Contents
Chairman’s Review…………………….………………………………………………….2
Review of Operations…………………………………………………………………...4
Introduction………………………………………………………………………...4
Review of Projects……………………………………………………………......4
Corporate Governance……………………………………………………………...…..8
Directors’ Report……………………………………………………………………….15
Auditor’s Independence Declaration………………………………………………….21
Independent Audit Report……………………………………………………………….22
Directors’ Declaration…………………………………………………………………....24
Statement of Financial Position………………………………………………….……..25
Statement of Financial Performance……………………………………..……….…26
Statement of Cashflows…………………………………………………………...…….27
Notes to the Financial Statements………………………………………………..……28
Shareholding Information…………………………………………………………….…47
Tenement Schedule………………………………………………………………..……49
Corporate Directory…………………………………………………………………….52
Annual Report 2005 | 1
“the year has been a positive one, in
which the Company has made substantial
progress in its exploration activities..”
Chairman’s Review
Dear Shareholder
I am pleased to present this year’s Annual Report,
the twentieth in the history of Helix Resources
Limited.
Overall, the year has been a positive one, in which
the Company has made substantial progress in its
exploration activities for gold, copper, nickel and
diamonds. Commencing in January, we flew the first
detailed aeromagnetic survey over the north eastern
section of the Mt Venn layered intrusion in Western
Australia. The results of this survey produced some
significant magnetic anomalies which were further
evaluated in May
ground-
using
b
e
n
r
o
electromagnetic
(EM) techniques.
This EM survey
i d e n t i f i e d
m a s s i v e
sulphide conductors at relatively shallow depths and
a program of outcrop gossan sampling confirmed
highly anomalous copper and nickel mineralisation
up to 24% Cu and 1.5% Ni. In June, the Company
carried out a 3,000 metre reverse circulation drilling
program made up of 24 holes drilled into the north
eastern ultramafic sequence.
In addition more
ground was applied for to the south providing Helix
with almost 80% coverage of the Mt Venn layered
intrusion.
The results of our first drilling program at Mt Venn
were encouraging; drilling confirmed the presence of
extensive sulphide accumulations, with best assay
results from drill hole MVRC 10 which intersected 2
metres of 1.2% Nickel from a 4 metre wide zone
grading 1.3% Copper. Most holes contained broad
widths of geochemically anomalous copper and
nickel and the Company is now preparing a further
exploration program over the entire layered intrusion
aimed at identifying potential structural trap sites
containing sulphide accumulations.
In South Australia, a new joint venture with Minotaur
Exploration Ltd over the Tunkillia gold project was
signed in March of this year. The Tunkillia project
currently contains an inferred resource of 10.5 Mt
grading 2.2 g/t (approximately 730,000 ounces).
Under the terms of the joint venture Minotaur can
earn a 51% interest in the project by spending the
next $5.0 million on the project. There is also a
minimum requirement for Minotaur to spend $1.0
million before the end of 2006.
Under a generative alliance between Minotaur and
Oxiana Limited, Minotaur may introduce Oxiana to
the Tunkillia project, providing there is an indicated
2 | HELIX RESOURCES LIMITED
resource estimation greater than 1 million ounces of
gold. Minotaur and Oxiana could then earn an
additional 24.5% (total 75.5%) equity by completing
a pre-feasibility study on such a project in an
additional 2 year timeframe.
Exploration activities at Tunkillia by Minotaur are
currently
from drilling
in progress and results
programs should be available before year end.
In April, the Company carried out drilling at its
Glenburgh gold project in the Gascoyne region of
Western Australia. Drilling has now confirmed a
JORC resource of 1.1 Mt grading 3.1g/t for 108,000
ounces of gold.
The Company
focussing
is
f u r
t h e r
e x p l o r a t i o n
around defining
a d d i t i o n a l
r e s o u r c e
ounces near the Apollo resource.
The West Pilbara Diamond Project is being explored
on behalf of Helix under an earning-in agreement
with DeBeers Australia Exploration Limited
(DeBeers), whereby DeBeers can earn 51% interest
in the project by spending $3.0 million before June
2006. DeBeers has outlined a potential new
diamond province in the West Pilbara region, with
two kimberlites
located on Helix Exploration
Licences. Both kimberlites contain micro-diamonds
and occur as dyke complexes. The Blacktop
kimberlite, which straddles both a joint venture
Exploration Licence and DeBeers’ own ground, has
had one initial bulk sample taken from the DeBeers
Exploration Licence. The bulk sample has produced
approximately 5 carats of diamonds, and further
work including bulk sampling is now required on the
the Helix
Blacktop kimberlite extensions onto
tenements. The other kimberlite, Clurrie, situated on
R. Vittino, R. Mosig, J. den Dryver, Tunkillia 2004
Chairman’s Review
Helix tenements, remains untested. The Company is
encouraged by the significant early success in
finding kimberlites and diamonds in this new and
exciting province and looks forward to the next
exploration program.
Helix reported a loss of $1,297,895 during the year.
Cash reserves available are $1.6 million and the
Company continues
its determined exploration
efforts throughout Western Australia.
In August of this year, Mr Michael Wilson took up
the position as Exploration Manager
the
Company replacing Mr Tony Martin who retired after
17 years employment. I would like to thank Tony on
behalf of all at Helix for his tremendous assistance
and I would also like to welcome Michael to the
management
to his
contributions.
team and
forward
look
for
Mt Venn Field Camp 2005
The staff and Board of Helix look forward to making
2006 a significant year for the Company.
At the last Annual General Meeting of the Company
in November 2005, Mr Riccardo Vittino joined me as
an executive Director and Messrs Greg Wheeler and
John den Dryver joined as non executive Directors. I
would like to also thank them and the rest of the
Helix staff for their valuable contributions during this
important year.
Robert W Mosig
Executive Chairman
Helix Project Locations
Annual Report 2005 | 3
Review of Operations
INTRODUCTION
Exploration activities focussed on the Mt Venn
layered intrusion - Eastern Goldfields, the Glenburgh
gold project,- Gascoyne region and the Isolated Hill
gold and base metals project - Eastern Goldfields in
Western Australia.
Activities at the Highway nickel laterite project, the
Tunkillia gold project, the West Pilbara diamond
project and the Loongana base metals and platinum
group metals (PGM) project were carried out by joint
venture partners.
On platinum group metals, Helix retains an active
interest in Australian PGM exploration through its
Fifield and Munni Munni PGM projects. This year
has seen a depressed price for palladium, generally
below USD$200 an ounce. The Company maintains
a continuous monitor on the potential for Australia to
enter the PGM production arena, and plans to
undertake a longer term economic study on the
PGM market in 2006.
Mt Venn Project – Western Australia
Helix 80% - E38/1000
Helix 100% - ELA 38/1476 and 1775.
The Mt Venn Project is situated 100km east of
Laverton W.A., on the edge of the Great Victorian
Desert. The project area has received very little
exploration activity over the last 30 years due to its
location on an Aboriginal reserve. The last recorded
work on the project was carried
out by Tasminex N.L. and
Western Mining Corporation in
the late 1960’s and early 1970’s
respectively.
In March of this year, an 8 square kilometre ground-
borne electromagnetic (EM) survey was carried out
over a specific area of the intrusion where significant
magnetic and geochemical anomalism was found to
occur. The EM survey assisted in defining two
sulphide-rich horizons. The first was associated with
the basal contact of the intrusion and the second
was located up sequence, along the contact of a
gabbro with a coarse-grained pyroxenite.
Reverse Circulation (RC) drilling commenced in late
June with a total of 24 holes drilled for 3,031 metres
targeting selected geochemical, EM, magnetic and
structural features along 6 kilometres of strike
length.
Best assay results were from hole MVRC 10, which
intersected 2 metres grading 1.2% Nickel from a 4
metre wide zone grading 1.3% Copper. Most drill
holes contained broad widths of geochemically
anomalous copper and nickel varying from several
metres up to 60 metres in drilled widths. Evidence of
weak platinum group metal anomalism was detected
in only one drill hole specifically targeted to intersect
the titaniferous magnetite portion of the Mt Venn
intrusion.
By placing these assays into the context of a layered
ultramafic intrusion, the Company is encouraged by
these first pass drilling results. The Mt Venn
Intrusion has now been confirmed to have extensive
sulphide accumulation containing well developed
Mt Venn appears to have some
characteristics of a layered mafic/
ultramafic
intrusion and was
secured by Helix to examine its
potential to host PGM and base
metal deposits. After several
years of negotiations to support
the granting of an Exploration
finally
Licence,
commenced
the
project in late 2004.
the Company
fieldwork on
Initial work at
the Mt Venn
Project involved the flying of a
detailed magnetic survey over
the entire intrusion in early 2005.
Follow-up
activities
ground
included a mapping and outcrop
sampling program over
the
western extent of the outcropping
intrusion (refer
portion of
Figure 1). This mapping and
sampling identified a series of
gabbroic and pyroxenitic units
with extensive surface gossan
development.
the
4 | HELIX RESOURCES LIMITED
Figure 1: Mt Venn Project Significant Drilling Results
Review of Operations
copper and nickel anomalism.
Future exploration will focus on the identification of
likely structural trap sites, where economic levels of
copper and nickel concentrations may occur in the
untested portions of the Mt Venn intrusion.
Glenburgh Project – Western Australia
Helix 100%
During the year, the Company carried out new ore
resource estimations and a further drilling program.
In May, Resource Evaluations Pty Ltd calculated a
new JORC compliant resource for the project. The
new resource included additional holes drilled by Helix
in 2003-04 that intersected high grade extensions of
the Apollo lode. An inferred resource of 1.1Mt at 3.1g/t
for 108,000oz was estimated using a grade cut off of
1g/t, whilst the estimation also took into account
minimum mining widths for ore panels. At the Apollo
Prospect, 632,000 t grading 3.4g/t for 68,500 oz were
estimated. This is a significant improvement from
previous resource calculations, with a 60% grade
increase and 20% more ounces at Apollo. Previous
resource calculations had effectively smeared the
orebody by using a lower 0.5g/t cutoff. The Company
considers that the new resource estimation better
reflects the high grade nature of the Glenburgh
mineralisation.
Additionally, a 2,000 metre RAB drilling program was
completed over a series of geochemical anomalies at
the Mustang Prospect, immediately east of the main
Apollo Prospect. This area is covered by a thin veneer
of alluvial soils masking the geochemical response
noted elsewhere on the project. An earlier shallow
vacuum drilling program in 2004 successfully identified
numerous gold anomalies from the palaeo-soil surface
located 1-2 metres below the cover. The RAB drilling
program was designed
the weathered
basement below these anomalies to a depth of
approximately 30 metres.
test
to
The program highlighted a number of significant plus
1g/t gold intersections including 8m at 3.8g/t and 7m at
2.1g/t over a 1.5 kilometre strike length (refer to Figure
2). The results show potential for at least two new
zones of mineralisation, both with geochemical
signatures similar to that of the Apollo Prospect.
Future work will concentrate on defining the new
zones of anomalous geochemistry with RC drilling and
confirming the possibility for along strike repetitions of
the shallow dipping high grade Apollo-style lodes
under shallow cover.
Perry Creek Base Metals Project -
Western Australia
Helix 100%
is a
The Perry Creek copper-lead-zinc project
conceptual base metals target situated in the Edmund
Basin, Western Australia. The Edmund Basin is an
extensive
intracratonic shale-sandstone-carbonate
basin of early Mesoproterzoic age which forms the
lower part of the Bangemall Superbasin (refer Figure
3).
The Perry Creek Project is an attractive target for
sediment hosted base metals. The project area
contains favourable rock types including shale and
dolomites which are situated within an intracratonic rift
setting. In addition, its age of 1.6Ga is comparable to
the Mt Isa and MacArthur River base metal deposits.
The primary target in the project area is sulphidic
carbonaceous shale of the Blue Billy Formation which
overlies a thick clastic wedge of conglomerate and
(Prairie Downs and Gooragoora
sandstone
Figure 2: Glenburgh plan and long section showing significant results
Annual Report 2005 | 5
Review of Operations
Formations respectively).
Previous explorers in the project
area were Geopeko (1983-85) and
P a s m i n c o
( 1 9 9 2 - 9 4 ) . B o t h
companies carried out primary
exploration for Mt Isa style Pb-Zn
mineralization and for Jillewarra-type
Cu-Pb-Au occurrences using
aeromagnetic studies combined with
geochemical sampling. Several
anomalous localities were defined in
areas of unexposed Blue Billy
Formation.
Helix will carry out further sampling
and geophysical studies prior to
drilling any defined targets in 2006.
Lake Everard Project – South
Australia
Helix 100%,
Minotaur Exploration earning 51%
A Joint Venture with Minotaur
Exploration Ltd (“Minotaur”) over the
Lake Everard Project was signed in
the first quarter of 2005. Under the
terms of the Joint Venture, Minotaur can earn a 51%
interest in all tenements by spending $5.0 million over
four years, of which $1.0 million is a minimum
commitment to be spent before the end of 2006.
Under a proposed generative alliance between
Minotaur and Oxiana Limited, Minotaur can introduce
Oxiana to the project. Should Oxiana enter into the
joint venture, then Minotaur/Oxiana can earn an
additional 24.5% (total 75.5%) equity by completing a
pre-feasibility study on a project which contains an
Indicated Resource of at least 1 million ounces gold.
Minotaur has taken over management of the project
and subsequently carried out a full review of all
geophysical and drilling data, identifying numerous
priority targets for their 2005 field campaign. Minotaur
has conducted an infill gravity survey and a close-
spaced calcrete sampling program over several
regional targets. In addition, a regional Aircore drilling
program has commenced to test gold and copper/gold
targets over the entire tenement package, and an RC/
diamond drilling program will be carried out to test
geophysical anomalies and structural targets within
the 20 square kilometre Tunkillia gold in calcrete
anomaly.
