Contents
Chairman’s Review
Review of Operations
Highlights
Review of Projects
Corporate Governance
Directors’ Report
Auditor’s Independence Declaration
Independent Audit Report
Directors’ Declaration
Balance Sheet
Income Statement
Cash flow Statement
Statement of Changes in Equity
Notes to the Financial Statements
Shareholding Information
Tenement Schedule
Corporate Directory
3
4
4
5
14
21
26
27
29
30
31
32
33
34
56
59
61
Helix Resources Limited Annual Report 2006
1
2
Helix Resources Limited Annual Report 2006
Regional Mapping,Glenburgh 2006
Chairman’s Review
Dear Shareholder
I am pleased to present the 2006 Annual Report for the Company in what has been a
challenging year. Helix has reported a loss of $4.8 million during the year due largely to
charges to the P&L for impairment losses regarding the carrying value of Exploration &
Evaluation expenditure. Cash reserves are $1.4 million, with investments able to be realised
in the next 12 months of $0.7 million.
In mid July 2006, Messrs Robert Mosig [Executive Chairman] and Riccardo Vittino [CEO & Chief
Operating Officer] resigned as Directors following +18 years with the Company. With no
Executive Management, the Board appointed me as interim Executive Chairman and with the
continuing support of the technical staff, management team and my fellow Directors, we have
commenced the regeneration of Helix with the specific aim of finding a new CEO to drive the
Company and new projects to create value.
Regarding our existing projects:-
♦
♦
♦
♦
In South Australia, our joint venture with Minotaur Exploration Ltd over the Tunkillia
gold project has seen +$2 million in exploration spent in the last 12 months. The
Tunkillia project currently contains a JORC Resource of 10.5 Mt grading 2.2 g/t [720,000
oz gold] and Minotaur has the right to earn 51% by spending $5 million on the project.
Our Glenburgh gold project in Western Australia has assumed a regional focus
subsequent to being granted 2,500 km2 in tenements. Our aim is to enhance the current
JORC Resource of 1.1 Mt grading 3.1 g/t [108,000 oz gold] by defining additional
anomalous areas and resource ounces. To date we have identified 4 new gold targets
and expect to drill 2nd quarter 2007.
Our West Pilbara Diamond project remains a significant asset following DeBeers
spending $1.5 million prior to withdrawal from the JV and exploration in Australia.
DeBeers located kimberlites and diamonds and the Board is assessing the best way to
extract value from this asset in terms of a JV, spin-off or direct exploration funding.
Our other Joint Ventures are progressing well, with Toro Energy having to expend $2
million in uranium exploration on Lake Everard in SA to earn 51%, and API (Aquila)
earning 70% by expending $1.5 million on iron ore exploration on our West Pilbara
tenements.
The staff and Board of Helix look forward to the challenges of 2007 in creating value for
shareholders.
Greg J Wheeler
Chairman
Helix Resources Limited Annual Report 2006
3
3
Review of Operations
HIGHLIGHTS
The Company’s exploration activities have
focused on the Glenburgh gold project- Gascoyne
region Western Australia and the Bilyuin gold
project – Peak Hill/Meekatharra District, Western
Australia.
Glenburgh
Following encouraging results from RC drilling at
Glenburgh in December 2005, Helix secured a
large (2,500km²) ground holding in the Southern
Gascoyne Province. The Company has had early
success from regional exploration this year,
defining several new gold prospects including the
Impala and Prowler
Barracuda, Challenger,
Prospects. This work has confirmed that the
PGM’s
A strategic review of the Company’s project
portfolio in early 2006 concluded that Helix’s
platinum group metal assets could provide better
returns if they were “spun out” into a separate
company, with fresh funds and a dedicated
them. The
to
exploration
successful ASX
listing of Platina Resources
Limited on 29 May 2006, raising $6.2 million, saw
the Munni Munni, Mt Venn and Fifield PGM
projects transferred to the new company and
over 400 Helix shareholders participating in the
priority allocation.
team assigned
Project
Commodity
Equity
Grade and Tonnage
CURRENT RESOURCE BASE
Contained
Metal
JORC Category
Lake Everard
(Incl. Tunkillia)
Gold
100%,
Minotaur
Earning 51%
10.5 Mt at 2.2 g/t Au
720,000 oz
Inferred and
Indicated
Glenburgh
Gold
100%
1.1 Mt at 3.1g/t Au
108,000 oz
Inferred
contains
Southern Gascoyne
additional
mineralised systems prospective for both gold
and base metals, and the potential for significant
grass roots discoveries warrants our continued
commitment to the region.
Bilyuin
Surface geochemical surveys at Bilyuin have
resulted in the identification of a series of drill
targets associated with a large aeromagnetic
anomaly buried under shallow cover. Recent
grass roots exploration results reported by
several companies in the region have provided
Helix with additional confidence in the quality of
this target and support the requirement for drill
testing.
Joint Ventures
Activities at the Lake Everard (Tunkillia) gold
project, the Lake Everard uranium project and
West Pilbara iron ore project are being carried
out by
joint venture partners who spent
approximately $3 million for the year.
Mapping at Glenburgh 2006
4
Helix Resources Limited Annual Report 2006
Review of Operations
Helix Project Locations
GLENBURGH GOLD PROJECT
– WESTERN AUSTRALIA
Helix Resources Limited 100%
EL 09/644, 09/1079, ELA 09/1278-1289
The Gascoyne Region has been the main focus for
Helix’s exploration effort in 2006. Encouraging
results from a drilling program at two known
prospects at Glenburgh in late 2005 provided the
Company with the impetus to expand its ground
holding to around 2,500 km² in the Southern
Gascoyne Region. The Company is targeting high-
grade, structurally controlled gold mineralisation
hosted in the Proterozoic mobile belt flanking
the north-western edge of the Archaean Yilgarn
Block.
RC Drilling
Drilling was carried out in April, aimed at
defining the extent of mineralisation at the
Mustang and Shelby Prospects as well as testing a
series of IP anomalies surrounding the known
resources on the Victoria Bore Grid. At the
the
Mustang Prospect, drilling
confirmed
existence of supergene mineralisation
in a
preserved 40m thick weathering profile. The best
supergene intersection from the recent program
was from VRC 318 where assays from a depth of
28 metres reported an intersection of 10m @
3.23g/t Au in a halo of lower grade material.
This discovery provides encouragement that
similar pods of supergene material are preserved
within the region and are likely to add valuable
shallow ounces to future resource calculations at
Glenburgh.
Helix Resources Limited Annual Report 2006
5
5
Review of Operations
of
zones
Primary mineralisation at Mustang is defined by
wide
anomalous mineralisation
interspersed with high-grade intersections. VRC
319 intersected 32m @ 1.03g/t Au including 1m
@ 18.1g/t Au from 77m downhole (Table 1). The
extent of mineralisation at Mustang remains open
at depth and along strike (Figure 1).
results were
At the Shelby Prospect, 4 holes were drilled to
gold
the down dip extensions of
test
mineralisation to a vertical depth of 100m. The
best
from VRC 314 which
intersected 2m @ 3.48g/t Au and 1m @ 4.00g/t
Au (Table1). The mineralisation occurs as a series
of thin lodes within a 15m wide corridor of
+100ppb gold anomalism. The controlling
structures appear to be relatively tight through
this area and therefore are unlikely to represent
sufficient contained tonnages to warrant further
drilling at this stage.
Drilling of IP targets outside the known Prospects
provided mixed results, with the best result from
VRC327 intersecting 4m @ 1.53g/t Au (Table 2).
The
survey was carried out over known
mineralisation which limited the number of new
targets within the survey extent (Figure 2). The
IP survey has shown that a distinct pattern exists
between chargeable sulphide zones and known
mineralisation, but there are parallel zones of
conductive non-mineralised sulphide present
which complicates the targeting on the Victoria
Bore Grid and suggests that surface geochemistry
remains the most cost-effective method at
present for defining new drill targets.
The
IP survey and follow up drilling has
intersected a graphitic unit associated with a
major regional shear. Although un-mineralised at
intersection, this discovery
the position of
Figure 1: Cross Section 12500E, Mustang Prospect
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Helix Resources Limited Annual Report 2006
Review of Operations
Table 1: Significant RC Drilling intersections from Mustang and Shelby Prospects
Hole ID
Total Depth
Target
Easting
Northing
Metres From
Gold
VRC314
150
Shelby
13150
VRC315
160
Shelby
13100
VRC316
VRC317
180
169
Shelby
Mustang
13000
12450
VRC318
103
Mustang
12500
9920
Incl
9950
Incl
And
9990
10050
Incl
And
Incl
9950
Incl
And
VRC319
175
Mustang
12500
10030
VRC320
139
Mustang
12600
VRC321
139
Mustang
12600
Incl
Incl
And
Incl
9910
Incl
9965
Incl
And
Incl
81m
97m
114m
91m
91m
115m
163m
95m
95m
105m
113m
7m
28m
57m
77m
79m
107m
160m
160m
7m
19m
27m
30m
74m
82m
39m @ 0.52g/t
2m @ 3.48g/t
1m @ 4.00g/t
8m @ 1.00g/t
2m @ 3.11g/t
1m @ 1.25g/t
7m @ 0.50g/t
7m @ 0.51g/t
2m @ 1.25g/t
14m @ 0.52g/t
2m @ 1.26g/t
39m @ 1.01g/t
10m @ 3.23g/t
1m @ 1.10g/t
32m @ 1.03g/t
2m @ 2.54g/t
1m @ 18.10g/t
10m @ 0.53g/t
1m @ 1.45g/t
7m @ 0.50g/t
1m @ 1.76g/t
7m @ 0.75g/t
4m @ 1.20g/t
10m @ 0.80g/t
2m @ 2.67g/t
All holes drilled to grid south with an inclination of 60 degrees.
Samples are 1m riffle split, assayed using a lead collection fire assay with a mass spectrometry determination
Intersections reported are results greater than 0.5g/t Au with less than 2m of internal dilution
confirmed that the area is geologically complex,
and suggests there is potential for other styles of
gold deposit in the region beyond that identified
to date.
Regional Exploration
Regional exploration commenced in conjunction
with the April 2006 drilling program. Stream
sampling was conducted at two target areas out
of a dozen areas that are considered high priority
targets. The sampling identified an area 6km x
2km which is anomalous with gold to 20ppb in
BLEG assays, and named the Challenger Zone.
The Challenger
Zone is situated
approximately 20
kilometres east
the known
of
gold
prospects
on the Victoria
Bore grid.
