HELIX RESOURCES LIMITED
ANNUAL REPORT 2010
Drilling at the Canbelego Prospect March 2010
Contents
Chairman’s Review.............................................................................. 2
Review Of Operations .......................................................................... 3
Corporate Governance ........................................................................ 20
Directors’ Report ............................................................................... 24
Auditor’s Independence Declaration ....................................................... 30
Independent Audit Report.................................................................... 31
Directors’ Declaration ......................................................................... 34
Statement Of Financial Position............................................................. 35
Statement Of Comprehensive Income ..................................................... 36
Statement Of Cash Flows ..................................................................... 37
Statement Of Changes In Equity............................................................. 38
Notes To The Financial Statements ........................................................ 39
Number Of Shares Held ....................................................................... 62
Tenement Schedule............................................................................ 65
Corporate Directory ........................................................................... 67
Sulphide mineralisation at
Little Boppy, NSW
Soil Sampling at
Little Boppy, NSW
Helix Resources Limited Annual Report 2010
1
Chairman’s Review
Dear Shareholder
I am pleased to present the 2010 Annual Report for the Company. During the past 12 months Helix
has focused on 3 concurrent strategies:-
• monetise and/or progress development scenarios for our mineral resource assets, including
•
•
divestment of non-core assets
identify and secure new ground in regions where operating mines and infrastructure are
present and where drill targets have been identified
review potential merger or project acquisition opportunities to create ‘size’ and/or synergy
benefits
The Scoping Study completed for the Yalleen Iron Ore Project reports technical and financial
viability based on a 5Mtpa road haulage option to access the proposed API WPIOP rail
infrastructure 70kms west. The Financial Evaluation indicates significant operating margins can be
achieved and detailed studies regarding development aspects have commenced.
We monetised our Glenburgh gold asset by vending it into the successful listing of Gascoyne
Resources Ltd [ASX code: GCY] in December 2009 and distributed in-specie to shareholders +80% of
the shares held valued at $3.2 million.
The Tunkillia Gold JV continues to be funded by Minotaur, with Helix continuing to dilute until
value is seen in the Minotaur exploration and development initiatives regarding the asset.
We have secured significant ground holdings in NSW targeting copper and gold, with initial drilling
programs increasing our confidence that mineralised copper zones will be delineated of sufficient
size and grade to consider hauling and processing at nearby operating mills with excess capacity.
We expect to have continuing news flow throughout 2010 from drilling programs on our NSW
copper & gold targets and encourage you to visit our website at www.helix.net.au for the latest
information regarding our activities.
I would like to thank the Board and Staff for their strong contributions in 2009/10 and ongoing
commitment.
I look forward to your attendance at the forthcoming Annual General Meeting.
Yours faithfully
Greg J Wheeler
Executive Chairman
Helix Resources Limited Annual Report 2010
2
Review of Operations
Helix is a mineral exploration company established in 1986. The Company has a strategy of acquiring
large tenement holdings in the frontier exploration regions, 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 [WPIOP] which comprises multiple JV’s. Positive Scoping study
results have led to detailed studies being commenced on production scenarios.
Commodity Category
Project
Interest
Resource
Oxide
Gold
Measured
Tunkillia JV, SA
Indicated
Inferred
Primary
Measured
Indicated
Inferred
47%
(Diluting)
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 53% and as JV Manager continue to assess and fund economic
and technical viability of the project as well as exploration potential. Whilst Helix has the option to
contribute at any time, Minotaur will need to expend an additional $10 million from their original
spend of $5M for 51% to dilute Helix from its original 49% interest 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 Tuckey, who is a
Member of the Australasian Institute of Mining and Metallurgy and is a full-time employee of the API Management Pty Ltd. Mr Tuckey 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’. Mr S Tuckey consents to the inclusion in the report of the matters based on his information in the form and context in which it
appears.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves for the Tunkillia JV is based on information
compiled by Dr A. P. Belperio, who is a full-time employee of Minotaur Exploration Limited 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”. Dr A. P. Belperio consents to the inclusion in the report of the matters
based on his information in the form and context in which it appears.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves on all 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 2010
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)
(cid:190)
(cid:190)
(cid:190)
(cid:190)
(cid:190)
600km² tenement area located in the West Pilbara region of WA, 50km ESE of Pannawonica;
JV Manager API has estimated a channel iron (CID) Total Resource of 84.3 million tonnes @
57.2% Fe(*See appended resource table) for Kumina Creek and Robe Exit prospects;
Scoping study reports technical and financial viability based on 5Mtpa road haulage to access
proposed API WPIOP rail infrastructure 70kms West
Preliminary economic evaluation of the Project demonstrates that robust returns could be
achievable. The financial model indicates a post tax value range NPV12% of $1,100M and NPV16%
of $900M based on:-
o Capital expenditure range of $150M to $200M including haul road to access planned rail
infrastructure 70km W, screening plant to upgrade ore, camp construction and pre-strip
costs, including allowances for EPCM and 25% Contingency;
o Operating costs including royalties of ±$48/t based on access to proposed rail and port
infrastructure on acceptable commercial terms;
o Life of Mine [LOM] Revenue of ±$109/t;
Scoping study indicates two (2) potential infrastructure solutions for transporting ore
to customers
The Project economic evaluation involves assumptions as to future events which are not
capable of independent substantiation. Readers should refer to the assumptions and Disclaimer
included in the previous ASX releases regarding Yalleen and form their own views. The
economic evaluation findings should not be used as a basis for investment decisions about
shares in Helix
Detailed studies have commenced which will include metallurgical test-work; baseline studies
covering heritage, environmental and water management issues, and infrastructure access
agreements.
DISCLAIMER
This scoping study contains forward-looking statements which are only predictions and are subject to risks, uncertainties and
assumptions which are outside the control of Helix Resources Ltd. Actual values, results or events may be may be materially different
to those expressed or implied and hence given these uncertainties, recipients are cautioned when placing any reliance on such
forward looking statements. Assumptions inherent in the scoping study include, without limitation:-
•
•
Estimates of future earnings and cashflows, and the sensitivity of earnings and cashflows to movements in the underlying
assumptions;
Estimates of future operating and capital costs; production and recovery rates; sales;
Estimates of resources and the conversion to mineable reserves in a saleable product form;
political and operational risks in the countries and states in which we operate or sell product to, and governmental
regulation and judicial outcomes
•
•
Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is
expressed in good faith and believed to have a reasonable basis.
Helix Resources Limited Annual Report 2010
4
Sensitivity Analysis of Scoping Study Financial Evaluation
Varying underlying assumptions affects the financial evaluation as follows:-
Variables' Effects on NPV
1,800
1,600
1,400
1,200
1,000
$m
800
600
400
200
0
Change in Income, %
Change in Variable costs, %
Discount factor
Total investment, 1000 AUD
‐20.0 %
‐10.0 %
0.0 %
+10.0 %
+20.0 %
% Change to get NPV=0
‐200%
‐100%
0%
100%
200%
300%
400%
500%
600%
700%
800%
900%
Initial Investment
850%
Variable Costs
123%
Revenue
‐56%
The chart above shows the percentage by which each of the items would need to change in order to
reduce the NPV of the project to zero. Consistent with the previous chart, this shows that a fall in
revenue would have the greatest impact on the project, followed by variable costs, and a substantial
increase in the initial investment.
Note that the impact of each variable has analysed in isolation. The effect of changing two or more
variables concurrently has not been analysed above.
The Mineral Resources Rent Tax has not been included as its impact has yet to be determined.
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.
Helix Resources Limited Annual Report 2010
5
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.
Figure 1: Yalleen Iron Ore JV Location Plan
Yalleen has potential for two infrastructure solutions to development:-
(cid:190) API WPIOP Stage 1 with a proposed railhead load out facility 70km W [refer green line]
(cid:190) Robe River – given June 2010 Australian Competition Tribunal [ACT] decision that capacity exists
and 3rd party access is available [refer red line]
The fact Yalleen has two potential transport solutions compares favourably to a number of other
identified iron ore deposits which planned access to BHP or Rio infrastructure prior to the ACT in June
2010 determining their is no excess capacity [black lines above].
Helix Resources Limited Annual Report 2010
6
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
Competent Person Statement
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
The information in this report that relates to the Yalleen JV Mineral Resources is based on information compiled by Mr Stuart Tuckey, who is a
Member of the Australasian Institute of Mining and Metallurgy and is a full-time employee of the API Management Pty Ltd. Mr Tuckey 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’. Mr S Tuckey 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 2010
7
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 2010
8
Other comments on the Yalleen Project
1. The JV currently operates under a Heads of Agreement whilst formal documentation is negotiated,
with API ceasing negotiations in February 2009. API control the information regarding the Yalleen
Iron Ore JV and the API JV participants hold ±26% of Helix.
2. The JV agreement negotiated to date provides for the following:-
a. Each Participant will be subject to pre-emptive rights when dealing in their JV interests
b. Helix will have access to API infrastructure on commercial terms
c. Helix has the right on the JV Decision to Mine to sell their interest to API at fair market
value
Helix Resources Limited Annual Report 2010
9
NSW COPPER/GOLD PROJECTS
During 2009/2010 Helix has acquired a significant ground holding in the Cobar/Girilambone District of
NSW. The projects include 100% held Helix tenements together with earn-in JV’s with Straits Resources
(Canbelego JV) and Glencore subsidiary Isokind Pty Ltd (Restdown JV & Muriel Tank JV), and covers over
1,500 square kilometres of tenements and applications prospective for copper and gold in a region with
operating mines, access to infrastructure and a history of discovery for the commodities being sought.
