HELIX RESOURCES LIMITED
annual report
2008
Contents
Chairman’s Review...............................................................................2
Review Of Operations ...........................................................................3
Yalleen Iron Ore Joint Venture – Western Australia ...................................3
Glenburgh Gold Project – Western Australia ............................................8
Lake Everard (Incl. Tunkillia) Project – South Australia............................. 11
Parachilna Project - South Australia ................................................... 15
Booyeema Nickel Joint Venture – Western Australia ................................ 17
West Pilbara Project – Western Australia.............................................. 19
Corporate Governance ........................................................................ 22
Directors’ Report ............................................................................... 26
Auditor’s Independence Declaration ....................................................... 31
Independent Audit Report.................................................................... 32
Directors’ Declaration......................................................................... 34
Balance Sheet ................................................................................... 35
Income Statement.............................................................................. 36
Cash Flow Statement .......................................................................... 37
Statement Of Changes In Equity............................................................. 38
Notes To The Financial Statements ........................................................ 39
Number Of Shares Held ....................................................................... 60
Tenement Schedule............................................................................ 63
Corporate Directory ........................................................................... 65
Helix Resources Limited Annual Report 2008
1
Chairman’s Review
Dear Shareholder
I am pleased to present the 2008 Annual Report for the Company.
Firstly, I wish to thank the Board and Staff of Helix for their efforts during the year and as a
team look forward to continuing to create value for our shareholders through mineral
exploration and development.
I also welcome as a significant shareholder AMCI/First Reserve Corporation, who acquired a
15% interest via a placement at $0.485 to raise $8.245 million in December 2007, and have
subsequently moved to 19.9% via on-market purchases.
The Company’s strategy is to acquire large tenement holdings in prospective mineral
provinces and utilise our corporate and geological expertise to create and extract value for
the benefit of our shareholders. We currently have exposure to 112 million tonnes of iron ore
grading 56% through our Yalleen JV in the Pilbara, as well as over 900,000 oz gold in our
Tunkillia JV and Glenburgh Projects, with each Project having exploration upside.
I outline below graphs which highlight our recent performance.
Significant Events over the last 4 years
1. 18th July 06 – New Executive Management Team
2. 13th Dec 06 – CID (iron ore) intersected at
Yalleen
3. 24th Oct 07 –Positive results continue at Yalleen
Kumina and Robe Exit Prospects
4. 5th Dec 07 – Placement at 48.5 cents to
AMCI/First Reserve to raise $8.245 million
5. 3rd June 08 – Maiden inferred resource for
Yalleen JV – 112Mt grading 56% Fe.
I draw your attention to the Operational Report which discusses our Mineral assets in detail
and encourage you to visit our website at www.helix.net.au for the latest information
regarding our activities.
I look forward to your attendance at the forthcoming Annual General Meeting.
Yours faithfully
Greg J Wheeler
Executive Chairman
Helix Resources Limited Annual Report 2008
2
Review of Operations
YALLEEN IRON ORE JOINT VENTURE – WESTERN AUSTRALIA
Helix Resource Limited (30%), API (AMCI/Aquila) (70%) iron ore rights
Helix Resources Limited 100% other minerals
EL 47/1169-1171
Project Summary
(cid:190)
600km² tenement area located in the Pilbara region of WA, 50km SE of
Pannawonica;
Initial Inferred Resource of 112 Mt @ 55.6% Fe for Kumina Creek and Robe Exit
prospects based on drilling to December 2007 released to ASX on 3rd June 2008;
Resource estimate provides confidence regarding the overall potential of several
hundred million tonnes of iron ore once the other identified prospects have been
drilled, assessed and included;
Drilling since January 2008 continues to
mineralisation. Better intercepts have included:
intersect broad zones of CID
• 27.55 metres at 58.67% Fe from 17.25 metres in YATX206;
• 20.05 metres at 58.52% Fe from 18.35 metres in YATX207; and
• 20.3 metres at 58.38% Fe from 35.2 metres in YABA055.
$4.1M budget through to Q2 2009 for drilling and assessing extensions to Kumina
Creek and Robe Exit Prospects, 200m x 400m drill coverage of the 8km² Bonham
Prospect and commencement of metallurgical, engineering and environmental
studies;
Internal desktop studies by Helix based on available data for other Pilbara iron
ore companies suggest the project economics for Yalleen are positive.
(cid:190)
(cid:190)
(cid:190)
(cid:190)
(cid:190)
Project Background
The Yalleen Iron Ore JV Project covers approximately 600km² of the upper reaches of
the Robe River drainage system. Pisolitic iron mineralisation in buried palaeodrainage
systems developed from erosion of iron rich strata in the Hamersley Range to create a
series of channel deposits within the drainage basins. These deposits are variably
covered by younger unconsolidated alluvial sediments. The Brockman and Marra Mamba
Formations, host to many of the major iron ore deposits in the Pilbara region of WA,
form the main exposure in the project area.
The Yalleen Joint Venture is managed by API Management Pty Ltd (API) for the Australian
Premium Iron JV (Aquila/AMCI) and forms part of their larger West Pilbara Iron Ore
Project (WPIOP) which in March 2008 estimated a total (measured, indicated and
inferred) resource of 493Mt at 57% Fe from deposits in separate joint ventures with Red
Hill Iron Ltd and Cullen Resources Limited and their own projects (AQA ASX release 7
March 2008). These projects are approximately 50-70 km southwest of the Yalleen
Project area.
API’s exploration on Yalleen throughout 2005 and 2006 concentrated on assessing the
buried channel iron deposits (CID) potential within the ancient Fortescue Valley area,
Helix Resources Limited Annual Report 2008
3
focusing on targets identified from a HoistEM geophysical survey that has been useful in
identifying palaeochannels. A program of drilling completed at the first target - Kumina
Creek - in December Quarter 2006 successfully identified a buried CID over 2,700m by
900m and up to 30 metres thick grading up to 60% Fe.
Work in 2007 and 2008 has concentrated on definition and drilling of known channel iron
targets at the Kumina Creek and Robe Exit prospects and bedded iron mineralisation at
the Bonham prospect.
Figure 1 – Yalleen Iron Ore JV location plan
Helix Resources Limited Annual Report 2008
4
Resource Estimate
Runge Pty Ltd was commissioned by Helix to carry out a resource estimation for the
Yalleen Project in May 2008, covering all drilling up to December 2007.
The Runge Mineral Resource Estimates for the Kumina Creek and the Robe Exit Iron Ore
deposits are summarised in Table A.
Table A: Yalleen Project May 2008 Inferred Mineral Resource at 50% Fe Cut off
Deposit
Kumina Creek
Robe Exit
Grand Total
Tonnes
MT
68.7
43.5
112.1
Fe
%
56.16
54.65
55.57
SiO2
Al2O3
%
6.60
6.84
6.69
%
4.20
4.58
4.35
P
%
0.058
0.065
0.060
S
%
0.02
0.01
0.02
LOI
%
8.23
9.97
8.91
Mn
%
0.06
0.08
0.07
MgO
%
0.14
0.16
0.15
The Mineral Resource estimate complies with recommendations in the Australian Code
for Reporting of Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves
Committee (JORC). Therefore it is suitable for public reporting.
The estimate is based on data from surface Reverse Circulation (RC) and Diamond (DD)
drill holes, all of which all were completed by API to December 2007.
Drilling at the Kumina Creek deposit has been carried out at 100m hole spacings on 200m
section spacings. Drilling at the Robe Exit deposit is more broadly spaced and is typically
at 200m hole spacings on 400m line spacings.
Mineralised envelopes were created using the
logged channel geology and a 50% Fe cut-off grade.
The deposits were estimated using a standard
Surpac block model with inverse distance squared
grade interpolation for all elements.
Inspecting core trays at Yalleen
The geological model and grade distribution
evident at the Yalleen project conform to well
understood CID deposits which are exploited in the
region. Drill data is relatively sparse so geological
and grade continuity is assumed rather than
verified. Consequently the resources have been classified as an Inferred Mineral
Resource for each deposit.
A resource estimate with a higher grade cut off of 55% Fe was also calculated to assess
the tonnes and grade on tighter parameters, the estimates are summarised in Table B:
Helix Resources Limited Annual Report 2008
5
Table B: Yalleen Project May 2008 Inferred Mineral Resource at 55% Fe Cut off
Deposit
Kumina Creek
Robe Exit
Grand Total
Tonnes
MT
51.7
18.1
69.8
Fe
%
56.97
56.22
56.78
SiO2
Al2O3
%
5.91
5.34
5.76
%
3.98
4.16
4.02
P
%
0.059
0.065
0.061
S
%
0.02
0.01
0.02
LOI
%
8.08
9.81
8.53
Mn
%
0.05
0.08
0.06
MgO
%
0.13
0.14
0.13
No Al2O3 cut-off has been applied to this resource estimation.
Full details on the resource estimate parameters can be viewed in the 3 June 2008 ASX
release on the Company’s website: www.helix.net.au
The information in this announcement that relates to Mineral Resources at the Yalleen Iron Ore Project is based on information
compiled by Mr P Payne who is a member of the Australian Institute of Mining and Metallurgy and employee of Runge Limited. Mr
Payne has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code of
Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Payne consents to the inclusion in the report of the
matters based on the information in the form and context in which it appears.
Helix Assessment of Yalleen Project Fe Target Potential
The Yalleen Project comprises multiple CID and BID targets identified from historical
drilling, the HoistEM geophysical survey completed by API in 2006, as well as drilling
results by the managers API since 2006.
Based on the Runge Inferred Resource estimate of 112Mt at 55.6% Fe on the Kumina
Creek and Robe Exit prospects, there is a good level of confidence for an exploration
target* potential of several hundred million tonnes of iron ore for the Project once the
other identified deposits have been similarly assessed and included.
*Note 1: The Exploration Target discussed above should not be misinterpreted as an estimate of
Mineral Resources or Ore Reserves. While the company remains optimistic that the joint venture will
be in a position to report resources in the future, any discussion in relation to targets, resources,
reserves or ‘ore’ is only conceptual in nature as there has been insufficient drilling to define a Mineral
Resource and it is uncertain if further exploration will result in the determination of a Mineral
Resource.
We are encouraged by the technical and financial
viability results of API’s JV’s to the West as
outlined in their Pre-Feasibility Study released to
the ASX in May 2008. Whilst not specific to the
Yalleen Project, their cost structure EBITDA
estimates of +US$40/tonne at expected 2008 iron
ore prices, their production development focus for
2012 1st shipment and the expected benefits which
would emerge from access to API Stage 1
infrastructure given API’s 70% interest in Yalleen
and Aquila and AMCI’s shareholding interests in
Helix are positive.
Yalleen field visit June 2008
Helix Resources Limited Annual Report 2008
6
Also, with the Rio Pannawonica rail line situated less than 12kms from the Kumina Creek
deposit and the 3rd party infrastructure access debate escalating, alternates for
transport may emerge which may lessen capital expenditure and potentially shorten any
future development timelines.
Internal desktop studies by Helix based on available data for Pilbara iron ore companies
suggest the project economics for Yalleen are positive, although significant work is
required to be completed by the JV Manager and appropriately qualified experts prior to
the release of economic studies confirming this preliminary assessment.