West Pilbara Diamond Project – Western Australia
Helix 100%, De Beers Australia Exploration Limited
earning 51%
The Helix West Pilbara Diamond Project comprises 11
tenements, 100% owned by Helix, covering nearly
2,000 square kilometres and situated to the south of
the Company’s Munni Munni PGM project. DeBeers
Australia Exploration (DBAE) may earn a 51% interest
in diamonds by spending AUD$3 million by June 2006.
6 | HELIX RESOURCES LIMITED
Figure 3: Perry Creek project Stratigraphic Interpretation
No field activities were carried out in 2005, however,
previous reconnaissance and surface sampling by
DBAE resulted in the discovery of two kimberlites,
Blacktop and Clurrie, in 2004. As part of a follow up
survey three micro-diamonds were recovered from a
rock chip sample containing weathered kimberlite from
the Blacktop area (refer to Figure 4) The discovery is
immediately adjacent to the DBAE Balmoral Project
tenements where a 32.85 tonne bulk sample produced
89 macro diamonds totaling 4.17 carats (-8.0 + 1.0
mm fraction) from the Blacktop kimberlite dyke and sill
complex. A further 46 diamonds totalling 1.1 carats
were also found in the tailings re-treatment audit of the
bulk sample.
located on
the extension of
The kimberlite and micro-diamonds found on the Helix
tenements are
the
Blacktop kimberlite trend found on DBAE’s ground.
DBAE’s drilling to date extends only to the boundary of
the Helix tenements. The regional geophysics and
surface loam sampling conducted by DBAE shows the
complex extends for at least another 1.5 kilometres
into Helix’s ground where it terminates in a major
regional fault.
field activities
Earlier this year, DBAE advised Helix that as a result
of a reassessment of De Beers’ global exploration
priorities,
in Australia would be
substantially reduced. As a consequence DBAE and
Helix are currently discussing a number of options with
a view to ensure that the diamond exploration potential
of the ground held by both parties is assessed
thoroughly.
Highway Nickel Project – Western Australia
Helix 25%, Heron Resources Limited 75%
Review of Operations
Heron Resources have notified Helix that infill RC
drilling at the Highway resource, which stands at 96Mt
at 0.74% Ni and 0.05% Co, is in progress. This drilling
program will bring the resource drill spacing down to
160 by 80 metres. This drilling campaign is the first
step towards upgrading the status of the resource from
Inferred to Indicated.
resource
The Highway
represents a significant
siliceous Nickel laterite resource located only 25
kilometres north of Heron’s Goongarie Hill project
where INCO has entered into a joint venture with
Heron.
the Robe River where it crosses the Marra Mamba
and Brockman Iron Formations. The exploration target
is the occurrence of channel iron deposits (CID’s),
accumulations of material anomalously high in iron
that have concentrated in the channels and become
lithified.
Today Rio Tinto is profitably mining CID’s from Mesa J
at Robe River, some 20 km to the west.
API plans to conduct programs of detailed mapping
and sampling to define the CID’s with follow-up drill
testing of targets in the 2005/06 field season
Yalleen Iron Ore Project – Western Australia
Helix 100%, API Management Pty Ltd earning 70%
West Pilbara Base Metal Project –
Western Australia
Helix 100%
The Yalleen Project is a joint venture between Helix
and API Management Pty Ltd (a company equally
owned by Aquila Resources Ltd and AMCI Holdings
Australia Pty Ltd), and covers an area of 633 square
km in the West Pilbara Region of Western Australia
(refer Figure 4).
The terms of the joint venture are:
• API will spend a total of $1.5 million over four years
on exploration for iron ore to earn a 70% interest in the
project, and may elect to withdraw from the project
after spending a minimum of $150,000;
• Once API has earned its 70% interest, Helix can
elect to contribute pro-rata or dilute to a $0.50 per
tonne royalty.
The project area covers the south eastern extension of
Figure 4: West Pilbara Project Locations
The West Pilbara Base Metal Project covers the same
area as the DBAE diamond joint venture with the
the Munni Munni project area,
addition of
approximately 75 kilometres south of Karratha WA.
The tenement package covers a diverse range of rock
types from sequences of the Hamersley Basin in the
south, through Fortescue Formation volcanics and
sediments to Archaean basement in the north. Aside
from the PGM potential at Munni Munni, the region is
considered highly prospective for gold and base
metals. Operating nickel, copper and iron ore mines
the
and numerous historic workings surround
tenement package.
As part of the DBAE diamond joint venture, a surface
geochemical sample was collected by DBAE nearby to
resulting samples,
each diamond sample. The
collected at approximate 5 square kilometre spacings,
were assayed by Helix for precious and base metals.
Results have highlighted numerous gold/PGM and
base metal anomalies that will form the basis for a
field campaign on the project area in the 2005-2006
field season.
Narracoota Project – Western Australia
Helix Resources Limited 90%
The Naracoota project lies in the Peak Hill Goldfield
100km north of Meekatharra. During the year a
regional surface geochemical sampling program was
carried out over the project area. A total of 834
samples of coarse lag material were collected at 800
metre by 400 metre centres. The program outlined two
significant gold anomalies. These gold anomalies are
believed to be associated with regional west north-
west structures on the northern edge of a large
coincident gravity and magnetic feature, the Biluyin
Anomaly, where historical drilling intersected a thick
sequence of volcanic breccias buried under shallow
colluvial sediments.
Future work will be carried out in last quarter of 2005
to assess the Biluyin breccia system, with the aim of
outlining a drilling program targeting gold and base
metal mineralisation associated with regional structural
controls and associated alteration systems.
Annual Report 2005 | 7
Corporate Governance
CORPORATE GOVERNANCE
The Company is committed to implementing the highest standards of corporate governance. In determining what those high standards
should involve the Company has turned to the ASX Corporate Governance Council’s Principles of Good Corporate Governance and Best
Practice Recommendations. The Company is pleased to advise that the Company’s practices are largely consistent with those ASX
guidelines. As consistency with the guidelines has been a gradual process, where the Company did not have certain policies or
committees recommended by the ASX Corporate Governance Council (the Council) in place during the reporting period, we have
identified such policies or committees.
Where the Company’s corporate governance practices do not correlate with the practices recommended by the Council, the Company
does not consider that the practices are appropriate for the Company due to the size of Company operations.
To illustrate where the Company has addressed each of the Council’s recommendations, the following table cross-references each
recommendation with sections of this report. The table does not provide the full text of each recommendation but rather the topic
covered. Details of all of the recommendations can be found on the ASX Corporate Governance Council’s website at http://
www.asx.com.au/about/CorporateGovernance_AA2.shtm.
Recommendation
Recommendation 1.1 Functions of the Board and Management
Recommendation 2.1 Independent Directors
Recommendation 2.2 Independent Chairman
Recommendation 2.3 Role of the Chairman and Chief Operating Officer
Recommendation 2.4 Establishment of Nomination Committee
Recommendation 2.5 Reporting on Principle 2
Recommendation 3.1 Directors’ and Key Executives’ Code of Conduct
Recommendation 3.2 Company Security Trading Policy
Recommendation 3.3 Reporting on Principle 3
Section
1.1
1.2
1.2
1.2
2.3
1.2, 1.4.6, 2.3.2 and the Direc-
tors’ Report
1.1
1.4.9
1.1 and 1.4.9
Recommendation 4.1 Attestations by Executive Chairman and Chief Operating Officer
1.4.11
Recommendation 4.2 Establishment of Audit Committee
Recommendation 4.3 Structure of Audit Committee
Recommendation 4.4 Audit Committee Charter
Recommendation 4.5 Reporting on Principle 4
Recommendation 5.1 Policy for Compliance with Continuous Disclosure
Recommendation 5.2 Reporting on Principle 5
Recommendation 6.1 Communications Strategy
Recommendation 6.2 Attendance of Auditor at General Meetings
Recommendation 7.1 Policies on Risk Oversight and Management
Recommendation 7.2 Attestations by Executive Chairman and Chief Operating Officer
Recommendation 7.3 Reporting on Principle 7
Recommendation 8.1 Evaluation of Board, Directors and Key Executives
Recommendation 9.1 Remuneration Policies
Recommendation 9.2 Establishment of Remuneration Committee
2.1
2.1.2
2.1
2.1
1.4.4
1.4.4
1.4.8
1.4.8
2.1.3
1.4.11
2.1.3
1.4.10
2.2.4
2.2
Recommendation 9.3 Executive and Non-Executive Director Remuneration
2.2.4.1 and 2.2.4.2
Recommendation 9.4 Equity-Based Executive Remuneration
Recommendation 9.5 Reporting on Principle 9
Recommendation 10.1 Company Code of Conduct
2.2.4.1
2.2.2 and 2.2.4
3
8 | HELIX RESOURCES LIMITED
Corporate Governance
1.
1.1
Board of Directors
Role of the Board
The Board’s role is to govern the Company rather than to manage it. In governing the Company, the Directors must act in the best
interests of the Company as a whole. It is the role of senior management to manage the Company in accordance with the direction and
delegations of the Board and the responsibility of the Board to oversee the activities of management in carrying out these delegated
duties.
In carrying out its governance role, the main task of the Board is to drive the performance of the Company. The Board must also ensure
that the Company complies with all of its contractual, statutory and any other legal obligations, including the requirements of any
regulatory body. The Board has the final responsibility for the successful operations of the Company.
To assist the Board carry out its functions, it has developed a Code of Conduct to guide the Directors, the Executive Chairman, the Chief
Operating Officer and other key executives in the performance of their roles.
1.2
Composition of the Board
To add value to the Company the Board has been formed so that it has effective composition, size and commitment to adequately
discharge it responsibilities and duties. The names of the Directors and their qualifications and experience are stated in Directors’
Report along with the term of office held by each of the Directors. Directors are appointed based on the specific governance skills
required by the Company and on the independence of their decision-making and judgment.
The Company recognises the importance of Non-Executive Directors and the external perspective and advice that Non-Executive
Directors can offer. Mr J denDryver and Mr G Wheeler are Non-Executive Directors. In addition to being Non-Executive Directors, they
also meet the following criteria for independence adopted by the Company.
An Independent Director is a Non-Executive Director and:
1.
2.
3.
4.
5.
6.
7.
is not a substantial shareholder of the Company or an officer of, or otherwise associated directly with, a substantial
shareholder of the Company;
within the last three years has not been employed in an executive capacity by the Company or another group member, or
been a Director after ceasing to hold any such employment;
within the last three years has not been a principal of a material professional adviser or a material consultant to the
Company or another group member. Or an employee materially associated with the service provided;
is not a material supplier or customer of the Company or another group member, or an officer of or otherwise associated
directly or indirectly with a material supplier or customer;
has no material contractual relationship with the Company or other group member other than as a Director of the
Company;
has not served on the Board for a period which could, or could reasonably be perceived to, materially interfere with the
Director’s ability to act in the best interests of the Company; and
is free from any interest and any business or other relationship which could, or could reasonably be perceived to,
materially interfere with the Director’s ability to act in the best interests of the Company.
1.3
Responsibilities of the Board
In general, the Board is responsible for, and has the authority to determine, all matters relating to the policies, practices, management
and operations of the Company. It is required to do all things that may be necessary to be done in order to carry out the objectives of the
Company.
Without intending to limit this general role of the Board, the principal functions and responsibilities of the Board include the following.
1.
2.
3.
4.
Leadership of the Organisation: overseeing the Company and establishing codes that reflect the values of the Company
and guide the conduct of the Board.
Strategy Formulation: working with senior management to set and review the overall strategy and goals for the Company
and ensuring that there are policies in place to govern the operation of the Company.
Overseeing Planning Activities: overseeing the development of the Company’s strategic plan and approving that plan as
well as the annual and long term budgets.
Shareholder Liaison: ensuring effective communications with shareholders through an appropriate communications policy
and promoting participation at general meetings of the Company.
Annual Report 2005 | 9
Corporate Governance
5.
6.
7.
8.
9.
Monitoring, Compliance and Risk Management: overseeing the Company’s risk management, compliance, control and
accountability systems and monitoring and directing the financial and operational performance of the Company.
Company Finances: approving expenses in excess of those approved in the annual budget and approving and monitoring
acquisitions, divestitures and financial and other reporting.
Human Resources: appointing, and, where appropriate, removing senior management as well as reviewing and
monitoring the performance of senior management in their implementation of the Company’s strategy.
Ensuring the Health, Safety and Well-Being of Employees: in conjunction with the senior management team, developing,
overseeing and reviewing the effectiveness of the Company’s occupational health and safety systems to ensure the well-
being of all employees.
Delegation of Authority: delegating appropriate powers to the Chief Operating Officer to ensure the effective day-to-day
management of the Company and establishing and determining the powers and functions of the Committees of the Board.
1.4
Board Policies
1.4.1 Conflicts of Interest
Directors must:
•
•
disclose to the Board actual or potential conflicts of interest that may or might reasonably be thought to exist between the
interests of the Director and the interests of any other parties in carrying out the activities of the Company; and
if requested by the Board, within seven days or such further period as may be permitted, take such necessary and
reasonable steps to remove any conflict of interest.
If a Director cannot or is unwilling to remove a conflict of interest then the Director must, as per the Corporations Act, absent himself or
herself from the room when discussion and/or voting occurs on matters about which the conflict relates.
1.4.2 Commitments
Each member of the Board is committed to spending sufficient time to enable them to carry out their duties as a Director of the Company.
1.4.3 Confidentiality
In accordance with legal requirements and agreed ethical standards, Directors and key executives of the Company have agreed to keep
confidential, information received in the course of the exercise of their duties and will not disclose non-public information except where
disclosure is authorised or legally mandated.
1.4.4 Continuous Disclosure
The Board has designated the Company Secretary as the person responsible for overseeing and coordinating disclosure of information
to the ASX as well as communicating with the ASX. In accordance with the ASX Listing Rules the Company immediately notifies the
ASX of information:
1.