Figure 2: Helix Project Location Map showing other major tenement holders
Remnants from Historical Mining
activity at the Canbelego Copper
Mine, NSW
Drill site clearing at Canbelego
Helix Resources Limited Annual Report 2010
10
CANBELEGO PROJECT JV – NSW
EL6105 - Helix Resources Ltd 51%/Tritton Resources Pty Ltd 49%
The RC drilling program of 6 holes for 780m announced in May 2010 extended the strike of known
mineralisation to +200m [remains open down dip and along strike].
Drill Results From Helix Program At The Canbelego Mine Prospect
Hole ID
East MGA94
North MGA94
From
Result
CBLRC001
434381
6500730
52m
11m @ 1.3% Cu
CBLRC002
434359
6500743
89m
And 107m
12m @ 1.3% Cu
4m @ 1.6% Cu
CBLRC003
434342
6500847
73m
4m @ 2.0% Cu
CBLRC004
434055
6500063
104m
1m @ 1.7% Cu
CBLRC005
434427
6500638
21m
CBLRC006
434408
6500624
74m
And 77m
0.2% cut off, 2m max internal dilution, >1% intercepts reported.
11m @ 1.3% Cu
(Incl. 4m @ 3.9% Cu)
1m @ 1.1% Cu
1m @ 1.0% Cu
The drilling confirmed the Company’s exploration model which is based on a detailed review of surface
and downhole geology, geophysics, historic surface geochemistry and previous drilling surrounding the
Prospect.
Historic diamond core was quarter sawn at the NSW Minerals core library and assayed after it was noted
that the core had only been assayed in the 1970’s, where massive sulphide was present. These results
illustrate the presence of substantially wider mineralised zones than previously thought and indicates
excellent down dip potential for the system.
The combination of the recent Helix drilling, assay of historic core and results from drill holes
previously completed by Straits, provides enough data to undertake a maiden resource model and
estimate for the project which is underway.
Historic Diamond Core Re-Assay Of Zones Of Interest
Hole ID
East MGA94
North MGA94
From
Result
CD2
CC4
CC5
CD1
CC9
434312.41
6500690.08
434283.33
6500867.5
434170.68
6500745.75
434325.69
6500780.25
and
434109.64
6500828.93
CC10
434191.01
6500648.69
0.2% cut off, 2m max internal dilution, >1% intercepts reported.
170
167
321
168
182
168
319
19m @ 1.1% Cu
(Incl. 5m @ 2.4%)
5m @ 3.1% Cu
(incl. 2.5m @ 9.9%)
12m @ 1.2% Cu
(incl. 3m@3.4%)
2m @ 1.2% Cu
2m @ 1.1% Cu
1m @ 1.5% Cu
4m @ 1.1% Cu
Helix Resources Limited Annual Report 2010
11
Canbelego Project Regional Targets
A 2nd drilling program is expected to commence late 3Q10 [subject to relevant approvals being
obtained] to assess up to five (5) regional target areas identified from recent geophysical surveys and
surface sampling.
The Priority 1 targets include:
• Hawk Prospect – Coincident magnetic “bulls eye”, copper-lead-arsenic surface geochemistry,
with a gravity linear feature wrapping around southern edge and extending NW and SE of the
magnetic feature (+/- 400m of strike).
• McGill Prospect: Magnetic linear feature, gravity high, with arsenic, lead, minor copper
geochemistry. Rockchips up to 0.1% As, 0.1g/t Au (+/- 1,200m strike)
• Gonzales Prospect: Magnetic linear features, two Straits drill holes with wide intercepts of
+0.1% anomalous copper (best 3m@1.1% Cu, historic workings and anomalous copper in surface
geochemistry (+/- 800m strike)
• Caballero Prospect: NW Magnetic linear, coincident with 1km x 500m copper in soils anomaly,
rockchips to 0.5g/t gold, 0.3% copper and 0.1% arsenic
• Mullen Prospect: Magnetic anomaly, single Straits drill hole which finished in elevated arsenic
(up to 1.2%)and gold (up to 0.2g/t) (+/- untested 500m strike)
Figure 3: Canbelego regional targets based in geophysics and geochemical sampling
Helix Resources Limited Annual Report 2010
12
Restdown and Muriel Tank Joint Venture Projects
Helix, through its 100% owned subsidiary Oxley Exploration Pty Ltd [Oxley], has signed an earn-in joint
venture covering the Restdown and Muriel Tank Projects with Isokind Pty Ltd, a subsidiary of Glencore
International AG.
This opportunity provides Helix with an additional 3 granted tenements in the prospective Lachlan Fold
belt, with priority targets for gold and copper mineralisation which, subject to regulatory approvals,
will be drill tested 3Q10.
The terms of the Earn-in require Oxley to expend $700,000 within 2 years to earn a 70% interest in the
tenements, with a minimum $225,000 to be spent within 12 months. Oxley will then have the right to
earn a further 10% interest and move to 80% by expending a further $1,000,000 within 24 months of the
First Expenditure Requirement notice, should Glencore choose to dilute. Oxley also have the right to
earn a further 10% interest and move to 90% by expending a further $1,000,000 within 48 months of the
First Expenditure Requirement notice, should Glencore choose to dilute. A Party with an interest less
than 10% will convert to a 1% Net Smelter Royalty.
Restdown
The Restdown Project covers an area of approximately 188km² and is located 40km south-east of Cobar
in Central West NSW. Tenements EL6140 and EL6501 cover a package of Girilambone Beds
unconformably overlain in places by younger Meryula Formation, and numerous historic workings are
located within the project area.
Helix is targeting both gold and base metal models consistent with the known deposits in the
Cobar/Girilambone Region.
Muriel Tank
The Muriel Tank Project [EL6739] covers an area of approximately 90km² and is located 70km east of
Cobar. The project covers a series of historic gold workings hosted in quartz scree and quartz vein
subcrop on low ridges within plains of shallow alluvial cover. The high-grade gold-sulphide
mineralisation mined in the 1920’s and 1930’s appears to be structurally controlled and provides a focus
for initial work.
Helix has commenced field reconnaissance and is lodging applications for approval for the proposed
1,000m drilling program on the Restdown tenement EL 6140.
LITTLE BOPPY PROJECT - NSW
Helix Resources Ltd 100% EL7482
Little Boppy project covers approximately 150 km² tenement area in the Cobar/Girilambone District of
NSW with excellent infrastructure and operating mines.
The project covers the NW extensions of the Canbelego JV magnetic complex and includes areas with
additional historical copper/gold workings.
line spaced
aeromagnetics has identified numerous anomalies that have been prioritised, with several currently
being depth-modelled for drill testing.
Interpretation of the detailed 50m
Helix Resources Limited Annual Report 2010
13
Figure 4: Little Boppy Tenement Area showing priority anomalies on detailed aeromagnetic
QUANDA PROJECT and FIVE WAYS PROJECT - NSW
Helix Resources Ltd 100% EL7438 and EL7439
Quanda and Five Ways cover approximately 1300 km² ground holding in the Cobar/Girilambone District
of NSW with excellent infrastructure and operating mines.
The projects cover the southern extensions of the Girilambone-Tritton-Budgery mineralised trend and a
detailed 100m line spaced aeromagnetic survey recently completed has highlighted a number of target
areas for drill testing 1H11.
M Wilson and C Johnson inspecting drillcore
from Eastern Girilambone Anticlinal Zone, NSW
Helix Resources Limited Annual Report 2010
14
LAKE EVERARD (INCL. TUNKILLIA) PROJECT – SOUTH AUSTRALIA
Helix Resources Limited 47%, Minotaur Exploration Limited 53%
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 (*See appended resource table);
Minotaur continue to sole fund their proposed work programs whilst Helix dilute. Minotaur has
to sole fund a further $10M from their initial 51% equity position to dilute Helix to ±24%;
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.
Figure 5: Lake Everard JV Location Plan
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.
Since 2005 Minotaur have spent approximately $6M carrying out additional drilling at Area 223 and
several exploration campaigns using geophysics, geochemistry and drilling. In August 2009, Minotaur
released an updated combined measured, indicated and inferred estimate inventory of 803,000oz Au
and 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.
Whilst Helix is not contributing to expenditure during the 2010 calendar year pending success of
Minotaur’s exploration and development programs, Helix has the opportunity to contribute at any time.
Helix Resources Limited Annual Report 2010
15
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)
Silver
Measured
Indicated
Inferred
Total (estimated for blocks with
>1g/t Au)
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
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
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.
Helix Resources Limited Annual Report 2010
16
GAWLER CRATON URANIUM PROJECT
Project Summary
(cid:190)
Helix has commenced a search for interested parties to advance the uranium prospectivity of
the tenements after negotiations with the South Australian Department of Environment over
access permits as the target area is located in the buffer zone of South Australia’s Yellabinna
Regional Reserve.