T h e
s t r e a m
s e d i m e n t
a n o m a l y
a t
Challenger was
followed up with
7
Field Mapping, Glenburgh 2006
Helix Resources Limited Annual Report 2006
7
Review of Operations
Figure 2: Glenburgh RC Drill Traverse Plan, Local Grid
Table 2: Significant Results from IP Target Exploration Drilling
Hole ID
Total Depth
Target
Easting
Northing
Metres From
VRC322
VRC323
VRC324
VRC325
VRC326
VRC327
VRC328
VRC329
VRC330
VRC331
VRC332
VRC333
VRC334
127
152
127
145
163
145
115
115
151
151
151
151
133
IP Target
IP Target
IP Target
IP Target
13100
12200
12000
12100
10200
10370
10260
9910
And
And
IP Target
11700
10250
IP Target
11000
Tuxedo
10900
IP Target
IP Target
10500
10500
IP Target
IP Target
IP Target
IP Target
10500
10500
10500
12000
9800
Incl
9820
Incl
9350
10250
And
10100
10250
10550
10230
Gold
NSR
92m
4m @ 0.11g/t
28m
92m
128m
28m
124m
124m
97m
99m
92m
72m
140m
NSR
28m @ 0.11g/t
4m @ 0.13g/t
4m @ 0.10g/t
8m @ 0.18g/t
16m @ 0.62g/t
4m @ 1.53g/t
8m @ 0.77g/t
4m @ 1.39g/t
4m @ 0.17g/t
12m @ 0.13g/t
4m @ 0.2g/t
NSR
NSR
NSR
NSR
All holes drilled to grid south with an inclination of 60 degrees
Samples are 4m composite spear samples, assayed using a aqua regia digestion with an ICP-OES determination
Intersections reported are results greater than 0.1g/t Au with less than 4m of internal dilution
NSR- No significant result greater than 0.1g/t Au
8
Helix Resources Limited Annual Report 2006
Review of Operations
broad spaced soil
lines with close spaced
sampling (800m x 50m) and more recently a
200m x 100m soil grid. Infill sampling was also
completed on a 200m x 50m grid over several
areas of interest. The survey has defined open
ended gold in soil anomalies up to 300m wide
and 1.4km long with assays up to 407ppb Au on a
background of less than 1ppb (Figure 3). The
geochemical response is similar to the initial
work on the known gold prospects on the Victoria
Bore grid. The anomaly is coincident with west-
northwest cross cutting structures, in a de-
large
magnetised shear that
granitic body to the south. Field mapping has
is bounding a
concentrated
on
s t r u c t u r a l
and
interpretation
alteration mineral
identification.
The Impala Prospect,
f r o m
i d e n t i f i e d
r e c e n t
s t r e a m
sampling, is situated
approximately
15
kilometres southeast
of the Victoria Bore
grid. BLEG samples
Sampling at Glenburgh, 2006
Figure 3: Challenger Soil Contours
Helix Resources Limited Annual Report 2006
9
9
Review of Operations
Figure 4 Expanded tenement holding with new prospect locations
from stream sampling have
to 20ppb Au
delineated a zone 6km x 3km, open along strike,
Field work is currently concentrating on infill
stream sampling and field mapping, which will be
followed up by soil grid. Exploration is also
continuing at the Prowler area and several other
prospects within the tenement package. (Figure
4) This work will establish a series of prospects
which will be ranked as drill targets for testing
Soil Sampling, Bilyuin May 2006
in 2006 once all Aboriginal and
later
governmental clearances have been received.
BILYUIN GOLD PROJECT
– WESTERN AUSTRALIA
Helix Resources Limited 90%
E52/1496
At the Bilyuin Project, Helix
is targeting
hydrothermal gold associated with structurally
in a volcanic
controlled alteration, hosted
breccia in the Peak Hill Goldfield. In May, a soil
geochemical survey was completed after rain
in the year. Samples were
delays earlier
collected on 500 and 800m line spacings at 100m
centres over a 15 square kilometre grid and
assayed using BLEG and a partial leach method
due to the existence of insitu and transported
cover.
The surface sampling indicates that the Bilyuin
magnetic
is coincident with gold
anomalism greater than 2 times background.
structures, North-northeast
West-northwest
feature
10
Helix Resources Limited Annual Report 2006
Review of Operations
structures and interconnecting de-magnetised
zones coincide with the best gold results. In
order to confirm this model, aircore drilling of
these areas has been planned for the 3rd Quarter
of 2006.
LAKE EVERARD (INCL. TUNKILLIA) PROJECT
– SOUTH AUSTRALIA
Helix Resources Limited 100%,
Minotaur Exploration Limited earning 51%
Toro Energy Limited earning 51% of Uranium
Rights
EL 3403, EL 2854 and EL 3335
GOLD
A Joint Venture with Minotaur Exploration Ltd
(“Minotaur”) over the Lake Everard Project was
entered into in early 2005 whereby Minotaur may
earn a 51% interest in all tenements by spending
$5.0 million over four years.
Under a proposed generative alliance between
Minotaur and Oxiana Limited, Minotaur may
introduce Oxiana to the project. Should Oxiana
contribute to 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 containing an Indicated Resource of at
least 1 million ounces gold, in an additional 2
years.
Minotaur has completed a campaign of 16
diamond drillholes for 3742m, 42 RC holes for
6554m and 95 aircore holes for 4837m as part of
their earning in commitment on the Tunkillia JV
Gold Project.
Figure 5 Tunkillia Gold Deposit Section 111500N (after Minotaur 2006)
Helix Resources Limited Annual Report 2006
11
11
Review of Operations
includes an Iron Oxide Copper Gold target on the
adjoining Lake Everard West tenement (EL 2854).
URANIUM
Toro Energy Ltd can earn 51% of the uranium
rights on the Lake Everard tenements by
spending $2M over 3 years commencing in 2006.
Toro has secured contractors and is flying a
detailed airborne EM survey over a 921km²
between the three Lake Everard tenements. The
survey is targeting a series of palaeochannel
hosted uranium anomalies.
YALLEEN IRON ORE JV
– WESTERN AUSTRALIA
Helix Resources Limited 100%, Australian Premier
Iron JV (AMCI/Aquila) earning 70% iron ore rights
E47/1169-1171
After carrying out a preliminary Hoist EM survey
on the Yalleen Project in late 2005, Joint
Venture partner API Management has defined
iron ore drilling targets for both channel iron
deposits and bed-rock deposits in the prospective
Mara Mamba iron formation.
An un-seasonally late cyclone season in the
states North-West Region reduced the ability to
access the land for a significant part of the
quarter. Field work on the project has been
field mapping and
confined
positioning drill holes for the planned program.
API expect to have heritage clearances and
access tracks to drill sites, followed by the
commencement of drilling before the end of the
3rd quarter of 2006.
to geological
WEST PILBARA DIAMOND PROJECT
– WESTERN AUSTRALIA
Helix Resources Limited 100%
E47/1075, 1169-1171, 1144-1145
ELA47/1089-90 & 1146, MLA 47/786-794
Campsite, Bilyuin May 2006
The diamond drilling program was aimed at
confirming previous RC drilling by Helix, gaining
detailed structural information and testing for
continuity of mineralisation between the central
and southern ore zones.
The main core of mineralisation in the central
zone of the Area 223 resource was confirmed
with results including 10m@ 10.7g/t Au in LED017
from 112m, 17m @ 5.9g/t Au from 79m and 16m
@ 5.3g/t Au from 106m in LED018 and 22m @
3.0g/t Au from 80m in LED019 associated with
the ductile, highly sericitised alteration zone.
(Figure 5)
At Area 191 Minotaur carried out additional IP
geophysical surveys and follow up RC drilling.
The drilling has identified a relationship between
gold
chargeable
mineralisation. Drilling intersected 7m @ 3.9g/t
Au in LRC506, 4m @ 7.7g/t Au in LRC514 and 16m
@ 2.6g/t Au in LRC536.
anomalies
sulphide
and
Minotaur is continuing its exploration on the
project with a budget of $3M for the calendar
year. In recent announcements Minotaur have
confirmed the continuity of oxide material along
the length of the Area 223 resource and are
carrying out metallurgical studies as well as
exploration on near-resource structural targets
and testing a series of regional targets. This
12
Helix Resources Limited Annual Report 2006
Review of Operations
The Helix West Pilbara Diamond Project
comprises 9 tenements, 100% owned by Helix,
covering approximately 1500 square kilometres
and situated approximately 75 kilometres south
of Karratha, WA.
Previous reconnaissance and surface sampling by
DeBeers Australia Exploration (DBAE) in 2004
resulted in the discovery of two kimberlites,
Blacktop and Clurrie, with several positive
indicator anomalies also being identified. The
Blacktop discovery is immediately adjacent to
the DBAE/Tawana JV tenements where a 32.85
tonne bulk sample produced 89 macro diamonds
totaling 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.
Field activities for diamonds were limited to
follow up sampling in late 2005 by DBAE of the
regional anomalies at Railway, Blacktop South,
Portland River, Power Line and Bandeeyer In
February 2006 DBAE advised Helix that as a result
re-assessment of De Beers’ global
of a
exploration priorities, they would be withdrawing
from the joint venture. Helix is examining the
best way forward for the project.
WEST PILBARA BASE METAL PROJECT
– WESTERN AUSTRALIA
Helix Resources Limited 100%
E47/1075, 1169-1171, 1144-1145
ELA47/1089-90 & 1146, MLA 47/786-794
area
The West Pilbara Base Metal Project covers the
same
the diamond project,
approximately 75 kilometres south of Karratha
WA.
as
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. The region is considered prospective
for gold and base metals with operating nickel,
copper and iron ore mines as well as numerous
lead, zinc prospects proximal to the tenement
package.
As part of the DeBeers diamond joint venture, a
surface geochemical sample was collected by
DeBeers nearby to each diamond sample. The
resulting samples, collected at approximate 5
square kilometre spacings, were assayed by Helix
for precious and base metals in 2005. Results
from this work and subsequent literature and
data reviews have highlighted numerous precious
and base metal anomalies that will form the
basis for a field campaign on the project area
late in the 2006 field season.
The information in this report that relates to Exploration Results,
Mineral Resources or Ore Reserves is based on information compiled by
Mr M Wilson who is a full time employee of Helix Resources Limited
and, who is a Member of The Australasian Institute of Mining and
Metallurgy. Mr M Wilson has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to
the activity which he is undertaking to qualify as Competent Persons as
defined in the 2004 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. Mr M
Wilson consents to the inclusion in the report of the matters based on
this information in the form and context in which it appears.
Setting up Camp
Granite Migmatite
In the field
Helix Resources Limited Annual Report 2006
13
13
Corporate Governance
CORPORATE GOVERNANCE
The Company is committed to implementing the highest standards of corporate governance. In determining what those high standards should in-
volve the Company has turned to the ASX Corporate Governance Council’s Principles of Good Corporate Governance and Best Practice Recom-
mendations. 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 Corpo-
rate 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 recom-
mendations can be found on the ASX Corporate Governance Council’s website at http://www.asx.com.au
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 Executive 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 Directors’
Report
1.1
1.4.9
1.1 and 1.4.9
Recommendation 4.1 Attestations by Non-Executive Chairman and Chief Executive Officer
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 Non-Executive Chairman and Chief Executive 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
1.4.11
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
14
Helix Resources Limited Annual Report 2006
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 Non-Executive Chairman, the Chief Ex-
ecutive 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 re-
sponsibilities 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 independ-
ence 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 den Dryver and Mr G Dunbar 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 inter-
fere 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 opera-
tions 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.
5.
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.
Monitoring, Compliance and Risk Management: overseeing the Company’s risk management, compliance, control and account-
ability systems and monitoring and directing the financial and operational performance of the Company.