2.
concerning the Company that a reasonable person would expect to have a material effect on the price or value of the
Company’s securities; and
that would, or would be likely to, influence persons who commonly invest in securities in deciding whether to acquire or
dispose of the Company’s securities.
Upon confirmation of receipt from the ASX, the Company posts all information disclosed in accordance with this policy on the Company’s
website in an area accessible by the public.
1.4.5 Education and Induction
New Directors undergo an induction process in which they are given a full briefing on the Company. Where possible, this includes
meetings with key executives, site visits of key operations, an induction package and presentations. Information conveyed to new
Directors include:
•
•
•
•
•
details of the roles and responsibilities of a Director;
formal policies on Director appointment as well as conduct and contribution expectations;
details of all relevant legal requirements;
access to a copy of the Board Charter;
Guidelines on how the Board processes function;
10 | HELIX RESOURCES LIMITED
Corporate Governance
•
•
•
•
•
details of past, recent and likely future developments relating to the Board;
background information on and contact information for key people in the organisation;
an analysis of the Company;
a synopsis of the current strategic direction of the Company including a copy of the current strategic plan and annual
budget; and
a copy of the Constitution of the Company.
In order to achieve continuing improvement in Board performance, all Directors are encouraged to undergo continual professional
development.
1.4.6
Independent Professional Advice
The Board collectively and each Director has the right to seek independent professional advice at the Company’s expense, up to
specified limits, to assist them to carry out their responsibilities.
1.4.7 Related Party Transactions
Related party transactions include any financial transaction between a Director and the Company and will be reported in writing to each
Board meeting. Unless there is an exemption under the Corporations Act from the requirement to obtain shareholder approval for the
related party transaction, the Board cannot approve the transaction.
1.4.8 Shareholder Communication
The Company respects the rights of its shareholders and to facilitate the effective exercise of those rights the Company is committed to:
•
•
•
•
Communicating effectively with shareholders through releases to the market via ASX, the Company’s website, information
mailed to shareholders and the general meetings of the Company;
giving shareholders ready access to balanced and understandable information about the Company and corporate
proposals;
making it easy for shareholders to participate in general meetings of the Company; and
requesting the external auditor to attend the annual general meeting and be available to answer shareholder questions
about the conduct of the audit and the preparation and content of the auditor’s report.
The Company also makes available a telephone number and email address for shareholders to make enquiries of the Company.
1.4.9
Trading in Company Shares
The Company has a Share Trading Policy under which Directors and certain employees and their associates may only trade in the
Company’s securities during the 30 days commencing immediately after each of the following (“trading window”):
•
•
•
•
the release by the Company of its half-yearly results to the ASX;
the release by the Company of its annual results to the ASX;
the close of the general meeting of the Company; and
the release by the Company of its Quarterly Reports to the ASX.
In addition, consistent with the law, designated officers are prohibited from trading in the Company’s securities while in the possession of
unpublished price sensitive information concerning the Company. Unpublished price sensitive information is information regarding the
Company, of which the market is not aware, that a reasonable person would expect to have a material effect on the price or value of the
Company’s securities.
Notice of an intention to trade must be given prior to trading in the Company’s securities as well as a confirmation that the person is not
in possession of any unpublished price sensitive information. The completion of any such trade by a Director must also be notified to the
Company Secretary who in turn advises the ASX.
1.4.10 Performance Review/Evaluation
Each year the Board conducts an evaluation of its performance. The evaluation for this and past financial years was conducted
internally. The Board’s performance was measured against both qualitative and quantitative indicators. The objective of this evaluation
was to identify strengths and weaknesses and provide best practice corporate governance to the Company. In future years this process
may carried out by an external consultant.
Annual Report 2005 | 11
Corporate Governance
1.4.11 Attestations by Executive Chairman and Chief Operating Officer
In accordance with the Board’s policy, the Executive Chairman and the Chief Operating Officer made the attestations recommended by
the ASX Corporate Governance Council as to the Company’s financial condition prior to the Board signing this Annual Report.
2.
Board Committees
2.1
Audit Committee
Due to the size and scale of operations of the Company, the full Board undertakes the role of the Audit Committee. Below is a summary
of the role and responsibilities of the Audit Committee. Further details are contained in the Audit Committee’s Charter.
2.1.1 Role
The Audit Committee is responsible for reviewing the integrity of the Company’s financial reporting and overseeing the independence of
the external auditors.
2.1.2 Composition
The Audit Committee consists of four members, being the full Board. All members can read and understand financial statements and are
otherwise financially literate. The details of the member’s qualifications may be found in their Director Profiles in the Directors’ Report.
The Audit Committee holds two meetings throughout a normal year and details of attendance of the members of the Audit Committee are
contained in the Directors’ Report.
2.1.3 Responsibilities
The Audit Committee reviews the audited annual and half-yearly financial statements and any reports which accompany published
financial statements before submission to the Board and recommends their approval.
The Audit Committee also recommends to the Board the appointment of the external auditor and each year, reviews the appointment of
the external auditor, their independence, the audit fee, and any questions of resignation or dismissal.
The Audit Committee is also responsible for establishing policies on risk oversight and management.
2.2
Remuneration Committee
Due to the size and scale of operations of the Company, the full Board undertakes the role of the Remuneration Committee.
2.2.1 Role
The role of the Remuneration Committee is to assist the Board in fulfilling its responsibilities in respect of establishing appropriate
remuneration levels and incentive policies for employees.
2.2.2 Composition
The full Board comprises the Remuneration Committee.
The Remuneration Committee holds meetings as required throughout the year.
2.2.3 Responsibilities
The responsibilities of the Remuneration Committee include setting policies, terms and conditions of employment for senior executives’
remuneration, reviewing and implementing the Company’s incentive schemes and superannuation arrangements, reviewing the
remuneration of both Executive and Non-Executive Directors and undertaking an annual review of the senior executives’ performance,
including, setting with the Executive Chairman goals for the coming year and reviewing progress in achieving these goals.
2.2.4 Remuneration Policy
The Senior Executives’ Remuneration Policy was approved by resolution of the Board in October 2004 and the Non-Executive Director
Remuneration Policy was also approved by resolution of the Board in January 2005.
2.2.4.1 Senior Executive Remuneration Policy
The Company is committed to remunerating its senior executives in a manner that is market-competitive and consistent with best
practice as well as supporting the interests of shareholders. Consequently, under the Senior Executive Remuneration Policy the
12 | HELIX RESOURCES LIMITED
Corporate Governance
remuneration of senior executive may be comprised of the following:
•
•
•
•
fixed salary that is determined from a review of the market and reflects core performance requirements and expectations;
a performance bonus designed to reward actual achievement by the individual of performance objectives and for
materially improved Company performance;
participation in share/option schemes with thresholds approved by shareholders; and
statutory superannuation.
By remunerating senior executives through performance and long-term incentive plans in addition to their fixed remuneration the
Company aims to align the interests of senior executives with those of shareholders and increase Company performance. Details of the
remuneration, including both monetary and non-monetary components, for each of the Executives during the year are included in the
Directors’ Report.
The Board may use its discretion with respect to the payment of bonuses, stock options and other incentive payments.
2.2.4.2 Non-Executive Director Remuneration Policy
Non-Executive Directors are paid their fees out of the maximum aggregate amount approved by shareholders for the remuneration of
Non-Executive Directors. Non-Executive Directors do not receive performance based bonuses and do not participate in equity schemes
of the Company.
Non-Executive Directors are entitled to statutory superannuation.
2.2.5 Current Director Remuneration
The aggregate amount of remuneration paid to Non-Executive Directors was approved by shareholders in 1996 and is currently
$150,000. Details of the remuneration received by all of the Company’s Directors are contained in the Directors’ Report.
2.3
Nomination Committee
2.3.1 Role
The role of a Nomination Committee is to help achieve a structured Board that adds value to the Company by ensuring an appropriate
mix of skills are present in Directors on the Board at all times.
As the whole Board only consists of four members, the Company does not have a nomination committee because it would not be a more
efficient mechanism than the full Board for focusing the Company on specific issues.
2.3.2 Responsibilities
The responsibilities of a Nomination Committee include devising criteria for Board membership, regularly reviewing the need for various
skills and experience on the Board and identifying specific individuals for nomination as Directors for review by the Board. The
Nomination Committee would also oversee management succession plans and evaluates the Board’s performance and makes
recommendations for the appointment and removal of Directors.
2.3.3 Criteria for selection of Directors
Directors are appointed based on the specific governance skills required by the Company. Given the size of the Company and the
business that it operates, the Company aims at all times to have at least one Director with experience in the Company’s industry,
appropriate to the Company’s market. In addition, Directors should have the relevant blend of personal experience in:
•
•
•
accounting and financial management;
legal skills; and
CEO-level business experience.
3.
Company Code Of Conduct
As part of its commitment to recognising the legitimate interests of stakeholders, the Company has an established a Code of Conduct to
guide compliance with legal and other obligations to legitimate stakeholders. These stakeholders include employees, clients, customers,
government authorities, creditors and the community as whole. This Code includes the following.
Responsibilities to Shareholders and the Financial Community Generally
The Company complies with the spirit as well as the letter of all laws and regulations that govern shareholders’ rights. The Company has
processes in place designed to ensure the truthful and factual presentation of the Company’s financial position and prepares and
maintains its accounts fairly and accurately in accordance with the generally accepted accounting and financial reporting standards.
Annual Report 2005 | 13
Corporate Governance
Responsibilities to Clients, Customers and Consumers
Each employee has an obligation to use their best efforts to deal in a fair and responsible manner with each of the Company’s clients,
customers and consumers. The Company for its part is committed to providing clients, customers and consumers with fair value.
Employment Practices
The Company endeavours to provide a safe workplace in which there is equal opportunity for all employees at all levels of the Company.
The Company does not tolerate the offering or acceptance of bribes or the misuse of Company assets or resources.
Obligations Relative to Fair Trading and Dealing
The Company aims to conduct its business fairly and to compete ethically and in accordance with relevant competition laws. The
Company strives to deal fairly with the Company’s customers, suppliers, competitors and other employees and encourages it employees
to strive to do the same.
Responsibilities to the Community
As part of the community the Company:
•
•
•
is committed to conducting its business in accordance with applicable environmental laws and regulations and
encourages all employees to have regard for the environment when carrying out their jobs;
encourages all employees to engage in activities beneficial to their local community; and
supports community charities.
Responsibility to the Individual
The Company is committed to keeping private information from employees, clients, customers, consumers and investors confidential and
protected from uses other than those for which it was provided.
Conflicts of Interest
Employees and Directors must avoid conflicts as well as the appearance of conflicts between personal interests and the interests of the
Company.
How the Company Complies with Legislation Affecting its Operations
Within Australia, the Company strives to comply with the spirit and the letter of all legislation affecting its operations. Outside Australia,
the Company will abide by local laws in all countries in which it operates. Where those laws are not as stringent as the Company’s
operating policies, particularly in relation to the environment, workplace practices, intellectual property and the giving of “gifts”, Company
policy will prevail.
How the Company Monitors and Ensures Compliance with its Code
The Board, management and all employees of the Company are committed to implementing this Code of Conduct and each individual is
accountable for such compliance. Disciplinary measures may be imposed for violating the Code.
14 | HELIX RESOURCES LIMITED
Directors’ Report
In respect of the financial year ended 30 June 2005, the Directors of Helix Resources Limited, (the parent
entity), 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 the whole of the financial year and up to the date of this
report:
Robert W Mosig MSc, FAusIMM, FAICD
Executive Chairman
Appointed 1 July 1985
Mr Mosig is a Geologist with over 25 years experience in platinum group metals, gold and diamond exploration within Australasia. Mr
Mosig was appointed Executive Chairman on 30 November 2004.
The following persons were appointed as Directors of Helix Resources Limited during the financial year:
Riccardo E Vittino
Executive Director / Chief Operating Officer / Company Secretary
Appointed 30 November 2004
Mr Vittino is an Accountant with 20 years experience in company secretarial and corporate management. He has held numerous
directorships in resource companies including Diamond Ventures and Platinum Australia.
Greg Wheeler
Non-Executive Director
Appointed 25 October 2004
Mr Wheeler has developed significant expertise over 13 years as a Partner of Chartered Accounting firms Grant Thornton and Deloitte
Touche Tohmatsu, prior to establishing his own consulting company. His consulting skills include:- company and business valuations;
advice to directors/shareholders on acquisitions or divestitures; commercial negotiations; risk assessment and mitigation.
John denDryver
Non-Executive Director
Appointed 25 October 2004
John den Dryver is a mining engineer with some 30 years mining experience in operational and corporate management. John joined
Mount Isa Mines in 1973. In 1982, John joined North Flinders Mines as the Company Mining Engineer. He became the Operations
Manager for North Flinders after the mine was commissioned in 1986 and over the next 10 years managed the operations as well as
developing the further discoveries in this region including the Callie Mine. In 1987 he was invited to join the Board of North Flinders to
become Executive Director- Operations. In 1997 after Normandy Mining took over North Flinders, John was appointed Executive
General Manager-Technical leading a team of specialist geologists, mining engineers and metallurgists in operational support, technical
review and due-diligence activities. In 2003, after the takeover of Normandy by Newmont Corporation John set up his own mining
consultancy business.
The following persons resigned as Directors of Helix Resources Limited during the financial year:
Dr G. Michael Folie BE (Civil), DIC, MSc (Econ) PhD
Non-Executive Chairman
Resigned 25 October 2004
Anthony R Martin BSc (Hons), MAusIMM
Director Exploration – Executive Director
Resigned 30 November 2004
Ian K Macpherson BCom, CA
Non-Executive Director
Resigned 30 November 2004
Bryce E Wauchope FCA, FAICD
Non-Executive Director
Resigned 30 November 2004
Annual Report 2005 | 15
Directors’ Report
DIRECTORSHIPS OF OTHER LISTED COMPANIES
Directorships of other listed companies held by directors in the 3 years immediately before the end of the
financial year are as follows:
Name
Riccardo Vittino
John den Dryver
Greg Wheeler
COMPANY SECRETARY
Riccardo Vittino
Company
Platinum Australia Limited
Nustar Mining Corporation Limited
Adelaide Resources Limited
Acclaim Exploration NL
Period of directorship
7 August 2000 - 20 August 2002
23 December 2003 – current
18 April 2005 – current
November 2002 to June 2003
Mr Vittino is an Accountant with 20 years experience in company secretarial and corporate
management.
