HELIX RESOURCES LIMITED
ANNUAL REPORT 2009
Contents
Chairman’s Review .............................................2
Review Of Operations ..........................................3
Corporate Governance ....................................... 21
Directors’ Report.............................................. 25
Auditor’s Independence Declaration ...................... 30
Independent Audit Report................................... 31
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 ...................................... 61
Tenement Schedule .......................................... 64
Corporate Directory .......................................... 66
Helix Resources Limited Annual Report 2009
1
Chairman’s Review
Dear Shareholder
I am pleased to present the 2009 Annual Report for the Company.
As you are all aware, the global financial crisis has caused considerable challenges for your
Company following the collapse in junior equity markets and the consequent effect on our funding
capability to continue to aggressively explore and develop our assets.
Despite the global recession, Helix remains committed to our business strategy of securing large
advanced exploration acreage with a particular focus on our two key commodities, gold and
copper, and utilising leading edge exploration methodologies and techniques under the guidance of
a skilled Board and Management team to create shareholder wealth whilst managing risks.
We continue to manage our cash reserves, whilst at the same time progressing our assets and
seeking to augment our asset base. The Company is focusing on acquisitions that are drill-ready
exploration projects through to advanced projects with existing resources, upside potential and
near term production capability. The preference continues to be for gold & copper assets, with
opportunities also being explored in the energy sector. There is no geographical constraint,
however projects located in areas of unacceptable political risk will not be considered. All deal
structures will be contemplated, from joint venture farm-in through to direct project equity or
corporate acquisition.
I am very pleased with the shareholder response to the non-renounceable Option issue in July 2009
at $0.015, exerciseable prior to 31 May 2011 at $0.075. The Offer raised $810,000 and reflects an
82.2% take-up of the entitlement offered.
I would like to thank the Board and Staff for their strong contributions in 2008/9 and ongoing
commitment. Shareholders should be aware that all Staff and Directors voluntarily accepted an
overall 15% reduction in their contracted remuneration from April 2009 to recognise changed
market conditions.
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 2009
2
Review of Operations
Helix is a mineral exploration company established in 1986 with a strategy of acquiring large
tenement holdings in the frontier exploration regions of Australia, using leading edge exploration
methodologies and techniques under the guidance of an experienced Board & Management team to
create shareholder wealth.
RESERVES & RESOURCES
Commodity Category
Project
Interest
Resource
Iron Ore
Indicated
Inferred
Yalleen JV, WA
30%
47.9Mt @ 57.3% Fe (Channel
Iron)
36.4Mt @ 57.1% Fe (Channel
Iron)
Joint ventured with API Management Pty Ltd (50% Aquila Resources, 50% AMCI) and forms
part of their West Pilbara Iron Ore Project which comprises multiple JV’s. Significant
exploration upside remains.
Commodity Category
Project
Interest
Resource
Gold
Inferred
Glenburgh,
WA
100%
2.4Mt @ 2.6 g/t - 203,000 oz
Au
HLX greenfields discovery in the under-explored Gascoyne Region of WA. Assessment into
scenarios to advance the project continue.
Commodity Category
Project
Tunkillia JV, SA
Gold
Oxide
Measured
Indicated
Inferred
Primary
Measured
Indicated
Inferred
Interest
49%
(Diluting)
Resource
1.5 Mt @ 1.6 g/t – 75,000 oz
2.0 Mt @ 1.2 g/t – 75,000 oz
2.8 Mt @ 0.8g/t – 74,000 oz
0.8Mt @ 2.2 g/t – 59,000 oz
4.5 Mt @ 2 g/t – 284,000 oz
3.9 Mt @ 2.1 g/t – 236,000 oz
Silver*
9.3 Mt @ 5.5 g/t – 1.66M oz
Total
0.8M oz Au and 1.66M oz Ag
Minotaur Exploration Ltd has earned 51% and as JV Manager, is assessing economic and
technical viability of the project. Whilst Helix has the option to contribute at any time,
Minotaur will need to expend an additional $10 million to dilute Helix from 49% to 24%.
*(within +1g/t primary Au blocks)
Competent Persons Statements
The information in this report that relates to the Yalleen JV Mineral Resources is based on information compiled by Mr Stuart H Tuckey. Mr Tuckey
is full-time employee of the API Management Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of
deposits under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the
‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
The information in this report that relates to the Tunkillia JV Mineral Resources is based on information compiled by Dr A. P. Belperio, who is a
full-time employee of Minotaur Exploration Ltd and a Fellow of the Australasian Institute of Mining and Metallurgy. Dr A. P. Belperio has a
minimum of 5 years 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”.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves on all other 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 2009
3
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)
(cid:190)
600km² tenement area located in the West Pilbara region of WA, 50km SE of Pannawonica;
JV Manager API has estimated a channel iron (CID) Total Resource of 84.3 million tonnes @
57.2% Fe(*See resource table) for Kumina Creek and Robe Exit prospects based on drilling to
December 2008;
Exploration upside exists on several identified but untested targets within the project.
(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 iron 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 exposures 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) from
deposits in separate joint ventures with Red Hill Iron Ltd and Cullen Resources Limited and their
own projects. These projects are approximately 50-70 km southwest of the Yalleen Project area.
API’s exploration on Yalleen since 2005 has concentrated on definition of channel iron targets
at the Kumina Creek and Robe Exit prospects and exploration at the Bonham prospect (bedded
and supergene iron target).
Exploration at Yalleen, 2009
Helix Resources Limited Annual Report 2009
4
Figure 1: Yalleen Iron Ore JV Location Plan
Helix Resources Limited Annual Report 2009
5
Resource Estimate
Resource estimates have been compiled by API Management Pty Ltd for the Kumina Creek, Robe
Exit deposits located within the Yalleen Joint Venture. API Management Pty Ltd has completed the
resource estimates applying industry standard estimation techniques. Resource estimates have
been checked and audited by API.
West Pilbara Iron Ore Project Resource Estimate –
YALLEEN JOINT VENTURE CHANNEL IRON DEPOSITS
*Resource Classification
Tonnes
Mt
Fe %
SiO2
%
Al2O3
%
P %
S %
LOI % Mn %
MgO
%
Kumina Creek Deposit
Indicated
34.96
57.53
5.18
3.70
0.060
0.015
8.24
0.06
0.11
23.61
57.53
5.19
3.77
0.060
0.015
8.15
0.07
0.11
58.57
57.53
5.18
3.73
0.060
0.015
8.20
0.06
0.11
Inferred
TOTAL
Robe Exit Deposit
Indicated
12.91
56.50
5.52
3.74
0.053
0.018
9.41
0.05
0.14
Inferred
TOTAL
12.82
56.32
5.45
3.89
0.064
0.016
9.31
0.03
0.11
25.73
56.41
5.49
3.81
0.058
0.017
9.36
0.04
0.12
Total Resource – CID
Indicated
47.87
57.25
5.27
3.71
0.058
0.016
8.56
0.06
0.12
Inferred
TOTAL
36.43
57.10
5.28
3.81
0.061
0.015
8.56
0.06
0.11
84.30
57.19
5.28
3.75
0.060
0.016
8.56
0.06
0.11
Competent Person Statement
The information in this report that relates to the Kumina Creek and Robe Exit Mineral Resources is based on information compiled by Mr Stuart H
Tuckey. Mr Tuckey is full-time employee of the API Management Pty Ltd and has sufficient experience which is relevant to the style of
mineralisation and type of deposits under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined
in the 2004 Edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Helix Resources Limited Annual Report 2009
6
Estimation Parameters
Geological Interpretation
Three-dimensional geological interpretations have been completed for each deposit. Interpreted
geological boundaries are based on drill hole data, surface mapping and constraining topography.
A summary of total drilling by deposit is tabulated below.
Deposit
Number of Drill Holes Metres Drilled
Yalleen Joint Venture
Kumina Creek Deposit
Robe Exit Deposit
153
112
4,032
3,283
Diamond drilling was the primary drilling method undertaken within the Kumina Creek resource
area whilst Reverse Circulation drilling was the primary sole drill technique used to assess the
Robe Exit resource area.
Mineralised envelopes were defined by geological / assay boundaries at notional +54% Fe cut-off
for the Kumina Creek and Robe Exit resources pisolitic channel iron deposits.