Helix Resources Limited Annual Report 2006
15
15
Corporate Governance
6.
7.
8.
9.
Company Finances: approving expenses in excess of those approved in the annual budget and approving and monitoring acquisi-
tions, divestitures and financial and other reporting.
Human Resources: appointing, and, where appropriate, removing senior management as well as reviewing and monitoring the per-
formance 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 Executive 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 re-
move 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 confiden-
tial, information received in the course of the exercise of their duties and will not disclose non-public information except where disclosure is author-
ised 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;
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.
16
Helix Resources Limited Annual Report 2006
Corporate Governance
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 meet-
ing. 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:
1.
2.
3.
4.
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 secu-
rities 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 unpub-
lished 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 posses-
sion 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 con-
sultant.
1.4.11 Attestations by Non-Executive Chairman and Chief Executive Officer
In accordance with the Board’s policy, the Non-Executive Chairman and the Chief Executive 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.
Helix Resources Limited Annual Report 2006
17
17
Corporate Governance
2.
2.1
Board Committees
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 state-
ments 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’ remunera-
tion, reviewing and implementing the Company’s incentive schemes and superannuation arrangements, reviewing the remuneration of both Execu-
tive and Non-Executive Directors and undertaking an annual review of the senior executives’ performance, including, setting with the Non-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 Remunera-
tion 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 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 im-
proved Company performance;
participation in share/option schemes with thresholds approved by shareholders; and
statutory superannuation.
18
Helix Resources Limited Annual Report 2006
Corporate Governance
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 payable to Non-Executive Directors was approved by shareholders in 1996 and is currently $150,000. De-
tails 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.
Helix Resources Limited Annual Report 2006
19
19
Corporate Governance
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 com-
pliance with legal and other obligations to legitimate stakeholders. These stakeholders include employees, clients, customers, government authori-
ties, 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.
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 Com-
pany 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 encour-
ages 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 Com-
pany 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, par-
ticularly 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 account-
able for such compliance. Disciplinary measures may be imposed for violating the Code.
20
Helix Resources Limited Annual Report 2006
Directors’ Report
DIRECTORS' REPORT
In respect of the financial year ended 30 June 2006, 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 or since the end of the financial year and up to the date of this report:
Greg J Wheeler
Executive Chairman – 14th July 2006 to present
Non-Executive Director – 1 July 2005 to 14th July 2006
Appointed 25 October 2004
Mr Wheeler has significant expertise with the Resources industry over 25 years as a Chartered Accountant in Australia and overseas, and since 1990 as a
Partner of Chartered Accounting firms Grant Thornton and Deloitte Touche Tohmatsu. In 2002 he established his own consulting company offering solutions in
the areas of:- Directorial and financial advice; Corporate Governance; company and business valuations; acquisitions and divestitures; capital raisings;
commercial negotiations; risk assessment and mitigation.
John den Dryver
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.
Gordon Dunbar
Non-Executive Director
Appointed 18 July 2006
Gordon is a consulting geologist with forty years experience in the Australian minerals industry managing project development, mineral exploration and
evaluation programmes, mine geology, financial studies, production assessment and monitoring joint venture projects. Gordon’s experience includes
exploration and mining geology roles at Kambalda with WMC, the evaluation of the Golden Grove base metal deposit in WA, the Chief Geologist at Rosebery
Mine in Tasmania and management roles with BP Australia undertaking financial studies, monitoring the evaluation of the Olympic Dam deposit and as
Exploration manager for BP Minerals.
Gordon formed his own consulting group in 1990 to provide advice on exploration, evaluation, mining geology, project assessment and pre-feasibility studies,
particularly those involving gold, base metals and nickel. He has worked on projects within Australia and Internationally.
The following persons resigned as Directors of Helix Resources Ltd during or since the financial year to the date of this report:-
Robert W Mosig MSc, FAusIMM, FAICD
Executive & Non-Executive Chairman
Resigned 18 July 2006 – having acted as Executive Chairman for the period 1 July 2005 to 31 March 2006, then Non-Executive Chairman from 1 April
2006 to date of resignation.
Riccardo E Vittino
Chief Executive Officer / Company Secretary
Resigned 14 July 2006 – having acted as Chief Operating Officer for the period 1 July 2005 to 31 March 2006, then Chief Executive Officer from 1 April
2006 to date of resignation.
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
John den Dryver
Greg Wheeler
Company
Intrepid Mines Limited
Adelaide Resources Limited
Acclaim Exploration NL
Platina Resources Limited
Period of directorship
23 December 2003 – current
18 April 2005 – current
November 2002 to June 2003
28 March 2006 - current
JOINT COMPANY SECRETARIES
Greg J Wheeler
Joneen McNamara
Mr Wheeler is an Accountant with over 25 years experience in accounting, company secretarial and corporate
management.
Mrs McNamara is an Accountant completing the Chartered Secretaries course.
Helix Resources Limited Annual Report 2006
21
21
Directors’ Report
PRINCIPAL ACTIVITIES
The principal activity of the Group 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 other than the PGM
tenements were “spun-off” into a separate vehicle, Platina Resources Ltd, which raised $6.2 million via a priority entitlement offer to Helix shareholders
which was underwritten by Patersons Securities Ltd and listed in May 2006.
FINANCIAL RESULTS
The net consolidated loss of the Group for the financial period, after provision for income tax was $4,762,498 (2005: $1,297,895).
DIVIDENDS
No dividend has been paid since the end of the previous financial year and no dividend is recommended for the current period.
REVIEW OF OPERATIONS
The Consolidated entities activities are contained in releases to the ASX on a quarterly basis. Highlights include:-
Gold – Glenburgh
Helix continued to advance its Glenburgh Gold Project in the Gascoyne Region of WA. Activities focused on determining the potential extent of the
known mineralisation at Glenburgh as well as expanding into regional exploration, where sampling is identifying new drilling targets within the
Company’s 2,500km² ground holding. A Reverse Circulation (RC) drilling program was conducted during April and May at the Mustang and Shelby
Prospects as well as into a series of IP anomalies surrounding the known prospects on the Victoria Bore Grid. Results from the drilling include 10m@
3.23g/t Au from VRC318 from 28m at the Mustang Prospect and 2m@3.58g/t Au from 97m in VRC314 at the Shelby Prospect.
Regionally, Helix’s field crews have been undertaking a campaign of surface geochemical exploration. The Challenger Zone soil anomaly has shown
the best prospectivity to date with a series of gold in soil anomalies to 407ppb Au being defined over an area 6km x 2km. The zone is bounded along
strike and to the south by shallow alluvial and elluvial cover. Field work is continuing on this, and several other priority target areas.
Gold - Tunkillia
Joint Venture partner Minotaur Resources continues to report positive results from their exploration and drilling program at the Tunkillia Gold Project in
South Australia. Exploration by Minotaur continues with RC drilling being used to test numerous targets, near resource and regionally on the Lake
Everard Project, as part of their $3M budget for this year.
Uranium
The Lake Everard project area is subject to the Toro Energy Uranium JV. Toro is earning 51% of the uranium rights by spending $2.0M over 3 years.
Toro has recently committed to an airborne EM survey to cover palaeo-channel uranium targets on these tenements.
The Lake Throssell Uranium Project was sold in July 2006 to Crusader Minerals NL for 750,000 shares in Crusader. The shares will be escrowed for a
period of 12 months. This transaction, and the uranium joint venture with Toro Energy, provides Helix with an investment in the burgeoning uranium
market without diverting from the Company’s gold focus.
Iron Ore
At the Company’s Yalleen Iron Ore JV in the West Pilbara, manager AMCI/Aquila has carried out preliminary field mapping and planned drill holes after
numerous weather delays in the first half of the year as part of their spending $1.5 million to earn a 70% interest. Heritage clearances and
establishment of access to drill sites are expected to be completed in the coming weeks. AMCI/Aquila are targeting both Channel Iron Deposits (CID)
and primary iron ore in the Mara Mamba Formation on this project as part of their larger West Pilbara Iron Ore Project.
PGM’s
Helix sold its PGM tenements to Platina Resources Ltd for $2,000 as part of the successful listing of Platina. This removed from Helix expenditure
commitments of +$1 million over the next 12 months in order to retain the tenements, together with a liability of $400,000 to Hunter Resources Ltd to
be paid on commercial production from certain tenements.
The Group reported a loss of $4,762,498 during the year, related essentially to the write down of carry forward exploration expenditure.
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 Group
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 Group, the results of those operations, or the state of
affairs of the Group in future financial years.
22
Helix Resources Limited Annual Report 2006
Directors’ Report
FUTURE DEVELOPMENTS
Disclosure of information regarding likely developments in the operations of the Group in future financial years and the expected results of those
operations is likely to result in unreasonable prejudice to the Group. 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 durations 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 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 where appropriate to ensure remuneration accords with market practice.
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:
Salary &
Fees
2006
Primary
Perfor-
mance
Based
Payment
Post Employment
Equity
Non
Monet-
ary
Supera-
nnuation
Pre-
scribed
Benefits
Other
Retire-
ment
Benefits
Options
% of
Remu-
neration
Other
Benefits
Total
$
$
$
$
$
$
$
$
$
$
Key Management Per-
sonnel
R W Mosig
R E Vittino
G J Wheeler
J den Dryver
M.H. Wilson
Total Key
Management
Personnel
168,864
125,500
30,000
30,000
98,623
452,987
-
-
-
-
-
-
-
-
-
-
-
-
12,000
12,000
-
-
8,876
32,876
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
180,864
137,500
30,000
30,000
107,499
485,863
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
KEY MANAGEMENT PERSONNELS’ 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 current and past
directors and executives are entitled to purchase an aggregate of 3,450,000 ordinary shares of Helix Resources Limited according to the following terms:
Helix Resources Limited Annual Report 2006
23
23
Directors’ Report
Key Management Person-
nel
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
$0.42
29.03.2009
Former Executive Chairman
533,334
Helix Resources Limited
533,333
Helix Resources Limited
Riccardo E Vittino
Former Chief Executive
Officer
1,600,000
300,001
300,000
299,999
900,000
Helix Resources Limited
Helix Resources Limited
Helix Resources Limited
$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
533,333
533,334
533,333
1,600,000
300,001
300,000
299,999
900,000
DIRECTORS’ SHAREHOLDINGS
Director
*Fully Paid
*Listed Options
Staff Options
G J Wheeler
J den Dryver
G Dunbar
Ordinary Shares
700,000
-
-
700,000
-
-
-
-
-
-
-
-
No options were granted as remuneration to Key Management Personnel during the year.
*
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 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 Group is subject to environmental regulations under laws of the Commonwealth and State. The Group 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.
24
Helix Resources Limited Annual Report 2006
Directors’ Report
MEETINGS OF DIRECTORS
Board of Directors’ Meetings
Remuneration Committee
Meetings
Audit Committee
Meetings
Held*
Attended
Held*
Attended
Held*
Attended
R W Mosig
R E Vittino
G J Wheeler
J den Dryver
4
4
4
4
4
4
4
4
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
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:
* 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. Details of amounts paid or payable to the auditor for non-audit services provided
during the year by the auditor are outlined in note 25.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration is included on page 26 of the financial report.