HELIX’S IRON ORE EXPOSURE
In the context of the West Pilbara Iron Ore Project (WPIOP)
Aquila Resources Limited
Aquila Resources Limited
(Direct or via controlled entity)
(Direct or via controlled entity)
API Management Pty Ltd
API Management Pty Ltd
(Australia Premium Iron JV)
(Australia Premium Iron JV)
AMCI Australia Pty Ltd
AMCI Australia Pty Ltd
(Direct or via controlled entity)
(Direct or via controlled entity)
50%
50%
WPIOP
WPIOP
Stage 1
Stage 2
AQA Shareholding*
AQA Shareholding*
AMCI: 8.5%
AMCI: 8.5%
CUL Shareholding*
CUL Shareholding*
AQA: 16%
AQA: 16%
AMCI: 17%
AMCI: 17%
70%
Mt Stuart JV
Mt Stuart JV
Cullen Resources NL
Cullen Resources NL
contributing at 30%
contributing at 30%
60% (earning 80%)
Red Hill JV
Red Hill JV
Red Hill Iron Ltd
Red Hill Iron Ltd
Diluting to 20%
Diluting to 20%
70%
Yalleen Iron Ore JV
Yalleen Iron Ore JV
Helix Resources Ltd
Helix Resources Ltd
Contributing at 30%
Contributing at 30%
100%
Mt Elvire
Mt Elvire
DBAE Royalty
DBAE Royalty
Cullen CID
+79Mt Resource
Red Hill CID
+350Mt Resource
RHI Shareholding*
RHI Shareholding*
AQA: 19%
AQA: 19%
AMCI: 19.85%
AMCI: 19.85%
Stage 1 WPIOP
Stage 1 WPIOP
PFS Completed May 2008
PFS Completed May 2008
US$3.9 Billion Capex
US$3.9 Billion Capex
US$20/t Opex
US$20/t Opex
*Shareholdings at 30 June 2008
Kumina Creek (CID)
Inferred 69Mt @ 56% Fe
Robe Exit (CID)
Inferred 43Mt @ 55% Fe
Bonham (BID) 8km² target
Several untested
CID & BID Targets
HLX Shareholding*
HLX Shareholding*
AQA: 6%
AQA: 6%
AMCI: 19.6%
AMCI: 19.6%
Helix Resources Limited Annual Report 2008
7
GLENBURGH GOLD PROJECT – WESTERN AUSTRALIA
Helix Resources Limited 100%
EL 09/1325, 09/1079, 09/1281-1289, P09/424-427
Project Summary
(cid:190)
(cid:190)
(cid:190)
(cid:190)
1500km² tenement area located in the Southern Gascoyne region of WA, 250km
east of Carnarvon;
Inferred Resource of 1.1Mt @ 3.1g/t for 108,000oz Au – (May 2005);
Results from 2007/2008 drilling programs have been reviewed by Helix geologists
and are to be assessed by independent resource consultants for the updating of
the project resource estimate;
Internal scoping study commenced to determine potential mining and
development scenarios.
Project Background
The Glenburgh Gold Project is situated in the Southern Gascoyne Province of WA ~250km
east of Carnarvon. The project consists of a gold mineralised shear system hosted in
remnants of Archaean terrane in a Proterozoic mobile belt. Glenburgh was a grass roots
discovery by Helix from regional stream sampling in the 1990’s.
Exploration Update
Reverse Circulation (RC) drilling was completed at
the Glenburgh Gold Project in late May 2008. A total
of 59 holes for 5,324 metres of drilling were
completed on the Icon, Mustang, Hurricane, NE3,
NE4, NE5, NE6, Zone 102, Zone 126 and Zone 120
Prospects. This drilling provided first-pass, infill and
extensional drilling on several known prospects and
areas of significant soil geochemistry generated in
the past 12 months on the Victoria Bore Grid.
RC Drilling at Glenburgh 2008
The drilling program has successfully identified additional zones of mineralisation at
several prospects which are yet to be incorporated into the resource model. Drilling at
the eastern end of the Icon Prospect was particularly encouraging with wide zones of
mineralisation remaining open along strike to the east.
The 2007/2008 drilling data has been augmented into the project database and is
currently with resource consultants for an independent review to establish a new
resource estimation for the project.
An internal scoping study examining potential development and mining scenarios for the
Glenburgh Project will follow this process. The critical project milestone is to increase
the current inferred resource estimation of 1.1Mt @ 3.1g/t for 108,000oz Au to a
resource level that can support a stand alone operation.
Helix Resources Limited Annual Report 2008
8
Table C: Significant Glenburgh RC drilling intercepts 2008 drilling
Hole ID
Prospect
VRC341
VRC342
VRC342
VRC342
VRC342
VRC343
VRC346
VRC347
VRC347
VRC347
VRC348
VRC349
VRC349
Icon
Icon
Icon
Icon
Icon
Icon
Icon
East
10750
10750
North
10070
10095
10750
10850
10850
10130
10105
10135
10850
10950
10165
10075
VRC350
Icon
10950
10100
VRC350
VRC350
VRC351
VRC352
VRC352
Icon
Icon
10950
10950
10140
10180
VRC357
Mustang
VRC374
Hurricane
VRC378
Hurricane
VRC379
Hurricane
VRC381
Hurricane
VRC389
Zone 102
VRC389
VRC390
Zone 102
VRC391
Zone 102
VRC391
VRC393
Zone 126
VRC394
NE 4
14545
15050
15150
15150
15235
15850
9990
10180
10190
10220
10200
9990
15850
15850
10030
10070
16350
17050
10000
9890
From (m)
Intercept (Au)
1
0
27
50
92
33
4
48
60
5m @ 1.0g/t
2m @ 2.2g/t
14m @ 2.0g/t
3m @ 1.8g/t
6m @ 1.2g/t
4m @ 1.1g/t
4m @ 1.0g/t
3m @ 1.4g/t
25m @ 2.1g/t
117
3m @ 2.2g/t (EOH)
98
33
46
47
81
98
18m @ 2.2g/t
6m @ 1.1g/t
3m @ 3.8g/t
3m @ 1.4g/t
6m @ 1.1g/t
3m @ 2.5g/t
113
25m @ 3.1g/t
71
88
46
41
2
41
3m @ 5.2g/t
14m @ 1.1g/t
8m @ 2.3g/t
2m @ 2.7g/t
5m @ 1.0g/t
13m @ 2.0g/t
108
2m @ 3g/t
9
24
64
84
115
18
2
4m @ 2.7g/t
2m @ 3.2g/t
12m @ 3g/t
2m @ 2.2g/t
4m @ 20g/t
2m @ 3g/t
1m @ 5g/t
All holes drill to local grid south at 60 inclination. Significant Intercepts >4 gram x metres for 2008
Glenburgh RC Drilling received to date. (NB all intercepts have been calculated using a 0.5g/t lower
cut, minimum 1m interval and max 2m internal dilution)
Helix Resources Limited Annual Report 2008
9
Figure 2: Location plan of recent RC drill collars on Victoria Bore Grid
and Icon Section 10950E
Helix Resources Limited Annual Report 2008
10
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, ELA2006/389 and EL 3335
GOLD
Project Summary
(cid:190)
(cid:190)
(cid:190)
Resource inventory of 800,000oz Au and 1,600,000oz Ag;
Minotaur has spent $4.3M and are required to spend $5M to earn 51% by 31 March
2009;
Exploration targets remain untested.
Project Background
Helix discovered the project in the mid 1990’s while exploring for gold under cover in
the Gawler Craton of South Australia.
The Tunkillia discovery, which was announced in late 1996, was one of the first gold
discoveries in the Gawler Craton and the 20 square kilometre Tunkillia Prospect remains
the largest robust gold-in-calcrete anomaly in the region. Subsequent exploration (1998-
2002) was carried out in joint venture, initially with Acacia Resources Limited and later
with AngloGold Limited following its takeover of Acacia.
In June 2003, Helix finalised the acquisition of AngloGold’s 49% interest in the Lake
Everard Project, returning 100% ownership of the Project to Helix for the first time since
1998.
During
Helix
2003/2004
completed a drill out of the Area
223 prospect, estimating a JORC
resource of 720,000 ounces of
gold.
the
Tunkillia
By mid 2004, it became clear
that
Project
required a major injection of
funds to give the project the
critical mass required to enter
into a feasibility study. The Helix
Board decided at this time to
seek a JV partner and in March
2005 Minotaur Exploration Ltd
agreed to expend $5M to earn a
Figure 3: Lake Everard JV location Plan
51% interest.
Helix Resources Limited Annual Report 2008
11
Since 2005 Minotaur have spent approximately $4.3M carrying out additional drilling at
Area 223 and several brownfields exploration campaigns using geophysics, geochemistry
and drilling to test targets. In June 2007, Minotaur released a revised combined
measured, indicated and inferred estimate inventory of 800,000oz Au and 1,600,000oz
Ag within the Area 223 deposit.
Geology
The Gawler Craton is broadly divided into three
main geological units, Archaean crystalline
basement, highly deformed Palaeoproterozoic
metasediments and granites, and less deformed
Mesoproterozoic volcanics, clastic sediments and
granite. Almost all gold and copper mineralisation
found in the Gawler Craton is directly associated
with Mesoproterozoic magmatism.
The host rocks to the Tunkillia prospect are
medium- to coarse-grained granitoids of the Tunkillia Suite, that have been intensely
sheared and brecciated within the Yarlbrinda Shear Zone.
Tunkillia RC Sampling
In a regional context, the Tunkillia area shows evidence of extensive alteration. Large
zones of demagnetisation (alteration of primary magnetite to ilmenite) are observed in
aeromagnetic images, from which Helix defined a western and eastern demagnetised
zone within the northern Yarlbrinda Shear Zone. Area 223 is located within the western
demagnetised zone along which large volumes of fluid were focused, particularly along
the margins of the shear zone producing the gold deposit and alteration.
At the prospect scale, gold mineralisation at Tunkillia is associated with zones of intense
sericite alteration, and quartz and sulphide veining.
Resources
Oxide:
5.7Mt @ 1.3g/t for 230,000 oz Gold (0.5g/t cutoff)
Measured: 1.2Mt @ 1.8 g/t Au – 66,000oz
Indicated: 2.0Mt @ 1.3g/t Au – 86,000oz
Inferred: 2.5Mt @ 1.0g/t Au – 77,000oz
Primary:
8.6Mt @ 2.1g/t for 570,000 oz Gold (1.0g/t cutoff)
Indicated: 4.2Mt @ 2.0 g/t Au – 270,000oz
Inferred: 4.4Mt @ 2.1 g/t Au – 300,000oz
8.6Mt @ 5.7g/t for 1,600,000 oz Silver (estimated for blocks with >1g/t Au)
Indicated: 4.2Mt @ 5.7g/t Ag – 770,000oz
Inferred: 4.4Mt @ 5.7g/t Ag – 810,000oz
Helix Resources Limited Annual Report 2008
12
The current resource consists of a mineralisation inventory of 800,000oz gold and
1,600,000oz silver to a depth of 200m below surface. Full details of the methodology
were released by Minotaur in June 2007.
The resource estimation was made after additional drilling by Minotaur during 2006/2007
highlighted an extended area of gold mineralisation within the oxide zone and increased
the level of confidence in the coherence of the oxide zone capping to the Tunkillia
mineralisation.
Higher grade intersections are generally spatially associated with a highly weathered
mafic dyke which strikes approximately grid N-S through Area 223.
Helix Resources Limited Annual Report 2008
13
TORO URANIUM JV
Project Summary
(cid:190)
(cid:190)
JV Partner Toro Energy is earning 51% of the uranium rights of our Gawler Craton
tenements by spending $2M prior to 24 March 2009, with $231,000 spent to date.
Toro Energy have advised they remain in negotiations regarding environmental
approvals and heritage clearances prior to drill testing the extensive
palaeochannel targets
Project Background
Toro has defined a significant portion of the Kingoonya Palaeochannel System on the
Yellabinna JV (EL3335) area utilising airborne EM and plans to explore several
“previously unexplored radiometric anomalies” located within a 50 kilometre long target
zone along the palaeochannel course.
Historical drilling in the area by Dampier Mining Company for coal confirmed the
presence of Tertiary palaeochannel sequences. These sequences contain sands, which
may provide porous and transmissive zones for possible uranium bearing solutions, and
carbonaceous mudstone lithologies which could provide an important chemical trap
component to the roll front model being pursued.
The airborne EM survey conducted by Toro in 2006 resulted in the identification of five
priority palaeochannel
on
uranium
EL3335.
targets
Toro Energy Ltd is yet to
carry out ground based
activities as a result of
slow negotiations with
South Australian
the
Department
of
Environment over access
permits. This process
has delayed exploration
activities for over 18
months. The target area
is
the
eastern edge of South
Yellabinna
Australia’s
Regional Reserve.
located
on
Figure 4: Toro Uranium JV target positions on airborne EM image
Helix Resources Limited Annual Report 2008
14
PARACHILNA PROJECT - SOUTH AUSTRALIA
Helix Resources Limited 100%
EL3814
Project Summary
(cid:190)
(cid:190)
(cid:190)
Generative exploration model in historic high-grade copper mining province;
$100,000 PACE Funding to test exploration model;
7,500 line kilometre detailed aeromagnetics survey completed; IP survey
underway.