Project Background
As part of a previous JV earn-in arrangement $250,000 was spent defining a significant portion of the
Kingoonya Palaeochannel System, on the Yellabinna (EL3335) and Lake Everard West (EL4495)
tenements, was defined 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 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 uranium model being pursued.
Helix Resources Limited Annual Report 2010
17
OLARY PROJECT – SA
Helix Resources Ltd 100% EL4022; EL3956
Bonython Metals Group Pty Ltd has entered into an earn-in JV with Helix whereby Bonython will
spend $2 million over 5 years to earn 65% of the iron ore rights, with a minimum of $300,000 by 1
March 2011.
Figure 6: Companies with Exposure to Braemar Iron Province, South Australia
Helix Comments on the JV with BMG
•
Initial BMG exploration target +1Bt @ 18% magnetite DTR
• HLX right to sell at fair market value after BMG earn 51%
•
•
BMG JV with Carpentaria re Hawsons Iron Project 50km E has staged payments of $81M to earn
80%
Royal Resources acquisition of Razorback Ridge and nearby tenements with staged payments of
$40M
• Helix tenements have considerable strategic value for BMG development aspirations given
existing Broken Hill-Pt Pirie rail passes through HLX tenements
Helix Resources Limited Annual Report 2010
18
BOOYEEMA NICKEL PROJECT – WESTERN AUSTRALIA
E47/1090 and ELA47/1089
Project Summary
• A 629 line km VTEM survey identified a buried 800m long conductive target controlled by structure
which Geophysical consultants have modelled at 200m.
• Discussions are continuing with JV parties interested in drilling the target.
PROJECT LOCATION MAP
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves on 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 2010
19
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 2010
20
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 2010
21
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 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 2010
22
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 ISO 31000:2009. The company engages an insurance broking 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.
Visible Copper Mineralisation
(malachite) near the Canbelego Copper
Mine, NSW
Helix Resources Limited Annual Report 2010
23
DIRECTORS’ REPORT
In respect of the financial year ended 30 June 2010, 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, 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.
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
Gordon Dunbar
Greg J Wheeler
Company
Adelaide Resources Limited
Gascoyne Resources Limited
Gascoyne Resources Limited
Gascoyne Resources Limited
Period of directorship
18 April 2005 – current
5 October 2009 – current
5 October 2009 – current
25 September 2009 – 19 October 2009
JOINT COMPANY SECRETARIES
Greg J Wheeler
Mr Wheeler is a Chartered Accountant with over 25 years experience in accounting, company secretarial and
corporate management.
Helix Resources Limited Annual Report 2010
24
Iron Ore
•
•
Gold
•
•
Joneen McNamara
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 $6,885,378 (2009: $1,914,530).
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, discussed in a separate section of this Annual
Report as well as on our website at www.helix.net.au.
The Company’s strategy continues to focus on prospective gold and copper regions and utilising our corporate and geological expertise to
create and extract value for the benefit of our shareholders.
Mineral Asset Project Highlights include:-
Yalleen Project [API (Aquila/AMCI) 70% / Helix 30%] - API Resource estimate of 84.3 Mt @ 57.2% Fe for Kumina Creek and Robe Exit
deposits
Activities continue with the aim to increase the Resource and to assess development scenarios for the Project after Helix completed a
Scoping Study which concluded economic and financial viability. The fact the API WPIOP Stage 1 DFS results are positive provides
potential access to their planned rail and port infrastructure.
Tunkillia Project - JV partner and manager Minotaur Exploration continue to sole fund economic and technical studies as well as RC
drilling programs to assess regional gold targets within the controlling structure of the Area 223 resource – comprising a total of 800,000oz
Au and 1,600,000oz Ag.
Helix is encouraged Minotaur are focusing on regional gold prospectivity to improve Project economics. Helix has made a decision to not
contribute in respect of the JV programs for 2010 calendar year and should Minotaur expend a further $8M, the Helix JV interest would
reduce to ±25%.
Copper/Gold
•
Helix has secured over 1,500 km2 of ground in the Cobar/Girilambone District of NSW prospective for copper and gold in a region with
operating mines, access to infrastructure and a history of discovery for the commodities being sought.
The 1st drilling program at Canbelego has indicated a mineralized copper zone of sufficient size and grade to haul and process at nearby
operating mills with excess capacity.
Interpretation of aeromagnetic, geochemical and geophysical surveys conducted have identified 5 High Priority targets which are
scheduled for drilling 2 H10.
•
•
Booyeema Nickel Project
•
Helix has reviewed the Versatile Time-domain Electromagnetics [VTEM] survey 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 assessed drill targets and is
seeking a Joint Venture party to fund the program.
Olary Project
•
A Joint Venture with Bonython Metals Group Pty Ltd [“BMG”] was secured whereby BMG will earn a 65% interest in the iron ore rights by
expending $2M over 5 years, with a minimum spend of $300,000 in Year 1.
Glenburgh Gold Project
This asset was vended into the successful listing of Gascoyne Resources Ltd [ASX code: GCY] in December 2009 and +80% of the shares
held, valued at $3.2 million, were distributed in-specie to shareholders in late February 2010. This provides Helix shareholders with continued
exposure to the Glenburgh Project, together with additional prospective projects in the Gascoyne Region of WA, within a separate ASX listed
entity with fresh capital to advance the projects
Corporate
The Group reported a loss of $6,885,378 during the year after writing off $5.818m of carried forward exploration costs largely related to the
Tunkillia Gold JV.
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.
Helix Resources Limited Annual Report 2010
25
SUBSEQUENT EVENTS
There has not been any matter or circumstance, other than referred to in the financial statements or notes thereto, that has arisen since the end
of the financial year, that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the
state of affairs on the Group in future financial years.
FUTURE DEVELOPMENTS
Disclosure of information regarding likely developments in the operations of the Group in future financial years and the expected results of those
operations is likely to result in unreasonable prejudice to the Group. Accordingly, this information has not been disclosed in this report.
REMUNERATION REPORT
The Company’s Executive Officers’ remuneration policy is set to ensure that remuneration packages properly reflect the duties and
responsibilities of the senior executives and are sufficient to attract, retain and motivate personnel of the requisite quality. The policy is
administered by the Remuneration Committee, which is comprised of all board members. The Executive Officers of the Company are employed
under Service Agreements which are all identical in their contents and only differ in remuneration levels. They have durations of thirty six
months from 19th June 2008 and renew automatically unless terminated by either the Company by giving a minimum of twelve months notice to
the individual; or by the individual by giving six months notice to the Company. Whilst the level of remuneration is not dependent on the
satisfaction of any performance condition, the performance of Executives is reviewed on an annual basis.
Non-executive Directors are remunerated by fees determined by the Board within the aggregate Directors’ fee pool limit of $150,000 approved
by shareholders in April 1996. The pool limit is not at present fully utilised. In setting the fees, account is taken of the responsibilities inherent in
the stewardship of the Company and the demands made of Directors in the discharge of their responsibilities. Advice is taken from independent
consultancy sources where appropriate to ensure remuneration accords with market practice.
The company has largely adopted the ASX Corporate Governance Council’s Principles of Good Corporate Governance and Best Practice
Recommendations and decided to remunerate its non-executive directors on an ongoing basis with no accrual or entitlement to a retirement
benefit.
Remuneration packages contain the following key elements:
a) Primary benefits – salary / fees and performance based bonuses;
b) Post employment benefits – prescribed retirement benefit; and
c) Equity – share options granted under the executive share option plan as disclosed in note 17 to the financial statements.
The following table discloses the remuneration of the directors and executives of the company:
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
$
%
$
$
2010
Key
Management
Personnel
G J Wheeler
262,040
M H Wilson
169,324
J den Dryver
40,000
G Dunbar
J McNamara
Total Key
Management
Personnel
40,000
50,330
561,694
-
-
-
-
-
-
-
-
-
-
-
-
23,584
15,239
-
-
4,529
43,352
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
285,624
184,563
40,000
40,000
54,859
605,046
Helix Resources Limited Annual Report 2010
26
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
49,375
G Dunbar
J McNamara
Total Key
Management
Personnel
49,375
67,655
644,847
-
-
-
-
-
-
-
-
-
-
25,559
17,123
-
-
6,089
48,771
-
-
-
-
-
-
-
-
-
-
8.2
7.8
6.6
6.6
2.3
28,000
17,500
3,500
3,500
1,750
54,250
-
-
-
-
-
341,749
224,875
52,875
52,875
75,494
747,868
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 15,500,000 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
J McNamara
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
500,000 Helix Resources Limited
15,500,000
$0.525
$0.525
$0.525
$0.525
$0.525
31.10.2011
31.10.2011
31.10.2011
31.10.2011
31.10.2011
8,000,000
5,000,000
1,000,000
1,000,000
500,000
15,500,000
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.
Helix Resources Limited Annual Report 2010
27
OFFICERS’ INDEMNITY AND INSURANCE
During the year the Company paid an insurance premium to insure the Directors and Officers of the Company and related bodies corporate.
The Officers of the Company covered by the insurance policy include the Directors named in this report.
The Directors’ and Officers’ Liability insurance provides cover against all costs and expenses that may be incurred in defending civil or criminal
proceedings that fall within the scope of the indemnity and that may be brought against the officers in their capacity as officers of the Company
or a related body corporate. The insurance policy does not contain details of the premium paid in respect of individual officers of the Company.