Internal dilution was kept to a minimum provided continuity of the mineralised envelopes could be
maintained. Zones of lower grade ranging 52-54% Fe for Kumina Creek and Robe Exit were
incorporated into the mineralised envelopes if the geological continuity could not be maintained.
Mineralised envelopes were constrained by the CID unit identified in the geological model.
The mineralised zones were used to define spatial regions for statistical and geostatistical analysis.
For statistical data analysis, exploration data was composited to 1m downhole lengths for the
Kumina Creek deposit and 2m downhole lengths for the Robe Exit deposits. Analysis was based on
eight assay variables: Fe, SiO2, Al2O3, P, S, Mn, MgO and LOI (LOI 1000oC).
All composites were flagged to the spatial domain for statistical analysis.
Directional grade variography was completed for all domains at both Kumina Creek and Robe Exit
to provide parameters for the Ordinary Kriging method used for resource estimation.
For grade estimation of the CIDs a minimum of three passes of increasing search distances was
employed to interpolate all the blocks within the ore and waste domains.
Cut-off Grades
All resource estimates are reported applying iron cut-offs determined from grade tonnage curves.
A 54% lower cut-off grade for iron (Fe) has been applied to the resource model for the Kumina
Creek and Robe Exit deposits.
Full details on the resource estimation parameters can be viewed in the 24 April 2009 ASX release
on the Company’s website: www.helix.net.au
Helix Resources Limited Annual Report 2009
7
Helix comments on the Yalleen Project
1. The resource estimate by API in April 2009 shows improved iron grades and higher levels of
confidence in CID distribution from the initial resource released by Helix in June 2008.
2. API is investing significant funds in completing a Definitive Feasibility Study for Stage 1 of the
WPIOP which whilst not specific to the Yalleen JV, will provide useful technical and economic
information.
3. The RioTinto Pannawonica rail line is situated less than 12kms from the Kumina Creek deposit.
Given the interest being shown in 3rd party infrastructure access, alternates for transport may
emerge which may lessen capital expenditure and potentially shorten any future development
timelines.
4. The JV currently operates under a Heads of Agreement whilst formal documentation is
negotiated.
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: 8.3%
AMCI: 8.3%
CUL Shareholding*
CUL Shareholding*
AQA: 16.9%
AQA: 16.9%
AMCI: 17.6%
AMCI: 17.6%
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 @ 55.3%Fe Resource
Red Hill CID
+422Mt @56.6% Fe
Resource
RHI Shareholding*
RHI Shareholding*
AQA: 21%
AQA: 21%
AMCI: 19.85%
AMCI: 19.85%
Stage 1 WPIOP
Stage 1 WPIOP
PFS Completed May 2008
PFS Completed May 2008
30Mtpa Production
30Mtpa Production
AUD$4.1 Billion Capex
AUD$4.1 Billion Capex
AUD$20/t Opex
AUD$20/t Opex
Production mid 2013
Production mid 2013
*Shareholdings at 30 June 2009
Kumina Creek (CID)
Indicated 35Mt @ 57.5% Fe
Inferred 24Mt @ 57.5% Fe
Robe Exit (CID)
Indicated 13Mt @ 56.5% Fe
Inferred 13Mt @ 56.3% Fe
Bonham (BID) 8km² target
Several untested
CID & BID Targets
HLX Shareholding*
HLX Shareholding*
AQA: 5.8%
AQA: 5.8%
AMCI: 19.9%
AMCI: 19.9%
Helix Resources Limited Annual Report 2009
8
GLENBURGH GOLD PROJECT – WESTERN AUSTRALIA
Helix Resources Limited 100%
EL 09/1325, 09/1079 P09/425 -426
Project Summary
(cid:190)
(cid:190)
(cid:190)
380km² tenement area located in the Southern Gascoyne region of WA;
Inferred Resource of 2.4Mt @ 2.6 g/t for 203,000oz Au – (December 2008);
Technical and economic studies into development scenarios have commenced.
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.
Resources
The resource estimation for the project stands at 2.4Mt @ 2.6g/t Au for 203,000 ounces Inferred
[refer December 2008 Quarterly for estimation parameters]. Additional upside is present with
several prospects remaining open along strike and down dip.
Resource Statement
Area
Icon
Apollo
Mustang
Shelby
Hurricane
Zone 102
Zone 106
North East Four
Total
Glenburgh Project
December 2008 Inferred Resource Estimate >=1.0g/t Au Cut-off
Tonnes
952,000
670,000
190,000
124,000
93,000
185,000
96,000
116,000
2,425,000
Au Cut g/t
Au Cut ounces
2.3
3.4
1.9
1.7
2.1
3.3
2.8
1.6
2.6
71,000
73,000
12,000
7000
6,000
20,000
9,000
6,000
203,000
An initial desktop scoping study has commenced into the technical and economic feasibility of the
Glenburgh Gold Project under current economic conditions.
Exploration Update
Helix has identified several areas along strike of known mineralisation for follow-up work including
a fault off-set, potential down dip, extension to the existing Apollo trend based on a previous drill
hole result of 6m @ 5.7 g/t at 70m from surface. Assessment to determine its potential size and
impact on the current resource is on-going.
Helix Resources Limited Annual Report 2009
9
Figure 2: 2008 RC Drilling Section 10950E
Helix Resources Limited Annual Report 2009
10
LAKE EVERARD (INCL. TUNKILLIA) PROJECT – SOUTH AUSTRALIA
Helix Resources Limited 49%, Minotaur Exploration Limited 51%
EL 3403, ELA2006/389 and EL 3335 [excluding uranium rights]
GOLD
Project Summary
(cid:190)
(cid:190)
Resource inventory of 803,000oz Au and 1,658,000oz Ag;
Minotaur completed spend of $5M to earn 51% in December 2008 and continue with
technical and economic studies;
Exploration targets remain untested.
(cid:190)
Project Background
Helix discovered the deposit 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 km² 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 2003/2004 Helix completed a drill
out of the Area 223 prospect, estimating a
JORC resource of 720,000 ounces of gold.
By mid 2004, it became clear that the
Tunkillia 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 51% interest.
2005 Minotaur
Figure 3: Lake Everard JV Location Plan
Since
spent
approximately $5M carrying out additional
drilling at Area 223 and several exploration
campaigns using geophysics, geochemistry and
drilling. In August 2009, Minotaur released an
rred estimate inventory of 803,000oz Au and
updated combined measured, indicated and infe
1,658,000oz Ag within the Area 223 deposit. Minotaur advise they continue to complete
geotechnical, structural and metallurgical testing of diamond core together with economic studies.
have
Helix Resources Limited Annual Report 2009
11
Helix is not contributing to expenditure for the period 16 December 2008 to 31 December 2009.
Whilst Helix has the opportunity to contribute at any time, Minotaur under the JV agreement will
need to expend an additional $10 million to dilute Helix from 49% to 24%.
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.
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
Measured
Indicated
Inferred
Total (0.5g/t cut-off)
Primary
Measured
Indicated
Inferred
Total (1.0g/t cut-off)
Tunkillia Project Resource August 2009
Tonnes (MT)
Gold g/t
Gold ounces
1.5
2.0
2.8
6.3
0.8
4.5
3.9
9.3
1.6
1.2
0.8
1.1
2.2
2.0
1.9
1.9
75,000
75,000
74,000
224,000
59,000
284,000
236,000
579,000
Silver
Measured
Indicated
Inferred
Total (estimated for blocks with
>1g/t Au)
Tonnes (MT)
Silver g/t
Silver ounces
0.8
4.5
3.9
9.3
7.4
5.5
5.2
5.5
200,000
803,000
655,000
1,658,000
Helix Resources Limited Annual Report 2009
12
The current resource consists of a mineralisation inventory of 803,000oz gold and 1,658,000oz
silver to a depth of 300m below surface. Full details of the methodology were released by Minotaur
in August 2009.
GAWLER CRATON URANIUM PROJECT
Project Summary
(cid:190)
(cid:190)
JV Partner Toro Energy Ltd, withdrew from the JV in October 2008, with $248,000 spent.
Helix continues to source interested parties to advance the uranium prospectivity of the
tenements.
Project Background
Toro defined a significant portion of the Kingoonya Palaeochannel System on the Yellabinna JV
(EL3335) area utilising airborne EM and identified 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.