Historic
Project Background
The Parachilna Project was identified by
Helix for the series of large diapiric domes
present in Adelaidean Stratigraphy in the
and
area.
occurrences are hosted in these structures
including the Blinman Copper Mine, where
approximately 200,000 tonnes of copper
ore grading +5% Cu was mined to a depth
of 165m from surface in the late 1800’s
and early 1900’s.
copper mines
Looking south from historic Blinman mine
Exploration Update
Field work during the year has concentrated on four prospect areas (Blinman North,
China Wall, Breakneck Gorge and Mafic Alley). Mapping and sampling was carried out
during the 2007-2008 field season. This was followed by a 7,500 line kilometre detailed
aeromagnetic survey covering the central portion of the tenement including coverage
over the Blinman and Nuccaleena domal structures. An IP survey is presently being
carried out on several target zones under shallow cover. This ongoing work is being
assessed to define a series of lithological and structural targets for drill testing later in
2008.
The detailed mapping has identified a mineralised dolomitic package similar to the
Blinman Mine-type dolomite at several of the prospects as well as numerous other
altered sediments with iron enrichment, alteration and copper sulphides visible in rock
samples. The mapping suggests the units in the Blinman dome are more continuous and
better preserved than the broad regional mapping implies with only localised brecciation
(10-50m scale) rather than kilometre scale brecciation. The dome is affected by variable
colluvium and carbonate-rich deflated soils cover which may account for the historical
“large diapir” interpretation.
Helix’s exploration model considers the domes in this region to be dynamic fluid
conduits. The possibility of intrusives in or below the domes controlling metal rich
alteration fluids in the reactive host sediments is evidenced by the presence of
hydrothermal alteration, contact skarn style mineralogy, remobilised high-grade
hematite and exotic metal suites (incl. elevated As, Mo, Bi, Sb, Hg, V and Co).
Helix Resources Limited Annual Report 2008
15
This project has been selected to receive a grant of $100,000 toward drilling under the
2008 South Australian Government sponsored PACE initiative.
Figure 5: Prospect location plan in the Blinman Dome – Parachilna Project
Helix Resources Limited Annual Report 2008
16
BOOYEEMA NICKEL JOINT VENTURE – WESTERN AUSTRALIA
E47/1090 and ELA47/1089 (Anglo American earning 80%)
The Company recently announced a Joint Venture
Agreement with Anglo American Exploration
(Australia) Pty Ltd [“Anglo American”] covering
tenements E47/1090 and ELA47/1089, located
approximately 50 km south west of Karratha in the
West Pilbara region.
The terms of the JV are as follows:-
(cid:190)
to complete a Low
Anglo American
Temperature (LT) SQUID EM geophysics
survey within 9 months;
On completion of LT SQUID EM survey, Anglo American has an option to earn an
80% interest in each of the tenements by incurring expenditure of $5 million
(inclusive of cost of the LT SQUID EM survey) within 5 years;
The option would lapse if Anglo American does not expend $2 million within the
first 3 years.
Sampling in the West Pilbara
(cid:190)
(cid:190)
Project Background
The Booyeema Project is considered prospective for sulphide nickel accumulations in
mafic/ultramafic intrusives under Fortescue Formation cover.
A detailed aeromagnetic survey was completed over the granted tenement in the target
area by Helix, as part of the Company’s broader base metal exploration strategy for its
West Pilbara projects in early 2008. The survey has confirmed and defined several
discrete magnetic bodies associated with a regional NE structural corridor. Anglo
American will target these anomalies using its LT SQUID EM technology to identify buried
metal accumulations for drill testing.
This JV reflects Helix’s ongoing strategy of identifying and securing large tenement
holdings in frontier exploration regions. Attracting resource major JV partners such as
Anglo American provides Helix shareholders with access to cutting-edge technologies and
expertise whilst mitigating discovery risks.
Typical access tracks – West Pilbara
Helix Resources Limited Annual Report 2008
17
Figure 6: Booyeema Nickel JV location map
Helix Resources Limited Annual Report 2008
18
WEST PILBARA PROJECT – WESTERN AUSTRALIA
Helix Resources Limited 100%
E47/1075, 1169-1171(All minerals other than Fe - subject to Yalleen JV), 1144-1145
ELA’s 47/1146 &1175-76, MLA47/786-794
Background
Helix holds approximately 800 km² of greenfields
tenements targeting precious and base metals in a
corridor spanning from the Proterozoic Fortescue
formation into the Hamersley basin to the South.
The projects are prospective for VMS/VHMS style
copper-lead-zinc in the mixed volcanic/volcano-
sedimentary lithologies of the Fortescue Group and
manganese ± base metals in the basal sequences of
the Hamersley Group.
Rock chip sampling West Pilbara
Exploration Update
A detailed aeromagnetic survey completed in Q12008 has assisted in defining target
areas for the follow up surface geochemistry.
(cid:190)
(cid:190)
(cid:190)
Area 1 – covering E47/1144 & E47/1145 –VMS/VHMS prospective lithologies over
20km of strike with coincident base metal geochemical anomalism and along
strike from Fox Resources’ VTEM anomalies on their neighbouring tenements.
Area 2 – E47/1075 has a continuation of the Area 1 style targets as well as an
untested +4km long greater than three times background nickel in a surface
geochemistry anomaly.
Area 3 – E47/1169-1170 Covers a series of sulphur-rich sediments and possibly
manganese-rich sequences in the top of
the Fortescue Formation and the base of
the Hamersley Range sequence.
Field crews will continue to systematically sample
the target areas in a series of field campaigns
through to the end of 2008.
Fly Camp in the West Pilbara
Helix Resources Limited Annual Report 2008
19
Figure 7: West Pilbara Base Metal Project targets on aeromagnetic images
Helix Resources Limited Annual Report 2008
20
PROJECT LOCATION MAP
The information in this announcement that relates to exploration results in respect of the Yalleen JV is based on information
compiled by Mr Stuart H Tuckey who is a member of the Australian Institute of Mining and Metallurgy. Mr Tuckey is full-time
employee of Australian Premium Iron Mr Tuckey has sufficient experience which is relevant to the style of mineralisation and type
of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the
2004 Edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Tuckey
consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves on other Helix
projects is based on information compiled by Mr M Wilson who is a full time employee of Helix Resources Limited and 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 a Competent
Person 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 his information in the form and context in
which it appears.
Helix Resources Limited Annual Report 2008
21
CORPORATE GOVERNANCE
The directors of Helix Resources Limited believe that effective corporate governance improves company performance, enhances
corporate social responsibility and benefits all stakeholders. Governance practices are not a static set of principles and the company
assesses its governance practices on an ongoing basis. Changes and improvements are made in a substance over form manner, which
appropriately reflect the changing circumstances of the company as it grows and evolves. Accordingly, the Board has established a
number of practices and policies to ensure that these intentions are met and that all shareholders are fully informed about the affairs of
the Company.
The Company has a corporate governance section on the website at www.helix.net.au. The section includes details on the company’s
governance arrangements and copies of relevant policies and charters.
ASX Corporate Governance Council Best Practice Principles and Recommendations (2nd Edition)
For ease of comparison to the recommendations, the Corporate Governance statement addresses each of the 8 principles in turn.
Where the company has not followed a recommendation this is identified with the reasons for not following the recommendation. This
disclosure is in accordance with ASX listing rule 4.10.3.
The following table outlines which of the ASX recommendations the Company has not complied with. Reasons for non-compliance are
explained in this report.
ASX Recommendation
Description
2.1
2.2
2.3
2.4
4.1
4.2
8.1
A majority of the board should be independent directors
The chair should be an independent director
The roles of chair and chief executive officer should not be exercised by the same individual
The board should establish a separate nomination committee
The board should establish a separate audit committee
The audit committee should be structured so that it:
• consists only of non-executive directors
• consists of a majority of independent directors
• is chaired by an independent director, who is not chair of the board
• has at least 3 members
The board should establish a separate remuneration committee
PRINCIPLE 1 - LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT BY THE BOARD
The board operates in accordance with broad principles set out in its charter which is available from the corporate governance section
of the company’s website. The directors formally adopted the board charter in August 2006.
Broadly the key responsibilities of the board are:
1. Setting the strategic direction of the company with management and monitoring management implementation of that strategy;
2. Evaluating, approving and monitoring major capital expenditure, capital management and all major corporate transactions;
3. Approving the annual operating budget, annual shareholders report and annual financial accounts;
4. Appointing, monitoring, managing the performance of, and if necessary terminating the employment of the Chief Executive Officer;
5. Approving and monitoring the company’s risk management framework;
6. Ensuring compliance with the Corporations Act 2001, ASX listing rules and other relevant regulations.
All directors and key executives reporting to the CEO of the company have been given formal letters of appointment outlining key terms
and conditions of their appointment.
Performance evaluations for senior executives are carried out annually by either the Chief Executive Officer or the Technical Director.
Performance during the previous 12 months is assessed against relevant performance indicators, and role expectations and goals are
set for the following year. Performance evaluations have been completed for all executives during the reporting period in accordance
with approved processes.
Helix Resources Limited Annual Report 2008
22
PRINCIPLE 2 – STRUCTURE THE BOARD TO ADD VALUE
Board Members
Details of board members, their experience, expertise, qualifications, term in office and independence status are set-out in the
Directors’ Report. The structure of the board does not comply with ASX recommendation 2.1 in that a majority of the directors are not
independent. Currently the board consists of four directors of which Mr Gordon Dunbar and Mr John den Dryver are considered
independent within the ASX’s definition. The board charter is available from the company’s website.
The Company does not comply with ASX recommendations 2.2 and 2.3 in that the Chairman is not an independent director, and the
roles of Chairman and Chief Executive Officer are performed by the same person. The board believes the current structure is
appropriate at this stage of the company’s activities.
The board has formalised various policies on securities trading, disclosure and codes of conduct, which assist in providing a stronger
governance framework for the Company. These of course are in addition to the Company’s requirements under the Corporations Act
2001 and ASX Listing Rules.
Board structure and composition will be reviewed as and when the company’s strategic directions and activities change. The Company
will only recommend the appointment of additional Directors to your board where it believes the expertise and value added outweighs
the additional cost. During the year no new directors were appointed to the Helix board.
A copy of the Director Nomination and Induction Policy is available from the corporate governance section of the company’s website.
Nomination Committee
The company does not comply with ASX recommendation 2.4 in that there is no separate nomination committee. Given the board
comprises four directors it has been decided that there are no efficiencies to be gained from forming a separate nomination committee.
The current board members carry out the roles that would otherwise be undertaken by a nomination committee and each director
excludes himself from matters in which he has a personal interest.
Each Director completes an annual formal evaluation of the Board’s performance including the Chief Executive Officer and Technical
Director. The Chairman conducts an informal evaluation of the board members at least once per annum.
Further information on the performance assessment process for the board and senior executives can be found in the Directors’ Report.
Details of director’s attendance at board, audit committee and remuneration committee meetings are detailed in the Directors’ Report.
A copy of the Nomination Committee Charter is available from the corporate governance section of the company’s website.
Independent Advice
A director of the Company is entitled to seek independent professional advice (including but not limited to legal, accounting and
financial advice) at the Company’s expense on any matter connected with the discharge of his or her responsibilities, in accordance
with the procedures and subject to the conditions set out in the board’s charter
PRINCIPLE 3 – PROMOTE ETHICAL AND RESPONSIBLE DECISION MAKING
Code of Conduct
The board adopted a code of business conduct in August 2006. The code has formalised policies and practices that were in place prior
to formal adoption of the code by the company. A copy of the code is made available to all employees of the company.
This code expresses certain basic principles that the Company and employees should follow in all dealings related to the Company.
They should show the highest business integrity in their dealings with others, including preserving the confidentiality of other peoples’
information and should conduct the Company’s business in accordance with law and principles of good business practice.
A copy of the code of conduct is available from the corporate governance section of the company’s website.