Disclosure of the nature of the liability cover and the amount of the premium is subject to a confidentiality clause under the insurance policy.
The Company has entered into an agreement with the Directors and Officers to indemnify them against any claim and related expenses, which
arise as a result of work completed in their respective capacities.
The Company has not otherwise, during or since the financial year indemnified or agreed to indemnify an officer or auditor of the Company or of
any related body corporate against a liability incurred as such an officer or auditor.
ENVIRONMENTAL REGULATIONS
The Group is subject to environmental regulations under laws of the Commonwealth and State. The Group has a policy of complying with its
environmental performance obligations and at the date of this report, is not aware of any breach of such regulations.
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 31st day of August 2010.
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 2010
28
Competent Persons Statements
The information in this report that relates to the Yalleen JV Mineral Resources is based on information compiled by Mr
Stuart Tuckey, who is a Member of the Australasian Institute of Mining and Metallurgy and is a full-time employee of
the API Management Pty Ltd. Mr Tuckey 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’. Mr S Tuckey consents to the inclusion in the report of the matters based on his information in the form and
context in which it appears.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves for the Tunkillia JV
is based on information compiled by Dr A. P. Belperio, who is a full-time employee of Minotaur Exploration Limited 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”. Dr A. P. Belperio consents to the inclusion in the report of the
matters based on his information in the form and context in which it appears.
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves on all
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 2010
29
AUDITOR’S INDEPENDENCE DECLARATION
Helix Resources Limited Annual Report 2010
30
INDEPENDENT AUDIT REPORT
Helix Resources Limited Annual Report 2010
31
INDEPENDENT AUDIT REPORT
Helix Resources Limited Annual Report 2010
32
INDEPENDENT AUDIT REPORT
Helix Resources Limited Annual Report 2010
33
DIRECTORS’ DECLARATION
The Directors of the company declare that:
1.
the financial statements and notes, as set out on pages 35 to 61 are in accordance with the Corporations Act 2001 and:-
a.
b.
comply with Accounting Standards; and
give a true and fair view of the financial position as at 30 June 2010 and of the performance for the year ended on that date of
the company and consolidated group; and
c.
complies with International Financial Reporting Standards as disclosed in Note 1.
2.
the Chief Executive Officer and Chief Finance Officer have each declared that:-
a.
b.
c.
the financial records of the company for the financial year have been properly maintained in accordance with s 286 of the
Corporations Act 2001;
the financial statements and notes for the financial year comply with the Accounting Standards; and
the financial statements and notes for the financial year give a true and fair view;
3.
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;
This declaration is made in accordance with a resolution of the Board of Directors.
On behalf of the Directors
Greg J Wheeler
Executive Chairman
Signed at Perth this 31st day of August 2010.
Helix Resources Limited Annual Report 2010
34
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2010
Note
2
3
4
6
7
5
8
9
9
10
11
12
Current Assets
Cash and Cash Equivalents
Trade and Other Receivables
Other Financial Assets
Total Current Assets
Non-Current Assets
Property, Plant & Equipment
Exploration and Evaluation
Other Financial Assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and Other Payables
Short Term Provisions
Total Current Liabilities
Non- Current Liabilities
Other Long Term Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Share Capital
Reserves
Accumulated Losses
Total Equity
CONSOLIDATED
2010
$
2009
$
3,577,835
4,360,573
137,946
138,372
57,860
23,670
3,773,641
4,522,615
99,856
110,718
6,149,147
13,815,868
426,000
100,000
6,675,003
14,026,586
10,448,644
18,549,201
135,035
122,541
257,576
24,469
24,469
125,778
78,668
204,446
24,876
24,876
282,045
229,322
10,166,599
18,319,879
54,371,954
55,815,856
237,600
61,600
(44,442,955)
(37,557,577)
10,166,599
18,319,879
Notes to the financial statements are included on pages 39 to 61
Helix Resources Limited Annual Report 2010
35
STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2010
Revenue from Continuing Operations
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
Profit on Disposal of Fixed Assets
Revaluation of Shares in Listed Companies
Loss on Distribution of Capital at Fair Value
Other General and Admin expenses
Loss before income tax
Income tax expense
Loss for the year
Other Comprehensive Income
Fair value movements on available for sale
financial assets
Income tax relating to comprehensive income
Other comprehensive income, afer tax
Total Comprehensive Loss attributable to
members of Helix Resources Limited
Basic (cents per share)
Diluted (cents per share)
Note
13
14
7
19
21
21
CONSOLIDATED
2010
$
2009
$
431,802
430,781
(306,714)
(464,072)
(32,005)
(9,732)
(80,000)
(51,298)
(50,620)
(17,010)
(98,750)
(61,910)
(5,818,552)
(1,563,952)
(20,270)
112,013
(30,606)
146,065
(143,811)
(177,765)
(2,251)
(4,232)
16,816
49,440
(900,000)
(126,584)
(23,646)
(2,958)
199,229
(107,130)
-
(92,186)
(6,885,378)
(1,914,530)
-
-
(6,885,378)
(1,914,530)
176,000
-
176,000
-
-
-
(6,709,378)
(1,914,530)
(5.23)
(5.23)
(1.46)
(1.46)
Notes to the financial statements are included on pages 39 to 61
Helix Resources Limited Annual Report 2010
36
STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2010
CONSOLIDATED
2010
$
2009
$
(622,763)
(710,393)
204,460
301,028
(117,275)
421,393
196,968
(92,032)
(1,347,962)
(3,277,824)
(55,619)
32,000
(100,000)
(50,000)
(10,264)
259,285
-
3,406
(1,521,581)
(3,025,397)
858,277
(2,159)
856,118
27
(2,010)
(1,983)
(782,738)
(3,119,412)
4,360,573
7,479,985
3,577,835
4,360,573
Note
Cash Flow From Operating Activities
Payments to suppliers and employees
Interest received
Other receipts
Net cash used in operating activities
2(b)
Cash Flow From Investing Activities
Payments for capitalised exploration &
evaluation expenditure
Payment for property, plant & equipment
Proceeds from sale of property, plant &
equipment
Payment for investments
(Payments) / Proceeds from security deposits
Net cash used in investing activities
Cash Flow From Financing Activities
Proceeds from issue of shares and options
Share issue costs paid
Net cash provided by / (used in) financing
activities
Net decrease in cash and cash equivalents
held
Cash and cash equivalents at beginning
of financial year
Cash and cash equivalents at End
of Financial Year
2(a)
Notes to the financial statements are included on pages 39 to 61
Helix Resources Limited Annual Report 2010
37
CONSOLIDATED
2010
Total equity at the beginning of the financial
year
Shares issued during the financial year
Options issued during the financial year
Share Issue Costs
Exercise of options during the financial year
STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2010
Share Capital
Ordinary
Other Reserves
$
$
Accumulated
Losses
$
Total
$
55,815,856
61,600
(37,557,577)
18,319,879
48,290
800,330
(2,160)
9,658
-
-
-
-
-
-
-
-
-
-
48,290
800,330
(2,160)
9,658
(2,300,020)
Capital Distribution via Distribution in-specie
(2,300,020)
Total Comprehensive Income for the year
Total equity at the end of the financial year
-
54,371,954
176,000
237,600
(6,885,378)
(6,709,378)
(44,442,955)
10,166,599
CONSOLIDATED
2009
Total equity at the beginning of the financial
year
Shares issued during the financial year
Options issued during the financial year
Share Issue Costs
Issue of Employee Incentive Options
Expiry of Employee Incentive Options during
the financial year
Loss attributable to members of the parent
entity
Total equity at the end of the financial year
Share Capital
Ordinary
Other Reserves
$
$
Accumulated
Losses
$
Total
$
55,824,908
287,187
(35,930,234)
20,181,861
27
-
(9,079)
-
-
-
-
-
-
61,600
-
-
-
-
(287,187)
287,187
27
-
(9,079)
61,600
-
-
(1,914,530)
(1,914,530)
55,815,856
61,600
(37,557,577)
18,319,879
Notes to the financial statements are included on pages 39 to 61
Helix Resources Limited Annual Report 2010
38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2010
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 financial statements for
Helix Resources Limited as 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 incorporate the assets, liabilities and results of entities controlled by Helix Resources Limited at
the end of the reporting period. A controlled entity is any entity over which Helix Resources Limited has the power to govern the
financial and operating policies so as to obtain benefits from the entity’s activities. Control will generally exist when the parent owns,
directly or indirectly through subsidiaries, more than half of the voting power of an entity. In assessing the power to govern, the
existence and effect of holdings of actual and potential voting rights are also considered.
Where controlled entities have entered or left the Group during the year, the financial performance of those entities are included only for
the period of the year that they were controlled. A list of controlled entities is contained in Note 4 to the financial statements.
In preparing the consolidated financial statements, all inter-group balances and transactions between entities in the consolidated group
have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency
with those adopted by the parent entity.
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 Statement of Cash Flows,
cash includes cash on hand and in banks, and money market investments readily convertible to cash within 90 days, net of outstanding
bank overdrafts.
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 2010
39
d) Plant and Equipment
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount
from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the
asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in
determining recoverable amounts.
