More annual reports from Helix Energy Solutions Group:
2023 ReportH e l i x R e s o u r c e s i L m i t e d a n n u a l r e p o r t 2 0 0 3 i D e s g n e d a n d p r o d u c e d a n n u a l r e p o r t 29030’ S 26025’ S 0 10 118045’ E b y S a p p h i r e S o u t i l o n s HELIX RESOURCES LIMITED Level 3, 24 Kings Park Road West Perth WA 6005 Telephone: +61 8 9321 2644 Facsimile: + 61 8 9321 3909 Email: helix@helix.net.au Website: www.helix.net.au 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 1 CONTENTS Corporate Directory Chairman’s Review Review of Operations Introduction Review of Projects 1 2 3 3 3 Corporate Governance Director’s Report Independent Audit Report Directors’ Declaration Statement of Financial Position Corporate & Financial Review 12 Statement of Financial Performance Statement of Cashflows Notes to the Financial Statements Shareholding Information Tenement Schedule 13 15 19 20 21 22 23 24 39 40 CORPORATE DIRECTORY Directors Ewen W J Tyler Robert W Mosig Anthony R Martin Ian K Macpherson Bryce E Wauchope Company Secretary Riccardo E Vittino Non Executive Chairman Managing Director Executive Director Non Executive Director Non Executive Director Australian Business Number 27 009 138 738 Head and Registered Office Level 3, 24 Kings Park Road West Perth Western Australia 6005 PO Box 825 West Perth Western Australia 6872 Telephone: +61 8 9321 2644 Facsimile: +61 8 9321 3909 helix@helix.net.au Email: http://helix.net.au Website: Share Registry Advanced Share Registry Level 7, 200 Adelaide Terrace Perth Western Australia 6000 PO Box 6283 East Perth Western Australia 6892 Telephone: +61 8 9221 7288 Facsimile: +61 8 9221 7869 Auditor Deloitte Touche Tohmatsu Level 16 Central Park 152–158 Saint George’s Terrace Perth Western Australia 6000 Stock Exchange The Company’s Securities are quoted on the Australian Stock Exchange Limited CODE: HLX and HLXOA. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 2 CHAIRMAN’S REVIEW Dear Shareholder, I am pleased to present to you this year’s Annual Report that covers a very active and eventful period in your Company’s history. This year marks the eighteenth year of operations for the Company. Last year, Helix commenced evaluation of its advanced gold exploration properties after it was decided to place the Munni Munni Platinum Group Metals (PGM) Project on hold. The decision to focus on mining development was made against the backdrop of a reduction in exploration activity by most major mining companies. In fact, your Company was able to purchase the remaining 49% of the advanced Gawler Craton gold Joint Venture including the Tunkillia gold project from AngloGold during the year. I am pleased to advise that our recent drilling at Tunkillia is starting to show promise. At the time of printing this report, an 18,000 metre reverse circulation drilling program is still underway. The Company is proposing to delineate a 400,000 ounce open pit gold resource, the first on its Gawler Craton tenements. The drilling will be completed before the end of this year, after which a technical report outlining the Tunkillia ore resource, grade, basic metallurgical characteristics and other technical issues will be completed. Mining and production proposals will come together to make up a Scoping Study to be presented in the first quarter of 2004. The Company anticipates that the Tunkillia resource may produce 50,000 to 70,000 ounces of gold per year over a 5 year minimum mine life. Helix aims to become a recognised gold producer within the next few years. Accordingly, Tunkillia is an important component in the Company’s proposed production strategy. Additional production is anticipated to come from the Company’s advanced gold projects such as Glenburgh, as well as through gold project acquisitions. Grass roots exploration for gold and PGM’s will be significantly reduced whilst the Company focuses on its proposed gold production aims. Helix’s reduction in regional exploration comes at a time when we believe that new technological breakthroughs are needed before further orebodies are discovered in Australia. Helix will ensure that its team maintains a close link with research institutions, whilst it is hoped that the Federal Government acknowledges the immediate requirement for R&D as a prelude to enticing companies back to grass roots exploration in Australia. In addition, the Federal Government must be able to offer far more incentives to the ordinary investor in order to encourage investment and support in the vital grass roots exploration sector. The Prosser Report of the House of Representatives Industry and Resource Committee makes 28 recommendations to the Government, which, if implemented, would facilitate fund raising and exploration. Last year, I outlined details of our Munni Munni PGM Project and the need to place this Project on hold whilst the downtrend in the palladium price continued. Unfortunately, the palladium metal price is still low, approximately US $205.00 an ounce at the time of writing this review, and the project remains on hold until better PGM prices occur. Difficult conditions, including low PGM prices also shelved the commencement of Australia’s other possible PGM mine at Panton Sill. Nevertheless, the Munni Munni Project remains a significant resource of metal in the ground, and reviews will be made, from time to time, on the projects viability. During the reporting period, the Company made a loss of $2.55 million essentially related to exploration expenditure. At the time of printing this report the Company also had cash reserves of $2.8 million and investments in other mining and exploration companies of $1.5 million. The Company must raise further working capital in the near future in order to continue the development of the Tunkillia Project, and to help fund any possible acquisitions. The Board looks forward to your continued support when funding requirements are finalized later this year. during the year. Those of you who attended last year’s Annual General Meeting will be aware that all Directors and senior management took a 25% reduction in salary. This year, the Remuneration Committee recommends that the management team should be granted new options at an average exercise price of $0.46. At the same time, existing options with an average exercise price of $1.00 will be cancelled. Your Board believes that the new options will provide the necessary incentives. We look forward to shareholders’ support for this proposal, full details of which can be perused in the accompanying Notice of Meeting. Finally, I would like to thank all shareholders for their support during this year and previous years, and I look forward to the Company’s new future as a gold mining company. Your faithfully E W J Tyler Chairman “Helix aims to become a recognised gold producer within the next few years.” I take this opportunity on behalf of all Directors to thank the staff for the continuation of their valuable contributions H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 3 REVIEW OF OPERATIONS – TECHNICAL & CORPORATE INTRODUCTION REVIEW OF PROJECTS Following a detailed review of its exploration and project portfolio, Helix made the significant strategic decision during the year to focus its resources on the short-to-medium term development of the Tunkillia Gold Project in South Australia, which was first discovered by the Company in 1996. This marks a significant change of operating philosophy for Helix after nearly 18 years as one of Australia’s most active exploration companies. The decision to concentrate on 100%-owned gold developments rather than seeking joint ventures to fund ongoing exploration – both at Tunkillia and potentially at Glenburgh in Western Australia – is aimed at achieving a near-term cash flow for Helix. The Group’s Platinum Group Metals (PGM) projects, including the Munni Munni PGM Project in Western Australia, represent a significant and valuable long-term asset for Helix. However, the establishment of a production base in gold is regarded as the most effective way of adding value to the Company in the short term and of funding future exploration activities. LAKE EVERARD – GAWLER CRATON, SOUTH AUSTRALIA The Lake Everard Gold Project is located 700 kilometres north west of Adelaide in South Australia’s Gawler Craton and comprises 2,500 square kilometres of tenements including the Lake Everard tenement, EL2697, which contains the Tunkillia gold deposit. Helix acquired the Project in 1996 to explore for gold in Mesoproterozoic geological settings in the Gawler Craton. The Tunkillia discovery, which was announced in late 1996, was one of the first gold discoveries in the Gawler Craton and the 20 square kilometre Tunkillia Prospect remains the largest robust gold- in-calcrete anomaly in the region. Subsequent exploration was carried out in joint venture, initially with Acacia Resources Limited and later with AngloGold Limited following its takeover of Acacia. MUNNI MUNNI 100% Helix Platinum Group Metals DARWIN KIMBERLEY 100% Helix Base Metals WEST PILBARA JV Helix/De Beers Diamonds GLENBURGH Helix 100% Archaean Au NARRACOOTA Helix JV Proterozoic Au GNAWEEDA Helix JV Archaean Au BARLEE 82.5% Helix Archaean Au WA PERRY CREEK Helix 100% Base Metals NT QLD MENZIES Helix JV Archaean Au & Ni Kalgoorlie MOUNT VENN Helix JV Platinum Group Metals MINIGWAL Helix JV Platinum Group Metals PERTH LOONGANA Helix JV’s Platinum Group Minerals LAKE EVERARD (INCL. TUNKILLIA) 100% Helix Proterozoic Au SA NSW SYDNEY MIDDLEBACK RANGES Helix/BHP Alliance Proterozoic Cu-Au EYRE PENINSULA 100% Helix Helix JV’s Proterozoic Cu-Au ADELAIDE VIC 0 500 kilometres TAS H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 4 REVIEW OF OPERATIONS – TECHNICAL & CORPORATE LAKE EVERARD continued In June 2003, Helix finalised the acquisition of AngloGold’s 49% interest in the Lake Everard Project, returning 100% ownership of the Project to Helix for the first time since 1998. The consideration comprised a $1 million up-front payment to AngloGold made up of $750,000 cash, 1.25 million fully paid Helix shares issued at 20 cents and 1.25 million options exercisable at 25 cents before November 2005. A further deferred payment of $500,000 will be made on delineation of a mineable resource of 350,000 ounces. Based on the results of an in-house review of the Project and a subsequent independent resource assessment and preliminary economic evaluation by Snowden Mining Industry Consultants Pty Ltd, Helix committed to a $1.5 million drilling program commencing in June 2003. In parallel with metallurgical testwork, geotechnical studies and hydrological studies, this is expected to lead to an updated resource estimate and the commencement of a Feasibility Study on the development of a commercial mining operation by the end of 2003. Geology & Resources The Lake Everard Project is located within the central part of the Gawler Craton along the western margin of the Gawler Range Volcanic Province. The Gawler Craton is broadly divided into three main geological units, Archaean crystalline basement, highly deformed Palaeoproterozoic metasediments and granites, and less deformed Mesoproterozoic volcanics, clastic sediments and granite. Almost all gold and copper mineralisation found in the Gawler Craton is directly associated with Mesoproterozoic magmatism, which explains Helix’s original focus on exploration within this geological environment. Basement rocks within the Lake Everard tenement rarely outcrop; they have been intensely weathered and are overlain by a thin veneer of sediments, representing a significant challenge to explorers. Only the use of modern aeromagnetic techniques and the skilful interpretation of data revealed the potential to exploration companies since the region was opened up to exploration in the early 1990s. Lake Everard Project Significant intersections outside Area 223 475000mE 480000mE 6550000mN 49m@0.7g/t 8m@1.8g/t Area 191 Extent of A223 Mineralisation 10ppb Calcrete Contour Main Resource Lodes Diamond or RC Drillhole RAB Drillhole 83m@0.6g/t Incl 4m@2.8g/t 30m@1.0g/t 3m@3.1 g/t 41m@1.5g/t Incl 10m@3.8g/t 6545000mN Area 223 Lake Everard Project Coober Pedy Port Augusta ADELAIDE SA 6550000mN 1m@69.8g/t 1m@61.0g/t 7m@5.31g/ 13m@1.97g/t 7m@2.64g/t 1m@9.61g/t 1m@8.20g/t 2m@10.3g/t 1m@25.8g/t 5m@3.49g/t 6545000mN L R 41m@1.5g/t Incl 10m@3.8g/t 475000mE 4m@5.25g/t 480000mE 0 1 kilometres Left: 3D model of Area 223 drill hole locations with mineralisation zones H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 5 REVIEW OF OPERATIONS – TECHNICAL & CORPORATE LAKE EVERARD continued To date, Helix and its joint venture partners have amassed an impressive geological database on the Lake Everard Project comprising than 11,000 surface geochemical samples, gravity, radiometrics and magnetic surveys, as well as 