Dated at Perth this 7th day of September 2006.
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
Greg J Wheeler
Executive Chairman
Helix Resources Limited Annual Report 2006
25
25
Independence Declaration
26
Helix Resources Limited Annual Report 2006
Independent Audit Report
Helix Resources Limited Annual Report 2006
27
27
Independent Audit Report
28
Helix Resources Limited Annual Report 2006
Directors’ Declaration
The Directors declare that:
a
b
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 com-
pliance with accounting standards and the Corporations Regulations 2001 and giving a true and fair view of the financial position and perform-
ance of the Group and Company for the financial year ended 30 June 2006; and
c
The directors have not been given the declarations required by s295A of the Corporations Act 2001 as the persons responsible resigned as
Directors 14th July 2006.
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
Greg J Wheeler
Executive Chairman
Signed at Perth this 7th day of September 2006.
Helix Resources Limited Annual Report 2006
29
29
Balance Sheet
BALANCE SHEET
AS AT 30 JUNE 2006
CONSOLIDATED
COMPANY
Note
2006
$
2005
$
2006
$
2005
$
Current Assets
Cash and cash equivalents
Trade and Other Receivables
Total Current Assets
Non-Current Assets
Financial Assets
Property, plant & equipment
Exploration and Evaluation
Other
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and Other Payables
Provisions
Total Current Liabilities
Non- Current Liabilities
Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Share Capital
Other Reserves
Accumulated Losses
Total Equity
2
3
4
6
7
5
8
9
9
10
11
12
1,151,030
743,088
1,894,118
2,890
184,516
8,215,219
154,583
8,557,208
10,451,326
186,629
25,785
212,414
21,953
21,953
234,367
1,635,873
384,498
2,020,371
890
171,250
11,201,564
149,242
11,522,946
13,543,317
214,856
67,375
282,231
10,538
10,538
292,769
1,151,028
743,088
1,894,116
3,815
184,516
8,215,219
154,583
8,558,133
10,452,249
186,629
25,785
212,414
21,953
21,953
234,367
1,635,871
384,498
2,020,369
1,815
171,250
11,201,564
149,242
11,523,871
13,544,240
214,856
67,375
282,231
10,538
10,538
292,769
10,216,959
13,250,548
10,217,882
13,251,471
45,295,964
43,567,055
45,295,964
43,567,055
50,197
50,197
50,197
50,197
(35,129,202)
(30,366,704)
(35,128,279)
(30,365,781)
10,216,959
13,250,548
10,217,882
13,251,471
Notes to the financial statements are included on pages 34 to 55
30
Helix Resources Limited Annual Report 2006
Income Statement
INCOME STATEMENT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2006
Revenue
Reversal of Directors’ Retirement Provision
Impairment of investments
Depreciation
Impairment of Exploration and evaluation assets
Legal Expenses and Professional Services
Consultancy fees
Public Relations expenses
Travel and Accommodation expenses
Rental expenses
Employee benefits expense
Directors’ Fees
Other expenses
Loss before income tax
Income tax expense
Note
13
14
CONSOLIDATED
COMPANY
2006
$
(903,442)
-
-
(44,530)
(2,983,021)
(106,553)
(4,213)
(25,353)
(40,204)
(33,804)
(375,718)
(69,500)
(176,160)
(4,762,498)
2005
$
299,603
104,217
(54,501)
(56,993)
(796,052)
(97,162)
(3,426)
(26,378)
(30,871)
(83,997)
(300,626)
(94,095)
(157,614)
2006
$
(903,442)
-
-
(44,530)
(2,983,021)
(106,553)
(4,213)
(25,353)
(40,204)
(33,804)
(375,718)
(69,500)
(176,160)
2005
$
299,603
104,217
(54,501)
(56,993)
(796,052)
(97,162)
(3,426)
(26,378)
(30,871)
(83,997)
(300,626)
(94,095)
(157,614)
(1,297,895)
(4,762,498)
(1,297,895)
19
-
-
-
-
Loss from continuing operations
(4,762,498)
(1,297,895)
(4,762,498)
(1,297,895)
Profit /(Loss) from discontinued operations
-
-
-
-
Loss for the year
(4,762,498)
(1,297,895)
(4,762,498)
(1,297,895)
Earnings / (Loss) per share
Basic (cents per share)
Diluted (cents per share)
21
21
(5.36)
(5.36)
(1.84)
(1.84)
Notes to the financial statements are included on pages 34 to 55
Helix Resources Limited Annual Report 2006
31
31
Cash Flow Statement
CASH FLOW STATEMENT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2006
CONSOLIDATED
COMPANY
Note
2006
$
2005
$
2006
$
2005
$
Cash Flow From Operating Activities
Payments to suppliers and employees
Interest received
Other receipts
Net cash used in operating activities
2(b)
Cash Flow From Investing Activities
Payments for capitalised exploration &
evaluation expenditure
Payment for property, plant & equipment
Proceeds from sale of property, plant & equip-
ment
Proceeds from sale of exploration and evalua-
tion
Proceeds from sale of investments
Payments for security deposits
(927,358)
88,303
83,768
(755,287)
(762,687)
111,638
11,370
(639,679)
(927,358)
88,303
83,768
(755,287)
(762,324)
111,638
11,007
(639,679)
(1,735,847)
(1,552,208)
(1,735,847)
(1,552,208)
(77,511)
16,000
150,000
515,376
(326,483)
(5,465)
363
-
284,595
(21,674)
(77,511)
16,000
150,000
515,376
(326,483)
(5,465)
363
-
284,595
(21,674)
Net cash used in investing activities
(1,458,465)
(1,294,389)
(1,458,465)
(1,294,389)
Cash Flow From Financing Activities
Proceeds from issue of shares/options
Share issue costs paid
Net cash provided by Financing Activities
1,920,753
(191,844)
1,728,909
2,053,997
(118,513)
1,935,484
1,920,753
(191,844)
1,728,909
2,053,997
(118,513)
1,935,484
Net increase/(decrease) in cash held
(484,843)
1,416
(484,843)
1,416
Cash and cash equivalents at beginning of
financial year
Cash and cash equivalents at End of
Financial Year
1,635,873
1,634,457
1,635,871
1,634,455
2(a)
1,151,030
1,635,873
1,151,028
1,635,871
Notes to the financial statements are included on pages 34 to 55
32
Helix Resources Limited Annual Report 2006
Statement of Changes in Equity
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2006
CONSOLIDATED
COMPANY
2006
$
2005
$
2006
$
2005
$
13,250,548
12,592,959
13,251,471
12,593,882
-
-
50,197
(50,197)
-
-
50,197
(50,197)
Total equity at the beginning of the financial
year
Adjustment on the adoption of
A-IFRS for share based payments to::
Options reserve
Accumulated losses
Shares issued during the financial year
1,728,909
1,955,484
1,728,909
1,955,484
Loss attributable to members of the parent
entity
(4,762,498)
(1,297,895)
(4,762,498)
(1,297,895)
Total equity at the end of the financial year
10,216,959
13,250,548
10,217,882
13,251,471
Notes to the financial statements are included on pages 34 to 55
Helix Resources Limited Annual Report 2006
33
33
Notes to the Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2006
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
includes separate financial statements for Helix Resources Limited as an individual entity and the Group consisting of Helix Resources Limited
and its subsidiaries.
Accounting policies
The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently
applied to all the periods presented, unless otherwise stated.
Application of AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards (“A-IFRS ”)
This annual financial report is the first Helix Resources Limited annual financial report to be prepared in compliance with requirements of A-
IFRS. AASB 1 First time Adoption of Australian Equivalents to International Financial Reporting Standards has been applied in preparing these
financial statements. Compliance with A-IFRS ensures that the financial report complies with the requirements of International Financial
Reporting Standards (“IFRS”).
Financial statements of Helix Resources Limited until 30 June 2005 had been prepared in accordance with previous Australian Generally
Accepted Accounting Principles (“AGAAP”). AGAAP differs in certain respects from A-IFRS. When preparing this financial report for the year
ended 30 June 2006, management has amended certain accounting, valuation and consolidation methods applied in the previous AGAAP
financial statements to comply with A-IFRS. With the exception of financial instruments, the comparative figures were restated as appropriate
to reflect these adjustments.
The Group has taken the exemption available under AASB 1 to only apply AASB 132 Financial Instruments: Disclosure and Presentation and
AASB 139 Financial Instruments: Recognition and Measurement from 1 July 2005.
Reconciliations and descriptions of the effect of transition from previous AGAAP to A-IFRSs on the Group's equity and its net income are given
in the Statement of Changes in Equity.
Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified where applicable by the revaluation of
available-for-sale financial assets, financial assets and liabilities (including derivative instruments) at fair value through profit or loss, certain
classes of property, plant and equipment and investment property. A summary of the Group’s significant accounting policies is set out below.
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 Group’s operations require it to raise capital on an on-going basis to fund its planned exploration program and to commercialise its
tenement assets. If the Group does not raise 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 where exploration is funded by the
joint venture partner.
b)
Principles of Consolidation
The consolidated financial statements are prepared by combining the financial statements of all the entities that comprise the Group, being the
Company (the parent entity) and its subsidiaries as defined in accounting standards.. A list of subsidiaries appears in note 4 to the financial
statements. Consistent accounting policies are employed in the preparation and presentation of the consolidated financial statements.
The consolidated financial statements include the information and results of each subsidiary 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 Group
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 Cash Flow Statement, cash includes
cash on hand and in banks, and money market investments readily convertible to cash within 90 days, net of outstanding bank overdrafts.
34
Helix Resources Limited Annual Report 2006
Notes to the Financial Statements
d)
Income Tax
The income tax expense or revenue for the period is the tax payable on the current period's taxable income based on the national income tax rate
for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of
assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or
liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied
to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for
certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation
to these temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect
either accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts
will be available to utilise those temporary differences and losses. Deferred tax liabilities and assets are not recognised for temporary differences
between the carrying amount and tax bases of investments in subsidiaries where the parent entity is able to control the timing of the reversal of
the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Current and deferred tax balances
attributable to amounts recognised directly in equity are also recognised directly in equity.
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 Group. 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
Motor Vehicles
Straight line
Diminishing Value
Diminishing Value
10% - 33%
20% - 40%
22.5%
f)
Exploration and evaluation
Exploration and evaluation costs related to areas of interest are carried forward to the extent that:
(i)
(ii)
(iii)
the rights to tenure of the areas of interest are current and the Group controls the area of interest in which the expenditure has been
incurred; and
such costs are expected to be recouped through successful development and exploitation of the area of interest, or alternatively by its
sale; or
exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation
to, the area of interest are continuing.
Exploration and evaluation assets will be assessed annually for impairment and where impairment indicators exist, recoverable amounts of these
assets will be estimated based on discounted cash flows from their associated cash generating units.
The income statement will recognise expenses arising from the excess of the carrying values of exploration and evaluation assets over the
recoverable amounts of these assets. Expenditure capitalised under the above policy is amortised over the life of the area of interest from the date
that commercial production of the related mineral occurs. In the event that an area of interest is abandoned or if the directors consider the
expenditure to be of no value, accumulated costs carried forward are written off in the year in which that assessment is made. 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.