Toro Energy Ltd prior to withdrawal, had undertaken extensive negotiations with the South
Australian Department of Environment over access permits as the target area is located on the
eastern edge of South Australia’s Yellabinna Regional Reserve.
Native title discussions and heritage clearances were also advanced.
Helix is continuing to negotiate access with the relevant Government authorities.
Figure 4: Palaeochannel Uranium Target Positions
Helix Resources Limited Annual Report 2009
13
BOOYEEMA NICKEL PROJECT – WESTERN AUSTRALIA
E47/1090 and ELA47/1089
Project Summary
• A 629 line km VTEM survey has identified a buried 800m long conductive target controlled by
structure.
• Geophysical consultants, commissioned to assist with target assessment and drill positioning,
are modeling VTEM conductors coincident with buried magnetic features as a priority.
• WA Exploration Initiative Scheme (EIS) grant received to assist with drilling costs.
Project Background
The Booyeema Project in the West Pilbara is considered prospective for sulphide copper and nickel
accumulations in mafic/ultramafic intrusives in Achaean basement under Fortescue Formation
cover. A detailed aeromagnetic survey flown by Helix in April 2008 highlighted a number of
discreet NE-SW and ENE-WSW trending magnetic anomalies. Anglo American entered into a JV July
2008 to explore for buried nickel sulphide bodies in Achaean basement analogous to the Radio Hill
style deposits on the project and had the right to earn 80% of the project by spending $5M over 5
years, Anglo American has subsequently withdrawn from the JV.
Exploration Update
In October 2008 Anglo American conducted a Versatile Time-domain Electromagnetics (VTEM) 629
km line survey which successfully detected conductors in the project area with one ‘bullseye’
anomaly of particular interest. The conductor in centred on 457,650mE and 7,654,550mN (GDA94
MGA50) and has a NE-SW trend (analogous with the target geometry).
The Survey identified a buried 800m long conductive target controlled by structure. Helix has
commissioned geophysical consultants to review the technical data provided by Anglo American
and prioritise drilling targets including the +800m b-field feature below Fortescue Group cover.
Exploration at Booyeema, July 2009
Helix Resources Limited Annual Report 2009
14
Figure 5: VTEM B-Field Channel Overlain on TMIFVD Magnetics
Helix Resources Limited Annual Report 2009
15
WEST PILBARA PROJECT (INCL: BLACKTOP & YALLEEN BASE METALS) – WESTERN AUSTRALIA
Helix Resources Limited 100%
E47/1075, 1144-1145 &1175-76, 1169-1171(All minerals other than Fe - subject to Yalleen JV
ELA 47/1146
Background
Helix holds approximately 800 km² of greenfields tenements targeting precious and base metals in
a corridor spanning from the Proterozoic Fortescue Group into the Hamersley basin to the South.
The areas are prospective for VMS/VHMS style copper-lead-zinc in the mixed volcanic/volcano-
sedimentary lithologies of the Fortescue Group, PGE/Nickel in underlying basement and
manganese ± base metals in the basal sequences of the Hamersley Group.
Exploration Update
A detailed aeromagnetic survey completed in 2008 assisted in defining target areas which was
followed up by regional surface geochemistry.
(cid:190)
(cid:190)
(cid:190)
Area 1 – covering E47/1144 & E47/1145 –VMS/VHMS prospective lithologies over 20km of
strike.
Area 2 – E47/1075 & E47/1175 has a +7km long strike PGE + Nickel anomalous mafic unit
returning up to 50ppb Pt+Pd and 300ppm nickel in soils.
Area 3 – E47/1169-1170 Covers a series of sulphur-rich sediments and possibly manganese-
rich sequences in the top of the Fortescue Group 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 2009.
West Pilbara Field-work, May 2009
Helix Resources Limited Annual Report 2009
16
Figure 6: West Pilbara Base Metal Project Targets on Aeromagnetic Images
Helix Resources Limited Annual Report 2009
17
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;
Diamond drilling intercepted continuous anomalous copper values (+100ppm) over the
majority of their length.
Project Background
The Parachilna Project was identified by Helix for the series of large diapiric domes present in
Adelaidean Stratigraphy in the area. Historic copper mines and 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.
Exploration Update
Detailed mapping and sampling, together with an Aeromagnetic and IP survey, 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 analysis 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 soil cover which may account for the historical
“large diapir” interpretation.
Figure 7: Interpreted Section of BLN001 Diamond Drill Hole
Helix considers substantial regional prospectivity exists based on the RC and Diamond drilling
results and further targeting continues.
Helix Resources Limited Annual Report 2009
18
OLARY PROJECT - SOUTH AUSTRALIA
Helix Resources Limited 100%
EL4022, EL3956, ELA 379/08
Project Summary
(cid:190) The key geological features associated with the larger mineralising systems in the region have
been identified within the tenement area.
(cid:190) Regional surface geochemical surveys (1km spaced grid) have identified several areas of
interest including the +3km long gold in carbonate soils anomaly at the Duffield Prospect.
Infill sampling undertaken in the third quarter of 2009 will assist in prioritising targets for a
first-pass drill program.
(cid:190)
Background
The Olary Project is a large 1,500km² area covering the eastern extent of the Adelaide
Geosyncline. The area is considered prospective for gold and base metals. The exploration target
being pursued is large mineral deposits within reactive sedimentary sequences interacting with
late-stage granites, circulating basinal fluids and the structural influence of movement on deep
seated basement structures.
Exploration Update
Initial interpretation from a 10,000 line km detailed aeromagnetic survey, along with other target
generation work, provided the basis for regional sampling and geological mapping/evaluation
programs. The sampling program comprised a -40 mesh fraction auger sampling program of the
soil/calcrete interface material. Additional rock chip samples were collected as part of the
Geological evaluation. Geological mapping and evaluation has focused on identifying the principal
mineralising controls in the area and tying this into Helix’s evolving model for Au and base-metal
systems in the Adelaide Geosyncline.
Key requirements for the development of larger ore bodies in the region have been defined and
identified in the field within the tenement area. In addition rock chip samples from two locations
considered prospective for uranium mineralisation returned 35ppm and 25ppm Uranium assays
respectively. Further assessment of these areas is continuing.
Regional surface geochemical surveys analysis conducted have identified several areas of interest
including a +3km long gold in calcrete anomaly coincident with the interaction of a large north-
west regional fault and a structurally complex magnetic unit buried under shallow cover.
Helix Resources Limited Annual Report 2009
19
PROJECT LOCATION MAP
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 2009
20
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 2009
21
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 2009
22
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 2009
23
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 Blinman October 2008
Helix Resources Limited Annual Report 2009
24
DIRECTORS’ REPORT
In respect of the financial year ended 30 June 2009, 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 40 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 2009
25
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 $1,914,530 (2008: $628,512).
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 entity’s activities are contained in releases to the ASX on a quarterly basis and contained on our website at www.helix.net.au.
The Company’s strategy continues to be acquiring large tenement holdings in prospective mineral provinces and utilising our corporate and
geological expertise to create and extract value for the benefit of our shareholders.
We believe that gold remains an appropriate commodity to invest in, particularly at this time of significant challenges within the global financial
markets. We currently have exposure to +1M oz gold through our 100% Glenburgh and 49% Tunkillia JV, and we will be looking to extract
maximum value from these assets.
Whilst the markets may continue to be in a state of turmoil for some time, the Helix Board is of the opinion the outlook for the Company is solid,
with sufficient cash to advance our Assets well into 2010 in conjunction with expenditure by our JV partners, and this should be reflected in
positive share price performance once markets stabilise.
A summary of our expenditure for the last 3 financial years on our Mineral Assets is detailed below:-
Mineral Asset Project Highlights include:-
Iron Ore
•
Yalleen Project [API (Aquila/AMCI) 70% / Helix 30%] - $3.3 million exploration program completed to drill out Kumina Creek and Robe
Exit Channel iron (CID) deposits
API Resource estimate of 84.3 Mt @ 57.2% Fe for Kumina Creek and Robe Exit released 24 April 2009, with exploration upside at a
number of identified targets
Discussions continue with Rio Tinto regarding a satisfactory commercial arrangement which takes account of their application to place a
railway and infrastructure through the Yalleen tenements to access their Bungaroo CID deposit
•
•
Gold
• Glenburgh Project – Drilling during 2008 upgraded the existing Resource by 88% from 108,000 oz [1.1Mt @3gpt Au Inferred] to 203,000
oz [2.4Mt @2.6gpt Au Inferred]
Desktop Scoping Study commenced to assess economic and technical viability factors
•
Helix Resources Limited Annual Report 2009
26
•
•
Tunkillia Project - JV partner and manager Minotaur Exploration meet required expenditure of $5M to earn a 51% interest. The project has
an existing resource at Area 223 – comprising a total of 800,000oz Au and 1,600,000oz Ag. Minotaur has previously advised economic
and technical studies are underway.