The depreciation rates used for each class of depreciable assets are:
Plant and equipment
Motor Vehicles
Straight line 10% - 33%
Diminishing Value 20% - 40%
Diminishing Value 22.5%
e) Exploration and evaluation
Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest. These
costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or
where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically
recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the
area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according
to the rate of depletion of the economically recoverable reserves.
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) 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 Statement of Financial Position.
(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 statement of comprehensive income 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.
Helix Resources Limited Annual Report 2010
40
When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments are included in the
statement of comprehensive income 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 statement of
comprehensive income. Impairment losses recognised in the statement of comprehensive income on equity instruments are not
reversed through the statement of comprehensive income.
h) 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.
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.
Interest in Joint Venture Operations
i)
Interest in joint venture operations, where material, are brought to account by including in the respective classifications, the Group's
share of the individual assets employed and liabilities and expenses incurred.
Details of interests in joint ventures are shown at Note 22.
Revenue Recognition
j)
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.
Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the rate inherent in the
instrument and is net of GST.
k) Accounts Payable
Trade payables and other accounts payable are recognised when the Group becomes obliged to make future payments resulting from
the purchase of goods and services.
Receivables
l)
Other receivables are recorded at amounts due less any specific provision for doubtful debts.
m) 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
Helix Resources Limited Annual Report 2010
41
acquisition of an asset or as part of an item of expense; or
for receivables and payables which are recognised inclusive of GST.
•
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.
Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising from investing and
financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.
n) Business Combinations
Business combinations occur where an acquirer obtains control over one or more businesses and results in the consolidation of its
assets and liabilities.
A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses
under common control. The acquisition method requires that for each business combination one of the combining entities must be
identified as the acquirer (ie parent entity). The business combination will be accounted for as at the acquisition date, which is the date
that control over the acquiree is obtained by the parent entity. At this date, the parent shall recognise, in the consolidated accounts, and
subject to certain limited exceptions, the fair value of the identifiable assets acquired and liabilities assumed. In addition, contingent
liabilities of the acquiree will be recognised where a present obligation has been incurred and its fair value can be reliably measured.
The acquisition date fair value of the consideration transferred for a business combination plus the acquisition date fair value of any
previously held equity interest shall form the cost of the investment in the separate financial statements. Consideration may comprise
the sum of the assets transferred by the acquirer, liabilities incurred by the acquirer to the former owners of the acquiree and the equity
interests issued by the acquirer.
Fair value uplifts in the value of pre-existing equity holdings are taken to the statement of comprehensive income. Where changes in
the value of such equity holdings had previously been recognised in other comprehensive income, such amounts are recycled to profit
or loss.
All transaction costs incurred in relation to the business combination are expensed to the statement of comprehensive income.
Impairment of Non-financial Assets
o)
Non-financial assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that
are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units).
Fair Value Estimation
p)
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.
q) 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 statement of comprehensive income 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 any one item included in the same class of obligations may be small.
Helix Resources Limited Annual Report 2010
42
r) Critical Accounting Estimates and Other Accounting Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances. The Group is of the view that there are no critical accounting
estimates and judgements in this financial report, other than accounting estimates and judgements in relation to the carrying value of
mineral exploration expenditure.
Exploration and Evaluation Expenditure
The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable or
where the activities have not reached a stage which permits a reasonable assessment of the existence of resources or
reserves. While there are certain areas of interest from which no reserves have been extracted, the directors are of the
continued belief that such expenditure should not be written off since feasibility studies in such areas have not yet
concluded. Such capitalised expenditure is carried at the end of the reporting period at $6.149m.
s) Adoption of New and Revised Accounting Standards
During the current year the Group adopted all of the new and revised Australian Accounting Standards and Interpretations
applicable to its operations which became mandatory.
The adoption of these standards has impacted the recognition, measurement and disclosure of certain transactions. The
following is an explanation of the impact the adoption of these standards and interpretations has had on the financial
statements of Helix Resources Limited.
AASB 8: Operating Segments
In February 2007 the Australian Accounting Standards Board issued AASB 8 which replaced AASB 114: Segment
Reporting. As a result, some of the required operating segment disclosures have changed with the addition of a possible
impact on the impairment testing of goodwill allocated to the cash generating units (CGUs) of the entity. Below is an
overview of the key changes and the impact on the Group’s financial statements.
Measurement impact
Identification and measurement of segments — AASB 8 requires the ‘management approach’ to the identification
measurement and disclosure of operating segments. The ‘management approach’ requires that operating segments be
identified on the basis of internal reports that are regularly reviewed by the entity’s chief operating decision maker, for the
purpose of allocating resources and assessing performance. This could also include the identification of operating
segments which sell primarily or exclusively to other internal operating segments. Under AASB 114, segments were
identified by business and geographical areas, and only segments deriving revenue from external sources were
considered.
The adoption of the ‘management approach’ to segment reporting has resulted in the identification of reportable
segments largely consistent with the prior year.
Under AASB 8, operating segments are determined based on management reports using the ‘management approach’,
whereas under AASB 114 financial results of such segments were recognised and measured in accordance with
Australian Accounting Standards. This has resulted in changes to the presentation of segment results, with inter-
segment sales and expenses such as depreciation and impairment now being reported for each segment rather than in
aggregate for total group operations, as this is how they are reviewed by the chief operating decision maker.
Disclosure impact
AASB 8 requires a number of additional quantitative and qualitative disclosures, not previously required under AASB 114,
where such information is utilised by the chief operating decision maker. This information is now disclosed as part of the
financial statements.
AASB 101: Presentation of Financial Statements
In September 2007 the Australian Accounting Standards Board revised AASB 101 and as a result, there have been
changes to the presentation and disclosure of certain information within the financial statements. Below is an overview of
the key changes and the impact on the Group’s financial statements.
Disclosure impact
Terminology changes — the revised version of AASB 101 contains a number of terminology changes, including the
amendment of the names of the primary financial statements.
Reporting changes in equity — the revised AASB 101 requires all changes in equity arising from transactions with
owners, in their capacity as owners, to be presented separately from non-owner changes in equity. Owner changes in
equity are to be presented in the statement of changes in equity, with non-owner changes in equity presented in the
statement of comprehensive income. The previous version of AASB 101 required that owner changes in equity and other
comprehensive income be presented in the statement of changes in equity.
Helix Resources Limited Annual Report 2010
43
Statement of comprehensive income — the revised AASB 101 requires all income and expenses to be presented in
either one statement, the statement of comprehensive income, or two statements, a separate income statement and a
statement of comprehensive income. The previous version of AASB 101 required only the presentation of a single
income statement.
The Group’s financial statements now contain a statement of comprehensive income.
Other comprehensive income — The revised version of AASB 101 introduces the concept of ‘other comprehensive
income’ which comprises of income and expenses that are not recognised in profit or loss as required by other Australian
Accounting Standards. Items of other comprehensive income are to be disclosed in the statement of comprehensive
income. Entities are required to disclose the income tax relating to each component of other comprehensive income. The
previous version of AASB 101 did not contain an equivalent concept.
t) New standards and interpretations which may impact the Company not yet adopted
Whilst amendments to the Accounting Standards and Australian Accounting Interpretations have been considered, the Group does not
anticipate early adoption of any of the reporting requirements and does not expect these requirements to have any material effect on the
Group’s financial statements.
Helix Resources Limited Annual Report 2010
44
2. NOTES TO THE CASH FLOW STATEMENT
a) Reconciliation of Cash
For the purposes of the statement of cash flows and statement of financial position, 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
statement of cash flows is reconciled to the related items in the statement of financial position as follows:
Cash at Bank
Cash on deposit
Total Cash
b) Reconciliation of loss after income tax to cash flows used in operations
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
(Gain) /Loss on revaluation of investments
(Gain)/Loss on disposal of property, plant and
equipment
Loss on capital distribution
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
Prepayments - Insurances
Prepayments – Tenement application and rents
Other
Total Current Receivables
Helix Resources Limited Annual Report 2010
CONSOLIDATED
2010
$
2009
$
21,960
3,555,875
50,502
4,310,071
3,577,835
4,360,573
CONSOLIDATED
2010
$
(6,885,378)
2009
$
(1,914,530)
51,298
61,910
5,818,552
1,563,952
-
(5,272)
(49,440)
(16,816)
900,000
61,600
-
107,130
(173,697)
-
20,950
233,767
5,365
43,466
(117,275)
(60,174)
28,010
(92,032)
CONSOLIDATED
2010
$
2009
$
26,145
-
111,801
137,946
27,817
7,685
102,870
138,372
45
4. OTHER 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
2010
$
2009
$
57,860
57,860
23,670
23,670
Country of Incorporation
Percentage Held
Percentage Held
Hillview Mining NL (i)
Helix Mining Investment Pty Ltd (i)
Oxley Exploration Pty Ltd
Leichhardt Resources (QLD) Pty Ltd
Helix Resources (Overseas) Pty Ltd
Australia
Australia
Australia
Australia
Australia
(i) These companies were deregistered during the financial year.