Securities Trading Policy
A formal Securities Trading Policy has been in place since August 2006. Prior to this date there was an understanding among
executives of when it was appropriate to trade in the Company’s securities. The policy which has now been adopted has been
strengthened, as certain key executives (“Restricted Persons”) are prevented from trading in the company’s shares 2 weeks prior to the
announcement of quarterly, half-year and the full-year reports. This is a restriction over and above the requirement to not trade in the
Company’s securities when in possession of inside information.
A copy of the Securities Trading Policy is available from the corporate governance section of the company’s website.
Helix Resources Limited Annual Report 2008
23
PRINCIPLE 4 – SAFEGUARD INTEGRITY IN FINANCIAL REPORTING
The Chief Executive Officer and Chief Financial Officer have made the following certifications to the board;
• That the company’s financial reports are complete and present a true and fair view, in all material respects, of the financial condition
and operational results of the company and group and are in accordance with relevant accounting standards;
• That the reports were founded on a sound system of financial risk management and internal compliance and control.
Audit Committee
The company does not comply with ASX recommendations 4.1 and 4.2 in that there is no separate audit committee, and it is not
comprised only of non-executive Directors. Given the board comprises four directors it has been decided that there are no efficiencies
to be gained from forming a separate audit committee. The current board members carry out the roles that would otherwise be
undertaken by an audit committee.
The board adopted a formal audit charter in August 2006. Prior to this date the audit committee carried out many of the roles and
responsibilities outlined in the charter. The charter sets out the roles and responsibilities of the audit committee and contains
information on the procedures for the selection and rotation of the external auditor. A full copy of the Audit Committee Charter is
available from the corporate governance section of the Company’s website.
The board believes the audit committee structure is appropriate given the company’s size. The composition of the audit committee will
be assessed on an ongoing basis in light of the company’s overall board structure and strategic direction.
PRINCIPLE 5 – MAKE TIMELY AND BALANCED DISCLOSURE
Continuous Disclosure
The board adopted a formal disclosure policy outlining procedures for compliance with ASX continuous disclosure requirements in
August 2006. Informal procedures were in place prior to this time and these have been formulated and strengthened into the written
policy. The policy is based upon the Company’s desire to promote fair markets, honest management and full and fair disclosure. The
disclosure requirements must be complied with in accordance with their spirit, intention and purpose.
The purpose of the policy is to:
• summarise the Company’s disclosure obligations;
• explain what type of information needs to be disclosed;
• identify who is responsible for disclosure; and
• explain how individuals at the Company can contribute.
The Company Secretary is responsible for ensuring disclosure of information to the ASX.
A copy of the Disclosure Policy is available from the corporate governance section of the company’s website.
PRINCIPLE 6 – RESPECT THE RIGHTS OF SHAREHOLDERS
Shareholder Communication Strategy
The board adopted a formal shareholder communication guidelines policy in August 2006. The policy formalises many of the practices
that were in place already but has also resulted in some additional information being made available on the website.
All information disclosed to the ASX is posted on the company’s website as soon as it is disclosed to the ASX. When analysts are
briefed on aspects of the group’s operations, the material used in the presentation is released to the ASX and posted on the company’s
website. Procedures are in place to determine where price sensitive information has been inadvertently disclosed, and if so, this
information is released to the ASX.
The company’s website underwent a significant overhaul in 2006 and again in 2008 to make it more user friendly and informative for
shareholders and other visitors to the site. The website continues to be updated and refined as appropriate.
The external auditor attends the annual general meeting and is available to respond to questions about the conduct of the audit and
content of the independent audit report.
A full copy of the shareholder communication policy is available from the corporate governance section of the company’s website.
Helix Resources Limited Annual Report 2008
24
PRINCIPLE 7 – RECOGNISE AND MANAGE RISK
Risk assessment and management
The company does not have a separate Risk Management committee. Given the current size of the company and board, the directors
believe there are no efficiencies in forming a separate committee and the board as a whole performs this role.
The company does not have a single specific risk management policy, but rather, financial and operating risks are addressed through
individual approved policies and procedures covering financial, contract management, safety and environmental activities of the
company. In addition to financial audits, the company’s operations in Australia are subjected to annual Risk Management reviews in
accordance with Risk Management Standard AS/NZS 4360: Risk Management. The company engages an insurance brokering firm as
part of the company’s annual assessment of the coverage for insured assets and risks. The results of all the various reviews and
insurances are reported to the board at least annually.
The integrity of Helix’s financial reporting relies upon a sound system of risk management and control. Accordingly, the Chief Executive
Officer and Chief Financial Officer, to ensure management accountability, are required to provide a statement in writing to the board
that the financial reports of Helix are based upon a sound risk management policy.
The board believes that it has a thorough understanding of the Company’s key risks and is managing them appropriately. A copy of the
company’s risk management committee charter is available from the corporate governance section of the company’s website.
PRINCIPLE 8 – REMUNERATE FAIRLY AND RESPONSIBLY
Remuneration committee
The Company does not comply with ASX recommendation 8.1 in that it has not established a separate remuneration committee. Given
the current size of the company and board, the directors believe there are no efficiencies in forming a separate committee and the
board as a whole performs this role. The board of directors reviews and approves recommendations in terms of compensation and
incentive plan arrangements for directors and senior executives, having regard to market conditions and the performance of individuals
and the consolidated entity.
Remuneration Policies
The Company’s remuneration policies are detailed in the Remuneration report in the Directors’ Report.
Non-Executive Director Remuneration
Non-executive directors are remunerated by way of director’s fees. Apart from compulsory superannuation entitlements, non-executive
directors are not eligible to receive retirement benefits.
A copy of the Remuneration Policy is available from the corporate governance section of the company’s website.
RC Drilling at Glenburgh 2008
Helix Resources Limited Annual Report 2008
25
DIRECTORS’ REPORT
In respect of the financial year ended 30 June 2008, 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 BCom; FCA; SF Fin; GAICD
Executive Chairman; Managing Director and Chief Financial Officer – 14th July 2006 to present
Non-Executive Director – 25 October 2004 to 14th July 2006
Mr Wheeler is a Fellow of the Institute of Chartered Accountants in Australia and the Financial Services Institute of Australasia, and has
operated in many of the major accounting practices for the past 25 years in Australia and overseas. Greg was a Partner at the Chartered
Accounting practices of Grant Thornton [1990 to 1999] and Deloitte Touche Tohmatsu [1999 to 2002], before establishing his own consulting
firm in 2002. His skills include:- company and business valuations, advice to directors/shareholders; shareholder wealth strategies, capital
raisings and broker presentations, acquisitions and divestitures, corporate governance; commercial negotiations and risk assessment and
mitigation.
Michael Wilson B Ec; B Sc (Hons); MAusIMM
Executive Technical Director - 1st June 2007 to present
Mr Wilson has been with the company for twelve years and has played major roles at Tunkillia on the Gawler Craton, South Australia and in the
exploration for gold, platinum group metals and base metals in the Proterozoic Terranes of New South Wales and South Australia, and the
Proterozoic and Archaean Terranes in Western Australia. Michael’s experience includes project management; mineral exploration using
geology, geochemistry, geophysics and drilling; ore resource drilling, ore resource estimation and evaluation programs; and monitoring joint
venture projects.
Michael leads our team of experienced geologists and technical staff and is also completing his Masters of Business Administration and Masters
of Mineral Economics part-time at Curtin University.
John den Dryver BE (Mining) MSc FAusIMM (CP)
Non-Executive Director - Appointed 25 October 2004
Mr 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 BSc (Hons), MSc, FAusIMM (CP), FAIG
Non-Executive Director - Appointed 18 July 2006
Mr Dunbar 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.
Helix Resources Limited Annual Report 2008
26
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 J Wheeler
Company
Nustar Mining Corporation Limited
Adelaide Resources Limited
Platina Resources Ltd
Period of directorship
23 December 2003 – 31 May 2007
18 April 2005 – current
28 March 2006 – 31 January 2007
JOINT COMPANY SECRETARIES
Greg J Wheeler
Joneen McNamara
Mr Wheeler is a Chartered Accountant with over 25 years experience in accounting, company secretarial and
corporate management.
Mrs McNamara is an Accountant and has completed Chartered Secretaries Australia’s Graduate Diploma in
Applied Corporate Governance. She is a member of the Institute of Chartered Secretaries and Administrators.
PRINCIPAL ACTIVITIES
The principal activity of the Group constituted by Helix Resources Limited and the entities it controlled during the year consisted of gold, iron ore
and base metal mineral exploration. There has been no significant change in the nature of these activities during the year.
FINANCIAL RESULTS
The net consolidated loss of the Group for the financial period, after provision for income tax was $628,512 (2007: $187,904).
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:-
Iron Ore
•
JV partner API (Aquila/AMCI) completed their $1.5m expenditure commitment at the Yalleen Iron Ore Joint Venture in November 2007 to
earn a 70% interest in iron ore rights. Helix contributing at 30% to expenditure programs.
Channel iron (CID) and bedded iron (BID) targets identified from the 2006 Hoist EM survey and field mapping confirmed by subsequent
drilling which intersected channel iron (CID), at depth and close to surface.
Yalleen Iron Joint Venture partners complete 10,000m drilling in a $3.2m exploration program for the 2007-2008 field season.
Runge Ltd commissioned by Helix as Expert who determined an Inferred Resource of 112 Mt @ 55.6% Fe for Kumina Creek and Robe
Exit which was released to the ASX 3rd June 2008. This initial resource estimate provides confidence regarding the overall potential of the
Yalleen Project once the other identified deposits have been drilled, assessed and included.
The Bonham target preliminary assessment from API is 8km2 of goethitic type ore grading up to 52% Fe. Helix has assessed this
represents a significant Exploration target and drilling is scheduled for 2008/2009.
•
•
•
•
Gold
• Glenburgh Project - Two drilling programs occurred during the year on targets defined from gold in soil anomalies at Firebird (up to 2.5g/t
Au), Barracuda East (up to 3.1g/t Au), Barracuda South (up to 0.6g/t Au), Challenger (up to 0.8g/t Au) and North East 3 (up to 0.6 g/t Au).
The Company expects the drilling will upgrade the existing Resource of 108,000 oz and has commissioned an external consultant to
calculate a new Resource.
•
Tunkillia Project - JV partner and manager Minotaur Exploration calculated a new resource for Area 223 – comprising a total of 800,000oz
Au and 1,600,000oz Ag to a depth of 200m from surface. Minotaur have expended ±$4.3 million and are required to expend $5 million
prior to 31 March 2009. Minotaur have indicated economic studies are underway.
Uranium
•
Uranium JV partner - Toro Energy have advised they still await environmental approvals before testing five (5) priority palaeo-channel
uranium targets on Helix’s Lake Everard tenements identified in 2007. Toro are required to expend $2 million prior to 24 March 2009 to
earn a 51% interest in the uranium rights and to date have expended $230,634.
Base Metals
•
A JV with AngloAmerican was concluded with respect to prospective nickel targets on two of our West Pilbara tenements. The terms are
AngloAmerican can earn an 80% interest by funding $5 million of expenditure within 5 years.
Generative
•
Field examination of the South Australian Adelaidian Projects has identified a series of base metal targets including copper mineralisation
on the Parachilna Project, gold/tungsten anomalism at the Fleurieu Project and gold, base metal and uranium targets on our Olary
tenements.
PACE funding approval for $100,000 towards drilling costs for the Blinman prospect has been received and a drilling program is scheduled
for 2H08.
•
Helix Resources Limited Annual Report 2008
27
Corporate
•
The Company placed 17 million shares at $0.485 in December 2007 to AMCI / First Reserve to raise $8.245 million before costs.
The Group reported a loss of $628,512 during the year after writing off $0.292m of carried forward exploration costs and realising $0.184m from
investments.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
In the opinion of the Directors, other than 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.
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 comprised of all board members. The Executive Officers of the Company are employed
under Service Agreements which are all identical in their contents and only differ in remuneration levels. They have durations of thirty six
months from 19th June 2008 and renew automatically unless terminated by either the Company by giving a minimum of twelve months notice to
the individual; or by the individual by giving six months notice to the Company. Whilst the level of remuneration is not dependent on the
satisfaction of any performance condition, the performance of Executives is reviewed on an annual basis.