FORMER PARTNER OF THE AUDIT FIRM
Greg Wheeler
Past Lead Partner – Assurance & Advisory Division
Deloitte Touche Tohmatsu
October 1999 – April 2002
Past Lead Partner – Assurance & Corporate Services Division
Grant Thornton
January 1987 – October 1999
PRINCIPAL ACTIVITIES
The principal activity of the Consolidated 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 loss of the Consolidated entity for the financial period, after provision for income tax was $1,297,895 (2004:
$4,769,008).
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
Following the decision in October 2004 to re-focus on exploration, Helix Resources has achieved several milestones which have resulted
in positive outcomes for the Company.
Firstly, considerable cost savings have been achieved through the company restructure, not only in the area of staffing, but also through
the reduction of corporate overheads.
Secondly, the Company has been able to attract joint venture partners to share the on-going exploration and/or development risk on
several of its projects.
A Joint Venture with Minotaur Exploration Ltd (“Minotaur”) over the Tunkillia Gold Project in South Australia was entered into in March of
this year. Under the terms of the Joint Venture, Minotaur may earn a 51% interest in the tenements for an expenditure of $5 million over
4 years, of which $1,000,000 is a first 18 month, minimum commitment. Under a proposed generative alliance with Oxiana Limited,
Minotaur may introduce Oxiana to the project, under terms to be finalised, in which case Minotaur/Oxiana may earn an additional 24.5%
(total 75.5% equity) by completing a pre-feasibility study on the project, and achieving an Indicated Resource of at least 1 million ounces
gold or gold-equivalent, in an additional 2 years. Minotaur will be the initial project operator.
Another Joint Venture was entered into with API Management Pty Ltd (“API”) (a company equally owned by Aquila Resources Limited
and AMCI Holdings Australia Ltd), to assess the Iron Ore potential on Helix’s Yalleen Project in the Hamersley Region of Western
Australia. Under the terms of the Joint Venture API will spend a total of $1.5 million over 4 years to earn a 70% interest.
Significant advances have been made at the Company’s West Pilbara Diamond Project, which is currently the subject of a Joint Venture
with DeBeers Australia Exploration Limited (“DeBeers”). The Helix West Pilbara Diamond Project comprises 11 tenements, 100% owned
by Helix, covering nearly 2,000 square kilometres and situated to the south of the Company’s Munni Munni PGM project in which
DeBeers may earn a 51% interest in diamonds by spending AUD$3 million by June 2006.
16 | HELIX RESOURCES LIMITED
Directors’ Report
In January of this year, Helix advised that initial reconnaissance and surface sampling by DeBeers had resulted in the discovery of two
kimberlites and three micro-diamonds on its West Pilbara Diamond tenements. The discovery is immediately adjacent to the DBAE
Balmoral Project tenements where recently a 32.85 tonne bulk sample produced 89 macro diamonds totalling 4.17 carats from the -8.0 +
1.0 mm fraction from the Blacktop kimberlite dyke and sill complex. A further 46 diamonds totalling 1.1 carats were also found in the
tailings re-treatment audit of the bulk sample.
The kimberlite and micro-diamonds found on the Helix ground are located on the extension of the Blacktop kimberlite trend found on
DeBeers’ ground. DeBeers’ drilling to date extends only to the boundary of the Helix tenements. There has been only limited sampling
carried out on the Helix side of the boundary.
Earlier this year, DeBeers advised Helix that as a result of a reassessment of DeBeers’ global exploration priorities, field activities in
Australia would be substantially reduced. As a consequence DeBeers and Helix are currently discussing a number of options with a view
to ensure that the diamond exploration potential of the ground held by both parties is assessed thoroughly.
The Company also carried out exploration activities on several of its own Projects. At the Mt Venn Copper and Nickel Project near
Laverton in Western Australia, twenty- four holes were drilled for a total of 3,031 metres, with most holes drilled to 120 metres depth on
60 degrees inclinations. The targets for the drilling were the EM and magnetic anomalies situated below the gossanous outcrops which
had been identified by the Company earlier in the year.
Best assay results were achieved in hole MVRC 10, which intersected 2 metres grading 1.2% Nickel (including 1m at 1.8%Ni) from a 4
metre wide zone grading 1.3% Copper. However, most drill holes contained broad widths of geochemically anomalous copper and nickel
varying from several metres up to 30 metres in drilled widths. Evidence of weak platinum group metal anomalism was detected in only
one drill hole specifically targeted into a titaniferous magnetite portion of the Mt Venn Intrusion.
By placing these assays into the context of a layered ultramafic intrusive, the Company is encouraged by these first pass drilling results.
The Mt Venn Intrusion has now been confirmed to have an extensive sulphide layer containing well developed copper and nickel
anomalism. Further exploration work must now focus on the identification of likely structural trap sites where economic levels of copper
and nickel concentrations may occur.
A RAB drilling program undertaken at the 100% owned Glenburgh Project during the year returned encouraging results including 8m at
3.8g/t and 7m at 2.1g/t gold. The latest drilling has improved the prospectivity of increasing the resource inventory, which now stands at
1.1Mt at 3.1g/t containing 108,000oz of gold. This new resource estimate is classed as inferred and complies with recommendations
under the JORC Code.
The Company reported a loss of $1,297,895 during the year, related essentially to the write down of carry forward exploration
expenditure of $796,052.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
In the opinion of the Directors, other than that disclosed elsewhere in this Report, there were no significant changes in the state of affairs
of the Consolidated entity that occurred during the period under review.
SUBSEQUENT EVENTS
There has not been any matter or circumstance, other than that referred to in the financial statements or notes thereto, that has arisen
since the end of the financial year, that has significantly affected, or may significantly affect, the operations of the Consolidated Entity, the
results of those operations, or the state of affairs of the Consolidated Entity in future financial years.
FUTURE DEVELOPMENTS
Disclosure of information regarding likely developments in the operations of the Consolidated Entity in future financial years and the
expected results of those operations is likely to result in unreasonable prejudice to the Consolidated Entity. Accordingly, this information
has not been disclosed in this report.
REMUNERATION REPORT
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 all board members. The Executive Officers of the Company are
employed under Service Agreements which have been in existence since May 1997. The Service Agreements are all identical in their
contents and only differ in remuneration levels. They have a duration of twelve months and renew automatically unless terminated by
either the Company by giving twelve months notice to the individual; or by the individual by giving six months notice to the Company. The
level of remuneration is not dependent on the satisfaction of any performance condition.
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
Annual Report 2005 | 17
Directors’ Report
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.
During the year certain non-executive directors retired and were paid a retirement benefit based on the policy in place at the time. The
policy recognised the length of time served by the individual as a non-executive director of the company. The company has largely
adopted the ASX Corporate Governance Council’s Principles of Good Corporate Governance and Best Practice Recommendations and
decided to remunerate its non-executive directors on an ongoing basis with no accrual or entitlement to a retirement benefit.
Remuneration packages contain the following key elements:
Primary benefits – salary / fees and performance based bonuses;
Post employment benefits – prescribed retirement benefit; and
Equity – share options granted under the executive share option plan as disclosed in note 17 to the financial statements.
The following table discloses the remuneration of the directors and executives of the company:
2005
Primary
Perfor-
mance
Based
Pay-
ment
$
Salary
& Fees
$
Post Employment
Equity
Non
Monet-
ary
Supera-
nnua-
tion
Pre-
scribed
Bene-
fits
$
$
$
Other
Retire-
ment
Bene-
fits
$
Options
% of
Remu-
nera-
tion
Other
Bene-
fits
Total
$
$
$
$
Directors
R W Mosig
156,750
R E Vittino
115,180
G Wheeler
19,267
J denDryver
18,826
G M Folie
31,570
I Macpherson
10,857
B Wauchope
9,832
A R Martin
118,850
Total
481,132
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12,000
12,000
-
-
2,718
-
1,025
10,639
38,382
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27,156
13.86
13,578
9.65
-
-
-
-
-
-
-
-
-
-
13,578
9.49
54,312
-
-
-
-
-
-
-
-
-
-
195,906
140,758
19,267
18,826
34,288
10,857
10,857
143,067
573,826
During the financial year retirement benefits of $50,000 each were paid to IK Macpherson and B Wauchope which had been accrued in
prior years.
Value of Options issued to directors
The value attributed to the Equity Option is calculated using the Black Scholes Model. No cash has been paid to the individuals. The
value of the Options will only be realised if and when the market price of Helix shares, as quoted by the Australian Stock Exchange, rises
above the Exercise Price of the options. Further details of the options are contained in note 16 to the financial statements.
Details of Directors’ appointment and retirement dates which occurred during the year are outlined below:
There are no other executives of the company or consolidated entity.
Name
Position
Date Appointed
Date Retired
Dr G M Folie
A R Martin
I K Macpherson
B E Wauchope
R E Vittino
G Wheeler
J denDryver
Non-executive Chairman
Executive Director / Director
Exploration
Non-executive Director
Non-executive Director
Executive Director / Chief
Operating Officer / Company
Secretary
Non-executive Director
Non-executive Director
30 November 2004
30 November 2004
30 November 2004
25 October 2004
30 November 2004
30 November 2004
30 November 2004
18 | HELIX RESOURCES LIMITED
Director’s Report
DIRECTORS’ AND EXECUTIVES’ SHARE OPTIONS
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 10 November 2003 in respect of the 2009 options. At the date
of this report directors and executives are entitled to purchase an aggregate of 3,450,000 ordinary shares of Helix Resources Limited
according to the following terms:
Directors
and Executives
Number of
Executive
Options
Held
Issuing Entity
Exercise Price
Expiry Date
Number of ordinary
shares under option
Robert W Mosig
533,333
Helix Resources Limited
Chairman
533,334
Helix Resources Limited
533,333
Helix Resources Limited
1,600,000
Anthony R Martin
316,668
Helix Resources Limited
Exploration Manager
316,666
Helix Resources Limited
316,666
Helix Resources Limited
$0.42
$0.46
$0.50
$0.42
$0.46
$0.50
29.03.2009
29.03.2009
29.03.2009
29.03.2009
29.03.2009
29.03.2009
Riccardo E Vittino
Executive Director
950,000
300,001
300,000
299,999
900,000
Helix Resources Limited
Helix Resources Limited
Helix Resources Limited
$0.42
$0.46
$0.50
29.03.2009
29.03.2009
29.03.2009
533,333
533,334
533,333
1,600,000
316,668
316,666
316,666
950,000
300,001
300,000
299,999
900,000
No options were granted as remuneration to directors or executives during the year.
DIRECTORS’ SHAREHOLDINGS
Director
*Fully Paid
*Listed Options
Staff Options
R W Mosig
R E Vittino
G J Wheeler
J den Dryver
Ordinary Shares
2,484,846
900,000
753,880
-
857,516
614,271
-
-
1,600,000
900,000
-
-
4,138,726
1,471,787
2,500,000
*
Directors’ interests in ordinary shares and options of the parent entity are shown at the date of this Directors’ Report.
OFFICERS’ INDEMNITY AND INSURANCE
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
Annual Report 2005 | 19
Directors’ Report
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.
ENVIRONMENTAL REGULATIONS
The Consolidated entity is subject to environmental regulations under laws of the Commonwealth and State. The Consolidated 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:
Board of Directors’
Meetings
Remuneration Committee
Meetings
Audit Committee
Meetings
Held*
Attended
Held*
Attended
Held
Attended
Dr G M Folie
R W Mosig
A R Martin
I K Macpherson
B E Wauchope
R E Vittino
G J Wheeler
J den Dryver
4
7
5
5
5
3
3
3
4
7
5
5
5
3
3
3
1
1
-
1
1
1
1
1
1
1
-
1
1
1
1
1
-
1
-
-
-
1
1
1
-
1
-
-
-
1
1
1
* Reflects the number of meetings held during the time that the Director held office during the year.
NON-AUDIT SERVICES
The directors are satisfied that the provision of non-audit services, during the year, by the auditor is compatible with the general standard
of independence for auditors imposed by the Corporations Act 2001 as the nature of the services was limited to the review of the 1 July
2004 A-IFRS balance sheet and the review of the company’s 2004 tax returns. Details of amounts paid or payable to the auditor for non-
audit services provided during the year by the auditor are outlined in note 24.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration is included on page 14 of the financial report.
Dated at Perth this 5th day of September 2005.
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
Executive Chairman
20 | HELIX RESOURCES LIMITED
Independence Decaration
Annual Report 2005 | 21
Independent Audit Report
22 | HELIX RESOURCES LIMITED
Independent Audit Report
Annual Report 2005 | 23
Directors’ Declaration
The Directors declare that:
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;
In the directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including
compliance with accounting standards and giving a true and fair view of the financial position and performance of the Consolidated
Entity; and
The directors have been given the declarations required by s295A of the Corporations Act 2001.
Signed in accordance with a resolution of the Directors made pursuant to s.295(5) of the Corporations Act 2001.
On behalf of the Directors
Robert W Mosig
Executive Chairman
Signed at Perth this 5th day of September 2005.