5. OTHER FINANCIAL ASSETS
Non-Current
Security Deposits
Available for Sale Financial Assets:
Shares in Listed Companies
Total Other Assets – Non-Current
2010
-
-
100%
100%
100%
2009
100%
100%
100%
100%
-
CONSOLIDATED
2010
$
2009
$
150,000
100,000
276,000
426,000
-
100,000
Helix Resources Limited Annual Report 2010
46
6. PROPERTY, PLANT AND EQUIPMENT
2010
Gross Carrying Amount
Balance at 30 June 2009
Additions
Disposals
Balance at 30 June 2010
Accumulated Depreciation
Balance at 30 June 2009
Disposals
Depreciation
Balance at 30 June 2010
Net Book Value
30 June 2009
30 June 2010
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
CONSOLIDATED
Plant & Equipment
$
Motor Vehicles
$
165,411
3,387
-
168,798
129,440
-
20,189
149,629
35,971
19,169
171,520
52,232
(59,031)
164,721
96,773
(43,847)
31,108
84,034
74,747
80,687
CONSOLIDATED
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
Total
$
336,931
55,619
(59,031)
333,519
226,213
(43,847)
51,297
233,663
110,718
99,856
Total
$
489,158
10,264
(162,491)
336,931
290,542
(126,239)
61,910
226,213
198,616
110,718
Helix Resources Limited Annual Report 2010
47
7. EXPLORATION AND EVALUATION EXPENDITURE (NON-CURRENT)
Balance at beginning of the financial year
Expenditure incurred during the year
Sale of Glenburgh Tenements
Impairment losses
Balance at the end of the financial year
CONSOLIDATED
2010
$
13,815,868
1,351,831
(3,200,000)
(5,818,552)
6,149,147
2009
$
12,158,401
3,221,419
-
(1,563,952)
13,815,868
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
131,943,746 Fully Paid Ordinary Shares (2009:
131,299,886)
53,355,308 Listed Options (2009: Nil)
Balance at end of financial year
CONSOLIDATED
2010
$
2009
$
135,035
125,778
122,541
122,541
24,469
24,469
78,668
78,668
24,876
24,876
53,571,624
55,815,856
800,330
-
54,371,954
55,815,856
Fully Paid Ordinary Shares
Balance at beginning of financial year
Captial Distribution via Distribution In - specie
Share Issue Costs
Exercise of Options to Fully Paid Shares @ $0.075
Exercise of Options to Fully Paid Shares @ $0.30
Balance at end of financial year
2010
2009
No.
$
No.
$
131,299,886
-
-
643,860
-
55,815,856
(2,300,020)
(2,159)
57,947
-
131,299,798
55,824,908
-
-
-
88
-
(9,079)
-
27
131,943,746
53,571,624
131,299,886
55,815,856
Helix Resources Limited Annual Report 2010
48
Listed Options
2010
2009
No.
$
No.
$
-
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
53,999,168
53,355,308
(643,860)
800,330
809,988
(9,658)
(88)
-
-
-
-
-
-
-
-
-
-
* Non-renounceable rights issue at $0.015 per option, exercisable at $0.05 before 31 May 2011
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.
There were 17,600,000 employee options outstanding at 30 June 2010.
Distribution in-specie of Gascoyne Resources Ltd shares
A shareholders meeting pursuant to the Notice of Meeting and Prospectus dated 6th January 2010 was called for 8th February 2010 to consider
the proposal to distribute ‘in-specie’ on a pro-rata basis 16,000,100 Gascoyne Resources Ltd shares received for promoting and vending the
Glenburgh gold assets into the successful $5.2 million IPO and ASX listing of Gascoyne Resources.
The proposed resolution was subsequently approved by shareholders and the Net Assets of the Company were reduced by approximately $3.2
million of which $900,000 was disclosed as a loss on distribution of capital at fair value.
Helix Resources Limited Annual Report 2010
49
11. OTHER RESERVES
Options Reserve
Balance at beginning of financial year
Issue of Employee Incentive Options
Exercise of Employees Incentive Options
Expiry of Terminated Employee Incentive Options
Balance at end of financial year
The Options Reserve records items recognised as expenses on valuation of employee incentive options.
Financial Assets Reserve
Balance at beginning of financial year
Fair Value of Gascoyne Resources shares
Balance at end of financial year
The financial asset reserve records revaluation of financial assets.
12. ACCUMULATED LOSSES
Balance at beginning of financial year
Net Loss attributable to members of the parent entity
Expiry of Employee Incentive Options
Balance at end of financial year
REVENUE
13.
Loss before Income Tax includes the following items of revenue and expense:
Operating Activities
Interest Revenue
Tenement Rental Reimbursements
PACE Funding
Other
Total Operating Revenue
Non-Operating Activities
Profit on sale of investments
Total Non – Operating Revenue
Total Revenues
Helix Resources Limited Annual Report 2010
CONSOLIDATED
2010
$
2009
$
61,600
-
-
-
61,600
287,187
61,600
-
(287,187)
61,600
CONSOLIDATED
2010
$
2009
$
-
176,000
176,000
-
-
-
(37,557,577)
(6,885,378)
-
(44,442,955)
(35,930,234)
(1,914,530)
287,187
(37,557,577)
CONSOLIDATED
2010
$
2009
$
174,398
65,818
-
186,314
426,530
5,272
5,272
431,802
328,964
-
100,000
1,817
430,781
-
-
430,781
50
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
Loss for the year
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
CONSOLIDATED
2010
$
51,298
5,818,552
132,914
2009
$
61,910
1,563,952
152,987
6,885,378
1,914,530
99,756
104,744
22,321
226,821
94,828
99,569
130,999
325,396
The lease is for a 4 year term with a 2 year option to extend. As at balance date there was a balance of 2 years and 3 months remaining on the
office lease.
b) Exploration Expenditure Commitments
In order to maintain current rights of tenure to exploration tenements, the 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 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 $83,305 (2009:$104,000) and exploration expenditure of $1,250,000 (2009: $1,520,000). JV parties earning their interest
in various tenements may effectively meet a portion of these commitment costs.
16. KEY MANAGEMENT PERSONNELS’ REMUNERATION
Please refer to disclosures contained in the Remuneration Report section of the Directors’ Report.
The totals of remuneration paid to key management personnel of the Group during the year are as follows:
Short term employee benefits
Post-employment benefits
Other long-term benefits
Termination benefits
Share Based payments
Total
2010
$
561,694
43,352
-
-
-
605,046
2009
$
644,847
48,771
-
-
54,250
747,868
17. EXECUTIVE SHARE OPTION PLAN
As at 30 June 2010 the Company had issued 15,500,000 share options (30 June 2009 15,500,000). Share options carry no rights to dividends
and no voting rights. The difference between the total market value of options issued during the financial year, at the date of issue, and the total
amount received from executives and employees is not recognised in the financial statements except for the purposes of determining key
management personnels’ remuneration in respect of that financial year. The amounts are disclosed in remuneration in respect of the financial
year in which the entitlement was earned.
Further details are disclosed below:
Helix Resources Limited Annual Report 2010
51
exercise price
No. Weighted average
$0.46
-
$0.46
$0.55
-
$0.55
grant date
$ Fair value at
0.35c per
option
$0.55
2009
2010
15,500,000
Expired during the financial year (iii)
exercise price
No. Weighted average
Executive Share Option Plan
Balance at beginning of financial year (i)
Cancelled during the financial year (ii)
Granted during the financial year (iv)
Exercised during the financial year (v)
Balance at end of financial year (vi)
Options - Series No. Vested Unvested Grant Date Expiry Date Exercise
(i) Balance at beginning of financial year
(4,510,000)
15,500,000
15,500,000
15,500,000
4,510,000
Price
$0.525
$0.525
-
-
-
-
-
-
-
-
-
-
Issued 9 Oct 2008
15,500,000
15,500,000
15,500,000
15,500,000
-
-
9 Oct 2008
31 Oct 2011
(ii) Cancelled during the financial year
There were no options cancelled during the financial years ended 30 June 2010 and 2009.
(iii) Expired during the financial year
Expired during the year ended 30 June 2009
Options Series No. Vested Unvested Grant Date Expiry Date Exercise
Price
grant date
$ Fair value at
Not valued
$0.42
$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
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
$0.26
5c per option
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
4,300,000
4,300,000
4,510,000
4,510,000
-
-
-
-
-
-
-
-
No options expired during the financial year ended 30 June 2010.
Granted during the year ended 30 June 2009
(iv) Granted during the financial year
Options - Series No.
Issued 9 Oct 2008
15,500,000 9/10/08
15,500,000
Grant Date Expiry Date Exercise Price
$ Fair Value Received
$
-
$0.525
31/10/11
-
There were no options granted during the financial year ended 30 June 2010.
(v) Exercised during the financial year
Helix Resources Limited Annual Report 2010
52
There were no executive options exercised during the financial years ended 30 June 2010 and 2009.
(vi) Balance at end of the financial year
Options Series
Issued 9 Oct 2008 15,500,000
No.
15,500,000
Vested
Unvested
Grant Date
Expiry Date
Exercise
Price
$
Fair value at
grant date
15,500,000
15,500,000
-
-
9/10/08
31/10/11
$0.525
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 (2009: $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 $60,000 (2009 $nil) payable within 30 days from date of invoice
(net of GST). Mr Greg Wheeler, a Director, has significant influence in Greg Wheeler Consulting Pty Ltd. There were no balances outstanding
at 30 June 2010 to Mr Greg Wheeler.