Helix has undertaken a technical review of the results emerging from Minotaur’s $5M spend and made a decision to not contribute in
respect of their JV budget programs for 2009 calendar year. Should Minotaur expend a further $10M, the Helix JV interest would reduce
to 24%.
Booyeema Nickel Project
•
Anglo American complete a Versatile Time-domain Electromagnetics [VTEM] survey for a cost of $194,390, satisfying their initial option to
earn-in to the Project. Helix has reviewed the technical data provided by Anglo American which identifies a buried 800m long conductive
target controlled by structure and indicates the feature is at a modelled depth of approximately 200m. Helix has been awarded a grant
from the WA Department of Minerals and Petroleum Exploration Initiative Scheme for 2009-2010 to drill test these geophysical targets and
we are currently assessing drill targets.
Blacktop Nickel PGE Project
•
A series of follow-up detailed soil traverses and mapping in April 2009 has identified PGE (platinum + palladium) and nickel anomalism
associated with a unit within the Fortescue Group. This unit is interpreted to extend over 7kms along strike and is several hundred metres
wide.
Blinman Copper Project
•
Drilling of Blinman copper targets confirm the conceptual model and identified significant widths of mineralisation at sub-economic grades.
Significant regional prospectivity remains.
Olary Gold Project
•
A 10,000 line kilometre Aeromagnetic survey covering the southern half of the Olary project has identified a number of base metal, gold
and uranium targets.
Follow up soil sampling programs has identified targets which are being assessed for drilling.
•
Corporate
The Group reported a loss of $1,914,530 during the year after writing off $1.564m of carried forward exploration costs.
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
The Company has recently completed an Entitlement Issue raising $810,000 to further exploration activities. 54 million options were issued at
1.5c per option, exercisable for 7.5c before 31 May 2011.
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.
Helix Resources Limited Annual Report 2009
27
The following table discloses the remuneration of the directors and executives of the company:
Salary &
Fees
$
Primary
Perfor-
mance
Based
Payment
$
Post Employment
Equity
Non
Monetary
Super-
annuation
Pre-
scribed
Benefits
$
$
$
Other
Retire-
ment
Benefits
$
Options
% of
Remu-
neration
Other
Benefits
Total
$
%
$
$
2009
Key
Management
Personnel
G J Wheeler
288,190
M H Wilson
190,252
J den Dryver
G Dunbar
Total Key
Management
Personnel
49,375
49,375
577,192
-
-
-
-
-
-
-
-
-
-
25,559
17,123
-
-
42,682
-
-
-
-
-
-
-
-
-
-
8.2
7.8
6.6
6.6
28,000
17,500
3,500
3,500
52,500
-
-
-
-
-
341,749
224,875
52,875
52,875
672,374
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 15,000,000 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
M H Wilson
J den Dryver
G Dunbar
Total
8,000,000 Helix Resources Limited
5,000,000 Helix Resources Limited
1,000,000 Helix Resources Limited
1,000,000 Helix Resources Limited
$0.55
$0.55
$0.55
$0.55
31.10.2011
31.10.2011
31.10.2011
31.10.2011
15,000,000
8,000,000
5,000,000
1,000,000
1,000,000
15,000,000
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
7,248,839
233,133
-
300,000
9,624,420
2,116,567
600,000
750,000
8,000,000
5,000,000
1,000,000
1,000,000
* Directors’ interests in ordinary shares and options of the parent entity are shown at the date of this Directors’ Report.
OFFICERS’ INDEMNITY AND INSURANCE
During the year the Company paid an insurance premium to insure the Directors and Officers of the Company and related bodies corporate.
The Officers of the Company covered by the insurance policy include the Directors named in this report.
The Directors’ and Officers’ Liability insurance provides cover against all costs and expenses that may be incurred in defending civil or criminal
proceedings that fall within the scope of the indemnity and that may be brought against the officers in their capacity as officers of 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.
Helix Resources Limited Annual Report 2009
28
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.
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
3
3
3
3
3
3
3
3
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 26.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration is included on page 30 of the financial report.
Dated at Perth this 25th day of August 2009.
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 2009
29
AUDITOR’S INDEPENDENCE DECLARATION
Helix Resources Limited Annual Report 2009
30
INDEPENDENT AUDIT REPORT
Helix Resources Limited Annual Report 2009
31
INDEPENDENT AUDIT REPORT
Helix Resources Limited Annual Report 2009
32
INDEPENDENT AUDIT REPORT
Helix Resources Limited Annual Report 2009
33
DIRECTORS’ DECLARATION
The Directors declare that:
a)
b)
In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable;
In the directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 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 2009;
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 25th day of August 2009.
Helix Resources Limited Annual Report 2009
34
Current Assets
Cash and cash equivalents
Trade and Other Receivables
Financial Assets
Total Current Assets
Non-Current 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
BALANCE SHEET
AS AT 30 JUNE 2009
CONSOLIDATED
COMPANY
Note
2009
$
2008
$
2009
$
2008
$
2
3
4
6
7
5
8
9
9
10
11
12
4,360,573
7,479,985
4,360,573
7,479,985
138,372
23,670
372,139
130,800
138,372
23,670
372,139
130,800
4,522,615
7,982,924
4,522,615
7,982,924
110,718
198,616
110,718
198,616
13,815,868
12,158,401
13,815,868
12,158,401
100,000
103,406
100,000
103,406
14,026,586
12,460,423
14,026,586
12,460,423
18,549,201
20,443,347
18,549,201
20,443,347
125,778
78,668
204,446
24,876
24,876
185,952
21,264
207,216
54,270
54,270
125,778
78,668
204,446
24,876
24,876
229,322
261,486
229,322
185,952
21,264
207,216
54,270
54,270
261,486
18,319,879
20,181,861
18,319,879
20,181,861
55,815,856
55,824,908
55,815,856
55,824,908
61,600
287,187
61,600
287,187
(37,557,577)
(35,930,234)
(37,557,577)
(35,930,234)
18,319,879
20,181,861
18,319,879
20,181,861
Notes to the financial statements are included on pages 39 to 60
Helix Resources Limited Annual Report 2009
35
INCOME STATEMENT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2009
CONSOLIDATED
COMPANY
2009
$
2008
$
2009
$
2008
$
630,010
(464,072)
(50,620)
(17,010)
(98,750)
(61,910)
680,782
(646,008)
(31,372)
(27,280)
(96,668)
(42,631)
665,560
(464,072)
(50,620)
(17,010)
(98,750)
(61,910)
680,782
(646,008)
(31,372)
(27,280)
(96,668)
(42,631)
(1,563,952)
(291,738)
(1,563,952)
(291,738)
(30,606)
146,065
(19,820)
117,267
(30,606)
146,065
(19,820)
117,267
(177,765)
(153,560)
(177,765)
(153,560)
(23,646)
(2,958)
-
(107,130)
(92,186)
(1,914,530)
-
(20,204)
(4,839)
(10,231)
52,900
(135,110)
(628,512)
-
(23,646)
(2,958)
(35,550)
(107,130)
(92,186)
(1,914,530)
-
(20,204)
(4,839)
(10,231)
52,900
(135,110)
(628,512)
-
(1,914,530)
(628,512)
(1,914,530)
(628,512)
-
-
-
-
(1,914,530)
(628,512)
(1,914,530)
(628,512)
(1.46)
(1.46)
(0.5)
(0.5)
(1.46)
(1.46)
(0.5)
(0.5)
Note
13
14
7
19
21
21
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
Loss on Disposal of Fixed Assets
Revaluation of Shares in Listed Companies
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)
Notes to the financial statements are included on pages 39 to 60
Helix Resources Limited Annual Report 2009
36
CASH FLOW STATEMENT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2009
CONSOLIDATED
COMPANY
Note
2009
$
2008
$
2009
$
2008
$
(710,393)
(898,404)
(710,393)
(898,404)
421,393
196,968
327,948
102,051
421,393
196,968
327,948
102,051
Cash Flow From Operating Activities
Payments to suppliers and employees
Interest received
Other receipts
Net cash used in operating activities
2(b)
(92,032)
(468,405)
(92,032)
(468,405)
Cash Flow From Investing Activities
Payments for capitalised exploration &
evaluation expenditure
Payment for property, plant & equipment
Proceeds from sale of property, plant &
equipment
Payment for investments
Proceeds from sale of investments
Repayment of Loan from Subsidiary
(3,277,824)
(3,248,449)
(3,277,824)
(3,248,449)
(10,264)
259,285
-
-
-
(80,542)
(10,264)
(80,542)
-
(900)
481,130
774
-
-
-