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:
a) Primary benefits – salary / fees and performance based bonuses;
b) Post employment benefits – prescribed retirement benefit; and
c) 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:
Post Employment
Equity
Salary &
Fees
$
Primary
Perfor-
mance
Based
Payment
$
2008
Key
Management
Personnel
G J Wheeler
237,200
150,000
M H Wilson
171,254
100,000
48,333
48,333
-
-
J den Dryver
G Dunbar
Total Key
Management
Personnel
Non
Monetary
Super-
annuation
Pre-
scribed
Benefits
$
$
$
Other
Retire-
ment
Benefits
$
-
-
-
-
36,000
15,413
-
-
-
-
-
-
-
-
-
-
505,120
250,000
51,413
Helix Resources Limited Annual Report 2008
Options
% of
Remu-
neration
Other
Benefits
Total
$
-
-
-
-
%
-
-
-
-
$
-
-
-
-
$
423,200
286,667
48,333
48,333
806,533
28
KEY MANAGEMENT PERSONNELS’ SHARE OPTIONS
Pursuant to approval at Shareholders’ meetings, executives and employees are entitled to subscribe for ordinary shares on the terms agreed to
by the Shareholders. At the date of this report current directors and executives are entitled to purchase an aggregate of 4,335,000 ordinary
shares of Helix Resources Limited according to the following terms:
Key Management
Personnel
Number of
Executive
Options Held
Issuing Entity
Exercise Price
Expiry Date
Number of ordinary
shares under option
G J Wheeler
2,000,000 Helix Resources Limited
M H Wilson
M H Wilson
M H Wilson
M H Wilson
70,000 Helix Resources Limited
70,000 Helix Resources Limited
70,000 Helix Resources Limited
1,325,000 Helix Resources Limited
J den Dryver
400,000 Helix Resources Limited
G Dunbar
Total
400,000 Helix Resources Limited
4,335,000
$0.26
$0.42
$0.46
$0.50
$0.26
$0.26
$0.26
30.11.2008
31.03.2009
31.03.2009
31.03.2009
30.11.2008
30.11.2008
30.11.2008
2,000,000
70,000
70,000
70,000
1,325,000
400,000
400,000
4,335,000
DIRECTORS’ SHARE AND OPTION HOLDINGS
Director
G J Wheeler
M H Wilson
J den Dryver
G Dunbar
*Fully Paid Ordinary Shares
*Listed Options^
*Staff Options
6,478,839
93,133
-
300,000
494,838
3,517
-
25,000
2,000,000
1,535,000
400,000
400,000
* Directors’ interests in ordinary shares and options of the parent entity are shown at the date of this Directors’ Report.
^ The listed options are exercisable at $0.30 prior to 30 June 2009.
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.
Helix Resources Limited Annual Report 2008
29
MEETINGS OF DIRECTORS
The number of meetings held during the year by Company Directors (including meetings of committees of Directors) and the number of those
meetings attended by each Director was:
Board of Directors’ Meetings
Remuneration Committee
Meetings
Audit Committee
Meetings
Held
Attended
Held
Attended
Held
Attended
6
6
6
6
6
6
5
6
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
G J Wheeler
M H Wilson
J den Dryver
G Dunbar
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 31 of the financial report.
Dated at Perth this 22nd. day of August 2008.
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 2008
30
AUDITOR’S INDEPENDENCE DECLARATION
Helix Resources Limited Annual Report 2008
31
INDEPENDENT AUDIT REPORT
Helix Resources Limited Annual Report 2008
32
Helix Resources Limited Annual Report 2008
33
.
The Directors declare that:
DIRECTORS’ DECLARATION
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 and
Regulations 2001, including compliance with accounting standards and giving a true and fair view of the financial position and
performance of the Company and of the Group for the financial year ended 30 June 2008;
c)
The directors have been given the declarations required by s.295A of the Corporations Act 2001.
Signed in accordance with a resolution of the Directors made pursuant to s.295(5) of the Corporations Act 2001.
On behalf of the Directors
Greg J Wheeler
Executive Chairman
Signed at Perth this 22nd day of August 2008.
Helix Resources Limited Annual Report 2008
34
BALANCE SHEET
AS AT 30 JUNE 2008
CONSOLIDATED
COMPANY
Note
2008
$
2007
$
2008
$
2007
$
2
3
4
4
6
7
5
8
9
9
10
11
12
7,479,985
2,822,200
7,479,985
2,822,200
372,139
130,800
261,946
375,000
372,139
130,800
261,946
375,000
7,982,924
3,459,146
7,982,924
3,459,146
-
198,616
2,000
170,937
-
198,616
2,000
170,937
12,158,401
9,201,690
12,158,401
9,201,690
103,406
98,000
103,406
98,000
12,460,423
9,472,627
12,460,423
9,472,627
20,443,347
12,931,773
20,443,347
12,931,773
185,952
21,264
207,216
54,270
54,270
75,862
11,695
87,557
31,585
31,585
185,952
21,264
207,216
54,270
54,270
261,486
119,142
261,486
75,862
11,695
87,557
31,585
31,585
119,142
20,181,861
12,812,631
20,181,861
12,812,631
55,824,908
47,844,351
55,824,908
47,844,351
287,187
284,463
287,187
284,463
(35,930,234)
(35,316,183)
(35,930,234)
(35,316,183)
20,181,861
12,812,631
20,181,861
12,812,631
Notes to the financial statements are included on pages 39 to 59
Helix Resources Limited Annual Report 2008
35
Current Assets
Cash and cash equivalents
Trade and Other Receivables
Financial Assets
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
INCOME STATEMENT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008
CONSOLIDATED
COMPANY
2008
$
2007
$
2008
$
2007
$
723,451
(646,008)
(31,372)
(27,280)
(96,668)
(42,631)
(291,738)
(19,820)
117,267
(153,560)
(20,204)
(4,839)
(135,110)
(628,512)
-
(628,512)
-
(628,512)
1,184,299
(733,052)
(37,354)
(8,669)
(110,892)
(49,214)
(245,664)
(26,326)
138,219
(138,375)
(46,165)
(9,434)
(105,277)
(187,904)
-
(187,904)
-
(187,904)
723,451
(646,008)
(31,372)
(27,280)
(96,668)
(42,631)
(291,738)
(19,820)
117,267
(153,560)
(20,204)
(4,839)
(135,110)
(628,512)
-
(628,512)
-
(628,512)
(0.5)
(0.5)
1,184,299
(733,052)
(37,354)
(8,669)
(110,892)
(49,214)
(245,664)
(26,326)
138,219
(138,375)
(46,165)
(9,434)
(105,277)
(187,904)
-
(187,904)
-
(187,904)
(0.2)
(0.2)
Revenue
Employment Costs
Audit and Accountancy
Corporate Marketing
Directors’ Fees
Depreciation
Impairment of Exploration and Evaluation
Assets
I T Costs
Overhead Allocation to Exploration
Premises Costs
Professional Services
Travel expenses
Other General and Admin expenses
Loss before income tax
Income tax expense
Loss from continuing operations
Profit /(Loss) from discontinued operations
Loss for the year
Earnings / (Loss) per share
Basic (cents per share)
Diluted (cents per share)
Note
13
14
19
21
21
Notes to the financial statements are included on pages 39 to 59
Helix Resources Limited Annual Report 2008
36
CASH FLOW STATEMENT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008
CONSOLIDATED
COMPANY
Note
2008
$
2007
$
2008
$
2007
$
Cash Flow From Operating Activities
Payments to suppliers and employees
Interest received
Other receipts
(898,404)
(675,370)
(898,404)
327,948
102,051
104,588
147,583
327,948
102,051
Net cash used in operating activities
2(b)
(468,405)
(423,199)
(468,405)
Cash Flow From Investing Activities
Payments for capitalised exploration &
evaluation expenditure
Payment for property, plant & equipment
Payment for investments
Proceeds from sale of investments
Payments for security deposits
Net cash used in investing activities
Cash Flow From Financing Activities
Proceeds from issue of shares/options
Share issue costs paid
Net cash provided by financing activities
Net increase in cash held
Cash and cash equivalents at beginning
of financial year
Cash and cash equivalents at End
of Financial Year
(3,248,449)
(1,232,135)
(3,248,449)
(80,542)
(39,412)
(80,542)
(900)
481,130
(5,406)
-
511,394
306,137
(900)
481,130
(5,406)
(2,854,167)
(454,016)
(2,854,167)
8,300,463
2,548,387
8,300,463
(319,906)
-
(319,906)
7,980,557
2,548,387
7,980,557
4,657,985
1,671,172
4,657,985
2,822,000
1,151,028
2,822,000
2(a)
7,479,985
2,822,200
7,479,985
(675,370)
104,588
147,583
(423,199)
(1,232,135)
(39,412)
-
511,394
306,137
(454,016)
2,548,387
-
2,548,387
1,671,172
1,151,028
2,822,200
Notes to the financial statements are included on pages 39 to 59
Helix Resources Limited Annual Report 2008
37
STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008
CONSOLIDATED
COMPANY
2008
$
12,812,631
7,925,093
17,187
55,462
(628,512)
-
20,181,861
2007
$
10,216,959
2,705,378
-
78,198
(187,904)
-
12,812,631
2008
$
12,812,631
7,925,093
17,187
55,462
(628,512)
-
20,181,861
2007
$
10,217,882
2,705,378
-
78,198
(187,904)
(923)
12,812,631
Total equity at the beginning of the financial
year
Shares issued during the financial year
Issue of Employee Incentive Options
Exercise or Expiration of options during the
financial year
Loss attributable to members of the parent
entity
Adjustment to Opening Equity
Total equity at the end of the financial year
Notes to the financial statements are included on pages 39 to 59
Helix Resources Limited Annual Report 2008
38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008
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,
Australian Accounting Standards and Australian Accounting Interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board 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 Consolidated Entity (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.
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) 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.
b) 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.
c) 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.
Helix Resources Limited Annual Report 2008
39
d) 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
Straight line 10% - 33%
Diminishing Value 20% - 40%
Motor Vehicles
Diminishing Value 22.5%
e) Exploration and evaluation
Exploration and evaluation costs related to areas of interest are carried forward to the extent that:
(i) 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
(ii) such costs are expected to be recouped through successful development and exploitation of the area of interest, or alternatively by
its sale; or
(iii) 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.
f) 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.
g) 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.
h) Non-derivative financial instruments
Financial instruments are initially measured at cost on trade date, which includes transaction costs. Subsequent to initial recognition,
these instruments are measured as set out below.
(i) 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.
(ii) 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.
Helix Resources Limited Annual Report 2008
40
(iii) 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.
(iv) 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.
i) Derivatives
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.
j) 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.
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.
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.
Helix Resources Limited Annual Report 2008
41
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.
k)
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.
l)
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.
m) 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.
n)
Receivables
Other receivables are recorded at amounts due less any specific provision for doubtful debts.
o) 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.
p) 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.
Helix Resources Limited Annual Report 2008
42
q)
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).
r)
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.
s) 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.
t) New standards and interpretations which may impact the Company not yet adopted
The following standards, amendments to standards and interpretations have been identified as those which may impact the entity in the
period of initial application. The application date of the new standards is 1 January 2009. The application date for the Company will be 1
July 2009.
AASB
Amendment
AASB 2007–8
Amendments to
Australian
Accounting
Standards
AASB 101
Standards Affected
Outline of Amendment
AASB 101 Presentation of Financial
Statements
The revised AASB 101: Presentation of Financial
Statements issued in September 2007 requires the
presentation of a statement of comprehensive income.
AASB 101 Presentation of Financial
Statements
As above
Helix Resources Limited Annual Report 2008
43
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 reconciled to the related items in the balance sheet as follows:
Cash at Bank
Cash on deposit
Total Cash
CONSOLIDATED
COMPANY
2008
$
2007
$
2008
$
2007
$
21,426
20,355
21,426
20,355
7,458,559
2,801,845
7,458,559
2,801,845
7,479,985
2,822,200
7,479,985
2,822,200
b) Reconciliation of loss after income tax to cash flows used in operations
CONSOLIDATED
COMPANY
2008
$
2007
$
2008
$
2007
$
(628,512)
(187,904)
(628,512)
(187,904)
42,631
291,738
17,187
(233,831)
10,231
49,214
245,664
234,266
(884,579)
3,777
42,631
291,738
17,187
(233,831)
10,231
49,214
245,664
234,266
(884,579)
3,777
(110,193)
231,588
(110,193)
231,588
110,090
32,254
(468,405)
(110,767)
(4,458)
(423,199)
110,090
32,254
(468,405)
(110,767)
(4,458)
(423,199)
Loss after income tax
Non-cash flows in Loss
Depreciation
Impairment of Exploration and evaluation
Issuance /(Cancellation) of employee options
(Gain)/loss on sale of investments
Loss on disposal 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 Liabilities
Increase/(decrease) in trade and other payables
Increase/(decrease) in Provisions
Net Cash used in Operations
c) Non-cash Transactions
Nil.