24 | HELIX RESOURCES LIMITED
Statement of Financial Position
as at 30 June 2005
CONSOLIDATED
COMPANY
Note
2005
$
2004
$
2005
$
2004
$
Current Assets
Cash assets
Receivables
Other
Total Current Assets
Non-Current Assets
Investments
Property, plant & equipment
Mineral interests
Other
Total Non-Current Assets
Total Assets
Current Liabilities
Payables
Provisions
Total Current Liabilities
Non Current Liabilities
Provisions
2
3
4
3
5
6
4
7
8
8
1,635,873
1,634,457
1,635,871
1,634,455
78,088
306,410
156,058
284,222
78,088
306,410
156,058
284,222
2,020,371
2,074,737
2,020,369
2,074,735
890
171,250
163,391
223,725
1,815
171,250
164,316
223,725
11,201,564
10,425,408
11,201,564
10,425,408
149,242
136,779
149,242
136,779
11,522,946
10,949,303
11,523,871
10,950,228
13,543,317
13,024,040
13,544,240
13,024,963
214,856
67,375
159,252
59,313
214,856
67,375
159,252
59,313
282,231
218,565
282,231
218,565
10,538
212,516
10,538
212,516
Total Non Current Liabilities
10,538
212,516
10,538
212,516
Total Liabilities
292,769
431,081
292,769
431,081
Net Assets
13,250,548
12,592,959
13,251,471
12,593,882
Equity
Contributed Equity
Accumulated Losses
9
11
43,567,055
41,611,571
43,567,055
41,611,571
(30,316,507)
(29,018,612)
(30,315,584)
(29,017,689)
Total Equity
13,250,548
12,592,959
13,251,471
12,593,882
Notes to the financial statements are included on pages 28 to 46
Annual Report 2005 | 25
Statement of Financial Performance
for the Financial Year Ended 30 June 2005
CONSOLIDATED
COMPANY
Note
2005
$
2004
$
2005
$
2004
$
12
12
Revenue from operating activities
Proceeds from sale of investments
Reversal of Directors’ Retirement
Provision
Write down of investments
Depreciation
Exploration and evaluation expenditure
written off
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 Investments
disposed
123,008
124,801
284,595
104,217
(54,501)
(56,993)
1,928,351
-
(111,000)
(51,270)
123,008
284,595
104,217
(54,501)
(56,993)
124,801
1,928,351
-
(111,000)
(51,270)
(796,052)
(4,533,390)
(796,052)
(4,533,390)
(97,162)
(3,426)
(26,378)
(30,871)
(83,997)
(300,626)
(94,095)
(141,015)
(126,275)
(74,438)
(139,391)
(47,217)
(557,874)
(112,646)
(97,162)
(3,426)
(26,378)
(30,871)
(83,997)
(300,626)
(94,095)
(141,015)
(126,275)
(74,438)
(139,391)
(47,217)
(557,874)
(112,646)
(108,000)
(749,852)
(108,000)
(749,852)
Other expenses from ordinary activities
(157,614)
(177,792)
(157,614)
(177,792)
Loss from ordinary activities before
income tax
Income tax expense relating to ordinary
activities
Net Loss
Total Changes in Equity Other than
those Resulting from Transactions with
Owners as Owners
Earnings / (Loss) per share
Basic (cents per share)
Diluted (cents per share)
11
18
20
20
(1,297,895)
(4,769,008)
(1,297,895)
(4,769,008)
-
-
-
-
(1,297,895)
(4,769,008)
(1,297,895)
(4,769,008)
(1,297,895)
(4,769,008)
(1,297,895)
(4,769,008)
(1.84)
(1.84)
(8.28)
(8.28)
Notes to the financial statements are included on pages 28 to 46
26 | HELIX RESOURCES LIMITED
Statement of Cash Flows
for the Financial Year Ended 30 June 2005
CONSOLIDATED
COMPANY
Note
2005
$
2004
$
2005
$
2004
$
Cash Flow From Operating Activities
Payments to suppliers and employees
(762,687)
(1,662,717)
(762,324)
(1,662,717)
Interest received
Other receipts
111,638
11,370
114,307
10,494
111,638
11,007
114,307
10,494
Net cash used in operating activities
2(b)
(639,679)
(1,537,916)
(639,679)
(1,537,916)
Cash Flow From Investing Activities
Payments for capitalised exploration & evaluation
expenditure
(1,552,208)
(4,252,865)
(1,552,208)
(4,252,865)
Payment for property, plant & equipment
(5,465)
(85,896)
(5,465)
(85,896)
Proceeds from sale of property, plant & equipment
Payments for shares – listed companies
363
-
-
(86,130)
363
-
-
(86,130)
Proceeds from sale of shares
284,595
1,928,351
284,595
1,928,351
Payments for security deposits
Proceeds from bills of exchange
(21,674)
(16,020)
(21,674)
(16,020)
-
995,905
-
995,905
Net cash used in investing activities
(1,294,389)
(1,516,655)
(1,294,389)
(1,516,655)
Cash Flow From Financing Activities
Proceeds from issue of shares/options
2,053,997
2,311,366
2,053,997
2,311,366
Share issue costs paid
(118,513)
-
(118,513)
-
Net cash provided by Financing Activities
1,935,484
2,311,366
1,935,484
2,311,366
Net increase/(decrease) in cash held
1,416
(743,205)
1,416
(743,205)
Cash at beginning of financial year
1,634,457
2,377,662
1,634,455
2,377,660
Cash at End of Financial Year
2(a)
1,635,873
1,634,457
1,635,871
1,634,455
Notes to the financial statements are included on pages 28 to 46
Annual Report 2005 | 27
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
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) Going Concern
The Directors have prepared the financial statements on a going concern basis, which contemplates continuity of normal business
activities and the realisation of assets and extinguishment of liabilities in the ordinary course of business.
The Company’s operations require it to raise capital on an ongoing basis to fund its planned exploration program and to
commercialise its tenement assets. If the Company does not raise further capital in the short term, it can continue as a going
concern by reducing planned, but not committed exploration expenditure until funding is available and/or entering into joint venture
arrangements.
The Directors believe the going concern basis of accounting is appropriate as the Company has a successful track record in
raising capital and believe they will be able to obtain further funding to commercialise the tenement assets in the form currently
envisaged.
Exploration expenditure has decreased on some projects during the financial year due to the Company entering into various joint
ventures, where exploration is funded by the joint venture partner. Joint ventures are detailed in note 21.
b)
Principles of Consolidation
The consolidated financial statements are prepared by combining the financial statements of all the entities that comprise the
Consolidated 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 3 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 Consolidated entity are eliminated in full.
c) Cash and Cash Equivalents
Cash on hand and in banks and short term deposits are stated at nominal value. For the purposes of the Statement of Cash
Flows, cash includes cash on hand and in banks, and money market investments readily convertible to cash within 90 days, net of
outstanding bank overdrafts.
d)
Income Tax
Tax-effect accounting principles are adopted whereby the income tax expense shown in the statement of financial performance 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.
The net future income tax benefit relating to tax losses and timing differences is not carried forward as an asset unless the benefit
is virtually certain of being realised.
28 | HELIX RESOURCES LIMITED
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
e)
Property, Plant and Equipment
Property, plant and equipment is stated at cost and is depreciated at rates based upon their expected useful lives to the
Consolidated 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
Diminishing value
10% - 33%
20% - 40%
Motor Vehicles
Diminishing value
22.5%
Mineral Interests, Exploration and Evaluation Expenditure
Exploration and evaluation 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.
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.
Investments
Investments in controlled entities are held at cost. Other 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.
Employee Benefits
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service 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 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.
g)
h)
i)
j) Interest in Joint Venture Operations
Interest in joint venture operations, where material, are brought to account by including in the respective classifications, the
Consolidated entity's share of the individual assets employed and liabilities and expenses incurred.
Details of interests in joint ventures are shown at Note 21.
k) Revenue Recognition
Revenue from the disposal of assets is recognised when the Consolidated entity has passed control of the goods or other assets
to the buyer. Interest on bank deposits is recognised as income as it accrues.
l)
Accounts Payable
Trade payables and other accounts payable are recognised when the Consolidated entity becomes obliged to make future
payments resulting from the purchase of goods and services.
m) Receivables
Other receivables are recorded at amounts due less any specific provision for doubtful debts.
Annual Report 2005 | 29
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
n) Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax GST), except:
where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition
of an asset or as part of an item of expense; or
for receivables and payables which are recognised inclusive of GST.
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.
o) 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.
p) Reclassification
Deposits with financial institutions of $227,686 at 30 June 2004 have been reclassified from ‘security deposits’ and disclosed as
current assets as these deposits had a maturity date greater than 90 days but less than 1 year ( see note 4).
30 | HELIX RESOURCES LIMITED
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
NOTES TO THE STATEMENT OF CASHFLOWS
2.
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
CONSOLIDATED
COMPANY
2005
$
2004
$
2005
$
2004
$
Cash at Bank and on Deposit
1,635,873
1,634,457
1,635,871
1,634,455
b) Reconciliation of loss from ordinary activities
after related income tax to net cash flows
from operating activities
Loss from Ordinary Activities after related income
tax
Non-cash flows in Operating Loss
(1,297,895)
(4,769,008)
(1,297,895)
(4,769,008)
Depreciation
56,993
51,270
56,993
51,270
Exploration and evaluation expenditure written off
796,052
4,533,390
796,052
4,533,390
Write down of investments
54,501
(459,204)
54,501
(459,204)
(Profit)/loss on sale of investments
(176,595)
(608,295)
(176,595)
(608,295)
Loss on sale of property, plant and equipment
584
1,467
584
1,467
Changes in Net Assets and Liabilities
(Increase)/Decrease in Assets
(Increase)/decrease in other receivables
77,970
(130,288)
77,970
(130,288)
Increase in prepayments
(12,977)
(3,114)
(12,977)
(3,114)
Increase/(decrease) in Liabilities
Increase/(Decrease) in trade payables
55,604
(11,129)
55,604
(11,129)
Provisions employee entitlements
(193,916)
(143,005)
(193,916)
(143,005)
Net Cash used in Operating Activities
(639,679)
1,537,916)
(639,679)
(1,537,916)
c) Non-cash Transactions
JA Bunting & Associates was issued 100,000 shares at $0.20c per share as option payment over Loongana project.
See note 9.
Annual Report 2005 | 31
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
3. RECEIVABLES & INVESTMENTS
CONSOLIDATED
COMPANY
2005
$
2004
$
2005
$
2004
$
78,088
78,088
156,058
156,058
78,088
78,088
156,058
156,058
Current
Other
Total Current Receivables
Non-Current
Shares in unlisted companies—at cost
890
55,391
Shares in controlled entities—-at cost (3a)
Shares in companies listed on a stock
exchange—at recoverable amount
-
-
890
925
55,391
925
-
108,000
-
108,000
Total Non-Current Receivables
890
163,391
1,815
164,316
Shares in companies listed on a
prescribed stock exchange at market value
-
108,000
-
108,000
3(a) Shares in controlled entities
Name
Country of Incorporation
Hillview Mining NL
Australia
Helix Mining Investments P/L
Australia
Percentage Held
2005
Percentage Held
2004
100%
100%
100%
100%
4. OTHER ASSETS
CONSOLIDATED
COMPANY
2005
$
2004
$
2005
$
2004
$
69,513
236,897
306,410
149,242
149,242
56,536
227,686
284,222
136,779
136,779
69,513
56,536
236,897
227,686
306,410
284,222
149,242
149,242
136,779
136,779
Current
Prepayments
Deposits – Financial Institutions
Total Other Assets— Current
Non-Current
Security Deposits
Total Other Assets—Non Current
32 | HELIX RESOURCES LIMITED
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
5. PROPERTY, PLANT AND EQUIPMENT
CONSOLIDATED AND COMPANY
Motor Vehicles
Plant &
Equipment
$
Gross Carrying Amount
Balance at 30 June 2004
Additions
Disposals
Balance at 30 June 2005
Accumulated Depreciation
Balance at 30 June 2004
Disposals
Depreciation
Balance at 30 June 2005
Net Book Value
30 June 2004
30 June 2005
432,485
5,465
(1,377)
436,573
233,812
(430)
51,356
284,738
198,673
151,835
$
50,024
-
-
50,024
24,972
-
5,637
30,609
25,052
19,415
Total
$
482,509
5,465
(1,377)
486,597
258,784
(430)
56,993
315,347
223,725
171,250
Aggregate depreciation has been allocated, whether recognised as an expense or capitalised as part of the carrying amount of other
assets during the year.
Plant and Equipment
Motor Vehicles
6. MINERAL INTERESTS
CONSOLIDATED
COMPANY
2005
$
2004
$
2005
$
2004
$
51,356
5,637
56,993
44,516
6,754
51,270
51,356
5,637
56,993
44,516
6,754
51,270
CONSOLIDATED
COMPANY
2005
$
2004
$
2005
$
2004
$
Balance at beginning of the financial year
10,425,408
10,423,932
10,425,408
10,423,932
Expenditure incurred during the year
1,572,208
4,534,866
1,572,208
4,534,866
Expenditure written off during the year
(796,052)
(4,533,390)
(796,052)
(4,533,390)
Balance at the end of the financial year
11,201,564
10,425,408
11,201,564
10,425,408
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 Consolidated
entity's interests in those areas for an amount at least equal to the carrying value. There may exist, on the Consolidated 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.
Annual Report 2005 | 33
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
CONSOLIDATED
COMPANY
2005
$
2004
$
2005
$
2004
$
214,856
159,252
214,856
159,252
41,454
25,921
67,375
36,559
22,754
59,313
41,454
25,921
67,375
36,559
22,754
59,313
-
204,217
-
204,217
10,538
10,538
8,299
212,516
10,538
10,538
8,299
212,516
7. CURRENT PAYABLES
Trade payables
8. PROVISIONS
Current
Provision for annual leave
Provision for long service leave
Non Current
Provision for Non-Executive Directors’
retirement
Provision for long service leave
9. CONTRIBUTED EQUITY
76,660,120 Fully Paid Ordinary Shares
(2004: 62,866,808)
16,437,863 Listed Options
(2004: 16,437,863)
43,409,956
41,454,472
43,409,956
41,454,472
157,099
157,099
157,099
157,099
Balance at end of financial year
43,567,055
41,611,571
43,567,055
41,611,571
34 | HELIX RESOURCES LIMITED
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
9. CONTRIBUTED EQUITY (cont’d)
Fully Paid Ordinary Shares
2005
2004
No.