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 subsidiaries 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.
Investments and other financial assets
From 1 July 2004 to 30 June 2005
The Group has taken the exemption available under AASB 1 to apply AASB 132 and AASB 139 only from 1 July 2005. The Group has applied
previous AGAAP to the comparative information on financial instruments within the scope of AASB 132 and AASB 139. For further information on
previous AGAAP refer to the annual report for the year ended 30 June 2005.
g)
h)
i)
Helix Resources Limited Annual Report 2006
35
35
Notes to the Financial Statements
Adjustments on transition date: 1 July 2005
The nature of the main adjustments to make this information comply with AASB 132 and AASB 139 are that, with the exception of held-to-
maturity investments and loans and receivables which are measured at amortised cost (refer below), fair value is the measurement basis. Fair
value is inclusive of transaction costs. Changes in fair value are either taken to the income statement or an equity reserve (refer below). At the
date of transition (1 July 2005) changes to carrying amounts are taken to accumulated losses or reserves.
From 1 July 2005
The Group classifies its investments in the following categories: financial assets at fair value through profit or loss, loans and receivables, held-
to-maturity investments, and available-for-sale financial assets. The classification depends on the purpose for which the investments were
acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at each reporting
date.
Financial assets at fair value through profit or loss
This category has two sub-categories: financial assets held for trading, and those designated at fair value through profit or loss on initial
recognition. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by
management. The policy of management is to designate a financial asset if there exists the possibility it will be sold in the short term and the
asset is subject to frequent changes in fair value. Derivatives are also categorised as held for trading unless they are designated as hedges.
Assets in this category are classified as current assets if they are either held for trading or are expected to be realised within 12 months of the
balance sheet date.
Loans and receivables
Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an active market. They
arise when the Group provides money, goods or services directly to a debtor with no intention of selling the receivable. They are included in
current assets, except for those with maturities greater than 12 months after the balance sheet date which are classified as non-current assets.
Loans and receivables are included in receivables in the balance sheet.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Group's
management has the positive intention and ability to hold to maturity.
Available-for-sale financial assets
Available-for-sale financial assets, comprising principally marketable equity securities, are non-derivatives that are either designated in this
category or not classified in any of the other categories. They are included in non-current assets unless management intends to dispose of the
investment within 12 months of the balance sheet date.
Purchases and sales of investments are recognised on trade-date - the date on which the Group commits to purchase or sell the asset.
Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the
Group has transferred substantially all the risks and rewards of ownership.
Available-for-sale financial assets and financial assets at fair value through profit and loss are subsequently carried at fair value. Loans and
receivables and held-to-maturity investments are carried at amortised cost using the effective interest method. Realised and unrealised gains
and losses arising from changes in the fair value of the 'financial assets at fair value through profit or loss' category are included in the income
statement in the period in which they arise. Unrealised gains and losses arising from changes in the fair value of non monetary securities
classified as available-for-sale are recognised in equity in the available-for-sale investments revaluation reserve.
When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments are included in the income
statement as gains and losses from investment securities.
The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities),
the Group establishes fair value by using valuation techniques. These include reference to the fair values of recent arm's length transactions,
involving the same instruments or other instruments that are substantially the same, discounted cash flow analysis, and option pricing models
refined to reflect the issuer's specific circumstances.
The Group assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In
the case of equity securities classified as available for sale, a significant or prolonged decline in the fair value of a security below its cost is
considered in determining whether the security is impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss
- measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously
recognised in profit and loss - is removed from equity and recognised in the income statement. Impairment losses recognised in the income
statement on equity instruments are not reversed through the income statement.
j)
Derivatives
From 1 July 2004 to 30 June 2005
The Group has taken the exemption available under AASB 1 to apply AASB 132 and AASB 139 from 1 July 2005. The Group has applied
previous AGAAP in the comparative information on financial instruments within the scope of AASB 132 and AASB 139. For further information
on previous AGAAP refer to the annual report for the year ended 30 June 2005.
36
Helix Resources Limited Annual Report 2006
Notes to the Financial Statements
Adjustments on transition date: 1 July 2005
The nature of the main adjustments to make this information comply with AASB 132 and AASB 139 are that derivatives are measured on a fair
value basis. Changes in fair value are either taken to the income statement or an equity reserve (refer below). At the date of transition (1 July
2005) changes in the carrying amounts of derivatives are taken to accumulated losses or reserves, depending on whether the criteria for hedge
accounting are satisfied at the transition date.
From 1 July 2005
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair
value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so,
the nature of the item being hedged. The Group designates certain derivatives as either; (1) hedges of the fair value of recognised assets or
liabilities or a firm commitment (fair value hedge); or (2) hedges of highly probable forecast transactions (cash flow hedges).
The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk
management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment, both at hedge
inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions have been and will continue to be highly
effective in offsetting changes in fair values or cash flows of hedged items.
Fair value hedge
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with
any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Cash flow hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in equity in the
hedging reserve. The gain or loss relating to the ineffective portion is recognised immediately in the income statement.
Amounts accumulated in equity are recycled in the income statement in the periods when the hedged item will affect profit or loss (for instance
when the forecast sale that is hedged takes place). However, when the forecast transaction that is hedged results in the recognition of a non-
financial asset (for example, inventory) or a non-financial liability, the gains and losses previously deferred in equity are transferred from equity
and included in the measurement of the initial cost or carrying amount of the asset or liability.
When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative
gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the
income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is
immediately transferred to the income statement.
Derivatives that do not qualify for hedge accounting
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for
hedge accounting are recognised immediately in the income statement.
Financial instrument transaction costs
The Group has taken the exemption available under AASB 1 to apply AASB 132 and AASB 139 from 1 July 2005. The Group has applied
previous Australian GAAP (AGAAP) in the comparative information on financial instruments within the scope of AASB 132 and AASB 139.
Under previous AGAAP transaction costs were excluded from the amounts disclosed in the financial statements. Under A-IFRS such costs are
included in the carrying amounts. At the date of transition to AASB 132 and AASB 139 the adjustment to carrying amounts for the Group was nil.
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 Group in respect of services provided by the
employees up to reporting date.
Share-based payments
Share-based compensation benefits are provided to employees via various Share Option Plans.
Shares options granted before 7 November 2002 and/or vested before 1 January 2005
No expense is recognised in respect of these options. The shares are recognised when the options are exercised and the proceeds received
allocated to share capital.
Shares options granted after 7 November 2002 and vested after 1 January 2005
The fair value of options granted is recognised as an employee benefit expense with a corresponding increase in equity. The fair value is
measured at grant date and recognised over the period during which the employees become unconditionally entitled to the options.
k)
l)
Helix Resources Limited Annual Report 2006
37
37
Notes to the Financial Statements
The fair value at grant date is independently determined using a Black-Scholes option pricing model that takes into account the exercise price,
the term of the option, the vesting and performance criteria, the impact of dilution, the non-tradable nature of the option, the share price at grant
date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option.
The fair value of the options granted excludes the impact of any non-market vesting conditions (for example, profitability and sales growth
targets). Non-market vesting conditions are included in assumptions about the number of options that are expected to become exercisable. At
each balance sheet date, the entity revises its estimate of the number of options that are expected to become exercisable. The employee benefit
expense recognised each period takes into account the most recent estimate.
Upon the exercise of options, the balance of the share-based payments reserve relating to those options is transferred to share capital. The
market value of shares issued to employees for no cash consideration under the Share Plans is recognised as an employee benefits expense
with a corresponding increase in equity when the employees become entitled to the shares.
m)
Interest in Joint Venture Operations
Interest in joint venture operations, where material, are brought to account by including in the respective classifications, the Group's share of the
individual assets employed and liabilities and expenses incurred.
Details of interests in joint ventures are shown at Note 22.
Revenue Recognition
Revenue from the disposal of assets is recognised when the Group has passed control of the goods or other assets to the buyer. Interest on
bank deposits is recognised as income as it accrues.
Accounts Payable
Trade payables and other accounts payable are recognised when the Group becomes obliged to make future payments resulting from the
purchase of goods and services.
Receivables
Other receivables are recorded at amounts due less any specific provision for doubtful debts.
n)
o)
p)
q) 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 cash flow statement 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.
r)
Acquisition of Assets
The purchase method of accounting is used to account for all acquisitions of assets (including business combinations) regardless of whether
equity instruments or other assets are acquired. Cost is measured as the fair value of the assets given, shares issued or liabilities incurred or
assumed at the date of exchange plus costs directly attributable to the acquisition. Where equity instruments are issued in an acquisition, the
value of the instruments is their published market price as at the date of exchange unless, in rare circumstances, it can be demonstrated that the
published price at the date of exchange is an unreliable indicator of fair value and that other evidence and valuation methods provide a more
reliable measure of fair value. Transaction costs arising on the issue of equity instruments are recognised directly in equity.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values
at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair value of the Group's
share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the
subsidiary acquired, the difference is recognised directly in the income statement, but only after a reassessment of the identification and
measurement of the net assets acquired.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the
date of exchange. The discount rate used is the entity's incremental borrowing rate, being the rate at which a similar borrowing could be
obtained from an independent financier under comparable terms and conditions.
s)
Impairment of Assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to
amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units).
38
Helix Resources Limited Annual Report 2006
Notes to the Financial Statements
t)
Fair Value Estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The fair
value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based
on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Group is the current bid price;
the appropriate quoted market price for financial liabilities is the current ask price.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using
valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each balance
date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. Other techniques, such as
estimated discounted cash flows, are used to determine fair value for the remaining financial instruments.
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair
value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate
that is available to the Group for similar financial instruments.
u)
Provisions
Mine restoration and rehabilitation costs are provided for at the present value of future expected expenditures required to settle the Group’s
obligations on commencement of commercial production, discounted using a rate specified to the liability. When this provision is recognised a
corresponding asset is also recognised as part of the development costs of the mine to the extent that it is considered that the provision gives
access to future economic benefits. On an ongoing basis, the rehabilitation liability is re-measured at each reporting period in line with the
changes in the time value of money (recognised as an expense in the income statement and an increase in the provision), and additional
disturbances or changes in rehabilitation costs will be recognised as additions or changes to the corresponding asset and rehabilitation liability.
Provisions for legal claims are recognised when the Group has a present legal or constructive obligation as a result of past events; it is more likely
than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not
recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to
anyone item included in the same class of obligations may be small.