3. TRADE AND OTHER RECEIVABLES
CONSOLIDATED
COMPANY
2008
$
2007
$
2008
$
Prepayments - Insurances
Prepayments – Tenement application and rents
Other
Total Current Receivables
37,441
103,969
230,729
372,139
36,589
166,112
59,245
261,946
37,441
103,969
230,729
372,139
Helix Resources Limited Annual Report 2008
2007
$
36,589
166,112
59,245
261,946
44
4. FINANCIAL ASSETS
Current:
Held for trading financial assets:
Shares in listed corporations – at fair value
through profit or loss
Total Current Financial Assets
Non-Current:
Shares in subsidiaries – at cost (4a)
Shares in listed corporations – at cost
Total Non-Current Financial Assets
4(a) Shares in subsidiaries
Name
CONSOLIDATED
COMPANY
2008
$
2007
$
2008
$
2007
$
130,800
130,800
-
-
-
375,000
375,000
-
2,000
2,000
130,800
130,800
-
-
-
375,000
375,000
-
2,000
2,000
Country of Incorporation
Percentage Held
Percentage Held
Hillview Mining NL
Helix Mining Investment P/L
Australia
Australia
2008
100%
100%
2007
100%
100%
5. OTHER ASSETS
Non-Current
Security Deposits
Total Other Assets – Non-Current
CONSOLIDATED
COMPANY
2008
$
2007
$
2008
$
2007
$
103,406
103,406
98,000
98,000
103,406
103,406
98,000
98,000
Helix Resources Limited Annual Report 2008
45
6. PROPERTY, PLANT AND EQUIPMENT
2008
Gross Carrying Amount
Balance at 30 June 2007
Additions
Disposals
Balance at 30 June 2008
Accumulated Depreciation
Balance at 30 June 2007
Disposals
Depreciation
Balance at 30 June 2008
Net Book Value
30 June 2007
30 June 2008
2007
Gross Carrying Amount
Balance at 30 June 2006
Additions
Disposals
Balance at 30 June 2007
Accumulated Depreciation
Balance at 30 June 2006
Disposals
Depreciation
Balance at 30 June 2007
Net Book Value
30 June 2006
30 June 2007
CONSOLIDATED AND COMPANY
Plant & Equipment
$
Motor Vehicles
$
450,296
21,958
(154,616)
317,638
343,891
(145,326)
25,917
224,482
106,405
93,156
120,336
58,584
(7,400)
171,520
55,804
(6,458)
16,714
66,060
64,532
105,460
CONSOLIDATED AND COMPANY
Plant & Equipment
$
Motor Vehicles
$
432,744
29,658
(12,106)
450,296
319,854
(8,330)
32,367
343,891
112,890
106,405
110,583
9,753
-
120,336
38,957
-
16,847
55,804
71,626
64,532
Total
$
570,632
80,542
(162,016)
489,158
399,695
(151,784)
42,631
290,542
170,937
198,616
Total
$
543,327
39,411
(12,106)
570,632
358,811
(8,330)
49,214
399,695
184,516
170,937
Helix Resources Limited Annual Report 2008
46
7. EXPLORATION AND EVALUATION EXPENDITURE (NON-CURRENT)
Balance at beginning of the financial year
Expenditure incurred during the year
Impairment losses
Balance at the end of the financial year
CONSOLIDATED
COMPANY
2008
$
9,201,690
3,248,449
(291,738)
12,158,401
2007
$
8,215,219
1,232,135
(245,664)
9,201,690
2008
$
9,201,690
3,248,449
(291,738)
12,158,401
2007
$
8,215,219
1,232,135
(245,664)
9,201,690
The Directors' assessment of carrying amount was after consideration of prevailing market conditions; previous expenditure carried out on the
tenements; and the potential for mineralisation based on both the entity's and independent geological reports. The ultimate value of these
assets is dependent upon recoupment by commercial development or the sale of the whole, or part, of the 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)
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
131,299,798 Fully Paid Ordinary Shares (2007:
114,101,589)
14,028,013 Listed Options (2007: nil)
Balance at end of financial year
CONSOLIDATED
COMPANY
2008
$
2007
$
2008
$
2007
$
185,952
75,862
185,952
75,862
21,264
21,264
54,270
54,270
11,695
11,695
31,585
31,585
21,264
21,264
54,270
54,270
11,695
11,695
31,585
31,585
55,824,908
-
55,824,908
47,844,351
-
47,844,351
55,824,908
-
55,824,908
47,844,351
-
47,844,351
2008
2007
No.
$
No.
$
Fully Paid Ordinary Shares
Balance at beginning of financial year
Private Placement – 5 Dec 07 @ $0.485
Share Issue Costs
Exercise of Options to Fully Paid Shares @ $0.30
Balance at end of financial year
114,101,589
17,000,000
-
198,209
47,844,351
8,245,000
(319,906)
55,463
131,299,798
55,824,908
95,866,927
-
-
18,234,662
114,101,589
Helix Resources Limited Annual Report 2008
45,138,972
-
-
2,705,379
47,844,351
47
Listed Options
Balance at beginning of financial year
Options expired during financial year
Options issued during financial year *
Exercise of Options to Fully Paid Shares
Balance at end of financial year
Fully paid ordinary shares have no par value, carry one vote per share and carry the right to dividends. Listed options carry no votes until
converted to fully paid ordinary shares.
(18,234,662)
19,139,475
14,126,222
14,028,013
(904,813)
(98,209)
-
-
-
-
-
-
-
-
-
(156,992)
-
-
-
156,992
* Bonus issue of one free option for every eight shares held, exercisable at $0.30 prior to 30 June 2009.
Capital Management
Management controls the capital of the group in order to maximise the return to shareholders and ensure that the group can fund its operations and
continue as a going concern.
Management effectively manages the group’s capital by assessing the group’s financial risks and adjusting its capital structure in response to
changes in these risks and in the market. These responses include the management of expenditure and debt levels, distributions to shareholders
and share and option issues.
There have been no changes in the strategy adopted by management to control the capital of the group since the prior year.
Employee Options
275,000 employee options were issued in November 2007 following approval at the 2007 AGM. The options were valued under Black and
Scholes at 6.25 cents each ($17,187) and were in substitute of a cash bonus.
11. OTHER RESERVES
CONSOLIDATED
COMPANY
2008
$
2007
$
2008
$
2007
$
284,463
17,187
(5,000)
(9,463)
287,187
50,197
275,000
-
(40,734)
284,463
284,463
17,187
(5,000)
(9,463)
287,187
50,197
275,000
-
(40,734)
284,463
Options Reserve
Balance at beginning of financial year
Issue of Employee Incentive Options
Exercise of Employees Incentive Options
Cancellation of Terminated Employee Incentive Options
Balance at end of financial year
12. ACCUMULATED LOSSES
Balance at beginning of financial year
Net Loss attributable to members of the parent entity
(35,316,185)
(628,512)
(35,129,202)
(187,904)
(35,316,185)
(628,512)
(35,128,279)
(187,904)
Exercise of Employee Incentive Options
Cancellation of Employee Incentive Options
Adjustment to opening balance
Balance at end of financial year
5,000
9,463
-
(35,930,234)
-
5,000
-
-
923
(35,316,183)
9,463
-
(35,930,234)
-
-
(35,316,183)
Helix Resources Limited Annual Report 2008
48
REVENUE
13.
Loss before Income Tax includes the following items of revenue and expense:
Operating Activities
Interest Revenue
Tenement Rental Reimbursements
Other
Total Operating Revenue
Non-Operating Activities
Profit from sale of shares in listed companies
Revaluation of shares in listed companies
Loss on disposal of fixed assets
Cancellation of Employee Incentive Options
Total Non – Operating Revenue
Sale of Mineral Areas
Profit from Sale of Lake Throssell and Mt Venn East
projects to Crusader Holdings NL
Total Revenue from Sale of Mineral Areas
Total Revenues
14.
LOSS FOR THE YEAR
Expenses
Depreciation of non-current assets: Property, plant and
equipment
Exploration and evaluation expenditure written off
Operating lease rental expenses: Minimum lease
payments
CONSOLIDATED
COMPANY
2008
$
2007
$
2008
$
2007
$
457,490
26,331
13,577
497,398
183,384
52,900
(10,231)
-
226,053
-
-
104,588
132,270
15,313
252,171
511,394
225,000
-
40,734
777,128
155,000
155,000
457,490
26,331
13,577
497,398
183,384
52,900
(10,231)
-
226,053
-
-
723,451
1,184,299
723,451
104,588
132,270
15,313
252,171
511,394
225,000
-
40,734
777,128
155,000
155,000
1,184,299
42,631
291,738
137,587
49,214
245,664
122,276
42,631
291,738
137,587
49,214
245,664
122,276
Loss for the year
(628,512)
(187,904)
(628,512)
(187,904)
15.
a)
COMMITMENTS
Operating Lease Commitments
Not later than 1 year
Later than 1 year but not later than 2 years
40,600
-
40,600
95,000
40,000
135,000
40,600
-
40,600
95,000
40,000
135,000
As at balance date there was a balance of 5 months remaining on the office lease and Helix will vacate the premises.
Helix Resources Limited Annual Report 2008
49
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 $206,000 (2007:$112,000) and exploration expenditure of $3,600,000
(2007: $2,140,000). JV parties earning their interest in various tenements may effectively meet a portion of these commitment costs.
16. KEY MANAGEMENT PERSONNELS’ REMUNERATION
This note should be read in conjunction with the disclosures contained in the Remuneration Report section of the Directors’ Report.
The key management personnel of Helix Resources Limited during the year were:
• G J Wheeler
J den Dryver
•
• G Dunbar
• M H Wilson
– Executive Chairman, CEO and CFO
– Non-executive Director
– Non-executive Director
– Executive Technical Director
The Company’s Executive Officers’ remuneration policy is set to ensure that remuneration packages properly reflect the duties and
responsibilities of the senior executives and are sufficient to attract, retain and motivate personnel of the requisite quality. The policy is
administered by the Remuneration Committee, which is composed of all board members. Remuneration packages are reviewed and determined
with due regard to current market rates and are benchmarked against comparable industry salaries. The Executive Officers of the Company are
employed under Service Agreements which are all identical in their contents and only differ in remuneration levels. They have durations of thirty
six months from 19th June 2008 and renew automatically unless terminated by either the Company by giving a minimum of twelve months notice
to the individual; or by the individual by giving six months notice to the Company.
Non-executive Directors are remunerated by fees determined by the Board within the aggregate Directors’ fee pool limit of $150,000 approved
by shareholders in April 1996. The pool limit is not at present fully utilised. In setting the fees, account is taken of the responsibilities inherent in
the stewardship of the Company and the demands made of Directors in the discharge of their responsibilities. Advice is taken from independent
consultancy sources to ensure remuneration accords with market practice.