$
No.
$
Balance at beginning of financial year
62,866,808
41,454,472
50,525,458
38,889,600
Issue of shares to Anglogold as part consideration for
purchase of Tunkillia project
-
-
1,250,000
250,000
Shareholder Purchase Plan and Placement
13,693,312
2,053,997
5,162,500
826,000
Share Issue Costs
Issue of shares to JA Bunting & Associates as Option
payment over Loongana Project
Exercise of Options to Fully Paid Shares
Share placement through Rights Issues
Balance at end of financial year
Listed Options
-
(118,513)
100,000
20,000
-
-
-
-
-
-
-
-
424,681
112,830
5,504,169
1,376,042
76,660,120
43,409,956
62,866,808
41,454,472
.
Balance at beginning of financial year
16,437,863
157,099
12,860,310
128,605
Issue of options to Anglogold as part consideration for
purchase of Tunkillia project.
Options issue through Rights Issue
Exercise of Options to Fully Paid Shares
-
-
-
-
-
-
1,250,000
32,500
2,752,234
-
(424,681)
(4,006)
Balance at end of financial year
16,437,863
157,099
16,437,863
157,099
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Listed options carry no votes until converted to fully paid ordinary shares.
10. RESERVES
Asset Revaluation Reserve
Balance at beginning of financial year
Transfer to accumulated losses balance of reserve
relating to assets sold
Balance at end of financial year
CONSOLIDATED
COMPANY
2005
$
2004
$
2005
$
2004
$
-
-
-
190,606
(190,606)
-
-
-
-
490,606
(490,606)
-
The asset revaluation reserve arose on the revaluation of non-current assets. During the prior year the asset was sold and accordingly
the portion of the asset revaluation reserve which related to that asset, was effectively realised, and transferred to accumulated losses.
Annual Report 2005 | 35
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
CONSOLIDATED
COMPANY
2005
$
2004
$
2005
$
2004
$
11.ACCUMULATED LOSSES
Balance at beginning of financial year
Transfer from Asset Revaluation Reserve
(29,018,612)
(24,440,210)
(29,017,689)
(24,739,287)
-
190,606
-
490,606
Net Loss attributable to members of the parent entity
(1,297,895)
(4,769,008)
(1,297,895)
(4,769,008)
Balance at end of financial year
(30,316,507)
(29,018,612)
(30,315,584)
(29,017,689)
12. LOSS FROM ORDINARY ACTIVITIES
Loss from ordinary activities before Income Tax includes the following items of revenue and expense:
a) Operating Revenue
Interest Revenue
Other
b) Non-Operating Revenue
Proceeds from Sale of listed securities in Diamond
Ventures NL
Proceeds from sale of RAMA Mines shares
C)- Expenses
Depreciation of non-current assets: Property, plant
and equipment
Exploration and evaluation expenditure written off
Operating lease rental expenses Minimum lease
payments
111,638
11,370
123,008
107,208
177,387
284,595
56,993
796,052
83,997
114,307
10,494
124,801
111,638
11,370
123,008
114,307
10,494
124,801
1,928,351
-
1,928,351
51,270
4,533,390
47,217
107,208
177,387
284,595
56,993
796,052
83,997
1,928,351
-
1,928,351
51,270
4,533,390
47,217
13. SALE OF ASSETS
Sales of assets in the ordinary course of business have given rise to the following profits / (losses):
NET PROFITS / (LOSSES)
Property, plant & equipment
Investments
14. COMMITMENTS
a) Operating Lease Commitments
Not later than 1 year
Later than 1 year but not later than 2 years
(584)
176,595
176,011
(1,467)
1,178,499
1,177,032
(584)
176,595
176,011
(1,467)
1,178,499
1,177,032
65,000
27,083
92,083
129,420
64,710
194,130
65,000
27,083
92,083
129,420
64,710
194,130
The term of the Operating Lease in existence over the Company’s head office was for an initial period of two years. As at balance date
there was a balance of seventeen months remaining. The Company has an option to renew the operating lease for a further period of
two years.
36 | HELIX RESOURCES LIMITED
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
b) Exploration Expenditure Commitments
In order to maintain current rights of tenure to exploration tenements, the company and consolidated entity are required to perform
minimum exploration work to meet the requirements specified by various State governments. These obligations can be reduced by
selective relinquishment of exploration tenure or application for expenditure exemptions. Due to the nature of the company and
consolidated entity’s operations in exploring and evaluating areas of interest, it is very difficult to forecast the nature and amount of future
expenditure. It is anticipated that expenditure commitments for the next twelve months will be tenement rentals of $105,891 (2004:
$202,166) and exploration expenditure of $747,766 (2004: $1,941,520).
DIRECTORS’ AND EXECUTIVES’ REMUNERATION
15.
The specified Directors of Helix Resources Limited during the year were:
•
•
•
•
•
•
•
•
R W Mosig (Chairman), Managing Director
R E Vittino (Executive), appointed 30.11.04 – Company Secretary / Chief Operating Officer
G Wheeler (Non-executive), appointed 25.10.04
J den Dryver (Non-executive), appointed 25.10.04
Dr G M Folie (Chairman), resigned 25.10.04
I K Macpherson (Non-executive), resigned 30.11.04
B E Wauchope (Non-executive), resigned 30.11.04
A R Martin (Executive), resigned 30.11.04 – Exploration Manager
There were no specified executives during the year.
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 all board members. Remuneration packages are reviewed and
determined with due regard to current market rates and are benchmarked against comparable industry salaries. The Executive Officers
of the Company are employed under Service Agreements which have been in existence since May 1997. The Service Agreements are
all identical in their contents and only differ in remuneration levels. They have a duration of twelve months and renew automatically
unless terminated by either the Company by giving twelve months notice to the individual; or by the individual by giving six months notice
to the Company.
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
2004
Salary &
Fees
Primary
Perfor-
mance
Based
Payment
$
-
-
(iii)56,250
(iii)35,625
-
-
91,875
$
40,125
11,223
230,308
131,981
30,094
27,094
470,825
127,154
127,154
(iii)33,750
33,750
Supera-
nnuation
Post Employment
Pre-
scribed
Benefits
Non
Mone-
tary
$
$
$
Other
Retire-
ment
Benefits
$
Equity
Options
Total
Other
Bene-
fits
$
$
$
-
-
-
-
-
-
-
-
-
-
1,110
12,000
10,519
-
3,000
26,629
12,000
12,000
-
-
-
-
-
-
-
-
-
(i)156,933
-
-
-
-
-
156,933
-
-
(ii)53,228
(ii)26,614
-
-
79,842
-
-
(ii)26,614
26,614
-
-
-
-
-
-
-
-
-
197,058
12,333
351,786
204,739
30,094
30,094
826,104
199,518
199,518
Directors
E W J Tyler
Dr G M Folie
R W Mosig
A R Martin
I K Macpherson
B E Wauchope
Total
Executives
R E Vittino
Total
(i)
Mr E W J Tyler received an Eligible Termination Payment of $156,933 upon his retirement on 16.4.04.
Annual Report 2005 | 37
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
(ii) Equity Options were issued to the Management Team comprising of Messrs R Mosig, A Martin and R Vittino after shareholder
approval was received at the Company’s 2003 Annual General Meeting. The value attributed to the Equity Options were calculated using
the Black Scholes Model based on the following input:
Grant date share price
Exercise price
Exercise volatility
Option life
Dividend yield
Risk-free interest rate
Issued 11 November
2003 – 1st tranche
$0.17
$0.42
82%
5.5 years
-
5.136%
Option Series
Issued 11 November
2003 – 2nd tranche
$0.17
$0.46
82%
5.5 years
-
5.136%
Issued 11 November
2003 – 3rd tranche
$0.17
$0.50
82%
5.5 years
-
5.136%
No cash has been paid to the individuals. The value of the Options will only be realised if and when the market price of Helix shares, as
quoted by the Australian Stock Exchange, rises above the Exercise Price of the options. Further details of the options are contained in
note 16 to the financial statements.
(iii) Messrs R Mosig, A Martin and R Vittino were granted a cash bonus during the year. The payments were made in recognition for
achievements during the year and were not related to specific targets being met or formed part of employment contracts. Details of the
payments are listed below:
•
•
•
Granted on 16 April 2004;
The payments were cash and taxed accordingly; and
The service and performance criteria used to determine the amount of the payments was reviewed by the remuneration
committee of the Company and included the acquisition of remaining 50% interest in Gawler Craton JV from AngloGold for $1.5
million; the completion of a Scoping Study on Area 223 with the results showing an undiscounted pre-tax cash surplus of over
$62 million before capital costs at an AUD$550 gold price; as well as Corporate achievements.
2005
Salary &
Fees
Directors
R W Mosig
R E Vittino
G Wheeler
J denDryver
G M Folie
I Macpherson
B Wauchope
A R Martin *
Total
$
156,750
115,180
19,267
18,826
31,570
10,857
9,832
118,850
481,132
Primary
Perfor-
mance
Based
Payment
$
-
-
-
-
-
-
-
-
-
Non
Monet-
ary
Post Employment
Pre-
scribed
Benefits
Supera-
nnua-
tion
Other
Retire-
ment
Benefits
$
Equity
Options
Other
Benefits
Total
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
12,000
12,000
-
-
2,718
-
1,025
10,639
38,382
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27,156
13,578
-
-
-
-
-
13,578
54,312
-
-
-
-
-
-
-
-
-
195,906
140,758
19,267
18,826
34,288
10,857
10,857
143,067
573,826
* Mr Martin resigned as director on 30 November 2004 and was appointed as an executive for the period from 1 December 2004 to 30
June 2005. Remuneration during this period as executive was $72,936.
16. EXECUTIVE SHARE OPTION PLAN
As at 30 June 2005 the Company had issued 3,450,000 share options (30 June 2004 3,450,000). 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:
Executive Share Option Plan
Balance at beginning of financial year (i)
Cancelled during the financial year (ii)
Granted during the financial year (iii)
Exercised during the financial year (iv)
Balance at end of financial year (v)
2005
No.
3,450,000
-
-
-
3,450,000
Weighted average
exercise price
$0.46
-
-
-
$0.46
2004
No.
3,450,000
(2,200,000)
2,200,000
-
3,450,000
Weighted average
exercise price
$0.46
$1.00
$0.46
-
$0.46
38 | HELIX RESOURCES LIMITED
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
Balance at beginning of financial year
Options - Series
No.
Vested
Unvested
Grant Date
Expiry Date
Issued 26 May 1999
Issued 26 May 1999
Issued 26 May 1999
Issued 11 Nov 2003
Issued 11 Nov 2003
Issued 11 Nov 2003
416,665
416,667
416,668
733,335
733,333
733,332
3,450,000
416,665
416,667
416,668
733,335
-
-
-
-
-
-
733,333
733,332
26/5/99
26/5/99
26/5/99
11/11/03
11/11/03
11/11/03
1,983,335
1,466,665
29/3/09
29/3/09
29/3/09
29/3/09
29/3/09
29/3/09
(ii) Cancelled during the financial year
There were no options cancelled during the year ended 30 June 2005.
Exercise
Price
$
$0.42
$0.46
$0.50
$0.42
$0.46
$0.50
Fair value at
grant date
Not valued
Not valued
Not valued
9.36c per option
8.84c per option
8.37c per option
Options cancelled during the year ended 30 June 2004 were as follows:
Options - Series
No.
Grant Date
Expiry Date
Issued 24 May 2001
Issued 24 May 2001
Issued 24 May 2001
733,335
733,333
733,332
2,200,000
24/5/01
24/5/01
24/5/01
14/5/05
14/5/05
14/5/05
Exercise Price
$
$0.80
$1.00
$1.20
(iii) Granted during the financial year
There were no options granted during the year ended 30 June 2005
Options granted during the year ended 30 June 2004 were as follows:
Options - Series
No.
Grant Date
Expiry Date
First Tranche - Issued 11 Nov 2003
Second Tranche - Issued 11 Nov 2003
Third Tranche - Issued 11 Nov 2003
733,335
733,333
733,332
2,200,000
11/11/03
11/11/03
11/11/03
29/3/09
29/3/09
29/3/09
Exercise
Price
$0.42
$0.46
$0.50
Fair Value Received
$
-
-
-
(iv) Exercised during the financial year
There were no options exercised during the financial years ended 30 June 2005 and 2004.
(v) Balance at end of the financial year
Options – Series
No.
Vested
No.
Un-
vested
No.
Grant
Date
Expiry
Date
Issued 26 May 1999
Issued 26 May 1999
Issued 26 May 1999
First Tranche - Issued 11 Nov 2003
Second Tranche - Issued 11 Nov 2003
Third Tranche - Issued 11 Nov 2003
416,665
416,665
-
26/5/99
29/3/09
416,667
416,668
733,335
733,333
733,332
3,450,000
416,667
416,668
733,335
733,333
-
2,716,668
-
-
-
-
733,332
733,332
26/5/99
26/5/99
11/11/03
11/11/03
11/11/03
29/3/09
29/3/09
29/3/09
29/3/09
29/3/09
Exer-
cise
Price
$
$0.42
$0.46
$0.50
$0.42
$0.46
$0.50
Fair value at grant
date
Not valued
Not valued
Not valued
9.36c per option
8.84c per option
8.37c per option
Fair value of consideration received is measured as the nominal value of cash receipts on conversion. The fair value of shares at the
date of their issue is measured as the market value at close of trade on the date of their issue.
Employee share options carry no rights to dividends and no voting rights.
The options issued on 26 May 1999 which remain on issue at the end of the financial year ended 30 June 2004 are fully vested.
Annual Report 2005 | 39
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
In accordance with the Notice of Annual General Meeting 2003, options issued during the year ended 30 June 2004 vest at the following
dates:
•
•
•
First tranche of options issued at $0.42 vest immediately.
Second tranche of options issued at $0.46 vest 12 months from issue date.