258,511
-
(900)
481,130
-
(Payments) / Proceeds for security deposits
3,406
(5,406)
3,406
(5,406)
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
(3,025,397)
(2,854,167)
(3,025,397)
(2,854,167)
27
8,300,463
27
8,300,463
(2,010)
(1,983)
(319,906)
7,980,557
(2,010)
(1,983)
(319,906)
7,980,557
(3,119,412)
4,657,985
(3,119,412)
4,657,985
7,479,985
2,822,000
7,479,985
2,822,000
2(a)
4,360,573
7,479,985
4,360,573
7,479,985
Notes to the financial statements are included on pages 39 to 60
Helix Resources Limited Annual Report 2009
37
STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2009
CONSOLIDATED
COMPANY
2009
$
2008
$
2009
$
2008
$
20,181,861
12,812,631
20,181,861
12,812,631
27
7,925,093
27
7,925,093
(9,079)
61,600
-
-
17,187
55,462
(9,079)
61,600
-
-
17,187
55,462
(1,914,530)
(628,512)
(1,914,530)
(628,512)
18,319,879
20,181,861
18,319,879
20,181,861
Total equity at the beginning of the financial
year
Shares issued during the financial year
Share Issue Costs
Issue of Employee Incentive Options
Exercise or Expiration of options during the
financial year
Loss attributable to members of the parent
entity
Total equity at the end of the financial year
Drilling at Blinman South Australia, October 2008
Notes to the financial statements are included on pages 39 to 60
Helix Resources Limited Annual Report 2009
38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2009
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.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing
relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures
that the financial statements and notes also comply with International Financial Reporting Standards.
Accounting policies
Material 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 2009
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 2009
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 2009
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.
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
Helix Resources Limited Annual Report 2009
42
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 AASB has issued new, revised and amended standards and interpretations that have mandatory application dates for future
reporting periods. The Group has decided against early adoption of these standards. A discussion of those future requirements and
their impact on the Group follows:
•
AASB 8: Operating Segments and AASB 2007-3: Amendments to Australian Accounting Standards arising from AASB 8 [AASB 5,
AASB 6, AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 & AASB 1038] (applicable for annual
reporting periods commencing from 1 January 2009). AASB 8 replaces AASB 114 and requires identification of operating segments on
the basis of internal reports that are regularly reviewed by the Group’s Board for the purposes of decision making. While the impact of
this standard cannot be assessed at this stage, there is the potential for more segments to be identified. Given the lower economic
levels at which segments may be defined, and the fact that cash generating units cannot be bigger than operating segments,
impairment calculations may be affected. Management does not presently believe impairment will result however.
•
AASB 101: Presentation of Financial Statements, AASB 2007-8: Amendments to Australian Accounting Standards arising from AASB
101, and AASB 2007-10: Further Amendments to Australian Accounting Standards arising from AASB 101 (all applicable to annual
reporting periods commencing from 1 January 2009). The revised AASB 101 and amendments supersede the previous AASB 101 and
redefines the composition of financial statements including the inclusion of a statement of comprehensive income. There will be no
measurement or recognition impact on the Group. If an entity has made a prior period adjustment or reclassification, a third balance
sheet as at the beginning of the comparative period will be required.
•
AASB 2008-1: Amendments to Australian Accounting Standard — Share-based Payments: Vesting Conditions and Cancellations
[AASB 2] (applicable for annual reporting periods commencing from 1 January 2009). This amendment to AASB 2 clarifies that vesting
conditions consist of service and performance conditions only. Other elements of a share-based payment transaction should therefore
be considered for the purposes of determining fair value. Cancellations are also required to be treated in the same manner whether
cancelled by the entity or by another party.
The Group does not anticipate early adoption of any of the above reporting requirements and does not expect these requirements to
have any material effect on the Group’s financial statements.
Helix Resources Limited Annual Report 2009
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
2009
$
2008
$
2009
$
50,502
21,426
50,502
4,310,071
7,458,559
4,310,071
2008
$
21,426
7,458,559
4,360,573
7,479,985
4,360,573
7,479,985
b) Reconciliation of loss after income tax to cash flows used in operations
CONSOLIDATED
COMPANY
2009
$
2008
$
2009
$
2008
$
(1,914,530)
(628,512)
(1,914,530)
(628,512)
61,910
1,563,952
61,600
42,631
291,738
17,187
61,910
1,563,952
61,600
42,631
291,738
17,187
-
(233,831)
-
(233,831)
107,130
(173,697)
-
10,231
107,130
(173,697)
-
10,231
233,767
(110,193)
233,767
(110,193)
(60,174)
28,010
(92,032)
110,090
32,254
(468,405)
(60,174)
28,010
(92,032)
110,090
32,254
(468,405)
Loss after income tax
Non-cash flows in Loss
Depreciation
Impairment of Exploration and evaluation
Issuance /(Cancellation) of employee options
(Gain) on sale of investments
Loss on revaluation of investments
(Gain)/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 in Provisions
Net Cash used in Operations
c) Non-cash Transactions
Nil.
3. TRADE AND OTHER RECEIVABLES
CONSOLIDATED
COMPANY
2009
$
2008
$
2009
$
2008
$
Prepayments - Insurances
Prepayments – Tenement application and rents
Other
Total Current Receivables
27,817
7,685
102,870
138,372
37,441
103,969
230,729
372,139
27,817
7,685
102,870
138,372
Helix Resources Limited Annual Report 2009
37,441
103,969
230,729
372,139
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
4(a) Shares in subsidiaries
Name
CONSOLIDATED
COMPANY
2009
$
2008
$
2009
$
2008
$
23,670
23,670
130,800
130,800
23,670
23,670
130,800
130,800
Country of Incorporation
Percentage Held
Percentage Held
Hillview Mining NL
Helix Mining Investment Pty Ltd
Oxley Exploration Pty Ltd
Leichhardt Resources (QLD) Pty Ltd
Australia
Australia
Australia
Australia
2009
100%
100%
100%
100%
2008
100%
100%
-
-
5. OTHER ASSETS
Non-Current
Security Deposits
Total Other Assets – Non-Current
CONSOLIDATED
COMPANY
2009
$
2008
$
2009
$
2008
$
100,000
100,000
103,406
103,406
100,000
100,000
103,406
103,406
Helix Resources Limited Annual Report 2009
45
6. PROPERTY, PLANT AND EQUIPMENT
2009
Gross Carrying Amount
Balance at 30 June 2008
Additions
Disposals
Balance at 30 June 2009
Accumulated Depreciation
Balance at 30 June 2008
Disposals
Depreciation
Balance at 30 June 2009
Net Book Value
30 June 2008
30 June 2009
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
CONSOLIDATED AND COMPANY
Plant & Equipment
$
Motor Vehicles
$
317,638
10,264
(162,491)
165,411
224,482
(126,239)
31,197
129,440
93,156
35,971
171,520
-
-
171,520
66,060
-
30,713
96,773
105,460
74,747
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
Total
$
489,158
10,264
(162,491)
336,931
290,542
(126,239)
61,910
226,213
198,616
110,718
Total
$
570,632
80,542
(162,016)
489,158
399,695
(151,784)
42,631
290,542
170,937
198,616
Helix Resources Limited Annual Report 2009
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
2009
$
12,158,401
3,221,419
(1,563,952)
13,815,868
2008
$
9,201,690
3,248,449
(291,738)
12,158,401
2009
$
12,158,401
3,221,419
(1,563,952)
13,815,868
2008
$
9,201,690
3,248,449
(291,738)
12,158,401
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
131,299,886 Fully Paid Ordinary Shares (2008:
131,299,798)
Nil Listed Options (2008: 14,028,013)
Balance at end of financial year
CONSOLIDATED
COMPANY
2009
$
2008
$
2009
$
2008
$
125,778
185,952
125,778
185,952
78,668
78,668
24,876
24,876
21,264
21,264
54,270
54,270
78,668
78,668
24,876
24,876
21,264
21,264
54,270
54,270
55,815,856
55,824,908
55,815,856
55,824,908
-
-
-
-
55,815,856
55,824,908
55,815,856
55,824,908
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
2009
2008
No.