Helix Resources Limited Annual Report 2006
39
39
Notes to the Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2006
2. NOTES TO THE CASH FLOW STATEMENT
a)
Reconciliation of Cash
For the purposes of the cash flow statement and balance sheet, cash and cash equivalents include 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 cash flow statement is recon-
ciled to the related items in the balance sheet as follows:
CONSOLIDATED
COMPANY
2006
$
2005
$
2006
$
2005
$
39,942
1,018,088
1,111,088
1,151,030
617,785
1,635,873
39,940
1,111,088
1,151,028
1,,018,086
617,785
1,635,871
Cash at Bank
Cash on deposit
Total Cash
b) Reconciliation of loss after
income tax to cash flows used
Loss after income tax
(4,762,498)
(1,297,895)
(4,762,498)
(1,297,895)
Non-cash flows in Loss
Depreciation
Impairment of Exploration and
evaluation
Impairment of investments
(Gain)/loss on sale of invest-
ments
Loss on sale of property, plant
and equipment
Changes in Net Assets and
Liabilities
(Increase)/Decrease in Assets
(Increase)/decrease in trade and
other receivables
(Increase)/decrease in other
current assets
Increase/(decrease) in Liabili-
ties
Increase/(Decrease) in trade and
other payables
Provisions
44,530
2,983,021
-
56,993
796,052
54,501
44,530
2,983,021
-
1,071,793
(176,595)
1,071,793
3,717
584
3,717
(85,113)
47,665
(28,227)
(30,175)
77,970
(12,977)
55,604
(193,916)
(639,679)
(85,113)
47,665
(28,227)
(30,175)
(755,287)
56,993
796,052
54,501
(176,595)
584
77,970
(12,977)
55,604
(193,916)
(639,679)
Net Cash used in Operations
(755,287)
c) Non-cash Transactions
Shares to the value of $460,000 in Scimitar Resources Limited were received as part consideration from Heron Resources Limited for the sale of the
Menzies project.
40
Helix Resources Limited Annual Report 2006
Notes to the Financial Statements
3. TRADE AND OTHER RECEIVABLES
Prepayments - Insurances
Prepayments – Tenement application and rents
Deposits – Financial Institutions
Other
Total Current Receivables
4. FINANCIAL ASSETS
Available – for – sale financial assets:
Shares in unlisted companies – at cost
Shares in subsidiaries – at cost (4a)
Shares in listed corporations – at cost
Total Non-Current Financial Assets
Fair value of shares in listed corporations
4(a)
Shares in subsidiaries
CONSOLIDATED
COMPANY
2006
$
2005
$
2006
$
2005
$
21,848
308,485
249,554
163,201
743,088
890
-
2,000
2,890
2,000
69,513
-
236,897
78,088
384,498
890
-
-
890
-
21,848
308,485
249,554
163,201
743,088
890
925
2,000
3,815
2,000
69,513
-
236,897
78,088
384,498
890
925
-
1,815
-
Name
Country of Incorporation
Percentage Held
Percentage Held
Hillview Mining NL
Helix Mining Investment P/L
Australia
Australia
5.
OTHER ASSETS
2006
100%
100%
2005
100%
100%
CONSOLIDATED
COMPANY
2006
$
2005
$
2006
$
2005
$
Non-Current
Security Deposits
Total Other Assets – Non-Current
154,583
154,583
149,242
149,242
154,583
154,583
149,242
149,242
Helix Resources Limited Annual Report 2006
41
41
Notes to the Financial Statements
6. PROPERTY, PLANT AND EQUIPMENT
Net Book Value
Balance at 30 June 2005
Additions
Disposals
Depreciation
Balance at 30 June 2006
CONSOLIDATED AND COMPANY
Plant & Equipment
$
Motor Vehicles
$
Total
$
151,835
16,958
(19,721)
(36,182)
112,890
19,415
60,559
-
(8,348)
71,626
171,250
77,517
(19,721)
(44,530)
184,516
7.
EXPLORATION AND EVALUATION (NON-CURRENT)
Balance at beginning of the financial year
Disposals at written down value
Expenditure incurred during the year
Impairment losses
CONSOLIDATED
COMPANY
2006
$
11,201,564
(1,739,172)
1,735,848
(2,983,021)
2005
$
10,425,408
-
1,572,208
(796,052)
2006
$
11,201,564
(1,739,172)
1,735,848
(2,983,021)
2005
$
10,425,408
-
1,572,208
(796,052)
Balance at the end of the financial year
8,215,219
11,201,564
8,215,219
11,201,564
The Directors' assessment of carrying amount was after consideration of prevailing market conditions; previous expenditure carried out on the tene-
ments; and the potential for mineralisation based on both the entity's and independent geological reports. The ultimate value of these assets is de-
pendent upon recoupment by commercial development or the sale of the whole, or part, of the Group's interests in those areas for an amount at least
equal to the carrying value. There may exist, on the Group’s exploration properties, areas subject to claim under native title or containing sacred sites
or sites of significance to Aboriginal people. As a result, exploration properties or areas within the tenements may be subject to exploration and mining
restrictions.
8.
TRADE AND OTHER PAYABLES (CURRENT)
CONSOLIDATED
COMPANY
2006
$
2005
$
2006
$
2005
$
186,629
214,856
186,629
214,856
25,785
25,785
21,953
21,953
67,375
67,375
10,538
10,538
25,785
25,785
21,953
21,953
67,375
67,375
10,538
10,538
Trade payables
9.
PROVISIONS
Current
Employee Benefits
Balance at end of financial year
Non -Current
Employee Benefits
Balance at end of financial year
10.
SHARE CAPITAL
95,866,927 Fully Paid Ordinary Shares
(2005:76,660,120)
19,139,475 Listed Options (2005: 16,437,863)
Balance at end of financial year
45,138,972
156,992
45,295,964
43,409,956
157,099
43,567,055
45,138,972
43,409,956
156,992
45,295,964
157,099
43,567,055
42
Helix Resources Limited Annual Report 2006
Notes to the Financial Statements
Fully Paid Ordinary Shares
2006
2005
No.
$
No.
$
Balance at beginning of financial year
76,670,730
43,409,956
62,866,808
41,454,472
Shareholder Purchase Plan and Placement
-
-
13,693,312
2,053,997
Share placement through Rights Issues
19,167,830
1,916,783
Share Issue Costs
Issue of shares to JA Bunting & Associates as Option
payment over Loongana Project
Exercise of Options to Fully Paid Shares
-
-
28,367
(187,874)
-
107
-
-
100,000
10,610
-
(118,513)
20,000
-
Balance at end of financial year
95,866,927
45,138,972
76,670,730
43,409,956
Listed Options
2006
2005
No.
$
No.
$
Balance at beginning of financial year
16,437,863
157,099
16,448,473
157,099
Options expired during financial year
Options issue through Rights Issue
(16,437,863)
19,167,842
-
-
-
-
Exercise of Options to Fully Paid Shares
(28,367)
(107)
(10,610)
-
-
-
Balance at end of financial year
19,139,475
156,992
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.
11. OTHER RESERVES
Options Reserve
CONSOLIDATED
COMPANY
2006
$
2005
$
2006
$
2005
$
Balance at beginning of financial year
50,197
-
50,197
-
Share-based payments expenses recognised on adop-
tion of A-IFRS
-
50,197
-
50,197
Balance at end of financial year
50,197
50,197
50,197
50,197
Helix Resources Limited Annual Report 2006
43
43
Notes to the Financial Statements
12. ACCUMULATED LOSSES
CONSOLIDATED
COMPANY
2006
$
2005
$
2006
$
2005
$
Balance at beginning of financial year
(30,366,704)
(29,018,612)
(30,365,781)
(29,017,689)
Share-based payments expenses recognised
on adoption of A-IFRS
Net Loss attributable to members of the parent entity
-
(50,197)
-
(50,197)
(4,762,498)
(1,297,895)
(4,762,498)
(1,297,895)
Balance at end of financial year
(35,129,202)
(30,366,704)
(35,128,279)
(30,365,781)
Bilyuin, 2006
Field Reconnaissance 2006
Mapping, Glenburgh
44
Helix Resources Limited Annual Report 2006
Notes to the Financial Statements
13.
REVENUE
Loss from ordinary activities before Income Tax includes the following items of revenue and expense:
CONSOLIDATED
COMPANY
2006
$
2005
$
2006
$
2005
$
Operating Activities
Interest Revenue
Sale of Menzies MLA’s to Heron Resources
Other
Total Operating Revenue
Non-Operating Activities
Profit from Sale of listed securities in Diamond
Ventures NL
Profit from sale of RAMA Mines Mauritius shares
Profit from sale of shares in Scimitar Resources
Total Non – Operating Revenue
Sale of Mineral Areas
Loss from Sale of Menzies Highway Nickel Project
to Heron Resources
Loss from sale of Munni Munni, Fifield and Mt Venn
tenements to Platina Resources.
88,303
73,286
6,762
168,351
-
-
55,376
55,376
(183,398)
(943,771)
Total Revenue from Sale of Mineral Areas
(1,127,169)
111,638
-
10,278
121,916
300
177,387
-
177,687
88,303
73,286
6,762
168,351
-
-
55,376
55,376
-
-
-
(183,398)
(943,771)
(1,127,169)
111,638
-
10,278
121,916
300
177,387
-
177,687
-
-
-
Total Revenues
(903,442)
299,603
(903,442)
299,603
14.
LOSS FOR THE YEAR
Expenses:
Depreciation of non-current assets: Property, plant
and equipment
44,530
56,993
44,530
56,993
Exploration and evaluation impairment losses
2,983,021
796,052
2,983,021
796,052
Operating lease rental expenses: Minimum lease
payments
33,804
83,997
33,804
83,997
Loss for the year
(4,762,498)
(1,297,895)
(4,762,498)
(1,297,895)
15.
a)
COMMITMENTS
Operating Lease Commitments
Not later than 1 year
Later than 1 year but not later than 5 years
65,000
65,000
130,000
65,000
27,083
92,083
65,000
65,000
130,000
Helix Resources Limited Annual Report 2006
65,000
27,083
92,083
45
45
Notes to the Financial Statements
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 five months remaining. The Company has an option to renew the operating lease for a further period of two years and has execised the
option post balance date.
b) Exploration Expenditure Commitments
In order to maintain current rights of tenure to exploration tenements, the company and Group 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 Group’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 $57,007 (2005:$105,891)) and exploration expenditure of $519,800 (2005: $747,766).
16. KEY MANAGEMENT PERSONNELS’ REMUNERATION
The key management personnel of Helix Resources Limited during the year were:
R W Mosig -Executive Chairman 1 July 2005 to 31 March 2006 & Non-executive Chairman 1 April 2006 to 18 July 2006
R E Vittino -Chief Operating Officer 1 July 2005 to 31 March 2006 and Chief Executive Officer 1 April 2006 to 14 July 2006
G J Wheeler (Non-executive)
J den Dryver (Non-executive)
M H Wilson Exploration Manager (appointed 1 July 2005)
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 Remunera-
tion 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 consul-
tancy sources to ensure remuneration accords with market practice.