Third tranche of options issued at $0.50 vest 24 months from issue date.
In accordance with the terms of the executive share option plan, options may be exercised at any time from the date the vesting period
ends to the date of their expiry.
The difference between the total market value of options issued during a 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’ remunerations in respect of that financial year as disclosed in note 15 to the financial statements. The amounts are
disclosed in remuneration in respect of the financial years over which the entitlement was earned.
Consideration received on the exercise of executive options is recognised in contributed equity. During the financial year no options were
exercised, hence no amount was recognised in contributed equity arising from the exercise of executive options (2004: $nil)
17. RELATED PARTY AND DIRECTORS’ DISCLOSURES
a) Other Transactions with Specified Directors
The loss from ordinary activities before income tax includes the following items of expenses that resulted from transactions
other than remuneration with specified directors or their personally-related entities. Transactions between related parties are
on normal commercial terms and conditions unless otherwise stated.
(i) During the year, Ord Partners provided professional services to the value of $16,166 (2004 $13,089) payable within 30 days
from date of invoice (net of GST). Mr I K Macpherson, a Director, has significant influence in Ord Partners.
Greg Wheeler Consulting Pty Ltd provided professional services to the value of $10,000 (2004 nil) payable within 30 days
from date of invoice (net of GST). Mr Greg Wheeler, a Director, has significant influence in Greg Wheeler Consulting Pty Ltd.
There were no balances outstanding at 30 June 2005 to either Mr I K Macpherson or Mr Greg Wheeler.
b) Specified Directors’ Equity Holdings
Fully paid ordinary shares issued by Helix Resources Limited
Balance @
1/7/04
Granted as
remuneration
No.
No.
Received on
exercise of
options
No.
Net other
change
Balance @
30/6/05
Balance held
nominally
No.
No.
No.
Specified Directors
R W Mosig
R E Vittino
G Wheeler
J den Dryver
A R Martin
I K Macpherson
B Wauchope
Total
2,484,846
442,500
-
-
262,095
267,667
962,449
4,419,557
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,484,846
457,500
753,880
-
-
(267,667)
(962,449)
(18,736)
900,000
753,880
-
262,095
-
-
4,400,821
-
-
-
-
-
-
-
-
It should be noted that Messrs Macpherson and Wauchope resigned on 30 November 2004 and therefore the balance of securities held
as at 30 June 2005 is nil as they are no longer specified directors and therefore the net change of 1,230,116 is not as a result of the sale
of any securities whilst a specified directors.
40 | HELIX RESOURCES LIMITED
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
Listed Share Options issued by Helix Resources Limited
Bal @ 1/7/04
Granted as
remuneration
Exercised
Other change
Bal @ 30/6/05
Balance held
nominally
No.
No.
No.
No.
No.
No.
Specified
Directors
R W Mosig
R E Vittino
G.Wheeler
J. den Dryver
A R Martin
I K Macpherson
B Wauchope
Total
857,516
614,271
-
-
85,538
182,002
120,306
1,859,633
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(182,002)
(120,306)
(302,308)
857,516
614,271
-
-
85,538
-
-
1,557,325
-
-
-
-
-
-
-
-
It should be noted that Messrs Macpherson and Wauchope resigned on 30 November 2004 and therefore the balance of securities held
as at 30 June 2005 is nil as they are no longer specified directors and therefore the net change of 302,308 is not as a result of the sale of
any securities whilst a specified director.
Executive Share Options issued by Helix Resources Limited
Other
change
Bal @
1/7/04
Exer-
cised
Granted
as re-
munerat
ion
Bal @
30/6/05
Bal vested
@ 30/6/05
No.
No.
No.
No.
No.
No.
Vested
but not
exer-
cise-
able
No.
Vested
and exer-
cisable
Options
vested
during
year
No.
No.
Specified
Directors
R W Mosig
R E Vittino
G Wheeler
J denDryver
A R Martin
Total
1,600,000
900,000
-
-
950,000
3,450,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,600,000
900,000
-
-
950,000
1,233,334
716,667
-
-
766,667
3,450,000
2,716,668
-
-
-
-
-
-
1,233,334
716,667
-
-
766,667
366,667
183,333
-
-
183,333
2,716,668
733,333
Each executive share option converts into 1 ordinary share of Helix Resources Limited on exercise. No amounts are paid or payable by
the recipient on receipt of the option.
During the financial year, no executive share options were exercised by specified directors and executives.
MR R.W. Mosig, Mr A.R. Martin and MR R.E. Vittino were issued options on 11 November 2003. The fair value of the options issued
were as follows:
Mr R.W. Mosig
Messrs A R Martin & R E Vittino
366,667 options @ 9.36c (first tranche)
366,667 options @ 8.84c (second tranche)
366,667 options @ 8.37c (third tranche)
183,334 options @ 9.36c (first tranche)
183,334 options @ 8.84c (second tranche)
183,334 options @ 8.37c (third tranche)
Further details of the options granted during the year are contained in note 15 and 16 to the financial statements.
Annual Report 2005 | 41
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
18. INCOME TAX
CONSOLIDATED
2004
2005
COMPANY
2005
2004
Loss before income tax
(1,297,895)
(4,769,008)
(1,297,895)
(4,769,008)
Income Tax Expense:
Income tax expense/(benefit) calculated at 30%
(389,369)
(1,430,702)
(389,369)
(1,430,702)
(Increase)/Decrease in income tax benefit due to:
- non-deductible expenses
- Share issue costs deductible
4,739
(7,111)
71,884
-
4,739
(7,111)
71,884
-
Benefit of tax losses not brought to account as an asset
391,741
1,358,818
391,741
1,358,818
Income tax expense attributable to operating loss
-
-
-
-
As of 30 June 2005, the parent entity and its controlled entities have future income tax benefits not brought to account as assets in
relation to tax losses of the parent entity of $10,200,380 (2004: $9,996,914), Consolidated entity of $10,797,624 (2004: $10,627,104),
available to offset against future year's taxable income. The benefit will only be obtained if:
a)
the Company and Consolidated 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 Company and Consolidated 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.
b)
c)
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 Company and Consolidated entity has not been recognised
in the financial statements.
19. SEGMENT INFORMATION
The Consolidated 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.
20. EARNINGS PER SHARE
Basic loss per share
Diluted loss per share
COMPANY
2005
Cents per share
2004
Cents per share
(1.84)
(1.84)
(8.28)
(8.28)
The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:
Earnings / (Loss) (a)
(1,297,895)
(4,769,008)
2005
$
2004
$
Weighted average number of ordinary shares (b)
70.613,737
62,866,808
(a)
Earnings used in the calculation of basic earnings per share is net loss after tax of $1,297,895 (2004:$4,769,008)
2005
No
2004
No
42 | HELIX RESOURCES LIMITED
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
(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).
Diluted Loss 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)
(1,297,895)
(4,769,008)
2005
$
2004
$
Weighted average number of ordinary shares and
potential ordinary shares (b)
12 months to 30 June 2005
No.
12 months to 30 June 2004
No.
70,613,737
62,866,808
(a) Earnings used in the calculation of diluted loss per share is net loss after tax of $1,297,895 (2004: $4,769,008).
(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
2005
No.
3,450,000
16,437,863
2004
No.
3,450,000
16,437,863
INTEREST IN JOINT VENTURES
21.
The parent entity has entered into the following unincorporated joint ventures:
Joint Venture Project
Percentage Interest
Principal Exploration Activities
Menzies
Loongana
Pilbara Diamonds
Tunkillia
Yalleen
38%(2004: 49%) Diluting (Heron Resources Limited 62%)
Nickel
90%(2004: 90%) Diluting (J A Bunting & Associates Pty Ltd
10%)
100%(2004:100%) Diluting (DeBeers Australia Exploration
Limited)
100% (2004: nil) Diluting (Mintoaur Exploration)
100% (2004: nil) Diluting (API Management Pty Ltd)
Platinum Group Metals
Diamonds
Gold
Iron Ore
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
entity’s interest in exploration expenditure in the above mentioned joint ventures is included in note 6 and at 30 June 2005 is $399,220
(2004 : $655,175).
Annual Report 2005 | 43
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
22. FINANCIAL INSTRUMENTS
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.
The Consolidated entity's exposure to interest rate risk and effective weighted average interest rate for classes of financial assets is set
out below:
Average
Interest
Rate
5.07%
5.17%
Fixed
Interest
Rate
$
-
-
1,635,673
-
1,635,673
-
-
-
-
-
5.25%
5.00%
-
-
1,634,257
-
1,634,257
Floating Interest Rate
Maturity
Less than
1 year
More than
1 Year
$
-
-
-
-
-
236,897
236,897
149,242
149,242
-
-
-
-
-
-
-
-
-
-
-
-
227,686
227,686
136,779
136,779
-
-
-
-
-
-
-
-
-
Non
Interest
Bearing
$
41,699
890
200
-
42,789
214,856
77,913
292,769
34,539
163,391
200
-
198,130
159,252
271,829
431,081
Total
$
41,699
890
1,635,873
386,139
2,064,601
214,856
77,913
292,769
34,539
163,391
1,634,457
364,465
2,196,852
159,252
271,829
431,081
2005
Financial Assets
Other Receivables
Investments
Cash assets
Security deposits and deposits
at financial institutions
Financial Liabilities
Trade Payables
Employee Entitlements
2004
Financial Assets
Other Receivables
Investments
Cash assets
Security deposits and deposits
at financial insitutions
Financial Liabilities
Trade Payables
Employee Entitlements
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.
c) Credit Risk
Credit Risk refers to the risk that counterparty will default on, its contractual obligations resulting in financial loss to the Consolidated
entity. The Consolidated 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 Consolidated entity measures
risk on a fair value basis.
The maximum credit risk on financial assets of the Consolidated 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.
d) Net Fair Value of Financial Assets and Liabilities
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. The market value of listed equity
investments has been disclosed in Note 4 to the financial statements. 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.
44 | HELIX RESOURCES LIMITED
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
23. EMPLOYEE ENTITLEMENTS
The aggregate employee entitlement liability recognized and included in the financial statements is as follows:
Provision for employee entitlements:
Current (Note 8)
Non-Current (Note 8)
Number of employees at end of finan-
cial year
24. REMUNERATION OF AUDITORS
a) Auditor of the Parent Entity
Auditing the financial report
Taxation services
Other services – A-IFRS
CONSOLIDATED
COMPANY
2005
$
2004
$
2005
$
2004
$
67,375
10,538
77,913
59,313
212,516
271,829
67,375
10,538
77,913
59,313
212,516
271,829
No
8
2005
$
No
9
2004
$
No
8
2005
$
No
9
2004
$
27,000
6,300
7,700
41,000
39,000
7,700
2,300
49,000
27,000
6,300
7,700
41,000
39,000
7,700
2,300
49,000
The auditor of Helix Resources Limited is Deloitte Touche Tohmatsu.
25. IMPACTS OF ADOPTING THE AUSTRALIAN EQUIVALENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS
The Australian Accounting Standards Board (AASB) has issued Australian equivalents to International Financial Reporting Standards
(“A-IFRS”) for application to reporting periods beginning on or after 1 January 2005. Helix Resources Limited has commenced reviewing
the transition from its current policies to A-IFRS. The adoption of A-IFRS will be first reflected in the financial statements for the half-year
ending 31 December 2005 and the year ending 30 June 2006.
Under AASB1 the Company and Consolidated Entity, in complying with A-IFRS for the first time is required to restate its comparative
financial statements to amounts reflecting the application of A-IFRS to that comparative period. Most adjustments required on transition
to A-IFRS will be made, retrospectively, against opening retained earnings as at 1 July 2004.
At the date of this financial report, the Company and Consolidated Entity have substantially completed the assessment of accounting
policy alternatives on transition to A-IFRS, and A-IFRS accounting policies that will be adopted from 1 July 2005. In addition, the
Company and Consolidated Entity are in the process of completing its analysis of the likely impact on the results and financial position of
the Company and Consolidated Entity.
Key areas where accounting policies are likely to change and may impact on the financial statements of the Company and Consolidated
Entity include the following:
(a) Capitalisation of Exploration and Evaluation Costs
AASB 6 Exploration for and Evaluation of Mineral Resources permits the area of interest method of accounting to continue for
exploration and evaluation expenditure and thus AASB 6 should provide outcomes consistent with those under the existing standard
AASB 1022 Accounting for the Extractive Industries in accounting for the initial recognition of exploration and evaluation assets.
Annual Report 2005 | 45
Notes to the Financial Statements
for the Financial Year Ended 30 June 2005
In addition, AASB 6 requires an annual assessment of impairment for exploration and evaluation assets using four indicators of
impairment. These indicators are consistent with the initial recognition criteria of the existing standard and thus it is not expected that
there will be a significant impact on results arising from the impairment testing requirements.
(b) Income Tax
In accordance with Australian Standard AASB 112 Income Taxes, deferred tax balances are determined using the balance sheet method
which calculates temporary differences based on the carrying amounts of the Company’s and Consolidated Entity’s assets and liabilities
in the statement of financial position and their associated tax bases. This represents a fundamental change to the way the Company and
Consolidated Entity currently calculates its tax balances, where deferred tax balances are determined using the income statement
method. The Company is currently evaluating the impacts of AASB 112 on the financial statements of the company and the
consolidated entity. The Company and Consolidated Entity have carried forward tax losses which have not been recognised as deferred
tax assets in the 30 June 2005 financial statements as they do not satisfy the ‘virtually certain’ criteria under current Australian GAAP.
Although the Company’s evaluation of the impacts of AASB 112 is not complete, the Company believes that these losses will also not be
recognised as deferred tax assets under A-IFRS because at this stage it is believed that they will not meet the ‘probable’ recognition
criteria under A-IFRS. The Company and Consolidated Entity may also be required to recognised additional deferred tax liabilities on
transition to A-IFRS, however the impacts, if any, is not yet determinable.