Salary &
Fees
2007
Primary
Perfor-
mance
Based
Payment
Non
Monetary
Supera-
nnuation
Post Employment
Pre-
scribed
Benefits
Other
Retire-
ment
Benefits
Equity
Options
Other
Benefits
Total
Key
Management
Personnel
G J Wheeler
M H Wilson
J den Dryver
G Dunbar
R W Mosig
R E Vittino
Total
$
$
$
$
$
$
$
$
$
82,900
117,355
40,000
40,000
1,916
141,577
423,748
-
7,246
-
-
-
-
7,246
-
-
-
-
-
-
-
-
10,562
-
-
-
-
10,562
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100,000
66,250
20,000
20,000
-
-
206,250
-
-
-
-
-
-
-
182,900
201,413
60,000
60,000
1,916
141,577
647,806
Helix Resources Limited Annual Report 2008
50
Salary &
Fees
2008
Primary
Perfor-
mance
Based
Payment
Non
Monetary
Supera-
nnuation
Post Employment
Pre-
scribed
Benefits
Other
Retire-
ment
Benefits
Equity
Options
Other
Benefits
Total
Key
Management
Personnel
G J Wheeler
M H Wilson
J den Dryver
G Dunbar
Total
$
$
$
$
$
$
$
$
$
237,200
150,000
171,254
100,000
48,333
48,333
-
-
505,120
250,000
-
-
-
-
-
36,000
15,413
-
-
51,413
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
423,200
286,667
48,333
48,333
806,533
2008
2007
17. EXECUTIVE SHARE OPTION PLAN
As at 30 June 2008 the Company had issued 4,335,000 share options (30 June 2007 6,250,000). Share options carry no rights to dividends and
no voting rights. The difference between the total market value of options issued during the financial year, at the date of issue, and the total
amount received from executives and employees is not recognised in the financial statements except for the purposes of determining key
management personnels’ 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.
(i) Balance at beginning of financial year
Further details are disclosed below:
Executive Share Option Plan
exercise price
No. Weighted average
exercise price
No. Weighted average
$0.46
3,450,000
$0.46
6,625,000
Balance at beginning of financial year (i)
-
(950,000)
-
(2,290,000)
Cancelled during the financial year (ii)
$0.26
4,125,000
$0.26
-
Granted during the financial year (iii)
-
-
-
-
Exercised during the financial year (iv)
$0.36
6,625,000
$0.46
4,335,000
Balance at end of financial year (v)
Options - Series No. Vested Unvested Grant Date Expiry Date Exercise
grant date
$ Fair value at
Issued 26 May 1999 283,332 283,332 - 26/5/99 29/3/09 $0.42 Not valued
$0.46 Not valued
Issued 26 May 1999 283,334 283,334
$0.50 Not valued
Issued 26 May 1999 283,334 283,334
Issued 11 Nov 2003 550,001 550,001 - 11/11/03 29/3/09 $0.42 9.36c per
option
$0.46 8.84c per
Issued 11 Nov 2003 550,000 550,000
option
Issued 11 Nov 2003 549,999 549,999
$0.50 8.37c per
option
6,625,000 6,625,000
29/3/09
29/3/09
26/5/99
26/5/99
Issued 10 April 2007
5c per option
11/11/03
11/11/03
29/3/09
29/3/09
4,125,000
4,125,000
30/11/08
Price
10/4/07
$0.26
-
-
-
-
-
-
(ii) Cancelled during the financial year
Helix Resources Limited Annual Report 2008
51
Price
11/11/03
26/5/99
26/5/99
29/3/09
29/3/09
Options - Series No. Vested Unvested Grant Date Expiry Date Exercise
grant date
$ Fair value at
Issued 26 May 1999 263,332 263,332 - 26/5/99 29/3/09 $0.42 Not valued
$0.46 Not valued
Issued 26 May 1999 263,334 263,334 -
$0.50 Not valued
Issued 26 May 1999 263,334 263,334 -
Issued 11 Nov 2003 500,001 500,001 - 11/11/03 29/3/09 $0.42 9.36c per
option
$0.46 8.84c per
Issued 11 Nov 2003 500,000 500,000 -
option
$0.50 8.37c per
Issued 11 Nov 2003 499,999 499,999 -
option
2,290,000 2,290,000 -
Options - Series No. Vested Unvested Grant Date Expiry Date Exercise
grant date
$ Fair value at
Issued 26 May 1999 133,333 133,333 - 26/5/99 29/3/09 $0.42 Not valued
$0.46 Not valued
Issued 26 May 1999 133,333 133,333 -
$0.50 Not valued
Issued 26 May 1999 133,334 133,334 -
Issued 11 Nov 2003 183,334 183,334 - 11/11/03 29/3/09 $0.42 9.36c per
option
$0.46 8.84c per
Issued 11 Nov 2003 183,333 183,333 -
option
$0.50 8.37c per
Issued 11 Nov 2003 183,333 183,333 -
option
950,000 950,000 -
Cancelled during the year ended 30 June 2007
26/5/99
26/5/99
29/3/09
29/3/09
11/11/03
11/11/03
11/11/03
29/3/09
29/3/09
29/3/09
29/3/09
Price
(iii) Granted during the financial year
There were no options granted during the financial year ended 30 June 2008.
Granted during the year ended 30 June 2007
Options - Series No.
Issued 10 April 2007
Grant Date Expiry Date Exercise Price
$ Fair Value Received
$
-
$0.26
30/11/08
-
4,125,000 10/4/07
4,125,000
(iv) Exercised during the financial year
There were no executive options exercised during the financial years ended 30 June 2008 and 2007.
Helix Resources Limited Annual Report 2008
52
(v) Balance at end of the financial year
Options Series
No.
Vested
Unvested
Grant Date
Expiry Date
Issued 26 May 1999
Issued 26 May 1999
Issued 26 May 1999
Issued 11 Nov 2003
Issued 11 Nov 2003
Issued 11 Nov 2003
20,000
20,000
20,000
50,000
50,000
50,000
20,000
20,000
20,000
50,000
50,000
50,000
Issued 10 April 2007
4,125,000
4,125,000
4,335,000
4,335,000
-
-
-
-
-
-
-
-
26/5/99
26/5/99
26/5/99
11/11/03
11/11/03
11/11/03
29/3/09
29/3/09
29/3/09
29/3/09
29/3/09
29/3/09
10/4/07
30/11/08
Exercise
Price
$
$0.42
$0.46
$0.50
$0.42
$0.46
$0.50
$0.26
Fair value at
grant date
Not valued
Not valued
Not valued
9.36c per option
8.84c per option
8.37c per option
5c per option
Fair value of consideration received is measured as the nominal value of cash receipts on conversion. The fair value of shares at the date of
their issue is measured as the market value at close of trade on the date of their issue. Employee share options carry no rights to dividends and
no voting rights. In accordance with the terms of the executive share option plan, options may be exercised at any time from the date the
vesting period ends to the date of their expiry.
The difference between the total market value of options issued during a financial year, at the date of issue, and the total amount received from
executives and employees is not recognised in the financial statements except for the purposes of determining 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 (2007: $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 $28,000 (2007 $158,869) 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 2008 to Mr Greg Wheeler.
Dunbar Resource Management provided professional services to the value of $3,450 (2007 $4,600) payable within 30 days from date of invoice
(net of GST). Mr Gordon Dunbar, a Director, has significant influence in Dunbar Resource Management. There were no balances outstanding
at 30 June 2008 to Mr Gordon Dunbar.
Den Dryver Mining Consultants Pty Ltd provided professional services to the value of $8,682 (2007 nil) payable within 30 days from date of
invoice (net of GST). Mr John den Dryver, a Director, has significant influence in Den Dryver Mining Consultants Pty Ltd. There were no
balances outstanding at 30 June 2008 to Mr John den Dryver.
Helix Resources Limited Annual Report 2008
53
b) Key Management Personnels’ Equity Holdings
Fully paid ordinary shares issued by Helix Resources Limited
Granted as
remuneration
Balance @
1/7/07
No.
No.
Received on
exercise of
options
No.
Net other
change
Balance @
30/6/08
Balance held
nominally
No.
No.
No.
Key Management
Personnel
G J Wheeler
M H Wilson
J den Dryver
G Dunbar
Total
2,829,501
15,000
-
100,000
2,944,501
-
-
-
-
-
-
-
-
-
-
1,129,201
3,958,702
78,133
-
93,133
-
200,000
300,000
1,407,334
4,351,835
Executive Share Options issued by Helix Resources Limited
Bal @
1/7/07
Granted as
remuneration
Exercised
Other
change
Bal @
30/6/08
Bal
vested @
30/6/08
Vested but
not
exerciseable
Vested and
exercisable
No.
No.
No.
No.
No.
No.
No.
No.
-
-
-
-
-
Options
vested
during
year
No.
Key
Management
Personnel
G J Wheeler
M H Wilson
J denDryver
G Dunbar
Total
2,000,000
1,535,000
400,000
400,000
4,335,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,000,000
2,000,000
1,535,000
1,535,000
400,000
400,000
400,000
400,000
4,335,000
4,335,000
-
-
-
-
-
2,000,000
1,535,000
400,000
400,000
4,335,000
-
-
-
-
-
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.
Further details of the options granted during the year are contained in note 16 and 17 to the financial statements.
Listed Share Options issued by Helix Resources Limited
Exercised
Bal @
1/7/07
Granted as
remuneration
Other
change
Bal @
30/6/08
Bal
vested @
30/6/08
Vested but
not
exerciseable
Vested and
exercisable
No.
No.
No.
No.
No.
No.
No.
No.
Options
vested
during
year
No.
Key
Management
Personnel
G J Wheeler
M H Wilson
J denDryver
G Dunbar
Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
494,838
494,838
494,838
3,517
3,517
3,517
-
-
-
25,000
25,000
25,000
523,355
523,355
523,355
-
-
-
-
-
494,838
494,838
3,517
3,517
-
-
25,000
25,000
523,355
523,355
Helix Resources Limited Annual Report 2008
54
19. INCOME TAX
CONSOLIDATED
COMPANY
Accounting loss before tax from continuing operations
Accounting loss before tax from discontinuing operations
Accounting loss before tax
Income Tax Expense to Accounting Loss
Tax expense at the statutory income tax rate of 30%
Sundry non-deductible (deductible) expenses
- non-deductible expenses
- revaluation of investments
- taxable gain on sale of tenements
- employee incentive options
Benefit of tax losses and temporary differences not brought to
account
Income tax expense
Income Statement
Current income tax charge
Deferred income tax
2008
$
(628,512)
-
(628,512)
2007
$
(187,904)
-
(187,904)
2008
$
(628,512)
-
(628,512)
2007
$
(187,904)
-
(187,904)
(188,554)
(56,371)
(188,554)
(56,371)
1,329
(15,870)
54,000
5,156
143,939
-
-
(66,956)
(12,713)
82,500
53,540
-
1,329
(15,870)
54,000
5,156
143,939
-
-
(66,956)
(12,713)
82,500
53,540
-
(1,031,556)
(306,962)
(1,031,556)
(306,962)
Relating to origination and reversal of temporary differences
Current year tax losses not recognised in the current period
Income tax expense reported in income statement
887,617
143,939
-
253,422
53,540
-
887,617
143,939
-
Unrecognised Deferred Tax Balances:
Unrecognised deferred tax asset losses
Unrecognised deferred tax assets other
Unrecognised deferred tax liabilities
Net Unrecognised deferred tax assets
13,266,510
36,341
(3,713,916)
9,588,935
12,185,130
19,256
(2,809,213)
9,395,173
12,669,266
36,341
(3,713,916)
8,991,691
253,422
53,540
-
11,587,886
19,256
(2,809,213)
8,797,929
Helix Resources Limited Annual Report 2008
55
20. SEGMENT INFORMATION
The Group operated predominantly in one geographical segment and one business, being gold and other base metals exploration and
development in Western Australia and South Australia.
21. EARNINGS PER SHARE
Basic loss per share
Diluted loss per share
COMPANY
2008
Cents Per share
(0.5)
(0.5)
2007
Cents Per share
(0.2)
(0.2)
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)
2008
$
(628,512)
2008
No.
123,713,739
2007
$
(187,904)
2007
No.
100,425,592
(a) Earnings used in the calculation of basic earnings per share is net loss after tax of $628,512 (2007 : $187,904).
(b) The executive share 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
earnings per share (refer below).
Diluted Loss per Share
The earnings and weighted average number of ordinary and potential ordinary shares used in the calculation of diluted earnings per share are as
follows:
Earnings (a)
2008
$
(628,512)
2007
$
(187,904)
12 months to 30 June 2008
12 months to 30 June 2007
No.
No.
Weighted average number of ordinary shares and potential
ordinary shares (b)
(a) Earnings used in the calculation of diluted loss per share is net loss after tax of $628,512 (2007: $187,904).
(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:
123,713,739
100,425,592
Executive options
Listed options
2008
No.