150,000 metres of RAB, 50,000 metres of RC and 3,000 metres of diamond drilling. Significant gold mineralisation has been intersected in a number of areas, with the bulk of previous drilling focused on Area 223, within the western demagnetised zone, and Area 191, within the eastern demagnetised zone. The mineralisation at Area 223, the original discovery zone, comprises a broad, flat lying supergene blanket at 50 metres depth overlying a series of up to six steeply dipping primary ore shoots trending sub-parallel to the regional shear trend. The Area 223 mineralisation, which is contained within three main mineralised zones, extends along strike for 1.6 kilometres, but has only been drilled in detail over the central 400-metre zone. Snowden Mining Industry Consultants Pty Ltd carried out an independent valuation of the Lake Everard Project as part of a valuation of the Helix Group’s mineral interests in May 2003. As part of this review, Snowden assessed the existing global resource estimate for the Tunkillia deposit. AngloGold and Acacia did not complete sufficient in-fill drilling to produce a JORC resource assessment for the Area 223 mineralisation. Snowden confirmed a global resource estimate for Tunkillia of 8.5 million tonnes at 2.3 g/t gold for 600,000 contained ounces (at a 1g/t cut-off ) and concluded that there was further potential to define new gold occurrences in proximity to the main mineralised zone. Preliminary economic evaluations indicated that this resource could underpin a viable gold project yielding 350,000 ounces of gold, or 60–70,000 ounces of gold production per annum over a 5 to 7 year period provided. Lake Everard Project - Area 223 Cross Section 111350mN L L L L R C R C R R C C 4 4 4 4 1 1 1 1 6 5 7 9 L R C 4 1 4 W BLEACHED ZONE 3m@1.2g/t 4m@1.8g/t 5m@1.4g/t 4m@1.7g/t -50m AUGEN GNEISS (TAG) 6m@6.5g/t 12m@1.8g/t incl. 1m@6.4g/t -100m 3m@1.6g/t -150m Current Drilling Previous Drilling +0.5g/t +1.0g/t 50 METRES 1m@7.8g/t 2m@4.0g/t 3m@3.2g/t 1m@11.4g/t D) 2m@3.1g/t A (D E K Y D E CIT A D L Y H P LITIC S) U (P R A E H S E RICIT E N O Z E S N Z) TIO E- A RIT A (C R O E L LT H C A 6m@2.2g/t 2m@1.5g/t E 3m@25.2g/t incl. 1m@72.7g/t 4m@2.1g/t 3m@1.5g/t 2m@2.1g/t 2m@1.5g/t 5m@2.3g/t 4m@2.4g/t 2m@1.6g/t 15m@1.3g/t 2m@4.1g/t 4m@1.7g/t FINE GRAINED GRANITE (FUG) ) D A M ( E K Y D C I F A M H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 6 REVIEW OF OPERATIONS – TECHNICAL & CORPORATE “The development of the Tunkillia Project represents a significant opportunity for Helix to establish a production and cash flow base within a relatively short time.” Lake Everard Project - Area 223 Drilling locations with mineralisation zones LAKE EVERARD continued 2003 Drilling Program In July 2003 Helix commenced a $1.5 million, two- stage drilling program at Tunkillia focusing on the three main mineralised zones, Northern, Central and Southern, that comprise the Area 223 mineralisation. This program was designed to produce the first-ever JORC resource calculation for the Area 223 mineralisation. Stage 1 of the drilling commenced on 10 July 2003, comprising 50 drill holes totalling 8,100 metres of reverse circulation (RC) drilling to a depth of 200 metres below surface. This program was very successful, with the first phase of drilling concentrating on the poorly drilled southern portion of the Central Zone mineralisation. The results indicated the presence of higher grade supergene mineralisation and successfully extended a number of the primary mineralised lodes to the south, while also indicating significantly better development of the western lodes than predicted by previous mineralisation models. The most significant results included 7 metres at 4.5 g/t and 1 metre at 11.2 g/t in LRC 384, 9 metres at 2.6 g/t and 2 metres at 5.0 g/t in LRC 382, 3 metres at 25.2g/t in LRC 414 and 6 metres at 6.5 g/t in LRC 417. Subsequent drilling successfully extended the Southern Zone of mineralisation a further 50 metres to the north, delineating a broad low-grade eastern lode up to 10 metres wide with a number of steeply dipping higher grade hangingwall lodes 1 to 2 metres wide. Significant gold results in this area included 7 metres at 1.7 g/t in LRC 395, 2 metres at 5.6 g/t and 1 metre at 15.4 g/t in LRC 398 and 1 metre at 11.6 g/t and 16 metres at 2.8 g/t in LRC 400. Drilling to the north of the Central Zone confirmed the existence of a new Northern Zone of mineralisation, Area 223 North, located some 200 metres north of the currently defined Central Zone. Significant results from this area included 29 metres at 4.3 g/t gold in LRC 403 (including 2 metres at 27.8 g/t and 1 metre at 29.7 g/t). Previous drilling by Acacia Resources in 1998 in this area had intersected 14 metres at 3.2 g/t 50 metres to the north of the northern boundary of the Northern Zone. Subsequent results from the northern end of the Central Zone mineralisation confirmed the existence of a previously untested, high-grade supergene gold zone at the northern end of the Central Zone mineralisation. LRC 388 drilled in this area intersected 11 metres at 3.5g/t gold while LRC 408 intersected 4 metres at 5.7 g/t from 24 metres depth. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 7 REVIEW OF OPERATIONS – TECHNICAL & CORPORATE LAKE EVERARD continued The following table summarises some of the significant results from drilling of the three mineralised zones at Area 223: Drillhole ID Central Zone LRC 381 LRC 382 LRC 384 LRC 385 LRC 387 LRC 388 LRC 389 LRC 390 LRC 391 LRC 406 LRC 407 LRC 408 LRC 414 LRC 415 LRC 416 LRC 417 LRC 418 easting mE northing mN from m interval m grade g/t 109945 109915 111300 111300 109855 111300 109995 111650 109965 110000 109970 111650 111750 including 111750 109940 111750 109910 109980 109875 109985 109985 109895 111750 111450 including 111500 including 111550 including 111350 including 111350 including 109865 111350 109925 111350 including 109900 111700 118 157 165 121 182 89 93 123 64 67 102 107 93 98 117 180 73 73 140 160 198 198 24 72 74 58 60 110 118 137 167 146 153 184 204 88 88 127 148 113 121 157 167 7 2 9 1 7 1 2 7 17 11 1 7 1 1 1 4 6 1 13 1 5 1 4 8 1 3 1 12 1 1 2 2 3 1 2 6 1 4 15 1 8 2 1 2.1 5.0 2.6 11.2 4.5 5.3 4.1 2.1 2.7 3.5 9.7 1.0 7.1 8.6 6.6 3.4 3.6 10.1 1.5 3.4 3.6 11.2 5.7* 7.6 12.8 25.2 72.7 1.8 6.4 7.8 4.1 4.0 3.2 11.4 3.1 6.5 17.5 2.4 1.3 3.2 2.0 11.7 3.2 H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 8 REVIEW OF OPERATIONS – TECHNICAL & CORPORATE LAKE EVERARD continued Drillhole ID Southern Zone LRC 395 LRC 398 LRC 399 LRC 400 LRC 401 Northern Zone LRC 403 LRC 410 LRC 411 LRC 413 easting mE northing mN from m interval m grade g/t 109765 110750 109870 110800 109840 110800 109810 110800 109780 including 110800 109970 109980 109950 109890 112050 including and 112150 including 112150 including 112150 including 187 207 98 113 106 136 155 111 146 181 181 105 162 198 57 63 84 66 70 141 144 114 115 2 7 2 1 2 1 1 1 3 16 2 2 3 4 29 2 1 8 1 5 2 6 1 6.8 1.7 5.6 15.4 4.9 4.1 4.8 11.6 3.3 2.8 8.4 4.2 3.6 3.1 4.3 27.8 29.7 2.5 8.5 6.2 14.0 3.7 13.7 All holes drilled at 60 degrees towards grid east. Assays by Aqua-Regia, AAS utilising 1 metre riffle split samples. Assay intervals reported are > 1g/t with a maximum of 3 consecutive metres of internal dilution. * 4 metre composite sample Future Program The results of the Stage 1 2003 drilling program have significantly upgraded the potential for existing resources at the Tunkillia Project to be increased. The structure and timing of the Stage 2 drilling will be adjusted in light of recent exploration success, with a particular focus on the new discoveries made in the Area 223 North zone. The completion of the current drilling programs at Tunkillia is expected to lead to a resource upgrade announcement towards the end of the fourth Quarter of 2003. This will lay the foundation for a 6–8 month Feasibility Study, which the Company is aiming to commence by early 2004. On this timetable, Helix is confident that it will be in a position to make a decision to mine at Tunkillia within 12 months. The development of the Tunkillia Project represents a significant opportunity for Helix to establish a production and cash flow base within a relatively short time, adding considerable value to the Company and enabling it to fund future exploration activities without recourse to the equity market. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 9 REVIEW OF OPERATIONS – TECHNICAL & CORPORATE GLENBURGH GOLD PROJECT – WESTERN AUSTRALIA The Glenburgh Gold Project is located 300 kilometres east of Carnarvon in the Gascoyne Region, where many of Western Australia’s earliest gold discoveries were made. The Project was one of Helix’s early discoveries, with significant gold mineralisation first identified in 1994 and subsequent drilling delineating an 18 by 2 kilometre mineralised zone. Drilling was completed to sufficient density at this stage to enable the calculation of an Inferred Resource of 1.44 million tonnes at 1.93 g/t for 90,000 contained ounces within the Apollo, Zone 102 and Zone 126 Prospects. Subsequent reviews by Helix focused on the high-grade component of this resource, the bulk of which is contained within a plunging near-surface shoot at Apollo grading 6–8 g/t gold. During the year, further work confirmed the potential of the Glenburgh Project to evolve as a low tonnage, high-grade gold project with near-term development potential. During late 2002, Helix assessed the high-grade component of the resource using a 4 g/t cut-off incorporating the results of a modelled extension of the Apollo resource. This study indicated the potential for a high-grade resource in the order of 500,000 tonnes at 8 g/t, which could be exploited underground. A program of reverse circulation (RC) drilling conducted in March 2003 successfully extended the Apollo mineralisation a further 100 metres along strike to the west and delineated some of the highest grade mineralisation found to date at the project. Significantly, the extensions appear to be offset by the Victoria Fault, an important regional geological feature which may have truncated the earlier resource boundaries. Drill hole VRC 294, located approximately 100 metres west of the Apollo zone, intersected 6 metres at 20.6 g/t (including 2 metres at 51.1 g/t) from 74 metres down hole; drill hole VRC 292, located between VRC 294 and Apollo, intersected 4 metres at 6.3 g/t. Glenburgh Project RC Drill hole locations and vacuum contours New RC Drilling Previous RC Drilling 410000mE 412000mE 7192000mN WA Broome PERTH Kalgoorlie H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 10 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 REVIEW OF OPERATIONS – TECHNICAL & CORPORATE GLENBURGH GOLD PROJECT continued These results demonstrated the excellent potential to increase the Apollo resource (57,000 ounces at 2.1 g/t) by continuing to drill the shallow westerly plunge of the high-grade mineralisation. In addition, drilling at other prospects confirmed the potential to discover further mineralisation and resulted in the development of a new geological model for the Glenburgh Project. Work completed to date has confirmed the potential to delineate a high-grade, near-surface resources of 300,000–400,000 ounces which could underpin a viable standalone mining and processing operation. A single drill hole completed at the Icon Prospect, 600 metres west of Apollo, to test the down plunge potential of previously drilled shallow mineralisation intersected 5 metres at 1.5 g/t from 139 metres and 1 metre at 5.7 g/t from 146 metres. A single RC hole drilled at the Mustang anomaly intersected a broad zone of low-grade gold mineralisation. Following is a summary of recent significant drilling results: Hole** VRC292 11545 9970 East (m) North (m) From (m) Result* (g/t Au) Prospect Apollo Apollo Apollo Apollo Apollo Icon VRC293 11545 10035 VRC294 11500 VRC295 11500 VRC299 11450 VRC297 10900 9985 including 10025 10007 10200 57 97 139 143 186 196 74 75 84 136 162 77 80 132 139 146 1m @ 3.3 4m @ 6.3 1m @ 3.1 1m @ 1.6 2m @ 1.4 2m @ 1.4 (EOH) 6m @ 20.5 2m @ 51.1 1m @ 2.8 1m @ 3.4 3m @ 2.9 1m @ 1.2 1m @ 1.3 4m @ 1.3 5m @ 1.5 1m @ 5.7 * All results based on 1 metre riffle split samples with analysis by Pb sulphide fire assay. ** All holes dip 60º towards grid south A subsequent program of 3,034 metres of vacuum drilling was completed over the Victoria Bore grid during the June 2003 Quarter to obtain further surface geochemical gold information along strike from the Apollo, Tuxedo and Icon mineralisation. More than of 1,000 holes were completed on 20 metre spacings between 50 and 200 metres apart to collect data from the Apollo, Tuxedo and Icon mineralisation. This drilling resulted in the discovery of three new gold anomalies at the Mustang prospect extending east over a distance of 1.5 kilometres, along strike from the Apollo mineralisation. These anomalies recorded peak gold values of up to 3 g/t within coherent 100ppb anomalism. Geochemical results indicate that the Tuxedo anomaly may represent the faulted extension of the Apollo resource. Future Programs A further RC program totalling 2,000 metres is planned to test the Mustang anomaly and the faulted down plunge continuation of the Apollo resource, although the timing of this drilling program depends on Helix’s exploration commitments at the Tunkillia Gold Project which remains the Company’s first priority. The exploration success achieved at the Glenburgh Project during the year has significantly upgraded its status within Helix’s project portfolio. The Company’s objective is to fast-track exploration to increase the high-grade resource base with a view to developing a second production centre for the Company. Work completed to date has confirmed the potential to delineate a high-grade, near-surface resources of 300,000–400,000 ounces which could underpin a viable standalone mining and processing operation. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 11 REVIEW OF OPERATIONS – TECHNICAL & CORPORATE OTHER PROJECTS The Barlee Gold Project (Helix 100%), located 200 kilometres north of Southern Cross, and the Gnaweeda Gold and Base Metals Project (Helix 90%), located 30 kilometres north-east of Meekatharra, are significant regional exploration plays. During the year, Helix completed a 1,400 metre RC drilling program targeting the Halley’s – Mondie Rocks anomaly at Barlee to explore for primary gold mineralisation below previously identified supergene gold. Results including intersections of 12 metres at 2.12 g/t and 12 metres at 2.45 g/t were returned, defining the source of the supergene mineralisation and providing a good geological and structural model for the region. After completing a low altitude, high-resolution aeromagnetic survey in the December 2002 Quarter to define new drilling targets, Helix is seeking a joint venture partner to advance this project to the next stage, given its focus on the Tunkillia Project. Joint venture opportunities are also being sought for the Gnaweeda Project, which covers the entire Gnaweeda greenstone belt and includes a number of historic and recently identified gold prospects. A 2,500 metre RAB drilling program was completed at the Carapee Copper Gold Project (Helix 80%, 90% and 100% in different EL’s and ELA’s) in South Australia. Apart from significant geochemical silver anomalism, gold and base metal analyses were low and no further work is planned for this project. MUNNI MUNNI PROJECT – WESTERN AUSTRALIA The Munni Munni Project is located 45 kilometres south of Karratha in the Pilbara region of Western Australia. The Munni Munni Complex is a layered mafic and ultramafic intrusion measuring 25 kilometres in length and 10 kilometres in width. Following exploration expenditure to date of more than $12 million, a substantial Platinum Group Metals (PGM) resource has been defined at Munni Munni, predominantly within the Central Zone of the Ferguson Reef. Most of the recent expenditure, $8.5 million in total, was sole funded by Lonmin plc under a joint venture agreement announced in May 2001. In March 2003, after completing all its initial exploration and development expenditure commitments, Lonmin elected to withdraw from the joint venture and also advised Helix that it would sell its 11.8% shareholding in the Company (see Corporate Review on Page 12). This decision was reached after a detailed review of the Project concluded that, because of the high palladium component of the resource, it did not represent a viable development opportunity at current low palladium prices. With a defined grade of 2.9 g/t and high proportion of palladium relative to platinum, typical of Australian PGM projects, Munni Munni is reliant on a strong palladium price. When the joint venture was formed in May 2001 the price of palladium, which is predominantly used in automobile catalytic converters, was $US600 an ounce and increased as high as US$1,100 an ounce as car manufactured stockpiled large amounts of the metal. Palladium prices have since fallen to around US$200 an ounce in 2003 As outlined in last year’s Annual Report, the expanded regional exploration strategy targeting increases in the existing Munni Munni resource inventory and higher-grade extensions of the Ferguson Reef outside of the Central Zone resource did not yield conclusive results. Nonetheless, exploration work completed over the past two years has resulted in a significant increase in the PGM resource base at Munni Munni within the Central Zone and Northern Domain mineralisation. This work has also confirmed the potential to discover additional resources. The current resource (estimated by SRK Consulting Engineers and independently confirmed by Snowden Mining Industry Consultants Pty Ltd) totals 24 million tonnes grading 2.9 g/t platinum, palladium, rhodium and gold containing 2.1 million ounces of precious metals. Included within this resource is a high- grade core comprising 7.8 million tonnes at 3.3 g/t 3E for 815,000 ounces of precious metals. This represents a substantial PGM resource and a significant asset for the Company. Since the withdrawal of Lonmin from the Project in March 2003, Helix has received expressions of interest from a number of major international resource companies in the possible future joint venture opportunities. The Company will maintain a watching brief on the world platinum and palladium market with a view to keeping the viability of the Munni Munni Project under continual review. Most analysts are forecasting a moderate recovery in palladium prices over the next 12–18 months as inventories are reduced and the differential with higher platinum prices is eliminated. WEST PILBARA JOINT VENTURE – WESTERN AUSTRALIA During the June 2003 Quarter, Helix signed a joint venture agreement with De Beers Australia Exploration Limited covering 11 exploration licences and applications – a total area of 2,000 square kilometres – surrounding the Munni Munni PGM project. The Joint Venture excludes the Mining Leases covering the Munni Munni PGM resources. Under the Joint Venture, De Beers has the right to earn 51% in any new diamond discoveries by spending $3 million on exploration within the next three years. Helix will then have the option to participate in further exploration or development by contributing on a pro rata basis, 49%, or further diluting to a minimum interest of 25%. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 12 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 REVIEW OF OPERATIONS – TECHNICAL & CORPORATE WEST PILBARA JOINT VENTURE continued CORPORATE & FINANCIAL REVIEW De Beers has commenced regional diamond sampling programs and has indicated that it rates the prospectivity of this region for diamond exploration very highly within its global exploration portfolio. The area is regarded as one of the last frontiers for diamond exploration in Australia. MT VENN PROJECT The Mt Venn Project is located in Western Australia’s Eastern Goldfields area and covers a shallow east dipping differentiated pyroxenite and gabbro sill within the Jutson’s Rocks greenstone belt. The tenements cover outcrop to shallow sand covered areas of sill where previous exploration during the 1960’s ‘nickel boom’ delineated a series of massive sulphide horizons which are considered highly prospective for PGM and Nickel mineralisation. The tenements are located within the Cosmo Newberry Aboriginal reserve, and native title objections have been lodged against them that are yet to enter the Native Title system. Once access to the reserve is obtained, the Mt Venn Project represents a promising PGM and Nickel exploration opportunity. LOONGANA PROJECT The Loongana Project is located in Western Australia’s Eucla Basin, approximately 475 kilometres east of Kalgoorlie and 30 kilometres north of the Trans-Australia Rail Line. The Project was identified by Helix as a promising PGM exploration opportunity because of the presence of a large geophysical anomaly within a large layered mafic/ultramafic complex. The anomaly is some 100 kilometres long and up to 15 kilometres wide at its widest point, about three times the size of the Munni Munni complex. Two diamond drill holes were completed at Loongana during the year which intersected cumulate gabbros, pyroxenites and dunite, confirming the geophysical interpretation of the anomaly and its prospectivity for PGM deposits. Possible exploration models include both the Bushveld style layered mafic/ultramafic hosted PGM targets and Jinchuan/Voisey’s Bay style nickel-copper-PGM style mineralisation. OTHER PROJECTS AND SUMMARY Helix holds tenure over a number of other PGM projects including several grass roots projects in Western Australia and the basement mineralisation rights to the Fifield Project in New South Wales. The Company is negotiating with the receivers of Black Range Minerals NL to regain title to the Exporation Licence. The Company’s extensive portfolio of Australian PGM projects constitutes a significant asset. While Helix will maintain its focus on developing its 100%-owned gold projects in Western Australia and South Australia, the Company will continue to review opportunities to consolidate and realise value from its PGM portfolio. In October 2002, Helix sold its 8% shareholding in the Australian Stock Exchange-listed Platinum Australia Limited, for A$1.8 million. This represented a very successful investment for Helix, realising a profit of approximately $1.5 million on the original investment. The funds raised provided a significant boost to Helix’s working capital position during the year. In November 2002, the Company announced a Rights Issue of Options to existing shareholders to replace expired October 2002 Options. A total of 16,841,820 Options exercisable at 25 cents and expiring on 30 November 2005 were offered to shareholders on a one-for-three basis at 1 cent per option. Of these, 12,860,310 were taken up via entitlements and shortfall applications, raising A$128,603 in additional working capital. The Company also announced a Share Purchase Plan (SPP) during the year, giving shareholders the opportunity to increase their holdings and their exposure to Helix’s gold development activities. The SPP closed on 25 July 2003, raising a total of $826,000. These funds were allocated to further exploration of the Tunkillia and Glenburgh Gold Projects. Following Lonmin’s withdrawal from the Munni Munni Joint Venture, Helix was advised of its intention to dispose of its 11.8% shareholding in the Company (6 million shares), which had been acquired through a share placement in 2001 at $1.30 a share. While the Board did consider the opportunity to buy back the Lonmin shareholding at 19 cents a share, subject to shareholder approval, this proposed buy-back did not proceed. This decision was made after reviewing the Company’s commitments in its gold exploration and development programs. The cancellation of the buy-back enabled Helix to focus its available cash resources on the drilling program at Tunkillia without a requirement to raise additional equity funding. During August 2003, the entire Lonmin holding was sold to a range of Australian investors. This represents a positive outcome for the Company and has resulted in the introduction of some important new long-term shareholders to Helix. As at the date of this report, Helix had cash of $2.8 million as well as a portfolio of liquid investments totalling $1.5 million. This includes its 12% stake in gold explorer Diamond Ventures NL and 1.8% stake in the industrial company Imdex Limited, both listed on the Australian Stock Exchange. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 13 CORPORATE GOVERNANCE The Board of Directors of Helix Resources Limited is responsible for the corporate governance of the Company. The Board monitors the business affairs of Helix Resources Limited on behalf of the shareholders by whom they are elected and to whom they are accountable. The Board of Directors acknowledge the Principals of Good Corporate Governance and Best Practice Recommendations set by the Australian Stock Exchange (“ASX”) Corporate Governance Council. However, in view of the Company’s size and extent and nature of operations, full adoption of the best practice recommendations is currently not practicable. The Board will continue to work towards full adoption of the recommendations in line with the growth and development of the Company in the years ahead. A summary of current corporate governance practices adopted by the Board is as follows: COMPOSITION OF THE BOARD The composition of the Board is determined in accordance with the following principals and guidelines: • The Board shall comprise at least 3 Directors, increasing where additional expertise is considered desirable in certain areas; and • Directors may bring characteristics that allow a mix of qualifications, skills and experience. The primary responsibilities of the Board include: • The approval of the annual and half-year financial report; • The establishment of corporate strategy and to continually monitor strategic development; • The review and adoption of annual budgets for the financial performance of the Company and monitoring the results on a quarterly basis; • To establish written policies and procedures to ensure compliance with the ASX Listing Rules regarding continuous disclosure; • Reviewing and ratifying systems of risk management and internal compliance and control, codes of conduct and legal compliance; • To access potential investment opportunities for the Company. AUDIT COMMITTEE The audit committee was established in 1996 and comprises of non-executive directors appointed by the Board, being Mr. B E Wauchope and Mr. I K Macpherson, and with regular attendance by the Chief Financial Officer at the request of the audit committee Meetings of the committee are usually held in each year and at any other time as requested by a member of the committee or the external auditors. The primary function of the committee is to assist the Board in fulfilling its responsibilities for the Company’s financial reporting and external reporting and ensuring all accounting reports are prepared in accordance with the appropriate accounting standards and statutory requirements. In addition, it reviews the performance of the auditors and makes any recommendations the committee feels necessary. INDEPENDENT PROFESSIONAL ADVICE In fulfilling their duties, each Director has the right to seek independent professional advice at the Company’s expense. Prior approval of the Chairman is required, but this will not be unreasonably withheld. REMUNERATION COMMITTEE The remuneration committee was established in 1996 and comprises of non-executive directors, being Messrs Tyler, Macpherson and Wauchope, appointed by the Board. The aims of the committee are to maintain a remuneration policy, which ensures the remuneration package of senior executives properly reflects their duties and responsibilities, and to attract and motivate senior executives of the quality required. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 14 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 CORPORATE GOVERNANCE RISK MANAGEMENT The Board is responsible for the company’s system of internal controls. The Board is responsible for establishing and implementing policies on risk management. Specific areas of risk, which are identified, will be regularly considered at Board Meetings including foreign currency and commodity price fluctuations, industry trends, performance of activities, human resources, the environment and continuous disclosure obligations. ENVIRONMENT AND SAFETY The Company is committed to ensuring that sound environmental management and safety practices are carried out in its mining and exploration activities and in compliance with the relevant statutory requirements relating to the environment. ETHICAL STANDARDS The Board acknowledges the need for and continued maintenance of a high standard of corporate governance practice and ethical conduct by all Directors and employees. COMMUNICATION TO SHAREHOLDERS The Board of Directors aims to ensure that the shareholders are informed of all information necessary to assess the performance of the Directors. Information is communicated to the shareholders through: • The annual report which is distributed to all shareholders; • The half-yearly report lodged with the ASX; • The annual general meeting and other meetings so called to obtain approval for board action as appropriate; and • Quarterly reports and other announcements made by the Company to the ASX under continuous disclosure requirements. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 15 DIRECTORS’ REPORT In respect of the financial year ended 30 June 2003, the Directors of Helix Resources Limited submit the financial report. In order to comply with the provisions of the Corporations Act 2001, the Director’s report as follows: DIRECTORS The following persons held office as Directors of Helix Resources Limited during or since the end of the financial period: Ewen W J Tyler AM BSc (Hons), FAusIMM, FAIM, MIMM, CPGeo, CEng Chairman – Non-Executive Director Appointed 23 January 1996 Mr Tyler is a Geologist with more than 50 years experience in the mining and exploration industry in Australia, Africa and the United Kingdom. Mr Tyler is currently Chairman of Lion Selection Group Limited and Striker Resources NL. Robert W Mosig MSc, FAusIMM Managing Director – Executive Director Appointed 1 July 1985 Mr Mosig is a Geologist with over 25 years experience in platinum group metals, gold and diamond exploration within Australasia. Anthony R Martin BSc (Hons), MAusIMM Director Exploration – Executive Director Appointed 20 July 1998 Mr Martin is a Geologist with over 15 years experience in the mining and exploration industry in Australia. Ian K Macpherson Bcom, CA Non-Executive Director Appointed 26 August 1985 Mr Macpherson is a Chartered Accountant with over 25 years experience in the resources, financial and corporate advisory industries. He is a Director of Ord Group Pty Ltd, Chartered Accountants, a Non-Executive Chairman of Visiomed Group Limited and Non-Executive Director of Navigator Resources Limited. Bryce E Wauchope FCA, FAICD Non-Executive Director Appointed 10 March 1993 Mr Wauchope is a member of the Remuneration and Audit Committees. He has extensive experience in the mining, services and finance industries. Former roles include Finance Director of Renision Goldfields Consolidated Limited and Chairman of Bank of America Australia Limited. He is also a former President of the Finance Executives International of Australia. PRINCIPAL ACTIVITIES The principal activity of the economic entity constituted by Helix Resources Limited and the entities it controlled during the year consisted of platinum group metals (PGM), gold and mineral exploration. There has been no significant change in the nature of these activities during the year. FINANCIAL RESULTS The net consolidated profit (loss) of the economic entity for the financial period, after provision for income tax was $(2,551,319),[2002: $(2,674,929)]. DIVIDENDS No dividend has been paid since the end of the previous financial year and no dividend is recommended for the current period. REVIEW OF OPERATIONS The Company acquired the balance of the Tunkillia gold project from AngloGold Australia Limited and is currently undertaking a resource definition drilling program. A full review of operations can be found on page 3 of this Annual Report. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 16 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 DIRECTORS’ REPORT SIGNIFICANT CHANGES IN STATE OF AFFAIRS In the opinion of the Directors there were no significant changes in the state of affairs of the economic entity that occurred during the period under review. AFTER BALANCE DATE EVENTS On 9 July 2003 Helix Resources Ltd acquired the remaining 49% interest of the Tunkillia Gold Project from AngloGold Ltd. Terms of the acquisition comprise of $1M upfront which is made of $750,000 cash, 1.25M fully paid Helix shares at 20 cents and 1.25M options exercisable at $0.25 before 30 Nov 2005 and a deferred payment of $500,000. The net affect of this transaction results in the reduction of the cash balance by $750,000. LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS Likely developments in the operations of the economic entity are included elsewhere in this Annual Report. Disclosure of any further information has not been included in this report because, in the reasonable opinion of the Directors, to do so would be likely to prejudice the business activities of the economic entity. DIRECTORS’ INTERESTS Director R W Mosig E W J Tyler A R Martin I K Macpherson** B E Wauchope** *Fully Paid Ordinary Shares 2,246,957 51,250 210,571 211,000 555,002 Listed Options 738,571 6,667 59,776 70,333 157,501 Staff Options a1,600,000# – b950,000# – – * Directors’ interests in ordinary shares of the parent entity are shown at the date of this Directors’ Report. ** Member of the Audit Committee # See note below. In accordance with the provisions of the Employee Share Option Plan, executives and employees are entitled to subscribe for ordinary shares on the terms agreed to by the Shareholders at a meeting held on 14 May 2001 in respect of the 2005 options. Further details are disclosed below. Director aRobert W Mosig bAnthony R Martin No. of Options Exercise Price Exercise Date 366,667* 366,666* 366,666* 166,666 166,667 166,667 183,334* 183,333* 183,333* 133,334 133,333 133,333 $0.80* $1.00* $1.20* $0.42 $0.46 $0.50 $0.80* $1.00* $1.20* $0.42 $0.46 $0.50 14.05.2005 14.05.2005 14.05.2005 29.03.2009 29.03.2009 29.03.2009 14.05.2005 14.05.2005 14.05.2005 29.03.2009 29.03.2009 29.03.2009 * To be cancelled after the next AGM to be held on 10 November 2003. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 17 DIRECTORS’ REPORT DIRECTORS’ AND EXECUTIVES’ REMUNERATION Non-executive Directors Non-executive Directors are remunerated by fees determined by the Board within the aggregate Directors’ fee pool limit of $150,000 approved by shareholders in April 1996. The pool limit is not at present fully utilised. In setting the fees, account is taken of the responsibilities inherent in the stewardship of the Company and the demands made of Directors in the discharge of their responsibilities. Advice is taken from independent consultancy sources to ensure remuneration accords with market practice. Income received, or due and receivable from the parent entity and related entities by Non-executive Directors of the parent entity for the year ended 30 June 2003 was: Name E W J Tyler (Chairman) I K Macpherson B E Wauchope Retirement Benefits $ Superannuation Guarantee Charge $ – – – – 3,000 3,000 Total Cost $ 56,175 35,109 35,109 Fees $ 56,175 32,109 32,109 Note: Remuneration for Executive Directors is disclosed as part of remuneration details for Executive Officers, please refer to note 17 for additional disclosures and comparative figures. Executive Officers The Company’s Executive Officers’ remuneration policy is set to ensure that remuneration packages properly reflect the duties and responsibilities of the senior executives and are sufficient to attract, retain and motivate personnel of the requisite quality. The policy is administered by the Remuneration Committee, which is composed of Non-executive Directors. Details of the nature and amount of each element of the emolument for the company and consolidated entity of each of the Executive Officers receiving the highest emolument for the year ended 30 June 2003 were: Name and Position R W Mosig, Managing Director and Chief Executive Officer A R Martin, Exploration Director and Exploration Manager R E M Vittino, Chief Financial Officer and Company Secretary OFFICERS’ INDEMNITY AND INSURANCE Salary $ 271,500 167,550 158,257 Superannuation Contributions $ 16,000 10,519 12,000 Total Cost $ 287,500 178,069 170,257 During the year the Company paid an insurance premium to insure the Directors and Officers of the Company and related bodies corporate. The Officers of the Company covered by the insurance policy include the Directors named in this report. The Directors’ and Officers’ Liability insurance provides cover against all costs and expenses that may be incurred in defending civil or criminal proceedings that fall within the scope of the indemnity and that may be brought against the officers in their capacity as officers of the Company or a related body corporate. The insurance policy does not contain details of the premium paid in respect of individual officers of the Company. Disclosure of the nature of the liability cover and the amount of the premium is subject to a confidentiality clause under the insurance policy. The Company has entered into an agreement with the Directors and Officers to indemnify them against any claim and related expenses, which arise as a result of work completed in their respective capacities. The Company has not otherwise, during or since the financial year indemnified or agreed to indemnify an officer or auditor of the Company or of any related body corporate against a liability incurred as such an officer or auditor. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 18 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 DIRECTORS’ REPORT ENVIRONMENTAL REGULATIONS The economic entity is subject to environmental regulations under laws of the Commonwealth and State. The economic entity has a policy of complying with its environmental performance obligations and at the date of this report, is not aware of any breach of such regulations. MEETINGS OF DIRECTORS The number of meetings held during the year by Company Directors (including meetings of committees of Directors) and the number of those meetings attended by each Director was: E W J Tyler R W Mosig A R Martin I K Macpherson B E Wauchope Board of Directors’ Meetings Remuneration Committee Meetings Audit Committee Meetings Held* Attended Held* Attended Held Attended 8 8 8 8 8 8 8 8 8 8 1 – – 1 1 1 – – 1 1 – – – 2 2 – – – 2 2 * Reflects the number of meetings held during the time that the Director held office during the year. Dated at Perth this 25th day of September 2003. This report is made and signed in accordance with a resolution of Directors made pursuant to s.298(2) of the Corporations Act 2001. On behalf of the Directors Robert W Mosig Managing Director H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 19 INDEPENDENT AUDIT REPORT TO THE MEMBERS OF HELIX RESOURCES LIMITED Scope The financial report and directors’ responsibility The financial report comprises the statement of financial position, statement of financial performance, statement of cashflows, accompanying notes to the financial statements, and the directors’ declaration for both Helix Resources Limited (the company) and the consolidated entity, for the financial year ended 30 June 2003 as set out on pages 8 to 25. The consolidated entity comprises the company and the entities it controlled at the year’s end or from time to time during the financial year. The directors of the company are responsible for the preparation and true and fair presentation of the financial report in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report. Audit approach We have conducted an independent audit of the financial report in order to express an opinion on it to the members of the company. Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal controls, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected. We performed procedures to form an opinion whether, in all material respects, the financial report is presented fairly in accordance with the Corporations Act 2001 and Accounting Standards and other mandatory professional reporting requirements in Australia so as to present a view which is consistent with our understanding of the company’s and the consolidated entity’s financial position, and performance as represented by the results of their operations and their cash flows. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial report, and the evaluation of accounting policies and significant accounting estimates made by the directors. While we considered the effectiveness of management’s internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls. The audit opinion expressed in this report has been formed on the above basis. Independence In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001. Audit Opinion In our opinion, the financial report of Helix Resources Limited is in accordance with: (a) the Corporations Act 2001, including: (i) giving a true and fair view of the company’s and consolidated entity’s financial position as at 30 June 2003 and of their performance for the year ended on that date; and (ii) complying with Accounting Standards in Australia and the Corporations Regulations 2001; and (b) other mandatory professional reporting requirements in Australia. DELOITTE TOUCHE TOHMATSU K F Jones Partner Chartered Accountants Perth, 30 September 2003 The liability of Deloitte Touche Tohmatsu is limited by, and to the extent of, the Accountants’ Scheme under the Professional Standards Act 1994 (NSW). H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 20 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 DIRECTORS’ DECL ARATION The Directors declare that: a) The attached financial statements and notes thereto comply with Accounting Standards; b) The attached financial statements and notes thereto give a true and fair view of the financial position and performance of the Company and the consolidated entity; c) d) In the Directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001; and In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of the Directors made pursuant to s.295(5) of the Corporations Act 2001. On behalf of the Directors Robert W Mosig Managing Director Signed at Perth this 25th day of September 2003 H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 21 STATEMENT OF FINANCIAL POSITION AS AT 30 JUN E 2 003 Current Assets Cash assets Receivables Other Total Current Assets Non-Current Assets Other financial assets Property, plant & equipment Mineral interests Other Total Non-Current Assets Total Assets Current Liabilities Payables Provisions Total Current Liabilities Non Current Liabilities Provisions Total Non Current Liabilities Total Liabilities Net Assets Equity Contributed Equity Reserves Accumulated Losses Total Equity CONSOLIDATED COMPANY Note 2003 $ 2002 $ 2003 $ 2002 $ 2 3 5 4 6 7 5 8 9 9 2,377,662 1,022,506 53,422 538,356 4,571,065 47,555 2,377,660 1,022,506 53,422 538,354 4,571,065 47,555 3,453,590 5,156,976 3,453,588 5,156,974 937,283 190,565 3,250,391 167,834 938,208 190,565 3,251,316 167,834 10,423,932 9,095,654 10,423,932 9,095,654 348,445 333,967 348,445 333,967 11,900,225 12,847,846 11,901,150 12,848,771 15,353,815 18,004,822 15,354,738 18,005,745 170,381 50,175 293,686 77,479 170,381 50,175 293,686 77,479 220,556 371,165 220,556 371,165 364,658 374,842 364,658 374,842 364,658 585,214 374,842 746,007 364,658 585,214 374,842 746,007 $14,768,601 $17,258,815 $14,769,524 $17,259,738 10 11 12 39,018,205 38,889,600 39,018,205 38,889,600 190,606 258,106 490,606 558,106 (24,440,210) (21,888,891) (24,739,287) (22,187,968) $14,768,601 $17,258,815 $14,769,524 $17,259,738 Notes to the financial statements are included on pages 24 to 38. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 22 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 STATEMENT OF FINANCIAL PERFORMANCE FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 Revenue from operating activities Proceeds from sale of investments Write down of investment Depreciation Exploration and evaluation expenditure recoverable amount adjustment Receivables – controlled entity doubtful debt expense Non-Executive Directors’ retirement provision Legal Expenses and Professional Services Consultancy fees Public Relations expenses Travel and Accommodation expenses Rental expenses Employee benefits expense Directors’ Fees Written Down Value of disposal – Investment in Platinum Australia Other expenses from ordinary activities Loss Attributable to Members of the Parent Entity Income tax expense relating to ordinary activities Net Profit (Loss) /Total Changes in Equity Other than those Resulting from Transactions with Owners as Owners Earnings per share Basic (cents per share) Diluted (cents per share) 12 18 21 21 Notes to the financial statements are included on pages 24 to 38. CONSOLIDATED COMPANY Note 13 2003 $ 257,060 1,759,507 (282,608) (47,251) 2002 $ 302,423 – – (53,854) 2003 $ 257,060 1,759,507 (282,608) (47,251) (978,468) (1,158,528) (979,278) – – (167,215) (112,641) (35,902) (139,106) (69,194) (497,077) (126,394) (810) (361,150) (123,995) (182,154) (108,302) (213,838) (112,200) (470,222) (144,450) – – (167,215) (112,641) (35,902) (139,106) (69,194) (497,077) (126,394) 2002 $ 302,423 – – (53,854) (621,257) (538,081) (361,150) (123,995) (182,154) (108,302) (213,838) (112,200) (470,222) (144,450) (1,962,780) – (1,962,780) – (149,250) (47,849) (148,440) (47,849) (2,551,319) (2,674,929) (2,551,319) (2,674,929) – – – – $(2,551,319) $(2,674,929) $(2,551,319) $(2,674,929) (5.0) (5.0) (5.3) (5.3) H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 23 STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 Cash Flow From Operating Activities Payments to suppliers and employees Interest received Other receipts CONSOLIDATED COMPANY Note 2003 $ 2002 $ 2003 $ 2002 $ (1,546,309) (1,075,960) (1,546,309) (1,113,231) 245,912 34,107 306,438 14,063 245,912 34,107 306,438 14,063 Net cash used in operating activities 2(b) (1,266,290) (755,459) (1,266,290) (792,730) Cash Flow From Investing Activities Payments for capitalised exploration & evaluation expenditure Payment for property, plant & equipment Payments for shares – listed companies Proceeds from sale of shares Proceeds from sale of equipment Proceeds/(Payments) for security deposits Proceeds/(Payments) for bills of exchange Net cash provide by/(used in) investing activities Cash Flow From Financing Activities Proceeds from issue of shares/options Net cash provided by Financing Activities (2,307,556) (1,886,364) (2,307,556) (1,849,093) (9,041) – 1,759,507 – (14,478) 3,548,559 2,976,991 128,605 128,605 (115,036) (135,000) (9,041) – – 1,759,507 52,110 (13,783) – (14,478) (115,036) (135,000) – 52,110 (13,783) 1,486,157 3,548,559 1,486,157 (611,916) 2,976,991 (574,645) – – 128,605 128,605 – – Net increase/(decrease) in cash held 1,839,306 (1,367,375) 1,839,306 (1,367,375) Cash at beginning of financial year 538,356 1,905,731 538,354 1,905,729 Cash at End of Financial Year 2(a) $2,377,662 $538,356 $2,377,660 $538,354 Notes to the financial statements are included on pages 24 to 38. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 24 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 1. SUMMARY OF ACCOUNTING POLICIES Financial Reporting Framework The financial report is a general-purpose financial report that has been prepared in accordance with the Corporations Act 2001, applicable Accounting Standards and Urgent Issues Group Consensus Views, and complies with other requirements of the law. The financial report has been prepared on the basis of historical cost and except where stated, does not take into account changing money values or current valuations of non-current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets. Significant Accounting Policies Accounting policies are selected and applied in a manner, which ensure that the resulting financial information satisfied the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. The following significant accounting policies have been adopted in the preparation and presentation of the financial report. a) Principles of Consolidation The consolidated financial statements are prepared by combining the financial statements of all the entities that comprise the economic entity, being the Company (the parent entity) and its controlled entities as defined in accounting standard AASB 1024 “Consolidated Accounts”. A list of controlled entities appears in note 4 to the financial statements. Consistent accounting policies are employed in the preparation and presentation of the consolidated financial statements. The consolidated financial statements include the information and results of each controlled entity from the date on which the Company obtains control and until such time as the Company ceases to control such entity. In preparing the consolidated financial statements, all intercompany balances and transactions, and unrealised profits arising within the economic entity are eliminated in full. b) Income Tax Tax-effect accounting principles are adopted whereby the income tax expense shown in the profit and loss account is based on the pre-tax accounting profit adjusted for any permanent differences. Timing differences, which arise due to the different accounting periods in which items of revenue and expense are included in the determination of pre-tax accounting profit and taxable income, are brought to account as either a provision for deferred income tax, or an asset described as future income tax benefit at the rate of income tax applicable to the period in which the benefit will be received, or the liability will become payable. c) Property, Plant and Equipment Property, plant and equipment is stated at cost. Fixed assets, excluding freehold land, are depreciated at rates based upon their expected useful lives to the economic entity. The carrying amount of property, plant and equipment is reviewed annually by Directors to ensure it is not in excess of the recoverable amount from these assets. Expected net cash flows have not been discounted in determining recoverable amount. The depreciation rates used for each class of depreciable assets are: Plant and equipment Straight line Motor Vehicles Diminishing value Diminishing value 10% – 33% 20% – 40% 22.5% d) Exploration, Evaluation and Development Expenditure Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area, or where activities in the area have not yet reached a stage, which permits reasonable assessment of the existence of economically recoverable reserves. When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves. Any costs of site restoration are provided for during the relevant production stages and included in the costs of that stage. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest and costs are written down to the extent they are not considered recoverable. e) Leases Lease payments for operating leases where substantially all the risks and benefits remain with the lessor are charged as expenses in the periods in which they are incurred. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 25 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 1. SUMMARY OF ACCOUNTING POLICIES continued f) Investments Investments are valued at cost or recoverable amount. The carrying amount of investments is reviewed annually by Directors to ensure it is not in excess of the recoverable amount of these investments. The recoverable amount is assessed from the shares’ current market value or the underlying net assets in the particular entities. Expected net cash flows have not been discounted in determining recoverable amounts. g) Employee Benefits Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and sick leave when it is probable that settlement will be required and they are capable of being measured reliably. Provision is made in respect of wages and salaries, annual leave, sick leave and other employee benefits expected to be settled within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Provision made in respect of long service leave which is not expected to be settled within 12 months is measured as the present value of the estimated future cash outflows to be made by the consolidated entity in respect of services provided by the employees up to reporting date. h) Interest in Joint Venture Operations Interest in joint venture operations, where material, are brought to account by including in the respective classifications, the economic entity’s share of the individual assets employed and liabilities and expenses incurred. Details of interests in joint ventures are shown at Note 23. i) Revenue Recognition SALE OF GOODS AND DISPOSAL OF ASSETS Revenue from the sale of goods and disposal of assets is recognised when the economic entity has passed control of the goods or other assets to the buyer. RENDERING OF SERVICES Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract. j) Accounts Payable Trade payables and other accounts payable are recognised when the economic entity becomes obliged to make future payments resulting from the purchase of goods and services . k) Receivables Trade receivables and other receivables are recorded at amounts due less any provision for doubtful debts. Bills of exchange are recorded at amortised cost with revenue recognised on an effective yield basis. l) Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of goods and services tax GST), except: i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or ii. for receivables and payables which are recognised inclusive of GST. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows. m) Recoverable Amount of Non-Current Assets Non-current assets are written down to recoverable amount where the carrying value of any non-current asset exceeds recoverable amount. In determining the recoverable amount of non-current assets, the expected net cash flows have not been discounted to their present value. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 26 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 2. NOTES TO THE STATEMENT OF CASHFLOWS a) Reconciliation of Cash For the purposes of the statement of cashflows, cash includes cash on hand and in banks, and investments in money market instruments, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial position as follows: Cash at Bank Cash on Deposit b) Reconciliation of loss from ordinary activities after related income tax to net cash flows from operating activites Loss from Ordinary Activities after related income tax Non-cash flows in Operating Loss Depreciation Recoverable amount write-down of exploration and evaluation expenditure Recoverable amount write-down of investments (Profit)/loss on sale of investments (Profit)/loss on sale of fixed assets Inherited Assets Provision for doubtful debts – controlled entities Changes in Net Assets and Liabilities (Increase)/Decrease in Assets (Increase)/decrease in trade debtors (Increase)/decrease in prepayments Increase/(decrease) in Liabilities Increase/(Decrease) in trade creditors Provisions employee entitlements Note CONSOLIDATED COMPANY 2003 $ (48,794) 2,426,456 2002 $ 124,857 413,499 2003 $ (48,796) 2,426,456 2002 $ 124,855 413,499 $2,377,662 $538,356 $2,377,660 $538,354 (2,551,319) (2,674,929) (2,551,319) (2,674,929) 47,251 53,853 47,251 53,853 978,468 282,608 203,292 17,375 (77,304) – – (5,867) 1,158,528 (36,976) 640 2,645 – – 812,247 (23,979) 978,468 282,608 203,292 17,375 (77,304) – – (5,867) 621,257 (75,057) 640 2,645 – 538,081 812,247 (23,979) (123,306) (374,971) (123,306) (374,971) (37,488) 327,483 (37,488) 327,483 Net Cash from Operating Activities $(1,266,290) $(755,459) $(1,266,290) $(792,730) H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 27 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 3. RECEIVABLES Current Other Commercial Bills Total Current Receivables Non-Current CONSOLIDATED COMPANY 2003 $ 2002 $ 2003 $ 2002 $ 26,601 995,905 102,686 4,468,379 26,601 995,905 102,686 4,468,379 $1,022,506 $4,571,065 $1,022,506 $4,571,065 Amounts receivable from controlled entity (i) Allowance for doubtful debts Total Non-Current Receivables – – $– – – $– – – $– 2,338,228 (2,338,228) $– (i) Amounts receivable from the controlled entity are unsecured and interest free 4. OTHER NON-CURRENT FINANCIAL ASSETS Shares in unlisted companies Shares in controlled entities – at cost (i) Shares in companies listed on a prescribed Stock Exchange – at recoverable amount (ii) Shares in companies listed on a prescribed Stock Exchange at market value 55,391 55,391 – – 55,391 925 55,391 925 881,892 3,195,000 881,892 3,195,000 $937,283 $3,250,391 $938,208 $3,251,316 $824,891 $3,740,500 $824,891 $3,740,500 The ultimate parent entity is Helix Resources Limited. Helix Resources Limited is a company incorporated in Australia. (i) Shares in controlled entities Name Country of Incorporation Hillview Mining NL Helix Mining Investment P/L Australia Australia Percentage Held 2003 Percentage Held 2002 100% 100% 100% 100% (ii) The Directors have determined the recoverable amount for the shares after consideration of prevailing market conditions and the escrow condition attached to certain shares. 5. OTHER ASSETS Current Prepayments Total Other Assets Non-Current CONSOLIDATED COMPANY 2003 $ 2002 $ 2003 $ 2002 $ 53,422 $53,422 47,555 $47,555 53,422 $53,422 47,555 $47,555 Security Deposits on Tenements Total Other Assets 348,445 $348,445 333,967 $333,967 348,445 $348,445 333,967 $333,967 H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 28 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 6. PROPERTY, PLANT AND EQUIPMENT Gross Carrying Amount Balance at 30 June 2002 Additions Disposals Balance at 30 June 2003 Accumulated Depreciation Balance at 30 June 2002 Disposals Depreciation Balance at 30 June 2003 Net Book Value 30 June 2002 30 June 2003 Gross Carrying Amount Balance at 30 June 2002 Additions Disposals Balance at 30 June 2003 Accumulated Depreciation Balance at 30 June 2002 Disposals Depreciation Balance at 30 June 2003 Net Book Value 30 June 2002 30 June 2003 CONSOLIDATED Plant & Equipment $ Motor Vehicles $ 280,359 86,787 (18,635) 348,511 165,638 (16,011) 40,125 189,752 86,623 – (36,599) 50,024 3,510 (23,867) 8,575 18,218 Total $ 366,982 86,787 (55,234) 398,535 199,148 (39,878) 48,700 207,970 114,721 158,759 53,113 31,806 167,834 190,565 COMPANY Plant & Equipment $ Motor Vehicles $ 280,359 86,787 (18,635) 293,511 165,638 (16,011) 40,125 189,752 86,623 – (36,599) 50,024 33,510 (23,867) 8,575 18,218 Total $ 366,982 86,787 (55,234) 343,535 199,148 (39,878) 48,700 207,970 114,721 158,759 53,113 31,806 167,834 190,565 H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 29 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 7. EXPLORATION AND EVALUATION EXPENDITURE Balance at beginning of the financial year Expenditure incurred during the year Value of Projects sold during the year Expenditure written off during the year Balance at the end of the financial year CONSOLIDATED COMPANY 2003 $ 2002 $ 2003 $ 2002 $ 9,095,654 2,307,556 8,529,686 1,886,364 9,095,654 2,307,556 – (161,868) – 7,867,818 1,849,093 – (979,278) (1,158,528) (979,278) (621,257) $10,423,932 $9,095,654 $10,423,932 $9,095,654 The Directors’ assessment of recoverable amount was after: consideration of prevailing market conditions; previous expenditure carried out on the tenements; and the potential for mineralisation based on both the entity’s and independent geological reports. The ultimate value of these assets is dependent upon recoupment by commercial development or the sale of the whole, or part, of the economic entity’s interests in those areas for an amount at least equal to the carrying value. There may exist, on the economic entity’s exploration properties, areas subject to claim under native title or containing sacred sites or sites of significance to Aboriginal people. As a result, exploration properties or areas within the tenements may be subject to exploration and mining restrictions. 8. CURRENT PAYABLES Trade payables 9. PROVISIONS Current Provision for annual leave Provision for long service leave Non Current Provision for Non-Executive Directors’ retirement Provision for long service leave $170,381 $293,686 $170,381 $293,686 20,854 29,321 $50,175 361,150 3,508 51,853 25,626 $77,479 361,150 13,692 20,854 29,321 $50,175 361,150 3,508 51,853 25,626 $77,479 361,150 13,692 $364,658 $374,842 $364,658 $374,842 10. CONTRIBUTED EQUITY 50,525,428 Fully Paid Ordinary Shares (2002: 50,525,458) 38,889,600 38,889,600 39,018,205 38,889,600 12,860,310 Listed Options Rights Issue 128,605 – 128,605 – Balance at end of financial year $39,018,205 $38,889,600 $38,889,600 $38,889,600 Fully paid ordinary shares carry one vote per share and carry the right to dividends. During the year the company made a Rights Issue of 1:3 options to existing shareholders. Refer to Note 22 for details. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 30 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 11. RESERVES Asset Revaluation Reserve Balance at beginning of financial year Revaluation of investments Transfer on disposal Balance at end of financial year CONSOLIDATED COMPANY 2003 $ 2002 $ 2003 $ 2002 $ 258,106 – (67,500) 219,456 38,650 558,106 – – (67,500) 519,456 38,650 – $190,606 $258,106 $490,606 $558,106 The asset revaluation reserve arises on the revaluation of non-current assets. Where a revalued asset is sold that portion of the asset revaluation reserve that relates that asset, and is effectively realised, is transferred to retained profits. 12. ACCUMULATED LOSSES Balance at beginning of financial year (21,888,891) (19,213,962) (22,187,968) (19,513,039) Net Loss (2,551,319) (2,674,929) (2,551,319) (2,674,929) Balance at end of financial year $(24,440,210) $(21,888,891) $(24,739,287) $(22,187,968) 13. LOSS FROM ORDINARY ACTIVITIES Loss from ordinary activities before Income Tax includes the following items of revenue and expense: a) Operating Revenue Interest Revenue Joint Venture Recoveries Other b) Non-Operating Revenue Proceeds from Sale of Assets c) Expenses: 222,953 288,360 222,953 288,360 – 34,107 257,060 – 14,063 302,423 – 34,107 257,060 1,759,507 2,016,567 – 302,423 1,759,507 2,016,567 – 14,063 302,423 – 302,423 53,853 327,483 621,257 538,081 112,200 18,000 Depreciation of non-current assets: Property, plant and equipment Net transfers to employee entitlement provisions 47,251 (37,488) 53,853 327,483 Write Off of exploration and evaluation expenditure 979,278 1,158,528 Allowance for doubtful debt from controlled entity – – 47,251 (37,488) 979,278 – Operating lease rental expenses: Minimum lease payments Auditors Remuneration 69,194 26,320 112,200 18,000 69,194 26,320 H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 31 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 CONSOLIDATED COMPANY 2003 $ 2002 $ 2003 $ 2002 $ 14. SALE OF ASSETS Sales of assets in the ordinary course of business have given rise to the following losses: NET LOSSES Property, plant and equipment Investments 15. COMMITMENTS a) Operating Lease Commitments Not later than 1 year Later than 1 year but not later than 2 years Later than 2 years but not later than 5 years 17,375 203,292 $220,667 2,645 640 17,375 203,292 $3,285 $220,667 2,645 640 $3,285 129,420 129,420 66,710 129,420 129,420 196,130 129,420 129,420 66,710 129,420 129,420 196,130 $325,550 $454,970 $325,550 $454,970 The term of the Operating Lease in existence over the Company’s head office was for an initial period of six years. As at balance date there was a balance of two and a half years remaining. b) Exploration Expenditure The economic entity has certain statutory obligations to perform minimum exploration work on its tenements to the value of $4,241,920 (2002: $3,250,000) in the next twelve months. These obligations may be varied from time to time, subject to approval, and are expected to be fulfilled in the normal course of operations of the economic entity. 