Den Dryver Mining Consultants Pty Ltd provided professional services to the value of $nil (2009 $1,430) 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 2010 to Mr John den Dryver.
b) Transactions with Gascoyne Resources Limited
Helix Resources provided equipment rental, accommodation and employee services to Gascoyne Resources on normal commercial terms and
conditions to the value of $168,785. There was an outstanding balance of $6,103 at 30 June 2010.
c) Key Management Personnels’ Equity Holdings
Fully paid ordinary shares issued by Helix Resources Limited
2010
Granted as
remuneration
Balance @
1/7/09
No.
No.
Received on
exercise of
options
No.
Net other
change
No.
Balance @
30/6/10
Balance held
nominally
No.
No.
Key Management
Personnel
G J Wheeler
M H Wilson
J den Dryver
G Dunbar
J McNamara
Total
7,248,839
233,133
-
300,000
94,833
7,876,805
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,248,839
233,133
-
300,000
94,833
7,876,805
Helix Resources Limited Annual Report 2010
-
-
-
-
-
-
53
-
-
-
-
-
-
Options
vested
during
year
No.
2009
Key Management
Personnel
G J Wheeler
M H Wilson
J den Dryver
G Dunbar
J McNamara
Total
Balance @
1/7/08
Granted as
remuneration
No.
No.
Received on
exercise of
options
No.
Net other
change
Balance @
30/6/09
Balance held
nominally
No.
No.
No.
3,958,702
93,133
-
300,000
94,833
4,446,668
-
-
-
-
-
-
-
-
-
-
-
-
3,290,137
7,248,839
140,000
233,133
-
-
-
-
300,000
94,833
3,430,137
7,876,805
Executive Share Options issued by Helix Resources Limited
2010
Exercised
Bal @
1/7/09
Granted as
remuneration
Other
change
Bal @
30/6/10
Bal vested
@ 30/6/10
Vested but
not
exerciseable
Vested and
exercisable
No.
No.
No.
No.
No.
No.
No.
No.
Key
Management
Personnel
G J Wheeler
M H Wilson
J denDryver
G Dunbar
J McNamara
Total
8,000,000
5,000,000
1,000,000
1,000,000
500,000
15,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,000,000
8,000,000
5,000,000
5,000,000
1,000,000
1,000,000
1,000,000
1,000,000
500,000
500,000
15,500,000
15,500,000
-
-
-
-
-
-
8,000,000
5,000,000
1,000,000
1,000,000
500,000
15,500,000
-
-
-
-
-
-
2009
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
J McNamara
Total
2,000,000
1,535,000
400,000
400,000
175,000
4,510,000
8,000,000
5,000,000
1,000,000
1,000,000
500,000
15,500,000
-
-
-
-
-
-
(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
(175,000)
500,000
500,000
(4,510,000)
15,500,000
15,500,000
-
-
-
-
-
-
8,000,000
5,000,000
1,000,000
1,000,000
500,000
15,500,000
-
-
-
-
-
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.
Helix Resources Limited Annual Report 2010
54
Listed Share Options issued by Helix Resources Limited
Exercised
2010
Bal @
1/7/09
Granted as
remuneration
Other
change
Bal @
30/6/10
Bal vested
@ 30/6/10
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
J McNamara
Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,624,420
9,624,420
9,624,420
2,116,567
2,116,567
2,116,567
600,000
600,000
600,000
750,000
750,000
750,000
47,417
47,417
47,417
13,138,404
13,138,404
13,138,404
-
-
-
-
-
-
9,624,420
2,116,567
600,000
750,000
47,417
13,138,404
-
-
-
-
-
-
2009
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
J McNamara
Total
494,838
3,517
-
25,000
-
523,355
-
-
-
-
-
-
-
-
-
-
-
(494,838)
(3,517)
-
(25,000)
-
(523,355)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Helix Resources Limited Annual Report 2010
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 investments
- loss on capital distribution
- employee incentive options
- capital raising costs put to equity
-utilisation of prior year tax losses
Benefit of tax losses not brought to account
Income tax expense
Statement of Comprehensive Income
Current income tax charge
Deferred income tax
Relating to origination and reversal of temporary differences
Current year tax losses not recognised in the current period
Income tax expense reported in statement of comprehensive
income
Unrecognised Deferred Tax Balances:
Unrecognised deferred tax asset losses
Unrecognised deferred tax assets other
Unrecognised deferred tax liabilities
Net Unrecognised deferred tax assets
CONSOLIDATED
2010
$
2009
$
(6,885,378)
(1,914,530)
-
-
(6,885,378)
(1,914,530)
(2,065,613)
(574,359)
697
(14,832)
1,575
270,000
-
(31,380)
(481,723)
2,321,276
-
-
(2,321,276)
2,321,276
-
1,165
32,139
-
-
18,480
-
(70,434)
593,009
-
(1,028,160)
435,151
593,009
-
13,254,063
14,262,597
56,036
(1,847,484)
11,462,615
46,100
(4,158,824)
10,149,873
Helix Resources Limited Annual Report 2010
56
20. SEGMENT INFORMATION
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief
operating decision makers) in assessing performance and determining the allocation of resources.
The Group is managed on the basis it is a mineral exploration company operating in the geographical region of Australia. The mineral assets
held via outright ownership or joint venture are considered one business segment and the minerals currently being targeted include gold,
copper, iron ore and other base metals in Western Australia, New South Wales and South Australia.
21. EARNINGS PER SHARE
Basic loss per share
Diluted loss per share
COMPANY
2010
Cents Per share
(5.23)
(5.23)
2009
Cents Per share
(1.46)
(1.46)
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)
2010
$
(6,885,378)
2010
No.
131,653,710
2009
$
(1,914,530)
2009
No.
131,299,886
(a) Earnings used in the calculation of basic earnings per share is net loss after tax of $6,885,378 (2008: $1,914,530).
(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)
2010
$
(6,885,378)
2009
$
(1,914,530)
12 months to 30 June 2010
12 months to 30 June 2009
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 $6,885,378 (2009: $1,914,530).
(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
131,653,710
Executive options
Listed options
2010
No.
15,000,000
53,355,308
2009
No.
15,000,000
14,028,013
Helix Resources Limited Annual Report 2010
57
INTEREST IN JOINT VENTURES
22.
The parent entity has entered into the following unincorporated joint ventures:
Joint Venture Project
Tunkillia
Yalleen
Canbelego
Percentage Interest
46.2% (2009: 48.32%) (Minotaur Exploration)
30% (2009: 30%) (API Management Pty Ltd 70% Iron Ore rights)
51% (2009: 0%) (Straits Resources)
Principal Exploration Activities
Gold
Iron Ore
Copper / Gold
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 as follows:
Non-Current Assets
Mineral Assets
Impairment
Carrying Amount
Yalleen JV
30%
1,789,834
-
1,789,834
Tunkillia JV
47%
4,803,920
(1,782,686)
3,021,234
Canbelego JV
51%
306,233
-
306,233
The recoverability of the carrying amount of the mineral assets is dependent on successful development and commercial exploitation, or
alternatively, sale of the respective areas of interest.
23. FINANCIAL INSTRUMENTS
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis
on which revenues and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are
disclosed in Note 1 to the financial statements.
The Group's exposure to interest rate risk and effective weighted average interest rate for classes of financial assets is set out below:
Floating Interest Rate Maturity
Average
Interest
Rate
%
Fixed
Interest Rate
Less than 1
year
More than 1
Year
Non Interest
Bearing
$
$
$
$
Total
$
-
-
-
-
5.0%
1,077,835
2,500,000
3.75%
-
-
150,000
-
1,077,835
2,650,000
-
-
-
-
-
-
-
-
-
-
-
-
137,946
57,860
-
-
276,000
471,806
135,035
135,035
137,946
57,860
3,577,835
150,000
276,000
4,199,641
135,035
135,035
2010
Financial Assets
Other Receivables (incl tenement appl.)
Held for trading assets
Cash and cash equivalent assets
Security deposits and deposits at financial
institutions
Available for sale assets
Financial Liabilities
Trade Payables (all payable within 30
days)
Helix Resources Limited Annual Report 2010
58
Floating Interest Rate Maturity
Average
Interest
Rate
%
Fixed
Interest Rate
Less than 1
year
More than 1
Year
Non Interest
Bearing
$
$
$
$
Total
$
2009
Financial Assets
Other Receivables (incl tenement appl.)
Held for trading assets
Cash and cash equivalent assets
Security deposits and deposits at financial
institutions
-
6.1%
6.5%
Financial Liabilities
Trade Payables (all payable within 30
days)
-
-
-
-
1,297,943
3,062,630
-
100,000
1,297,943
3,162,630
-
-
-
-
-
-
-
-
-
-
-
138,372
23,670
-
-
138,372
23,670
4,360,573
100,000
162,042
4,622,615
125,778
125,778
125,778
125,778
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.
Financial Instruments Measured at Fair Value
The financial instruments recognised at fair value in the statement of financial position have been analysed and classified using a fair value
hierarchy reflecting the significance of the inputs used in making the measurements. The fair value hierarchy consists of the following levels:
—
—
quoted prices in active markets for identical assets or liabilities (Level 1);
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly
(derived from prices) (Level 2); and
— inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
2010
Financial Assets
Held for trading assets
Available for sale assets
2009
Financial Assets
Held for trading assets
Available for sale assets
Level 1
57,860
276,000
333,860
Level 1
23,670
-
23,670
Total
$
57,860
276,000
333,860
Total
$
23,670
-
23,670
Included within Level 1 of the hierarchy are listed investments. The fair values of these financial assets have been based on the closing quoted
bid prices at reporting date, excluding transaction costs.