(c) Provision for Rehabilitation and Restoration
In accordance with Australian Standard AASB 137 Provisions, Contingent Liabilities and Contingent Assets, the Company and
Consolidated Entity will be required to fully provide, based on discounted future cash flows, for rehabilitation and restoration where there
is a legal or constructive obligation. A corresponding asset, net of depreciation to the date of transition will be recognised and be
depreciated together with development assets. The Company and Consolidated Entity will be required to recognise the unwinding of the
discount in relation to the provision applied directly as an interest expense. As the Company performs restoration activity on a continuing
basis, the impact of these changes are likely to be immaterial.
(d) Share Based Payments
Under Australian Standard AASB 2 Share-based Payment, the Company and Consolidated Entity will be required to determine the fair
value of options issued to employees and recognise an expense in the Statement of Financial Performance. For options on issue on the
application of AASB 2 an adjustment for their recognition will be made against opening retained earnings. The consolidated entity had
733,332 share options that were issued on 11 November 2003 and unvested as at 1 January 2005.
As a consequence share based payment expense will increase by $30,690 (Consolidated Entity $30,690) for the year ended 30 June
2005 and be recognised as an employee equity – settled benefit reserve. The increase in the opening accumulated loss at 1 July 2004 in
respect of years prior to fiscal 2005 will be $19,507.
The Company and Consolidated Entity will not be recognising share options issued on 11 November 2003 and vested prior to 1 January
2005 as permitted by AASB1.
Revenue
(e)
Although not impacting upon the profit of the Company and Consolidated Entity, the adoption of A-IFRS will result in a number of
transactions being recorded on a “net” rather than “gross” basis. In addition the adoption of A-IFRS results in the reclassification of
proceeds from the sale of non current assets from “revenue from ordinary activities” to “other income and expense” items in the
statement of financial performance.
As a consequence, proceeds from the sale of investments will decrease by $284,595 (Company $284,595) and the written down value of
investments disposed will decrease by $108,000 (Company $108,000). The difference is a gain on sale of non current assets of
$176,595 (Company $176,595) which will be recognized for the financial year ended 30 June 2005 as part of “other income”. This is a
reclassification and will not impact upon the profit and loss of the Company and Consolidated Entity.
Financial Instruments
(f)
The Company and Consolidated Entity have elected not to retrospectively apply AASB132 and 139. Accordingly there are no financial
impacts on the financial statements in relation to these two standards as at 30 June 2005.
Property, plant and equipment
(g)
On initial adoption of A-IFRS items of plant and equipment are measured at the A-IFRS cost. The directors have not elected to use fair
value or revaluation as deemed cost to measure an item of property, plant and equipment.
26. ADDITIONAL COMPANY INFORMATION
Helix Resources Limited is a listed public company, incorporated and operating in Australia.
Registered Office
9 Richardson Street
WEST PERTH WA 6005
Tel (08) 9321 2644
Principal Place of Business
9 Richardson Street
WEST PERTH WA 6005
Tel (08) 9321 2644
46 | HELIX RESOURCES LIMITED
Shareholding Information
Analysis of Shareholders as at 5th September 2005
NUMBER OF SHARES HELD
Spread of Holdings
1–1000
1,001–5,000
5,001–10,000
10,001–100,000
100,001and over
Total
Number of Share-
holders
Number of Shares
587
816
428
743
107
2,681
342,982
2,304,665
3,629,588
25,866,979
44,516,516
76,660,730
Number of shareholders holdingless than a marketable parcel 1,153
1,530,474
PERCENTAGE HELD BY 20 LARGEST SHAREHOLDERS
1
2
3
4
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Shareholder
Yandal Investments Pty Ltd
Cairnglen Investments Pty Ltd
National Nominees Limited
Invia Custodian Pty Ltd
Colter Holdings Group
AngloGold Australia Limited
Niddrie Holdings Pty Limited
ANZ Nominees Limited
Zero Nominees Pty Ltd
Blamco Trading Pty Ltd
Nefco Nominees Pty Ltd
Mr. Maxwell Alfred Kippe
Equities Trustees Limited
Mr. Abdelaziz Soliman
Irrewarra Investments Pty Ltd
Gee Vee Pty Ltd
Mr. John Egan
Yan’s Investments Pty Ltd
Mr. John Halaska
Mr. Philip Broadley
Top 20 Total
Shares
6,734,406
5,118,912
3,083,158
2,928,362
2,547,179
1,666,667
1,129,115
1,014,448
886,667
850,000
674,367
600,000
521,250
510,000
480,942
453,880
450,000
450,000
419,622
407,668
30,926,643
%
8.78
6.68
4.02
3.82
3.32
2.17
1.47
1.32
1.16
1.11
0.88
0.78
0.68
0.67
0.63
0.59
0.59
0.59
0.55
0.53
40.32
VOTING RIGHTS
One vote for each ordinary share held in accordance with the Company's Constitution.
SUBSTANTIAL SHAREHOLDERS
Shareholder
Cairnglen Investments Pty Ltd
Yandal Investments Pty Ltd
DIRECTORS' INTEREST IN SHARE CAPITAL
DIRECTORS’ SHAREHOLDINGS
Director
R W Mosig
R E Vittino
G J Wheeler
J den Dryver
Shares
7,268,024
6,734,406
% of
Issued Capital
9.48
8.78
Fully Paid
Listed Options
Staff Options
Ordinary Shares
2,548,179
900,000
753,880
--
4,202,059
857,516
614,271
--
--
1,600,000
900,000
--
--
1,471,787
2,500,000
Annual Report 2005 | 47
Shareholding Information
Analysis of Optionholders as at 5th September 2005
NUMBER OF OPTIONS HELD
Spread of Holdings
Number of Option Holders
Number of Options
1–1000
1,001–5,000
5,001–10,000
10,001–100,000
100,001and over
TOTAL
PERCENTAGE HELD BY 20 LARGEST OPTIONHOLDERS
234
261
101
156
36
788
110,296
679,091
762,573
4,807,768
10,078,135
16,437,883
Optionholder
Options
%
AngloGold Australia Limited
1,287,281
1.
2.
3.
4.
5.
6.
7.
8.
9.
Colter Holdings Group
Mr Shaun Redmond
City Corp Pty Ltd
Zero Nominees Pty Ltd
Mr. Abdelaziz Soliman
Technica Pty Ltd
Yandal Investments Pty Ltd
Mr. John Halaska
10, Mr BJ Collins & Mrs SL Collins
11. Mr. Andrew Bruce Doak
12. Mr SM Baker
13. Mr CD Rose
14.
15.
16.
Arco Four Investments Pty Ltd
Truwest Pty Ltd
ANZ Nominees Limited
17. Mr. Neil John Strong
18.
19.
20.
Karalco Pty Ltd
Invia Custodian Pty Ltd
Jomot Pty Ltd
Top 20 Total
857,182
600,000
600,000
599,800
510,000
484,703
411,470
330,417
300,000
300,000
254,259
250,000
250,000
236,168
232,927
230,000
217,500
210,000
202,963
7.83
5.21
3.65
3.65
3.65
3.10
2.95
2.50
2.01
1.82
1.82
1.55
1.52
1.52
1.44
1.42
1.40
1.32
1.28
1.23
8,161,707
50.87
The above listed options are due to expire on 30 November 2005 and are exercisable at $0.25 each.
48 | HELIX RESOURCES LIMITED
Tenement Schedule
as at 30th June 2005
Tenement Type and Number Name
Mineral
Ownership
WESTERN AUSTRALIA
ELA47/1144
ELA47/1145
ELA47/1146
EL09/644
ELA09/1079
MLA09/87
MLA09/88
PLA09/424
PLA09/425
PLA09/426
PLA09/427
EL38/1477
EL38/1478
ELA38/1807
ELA38/1808
EL69/1516
EL69/1517
EL69/1718
EL69/1719
EL69/1720
PL69/34
PL69/35
PL69/36
PL69/37
EL29/139*
MLA29/214
EL29/139*
MLA29/171
MLA29/173
MLA29/215
MLA29/216
MLA29/217
MLA29/218
MLA29/219
MLA29/220
MLA29/226
MLA29/227
Elvire
Elvire
Elvire
Glenburgh
Glenburgh
Glenburgh
Glenburgh
Glenburgh
Glenburgh
Glenburgh
Glenburgh
Isolated Hill
Isolated Hill
Diamonds/Basemetals
Helix Resources Limited 100%
Diamonds/Basemetals
DeBeers Australia Exploration earning 51% of Dia-
Diamonds/Basemetals
Helix Resources Limited 100%
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold, Nickel
Gold, Nickel
Helix Resources Limited 100%
Lake Throssell
Base Metals
Helix Resources Limited 100%
Loongana
Loongana
Loongana
Loongana
Loongana
Loongana
Loongana
Loongana
Loongana
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Menzies
Gold, PGM, Base metals
J A Bunting & Assoc Pty Ltd
Gold, PGM, Base metals
Joint Venture (Helix 90%)
Gold, PGM, Base metals
Inco (earning 51%)
Gold, PGM, Base metals
Gold, PGM, Base metals
Gold, PGM, Base metals
Gold, PGM, Base metals
Gold, PGM, Base metals
Gold, PGM, Base metals
Menzies Nickel Joint Venture
(*Heron Resources NL 62%, Helix 38% diluting)
Helix Resources Limited 100%
Nickel
Nickel
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Abbreviations and Definitions used in Schedule:
EL
ML
PL
Exploration Licence
Mining Lease
Prospecting Licence
ELA
MLA
PLA
Exploration Licence Application
Mining Lease Application
Prospecting Licence Application
Annual Report 2005 | 49
Tenement Schedule
as at 30th June 2005
Tenement Type and Number Name
Mineral
Ownership
WESTERN AUSTRALIA
EL38/1000
Mt Venn
PGM, Nickel
Helix 80% Kelray Resources NL 20%
Helix Resources Limited 100%
Helix Resources 100%
West Pilbara Joint Venture
Helix Resources Limited 100%
DeBeers Australia Exploration
Limited earning 51%
ELA38/1476
ELA38/1775
ML47/123
ML47/124
ML47/125
ML47/126
ML47/141
ML47/142
ML47/143
ML47/144
MLA47/569
ELA47/1089
ELA47/1090
EL47/905
EL47/1015
EL47/1074
MLA47/693
MLA47/786
MLA47/787
MLA47/788
MLA47/789
MLA47/790
MLA47/791
MLA47/792
MLA47/793
MLA47/570
MLA47/571
MLA47/572
MLA47/573
MLA47/574
MLA47/639
MLA47/640
MLA47/641
MLA47/642
MLA47/643
Mt Venn
Mt Venn
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
PGM
PGM
PGM
PGM
PGM
PGM
PGM
PGM
PGM
Munni Munni South PGM
Munni Munni South Diamonds
Munni Munni South Diamonds
Munni Munni South Diamonds
Munni Munni South Diamonds
Munni Munni South Diamonds
Munni Munni South Diamonds
Munni Munni South Diamonds
Munni Munni South Diamonds
Munni Munni South Diamonds
Munni Munni South Diamonds
Munni Munni South Diamonds
Munni Munni South Diamonds
Munni Munni South Diamonds
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Abbreviations and Definitions used in Schedule:
EL
ML
PL
Exploration Licence
Mining Lease
Prospecting Licence
ELA
MLA
PLA
Exploration Licence Application
Mining Lease Application
Prospecting Licence Application
50 | HELIX RESOURCES LIMITED
Tenement Schedule
as at 30th June 2005
Tenement Type and Number Name
Mineral
Ownership
WESTERN AUSTRALIA
EL51/946
EL52/1495
EL52/1496
EL52/1623
EL52/1624
EL52/1625
EL52/1626
ELA47/1169
ELA47/1170
ELA47/1171
Narracoota
Narracoota
Narracoota
Perry Creek
Perry Creek
Perry Creek
Perry Creek
Yalleen
Yalleen
Yalleen
SOUTH AUSTRALIA
ELA2005/20
EL2854
EL3335
NEW SOUTH WALES
Lake Everard
Lake Everard West
Childarra
J A Bunting & Assoc Pty Ltd
Joint Venture (Helix 90%)
Helix Resources Limited 100%
Gold
Gold
Gold
Base Metals
Base Metals
Base Metals
Base Metals
Pecious and Base Metals
Helix Resources Limited 100%,
Pecious and Base Metals
API limited earning 51% (Iron ore)
Pecious and Base Metals
DBAE limited earning 51% (Diamonds)
Helix Resources Limited 100%
Minotaur Exploration earning 51%
EL6228
Fifield
Helix Resources Limited 100%
Abbreviations and Definitions used in Schedule:
EL
ML
PL
Exploration Licence
Mining Lease
Prospecting Licence
ELA
MLA
PLA
Exploration Licence Application
Mining Lease Application
Prospecting Licence Application
Annual Report 2005 | 51
Corporate Directory
Directors
Robert W Mosig
Executive Chairman
Riccardo E Vittino - Executive Director and Company Secretary
Greg Wheeler
Non Executive Director
John den Dryver
Non Executive Director
Australian Business Number
27 009 138 738
Head and Registered Office
9 Richardson Street
West Perth Western Australia 6005
PO Box 825 West Perth Western Australia 6872
Telephone: +61 8 9321 2644
Facsimilie:
+61 8 9321 3909
Email:
helix@helix.net.au
Website:
http://helix.net.au
Share Registry
Advanced Share Registry
110 Stirling Highway
Nedlands Western Australia 6009
PO Box 1156 Nedlands Western Australia 6909
Telephone: +61 8 9389 8033
Facsimilie:
+61 8 9389 7871
Auditor
Deloitte Touche Tohmatsu
Woodside Plaze Level 14, 240 St George’s Tce
Perth Western Australia 6000
Telephone: +61 8 9365 7000
Facsimilie:
+61 8 9365 7001
Stock Exchange
The Company Securities are quoted on the
Australian Stock Exchange Limited
CODE: HLX and HLXOA
52 | HELIX RESOURCES LIMITED