4,335,000
14,028,013
2007
No.
6,625,000
-
Helix Resources Limited Annual Report 2008
56
INTEREST IN JOINT VENTURES
22.
The parent entity has entered into the following unincorporated joint ventures:
Joint Venture Project
Tunkillia
Lake Everard Uranium
Yalleen
Percentage Interest
100% (2007: 100%) Diluting to 49% (Minotaur Exploration)
100% (2007: 100%) Diluting to 49% (Toro Energy)
30% (2007: 100%) (API Management Pty Ltd 70% Iron Ore rights)
Principal Exploration Activities
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 2008 is $1,071,078 (2007 : $107,356).
23. FINANCIAL INSTRUMENTS
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis
on which revenues and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are
disclosed in Note 1 to the financial statements.
The 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
Interest Rate
Less than 1
year
More than 1
Year
Non Interest
Bearing
$
$
$
$
Total
$
2008
Financial Assets
Other Receivables (incl tenement appl.)
Cash and cash equivalent assets
Security deposits and deposits at financial
institutions
7.4%
6.3%
Financial Liabilities
Trade Payables (all payable within 30
days)
2007
Financial Assets
Other Receivables (incl tenement appl.)
Cash and cash equivalent assets
Security deposits and deposits at financial
institutions
5.5%
6.0%
Financial Liabilities
Trade Payables (all payable within 30
days)
-
-
479,985
7,000,000
-
103,406
479,985
7,103,406
-
-
-
2,822,000
-
2,822,000
-
-
-
-
-
-
98,000
98,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
372,139
-
-
372,139
7,479,985
103,406
372,139
7,955,530
185,952
185,952
185,952
185,952
261,946
200
-
262,146
75,862
75,862
261,946
2,822,200
98,000
3,182,146
75,862
75,862
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.
Helix Resources Limited Annual Report 2008
57
Financial Risk Exposures and Management
The main risks the group is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk.
Interest Rate Risk
Interest rate risk is managed by investing cash with major financial institutions in both cash on deposit and term deposit accounts.
Interest Rate Risk Sensitivity Analysis
At 30 June 2008, the effect on loss and equity as a result of a 2% increase in the interest rate, with all other variables remaining constant would be a
decrease in loss by $103,000 (2007:$40,000) and an increase in equity by $103,000 (2007: $40,000). The effect on loss and equity as a result of a
2% decrease in the interest rate, with all other variables remaining constant would be an increase in loss by $103,000 (2007: $40,000) and a decrease
in equity by $103,000 (2007: $40,000).
Liquidity Risk
The group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained.
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.
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 mitigating 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.
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:
CONSOLIDATED
COMPANY
Provision for employee entitlements:
Current (Note 9)
Non-Current (Note 9)
Number of employees at end of financial year
25. REMUNERATION OF AUDITORS
a) Auditor of the Parent Entity
Auditing the financial report
2008
$
No
9
2008
$
2007
$
21,264
54,270
75,534
11,695
31,585
43,280
No
9
2007
$
2008
$
No
9
2008
$
2007
$
21,264
54,270
75,534
11,695
31,585
43,280
No
9
2007
$
19,125
19,125
18,000
18,000
19,125
19,125
18,000
18,000
The auditor of Helix Resources Limited for the 2008 financial year is Grant Thornton (WA) Partnership.
Helix Resources Limited Annual Report 2008
58
26. ADDITIONAL COMPANY INFORMATION
Helix Resources Limited is a listed public company, incorporated and operating in Australia.
Registered Office
9 Richardson Street
WEST PERTH WA 6005
Tel (08) 9321 2644
Principal Place of Business
9 Richardson Street
WEST PERTH WA 6005
Tel (08) 9321 2644
The financial report for Helix Resources Limited for the year ended 30 June 2008 was authorised for issue in accordance with a resolution of the
directors on the 22nd day of August 2008.
Helix Resources Limited Annual Report 2008
59
Spread of Holdings
1–1000
1,001–5,000
5,001–10,000
10,001–100,000
100,001 and over
Total
AS AT 11th AUGUST 2008
NUMBER OF SHARES HELD
Number of Shareholders
Number of Shares
171
545
415
834
132
102,581
1,799,585
3,502,671
29,827,211
96,067,838
2,097
131,299,886
Number of shareholders holding less than a marketable parcel
335
378,818
PERCENTAGE HELD BY 20 LARGEST SHAREHOLDERS
Shareholder
1 FRC AMCI Intermediate BV
2 AMCI Investments Pty Ltd
3 Yandal Investments Pty Ltd
4 Wythenshawe Pty Ltd
5 Aquila Resources Ltd
6 Gee Vee Pty Ltd
7 Blamnco Trading Pty Ltd
8 Technica Pty Ltd
9 Warramboo Holdings Pty Ltd
10 Zero Nominees Pty Ltd
11 ANZ Nominees Ltd
12 Niddrie Holdings Pty Ltd
13 Cairnglen Investments Pty Ltd
14 Mr Maxwell Alfred Kippe
15 Skiptan Pty Ltd
16 Fortis Clearing Nominees Pty Ltd
17
Loxden Pty Ltd
18 Vermar Pty Ltd
19 Mr Abdelaziz Soliman
20 The Whitfield S/F Account
Top 20 Total
Number of Shares
% of Issued Capital
13,063,829
13,063,829
11,172,514
8,000,000
7,681,293
6,478,839
2,000,000
1,856,666
1,750,000
1,456,802
1,370,980
1,229,115
1,200,000
900,000
890,000
864,347
800,000
700,000
687,200
450,000
9.95
9.95
8.51
6.09
5.85
4.93
1.52
1.41
1.33
1.11
1.04
0.94
0.91
0.69
0.68
0.66
0.61
0.53
0.52
0.34
75,615,414
57.57
VOTING RIGHTS
One vote for each ordinary share held in accordance with the Company's Constitution.
Helix Resources Limited Annual Report 2008
60
SUBSTANTIAL SHAREHOLDERS
Shareholder
FRC AMCI Intermediate BV
AMCI Investments Pty Ltd
Yandal Investments Pty Ltd
Wythenshawe Pty Ltd
Aquila Resources Ltd
DIRECTORS' INTEREST IN SHARE CAPITAL
Number of Shares
% of Issued Capital
13,063,829
13,063,829
11,172,514
8,000,000
7,681,293
9.95
9.95
8.51
6.09
5.85
Director
G J Wheeler
M H Wilson
J den Dryver
G Dunbar
Total
Fully Paid Ordinary Shares
Listed Options
Staff Options
6,478,839
93,333
-
300,000
6,872,172
494,838
3,517
-
25,000
523,355
2,000,000
1,535,000
400,000
400,000
4,335,000
Helix Resources Limited Annual Report 2008
61
NUMBER OF OPTIONS HELD
Spread of Holdings
1–1000
1,001–5,000
5,001–10,000
10,001–100,000
100,001 and over
Total
PERCENTAGE HELD BY 20 LARGEST OPTIONHOLDERS
Shareholder
1 Yandal Investments Pty Ltd
2 Wythenshawe Pty Ltd
3 Aquila Resources Ltd
4 Gee Vee Pty Ltd
5 Mr Manuel Arthur Samios
6 Blamnco Trading Pty Ltd
7 Warramboo Holdings Pty Ltd
8 Ms Tara Louise King
9 Technica Pty Ltd
10 PDS Management Pty Ltd
11 Mr C & Mrs S Bass
12 Ms Vanessa Adrienne Waghorn
13 Zero Nominees Pty Ltd
14 Mr Kym Anthony Burke
15 Niddrie Holdings Pty Ltd
16 Forbar Custodians Ltd
17 Sandwich Holdings Pty Ltd
18 Karalco Pty Ltd
19 Mr GD & Mrs AM Riley
20 Halyburton Super Fund
Top 20 Total
Number of Shareholders
Number of Shares
782
662
154
174
24
340,613
1,543,555
1,072,284
4,216,950
6,854,523
1,796
14,027,925
Number of Shares
% of Issued Capital
1,396,564
1,025,001
709,467
494,838
297,639
250,000
250,000
250,000
232,083
210,000
200,000
199,820
182,100
158,125
153,639
151,250
150,000
132,500
125,000
124,500
9.96
7.31
5.06
3.53
2.12
1.78
1.78
1.78
1.65
1.50
1.43
1.42
1.30
1.13
1.10
1.08
1.07
0.94
0.89
0.89
6,692,526
47.72
Helix Resources Limited Annual Report 2008
62
Tenement
Name
Mineral
Ownership
TENEMENT SCHEDULE
LAKE EVERARD
EL3403
EL3335
Lake Everard
Yellabinna
ELA2006/0389
Lake Everard West
Gold, base metals,
Uranium
Gold, base metals,
Uranium
Gold, base metals,
Uranium
HLX 100%, Minotaur earning 51% all minerals other than
uranium, Toro earning 51% uranium rights
HLX 100%, Minotaur earning 51% all minerals other than
uranium, Toro earning 51% uranium rights
HLX 100%, Minotaur earning 51% all minerals other than
uranium, Toro earning 51% uranium rights
PARACHILNA
EL3814
ADELAIDIAN
ELA2006/0570
EL3956
EL4022
GLENBURGH GOLD
EL09/1079
EL09/1281
EL09/1282
EL09/1283
EL09/1284
EL09/1285
EL09/1286
EL09/1287
EL09/1288
EL09/1289
EL09/1325
PL09/0424
PL09/0425
PL09/0426
PL09/0427
Mt Elkington
Copper, Gold, base metals HLX 100%
Fleurieu
Devonborough
Downs
Copper, Gold, base metals HLX 100%
Copper, Gold, base metals HLX 100%
Olary
Copper, Gold, base metals HLX 100%
Glenburgh
Warrigal
Gold, base metals
Gold, base metals
Carradarra Well
Gold, base metals
Deep Well
Challenger
Minga
Yalbra Well
Gold, base metals
Gold, base metals
Gold, base metals
Gold, base metals
Willagrad Bore
Gold, base metals
Garden Well
Rabbit Bore
Glenburgh
Gold, base metals
Gold, base metals
Gold, base metals
Gold, base metals
Gold, base metals
Gold, base metals
Gold, base metals
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
BOOYEEMA NICKEL JV
EL47/1089
EL47/1090
Munni Munni South Nickel
Munni Munni South Nickel
HLX 100% , Anglo American earning 80%
HLX 100% , Anglo American earning 80%
WEST PILBARA
EL47/1075
EL47/1144
EL47/1145
ELA47/1146
ELA47/1775
ELA47/1776
MLA47/0786
MLA47/0787
MLA47/0788
MLA47/0789
Munni Munni South Gold, base metals
Pinderi Hills
Pinderi Hills
Gold, base metals
Gold, base metals
Cooya Pooya
Gold, base metals
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Gold, base metals
Gold, base metals
Gold, base metals
Gold, base metals
Gold, base metals
Gold, base metals
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
Helix Resources Limited Annual Report 2008
63
Tenement
Name
Mineral
Ownership
WEST PILBARA
MLA47/0790
MLA47/0791
MLA47/0792
MLA47/0793
MLA47/0794
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Munni Munni
Gold, base metals
Gold, base metals
Gold, base metals
Gold, base metals
Gold, base metals
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
YALLEEN IRON ORE JOINT VENTURE
EL47/1169-I
EL47/1170-I
EL47/1171-I
Yalleen
Yalleen
Yalleen
Iron ore, base metals
HLX 100%, API Management Pty Ltd 70% iron ore rights
Iron ore, base metals
HLX 100%, API Management Pty Ltd 70% iron ore rights
Iron ore, base metals
HLX 100%, API Management Pty Ltd 70% iron ore rights
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 2008
64
CORPORATE DIRECTORY
Executive Chairman
Non-executive Director
Non-executive Director
Technical Director
Directors
Greg J Wheeler
John den Dryver
Gordon Dunbar
Michael Wilson
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
150 Stirling Highway
Nedlands Western Australia 6009
PO Box 1156 Nedlands Western Australia 6909
Telephone: +61 8 9389 8033
Facsimile: +61 8 9389 7871
Auditor
Grant Thornton (WA) 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
CODES: HLX and HLXO
Helix Resources Limited Annual Report 2008
65