Helix Resources Limited Annual Report 2010
59
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. The Board is responsible for
the financial risk management.
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 2010, 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 $79,000 (2009: $87,000) and an increase in equity by $79,000 (2009: $87,000). 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 $79,000 (2009: $87,000) and a decrease in
equity by $79,000 (2009: $87,000).
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.
24. EMPLOYEE ENTITLEMENTS
The aggregate employee entitlement liability recognised and included in the financial statements is as follows:
Provision for employee entitlements:
Current (Note 9)
Non-Current (Note 9)
Number of employees at end of financial year
25. CONTINGENT LIABILITIES
CONSOLIDATED
2010
$
2009
$
122,541
24,469
147,010
No
6
78,668
24,876
103,544
No
6
The Company may be required to issue bank guarantees to secure tenement holdings. The Company currently has bank guarantees to the
value of $77,085 (2009: $71,085).
26. REMUNERATION OF AUDITORS
a) Auditor of the Parent Entity
Auditing the financial report
The auditor of Helix Resources Limited for the 2010 financial year is Grant Thornton Audit Pty Ltd.
2010
$
2009
$
21,555
21,555
23,575
23,575
Helix Resources Limited Annual Report 2010
60
27. HELIX RESOURCES LIMITED PARENT COMPANY INFORMATION
Note
8, 9
9
Assets
Current Assets
Non-current Assets
Total Assets
Liabilities
Current Liabilities
Non-current Liabilities
Total Liabilities
Equity
Issued Capital
Accumulated Losses
Reserves
Options Reserve
Financial Assets
Total Equity
Financial Performance
Loss for the year
15
Other comprehensive income
Total Comprehensive Income
2010
$
2009
$
3,773,641
6,675,003
4,522,615
14,026,586
10,448,644
18,549,201
257,576
24,469
282,045
204,446
24,876
229,322
54,371,954
55,815,856
(44,442,955)
(37,557,577)
61,600
176,000
61,600
-
10,166,599
18,319,879
(6,885,378)
(1,914,530)
176,000
-
(6,709,378)
(1,914,530)
28. SUBSEQUENT EVENTS
There has not been any matter or circumstance, other than referred to in the financial statements or notes thereto, that has arisen since the end
of the financial year, that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the
state of affairs on the Group in future financial years.
29. 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 2010 was authorised for issue in accordance with a resolution of the
directors on the 31st August 2010.
Helix Resources Limited Annual Report 2010
61
Spread of Holdings
1–1000
1,001–5,000
5,001–10,000
10,001–100,000
100,001 and over
Total
Number of shareholders holding less than a marketable parcel
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 Blamnco Trading Pty Ltd
9
Technica Pty Ltd
10 ANZ Nominees Ltd
11 Warramboo Holdings Pty Ltd
12 Zero Nominees Pty Ltd
13 Niddrie Holdings Pty Ltd
14 Nefco Nominees Pty Ltd
15 Mr Abdelaziz Soliman
16 Mr Nicholas Murray Gleeson
17 Berne No 132 Nominees Pty Ltd
18 Paso Holdings Pty Ltd
19 Loxden Pty Ltd
20 Mr Chen De Zhong
Top 20 Total
AS AT 24th AUGUST 2010
NUMBER OF SHARES HELD
Number of Shares
Number of Shareholders
26,563
584,893
3,072,060
27,901,438
100,358,784
131,943,738
64
187
355
769
141
1,516
339
Number of Shares
% of Issued Capital
13,063,829
13,063,829
11,172,514
7,248,839
6,016,760
4,681,293
3,000,000
2,000,000
1,856,666
1,813,584
1,750,000
1,456,802
1,429,115
1,155,141
950,000
890,739
878,465
815,482
800,000
780,000
9.9
9.9
8.47
5.49
4.56
3.55
2.27
1.52
1.41
1.37
1.33
1.10
1.08
0.87
0.72
0.67
0.67
0.62
0.61
0.59
74,823,058
56.71
VOTING RIGHTS
One vote for each ordinary share held in accordance with the Company's Constitution.
Helix Resources Limited Annual Report 2010
62
SUBSTANTIAL SHAREHOLDERS
Shareholder
Rubicon Nominees Pty Ltd
UBS Wealth Management
Yandal Investments Pty Ltd
Aquila Resources Limited
Gee Vee Pty Ltd
Number of Shares
% of Issued Capital
13,063,829
13,063,829
11,172,514
7,681,293
7,248,839
9.9
9.9
8.47
5.82
5.49
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 2010
63
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
Lawrence Crow Consulting Pty Ltd
7 Mrs Li Ming Yu
8 Aotea Minerals Ltd
9 Croftbank Pty Ltd
10 Technica Pty Ltd
11 Goldbondsuper Pty Ltd
12 Dunbar Super Fund
13 ANZ Nominees Pty Ltd
14 Niddrie Holdings Pty Ltd
15 DenDryver Super Fund
16 Ms Shandy Sui Han Wong
17 Florin Mining Investment Company Ltd
18 Tromso Pty Ltd
19 Octifil Pty Ltd
20
Loxden Pty Ltd
Top 20 Total
Number of Optionholders
Number of Options
29
101
57
182
62
431
14,694
302,436
467,001
7,310,926
45,260,259
53,355,316
Number of Options
% of Issued Capital
10,000,000
9,624,420
2,200,000
2,110,000
2,000,000
1,100,000
1,070,000
1,000,000
953,750
928,333
800,000
750,000
651,250
614,558
600,000
564,000
500,000
500,000
500,000
500,000
18,74
18.04
4.12
3.95
3.75
2.06
2.00
1.87
1.79
1.74
1.50
1.41
1.22
1.15
1.12
1.06
0.94
0.94
0.94
0.94
36,966,311
69.28
Helix Resources Limited Annual Report 2010
64
TENEMENT SCHEDULE
Tenement
Name
Mineral
Ownership
NSW COPPER & GOLD PROJECTS (INCL. CANBELEGO AND RESTDOWN JV's)
EL3971
EL6105
EL6140
Inverness
Copper/Gold
HLX 100%
Canbelego
Copper/Gold
Straits 49%, HLX 51% (earning 70%)
Restdown
Gold/Copper
Glencore 100%, Helix earning 70%
EL6501
South Restdown
Copper/Gold
Glencore 100%, Helix earning 70%
Muriel Tank
Gold/Copper
Glencore 100%, Helix earning 70%
EL6739
EL7438
EL7439
EL7482
EL7565
EL7566
EL7567
Quanda
Copper/Gold
Fiveways
Copper/Gold
Little Boppy
Copper/Gold
Arsenal
Copper/Gold
Tottenham
Copper/Gold
Restdown
Copper/Gold
QUEENSLAND COPPER & GOLD PROJECTS
EPM18363
Landsborough
Copper/Gold
EPM18373
Saxby 2
Copper/Gold
EPM18374
Saxby 1
Copper/Gold
LAKE EVERARD (INCL. TUNKILLIA)
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
HLX 100%
EL3335
Yellabinna
Gold/Uranium/Basemetals
HLX 100%, Minotaur 51% all minerals other than uranium
EL3403
Lake Everard
Gold/Uranium/Basemetals
HLX 100%, Minotaur 51% all minerals other than uranium
EL4495
Lake Everard
West
Gold/Uranium/Basemetals
HLX 100%, Minotaur 51% all minerals other than uranium
ADELAIDIAN (INCL. OLARY JV)
EL3814
Mt Elkington
Copper
HLX 100%
EL3956
EL4022
Devonborough
Downs
Gold/Copper/Iron Ore
HLX 100%, BMR earning 65% Iron ore rights
Olary
Gold/Copper/Iron Ore
HLX 100%, BMR earning 65% Iron ore rights
Helix Resources Limited Annual Report 2010
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Tenement
Name
Mineral
Ownership
WEST PILBARA
E47/1089
E47/1090
Munni Munni
South
Munni Munni
South
Nickel
Nickel
E47/1775
Munni Munni
Basemetals/Gold
E47/1776
Munni Munni
Basemetals/Gold
HLX 100%
HLX 100%
HLX 100%
HLX 100%
YALLEEN IRON ORE PROJECT
E47/1169-I
E47/1170-I
E47/1171-I
Yalleen
Yalleen
Yalleen
Iron ore/Basemetals
HLX 100%, API Management Pty Ltd 70% iron ore rights
Iron ore/Basemetals
HLX 100%, API Management Pty Ltd 70% iron ore rights
Iron ore/Basemetals
HLX 100%, API Management Pty Ltd 70% iron ore rights
Abbreviations and Definitions used in Schedule:
EL, EPM or E
Exploration Licence
ML
PL
Mining Lease
Prospecting Licence
ELA
MLA
PLA
Exploration Licence Application
Mining Lease Application
Prospecting Licence Application
Helix Resources Limited Annual Report 2010
66
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 Audit Pty Ltd
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 2010
67