Salary &
Fees
2005
Primary
Perfor-
mance
Based
Payment
Post Employment
Non
Monet-
ary
Supera-
nnuation
Pre-
scribed
Benefits
Other Retire-
ment
Benefits
Equity
Options
Other
Benefits
Total
$
$
$
$
$
$
$
$
$
Key Manage-
ment Person-
nel
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
46
Helix Resources Limited Annual Report 2006
Notes to the Financial Statements
Salary &
Fees
2006
Primary
Perfor-
mance
Based
Payment
Non
Monetary
Supera-
nnuation
Post Employment
Pre-
scribed
Benefits
Other
Retire-
ment
Benefits
Equity
Options
Other
Benefits
Total
$
$
$
$
$
$
$
$
$
Key Man-
agement
Personnel
R W Mosig
168,864
R E Vittino
125,500
G Wheeler
J denDryver
M H Wilson
30,000
30,000
98,623
Total
452,987
-
-
-
-
-
-
-
-
-
-
-
-
12,000
12,000
-
-
8,876
32,876
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
180,864
137,500
30,000
30,000
107,499
485,863
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 Option was calculated using the Black Scholes Model using the follow-
ing input:
Issued 11 November 2003 –
1st tranche
Issued 11 November 2003
– 2nd tranche
Issued 11 November 2003
– 3rd tranche
Option Series
Grant date share price
Exercise price
Exercise volatility
Option life
Dividend yield
$0.17
$0.42
82%
5.5 years
-
Risk-free interest rate
5.136%
$0.17
$0.46
82%
5.5 years
-
5.136%
$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 17 to the financial state-
ments
EXECUTIVE SHARE OPTION PLAN
17.
As at 30 June 2006 the Company had issued 3,450,000 share options (30 June 2005 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 re-
ceived from executives and employees is not recognised in the financial statements except for the purposes of determining key management person-
nels’ 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.
Helix Resources Limited Annual Report 2006
47
47
Notes to the Financial Statements
2006
Further details are disclosed below:
Executive Share Option Plan
exercise price
No. Weighted average
exercise price 2005
No. Weighted average
3,450,000 $0.46
3,450,000 $0.46
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)
3,450,000 $0.46
3,450,000 $0.46
Balance at end of financial year (v)
Options - Series No. Vested Unvested Grant Date Expiry
date
$ Fair value at grant
Issued 26 May 1999 416,665 416,665 - 26/5/99 29/3/09 $0.42 Not valued
$0.46 Not valued
Issued 26 May 1999 416,667 416,667
$0.50 Not valued
Issued 26 May 1999 416,668 416,668
Issued 11 Nov 2003 733,335 733,335 - 11/11/03 29/3/09 $0.42 9.36c per option
$0.46 8.84c per option
Issued 11 Nov 2003 733,333 733,333
$0.50 8.37c per option
Issued 11 Nov 2003 733,332 -
3,450,000
Date Exercise
11/11/03
11/11/03
(i) Balance at beginning of financial year
733,332
26/5/99
26/5/99
29/3/09
29/3/09
29/3/09
29/3/09
Price
-
-
-
(ii) Cancelled during the financial year
There were no options cancelled during the year ended 30 June 2006 and 2005.
(iii) Granted during the financial year
There were no options granted during the year ended 30 June 2006 and 2005.
(v) Balance at end of the financial year
(iv) Exercised during the financial year
There were no options exercised during the financial years ended 30 June 2006 and 2005.
Options Series No. Vested. UnVested Grant Date Expiry
Issued 26 May 1999
416,665
416,665
-
26/5/99
Date Exercise Price
grant date
$ Fair value at
Not valued
$0.42
29/3/09
Issued 26 May 1999
416,667
416,667
Issued 26 May 1999
416,668
416,668
Issued 11 Nov 2003
733,335
733,335
Issued 11 Nov 2003
733,333
733,333
Issued 11 Nov 2003
733,332
733,332
-
-
-
-
-
26/5/99
26/5/99
29/3/09
29/3/09
11/11/03
29/3/09
11/11/03
11/11/03
29/3/09
29/3/09
$0.46
$0.50
$0.42
$0.46
$0.50
Not valued
Not valued
9.36c per option
8.84c per option
8.37c per option
3,450,000
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 2006 are fully vested.
48
Helix Resources Limited Annual Report 2006
Notes to the Financial Statements
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 execu-
tives and employees is not recognised in the financial statements except for the purposes of determining key management personnels’ remunerations in
respect of that financial year as disclosed in note 16 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 (2005: $nil)
18.
RELATED PARTY AND DIRECTORS’ DISCLOSURES
a) Other Transactions with key management personnel
The loss from ordinary activities before income tax includes the following items of expenses that resulted from transactions other than remuneration with
key management personnel or their personally-related entities. Transactions between related parties are on normal commercial terms and conditions
unless otherwise stated.
Greg Wheeler Consulting Pty Ltd provided professional services to the value of $78,785 (2005 $10,000) 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 2006 to Mr Greg Wheeler.
b) Key Management Personnels’ Equity Holdings
Fully paid ordinary shares issued by Helix Resources Limited
Balance @
1/7/05
Granted as
remuneration
No.
No.
Received on
exercise of
options
No.
Net other
change
Balance @
30/6/06
Balance held
nominally
No.
No.
No.
Key Management Personnel
R W Mosig
R E Vittino
G Wheeler
J den Dryver
A R Martin
M H Wilson
Total
2,484,846
900,000
753,880
-
262,095
10,000
4,410,821
-
-
-
-
-
-
-
-
-
-
-
-
-
-
500
2,485,346
510,000
(53,880)
-
(262,095)
2,500
197,025
1,410,000
700,000
-
-
12,500
4,607,846
-
-
-
-
-
--
-
It should be noted that Mr Martin resigned on 31 July 2005 and therefore the balance of securities held as at 30 June 2006 is nil as he is no longer a
specified director and therefore the net change of 262,095 is not as a result of the sale of any securities whilst a specified director.
Helix Resources Limited Annual Report 2006
49
49
Notes to the Financial Statements
Listed Share Options issued by Helix Resources Limited
Bal @ 1/7/05
No.
Granted as re-
muneration
No.
Exercised
Other change
Bal @ 30/6/06
No.
No.
No.
Balance held
nominally
No.
Key Manage-
ment Personnel
R W Mosig
R E Vittino
G.Wheeler
J. den Dryver
A R Martin
M H Wilson
Total
857,516
614,271
-
-
85,538
-
1,557,325
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(214,271)
-
-
(85,538)
2,500
857,516
400,000
-
-
-
2,500
(297,309)
1,260,016
-
-
-
-
-
-
-
It should be noted that Mr Martin resigned on 31 July 2005 and therefore the balance of securities held as at 30 June 2006 is nil as he is no longer a
director and therefore the net change of 85,538 is not as a result of the sale of any securities whilst a specified director.
Executive Share Options issued by Helix Resources Limited
Bal @
1/7/05
Granted as
remuneration
Exer-
cised
Other
change
Bal @
30/6/06
Bal vested
@ 30/6/06
No.
No.
No.
No.
No.
No.
Vested
but not
exer-
cise-
able
No.
Vested and
exercis-
able
No.
Op-
tions
vested
during
year
No.
Key Manage-
ment Per-
sonnel
R W Mosig
1,600,000
R E Vittino
900,000
G Wheeler
J denDryver
A R Martin
M H Wilson
-
-
950,000
210,000
Total
3,660,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,600,000
1,600,000
900,000
900,000
-
-
-
-
950,000
950,000
210,000
210,000
3,660,000
3,660,000
-
-
-
-
-
-
-
1,600,000
366,667
900,000
183,333
-
-
-
-
950,000
183,332
210,000
50,000
3,660,000
783,332
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 key management personnel.
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
366,667 options @ 8.84c
366,667 options @ 8.37c
(first tranche)
(second tranche)
(third tranche)
183,334 options @ 9.36c
183,334 options @ 8.84c
183,334 options @ 8.37c
(first tranche)
(second tranche)
(third tranche)
Further details of the options granted during the year are contained in note 16 and 17 to the financial statements.
50
Helix Resources Limited Annual Report 2006
Notes to the Financial Statements
19. INCOME TAX
Accounting loss before tax from continuing
operations
Accounting loss before tax from discontinuing
operations
CONSOLIDATED
COMPANY
2006
2005
2006
2005
(4,762,498)
(1,297,895)
(4,762,498)
(1,297,895)
-
-
-
-
Accounting loss before tax
(4,762,498)
(1,297,895)
(4,762,498)
(1,297,895)
Income Tax Expense to Accounting Loss:
Tax expense at the statutory income tax rate
of 30%
Sundry non-deductible (deductible) expenses
- non-deductible expenses
- taxable gain on sale of tenements
Benefit of tax losses and temporary differ-
ences not brought to account
Income tax benefit
Income Statement:
Current income tax charge
Deferred income tax
Relating to origination and reversal of
temporary differences
Current year tax losses not recognised in the
current period
Income tax benefit reported in income
statement
Income tax benefit reported in income state-
ment
Unrecognised Deferred Tax Balances:
(1,428,749)
(389,369)
(1,428,749)
(389,369)
1,464
299,400
4,739
-
1,464
299,400
1,127,885
384,630
1,127,885
-
-
-
4,739
-
384,630
-
(331,057)
(632,536)
(331,057)
(632,536)
(796,828)
1,127,885
-
-
247,906
384,630
-
-
(796,828)
1,127,885
-
-
247,906
384,630
-
-
Unrecognised deferred tax asset losses
11,395,447
10,797,624
10,798,203
10,200,380
Unrecognised deferred tax assets other
24,145
45,734
24,145
45,734
Unrecognised deferred tax liabilities
(2,557,111)
(3,127,622)
(2,557,111)
(3,127,622)
Net Unrecognised deferred tax assets
8,862,481
7,715,736
8,265,237
7,118,492
20. SEGMENT INFORMATION
The Group 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.
Helix Resources Limited Annual Report 2006
51
51
Notes to the Financial Statements
21. EARNINGS PER SHARE
Basic loss per share
Diluted loss per share
COMPANY
2006
2005
Cents Per share
Cents Per share
(5.36)
(5.36)
(1.84 )
(1.84 )
Basic Loss per Share
The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:
Earnings / (loss) (a)
Weighted average number of ordinary shares (b)
2006
$
(4,762,498)
2006
No.
88,895,929
2005
$
(1,297,895)
2005
No.
70,613,737
(a) Earnings used in the calculation of basic earnings per share is net loss after tax of $4,762,498 (2005 : $1,297,895).
(b) The staff and listed options are not 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 earn-
ings 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:
2006
$
2005
$
Earnings (a)
(4,762,498)
(1,297,895)
Weighted average number of ordinary shares and potential ordi-
nary shares (b)
12 months to 30 June 2006
No.
88,895,929
12 months to 30 June 2005
No.
70,613,737
(a) Earnings used in the calculation of diluted loss per share is net loss after tax of $4,762,498 (2005: $1,297,895).
(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
2006
No.
3,450,000
19,139,475
2005
No.
3,450,000
16,437,863
52
Helix Resources Limited Annual Report 2006
Notes to the Financial Statements
22. INTEREST IN JOINT VENTURES
The parent entity has entered into the following unincorporated joint ventures:
Joint Venture Project
Percentage Interest
Principal Exploration Activities
Bilyuin
Tunkillia
90% (2005:90%) (JA Bunting & Associates)
100% (2005: 100%) Diluting to 49% (Mintoaur Exploration)
Lake Everard Uranium
100% (2005: 100%) Diluting to 49% (Toro Energy)
Yalleen
100% (2005: 100%) Diluting to 30% (API Management Pty Ltd)
Gold
Gold
Uranium
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 Group’s interest in exploration expenditure
in the above mentioned joint ventures is included in note 7 and at 30 June 2006 is $136,149 (2004 : $399,220).
FINANCIAL INSTRUMENTS
23.