16. CONTINGENT LIABILITIES a) Joint Venture In accordance with normal industry practice, the economic entity has entered into joint ventures and farm in agreements with other parties for the purpose of exploring and developing its mineral interests. If a party to a joint venture defaults and does not contribute its share of joint venture obligations, then the other joint venturers are liable to meet those obligations. In this event, the interest in the tenement held by the defaulting party may be redistributed to the remaining joint venturers. A contingent liability exists in respect of contributions due to be paid by farm in partners of the economic entity to some of its joint venturers. Details of interests in joint ventures are under Note 23. 17. REMUNERATION OF DIRECTORS The Directors of Helix Resources Limited during the year were: E W J Tyler • • R Mosig • A R Martin • • B E Wauchope I K Macpherson H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 32 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 17. REMUNERATION OF DIRECTORS continued a) Directors’ Remuneration The aggregate of income paid or payable, or otherwise made available, in respect of the financial year, to all Directors of the Company, directly or indirectly, by the Company or by any related party CONSOLIDATED COMPANY 2003 $ 2002 $ 2003 $ 2002 $ 591,962 995,600 The aggregate of income paid or payable, or otherwise made available, in respect of the financial year, to all Directors of each entity in the consolidated entity, directly or indirectly, by the entities in which they are Directors of any related party 591,962 995,600 The number of Directors of the Company whose total income falls within each successive $10,000 band of income: Number Number $30,000 – $39,999 $50,000 – $59,999 $160,000 – $169,999 $170,000 – $179,999 $180,000 – $189,999 $190,000 – $199,999 $200,000 – $299,999 $300,000 – $309,999 2 1 – 1 – – 1 – – – 2 – 1 1 – 1 CONSOLIDATED COMPANY 2003 $ 2002 $ 2003 $ 2002 $ b) Executive Remuneration Aggregate remuneration of executive officers of the parent entity working mainly in Australia and receiving $100,000 or more from the Company or from any related party. 635,826 670,000 Aggregate remuneration of executive officers of each entity in the economic entity working mainly in Australia and receiving $100,000 or more from the entity for which they are Executive Officers or from any related party. 635,826 670,000 H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 33 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 17. REMUNERATION OF DIRECTORS continued $170,000 – $179,999 $180,000 – $189,999 $190,000 – $199,999 $200,000 – $299,999 $300,000 – $309,999 18. INCOME TAX Loss before income tax Income Tax Expense: Number Number Number Number 2 – – 1 – – 1 1 – 1 2 – – 1 – – 1 1 – 1 (2,551,319) (2,674,926) (2,551,319) (2,674,926) Income tax expense/(benefit) calculated at 30% (765,396) (802,479) (765,396) (802,479) (Increase)/Decrease in income tax benefit due to: – non-deductible expenses – write off of exploration expenditure – provision for write down of inter Company loans 38,977 66,799 38,977 66,799 – – – – – – – – Benefit of tax losses not brought to account as an asset 726,419 735,680 726,419 735,680 Income tax expense attributable to operating loss – – – – As of 30 June 2003, the parent entity and its controlled entities have future income tax benefits not brought to account as assets in relation to tax losses and timing differences of parent entity $8,638,096 (2002: $7,587,734), economic entity $9,268,286 (2002: $8,217,925), available to offset against future year’s taxable income. The benefit will only be obtained if: a) b) c) the economic entity derives future assessable income of a nature and of an amount sufficient to enable the benefits from the deductions for the losses to be realised; the economic entity continues to comply with the conditions for deductibility imposed by the law; and no changes in tax legislation adversely affect the companies in realising the benefit from the deductions for the losses. Legislation to allow groups, comprising a parent entity and its Australian resident wholly-owned entities, to elect to consolidate and be treated as a single entity for income tax purposes was substantively enacted on 21 October 2002. This legislation, which includes both mandatory and elective elements, is applicable to the company. At the date of this report the directors have not assessed the financial effect, if any, the legislation may have on the company and the consolidated entity and, accordingly, the directors have not made a decision whether or not to elect to be taxed as a single entity. The financial effect of the implementation of the tax consolidation system on the economic entity has not been recognised in the financial statements. 19. SEGMENT INFORMATION The economic entity operated predominantly in one geographical segment and one business, being platinum, gold and other base metals exploration and development in Western Australia, South Australia and New South Wales. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 34 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 20. RELATED PARTY DISCLOSURES Transactions between related parties are on normal commercial terms and conditions unless otherwise stated. Transactions with related parties: 1) Director – Related Entities (a) During the year, Ord Partners provided professional services to the value of $16,348 (2002 $2,480) on normal commercial terms and conditions (net of GST). Mr I K Macpherson, a Director, has significant influence in Ord Partners. (b) During the year, E W J Tyler & Associates provided professional services to the value of $26,322 (2002 $21,733) on normal commercial terms and conditions (net of GST). Mr E W J Tyler, a Director, has significant influence in E W J Tyler & Associates Pty Ltd. 2) Directors’ equity in the Parent Entity: a) Fully Paid Ordinary Shares held as at the reporting date by Directors and their director-related entities: During the year there were 159,250 Fully Paid Ordinary shares issued/purchased by Directors and their director-related entities. b) Listed Options held as at the reporting date by Directors and their director-related entities: During the year there were 4,336 Listed Options issued/purchased by Directors and their director-related entities. c) Staff Options held as at the reporting date by Directors and their director-related entities: 21. EARNINGS PER SHARE Basic loss per share Diluted loss per share Basic Earnings per Share 2003 Number 2002 Number 3,274,780 3,115,530 1,032,848 1,028,512 2,550,000 2,550,000 COMPANY 2003 2002 Cents Per share Cents per share (5.0) (5.0) (5.3) (5.3) The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows: Earnings (a) Weighted average number of ordinary shares (b) 2003 $’000 2002 $’000 (2,551,319) (2,674,926) 2003 No. 2002 No. 50,525,458 50,525,458 (a) Earnings used in the calculation of basic earnings per share is net loss after tax of $2,551,319 (2002 : $2,674,926). (b) The staff and listed options are considered to be potential ordinary shares and are therefore excluded from the weighted average number of shares used in the calculation of basic earnings per share. Where dilutive, potential ordinary shares are included in the calculation of diluted earnings per share (refer below). H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 35 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 21. EARNINGS PER SHARE continued Diluted Earnings per Share The earnings and weighted average number of ordinary and potential ordinary shares used in the calculation of diluted earnings per share are as follows: Earnings (a) 2003 $’000 2002 $’000 (2,551,319) (2,674,926) 12 months to 12 months to 30 June 2002 30 June 2003 No. No. Weighted average number of ordinary shares and potential ordinary shares (b) 50,525,458 50,525,458 (a) Earnings used in the calculation of diluted earnings per share is net profit after tax of $2,551,319 (2002 : $2,674,926). (b) The following potential ordinary shares are not dilutive and are therefore excluded from the weighted average number of ordinary shares and potential ordinary shares used in the calculation of diluted earnings per share: Staff options Listed options 22. SUBSEQUENT EVENTS 2003 No. 2002 No. 4,055,999 4,055,999 12,860,310 18,842,932 On 9 July 2003 Helix Resources Ltd acquired the remaining 49% interest of the Tunkillia Gold Project from AngloGold Ltd. Terms of the acquisition comprise of $1M upfront which is made of $750k cash, 1.25M fully paid Helix shares at 20 cents and 1.25M options exercisable before 30 Nov 2003 and a deferred payment of $500k. There have been no other transactions or events that substantially affect the operations of the economic entity,the results of those operations or the state of affairs of the economic entity in future financial years since year end. 23. INTEREST IN JOINT VENTURES The parent entity has entered into the following unincorporated joint ventures: Joint Venture Project Percentage Interest Principal Exploration Activities Menzies 49% (Golden State Resources NL 51%) Meekatharra Region 90% contributing (J A Bunting & Associates Pty Ltd 10%) Nickel Gold Loongana 90% contributing (J A Bunting & Associates Pty Ltd 10%) Platinum Group Metals The joint ventures are not separate legal entities but are contractual arrangements between the participants for sharing costs and output and do not in themselves generate revenue and profit. Exploration expenditure is the only asset of the joint ventures. The consolidated entities interest in exploration expenditure in the above mentioned joint ventures is included in note 7 and at 30 June 2003 is $780,233 (2002 : $3,268,447). H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 36 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 24. FINANCIAL INSTRUMENTS a) Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which revenues and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 1 to the financial statements. b) The economic entity’s exposure to interest rate risk and effective weighted average interest rate for classes of financial assets is set out below: Floating Interest Rate Maturity Average Interest Rate Fixed Interest Rate Less than 1 year $ More than 1 Year $ Non Interest Bearing $ Total $ 2003 Employee Entitlements Financial Assets Trade debtors Investments Cash at bank and on deposit Commercial bills Security deposits 4.2% 4.7% 4.5% Financial Liabilities Trade creditors Employee Entitlements – – 2,377,462 – – – – – 95,905 348,445 $2,377,462 $1,344,350 – – – – – – Net Financial Assets $2,377,462 $1,344,350 2002 Financial Assets Trade debtors Investments Cash at bank and on deposit Commercial bills Security deposits 4.6% 4.6% 4.6% Financial Liabilities Trade creditors Employee Entitlements – – 538,356 – – – – – 4,468,379 333,967 $538,356 $4,802,346 – – – – – – Net Financial Assets $538,356 $4,802,346 – – – – – – – – – – – – – – – – – – – – 26,601 937,283 26,601 937,283 200 2,377,662 – – 995,905 348,445 $964,084 $4,685,896 170,381 414,833 585,214 170,381 414,833 585,214 $378,870 $4,100,682 102,686 102,686 3,250,391 3,250,391 200 – – 538,556 4,468,379 333,967 $3,353,277 $8,693,979 293,686 452,321 746,007 293,686 452,321 746,007 $2,607,270 $7,947,972 Other than those classes of assets and liabilities denoted as “listed” in note 4, none of the classes of financial assets and liabilities are readily traded on organised markets in standardised form. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 37 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 24. FINANCIAL INSTRUMENTS continued c) Credit Risk Credit Risk refers to the risk that counterparty will default on, its contractual obligations resulting in financial loss to the economic entity. The economic entity has adopted the policy of only dealing with credit worthy counterparties and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults. The economic entity measures risk on a fair value basis. The maximum credit risk on financial assets of the economic entity which have been recognised on the statement of financial position, other than investments in shares, is generally the carrying amount, net of any provisions for doubtful debts. Bills of exchange, which have been purchased at a discount to face value, are carried on the statement of financial postition at an amount less than the amount realisable at maturity. The total credit risk exposure of the economic entity could also be considered to include the difference between the carrying amount and the realisable amount. d) Net Fair Value of Financial Assets and Liabilities On-balance Sheet The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities approximates their carrying value. The net fair value of financial assets and financial liabilities is based upon market prices where a market exists or by discounting the expected future cash flows by the current interest rates for assets and liabilities with similar risk profiles. Listed equity investments have been valued by reference to market prices prevailing at balance date. For unlisted equity investments, the net fair value is an assessment by the Directors based on the underlying net assets, future maintainable earnings and any special circumstances pertaining to a particular investment. CONSOLIDATED COMPANY Note 2003 $ 2002 $ 2003 $ 2002 $ 25. EMPLOYEE ENTITLEMENTS The aggregate employee entitlement liability recognised and included in the financial statements is as follows: Provision for employee entitlements: Current (Note 9) Non-Current (Note 9) 50,175 364,658 414,833 82,295 370,026 452,321 50,175 364,658 414,833 82,295 370,026 452,321 Number of employees at end of financial year No 11 No 16 No 11 No 16 26. REMUNERATION OF AUDITORS a) Auditor of the Parent Entity Auditing the financial report Other services 2003 $ 2002 $ 2003 $ 2002 $ 26,320 18,000 26,320 18,000 – – – – 26,320 18,000 26,320 18,000 H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 38 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2003 27. SHARE OPTION PLANS As at 30 June 2003 the Company had issued 4,055,999 share options (30 June 2002 4,055,999). No options were granted, exercised or lapsed during the financial year. Share options carry no rights to dividends and no voting rights. The difference between the total market value of options issued during the financial year, at the date of issue, and the total amount received from executives and employees is not recognised in the financial statements except for the purposes of determining directors’ and executives’ remuneration in respect of that financial year .The amounts are disclosed in remuneration in respect of the financial year in which the entitlement was earned. Further details are disclosed below: No. of Options 528,665 528,667 528,668 90,000 90,000 90,000 733,335 733,332 733,332 Date Issued 29.07.1999 29.07.1999 29.07.1999 24.05.2001 24.05.2001 24.05.2001 24.05.2001 24.05.2001 24.05.2001 Exercise Price Exercise Date $0.42 $0.46 $0.50 $0.74 $0.81 $0.88 $0.80 $1.00 $1.20 14.05.2005 14.05.2005 14.05.2005 29.03.2009 29.03.2009 29.03.2009 14.05.2005 14.05.2005 14.05.2005 28. ADDITIONAL COMPANY INFORMATION Helix Resources Limited is a listed public company, incorporated and operating in Australia. Registered Office Level 3, 24 Kings Park Road WEST PERTH WA 6005 Tel (08) 9321 2644 Principal Place of Business Level 3, 24 Kings Park Road WEST PERTH WA 6005 Tel (08) 9321 2644 H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 39 SHAREHOLDING INFORMATION ANALYSIS OF SHAREHOLDERS AS AT 15 SEPTEMBER 2003 NUMBER OF SHARES HELD Spread of Holdings 1 – 1000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 and over Total Number of Shareholders 647 958 500 684 67 2,856 1,186 Number of shareholders holding less than a marketable parcel PERCENTAGE HELD BY 20 LARGEST SHAREHOLDERS Zero Nominees Shareholder 1. 2. National Nominees Limited Colter Holdings Group 3. Invia Custodian Pty Ltd 4. Cairnglen Investments Pty Ltd 5. AngloGold Australia Limited 6. 7. ANZ Nominees Limited 8. Arcaro Holdings Pty Ltd 9. Weresyd Proprietary Limited 10. Westpac Custodian Nominees 11. Niddrie Holdings Pty Limited (Wauchope Super Fund A/C) 12. Equities Trustees Limited 13. Mr. Abdelaziz Soliman 14. Macarthur Capital Pty Ltd (Macarthur Equity A/C) 15. Mr. John Halaska 16. Mr. Michael Betts (Kimono Super Fund A/C) 17. MR. JG & Mrs. AG Robertson 18. MDA Capital Pty Ltd (Macarthur Equities Account) 19. Technica Pty Ltd 20. The Portland House Group Pty Ltd (Client A/C) Top 20 Total VOTING RIGHTS Shares 4,402,500 3,083,158 2,245,957 2,199,834 1,564,634 1,250,000 1,014,782 653,880 642,425 532,500 475,752 461,250 400,000 378,000 362,500 355,000 350,400 280,000 273,568 234,500 21,160,640 One vote for each ordinary share held in accordance with the Company’s Constitution. Number of Shares 393,861 2,796,580 4,251,040 22,411,040 27,085,952 56,938,958 1,344,377 % 7.73 5.41 3.94 3.86 2.75 2.19 1.78 1.15 1.13 0.94 0.84 0.81 0.70 0.66 0.64 0.62 0.62 0.49 0.48 0.41 37.15 SUBSTANTIAL SHAREHOLDERS Shareholder 1. Yandal Investments Pty Ltd 2. Cairnglen Investments Pty Ltd 3. Société Générale DIRECTORS’ INTEREST IN SHARE CAPITAL Disclosed elsewhere in this report. Shares 4,234,406 3,450,218 3,083,158 % of Issued Capital 7.43 6.06 5.41 H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 40 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 SHAREHOLDING INFORMATION ANALYSIS OF SHAREHOLDERS AS AT 15 SEPTEMBER 2003 NUMBER OF OPTIONS HELD Spread of Holdings 1 – 1000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 and over Total Number of Option Holders 149 249 97 159 28 682 Number of Options 85,627 679,944 765,405 5,451,797 7,126,537 14,109,310 PERCENTAGE HELD BY 20 LARGEST OPTIONHOLDERS AngloGold Australia Limited Zero Nominees Pty Ltd Colter Holdings Group Invia Custodian Pty Ltd Cairnglen Investments Pty Ltd Optionholder 1. 2. 3. 4. 5. 6. Mr. Andrew Bruce Doak 7. Mrs. Clare Mary Sung-Reid 8. Mr. John Halaska 9. Kafir Pty Limited 10. ANZ Nominees Limited 11. Mr. Abdelaziz Soliman 12. Reynolds (Nominees) Pty Limited 13. Truwest Pty Ltd (Superfund A/C) 14. Mr. Raymond Paul Sandle 15. Mr. Michael Hopkins 16. Netshare Nominees Pty Ltd 17. Niddrie Holdings Pty Limited (Wauchope Super Fund A/C) 18. Mr. Michael Betts (Kimono Super Fund A/C) 19. Mr. Douglas Charles Perry 20. Mr. DG & Mrs. JA Grant Top 20 Total Shares 1,250,000 912,934 738,237 718,112 334,045 300,000 270,000 270,000 236,667 220,594 219,358 171,800 170,001 170,000 156,667 150,000 148,168 135,000 122,184 118,500 6,812,267 % 8.86 6.47 5,23 5.09 2.37 2.13 1.91 1.91 1.68 1.56 1.55 1.22 1.20 1.20 1.11 1.06 1.05 0.96 0.87 0.84 48.27 The above listed options are due to expire on 30 November 2005 and are currently listed on the Australian Stock Exchange Ltd. H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 41 SCHEDULE OF TENEMENTS AS AT 30 SEPTEMBER 2003 Tenement Type and Number WESTERN AUSTRALIA Name Mineral Ownership EL09/644* MLA09/87 MLA09/88 ELA09/1079 PLA09/424 PLA09/425 PLA09/426 PLA09/427 EL29/139* MLA29/214 EL29/139* MLA29/139 MLA29/214 MLA29/215 MLA29/216 MLA29/217 MLA29/218 MLA29/219 MLA29/220 EL29/145* MLA29/226 MLA29/227 PL29/1257* MLA29/171 PL29/1259* MLA29/173 ML29/174 EL77/1029 EL77/1030 EL77/1031 ELA77/1154 EL77/1042 EL77/1043 Glenburgh Glenburgh Glenburgh Glenburgh Glenburgh Glenburgh Glenburgh Glenburgh Menzies Menzies Menzies Menzies Menzies Menzies Menzies Menzies Menzies Menzies Menzies Menzies Menzies Menzies Menzies Menzies Menzies Menzies Menzies Barlee Barlee Barlee Barlee Barlee Barlee Gold Gold Gold Gold Gold Gold Gold Gold Nickel Nickel Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Helix Resources Limited 100% *Conversion from EL to MLs Helix Resources Limited 100% Menzies Nickel Joint Venture (Heron Resources NL 51 %,Helix 49%) *Conversion from EL to MLAs Helix Resources Limited 100% *Conversion from EL to MLAs Helix Resources Limited 100% *Conversion from EL to MLAs Helix Resources Limited 100% * Conversion from PL to MLA Helix Resources Limited 100% * Conversion from PLs to MLA Helix Resources Limited 100% Helix Resources Limited 100% Comet Resources NL Joint Venture (Helix 82.5%) H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 42 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 TENEMENT SCHEDULE Tenement Type and Number WESTERN AUSTRALIA Name Mineral Ownership ML47/123 ML47/124 ML47/125 ML47/126 ML47/141 ML47/142 ML47/143 ML47/144 ELA47/1089 EL47/905 EL47/1015 EL47/1074 EL47/1075 ELA47/1090 ELA47/1144 ELA47/1145 ELA47/1146 ELA47/1169 ELA47/1170 ELA47/1171 ELA38/1000 ELA38/1476 EL69/1734 EL69/1735 EL39/918 EL52/1495 EL52/1496 EL51/946 EL51/926 EL51/927 Munni Munni Munni Munni Munni Munni Munni Munni Munni Munni Munni Munni Munni Munni Munni Munni Munni Munni South Munni Munni South Munni Munni South Munni Munni South Munni Munni South Munni Munni South Elvire Elvire Elvire Yalleen. Yalleen. Yalleen Mt Venn Helix Resources Limited 100% West Pilbara Joint Venture Helix Resources Limited 100% DeBeers Australia Exploration Limited earning 51% PGM PGM PGM PGM PGM PGM PGM PGM PGM Diamonds Diamonds Diamonds Diamonds Diamonds Diamonds Diamonds Diamonds Diamonds Diamonds Diamonds PGM, Nickel Kelray Joint Venture (Helix earning 80%) Mt Venn East PGM, Nickel Helix Resources Limited 100% Haig Haig Minigwal Narracoota Narracoota Narracoota Gnaweeda Gnaweeda PGM PGM PGM Gold Gold Gold Gold Gold Helix Resources Limited 100% R Smit Joint Venture (Helix earning 80%) J A Bunting & Assoc Pty Ltd Joint Venture (Helix 90%) H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 43 TENEMENT SCHEDULE Tenement Type and Number WESTERN AUSTRALIA Name Mineral Ownership EL69/1516 EL69/1517 EL69/1718 EL69/1719 EL69/1720 PL69/34 PL69/35 PL69/36 PL69/37 EL80/2931 EL80/2933 EL80/2934 EL80/3090 EL80/3091 EL80/3122 ELA80/2910 ELA80/3126 ELA80/3127 EL80/3092 EL80/3093 EL80/3094 ELA38/1477 ELA38/1478 ELA52/1623 ELA52/1624 ELA52/1625 ELA52/1626 Loongana Loongana Loongana Loongana Loongana Loongana Loongana Loongana Loongana Bindoola Bindoola Bindoola Bonaparte Bonaparte Bonaparte Bonaparte Bonparte Bonparte Kimberley Group Kimberley Group Kimberley Group Isolated Hill Isolated Hill Perry Creek Perry Creek Perry Creek Perry Creek Gold, PGM, Base metals J A Bunting & Assoc Pty Ltd Joint Gold, PGM, Base metals Venture (Helix 90%) Gold, PGM, Base metals Gold, PGM, Base metals Gold, PGM, Base metals Gold, PGM, Base metals Gold, PGM, Base metals Gold, PGM, Base metals Gold, PGM, Base metals Base metals Base metals Base metals Helix Resources Limited 100% Gold, Base metals Helix Resources Limited 100% Gold, Base metals Gold, Base metals Gold, Base metals Gold, Base metals Gold, Base metals Gold, PGM, Base metals Helix Resources Limited 100% Gold, PGM, Base metals Gold, PGM, Base metals Gold, PGM, Base metals Helix Resources Limited 100% Gold, PGM, Base metals Helix Resources Limited 100% Base metals Base metals Base metals Base metals H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 44 123456789101112131415161718192021222324 2526272829303132333435363738394041424344 TENEMENT SCHEDULE Tenement Type and Number SOUTH AUSTRALIA Name Mineral Ownership EL2968 EL3034 EL3035 EL2697 EL2854 EL2858 EL2550 EL2648 EL2851 EL3050 Purple Downs Jim's Hill Gaiger Bluff Lake Everard Lake Everard West Carapee Karkarook Hincks Pine Row Bosanquet Gold, Copper, Base metals Hillview Mining NL 100% # Gold, Copper, Base metals Gold, Copper, Base metals Gold Gold Helix Resources Limited 100% Gold, Copper, Base metals Olliver Geological Services Gold, Copper, Base metals Joint Venture (Helix earning 90%) Gold, Copper, Base metals Gold, Copper, Base metals Helix Resources Limited 100% The following Licences and Licence Applications are BHP owned tenements of which Helix has the right to explore and develop any resources discovered under the terms of the BHP - Helix Alliance Agreement. Under the terms of the BHP-Helix Alliance Agreement, Helix has the right to 100% ownership of all resources with a metal value less than $1 billion. BHP has the right to 70% ownership of larger resources. EL2763 Middleback Ranges Gold/Base metals (Excludes iron ore & steel making minerals) Previously EL2109 (Including BHP MLs within EL2763) EL2742 EL2993 EL3036 Corunna Gold, Copper, Base metals Helix Resources Limited 100% Bullcarkle Dam Gold, Copper, Base metals Lake Gilles Gold, Copper, Base metals #Hillview Mining NL - wholly owned subsidiary of Helix Resources Limited. Abbreviations and Definitions used in Schedule: EL ML PL Exploration Licence Mining Lease Prospecting Licence ELA MLA ALA Exploration Licence Application Mining Lease Application Assessment Lease Application H E L I X R E S O U R C E S L I M I T E D A N N U A L R E P O R T 2 0 0 3 H e l i x R e s o u r c e s i L m i t e d a n n u a l r e p o r t 2 0 0 3 i D e s g n e d a n d p r o d u c e d a n n u a l r e p o r t 29030’ S 26025’ S 0 10 118045’ E b y S a p p h i r e S o u t i l o n s HELIX RESOURCES LIMITED Level 3, 24 Kings Park Road West Perth WA 6005 Telephone: +61 8 9321 2644 Facsimile: + 61 8 9321 3909 Email: helix@helix.net.au Website: www.helix.net.au
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