$
No.
$
131,299,798
55,824,908
114,101,589
47,844,351
-
-
88
-
17,000,000
(9,079)
27
-
198,209
8,245,000
(319,906)
55,463
131,299,886
55,815,856
131,299,798
55,824,908
Helix Resources Limited Annual Report 2009
47
Listed Options
2009
2008
No.
$
No.
$
14,028,013
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.
(14,027,925)
14,028,013
14,126,222
(98,209)
(88)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
* 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
17,600,000 employee options were issued in October 2008 following approval at the 2008 AGM. The options were valued under Black and
Scholes at 0.35 cents each ($61,600) and were in substitute of a cash bonus.
Value at Grant Date [also Issuance Date] of 10th October 2008
A Black & Scholes calculation [www.blobek.com] of the notional value of the Incentive Options is outlined below based on the following
assumptions:
a.
b.
c.
d.
e.
f.
g.
the Incentive Options expire on 31 October 2011 and are exercisable at $0.55 each;
a current price per Share of $0.08;
a volatility factor of 70%;
an interest rate of 5.38%;
a discount factor of 50% has been applied due to the lack of marketability of the Incentive Options;
the valuations ascribed to the Incentive Options may not necessarily represent the market price of the Incentive Options at the date
of the valuation; and
the valuation date for the Incentive Options was 10th October 2008.
Applying the 50% discount factor as described in (e) above, the value for each Incentive Option is therefore $0.0035 at 10th October 2008, the
date of issuance.
Helix Resources Limited Annual Report 2009
48
11. OTHER RESERVES
CONSOLIDATED
COMPANY
2009
$
2008
$
2009
$
2008
$
Options Reserve
Balance at beginning of financial year
Issue of Employee Incentive Options
Exercise of Employees Incentive Options
Expiry of Terminated Employee Incentive Options
287,187
61,600
-
(287,187)
284,463
17,187
(5,000)
(9,463)
Balance at end of financial year
The Options Reserve records items recognised as expenses on valuation of employee incentive options.
287,187
61,600
287,187
61,600
-
(287,187)
284,463
17,187
(5,000)
(9,463)
61,600
287,187
12. ACCUMULATED LOSSES
Balance at beginning of financial year
Net Loss attributable to members of the parent entity
(35,930,234)
(35,316,185)
(35,930,234)
(1,914,530)
(628,512)
(1,914,530)
Exercise of Employee Incentive Options
Expiry of Employee Incentive Options
Balance at end of financial year
-
287,187
5,000
9,463
-
287,187
(37,557,577)
(35,930,234)
(37,557,577)
(35,316,185)
(628,512)
5,000
9,463
(35,930,234)
REVENUE
13.
Loss before Income Tax includes the following items of revenue and expense:
CONSOLIDATED
COMPANY
2009
$
2008
$
2009
$
2008
$
Operating Activities
Interest Revenue
Tenement Rental Reimbursements
PACE Funding
Other
Total Operating Revenue
Non-Operating Activities
Profit from sale of shares in listed companies
Profit on disposal of fixed assets
Repayment of Loan previously written off
Total Non – Operating Revenue
Total Revenues
328,964
-
100,000
1,817
430,781
457,490
26,331
-
13,577
497,398
-
183,384
199,229
-
199,229
630,010
-
-
183,384
680,782
328,964
-
100,000
1,817
430,781
-
-
234,779
234,779
665,560
Helix Resources Limited Annual Report 2009
457,490
26,331
13,577
497,398
183,384
-
-
183,384
680,782
49
14.
LOSS FOR THE YEAR
Expenses
Depreciation of non-current assets: Property, plant and
equipment
Impairment of exploration and evaluation expenditure
Operating lease rental expenses: Minimum lease
payments
CONSOLIDATED
COMPANY
2009
$
61,910
1,563,952
152,987
2008
$
42,631
291,738
137,587
2009
61,910
1,563,952
152,987
2009
$
42,631
291,738
137,587
Loss for the year
1,914,530
628,512
1,914,530
628,512
15.
a)
COMMITMENTS
Operating Lease Commitments
Not later than 1 year
Later than 1 year but not later than 2 years
Later than 2 years but not later than 5 years
94,828
99,569
130,999
325,396
40,600
-
-
40,600
94,828
99,569
130,999
325,396
40,600
-
-
40,600
The Company relocated to new premises in October 2008. The lease is for a 4 year term with a 2 year option to extend. As at balance date
there was a balance of 3 years and 3 months remaining on the office lease.
Helix Resources Limited Annual Report 2009
50
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 $104,000 (2008:$206,000) and exploration expenditure of $1,520,000
(2008: $3,600,000). 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
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
Helix Resources Limited Annual Report 2009
51
Salary &
Fees
2009
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
$
$
$
$
$
$
$
$
$
288,190
190,252
49,375
49,375
577,192
-
-
-
-
-
-
-
-
-
-
25,559
17,123
-
-
42,682
-
-
-
-
-
-
-
-
-
28,000
17,500
3,500
3,500
52,500
-
-
-
-
-
341,749
224,875
52,875
52,875
672,374
17. EXECUTIVE SHARE OPTION PLAN
As at 30 June 2009 the Company had issued 15,000,000 share options (30 June 2008 4,335,000). 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 executiv
management personnels’ remu
year in which the entitlement w
d employees is not recognised in the financial statements except for the purposes of determining key
ion in respect of that financial y
rned.
he amounts are disclosed in remuneration i
ect of the financial
es an
nerat
as ea
n resp
ear. T
elow:
2009
2008
4,335,000
Further details are disclosed b
Expired during the financial year (iii)
exercise price
No. Weighted average
Executive Share Option Plan
No .
6,625 ,000
Balance at beginning of financial year (i)
(2,290 ,000)
Cancelled during the financial year (ii)
-
Granted during the financial year (iv)
Exercised during the financial year (v)
-
4,33 000 5,
(vi)
Options - Series No. Vested Unvested Grant Date Expiry Date Exercise
(i) Balance at begin
Balance at end of fi
of financial y ar
(4,335,000)
15,000,000
15,000,000
ial year
Price
$0.55
$0.55
$0.46
$0.46
nanc
ning
-
-
-
-
-
e
-
e
averag
Weighted
exercise price
$0.46
-
-
-
$0.46
grant date
$ Fair value at
Not valued
Issued 26 May 1999
Issued 26 May 1999
Issued 26 May 1999
Issued 11 Nov 2003
20,000
20,000
20,000
50,000
20,000
20,000
20,000
50,000
Issued 11 Nov 2003
50,000
50,000
Issued 11 Nov 2003
50,000
50,000
Issued 10 April 2007
4,125,000
4,125,000
4,335,000
4,335,000
(ii) Cancelled during the financial year
-
-
-
-
-
-
-
-
26/5/99
26/5/99
26/5/99
29/3/09
29/3/09
29/3/09
11/11/03
29/3/09
11/11/03
29/3/09
11/11/03
29/3/09
10/4/07
30/11/08
$0.42
$0.46
$0.50
$0.42
$0.46
$0.50
$0.26
Not valued
Not valued
9.36c per
option
8.84c per
option
8.37c per
option
5c per option
Helix Resources Limited Annual Report 2009
52
There were no opt
ions c
ancelled
durin
g the financial y
ear e
nded 30 June
2009
.