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 main risks are determined to be interest rate and credit risk.
The Group's exposure to interest rate risk and effective weighted average interest rate for classes of financial assets is set out below:
Floating Interest Rate
Maturity
Average
Interest
Rate
%
Fixed Inter-
est Rate
Less than 1
year
More than 1
Year
Non Interest
Bearing
$
$
$
$
Total
$
2006
Financial Assets
Other Receivables (incl tenement app’ns)
Financial assets
Cash and cash equivalent assets
Security deposits and deposits at
financial institutions
5.1%
5.3%
Financial Liabilities
Trade Payables
2005
Financial Assets
Other Receivables
Financial assets
Cash and cash equivalent assets
Security deposits and deposits at
financial institutions
5.07%
5.17%
Financial Liabilities
Trade Payables
-
-
1,150,828
-
-
-
-
-
-
-
249,554
154,583
435,082
890
200
-
435,082
890
1,151,028
404,137
1,150,828
249,554
154,583
436,172
1,991,137
-
-
-
-
1,635,673
-
-
-
-
-
-
-
-
-
-
-
236,897
149,242
186,625
186,625
186,625
186,625
41,699
890
200
-
41,699
890
1,635,873
386,139
1,635,673
236,897
149,242
42,789
2,064,601
-
-
-
-
-
-
214,856
214,856
214,856
214,856
53
53
Helix Resources Limited Annual Report 2006
Notes to the Financial Statements
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 Group. The Group has adopted
the policy of only dealing with credit worthy counterparties and obtaining sufficient collateral or other security where appropriate, as a means of mitigat-
ing the risk of financial loss from defaults. The Group measures risk on a fair value basis.
The maximum credit risk on financial assets of the Group 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.
24. EMPLOYEE ENTITLEMENTS
The aggregate employee entitlement liability recognised 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 financial year
25. REMUNERATION OF AUDITORS
a) Auditor of the Parent Entity
Auditing the financial report
Taxation services
Other services – A-IFRS
CONSOLIDATED
COMPANY
2006
$
2005
$
2006
$
2005
$
25,784
21,953
47,737
67,375
10,538
77,913
25,784
21,953
47,737
67,375
10,538
77,913
No
7
2006
$
No
8
2005
$
No
7
2006
$
No
8
2005
$
25,500
-
-
25,500
27,000
6,300
7,700
41,000
25,500
-
-
25,500
27,000
6,300
7,700
41,000
The auditor of Helix Resources Limited for the 2006 financial year is Bentlys mri Perth Partnership.
54
Helix Resources Limited Annual Report 2006
Notes to the Financial Statements
26. EXPLANATION OF TRANSITION TO AUSTRALIAN EQUIVALENTS TO IFRS.
The impacts of the adoption of Australian equivalents to International Financial Reporting Standards were outlined in the 30 June 2005 Annual Report.
Reconciliations of equity at the date of transition to A-IFRS compared to previous accounts prepared under Australian Generally Accepted Accounting
Principles [“AGAAP”] is outlined in the Consolidated Statement of Changes in Equity.
There are no material differences between the financial statements presented under A-IFRS and the financial statements presented under previous
AGAAP.
27. ADDITIONAL COMPANY INFORMATION
Helix Resources Limited is a listed public company, incorporated and operating in Australia.
Registered Office Principal Place of Business
9 Richardson Street 9 Richardson Street
WEST PERTH WA 6005 WEST PERTH WA 6005
Tel (08) 9321 2644 Tel (08) 9321 2644
The financial report of Helix Resources Limited for the year ended 30 June 2006 was authorised for issue in accordance with a resolution of the directors
on the 7th day of September 2006.
Helix Resources Limited Annual Report 2006
55
55
Shareholding Information
SHAREHOLDING INFORMATION
ANALYSIS OF SHAREHOLDERS AS AT 7 SEPTEMBER 2006
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 Shareholders
Number of Shares
150
521
432
865
149
2,117
98,384
1,765,080
3,648,745
32,006,965
58,347,753
95,866,927
Number of shareholders holding less than a marketable parcel
405
670,190
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
Dr. Peter John Woodford
Colter Holdings Pty Ltd
Blamnco Trading Pty Ltd
Mr Peter John Woodford
Zero Nominees Pty Ltd
Anglogold Ashanti Australia
Nefco Nominees Pty Ltd
Technica Pty Ltd
Niddrie Holdings Pty Ltd
C H Administration Pty Ltd
Mr Daniel Ronald Watson
ANZ Nominees Limited
Mr Maxwell Alfred Kippe
Yan’s Investment Pty Ltd
Ms Seiko Furuse & Mr Savas Turem
Mr Abdelaziz Soliman
National Nominees Limited
Spar Resources Pty Ltd
Mr John Halaska
Top 20 Total
No of Shares
8,953,460
4,158,383
2,547,179
2,000,000
1,660,743
1,435,007
1,413,417
1,350,831
1,297,613
1,229,115
1,000,000
1,000,000
804,814
750,000
700,000
650,000
628,500
623,273
532,000
510,416
%
9.34
4.34
2.66
2.09
1.73
1.49
1.47
1.41
1.35
1.28
1.04
1.04
0.84
0.78
0.73
0.68
0.67
0.65
0.55
0.53
32,994,751
34.41
VOTING RIGHTS
One vote for each ordinary share held in accordance with the Company's Constitution.
56
Helix Resources Limited Annual Report 2006
Shareholding Information
SUBSTANTIAL SHAREHOLDERS
Shareholder
Yandal Investments Pty Ltd
P Woodford
DIRECTORS' INTEREST IN SHARE CAPITAL
No of Shares
8,953,460
6,768,678
% of
Issued Capital
9.34
7.06
Director
G J Wheeler
J den Dryver
G Dunbar
NUMBER OF OPTIONS HELD
Spread of Holdings
1–1000
1,001–5,000
5,001–10,000
10,001–100,000
100,001and over
TOTAL
Fully Paid Ordinary Shares
Listed Options
Staff Options
700,000
-
-
700,000
-
-
-
-
-
-
-
-
Number of Option
Holders
Number of Options
74
131
64
142
41
452
42,364
372,320
476,085
4,939,943
13,308,763
19,139,475
Helix Resources Limited Annual Report 2006
57
57
Shareholding Information
PERCENTAGE HELD BY 20 LARGEST OPTIONHOLDERS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10,
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Optionholder
Yandal Investments Pty Ltd
Mrs Li Ming Yu
Blamnco Trading Pty Ltd
Technica Pty Ltd
Mr Manuel Arthur Samios
Shipsters Investments Pty Ltd
Zero Nominees Pty Ltd
Davsms Investments Pty Ltd
Mr Pak Hang Chan
Mr Leonid Charuckyj
Mrs Florence Lynette Kellett
Aquatreat Services Pty Ltd
Ms Seiko Furuse & Mr Savas Turem
Mr Andrew Denis Story & Mrs Evelyn Muriel Story
Mr Eugene Severi
Hazurn Pty Ltd
Scalia Holdings Pty Ltd
Mr Jia Jian Chen & Mrs Zhang Ping
Mrs Rhonda Karen Beatson
Mr Ralph Maurice Henger & Mr Mark James Henger
Top 20 Total
No of Options
2,219,054
1,020,000
850,000
849,523
530,000
509,500
405,007
400,000
320,000
300,000
300,000
300,000
300,000
300,000
298,623
250,000
230,000
225,000
200,000
200,000
%
11.59
5.33
4.44
4.43
2.77
2.66
2.12
2.09
1.67
1.57
1.57
1.57
1.57
1.57
1.56
1.31
1.20
1.17
1.04
1.04
10,006,707
52.28
The above listed options are due to expire on 31 March 2007 and are exercisable at $0.14 each.
58
Helix Resources Limited Annual Report 2006
Tenement Schedule
Tenement
Name
Mineral
Ownership
GAWLER JV
EL2854
EL3403
EL3335
GLENBURGH
EL09/0644
EL09/1079
PL09/0424
PL09/0425
PL09/0426
PL09/0427
Lake Everard West
Lake Everard
Childarra
Glenburgh
Glenburgh
Glenburgh
Glenburgh
Glenburgh
Glenburgh
ELA09/1278
Carey Downs
ELA09/1279
Callytharra Springs
ELA09/1280
Milly Milly
ELA09/1281
Warrigal
ELA09/1282
Carradarra Well
ELA09/1283
Deep Well
ELA09/1284
Challenger
ELA09/1285
Minga
ELA09/1286
Yalbra Well
ELA09/1287
Willagrad Bore
ELA09/1288
Garden Well
ELA09/1289
Rabbit Bore
ELA09/1325
Glenburgh
MLA09/0087
Glenburgh
MLA09/0088
Glenburgh
MLA09/0122
Glenburgh
MLA09/0123
Glenburgh
MLA09/0124
Glenburgh
MLA09/0125
Glenburgh
LAKE THROSSELL*
ELA38/1807
Lake Throssell
ELA38/1808
Cosmo Newberry
EL38/1476
Mt Venn East
ELA38/1775
Browns Gap
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Gold
Helix Resources Limited 100%
Minotaur Exploration Earning 51%
Toro Energy Earning 51% Uranium Rights
Helix Resources Limited 100%
Helix Resources Limited 100%
*(Tenements were sold to Crusader Holdings NL for
750,000 shares in July 2006)
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
Helix Resources Limited Annual Report 2006
59
59
Tenement Schedule
Tenement
Name
Mineral
Ownership
WEST PILBARA
EL47/1169
EL47/1170
EL47/1171
Yalleen
Yalleen
Yalleen
Diamonds
Helix Resources Limited 100%
Diamonds
API Limited earning 70% (Iron Ore)
Diamonds
EL47/1144
Pinderi Hills
Diamonds
Helix Resources Limited 100%
EL47/1145
Pinderi Hills
ELA47/1146
Cooya Pooya
EL47/1075
Munni Munni South
ELA47/1089
Munni Munni South
ELA47/1090
Munni Munni South
MLA47/0786
Munni Munni South
MLA47/0787
Munni Munni South
MLA47/0788
Munni Munni South
MLA47/0789
Munni Munni South
MLA47/0790
Munni Munni South
MLA47/0791
Munni Munni South
MLA47/0792
Munni Munni South
MLA47/0793
Munni Munni South
MLA47/0794
Munni Munni South
NARRACOOTA / BILYUIN
EL52/1496
Bilyuin
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Diamonds
Gold
Helix Resources Limited 90%
JA Bunting and Assoc. 10%
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
60
Helix Resources Limited Annual Report 2006
Corporate Directory
Directors
Gregory J Wheeler
Executive Chairman
John den Dryver
Gordon Dunbar
Non-executive Director
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
Facsimile: +61 8 9321 3909
Email:
helix@helix.net.au
Website: www.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
Facsimile: +61 8 9389 7871
Auditor
Bentleys mri Perth Partnership
Level 1, 10 Kings Park Road
West Perth Western Australia 6005
Telephone: +61 8 9480 2000
Facsimile: +61 8 9322 7787
Stock Exchange
The Company Securities are quoted on the Australian
Stock Exchange Limited
CODE: HLX and HLXO
Helix Resources Limited Annual Report 2006
61
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