceeded in 2007 and an
application for a 12
month renewal to 31
December 2008 has been
lodged with MRD.
Granted on 9 June 2005
to GPL for an initial 12
month period which was
renewed to 16 March
2008. Proposed
expenditure was
exceeded in 2007 and an
application for a 12
month renewal to 16
March 2009 has been
lodged with MRD.
Granted on 6 November
1985 to Beta. Peninsula
Minerals has earned
50.0%. Proposed
expenditure was
exceeded in 2007 and an
application for a 12
month renewal to 31
December 2008 has been
lodged with MRD.
Anticipated
Expenditure
F$100,000 is proposed.
Costs 100% GPL
F$100,000 is proposed.
Costs 100% GPL
F$125,000 is proposed.
Costs 50% Beta.
66
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
SCHEDULE OF TENEMENTS
Tenement
Location
Area
Status
Raki Raki
Approx.
3,440 ha.
Raki Raki
Approx.
2,500 ha
SPL 1373
QALAU
50% Beta
50% Peninsula
Minerals
SPL 1436
TABUKA
50% Beta
50% Peninsula
Minerals
CX 667
NADOVU
SPL application.
Nuku
Approx.
7,300 ha
100% GPL
Granted on 6 July 1995 to
Beta. Peninsula Minerals
has earned 50.0%.
Proposed expenditure
was exceeded in 2007
and an application for a
12 month renewal to 31
December 2008 has been
lodged with MRD.
Granted on 9 June 2005
to Beta. Peninsula
Minerals has 50%
interest. 2007 expenditure
of $23,066 was slightly
less than the proposed
$30,000. An application
for a 12 month renewal to
16 March 2009 has been
lodged with MRD.
Application was lodged
on 16 March 2005.
Notices appeared in local
newspapers and in the
Government Gazette in
August 2005. No
objections were received
by the MRD and granting
of CX 667 is expected
during 2008.
Anticipated
Expenditure
F$25,000 is proposed.
Costs 50% Beta.
F$25,000 is proposed.
Costs 50% Beta.
F$60,000 is proposed
for first 12 month
period after granting.
Costs 100% GPL
67
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
SCHEDULE OF TENEMENTS
Tenement
Location
Area
Status
9,510 ha
15 km
NNE of
Nadi
16 km NE of
Nadi
3,850 ha
SW Nadi
SW Nadi
SPL 1368
VUDA
GPL has option
to purchase 80%
by GPL by 22
February 2008
and this has been
extended to 22
July 2008.
SPL 1361
SABETO
GPL had a three
year option to
purchase 100%
of SPL 1361 by
4 April 2008 and
this has been
extended to 4
July 2008.
SPL 1216
NABILA
GPR completed
an agreement to
purchase 100%
of Millennium
Mining (Fiji)
Ltd (MMF)
which owns
SPL1216 on 26
October 2007
SPL 1415
KAVUKAVU
GPR completed
an agreement to
purchase 100%
Granted on 18 October
1994. Ministerial
approval for a 3 year
option to purchase 80%
was granted on 2
February 2005.
Agreement signed 22
February 2005. Proposed
expenditure was
exceeded in 2007 and an
application for a 12
month renewal to 31
December 2008 has been
lodged with MRD.
Granted on 6 October
1999. Ministerial
approval for a 3 year
option to purchase 100%
granted 21 March 2005.
Agreement signed 4 April
2005. Proposed
expenditure was
exceeded in 2007 and an
application for a 12
month renewal to 31
December 2008 has been
lodged with MRD.
Approval of the Purchase
Agreement is required by
the Reserve Bank of Fiji
and this is expected
during early 2008.
Anticipated
Expenditure
Proposed expenditure of
F$100,000.
Costs 100% GPL.
Proposed expenditure of
F$50,000.
Costs 100% GPL.
Proposed Expenditure of
$900,000 to include
drill testing and
feasibility studies.
Costs 100% MMF.
Approval of the Purchase
Agreement is required by
the Reserve Bank of Fiji
and this is expected
Proposed Expenditure of
$50,000.
Costs 100% MMF.
68
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
SCHEDULE OF TENEMENTS
during early 2008.
of Millennium
Mining (Fiji)
Ltd which owns
SPL1415 on 26
October 2007
69