Is
he
08
sued
year
30 Ju
ne 20
ended
Price
11 Nov 2003
Cancelled during t
26/5/99
26/5/99
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 -
500,001 500,001 - 11/11/03 29/3/09 $0.42 9.36c per
option
500,000 500,000 -
$0.46 8.84c per
option
$0.50 8.37c per
499,999 499,999 -
option
2,290,000 2,290,000 -
grant date
$ Fair value at
Options Series No. Vested Unvested Grant Date Expiry Date Exercise
29/3/09
29/3/09
Expired during the
(iii) Expired during
11 Nov 2003
11 Nov 2003
11/11/03
11/11/03
nancial year
29/3/09
29/3/09
ended 30
Price
2009
June
the fi
year
sued
sued
Is
Is
Issued 26 May 1999
Not valued
29/3/09
26/5/99
20,000
20,000
$0.42
-
Issued 26 May 1999
Issued 26 May 1999
Issued 11 Nov 2003
20,000
20,000
50,000
20,000
20,000
50,000
Issued 11 Nov 2003
50,000
50,000
Issued 11 Nov 2003
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
29/3/09
29/3/09
11/11/03
29/3/09
11/11/03
29/3/09
11/11/03
29/3/09
$0.46
$0.50
$0.42
$0.46
$0.50
Not valued
Not valued
9.36c per
option
8.84c per
option
8.37c per
option
10/4/07
30/11/08
$0.26
5c per option
No options expired
durin
g the financia
l year
ended 30 June 2008.
G
rant
(iv) Granted during
na
year
the fi
ncial year
ed during the
Options - Series No.
9 Oct 2008
ended 30 Jun
15,000,000 9/10/08
15,000,000
Grant Date Expiry Date Exercis
$
$ Fair Value
-
$0.55
31/10/11
-
e Price
e 200
9
Rece
Is
sued
ived
There were no options granted during the financial year ended 30 June 2008.
(v) Exercised during the financial year
There were no executive options exercised during the financial years ended 30 June 2009 and 2008.
Helix Resources Limited Annual Report 2009
53
(vi) Balance at end
of th
e financial year
Options Series
Issued 9 Oct 2008 15,000,000
No.
15,000,000
Vested
Unvested
Grant Date
Expiry Date
Exercise
Price
$
Fair value at
grant date
15,000,000
15,000,000
-
-
9/10/08
31/10/11
$0.55
0.35c 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 (2008: $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 $nil (2008 $28,000) payable within 30 days from date of invoice
(net of GST). Mr Greg Wheeler, a Director, has significant influence in Greg Wheeler Consulting Pty Ltd. There were no balances outstanding
at 30 June 2009 to Mr Greg Wheeler.
Dunbar Resource Management provided professional services to the value of $nil (2008 $3,450) 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 2009 to Mr Gordon Dunbar.
Den Dryver Mining Consultants Pty Ltd provided professional services to the value of $1,430 (2008 $8,682) 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 2009 to Mr John den Dryver.
Helix Resources Limited Annual Report 2009
54
b) Key Management Personnels’ Equity Holdings
Fully paid ordinary shares issued by Helix Resources Limited
Granted as
remuneration
Balance @
1/7/08
No.
No.
Received on
exercise of
options
No.
Net other
change
Balance @
30/6/09
Balance held
nominally
No.
No.
No.
Key Management
Personnel
G J Wheeler
M H Wilson
J den Dryver
G Dunbar
Total
3,958,702
93,133
-
300,000
4,351,835
-
-
-
-
-
-
-
-
-
-
3,290,137
7,248,839
140,000
233,133
-
-
-
300,000
3,430,137
7,781,972
Executive Share Options issued by Helix Resources Limited
Bal @
1/7/08
Granted as
remuneration
Exercised
Other
change
Bal @
30/6/09
Bal vested
@ 30/6/09
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
8,000,000
5,000,000
1,000,000
1,000,000
15,000,000
-
-
-
-
-
(2,000,000)
8,000,000
8,000,000
(1,535,000)
5,000,000
5,000,000
(400,000)
1,000,000
1,000,000
(400,000)
1,000,000
1,000,000
(4,335,000)
15,000,000
15,000,000
-
-
-
-
-
8,000,000
5,000,000
1,000,000
1,000,000
15,000,000
-
-
-
-
-
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 @
1/7/08
Granted as
remuneration
Other
change
Bal @
30/6/09
Bal
vested @
30/6/09
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
3,517
-
25,000
523,355
-
-
-
-
-
-
-
-
-
-
(494,838)
(3,517)
-
(25,000)
(523,355)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Helix Resources Limited Annual Report 2009
55
19. INCOME TAX
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/assessable (deductible/assessable)
expenses
- non-deductible expenses
- revaluation of investments
- taxable gain on sale of tenements
- employee incentive options
- write back of subsidiary loan
-utilisation of prior year tax losses
CONSOLIDATED
COMPANY
2009
$
2008
$
2009
$
2008
$
(1,914,530)
(628,512)
(1,914,530)
(628,512)
-
-
-
-
(1,914,530)
(628,512)
(1,914,530)
(628,512)
(574,359)
(188,554)
(574,359)
(188,554)
1,165
32,139
-
18,480
-
(70,434)
1,329
(15,870)
54,000
5,156
-
-
1,165
32,139
-
18,480
(70,434)
-
1,329
(15,870)
54,000
5,156
-
-
Benefit of tax losses not brought to account
593,009
143,939
593,009
143,939
Income tax expense
Income Statement
Current income tax charge
Deferred income tax
-
-
-
-
(1,028,160)
(1,031,556)
(1,028,160)
(1,031,556)
Relating to origination and reversal of temporary differences
Current year tax losses not recognised in the current period
435,151
887,617
593,009
143,939
435,151
593,009
Income tax expense reported in income statement
-
-
-
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
14,262,597
13,266,510
13,735,786
12,669,266
46,100
36,341
46,100
36,341
(4,158,824)
(3,713,916)
(4,158,824)
(3,713,916)
10,149,873
9,588,935
9,623,062
8,991,691
Helix Resources Limited Annual Report 2009
56
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
2009
Cents Per share
(1.46)
(1.46)
2008
Cents Per share
(0.5)
(0.5)
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)
2009
$
(1,914,530)
2009
No.
131,299,886
2008
$
(628,512)
2008
No.
123,713,739
(a) Earnings used in the calculation of basic earnings per share is net loss after tax of $1,914,530 (2008: $628,512).
(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)
2009
$
(1,914,530)
2008
$
(628,512)
12 months to 30 June 2009
12 months to 30 June 2008
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 $1,914,530 (2008: $628,512).
(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:
131,299,886
123,713,739
Executive options
Listed options
2009
No.
15,000,000
-
2008
No.
4,335,000
14,028,013
Helix Resources Limited Annual Report 2009
57
INTEREST IN JOINT VENTURES
22.
The parent entity has entered into the following unincorporated joint ventures:
Joint Venture Project
Tunkillia
Yalleen
Percentage Interest
48.32% (2008: 100%) (Minotaur Exploration)
30% (2008: 30%) (API Management Pty Ltd 70% Iron Ore rights)
Principal Exploration Activities
Gold
Iron Ore
The joint ventures are not separate legal entities but are contractual arrangements between the participants for sharing costs and output and do
not in themselves generate revenue and profit. Exploration expenditure is the only asset of the joint ventures. The Group’s interest in
exploration expenditure in the above mentioned joint ventures is included in note 7 and at 30 June 2009 is $1,666,883 (2008: $1,071,078).
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:
2009
Financial Assets
Other Receivables (incl tenement appl.)
Cash and cash equivalent assets
Security deposits and deposits at financial
institutions
Financial Liabilities
Trade Payables (all payable within 30
days)
Floating Interest Rate Maturity
Average
Interest
Rate
%
Fixed
Interest Rate
Less than 1
year
More than 1
Year
Non Interest
Bearing
$
$
$
$
Total
$
-
-
6.1%
1,297,943
3,062,630
6.5%
-
100,000
1,297,943
3,162,630
-
-
-
-
-
-
-
-
-
-
138,372
-
-
138,372
4,360,573
100,000
138,372
4,598,945
125,778
125,778
125,778
125,778
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)
-
-
479,985
7,000,000
-
103,406
479,985
7,103,406
-
-
-
-
-
-
-
-
-
-
372,139
-
-
372,139
7,479,985
103,406
372,139
7,955,530
185,952
185,952
185,952
185,952
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 2009
58
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 2009, 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 $87,000 (2008: $103,000) and an increase in equity by $87,000 (2008: $103,000). 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 $87,000 (2008: $103,000) and a decrease
in equity by $87,000 (2008: $103,000).
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.
Helix Resources Limited Annual Report 2009
59
24. EMPLOYEE ENTITLEMENTS
The aggregate employee entitlement liability recognised and included in the financial statements is as follows:
CONSOLIDATED
2009
$
No
6
78,668
24,876
103,544
2008
$
No
9
21,264
54,270
75,534
COMPANY
2009
$
2008
$
78,668
24,876
103,544
No
6
21,264
54,270
75,534
No
9
Provision for employee entitlements:
Current (Note 9)
Non-Current (Note 9)
Number of employees at end of financial year
25. CONTINGENT LIABILITIES
The Company may be required to issue bank guarantees to secure tenement holdings. The Company currently has bank guarantees to the
value of $71,085 (2008: $88,000).
26. REMUNERATION OF AUDITORS
a) Auditor of the Parent Entity
Auditing the financial report
2009
$
2008
$
2009
$
2008
$
23,575
23,575
19,125
19,125
23,575
23,575
19,125
19,125
The auditor of Helix Resources Limited for the 2009 financial year is Grant Thornton (WA) Partnership.
27. SUBSEQUENT EVENTS
The Company has recently completed an Entitlement Issue raising $810,000 to further exploration activities. 54 million options were issued at
1.5c per option, exercisable for 7.5c before 31 May 2011.
28. ADDITIONAL COMPANY INFORMATION
Helix Resources Limited is a listed public company, incorporated and operating in Australia.
Registered Office
Suite 7, 29 Ord Street
WEST PERTH WA 6005
Tel (08) 9321 2644
Principal Place of Business
Suite 7, 29 Ord Street
WEST PERTH WA 6005
Tel (08) 9321 2644
The financial report for Helix Resources Limited for the year ended 30 June 2009 was authorised for issue in accordance with a resolution of the
directors on the 25th day of August 2009.
Helix Resources Limited Annual Report 2009
60
Spread of Holdings
1–1000
1,001–5,000
5,001–10,000
10,001–100,000
100,001 and over
Total
AS AT 24th AUGUST 2009
NUMBER OF SHARES HELD
Number of Shareholders
Number of Shares
170
525
401
803
133
100,557
1,728,490
3,367,262
29,506,991
96,596,586
2,032
131,299,886
Number of shareholders holding less than a marketable parcel
722
1,973,238
PERCENTAGE HELD BY 20 LARGEST SHAREHOLDERS
Shareholder
1 Rubicon Nominees Pty Ltd
2 UBS Wealth Management
3 Yandal Investments Pty Ltd
4 Gee Vee Pty Ltd
5 Wythenshawe Pty Ltd
6 BTX Pty Ltd
7 Penoir Pty Ltd
8 ANZ Nominees Limited
9 Blamnco Trading Pty Ltd
10 Technica Pty Ltd
11 Warramboo Holdings Pty Ltd
12 Zero Nominees Pty Ltd
13 Niddrie Holdings Pty Ltd
14 Skiptan Pty Ltd
15 Mr Nicholas Murray Gleeson
16 Mr Abdelaziz Soliman
17
Loxden Pty Ltd
18 Vermar Pty Ltd
19 Berne No 132 Nominees Pty Ltd
20 Nefco Nominees Pty Ltd
Top 20 Total
Number of Shares
% of Issued Capital
13,063,829
13,063,829
11,172,514
7,248,839
6,983,060
4,681,293
3,000,000
2,081,980
2,000,000
1,856,666
1,750,000
1,456,802
1,229,115
1,100,000
901,739
830,000
800,000
700,000
602,600
517,872
9.95
9.95
8.51
5.52
5.32
3.57
2.28
1.59
1.52
1.41
1.33
1.11
0.94
0.84
0.69
0.63
0.61
0.53
0.46
0.39
75,040,138
57.15
VOTING RIGHTS
One vote for each ordinary share held in accordance with the Company's Constitution.
Helix Resources Limited Annual Report 2009
61
SUBSTANTIAL SHAREHOLDERS
Shareholder
Rubicon Nominees Pty Ltd
UBS Wealth Management
Yandal Investments Pty Ltd
Aquila Resources Limited
Gee Vee Pty Ltd
Wythenshawe Pty Ltd
Number of Shares
% of Issued Capital
13,063,829
13,063,829
11,172,514
7,681,293
7,248,839
6,983,060
9.95
9.95
8.51
5.57
5.52
5.34
DIRECTORS' INTEREST IN SHARE CAPITAL
Director
G J Wheeler
M H Wilson
J den Dryver
G Dunbar
Total
Fully Paid Ordinary Shares
Listed Options
Staff Options
7,248,839
233,133
-
300,000
7,781,972
9,624,420
2,116,567
600,000
750,000
13,090,987
8,000,000
5,000,000
1,000,000
1,000,000
15,000,000
Helix Resources Limited Annual Report 2009
62
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
Optionholder
1 Yandal Investments Pty Ltd
2 Gee Vee Pty Ltd
3 Berne No 132 Nominees Pty Ltd
4 Mr Michael Hood Wilson
5 Blamnco Trading Pty Ltd
6 Penoir Pty Ltd
7 Aotea Minerals Ltd
8 Technica Pty Ltd
9 Goldbondsuper Pty Ltd
10
Lawrence Crow Consulting Pty Ltd
11 Mr Gordon John and Diana Lyle Dunbar
12 ANZ Nominees Pty Ltd
13 Niddrie Holdings Pty Ltd
14 DenDryver Superannuation Fund Pty Ltd
15 Ms Shandy Sui Han Wong
16 Tromso Pty Ltd
17 Octifil Pty Ltd
18 Maxigold Holdings Pty Ltd
19
Loxden Pty Ltd
20 Mrs Coral Estelle and Mr Kerry William John Harris
Number of Optionholders
Number of Options
23
103
59
203
65
453
14,565
312,436
484,814
8,079,268
45,108,085
53,999,168
Number of Options
% of Issued Capital
10,000,000
9,624,420
2,200,000
2,110,000
2,000,000
1,500,000
1,000,000
928,333
927,779
800,000
750,000
743,999
614,558
600,000
564,000
500,000
500,000
500,000
500,000
500,000
18.52
17,82
4.07
3.91
3.70
2.78
1.85
1.72
1.72
1.48
1.39
1.38
1.14
1.11
1.04
0.93
0.93
0.93
0.93
0.93
Top 20 Total
36,863,089
68.27
Helix Resources Limited Annual Report 2009
63
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 51% all minerals other than uranium
HLX 100%, Minotaur 51% all minerals other than uranium
HLX 100%, Minotaur 51% all minerals other than uranium
PARACHILNA
EL3814
Mt Elkington
Copper, Gold, base metals HLX 100%
ADELAIDIAN
EL3956
EL4022
EL4250
Devonborough
Downs
Copper, Gold, base metals HLX 100%
Olary
Copper, Gold, base metals HLX 100%
Baratta Hill
Copper, Gold, base metals HLX 100%
GLENBURGH GOLD
EL09/1079
Glenburgh
Gold, base metals
HLX 100%
EL09/1325
Glenburgh
Gold, base metals
HLX 100%
PL09/0425
PL09/0426
Gold, base metals
HLX 100%
Gold, base metals
HLX 100%
BOOYEEMA NICKEL JV
ELA47/1089
Munni Munni South Nickel
HLX 100% , Anglo American earning 80%
EL47/1090
Munni Munni South Nickel
HLX 100% , Anglo American earning 80%
Helix Resources Limited Annual Report 2009
64
Tenement
Name
Mineral
Ownership
WEST PILBARA
EL47/1075
Munni Munni South Gold, base metals
HLX 100%
EL47/1144
Pinderi Hills
Gold, base metals
HLX 100%
EL47/1145
Pinderi Hills
Gold, base metals
HLX 100%
ELA47/1146
Cooya Pooya
Gold, base metals
HLX 100%
ELA47/1775
Munni Munni
Gold, base metals
HLX 100%
ELA47/1776
Munni Munni
Gold, base metals
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 2009
65
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
Suite 7, 29 Ord 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 HLXOA
Helix Resources Limited Annual Report 2009
66